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money was exchanged between LTE and McIntosh and Webb. According to McIntosh, the land transfers involved “no money transaction whatsoever.” He says that the deals were a clean exchange, made so that each party could own full interest in one piece of land rather than half-interest in two. A ttaway concurs. N JULY, 1969, the picture changed again. LTL was released from its $400,000 debt to Sharpstown. At the same time the corporation took out a $200,000 loan from National Bankers Life, again using the 14.91 acres as collateral. The same day LTE borrowed $300,000 from NBL, guaranteeing the loan with parcels B acre tract. The two corporations now held loans of $500,000 guaranteed with property pruchased for $350,000. At some point during the next couple of months, Attaway sold all of the stock in the two corporations to Nashwood Corporation, t he omnipresent Sharp-related holding company privately owned by John Osorio, Waggoner Carr, Joseph Novotny \(president of president of president of West Virginia Life Insurance Company prior to \(executive vice-president and director of NBL and former president and chairman of others. Attaway got $500,000 on the deal, $150,000 more than he had paid for the land which constituted the sole assets of the two corporations. On Sept. 9, 1969, LTE merged into LTL. The agreement of merger was signed by Thomas, Akins and Bennie Leuders, one 16 The Texas Observer of Attaway’s original partners. Two days later, on Sept. 11, LTL was sold to Roy T. Pearl, Jr., and his wife, Lou Dean. Pearl, a nursing home operator from Seagoville, was a director of Dallas Bank and Trust, the bank with which Akins and other figures in the stock fraud scandal were connected. Pearl financed the purchase with a $652,000 loan from National Bankers Life. The Security and Exchange Commission maintains that Nashwood made a profit of more than $82,000 in the sale of LTL to Pearl. Nashwood is listed on no record or deed; its name appears on no document related to the land, the corporation, or the transaction. But its role was referred to more than once in the depositions taken by the SEC on the stock fraud scandal. Consider, for example, the following piece of Waggoner Carr’s testimony: Q: Do you know whether or not Nashwood, on or about September 16, 1969, handled the sale of a piece of property known as the Lake Travis Lodges? Carr: I did not know at the time that the event took place. I do recall receiving the information concerning it after it took place. \(The examiner asked Carr if he knew Q: Was it Mr. Jesse James, the state treasurer of Texas? Carr: I cannot say whether he was or not. In my mind he was, but you asked me who was, and I tell you I can’t say. I don’t know. I haven’t seen the records. Q: Do you know if Nashwood made a profit on the sale of the Lake Travis Lodges? Carr: I heard they did, yes. JOHN OSORIO, who has been indicted by a Travis County grand jury for falsifying insurance records related to the stock fraud scandal, also seemed to know something about Nashwood’s role in the sale of LTL to Pearl. He said that the $82,000-plus went, in part, to himself, Carr and Akins. Most of it was deposited in Nashwood’s account. According to NBL’s receivership report, “the Company’s file was void of any legal documents showing how the properties were conveyed to Roy T. Pearl from Lake Travis Lodges and Lake Travis Enterprises.” Apparently some care was taken to hide Nashwood’s role in the sale. But this was not yet the end of the financial machinations concerning the Lake Travis property. The day the $652,000 note was issued to Pearl, NBL sold a $ 1 5 2,00 0 participation loan to Sharpstown. NBL bought it back on June 20, 1970, resold it to Sharpstown on July 24, 1970, and repurchased it on Aug. 5, 1970. On Aug. 11, 1970, the entire $652,000 loan to Pearl was transferred to Community Savings and Loan of Fredericksburg the bank owned by LBJ’s business cronies, Jake Jacobsen and Ray Cowan, who have already been connected to other Sharp-related activities \(Ohs., Nov. promissory note, and took out from Community Savings and Loan another for $655,000. Meanwhile, NBL agreed to repurchase the loan from Community Savings and Loan on or before Sept. 1, 1972. NBL folded soon after that agreement was made. Pearl, who seems to have been the fall-guy in the deal, also went bankrupt and was forced to default on the $655,000 note. Consequently, Fredericksburg Community Savings and Loan took over the property. It then proceeded to buy the earlier this year. Jesse James sold his land to Attaway, a business associate of Frank Sharp’s, a year before the now infamous banking bill passed the Texas Legislature. The purchase was financed by Sharpstown and, later, NBL. It was sold to Nashwood, which made a hefty profit in handing on to Pearl, who paid almost double what James said he was paid for the property the year before. “I sold it too cheap,” Jesse complained. He angrily told the Observer that he does not know what happened to the land after he got rid of it, but, in the next breath, he said that everyone made a profit on the deals except himself. The SEC wanted to know more about these complex land transactions, but they found defendants like Waggoner Carr and Frank Sharp less than eager to discuss them. When the SEC asked Sharp what he knew about the Lake Travis deal, he declined to answer on the advice of his attorney. IDialogue The Texas government is suffering from a lack of confidence as a result of the stock fraud scandal and bribery indictments pending against certain members of the Texas Legislature. I believe that it would help restore the confidence of the voters if these government officials involved would voluntarily relinquish their positions. However, if they will not relinquish their offices, I feel it is the duty of the rest of the Texas Legislature to impeach these so-called public servants. Cecil R. Baxter, 825 Bedford Euless Rd. #144., Hurst, Tex. 76053.