File: 3

2. The Beebe Network - The Cast Of Characters and The History

Ben Barnes, former Texas Lt. Governor; business associate of Herman K Beebe, Walter Mischer and John Connally. Herman K. Beebe Sr., Louisiana financier with offices in Dallas, convicted felon and Mafia associate; many connections to the intelligence community; godfather of the dirty Texas S&L's; did nine months in Club Fed; Charles Hurwitz introduced Beebe to B G Wylie, half-brother of Carroll Kelly; funded start-up of Contra related Palmer NB

 Tom Benson,a partner of Stanley Rosenberg in Groos Bank(influenced by H K Beebe) and Bank of Leon Springs; a Beebe associate; partner with Peyton McKnight and Charles Hurwitz(?) in Culebra/1676, a Rosenberg boondoggle

 John Connally, former Texas governor;Connally's law firm, Vinson-Elkins had Walter Mischer as a client; Charles Keating worked on his 1980 Republican presidential race; he and his partner Ben Barnes, borrowed tens of millions of dollars from dirty S&L's; served on Hurwitz's Maxxam Inc's board of directors from 1988 until his death in 1993. Participated in several CIA related covert actions.

 Thomas Gaubert, big Democratic fundraiser from Dallas; former head of Independent American Savings, which purchased 20 branch offices from Hurwitz' USAT; owned a piece of Sandia Federal Savings in Albuquerque; head of Telecom; A right-wing flag waver.

 Joseph Grosz, Chicago mob associate; worked for Gouletas family; ran Southmark's San Jacinto Savings; director of Gaubert's Telecom.

Stefan Halper, co-founder with fellow George Bush supporter Harvey McLean of Palmer National Bank, which was financed by H K Beebe and funneled private donations to the Contras; former son-in-law of past CIA deputy director Ray Cline; helped set up legal defense fund for Oliver North.Peter Munk also an investor in Palmer NB

J B Haralson, former head of Mercury Savings and Ben Milan Savings,where he was fronting for his old associate George Aubin; old Surety Savings hand,which Hurwitz attempted buy in 1977;managing officer of two other Texas S&L's which that failed; partner of B G Wylie et al in the purchase of Brazaport S&L from Lloyd Bentsen.

Charles Hurwitz,controlled now defunct USAT, majority stockholder of Maxxam Inc; longtime friend of most Houston elite including John Connally; a Milken Insider; often accused of fraud and other security related schemes; knew H K Beebe.

Charles Keating, S&L looter; spawned by Carl Lindner; worked on John Connally's 1980 presidential campaign as Westcoast fundraiser; controlled Lincoln Savings and Loan (the first big deal Lincoln did was with Connally); Lincoln involved in a daisy chain with Larry Mizel's MDC Holdings, Silverado and San Jacinto; his chief pilot in 1979 was CIA operative Ken Qualls.

 Carroll Kelly, who epitomized his Kappa Sigma fraternity; owner of Continental Savings and associate of H K Beebe (I'm Beebe's man in Texas," he bragged to S&L regulators.)

 Ed McBirney, "Fast Eddie" from Dallas; former head of Sunbelt Savings; associate of H K Beebe, Jarrett Woods and George Aubin; attempted to buy branch offices from Hurwitz' USAT; funded Hurwitz associates including Rosenberg.

Peyton McKnight, powerful louisianan, an associate of Beebe and a partner with Charles Hurwitz, Stanley Rosenberg and Tom Benson in a Rosenberg deal.

Harvey McLean, Shreveport, Louisiana businessman and close associate of H K Beebe; owned Paris (Texas) Savings and Loan; co-founded Palmer National Bank with Stephan Halper and Beebe's money.

 Peter Munk, a Canadian businessman, investor in Palmer NB; an associate of H K Beebe; business partner with Adnan Khashoggi; an associate of John H Roberts Jr. and John P Holmes Jr. in Goldome FSB

Clint Murchison Sr. and Jr., Dallas oilmen and wheeler dealers; Sr. was involved in business in Haiti with a CIA operative; Jr purchased Mischer's interest in sawmills in Honduras; Jr was involved with a CIA operative in Libya and did business with H K Beebe and Adnan Khashoggi.

David Saks, business associate of Stanley Rosenberg; partner of Doyle Spruil, both convicted felons; borrowed from Beebe controlled S&L's

Doyle Spruil, business partner of David Saks and Stanley Rosenberg; a convicted felon; borrowed from Beebe controlled S&L's.

Beebe connections to Barnes-Connally, to Hurwitz, to S&L's, to Mafia

 CONNALLY-KEATING-LINDNER-BARNES-BEEBE

 (Source: References are in "Inside Job")

  Beebe starts American Motels, Inc. (AMI); invests in Holiday Inns. (231)

  Beebe & Barnes develop complex business association (232)

  Beebe controls Bossier Bank & Trust, Bossier City, CA

  Barnes invests in Holiday Inns 

  Barnes, then Lt. Gov. of TX, involved in Bank & stock fraud scandal. In '71 a grp of TX banks looted a network of businessmen who bought & sold stock in a business owned by Frank Sharp. (358)

Connally bribe to cover indictment led to indictment of Connally; acquited (368#6)

 Jul. Beebe & Barnes from banking and insurance assoc. by 1976 B/B control 19 banks & S&L's in TX & CA

1979 Lindner's American Financial Corp. (AFC); also a founding partner in AFC's law firm Keating, Muething & Klekamp

  Lee H. Henkel, a Republican, was Treasury Dept. & IRS Counsel in the Nixon Admin. Later a tax attorney and real estate developer in Atlanta

Jul. 02 SEC v. Keating, Muething & Klekamp a judgment against Lindner, Keating & Klekamp enjoins self-dealing in an Ohio bank subsidiary.

Keating buys Continental Homes of Phoenix, Inc. from Lindner & renames it American Continental Corp. (ACC)

Henkel & Keating are Connally for Presidents' East & West Coast financial chairs. Henkel is Keating's attorney.

  Oct. ACC buys Lincoln Savings with DBL issued junk bonds

  Lincoln makes $70mm loan to Connally on a land deal near Austin, TX and $134mm loan to Henkel; Connally defaulted leaving Lincoln (and not the taxpayers) holding a $70mm loss (Nation 11/19/90)

  Herman Beebe associate Ben Barnes in partnership with Connally borrows from 17 S&L's in 3 states ($40mm from Vernon S&L and some unknown amount from Credit Banc (where Barnes' son worked)

  ACC employed Mark Connally son of John Connally

Aug. Press reports Beebe & Marcelolo control Continental S&L (Houston). Fails in 1988.

Feb. 13 WSJ reports Lincoln S&L made at least $61.9million in loans to corporations & partnerships in which Lee Henkel had an interest

In mid-August 1987 the records of Southmark, San Jacinto SA, Strauss, Barnes, Connally and about 200 others were seized according to the Dallas Times Herald. Southmark had done about $90 million in business with Beebe who held 62% of its Series E Pfd according to Southmarks 10K85. Southmark bought Bebe's nursing homes and also owned 37% of Pratt Hotels. Beebe did business with Morris Shenker and also was related to many Contra figures. Southmark also purchased the Beebe built AMI tower in or before 1988. AMI had 17 subs and 14 affiliates.

  SEC v. MDC Holdings, MDC (has close ties with Silverado), is caught in shady deal with Lincoln S&L. Neal Bush is loaned $550m for a house

Connally elected to Maxxam BOD