Keating’s Son Settles Claims for $30 Million : Lincoln S&L;: Regulators will probably never see any of the money, as Charles Keating III is bankrupt.

The son of convicted securities defrauder Charles H. Keating Jr. has agreed to settle regulators’ claims against him by paying $30 million for losses at Irvine’s failed Lincoln Savings & Loan, but it’s unlikely that regulators will recover any of that money.

The Office of Thrift Supervision said Thursday that the restitution settlement with Charles H. Keating III is aimed at recovering any money that might be hidden away and transferred to him at a later date. The younger Keating has claimed he has no such money.

As in other settlements stemming from Lincoln’s 1989 collapse, the agency is not seeking legitimate earnings the younger Keating might make in the future. Keating is broke and in U.S. Bankruptcy Court.

Lincoln’s failure is the nation’s worst thrift disaster, costing taxpayers an estimated $2.6 billion.

The younger Keating, who was a director of Lincoln’s parent company, American Continental Corp. in Phoenix, also agreed to be banned permanently from the banking industry. He neither admitted nor denied the accusations filed against him by OTS.

He and his father are scheduled to go on trial in U.S. District Court next month on a 77-count fraud, conspiracy and racketeering indictment. The elder Keating, widely viewed as a symbol of the thrift industry’s failure, is already serving a 10-year term in a state prison for his conviction last fall on state securities fraud charges.

In its administrative action, the OTS had accused Keating, his son and four other former officers and directors of American Continental of four illegal actions that caused Lincoln significant losses.

The OTS reached a similar settlement for $75 million last month with two of Keating’s sons-in-law, Robert M. Wurzelbacher Jr. and Robert J. Hubbard Jr., and two others. Wurzelbacher was a senior vice president of American Continental and Hubbard was a corporate vice president and one-time Lincoln chairman and president.

The other two who settled last month were Judy J. Wischer, American Continental’s former president, and Andre A. Niebling, a former corporate senior vice president and one-time Lincoln chairman and chief executive.

The younger Keating must submit annual sworn financial statements for the next 12 years. He also agreed to cooperate with regulators by testifying at any proceeding related to Lincoln.

The agency’s charges against the elder Keating and Robert J. Kielty, the former corporate general counsel, are still pending.