Democrats are sometimes the big VILLAINS TOO. Remember Jake Butcher and the mighty United American Bank (UAB) and Southern Industrial Banking Corporation (SIBC). We are coming up on the 23rd anniversary of the collapse of that empire on February 14, 1983. I worked for two years for the Federal Deposit Insurance Corporation (1985-1987) and would like to BLOG on how I held the Mighty Butcher Empire at Bay during the late 1970's by using my brain and a good lawyer, Michael Ellis. Having borrowed $1000 from the Halls Branch of SIBC where an old friend Steve Hodges was managing a branch office I had defaulted on the loan. Actually it was through recommendation of my sister Betsy that Steve had gotten the job but let's not get into that.
47-14-104. Single payment loans under the Tennessee Consumer Protection Act of 1977. (a) Notwithstanding the provisions of this or other statutes, for all single payment loans for a term of one (1) year or less, in an original principal amount of one thousand dollars ($1,000) or less: (1) The maximum effective rate of interest shall be that rate fixed, from time to time, as fair and reasonable, by rule adopted by the commissioner of financial institutions, but in no event to exceed ten percent (10%) per annum; and (2) A loan charge may be exacted at a rate not to exceed seven dollars and fifty cents ($7.50) on the first one hundred dollars ($100) of principal and one dollar and fifty cents ($1.50) per one hundred dollars ($100) of principal thereafter, up to a maximum of twenty dollars ($20.00) for any loan; provided, that no such loan charge may be assessed upon the renewal of any such loan.(b) The commissioner shall adopt reasonable rules and regulations to prevent abuses in the collection of interest, loan charges, and any other charges made in connection with or in relation to such single payment loans. |
Marana is sometimes known as the home of Air America - Marana was the principal continental United States maintenance base for Southeast Asia CIA operations including Air America and Continental Air Services. Today, Evergreen Aircraft Maintenance Facility and Silverbell Army Heliport make use of the site, with the Western Army National Guard Aviation Training Site (WAATS) and other numerous National Guard units located inside SAHP. The WAATS and is used principally for all ARNG AH-64 Apache Attack Helicopter training by the 'Gunfighter University'. It is also extensively used by the British Army for 'Conversion To Role' training for Apache combat operations in Afghanistan.
Pinal Airpark also hosts the U.S. Special Operations Command's Parachute Training and Testing Facility.
Well, back to the great UAB-SIBC fiasco. I had discovered in the Bert Vincent Memorial Library, Lincoln
Memorial University, a clause in the Tennessee State Code that
said if SIBC was actually a banking entity in the State of
Tennessee and filed under Charter as such that they, according to the
Tennessee Code, were not allowed to charge a borrow over 10% interest
on a revolving interest loan under something called the Tennessee
State Usury (Usury-biblical) Laws and Interest Rates
Regulation. I was attending Lincoln Memorial University and
worked on the work study program both in the newly built Lincoln Museum
and finally in the Bert Vincent Memorial Library. I was a student there
1976-1978 graduating with a degree in Business Administration and am now a graduate student there (2010). It seems
that SIBC was charging me in excess of 18% on the revolving
loan. I
gathered all the information together and proceeded to search for a
honest lawyer. I found Michael Ellis,
on suggestion of someone whose
name will remain anonymous. Michael made one phone call and charged me
$15.00 and said that if they bothered me again he would take the case
on consignment. They never bothered me again. (I have saved all the
paperwork, copies of Tennessee Code, letters between SIBC and myself
and from Mike Ellis and will scan those for you). Michael where ever
you are I thank you my friend and thanks for referring to me as a "Gumshoe
Detective".
Now all this happened before I graduated from LMU in August of
1978. The boat I bought from Bob
Costanzo of Middlesboro, now a
Judge.
He and his family were acquaintances of mine from back in High
School. The boat ran good for a short period before it
malfunctioned. The letter above shows the intention of SIBC to
reposes the boat. I was asked about this loan and what I knew
about the Southern Industrial organization before I started work for
the Federal Deposit Insurance Corporation in 1985 and explained to them
the circumstances. They seemed to take my side.
I was later told of the board meetings held for managers and staff
of UAB and SIBC in the PlazaTower where large amounts of money were wheeled around in grocery carts
and many other events that I will not go into here. My sister
followed Jake Butcher on the campaign trail when he ran for Governor
against Lamar
Alexander in 1972. She was working for the SIBC on
Clinch Ave. and her and a friend Kathy Woodson of Lafollete along with
Langston Hill were all strong Butcher followers. I attended one
of those rallies and was invited to a gathering after but did not attend.
As we all know Jake did not win the 1972 election for Governor and
then the rest of the story we can say is history.
Although I have tried all my life to be honest I have to say there were a couple of times I have resorted to cheating on tests. One such time was soon after I returned from Washington, D.C. in 1973. I had been working for the U.S. Postal Department during Christmas and was trying to attend the University of Tennessee but was having a hard time finding suitable employment. I talked to a friend; Doyle Whitaker who asked me to come on board with a company called American Centennial Corporation (continued below) .
Probably had nothing to do with this Delaware company called American Centennial Insurance Corporation. Maybe the Butcher Company was American Centennial Corporation and the other company was American Centennial Insurance Corporation but I find it funny that both became guilty of FRAUD. Using the 200th birthday of our country for illegal purposes will catch up with you. American Centennial Insurance Corporation had large holdings in the Grand Cayman Islands and from 1983 with assets of 0 went to assets of over $40,000,000.00, not only that but this company's parent group, White Mountain Group, had assets of $19,418,000,000.00(continued from above) This 1976-1977 company was going to be the first Insurance company in eleven years to apply for and receive a Charter to sell stock at public offerings in the State of Tennessee. The primary stockholders were of course none other than Jake and C.H. Butcher, Jr.
Also See Incorporated: 1929 as Beneficial Finance Corporation Beneficial's two primary insurers, the Central National Life Insurance Company of Omaha and American Centennial Insurance Co., offered a wide range of coverage from life to property. Beneficial entered reinsurance in 1977, lured by potentially quick profits from high interest rates.
By its own admission, Beneficial had known very little about reinsurance when it entered the field in 1977, so it hired ten managing general agents to handle it through American Centennial Insurance. But one of the agents defrauded the company, diverting millions of dollars in premiums while distributing the risk to fraudulent or insolvent reinsurers. Two other agents, Beneficial later claimed, grossly under-reported losses likely to be claimed from programs they wrote.
The sale of American Centennial Insurance was complicated by regulatory hurdles stemming from the insurer's poor financial condition. The deal nevertheless went through, leaving Beneficial free to pursue its core businesses. By 1990 the firm was the third-largest issuer of second mortgages in the United States and had $8.4 billion in assets. It charged 14 percent interest for second mortgages and 23 percent for unsecured personal loans. Beneficial also was expanding into Europe, opening offices in Dresden and Leipzig, both in the former East Germany.
(SEC v. American Centennial Corporation, et al., M.D. Tennessee,Civil Action No. 77-3236 NA CV) • (LR-8225)2 NEWS DIGEST, December 27, 1977I am afraid the above never happened, or did it? I understand that ACC could still be solvent and the injuction above was only because of the dealings of Mr. Leonard M. Hurst. Further investigation will be required.AMERICAN CENTENNIAL CORPORATION AND LEONARD M. HURST ENJOINED
The Atlanta Regional Office announced that on November 29 the Federal District Court in Nashville, Tennessee issued an order of permanent injunction against American Centennial Corporation, a Florida insurance holding corporation, and on December I against Leonard M. Hurst of Knoxville, Tennessee formerly of Orlando, Florida. The orders enjoin them from further violations of the antifraud provisions of the securities laws in the offer and sale of common stock in American Centennial Corporation. The defen-dants consented to the requested relief without admitting or denying the allegationsof the complaint.
But still, I along with many others such as Doyle Whitaker and University of Tennessee basketball players Lloyd Richardson of Rogersville and Larry Robinson, the first black to receive a scholarship to play basketball at the University of Tennessee,got suckered into believing and then selling the stock. One of the "perks" for selling the most stock each week was for the top two
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I worked for the F.D.I.C. for two years July 1985 - July 1987 and during that time was privy to all the incoming mail. It had to be opened and sorted to each department and that was my responsibility. One letter I will never forget and that was the autopsy report for George W. Ridenhour, Jr. after his "apparent", at the time, suicide. The F.D.I.C. was very sceptical that it was lawyer Ridenhour as they were still search for millions of dollars of unaccounted for fortune either buried in Union County or in some Grand Cayman or Swiss Bank account.
Some articles I found online of interest:
C.H. Butcher Jr. Indicted, Jailed On Fraud Charges -STEVE BAKER , Associated Press AP News Archive Feb. 6, 1986 1:49 AM ET
Closing Arguments Set In Butcher Fraud Trial - STEVE BAKER , Associated Press AP News Archive Aug. 24, 1986 12:35 PM ET
Former Tennessee Banker Indicted on Tax Fraud - MERRILL HARTSON , Associated Press AP News Archive Mar. 6, 1985 12:43 PM ET
Attorney Who Committed Suicide Was Victim of 'Guilt By Association,' Lawyer Says AP , Associated Press AP News Archive Feb. 3, 1986 10:51 AM ET
Prosecutor: SIBC Deception Cost Savings, Defense: No One Intentionally Misled - MARGARET HABERMAN , Associated Press AP News Archive Jul. 22, 1986 8:30 AM ET
Memories of United American Bank Failing
Butcher Family Ties: Banking, Money, Indictment, Trial March 9, 1987|By Cox News Service
IN RE SOUTHERN INDUS. BANKING CORP. United States Bankruptcy Court, E.D. Tennessee. August 19, 1993.
Well, what the heck after all is said and done we were able to enjoy the pagentry of the 1982 World's Fair because of Jake Butcher and so many others that worked tirelessly to see that it happened. You might enjoy this exclusive footage that I received. Over 6 hours of professionaly recorded video of The 1982 World's Fair, Knoxville, Tennessee. You decide for yourself if the effort was worth it, I think it was.
As they flourish I survive. Ah, to go back and do it again.
One thing about the Payne family, they sure know how to care for one another. Just like the Walton's. Sure. Al George Payne, Steven Payne, Betty Payne and Jimmy John Duncan, Sr. My father traveled to Washington during the later part of 1975 to see if he could sway the good Congressman to help him with his Rural Letter Carrier's grievance, among other things. The Robert and Al Payne family were close through the years, up until 1986 when my father passed away.