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Unfinished Resort Sits in Legal Limbo;Financed Mainly by Failed Thrifts, Would-Be Florida Playground Now a Debt to Taxpayers
[FINAL Edition]
The Washington Post (pre-1997 Fulltext) - Washington, D.C.
Author: Downey, Kirstin
Date: Feb 17, 1991
Start Page: h.01

When Gulf Island's legal status is finally settled, it is likely it will be added to the inventory of the FDIC, which manages properties from S&Ls that went out of business before the passage of the Financial Institutions Reform, Recovery and Enforcement Act in August 1989. It now has some 8,834 properties with a book value of $3.8 billion it is trying to sell. Some government officials say, however, that it may land instead amid the 41,000 properties in the inventory of the Resolution Trust Corp., which handles S&Ls that failed after August 1989.

The project was developed by Joseph Senkovich Jr., then of New Smyrna Beach, which is on the opposite side of the state from Hudson. The veteran of one previous development project, Senkovich started Gulf Island when he was 29, worked on it while he was 30 and lost it to his lenders when he was 31.

Guy W. Olano Jr., chairman of Alliance Federal Savings and Loan, a divorce attorney who entered the savings and loan business when he started Alliance in 1981. He has been convicted of bank fraud, bankruptcy fraud, income tax fraud and conspiring to make unsound loans in return for kickbacks. In addition, at one of his trials, a Drug Enforcement Administration representative testified that Olano had been linked to cocaine trafficking, and a Federal Bureau of Investigation special agent testified Olano was connected to organized crime and money laundering for South American drug families.

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