In another victory for Charles Keating, an appeals court ruled Tuesday the former savings and loan magnate is entitled to a new trial on federal securities charges because jurors improperly learned of state convictions on similar charges.
The ruling by the 9th U.S. Circuit Court of Appeals comes four months after a federal judge overturned Keating's state securities charges, finding errors in jury instructions.Keating, who became a symbol of the 1980s S&L scandals after the $3.4 billion collapse of his Lincoln Savings, had served about 41/2 years of a 12 1/2-year sentence when he was released on bail in October 1996. He could be retried in both the state and federal cases.
Tuesday's 3-0 ruling upheld a 1996 decision by U.S. District Judge Mariana Pfaelzer of Los Angeles to overturn Keating's federal convictions and grant a new trial.