OTHER NEWS - June 15, 1992

Arrests in FSG Municipal Bond Scam: John Anthony Genetti, 44, was arrested on a 45-count federal indictment for allegedly masterminding a municipal bond scam that bilked $34 million from California investors via now-defunct FSG Financial Securities of Beverly Hills. Genetti’s lawyers said he will plead innocent. Also arrested was Louis Vargas, 31, the U.S. Attorney’s office in Los Angeles said. Prosecutors charged that Genetti, chairman of the Santa Barbara Rescue Mission, conceived and directed “a complex racketeering and securities fraud scheme spanning six years and involving several companies created primarily for the purpose of marketing bogus municipal bonds.”