Newspaper article THE JOURNAL RECORD

Muskogee Savings and Loan Firm Files $19.5 Million Suit

Newspaper article THE JOURNAL RECORD

Muskogee Savings and Loan Firm Files $19.5 Million Suit

Article excerpt

A Muskogee savings and loan institution filed a $19.5 million suit Tuesday in U.S. District Court for the Western District of Oklahoma against a Duncan savings and loan, an Oklahoma City financial corporation and related parties.

In the suit, Phoenix Federal Savings & Loan of Muskogee alleged United Federal Savings & Loan of Duncan, C.B. Financial Corp. of Oklahoma City and related entities violated Title IX of the Organized Crime Control Act of 1970 (Racketeer Influenced and Corrupt Organizations Act) and committed "breach of fudiciary duty, intentional and constructive fraud, breach of contract, tortious breach of covenant of good faith and negligence."

In addition to United Federal Savings & Loan and C.B. Financial, other defendants named in the suit are Charles J. Bazarian, Janice L. Bazarian and Ed Mittelstet of C.B. Financial; and Mittelstet, Ken McClanahan, Larry Conditt, Robert Engles, William D. Manahan, Kenny Simpson, W.O. Young and Frances Mittelset of United Federal.

The suit alleged that Phoenix Federal entered into six participation agreements with United Federal between July 9, 1984, and Dec. 7, 1984, to loan C.B. Financial more than $12.6 million. Phoenix Federal's participation in the loans was for more than $2.9 million.

The suit alleged that United Federal agreed to repurchase the loan participation agreement should the loans ever go into default.

According to the suit, United Federal failed to perform its agreed-upon duties on behalf of Phoenix Federal and never intended to. …

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