News Scrapbook 1986-1988

San Diego, CA (San DI go Co.) San DI go Union (Cir. D. 217,089) (Cir. S. 341 ,840) ~UG 9

'\ 81

, Jl/(,

, , ,~xx are o

p c. e

• exan ear1n

11 ',

•

9'3> xec of failed

thrift w oed . 1egan n Burkhardt

"Jight Sentry," formerly in the tion, is now in the Vatican. $1 million liability on a building near his Sacramento hotel based on the promise that Vernon would finance Gagosian's next five hotels. When Vernon was closed, Gago- sian was left with a $1 million liabili- ty, no title to the underlying property and a now-worthless promise to finance five more hotels. He is disputing the $1 million liability. ''They said if you want future loans, you have to take care of our delinquent loan," Gagosian said, add- ing that he regarded the liability as part of the "cost of doing busine s." Gagosian earlier started another chain of 69 hotels based in San Diego, called the Royal Inns of Amenca Royal Inns fell into bankruptcy m the 1970s after Gagosian's departure

The San D go l n n 'Tony Doubek

Don Dixon s new house in Rancho Santa Fe was not completed after the failure of his Texas S&L.

•

Larry Taggert Dixon consultant

Doug Manchester Ties brought troubles

Bill Lowery Embarrassed congressman At that lime, Vernon had $82.6 mil- lion in a sets and no significant regu- latory problems. But by 1986, the thrift had assets of $1.3 billion and most of its loan portfolio was bad. A 1960 graduate of UCLA, with a bachelor's degree in business, a self- employed Dixon dabbled in real es- tate and antique cars before acquir- ing his thrift. He reportedly had fine ta te mfurniture, art, wine and cars. In his current bankruptcy, he lists his current business as new cars, real e tate and financial consulting. He estimates his mcome this year will be $104,500, compared with $1.9 mil- lion in 1986 and $2.9 million in 1985. Most of Dixon's friends and ac- quaintances in San Diego say they haven't seen him for several months. He moved out of the Del Mar beach house in December 1986. He is trying

Bishop Maher Denies being "used" said Low ry de Ben Haddad. B 'h Lowery and Manchester have be n cmbarra . ed by the rela!Ion• hip they sub equently developed with Dixon, who has been described by hi own attorney as a "wheeler- d Jcr." The b1 hop too ha had to explain why he ent to Europe in May 1985 at Vernon 'a, !lg ex- pen ·e. Except to issue a general demal of any wrongdoing, Dixon's attorney, Marc Levinson. said he did not wish to d1 cus specific allegations agam t his client becau e Dixon de- fense •'is fairly complicated." Dixon was born in Vernon, Texas the to.,.,n that also witnessed the birth of Vernon Savings. Dixon ac- quired in 1982 what was then a small, sleepy savings and loan using bor- rowed funds.

He also said Dhon did not "use" him because Dixon bad "plenty of con- tacts without me.' The uropean trip cost Vernon Savings $17 522 05, but that did not include the cost of the Vernon corpo- rate jets, which took Maher, Eagen and the Dixons to and around Eu- rope. Eagen and Maher noted that the Dixons had other guests, and that the two prelates returned to San Diego on a commercial jet while the Dixons continued their trip through Europe. Maher and Eagen also said they had no idea their travel. food and lodging were charged to Vernon Sav- ings and Loan. Maher said he accepted the offer of the trip as a matter of conven-

to make a new life for himself in Laguna Beach, his attorney said. Meanwhile, many rueful San Diego residents are trying to forget him. , Dixon and the bishop Court records show Maher and Monsignor I. Brent Eagen, pastor of Mission San Diego de Alcala, were entertained at Vernon's expense in Paris, London and Rome for a week to 10 days in April and May 1985 - shortly before the bishop allegedly introduced Dixon to Lowery and rec- ommended Dixon to Manchester. The bishop, while admitting he was at the same party with Dixon and Lowery and did make some in- troductions in Dixon's behalf, has disputed Lowery's assertion that he actually introduced Dixon to Lowery.

See Dixon on Page -8

y•vJv- -1".-U U UGUCCIIUdift, 01 [Ileong- inal Osuna Ranch family, which once owned all of Rancho Santa Fe. Rosenblatt said Osuna's "old roots" were useful to Dixon.

... r-.--r=~--=t:====::;;i._ _J

by"~~l"u":ir":in~g-c ... e

=~~h~;i~~u;

tion bill. Congress recently p;;;~-da $10 billion plan. Both Taggart and Manchester said they believed that Dixon to some ex-

inter t p ym nts on the condo prOJ· eels to La Jolla Pacific Saving Bank which wa owned by Manche • tcr at th tlm Manche ter ordered

tain borrowers to join the Moonlight Beach Club in exchange for loans from Vernon Savings. The borrowers