Herman K. Beebe

Herman K. Beebe, from Louisiana, was a convicted felon and Mafia associate. He had many connections to the intelligence community and was considered godfather of the dirty Texas S&Ls. He initially started his career in the insurance business and eventually banking, specifically; Savings and Loan Banks. Herman Beebe played a key role in the Savings and Loan scandals. Houston Post reporter Pete Brewton [http://www.spartacus.schoolnet.co.uk/JFKbrewton.htm] linked Beebe to a dozen failed S & L's. Altogether, Herman Beebe controlled, directly or indirectly, at least 55 banks and 29 S & L's in eight states. What is particularly interesting about Beebe's participation in these banks and savings and loans is his unique background. Herman Beebe had served nine months in federal prison for bank fraud and had impeccable credentials as a financier for New Orleans-based organized crime figures, including Vincent and Carlos Marcello. [http://www.jailhurwitz.com/beebe.html]

The "Godfather" of Savings and Loans theft and his "Den Of Thieves"

It was thought that Harvey McLean Jr. funded the startup of Palmer National Bank. It was actually Herman K. Beebe Sr. close friend and business associate of McLean. It has been reported that Beebe had numerous connections to New Orleans Mafia boss Carlos Marcello, associations with Mafia families in New York and California, and links to the Teamsters. Marcello has extensive business ties with fellow Louisiana organized crime figure. Herman Beebe was involved in a scheme in the early 1970s to smuggle guns and explosives to anti-Castro Cubans operating in Mexico. [http://www.thirdworldtraveler.com/CIA/S&L_Scandal_CIA.html] , [http://www.skepticfiles.org/conspire/cia-s&ld.htm]

In 1983 Beebe loaned McLean $2.8 million from his Bossier Bank and Trust in Bossier City, La. McLean owned Paris Savings and Loan of Paris, Texas. The $2.8 million loan provided the majority of the money that was used to initially capitalize Palmer Bank. Palmer National Bank loaned money to individuals and organizations that were involved in covert aid to the Nicaraguan Contras. In February 1985 the National Endowment for the Preservation of Liberty (NEPL), a conservative foundation run by Iran-Contra figure Carl "Spitz" Channell, who, as a director of International Business Communications, became a principal contractor for the OPD (now-defunct Office for Public Diplomacy). Channell secured $650,000 from Palmer National to illegally purchase weapons for the Nicaraguan Contras. Channell was one of the few private citizens convicted of crimes in the Iran-Contra scandal. He was the first to plead guilty to illegal activities in the scandal, and was placed on two years' probation for illegally using NEPL to help Oliver North raise donations for military supplies for the Contras. The money went through NEPL's account at Palmer National to a Banking in Swiss bank account used by North for Contra funding and the secret arms deals with Iran. NEPL raised about $10 million for the Contras after Congress had banned such military aid. In addition, the National Conservative Political Action Committee(NCPAC) borrowed more than $400,000 from Palmer National, as did political action committees for Senator Bob Dole (R-KS.) and then-Rep.Jack Kemp (R-NY).

A 1985 report by the comptroller of the currency listed Palmer as one of 12 national banks that Beebe had possible influence or control over. Further, Beebe has been implicated in the failure of at least 12 savings and loans (including Vernon Savings in Dallas and Continental Savings in Houston). In April 1985, just after Beebe had been convicted of defrauding the Small Business Administration and two months before the Federal Deposit Insurance Corporation shut down Bossier, the $2.8 million loan from Bossier that established Palmer was transferred to San Jacinto Savings of Beaumont, Texas. Beebe pleaded guilty to fraud in connection with a loan at State Savings in Dallas and has twice been successfully prosecuted. [http://www.thirdworldtraveler.com/CIA/S&L_Scandal_CIA.html] , [http://www.skepticfiles.org/conspire/cia-s&ld.htm]

External reference links

*http://www.jailhurwitz.com/beebe.html - Jail Hurwitz Website
*http://www.thirdworldtraveler.com/CIA/S&L_Scandal_CIA.html - Third World Traveler website