Skip to comments.TN US SENATE: Clement, Alexander trade accusations about roles in Butcher bank failures
Posted on 10/02/2002 6:08:26 AM PDT by GailAEdited on 05/07/2004 9:20:08 PM PDT by Jim Robinson. [history]
A notorious bank fraud case provided more ammunition yesterday for shots fired between Lamar Alexander and Bob Clement in the U.S. Senate race.
In the latest round, the Clement campaign accused Alexander of taking $50,000 in campaign contributions raised by the late C.H. Butcher Jr. and later lobbying federal regulators to preserve the banking empire Butcher and his brother, Jake, had built. The Butchers went to prison for bank fraud after federal and state regulators padlocked their failing banks in 1983.
(Excerpt) Read more at tennessean.com ...
Investigation uncovered fraud by Butchers
The banking empire built by Jake Butcher and his brother, the late C. H. Butcher, Jr., collapsed in 1983 as federal investigators probed suspicious practices at their banks.
That probe uncovered unsecured loans to friends and family, a ''shell game'' of moving money between various banks ahead of bank regulators and other misdeeds, leading to the Butchers' eventual indictments.
The brothers both got 20-year prison sentences in the mid-1980s on various bank fraud, money laundering and income tax fraud charges.
Jake Butcher ran unsuccessfully for governor twice, losing in 1978 to Lamar Alexander. His brother raised money for Alexander's bid for a second term in 1982, while Jake Butcher raised money and made bank loans for Alexander's Democratic opponent, Knoxville Mayor Randy Tyree.