In 1983, the failing thrift, with 32 branches and $2.2 billion in assets, was acquired by real estate developer David L. Paul for $32 million[1][2] and the following year was renamed CenTrust Savings & Loan Association.
Chairman and CEO David Paul was convicted in November 1993 in federal court on 68 counts of tax fraud, obstruction of justice and misapplication of bank funds.
[7] The government charged that Paul had used bank funds for personal reasons such as making improvements on his home and paying the expenses on his $7 million yacht "Grand Cru."
CenTrust's executive offices were opulent, featuring gold-plated plumbing, gold-leaf ceilings, a $1 million Italian marble staircase, and a bulletproof shower door.
[9][10] When the Financial Institutions Reform, Recovery and Enforcement Act of 1989 was passed it banned the purchase of junk bonds by thrifts and required them to dispose of their holdings by 1995.
[11] Bank of Credit and Commerce International (BCCI), through nominee Saudi businessman Ghaith Pharaon became CenTrust's largest shareholder with 28% ownership.
[20] He also had meetings with Senators Bob Graham (D-FL), John Breaux (D-LA), Tim Wirth (D-CO), Ted Kennedy (D-MA), Joe Biden (D-DE), Alan Cranston (D-CA), and Donald W. Riegle Jr.
)[21] Miami Beach mayor Alex Daoud was convicted of taking $35,000 in bribes to help Paul obtain permits to expand the dock at his house on La Gorce Island for his yacht "Grand Cru.