Jake Butcher
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Jacob Franklin "Jake" Butcher (born 1936 in Union County, Tennessee) was an American banker. Born in the Dotson's Creek section of Union County, Tennessee, Butcher's father was a general store manager and bank president. After attending the University of Tennessee and Hiwassee College, Butcher served in the United States Marine Corps. He married the former Sonya Wilde in 1962.
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[edit] Early life
Having worked at his father's bank during his youth, Butcher and his younger brother, Cecil Butcher, Jr. began buying stock in numerous Tennessee banks starting in 1968. By 1974, the brothers Butcher owned or controlled eight banks and his United American Bank controlled 39% of the banking reserves in Knoxville, Tennessee. 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.
[edit] Public life
By the early 70s, Jake Butcher became a topic of discussion in Tennessee political circles. In 1974, he sought the Democratic Party nomination for Governor of Tennessee, but lost to future Governor Leonard Ray Blanton. After a bitter contest, Butcher earned the nomination in 1978, beating out former Nashville mayor Richard Fulton and newcomer Bob Clement (son of former Tennessee Governor Frank G. Clement). Butcher lost the general election later that year to Republican Lamar Alexander. There were also rumors 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. Of note, Ms. O'Brien is a sister of former Governor Clement. Interestingly, the Knoxville Journal reported that Jake's brother C.H. supported Tyree's Republican opponent, sitting Governor Lamar Alexander. The Governor won re-election handly.
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. Though the fair was considered by many to have been a mis-managed flop, 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 other rumors--not about Butcher's political ambitions--but about his honesty. Federal and state bank investigators had long suspected that Butcher was engaged in unlawful banking practices. On 1 November 1982, dozens of Federal agents simultaneously raided all off Butcher's bank branches and offices, thereby preventing transfers of funds to cover his 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 U.S. History. Several other Butcher-controlled banks, such as the Southern Industrial Banking Corporation also became insolvent. 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.
[edit] Criminal conviction
Jake Butcher plead guilty to Federal charges of bank fraud in 1985 and was given a 20-year prison term. He was paroled in 1992, and since resettled in Georgia where he works for a Toyota distributor. His once-extensive fortune has long since been auctioned off to satisfy his creditors.
