David L. Paul
David Lewis Paul | |
|---|---|
| Born | 1 May 1939 Miami, Florida, U.S. |
| Died | 18 January 2022 (aged 82) New York City, New York, U.S. |
| Occupation(s) | Financier, real estate entrepreneur, philanthropist |
| Known for | Founder of CenTrust Bank |
David Lewis Paul (May 1, 1939 – January 18, 2022) was an American financier, real estate entrepreneur, philanthropist, and convicted felon who established CenTrust Bank.
Biography
Born on May 1, 1939, in Miami into a Jewish household, Paul was the son of Ruth (née Goldstein) and Isadore Paul. His father, who operated a dry cleaning business chain, passed away when Paul was ten years old. Subsequently, his mother moved the family first to Scranton, Pennsylvania, and later to New York. Paul completed his education at Cheshire Academy followed by the Wharton School of the University of Pennsylvania.
He launched his professional journey in Connecticut with Paul Properties, where he developed two apartment complexes that sparked controversy. Later, he assumed control of the Massachusetts Real Estate Investment Trust Westport Company. In 1979, Westport acquired Chicago's American Furniture Mart for $6.5 million with intentions to convert the property into residential units. In 1983, Paul took over the near-insolvent Dade Savings and Loan Association by transferring a 92% stake of Westport to it and rebranded it as CenTrust Bank.
By 1988, CenTrust had become the largest thrift institution in the southeastern United States, managing assets worth $8.2 billion. Paul commissioned the construction of the $90 million CenTrust Tower designed by I.M. Pei. However, CenTrust experienced significant financial setbacks: losses of $119 million in 1989 and $1.7 billion in 1990 resulted in federal authorities taking control due to "excessive and inappropriate expenses and investments." These developments led to Paul's removal as chairman.
Conviction
On November 25, 1993, a Federal Court found Paul guilty of fraud linked to his personal misuse of CenTrust's funds amidst the savings and loan crisis. He was convicted on 68 charges including bank fraud, misapplication of funds, filing false tax returns, mail fraud, obstruction of regulators, conspiracy, and falsification of CenTrust records. Although facing a potential sentence totaling 350 years, he received an 11-year prison term along with an order to pay $65 million—comprising $60 million in restitution and a $5 million fine. He was released from custody in 2004.
Philanthropy and political contributions
Paul contributed $500,000 to the University of Miami and $100,000 to Barry University. He also served as chairman of the board at Jackson Memorial Hospital. Via his CenTrust Political Action Committee, he financially supported presidential campaigns for Joe Biden and Richard Gephardt as well as the Democratic Senatorial Campaign Committee.
Personal life
Paul entered into matrimony three times. His first marriage in 1965 was to Lynn Pamela Goelet from the prominent Huguenot Goelet lineage; they had two sons before divorcing. His second marriage to Joy Fererh Germont Simons lasted under two months. His third wife was Sandy Paul; they had a daughter prior to their divorce. Sandy subsequently married real estate developer Stephen Muss.
Paul passed away on January 18, 2022, at Mt. Sinai hospital in New York City due to complications from COVID-19.