Just three days before the union pension fund loan closed on June 29, 1990, Symington told First Interstate that the same $11.9 million financial statement was only a "best efforts" guess of his net worth because of the real estate depression that had gripped Arizona.
The guilty verdict in the Mercado deal compounds Symington's troubles in U.S. Bankruptcy Court, where the pension funds have filed a civil suit seeking to prevent Symington from discharging the Mercado debt, which with interest, is now $12 million and counting. The verdict greatly increases the chances the pension funds will obtain a judgment against Symington.
After the verdicts, Symington wasted little time announcing his intention to resign and declare a unilateral cease fire. With sentencing still to be decided by Judge Strand, Symington appeared to be in no mood stir up more controversy.
"The war of words is over, an era has passed," Symington said.
The governor's combative attorney, however, appeared far from ready to surrender. Dowd, sticking to the theme he had repeated since the criminal probe began in September 1991, blasted the federal government for bringing the case.
Dowd promised to fight the case on appeal, first with Judge Strand, and, if necessary, the Ninth U.S. Circuit Court of Appeals.
"We are not through," Dowd said. "We are not done fighting, mainly because this case does not have any merit."
While Dowd was licking his wounds, Nora Manella, U.S. Attorney for the Central District of California, held a press conference across town and congratulated Schindler and Cardona for their work on the case.
"I'm absolutely convinced that no two prosecutors in the country could have done a finer job," Manella said.
Manella said the verdict is a victory for all Americans because it proves that the rich and powerful cannot escape the hand of justice.
"No amount of pedigree, education or business sophistication will excuse someone from playing by the rules," Manella said.
"The jury has held the governor accountable."
By September 3, George Leckie's acquittal proved to be the only bright point in the scandals that rocked Symington's administration.
Symington's longtime personal, business and campaign accountant, John Yeoman, was dead.
Leckie, while acquitted of federal criminal charges, has suffered immeasurably from a struggle with throat cancer.
And Symington, who led a charge from Republican business leaders to remove former Republican governor Evan Mecham from office in 1988, was stripped of his job as governor and faces an uncertain future when he is sentenced in November. In addition to prison time, he probably will face stiff fines.
The bankruptcy civil case also looms. If he loses that, he could be saddled with a $12 million judgment that he would have no choice but to repay.
Symington should have the wherewithal to cover at least part of the debt because of the inheritance he received after his mother died last year.
Symington's fall from power began with the release of sensitive examination reports of Southwest Savings by Senator Metzenbaum's subcommittee.
Metzenbaum, now retired and living in Bethesda, Maryland, said Saturday he was pleased that his suspicions about Symington held up in federal court.
"I can't say I don't feel vindicated," Metzenbaum said. "I got a lot of criticism at that time. And it's obvious we were not on the wrong track."
Metzenbaum said he was severely criticized by Symington and his supporters for conducting the examination and releasing the details just weeks before the runoff election.
"I remember Symington came in, as well as a number of my friends in Arizona, and took umbrage with me that I would be raising these questions about his business deals. But obviously we had a basis to be doing so," Metzenbaum said.
Metzenbaum said he pressed forward with the hearings because he feared that federal regulators were not aggressively prosecuting those responsible for the collapse of the nation's savings and loan industry.
"I was concerned then about hundreds of millions, billions of dollars that were being taken out of the federal treasury" to cover the losses resulting from shoddy management and poor investments, like Symington's Camelback Esplanade, he said.
Symington, Metzenbaum said, was just one of many developers and crooked bankers who looted the nation's thrifts. The scandal that rocked the nation in the late 1980s will cost taxpayers more than $500 billion before all the losses and interest costs are paid.
"We tried to do something about it," Metzenbaum said. "And Fife Symington as well as [Charles] Keating were major players. It's interesting time has caught up with him. It hasn't caught up with a lot of the other guys who ripped off the system, unfortunately.
