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National Bankers Life Insurance Co. - Involved in Famous Scandal - 1967-72 dated Stock Certificate - Major Fraud Case

Inv# IS1077   Stock
State(s): Texas
Years: 1967-1972

Stock in black and gold. Dallas, Texas. Similar to IS1078. The Sharpstown scandal was a stock fraud scandal in the state of Texas in 1971 and 1972 involving the highest levels of the state government. The name came from the involvement of the Sharpstown area of Houston. The scandal revolved around Houston banker and insurance company manager Frank Sharp and his companies, the Sharpstown State Bank and the National Bankers Life Insurance Corporation (NBL). Sharp granted $600,000 in loans from his bank to state officials who would, in turn, purchase stock in National Bankers Life, to be resold later at a huge profit, after Sharp artificially inflated the company's value. One of the victims of the scandal, Strake Jesuit College Preparatory, lost $6,000,000 and a portion of the school's land following the advice of Sharp. The school bought the resold stock at $20–$26 a share. Using the stock as encouragement, Sharp pushed for legislation that would benefit National Bankers Life, increasing the value of the company to its investors—the very people who would push the legislation through.

The scheme succeeded in generating profits for the investors on the order of a quarter of a million dollars, but the U.S. Securities and Exchange Commission (SEC) stepped in early in 1971, filing criminal and civil charges against former state attorney general Waggoner Carr (D), former state insurance commissioner John Osorio, Frank Sharp, and a number of others. By the middle of 1971, anyone in the state government who might have been connected to Sharp was heavily pressured politically. Allegations of bribery to push the favorable bills through the government spread to House Speaker Gus Mutscher Jr. (D), State Representative Thomas Clifton “Tommy” Shannon (D), state Democratic chairman and state banking board member Elmer Baum, Lieutenant Governor Ben Barnes (D), and even Governor Preston Smith (D). Read more at https://en.wikipedia.org/wiki/Sharpstown_scandal

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Condition: Excellent

A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.

Item ordered may not be exact piece shown. All original and authentic.
Price: $10.00