Jake Butcher
Encyclopedia
Jacob Franklin "Jake" Butcher (born in 1936) was a U.S.
banker and politician
who built a financial empire in East Tennessee
, was the Democratic Party nominee for governor of Tennessee in 1978 and the primary promoter of the 1982 World's Fair
in Knoxville, Tennessee
, and who lost his business and his personal fortune after he was found to have engaged in massive fraud
.
. His father, Cecil H. Butcher, Sr., was a general store
manager and bank president in Union County. After attending the University of Tennessee
and Hiwassee College
, Jake Butcher served in the United States Marine Corps
. He married the former Sonya Wilde in 1962.
. By 1982, UAB was responsible for over 50% of Knoxville's business loans and Butcher's personal net worth
was declared to be about $34 million. In the late 1970s, United American Bank built its 27-story headquarters, the Plaza Tower
, which remains Knoxville's tallest building. In the early 1980s, C. H. Butcher's City and County Bank began building the Riverview Tower
, which remains the city's second-tallest building.
in the primary
. After a bitter contest, Butcher earned the nomination in 1978, beating out former Nashville
mayor
Richard Fulton
and newcomer Bob Clement
. Butcher lost the general election later that year to Republican Lamar Alexander
.
Rumors circulated that Butcher would make another run for the governorship in 1982. However, he supported Knoxville Mayor Randy Tyree
, who defeated State Senator Anna Belle Clement O'Brien
for the Democratic nomination. Interestingly, the Knoxville Journal reported that Jake's brother C.H. supported Tyree's Republican opponent, sitting Governor Lamar Alexander. Governor Alexander won re-election handily.
During that same year, the 1982 World's Fair
opened in Knoxville, which Butcher and a group of fellow Knoxville business leaders had helped to attract. The fair was widely considered a success and brought in more than 11 million people over its six-month run. The World's Fair site is still in use today as a municipal park in downtown Knoxville. Adjacent to the main campus of the University of Tennessee, some of the World's Fair attractions are still standing and have been rehabilitated.
Also in 1982, there were rumors about Butcher's banking practices. Knoxville federal and state bank investigators had long suspected that Butcher was engaged in unlawful banking practices. On 1 November 1982, 180 federal bank regulators
from the Federal Deposit Insurance Corporation
simultaneously raided all of the Butcher brothers' 29 bank branches and offices, thereby preventing transfers of funds to cover their tracks. Bank records ultimately led investigators on a paper trail of illegal loans, forged
documents and various other forms of fraud
. The United American Bank collapsed on 14 February 1983. It was the fourth-largest bank failure in US history up to that time. Seven other Butcher-controlled banks, such as the Southern Industrial Banking Corporation, also became insolvent during the rest of 1983, and an additional three banks in 1984. The FDIC estimated that its losses in connection with the failed Butcher brother banks would total approximately $382.6 million. Later that year, it was learned that Butcher was also insolvent; his assets were listed at $11.9 million and his liabilities at $32.5 million.
term. He was parole
d in 1992. He now resides in the Atlanta suburb of Canton
, Georgia
. He reportedly has worked for a Toyota distributor and as a real estate developer. His assets were auction
ed off to satisfy his creditor
s.
C.H. Butcher, Jr., who also was sent to federal prison for bank fraud, was paroled in 1993 and died in 2002.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
banker and politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
who built a financial empire in East Tennessee
East Tennessee
East Tennessee is a name given to approximately the eastern third of the U.S. state of Tennessee, one of the three Grand Divisions of Tennessee defined in state law. East Tennessee consists of 33 counties, 30 located within the Eastern Time Zone and three counties in the Central Time Zone, namely...
, was the Democratic Party nominee for governor of Tennessee in 1978 and the primary promoter of the 1982 World's Fair
1982 World's Fair
The 1982 World's Fair, formally known as the Knoxville International Energy Exposition, was held in Knoxville, Tennessee, in the United States. The theme of the exposition was "Energy Turns the World."...
in Knoxville, Tennessee
Knoxville, Tennessee
Founded in 1786, Knoxville is the third-largest city in the U.S. state of Tennessee, U.S.A., behind Memphis and Nashville, and is the county seat of Knox County. It is the largest city in East Tennessee, and the second-largest city in the Appalachia region...
, and who lost his business and his personal fortune after he was found to have engaged in massive fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
.
Early life
Butcher was born in Union County, TennesseeTennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
. His father, Cecil H. Butcher, Sr., was a general store
General store
A general store, general merchandise store, or village shop is a rural or small town store that carries a general line of merchandise. It carries a broad selection of merchandise, sometimes in a small space, where people from the town and surrounding rural areas come to purchase all their general...
manager and bank president in Union County. After attending the University of Tennessee
University of Tennessee
The University of Tennessee is a public land-grant university headquartered at Knoxville, Tennessee, United States...
and Hiwassee College
Hiwassee College
Hiwassee College is a private, accredited college located in Madisonville, Tennessee, United States. Founded in 1849, the college offers associate degrees as well as four year degrees, The majority of its associate degree graduates go on to attend, and complete, four-year...
, Jake Butcher served in the United States Marine Corps
United States Marine Corps
The United States Marine Corps is a branch of the United States Armed Forces responsible for providing power projection from the sea, using the mobility of the United States Navy to deliver combined-arms task forces rapidly. It is one of seven uniformed services of the United States...
. He married the former Sonya Wilde in 1962.
Banking career
Having worked at their father's bank during their youth, Butcher and his younger brother C.H. Butcher, Jr. began buying stock in numerous Tennessee banks starting in 1968. By 1974, the Butcher brothers owned or controlled eight banks, and Jake Butcher's United American Bank controlled 39% of the banking reserves in Knoxville, TennesseeKnoxville, Tennessee
Founded in 1786, Knoxville is the third-largest city in the U.S. state of Tennessee, U.S.A., behind Memphis and Nashville, and is the county seat of Knox County. It is the largest city in East Tennessee, and the second-largest city in the Appalachia region...
. By 1982, UAB was responsible for over 50% of Knoxville's business loans and Butcher's personal net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
was declared to be about $34 million. In the late 1970s, United American Bank built its 27-story headquarters, the Plaza Tower
First Tennessee Plaza
The First Tennessee Plaza, or Plaza Tower, is an office high-rise located at 800 Gay Street in Knoxville, Tennessee, USA. Completed in 1978, the 27-story structure is Knoxville's tallest building and an iconic part of the city's skyline...
, which remains Knoxville's tallest building. In the early 1980s, C. H. Butcher's City and County Bank began building the Riverview Tower
Riverview Tower
The Riverview Tower is an office high-rise located at 900 Gay Street in Knoxville, Tennessee, USA. Completed in 1985, the 24-story structure is Knoxville's second-tallest building, and along with its sister building, the First Tennessee Plaza, anchors Knoxville's downtown office market...
, which remains the city's second-tallest building.
Public life
By the early 1970s, Jake Butcher became a topic of discussion in Tennessee political circles. In 1974, he sought the Democratic Party nomination for Governor of Tennessee, but he lost to Ray BlantonRay Blanton
Leonard Ray Blanton was the 44th Governor of Tennessee from 1975 to 1979. Blanton's administration was rife with corruption.-Early life and Congress:...
in the primary
Primary election
A primary election is an election in which party members or voters select candidates for a subsequent election. Primary elections are one means by which a political party nominates candidates for the next general election....
. After a bitter contest, Butcher earned the nomination in 1978, beating out former Nashville
Nashville, Tennessee
Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
mayor
Mayor
In many countries, a Mayor is the highest ranking officer in the municipal government of a town or a large urban city....
Richard Fulton
Richard Fulton
Richard Harmon "Dick" Fulton was a Democratic politician who served as a member of the Tennessee State Senate and of the United States House of Representatives, and the second mayor of the Metropolitan Government of Nashville and Davidson County.- Background :Fulton was educated as a youth in the...
and newcomer Bob Clement
Bob Clement
Robert Nelson "Bob" Clement is a Tennessee politician and a member of the Democratic Party.-Early life:Clement is the son of former Governor Frank G. Clement...
. Butcher lost the general election later that year to Republican Lamar Alexander
Lamar Alexander
Andrew Lamar Alexander is the senior United States Senator from Tennessee and Conference Chair of the Republican Party. He was previously the 45th Governor of Tennessee from 1979 to 1987, United States Secretary of Education from 1991 to 1993 under President George H. W...
.
Rumors circulated that Butcher would make another run for the governorship in 1982. However, he supported Knoxville Mayor Randy Tyree
Randy Tyree
Randall "Randy" Tyree is a Tennessee politician who served as mayor of Knoxville from 1976 to 1983 and was the Democratic candidate for Governor in 1982.-Biography:...
, who defeated State Senator Anna Belle Clement O'Brien
Anna Belle Clement O'Brien
Anna Belle Clement O'Brien was a Tennessee politician, nicknamed "the first lady of Tennessee politics." She served as the governor's chief of staff from 1963 to 1967, was a member of the Tennessee House of Representatives in the 89th General Assembly, from 1975 to 1977, and a Tennessee State...
for the Democratic nomination. Interestingly, the Knoxville Journal reported that Jake's brother C.H. supported Tyree's Republican opponent, sitting Governor Lamar Alexander. Governor Alexander won re-election handily.
During that same year, the 1982 World's Fair
1982 World's Fair
The 1982 World's Fair, formally known as the Knoxville International Energy Exposition, was held in Knoxville, Tennessee, in the United States. The theme of the exposition was "Energy Turns the World."...
opened in Knoxville, which Butcher and a group of fellow Knoxville business leaders had helped to attract. The fair was widely considered a success and brought in more than 11 million people over its six-month run. The World's Fair site is still in use today as a municipal park in downtown Knoxville. Adjacent to the main campus of the University of Tennessee, some of the World's Fair attractions are still standing and have been rehabilitated.
Also in 1982, there were rumors about Butcher's banking practices. Knoxville federal and state bank investigators had long suspected that Butcher was engaged in unlawful banking practices. On 1 November 1982, 180 federal bank regulators
Bank regulation
Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things...
from the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
simultaneously raided all of the Butcher brothers' 29 bank branches and offices, thereby preventing transfers of funds to cover their tracks. Bank records ultimately led investigators on a paper trail of illegal loans, forged
Forgery
Forgery is the process of making, adapting, or imitating objects, statistics, or documents with the intent to deceive. Copies, studio replicas, and reproductions are not considered forgeries, though they may later become forgeries through knowing and willful misrepresentations. Forging money or...
documents and various other forms of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
. The United American Bank collapsed on 14 February 1983. It was the fourth-largest bank failure in US history up to that time. Seven other Butcher-controlled banks, such as the Southern Industrial Banking Corporation, also became insolvent during the rest of 1983, and an additional three banks in 1984. The FDIC estimated that its losses in connection with the failed Butcher brother banks would total approximately $382.6 million. Later that year, it was learned that Butcher was also insolvent; his assets were listed at $11.9 million and his liabilities at $32.5 million.
Criminal conviction
Jake Butcher pled guilty to Federal charges of bank fraud in 1985 and was given a 20-year prisonPrison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...
term. He was parole
Parole
Parole may have different meanings depending on the field and judiciary system. All of the meanings originated from the French parole . Following its use in late-resurrected Anglo-French chivalric practice, the term became associated with the release of prisoners based on prisoners giving their...
d in 1992. He now resides in the Atlanta suburb of Canton
Canton, Georgia
Canton is a city in and the county seat of Cherokee County, Georgia, United States. As of the 2010 census, the city had a population of 22,958.-Geography:Canton is located at ....
, Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
. He reportedly has worked for a Toyota distributor and as a real estate developer. His assets were auction
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
ed off to satisfy his creditor
Creditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
s.
C.H. Butcher, Jr., who also was sent to federal prison for bank fraud, was paroled in 1993 and died in 2002.