Real Estate Investor Pleads Guilty to Bank Fraud
SAN FRANCISCO — Richard J. Meyer, accused of looting a failed savings and loan, pleaded guilty Friday to bank fraud and misusing bank funds in return for a five-year federal prison sentence.
Meyer, 57, admitted to what prosecutors said was a “wide-ranging scheme†to use Cal America Savings & Loan Assn. in the Bay Area city of Walnut Creek “as his personal piggy bank.â€
Many of the millions of dollars in deposits that prosecutors said Meyer siphoned from his thrift ended up in his real estate projects around Orange County such as Anaheim Civic Center Plaza, the Fullerton Business Center and Imperial Saturn Business Park in Brea.
When federal regulators took over Cal America in 1986, it had a deficit of $83 million.
A year later, the deficit had jumped to $110 million, two-thirds of which was attributable to bad loans.
The government got much of that money back by selling the thrift and some of the real estate the thrift had wound up owning. But Meyer or companies he had an interest in still owed Cal America $16 million.
Last year, the government indicted Meyer, who lives in Los Angeles, on 14 counts of fraud and misusing thrift funds. Among the allegations: That he swindled the thrift he owned from 1983 to 1986 of $114,000 for a Rolls-Royce; a $25,000 monthly operating bill for an airplane; and $376,000 to pay his ex-wife to decorate his offices.
He had faced a sentence of up to 70 years in prison and a fine of up to $2.6 million on all 14 counts.
Under the plea bargain, Meyer also admitted to a second count charging him with using $1 million of depositors’ funds to pay off a debt to Union Bank in Los Angeles.
In averting a trial, Meyer agreed to serve five years in prison and five years of probation.
Meyer has already paid $1.5 million to the Federal Deposit Insurance Corp. to settle a civil suit.
Meyer also agreed to open his personal financial records; if he has more money than he contended at the time when he settled the civil suit, the government can go after more of his money for restitution.
Meyer also owns a stake in Anaheim’s Pacific Inland Bank, where he was chairman; he resigned after being indicted in April, 1992.
Prosecutors said he now runs a real estate company called Meyer Asset Management in La Habra.
Meyer’s lawyer said Friday that his client would have no comment.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
