Arkansas Business' 25 Outlaws, Scoundrels & Posers (25th Anniversary)

by Arkansas Business Staff  on Monday, Mar. 23, 2009 12:00 am  

They were part of a line of about 25 people who were prosecuted in connection with the firm, known as Lasater & Co. when indictments began flowing in October 1986.

The high-profile case is as much remembered for speculation over who didn't get named and who received immunity from prosecution as those who did jail time.

Locke also was fighting allegations of bankruptcy fraud, and Collins was getting sanctioned by securities regulators.

Lasater, who had bought out Collins and Locke, sold the firm a few weeks ahead of the indictments for $15.5 million to William "Billy" McCord and Richard Gene Smith. The venture was renamed United Capital Corp.

7. Roxanne and David Hamilton
Young and smart, Roxanne and David Hamilton were cutting a swath through the Little Rock investment community on their way to the top. He made senior vice president at Dean Witter Reynolds in four years. She was a vice president in charge of trading hundreds of millions of dollars in securities at First Commercial Bank.

But the party was over in June 1986, when First Commercial Bank stumbled across a problem with a client's account. That began the unraveling of a complicated fraud scheme by the couple, who were using bank assets for their own trading activities.

How complicated? First Commercial claimed a $4 million loss at the time, but the Hamiltons' activities also generated lots of profit for the bank along the way as well. A final reckoning was an accountant's nightmare.

Roxanne Hamilton, 27 and destined to give birth to her first child in prison, was sentenced to 50 months, and David Hamilton, 29, was sentenced to 40 months for bank and wire fraud.

8. Lynn Lloyd
High-flying CPA Lynn Lloyd set a new Arkansas record for personal bankruptcy when he listed debts of $24 million in his Chapter 11 filing in November 1986. His money troubles were compounded when perjury and bankruptcy fraud crept aboard, for which he was convicted in December 1990 and sentenced to 41 months in prison.

At the time of his financial crash, Lloyd was majority owner of Little Rock's Savers Federal Savings & Loan when it became insolvent. His Lynxx Banking Corp., which secured loans to Pine Bluff's FirstSouth and was taken over by federal regulators, owned the $80 million Farmers & Merchants Bank of Rogers and the $60 million First National Bank of Bentonville.

Lloyd's Lambda International owned Little Rock Air Center, which was sold to Midcoast Aviation for $3.5 million. Lloyd Arms Inc. and Iver Johnson Arms of Jacksonville were two other Lloyd investments that were liquidated.

His storyline of lawyers, guns and money reminded us that life really does imitate art.



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