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")



1960's



	Beebe starts American Motels, Inc. (AMI);

	 invests in Holiday Inns. (231)



1970's



	Beebe & Barnes develop complex business 

	 association (232)



	Beebe controls Bossier Bank & Trust, Bossier 

	 City, CA



	Barnes invests in Holiday Inns



1972



	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)



1973



Jul.	Beebe & Barnes from banking and insurance assoc.

	 by 1976 B/B control 19 banks & S&L's in TX & CA



Prior to   Ch. Keating a ExecVP & Director of Carl 

 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 Treasurary Dept.

	 & IRS Counsel in the Nixam Admin. Later a tax

	 attorney and real estate developer in Atlanta





1979



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)



1980



	Henkel & Keating are `Connally for

	 Presidents' East & West Coast financial

	 chairs.  Henkel is Keating's attorney.



1983



	Oct.	ACC buys Lincoln Savings with DBL issued

	 junk bonds



1984



	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)



l986       





           Herman Beebe associate Ben Barnes in partner-

	 ship 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.



1987



Feb. 13	WSJ reports Lincoln S&L made at least $61.9mm

 	in loans to corporations & partnerships in which

	Lee Henkel had an interest





In mid-August 1987 the records of 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.





1988



	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