1st Executive Unit Sues Trump, Griffin, Drexel

A subsidiary of First Executive Corp. filed suit Thursday accusing Merv Griffin, Donald Trump and Drexel Burnham Lambert of inflating the value of Resorts International Hotel in documents filed to promote the sale of junk bonds Griffin used to buy the hotel.

The lawsuit, filed in federal court, names Griffin; Resorts International Hotel; Trump, who was vying with Griffin for purchase of the hotel; Drexel, which underwrote the securities, and Houlihan, Lokey, Howard & Zukin, investment bankers in the offering.

First Executive’s subsidiary, Executive Life Insurance Co., bought the notes in November, 1988, and said it suffered serious losses when their market price “fell precipitously.”