Ex-banker, ex-con running for mayor of Grand Marais

GRAND MARAIS (AP) -- Seven years after being released from prison for fraud, a former Midwest Federal Savings and Loan chairman is running for mayor of Grand Marais.

Once one of Minnesota's most powerful business leaders, Hal Greenwood Jr. had a personal fortune of at least $17 million. But he was convicted in 1991 of bank and securities fraud in connection with Midwest Federal's failure, which was expected to cost taxpayers $1.2 billion.

He was found guilty of 25 felony counts, including conspiracy, racketeering, misapplication of bank funds, bilking investors by giving inaccurate information and ordering false accounting to deceive regulators.

"There was securities fraud," U.S. District Judge Paul Magnuson said during the February 1992 sentencing. "You were doing insider trading. Absolute grounds behind wire fraud. We should never lose sight of that."

Greenwood was sentenced to 46 months in prison and ordered to forfeit $3.6 million in ill-gotten gains. He was released in 1995 after receiving time off for good behavior and was ordered to report to a probation officer for three years.