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Show Did DeLorean Borrow or Steal 20 Million Swiss Francs? David Everett Newspapers DETROIT It's only one typewritten page It has no date, a confus ing address, two key initials that government agents believe are fake Rv Kmght-Ridde- r and a lone paragraph that supposedly authorizes a loan 01 neat iy 2u million franes But this single, controversial document, titled Stock Option Loan Agreement," appears to have become a key morsel of evidence in John DeLoreans racketeering trial in Detroit Although federal prosecutors have the burden of proving DeLorean guilty, DeLorean s defense team has used the loan agreement in an aggressive courtroom campaign to raise doubt in the minds of jurors Prosecutors contend the document is fake, a attempt by the former automaker to explain six years of controversy over how he got $8 5 million of his car company's money. DeLoreans lawyers say the agreement proves he did not steal the money but got it as a loan The stock option agreement, long rumored but never before disclosed, K zs zsc on on is- amnmt tuiv in Ull cnrnric tut (It jui git i.ivu ov for internationally publicized trial now past the midway point DeLorean is charged with using a complicated, international financial scheme to embezzle the $8 5 million from his company, which built stainless steel, sports cars in 1981-8at a plant in Northern Ire"10-Ye- aU another detense lawyer, Brooks, turned their efforts to the issue of the key to Degovernment conduct Lorean s 1984 acquittal m California But the central question is Did DeLorean steal or borrow the $8 5 mil- S In the document DeLorean ap pears to give GPD Services the Panamanian corporation, the right for 10 :did tu uuy me uumuii Mimes ui stock in one of his companies, or GPD would have the right to be repaid in Swiss francs the equivalent of $8 5 million at 44 percent interest for Mondaj Morning No ember Section B - 17, 1986 Page Hick Van Sant By Business vears 10 la kr Sri lmn r lion'1 for-m- Swiss last-ditc- the Detroit based assistant attorneys tryirg to convict have presented a parade of witnesses and documents that prove DeLorean got the $8 5 million in 1578-7They imply that he got it illegally and that the stock option loan is a ruse Witness after witness from bankers to lawyers to accountants to oiiHeis oi laeLui eaus companies, has testified that the money was supposed to pay for engineering work on DeLorean s sports car Most said they had never heard of any GPD loan to DeLorean, and several including DeLorean s accounindicated they tants and auditors should have been told about such a deal The prosecutors also have told the jury about mysterious envelopes handed to surprised lawyers, of offshore corporations being quietly formed, of secret negotiations being all blurring held in European cities into what they paint as a sinister maze of embezzlement and cover-up- s Light, I a hr Home State Savings Owner. 2 Others Face Trial For Ohio Banking Crisis 7 - two lormer Home State presidents Bui ton Bongard and David Schiebel also will stand trial with Warner. The three ate accused of illegally funneling millions of Home State dol lars to ESM Government Securities Inc Flirt Lauderdale, Fla When ESM collapsed under heavy debt last year Home State lost at Hammond Briii-- t l Duffv cwner of the defunc NNjiier Home State Sav ings Bank, the Cincin nati thrift where the first run oc 45 count1 cuired faces 50 charges ol w.llful misapplication of funds four counts of securities violation.1 and one count of theft by deception United Press International - Multimillion CINCINNNATI aire Marvin Warner. b7. goes to trial Monday on charges that his business dealings triggered the biggest bank ing crisis in Ohio history That cusis triggered bank runs by worried depositors last year and prompted Gov Richard Celeste to close 70 sav ings and loans tor as little as several days and as long as several months least - The whammy gull-win- g 2 land. Regardless of Me outcome of the criminal case, DeLorean still faces civil action from his bankrupt companys creditors, who want the money returned One of the challenges facing the seven women and five men on the jury in the criminal case is following the path of the money DeLorean is charged with stealing Here's what evidence has shown In 1978, the $8 5 million was paid from one of DeLoreans U S companies to GPD Services Inc., a Panamanian company that was little more than a piece of corporate aper with a post office box in Geneva. Switzerland In 1979, the money was transferied to a L.berian shell corporation's account at a Swiss bank, to be secret collateral for a loan to DeLorean from a Dutch bank DeLorean tfen used the money back in the United States to pay off a loan he got from an Illinois bank to buy a company in Utah The defense agrees with that explanation, adding only this GPD, secretly controlled by a British race 'car executive, loaned the money to DeLorean m exchange for the 10- - 'ar stock option Joseph Papelian and Sheldon fended DeLorean against drug charges in 1984, got Javits to give tes- timony that appeared to support the defense. First, Javits said he saw nothing wrong with most of the deals that and Light paint as sinister Then he said he thought Chapman was behind GPD, thus appearing to support the defense. Last week, Weitzman and Juanita n W iekev Top Action NEW YORK Wickes Cos com- . mittnH muiv mail tO W.11 U1111UU Hiuvvu lu IWU major acquisitions, the Revlon Group launched a takeover bid for Gillette s Co and broke off its television deal with SCI Holdings Inc Wickes said Tuesday it has agreed to acquire the aviation company Lear Siegler Inc in a deal valued at $1 7 billion, or $93 a share and $232 50 per preferred share The acquisition announcement Lorimar-Telepicture- came just three days after Wickes agreed to purchase New York-baseCollins & Aikman Corp for $1 6 billion Wickes, which emerged from Chapter 11 bankruptcy proceedings last year, stands to more than double its annual revenues if both acquisitions are completed The company said Lear Siegler would operate as a separate entity within Wickes, with its own management team Following the acquisition, Norman Barkeley, chairman and chief executive officer of Lear S.L. Chambers Womens Panel Schedules Business Exchange The Women in Business Committee of the Salt Lake Area Chamber of Commerce has scheduled a "Business Exchange Tuesday so business women can promote services and products. The event will be held at the Holiday Inn Salt Palace from 11 am to 1 30 p.m Kayleen Simmons of the Elitist, chair of the committee's business ex- change committee, said the exchange also will allow business women to encourage one anothers success. Ms. Simmons projected that 400 PRINTER SALE people will visit booths displaying products and services of 50 businesses A buffet luncheon will be served and door prizes handed out Ms Simmons said grand door prize is a round-triticket to anywhere in the IMited States or the Caribbean that Eastern Airlines flies. Committee members who bring two associates to the business exchange will qualify for the grand-priz- e drawing p Cost of the event is $10 More information is available by calling LaRae Clark at the chamber office. Siegler, will join Wickes' board rectors of di- Revlon Group Inc Friday said it offered $65 a share in cash, or $4 01 billion, for Gillette Co one of the nation's leading makers of razors and personal care products g , Revlon, in announcing the tender offer, disclosed it already owns 9 23 million Gillette shares, which it said amounts to 13 9 percent of the company's currently outstanding common stock E F Hutton Group Inc , which ended merger talks with brokerage com- petitor Shearson Lehman Brothers Inc., Tuesday refused to comment on rumors it may be acquired by U S West Inc , the regional telephone company. Robert Sharkey, a spokesman for New York-baseE F. Hutton, declined to comment on rumors that U S West is planning to offer $55 a share for the brokerage house A native of Birmingham, Ala , Warner earned a law degree at the University of Alabama, where he was a classmate of outgoing Alabama Gov. George Wallace But he took a keen interest m real estate when he saw how lucrative an investment in a apartment building in Birmingham could be Don Johnson, a spokesman for ColorSeizing upon the tremendous ado-based U S West, said his comWar II housing boom when interest rates were low and demands pany would not comment on the reWarner moved to ports. But Johnson did point out U S for homes high West has asked a federal court for Cincinnati in 1950 and developed new e houses for middle- - and permission to go into the securities people He became a millionaire industry d post-Worl- d OFFICE SPACE NEEDED The Federal Government has a requirement tor approximatley 45 000 net usable square feet of office space, together with a substantial number ot parking spaces in Ogden. Utah Spare must be located in the area bounded by the tollowing streets 4700 West on the west 2700 North on the north, Harrison Boulevard on the east, and 4800 South on the south First floor space with minimum 125 pounds per square toot floor load capacity is desired The space must meet handicapped accessibility standards Occupancy is required by August 1. 1 987 Letters of interest should be submitted by November 24, 1986 General Services Administration Leasing Branch 7PEL DC Building 41 Denver Federal Center P O Box 25546 Denver, Colorado 80225 0546 Attn- Lupe Muniz Telephone (303) 236 7224 featuring EPSON Homewriter 10 Printer THE COUNTDOWN ON FOR 1986 AUDIS Epson's near letter quality printer has deluxe features such as 100 CPS, 160 typestyles to choose from, full graphics capability, parallel interface and 12 month HAS BEGUN. warranty. Reg. $349.95 Optional tractor feed available at special price iy""r ;v ", VA , t Audi 5000 S '? 'a CM- ", Audi 4000 s Audi 4000 Quattros H 1$! MasterCard f C f sT American Express 533 CT , .i' i .I I VISA j, & 'K 90 Days Interest Free m ( i r.i iui yc vn i.umi Evft t l - I' ii"i . ( I 1, l' I T nq cars ? mO M ; " r I I" rj, jla vu.i! 0 0' eri t al 1986 Dt 'r . ' ' I .t' (Over 45 1987 Audts now in stock!) ,&'s a Just last month, a federal grand juf alsO iiiuiiitru VVdUlt1 Hi llie Home State affair The federal trial is scheduled after the state trial, which Hamilton County Common Pleas Court Judge Richard Niehaus expects to last two months Numerous other ESM and Home State defendants have worked out arrangements with prosecutors, but not Warner, who maintains, "I am absolutely innocent "For me, at this stage of my life, to commit an unlawful act, would be senseless, stupid and crazy." he said Warner certainly has not been prone to ''senseiess decisions throughout his career A sharp business mind and a willingness for hard work made him worth millions, with estimates ranging from $50 million to $100 million Takeovers Dominate Market Week By Donald Gallagher United Press International million Depositors began Ohioans temporarily without access to millions of dollars in their accounts Home State depositors could not touch their money for 94 days. W arner's trial on Monday is the result of a special state grand jury investigation of the Home State collapse That grand jury announced its indictment of Warner 10 months ago h DeLoreans lawyers, led by Howard Weitzman of Los Angeles, agree that their client got the money, but their explanation is the loan agreement To them, John DeLorean is a sad victim of a complex series of deals masterminded by Colin Chapman, whose company. Lotus Cars Ltd of England, engineered the DeLorean car. Chapman, who died in 1982, lent DeLorean the $8 5 million through GPD Services, Weitzman says. Many prosecution witnesses have supported the defense's contention that Chapman was the man behind GPD as for the alleged cover-up- , Weitzman indicates there was none Chapman demanded secrecy, and only DeLorean and Chapman knew the details The best witness for both sides so far may have bee n New York lawyer Eric Javits Javits, a former DeLorean Motor Co. director and nephew of the late U S Sen Jacob Javits of New York, was the most intimate associate yet of DeLorean to say he never knew about the stock option loan agreement Papelian also used Javits to disclose a 1982 document that shows DeLorean tried to sell the same stock that supposedly already was pledged stock option. The dein the fense says the stock would have been cleared of the prior obligation before being sold Weitzman, who successfully de- $114 run on the bank and it closed in a few day s That spar ked runs on other Ohio savings and loans and Celeste ordered 70 closed until they shifted from state to federal insurance 'livnr.va 10 I k Mins MODERN MEJ0O TECHNIQUES- " DAVE STRONG POmSTHEF AUDI rr-zs-zs 1111iS S', He fd't LaSe (V, m ih BI'M 5 6 SWOO |