MINNEAPOLIS, JUNE 26 -- The former chairman and three top executives of Midwest Federal Savings and Loan were indicted today on federal fraud and conspiracy charges involving financial losses sustained by the failed thrift.
U.S. Attorney General Dick Thornburgh announced the 40-count indictment returned by a federal grand jury. Midwest Federal, which had assets of $3.5 billion, is being liquidated by the government at an expected cost of $1 billion. The thrift was about $1 billion in debt when it was seized by regulators in February 1989.
Indicted were Harold W. Greenwood Jr., former chairman; Charlotte E. Masica, former executive vice president and managing officer; Donald J. Snede, former senior vice president and chief financial officer; and Robert A. Mampel, former executive assistant to the chairman.
The Resolution Trust Corp., the federal agency created to clean up the nation's failing thrifts, put Midwest up for sale in April. The S&L has 30 branches in Minnesota, nine in Iowa, eight in Oklahoma, two in California.
Greenwood, Mampel, Masica and Greenwood's daughter, former Midwest Federal vice president Susan Greenwood Olson, were ousted when the savings and loan was declared insolvent and seized by regulators.
Greenwood Olson was indicted in March on 10 fraud counts involving $15 million in loans to the Jockey Club marina and resort in Miami. Prosecutors allege the loans far exceeded the value of the resort and that false documents were drafted to hide Midwest Federal's shaky financial condition.
The resort, which owed Midwest Federal $23.5 million as of Feb. 1, 1989, was sold in July for about $2.8 million and is under new ownership.
Gov. Rudy Perpich has tried to distance himself from Greenwood, who was one of Perpich's biggest campaign contributors before the S&L collapsed.
Meanwhile, in Washington, the House of Representatives approved a $10.5 billion money bill that would give the Justice Department an additional $75 million to use in prosecuting fraud in the nation's thrift scandal.