Business Notes: Scandals

As Charles Keating's real estate empire crumbled around him in August 1990, he apparently reached for something to hold on to. And, according to the Arizona Republic, he got plenty. Last week the newspaper reported the allegation that just before he resigned as chairman of American Continental Corp., which had filed for bankruptcy protection, Keating looted the office of various and sundry supplies and had them shipped to a building he had rented. The alleged booty: lamps, typewriters, phone and computer equipment, a Minolta overhead projector and paper. "A myriad of items. Everything you'd need to start a new business," said a lawyer who is familiar with the investigation.

Not that Keating is setting himself up in business anytime soon. Last month the former high-flying financier was convicted in a California court of securities fraud connected with the failure of Lincoln Savings & Loan, an A.C.C. subsidiary. Federal criminal charges followed, and when Keating claimed negative net worth, the judge reduced his $2 million bail to $300,000. The Feds have amassed a 77-count indictment that accuses Keating, and four others, of defrauding Lincoln of $250 million. Keating maintains his innocence on the charges. Oh, and the missing property has been returned to A.C.C.