European Stars and Stripes (Newspaper) - June 9, 1991, Darmstadt, Hesse Sunday june 9, 1991 the stars and stripes a Page 7by the los Angeles times \ los Angeles a a Superior court judge on Friday threw out 13 More criminal counts in a state securities fraud indictment against former Thrift owner Charles it. Keatingjr. And three others. And gave the defendants another Chance to argue for the dismissal of the remaining 21.counts. judge Lance a. Ito in los Angeles also rejected the prosecution s Basic theory of the Case a that Keating and his Asso plates were criminally accountable for the actions of employees they May not have known about. His decision forces the los Angeles county District attorneys office to re Vamp its trial strategy to show that Keating and the others wilfully caused false and misleading statements to be made about securities sold at Lincoln a Southern California branches. A a in a pleased a Keating said a a in a pleased with life. In a very pleased with my prosecutors said before the hearing that they would Likely Appeal the dismissal of any significant number of charges. But the remaining counts Are enough to subject the defendants to the maximum. Penalty of 10 years in prison. Keating was chairman of american Continental corp. In Phoenix Ari. Which owned Irvine Lincoln. He has become the leading Symbol of Thrift Industry excesses despite his outspoken criticism of a amp a regulators. The company declared bankruptcy in april 1989, and regulators seized Lincoln the next Day. Both Are being liquidated and regulators estimate that Lincoln s losses will Cost taxpayers $2.7 billion making it the biggest failure to Dale. _ Keating former american Continental president Judy j. Wischer and two former Lincoln presidents Robin s. Symes and Ray c. Fidel Are accused in 20 counts of making false and misleading statements about american Continental Bonds that were sold mostly to Lincoln customers. They were also charged in 14 counts of Selling those Bonds without state authority. \ but Ito decided there was insufficient evidence to support most of the latter counts dismissing 13 charges. He let stand one count but did not indicated Why he did so. Ito a ruling was not totally unexpected. When he threw out 14 other counts in january he questioned whether much of the remaining amount would survive defense attacks on grounds the grand jury did not have a probable or reasonable grounds to bring the charges. He also expressed doubts the prosecutions theory of the Case could survive. Under that theory prosecutors had hoped to hold the Keating group criminally accountable for the actions of employees a principle called vicarious liability. Ito said prosecutors will have to show some knowledge on the part of the Keating group. Ito set june 28 for a hearing for arguing dismissal of the remaining charges. Trial is set for aug. 2. Charles ii. Keatingjr dispute Over valedictorians ends on an inconclusive note what a in a name Booker t. Washington or. Poses with a portrait of his namesake. The student graduated last week at the top of his class at Booker t. Washington High school. Clark Atlanta University has awarded him a five year $48,350 scholarship to pursue bachelors and masters degrees in mathematics. Like his namesake the influential Black educator Washington wants to teach. By the new York times Covington a. A alter a year of racial strife the Newton county High school class of 1991 marched into history Friday night under a Federal judge s ruling to have one Black one White. The Banner hanging outside fads a Welcome to americans Best. Newton High. A National school of excellence.�?�. But after a school year that played out like the nations worsening race relations in microcosm a part a Spike Leeds a Jungle fever a about interracial dating part the a a quota debate in Congress a Many of Newton highs 331 weary graduates Felt the school had become a different sort of Symbol for graduation Day �?�1991. A. Perhaps inevitably it ended i conclusively when the Black student Johnathan Henderson declined to Shate the award contending he was due the Honor on his a own Quot. A a a a. A a a. Still Henderson okie of three speakers to address the crowd in the packed High school gymnasium probably spoke for everyone when he said a i wish future peace in this town i wish future peace in this school and in this Community. May we All one Day rest in peace from the troubles of this Newton highs year of turmoil approached its finale thursday when judge Marvin h. Shoob of Federal District court in Atlanta ruled that c. Thomas Allgood Iii a White student and Henderson should both serve As valedictorians. The school Board overseeing this school of 2,000 students 35 Miles East of Atlanta had tried unsuccessfully for two months to balance the two seniors competing claims a if the Nobel prize can be shared by the top scientists artists and writers surely the valedictorian of Newton county High school can be shared a the judge said. All Good sued the school District in May alter the school Board voted 3-2 in Tavor of Henderson. Allgood a Grade Point average of 97.7 topped Llen-11 wish future peace in this school and in this Community a Johnathan Henderson Dersons 96.96, hut because of questions raised about the accreditation standards for the school Allgood transferred from both claimed to be valedictorian. Henderson had higher grades for the time both went to Newton county last week ordered a new school Board hearing to Settle the dispute but the Board with its chairman absent deadlocked 2-2 at a meeting monday and decided pot to have a valedictorian. Allgood then requested another hearing at which Shoob chastised the Board for failing to decide indicated he might find the Board in contempt of court for the chairman a failure to attend the meeting and reluctantly came up with the solution of dual valedictorians. Lawyers for the two students both of whom plan to become doctors said the dispute was not Over race and neither student wanted it to become a racial Issue. A the Issue Between the two of us is not a Black White is Niue a said Allgood. But when asked whether Allgood a status reflected the desire of the school to have a White As valedictorian or co valedictorian Henderson said a probably. There never has been a Black before. I can to say for sure but that might have Beevi a a. Whatever the Case by years end race had become the subtext to most of what goes on at Newton High which is one third Black and two thirds White and Lor rated at the edges of where Atlanta a exurban sprawl tails off and Rural Georgia begins. Judge in Smith Case to Issue a gag order. ,. A i a l i a u. I a a. Friole to not line lilt in Milt u by the los Angeles times West Palm Beach Fla. A the judge in the William Kennedy Smith rape Case declaring that a a incessant news coverage is a polluting the potential jury panel a said Friday that she would Issue a gag order barring statements outside the courtroom by prosecutors defense attorneys witnesses and investigators. County circuit judge Mary Lupo said the order would cover sen. Edward. M. Kennedy d-mass., Smiths Uncle. She described Kennedy As a clearly. A witness after prosecutor Moira ease it charged the senator a continually uses a National network of publicity to present Smiths defense. Lupo saying that limiting pretrial publicity about the Case is a extremely urgent a acted after giving attorneys Only a Days notice of the expedited hearing Bri Dav. A a a Smith s lawyers had sought a More limited order that would have required prosecutors and police to adhere to Florida s limits on what can he said about pending cases. Smith 30, has been charged with sexual Battery a rape in other states a and Battery of a 29-year-old woman who drove him Back to the Kennedy family s estate in Palm Beach where he Kennedy and other family members and friends were spending the easier week a end. Smith has pleaded not guilty and branded the woman s version of events a outrageous a Lupo indicated that she would Issue the order barring out of courtroom statements this week perhaps As soon As monday the Day prosecutors and detente attorneys Are supposed to submit a proposed draft of the ban
