Daily News from New York, New York • 37

TM3MHIAT a a 3 A8U5 vasatsmasm Ml 1 UUW Up JONES 25.42 Costly health insurance decision due Page 3 MONEY PAGES: Business by the numbers Page 4 Futures traders are in hot cocoa Page 6 "Everybody knows that Harry (Helmsley) is an old man and Leona has her own problems." Real estate insider ML MP 1 imuuidu. teied vir If tub' hf'v4frrr i i IN NAME ONLY? Harry and Leona Helmsley own very few buildings outright; even the Helmsley Building on Park Ave. and 45th St. is owned by a syndication, of which Harry is a partner. tom monaster daily news sa mo sm By ROXANNE TAMARKIN Daily News Business Writer Five former officials of Princeton-Newport Partners LP and a former Drexel Burnham Lambert Inc.

trader were convicted yesterday in the first use of tough federal racketeering laws against Wall Street professionals. The convictions in U.S. District Court in Manhattan on charges of racketeering, conspiracy and fraud charges marked a stunning victory for the government in its three-year-old crackdown on white-collar securities crime. A federal jury deliberated 2V2 days before returning guilty verdicts on all but one count in the 64-count indictment. Jurors acquitted two defendants, ex-Drexel trader Bruce Lee Newberg and former Princeton-Newport partner Charles M.

Zarzecki, of one count of wire fraud. All six defendants were found guilty of conspiracy, racketeering and racketeering conspiracy as well as numerous counts of mail and wire fraud. The racketeering counts carry a maximum sentence of 20 years in prison, a $250,000 fine and also allows for huge forfeitures of money and other assets. The conviction was the second in a row for the government in cases derived indirectly from the Ivan Boesky insider trading scandal. In June, former Singer Co.

chairman and corporate raider Paul A Bilzerian was convicted of a range of criminal securities fraud violations. The government alleged that the defendants illegally bought and sold stocks to generate phony tax losses. In addition to Newberg and Zarzecki, convicted were Princeton-Newport partners James Sutton Regan, Jack Z. Rabinowitz and Paul A. Berk-man, and the firm's controller, Steven B.

Smotrich. I Center helmsley Carlton House! I' 1 S9th St. I 680 Madison Ave. I Helmsley Windsor jg (Helmsley Park Lanel 100 W. 58th St.

I 36 Central Park S. I 230 Park Ave. v0 Helmsley Midtowne I 1 Helmsley Building HT 146 48th st 1 42dSt. $. 13 1 Helmsley Palace I i 455 Madison Ave.

Vim I 34th St The Helmsley Hoteil I I 212 E. 42dSt. I al Pennsylvania Plaza I Entire Block 23d St. 'Vr ft-. 350RfthAve.

I 14th St. Emplre State Building Washington A CM -1 MANHATTAN Vi-" City Hall yZVK pa jppii I 140 Broadway I Ifs, 51 Story Tower i 10 Hanover Square IV' wmmmmmmmmmmmmmi I 1 StCHV Tower Wajor properties owned by HryHejrmley part oorWp with 0thr.sir5J managed by Helmilay-Spear lnct. Helmsley Park Lane, the Helmsley Carlton House, and the Helmsley Palace, which could fetch up to $500 million alone. The couple's Harley Hotel division operates an additional 17 hotels and motor inns in 10 states. Aside from the hotels, though, "The Queen" doesn't personally stand guard over very many properties.

That's because the Helmsleys, who have amassed a $1.4 billion fortune, own very few buildings or plots of land outright, aside from their homes. Rather, they own pieces of buildings as partners in numerous real estate syndications. For example, Harry Helms-. ley is widely thought to own the Empire State Building, and does little to dispute that belief. In fact, Helmsley is just one partner in the Empire State Building along with major share owners Peter Malkin and the late Lawrence Wien.

Similarly, 1 See HELMSLEY Page 6 Charges of tax evasion against Harry and Leona Helmsley have yet to be settled, but speculators already are homing in on the Helmsley Empire and its real estate holdings. Offers have been coming in from some speculators, but the Helmsleys have turned them all down. "Everybody would be interested in buying their New York hotel properties, but the Helmsleys aren't interested in selling," said Stephen Brener, a New York hotel consultant. "Major off-shore investors, particularly Japanese investors, have approached them with huge of-fers but were told, unequivocally, no." The Helmsleys, once known as the First Couple of the New York real estate industry, operate six luxury hotels in stellar Manhattan lo-cations, including the MALCOLM MCKEANDAILY NEWS oofis of closed iCoreafi-owned bank in Feds readsiig By FRANKLIN FISHER day and turned over to the Federal Deposit Insurance Corporation, which will sell off the bank's assets to help pay its debts. "We won't know what the total debt of the bank is until the creditors come forward," said Doug Clark, an FDIC lion on deposit, in about 1,650 accounts, Clark said.

Of that, $25.8 million was insured and will be paid back from the FDIC insurance fund. However, about 45 of the accounts were uninsured, totaling $970,000. The bank consistantly engaged in "practices in violation i of- Jaw-ac couldn't cover in their accounts, but the bank covered the drafts anyway, said Clare Sykes, a spokeswoman for the state Banking Department. Because the bank located in the heart Manhattan's Korean business district served special ethnic needsr-the state banking, department had worked withWt- for months to get the problems corrected, Sykes said. Daily News Business Writer Federal officials yesterday were still poring over records of a small Korean-owned bank in Manhattan, shut down for doing business in an "unauthorized and unsafe manner." n' The Empire at 1255 ocqins tOiMte.ffiJjs( Some direc- -closing nianager who is supervising a staff of 40 Jooki ng a Jhe fcanjk recor ear-old bank had $26.8 mil ors wrote checks for amounts they.