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In early 1992 , the firm was targeted by federal regulators and punished for its alleged involvement with their client Charles Keating and the now infamous failed Lincoln Savings & Loan Association ( S&L Scandal ). The Office Of Thrift Supervision sued Kaye Scholer and three of its partners for US$275 million. The Office of Thrift Supervision froze the firm's assets and as a result Kaye Scholer agreed to pay US$41 million in fines and admitted no wrongdoing to settle charges.


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