Word: calhouns
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Dates: during 1970-1979
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...from banks with which his own bank had established correspondent relationships. The comptroller's report showed that Lance and his wife LaBelle got nearly 20 loans totaling close to $4 million from Georgia's Fulton National Bank between 1963 and 1975?much of the time when Lance headed the Calhoun First National Bank. In numerous documents related to these loans, the Fulton bank noted that "satisfactory balances are maintained by Calhoun National Bank," implying a direct connection between the loans and the interest-free deposits that Lance's bank had placed with the Fulton bank to establish a correspondent relationship...
...evidence," Heimann's report concluded, "tending to support the view that, but for the correspondent accounts, the loans would not have been made." Heimann noted, however, that such a quid pro quo is not of itself illegal. It must also be shown that the Fulton bank received benefits from Calhoun's interest-free deposit. In this case, Heimann found that Fulton's services to Lance's bank actually cost more than the revenues from the Calhoun money...
Potentially far more damaging to Lance, however, is an accusation brought against him by Bill Campbell, a former vice president of the Calhoun bank who pleaded guilty last year to having embezzled nearly $1 million from the bank. Now serving an eight-year prison sentence, Campbell has told investigators that "he [Lance] was part of it," meaning the embezzlement. Just how seriously the Senators take Campbell's charge is unclear. Campbell has refused to supply an affidavit, but has asked to appear before the committee. He has also promised to supply documentation of his charges?but by week...
...easygoing Campbell worked as a lineman for Southern Bell Telephone Co. and a tractor dealer, then joined the Calhoun bank in 1968. He rose to vice president in three years. But Campbell apparently found his $18,000 salary inadequate. Beginning in 1971, he began diverting bank funds to his own use, pumping the money mainly into a 460-acre Angus cattle ranch he bought near Calhoun. His main technique, curiously risky in such a small town, was to take out loans in the names of other people and even a local church He filed all the proper papers, then pocketed...
Campbell's embezzlement was discovered in a predictable way. After Lance left the Calhoun bank, the new president, Atkins Henderson, routinely called a local customer and asked about a loan the man had just made. "What loan?" the startled customer inquired. He had not asked for a loan, despite the papers on Henderson's desk. On July 31,1975, Henderson, Lance and Calhoun Bank Attorney J. Beverly Langford braced Campbell at his farm home; he readily admitted his thefts. Lance immediately notified...