Appeals by the imprisoned former president of Old Court Savings & Loan, Jeffrey Levitt, and his wife Karol, seeking to have their jail terms overturned, were rejected yesterday by a Maryland appeals court.
The Levitts had argued that Baltimore Circuit Judge Joseph H.H. Kaplan had no right to impose a $1,000-a-week spending limit on them and was wrong to jail them for contempt of court for spending more than that.
Kaplan imposed the limit in September to ensure that the Levitts' assets did not vanish before massive civil claims against them and others involved in the moribund Old Court Savings & Loan of Baltimore were decided.
In January, Kaplan sentenced Jeffrey Levitt to 18 months in jail and Karol Levitt to serve 15 weekends.
The Maryland Court of Special Appeals agreed with the Levitts yesterday that the spending limit was an "extraordinary" legal action, but said it was demanded by extraordinary circumstances.
If charges against the Levitts are correct, the court noted, "the fraud perpetrated is colossal."
"Millions of dollars of time deposits have allegedly been converted, diverted or perverted into the pockets of the depositors."
The Levitts' attorney, Paul Mark Sandler, declined through his secretary to comment on the decision or say if he planned to take the case to a higher court.