Newspaper Page Text
Page 8
— Griffin Daily News Friday, Novembers 1977
3 businessmen
convicted in fraud
ATLANTA (AP) - Three At
lanta businessmen have been
convicted in connection with an
alleged scheme that forced a
Chattanooga, Tenn., surety
company to pay off more than
$1 million in bad loans.
A U.S. District Court jury de
liberated more than a day be
fore convicting Harry L. Walsh,
Stanley E. Kreimer and and
Charles L. Lewis on Thursday
of mail fraud, fraud and con
spiracy.
Lewis was convicted on four
counts in the indictment, and
Walsh and Kreimer each were
convicted on six counts.
Walsh and Kreimer are the
former owners of Mount Vernon
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Surety Co. and Mount Vernon
Agency in Atlanta. Lewis was
one of their associates.
According to the indictment,
the Mount Vernon Agency had a
contract with Interstate Fire
Insurance Co. of Chattanooga to
sell Interstate’s surety bonds.
Surety bonds are financial
guarantees used as collateral
for loans.
In 1971, Kreimer and Walsh
wrote out bonds for a number of
persons who used them to
borrow money, the indictment
said. But prosecutors contended
that the borrowers had agreed
to turn over the loans to Krei
mer and Walsh. They said
Lewis set up the loans and col
lected a fee for his services.
Kreimer and Walsh became
responsible for paying off the
loans, and, when they failed to
meet the obligation, the surety
company was forced to pay off
the guaranteed amounts, prose
cutors said.
One other defendant in the
case, J. Gary Pyle, earlier
pleaded guilty to one count of
the indictment in return for a
government recommendation
of probation. Five other persons
were dismissed as defendants
or found innocent by directed
verdict.
U.S. Dist. Court Judge
Charles A. Moye set Jan. 10 for
sentencing.
Bill Strickland, right, was named as interim state revenue commissioner by governor
George Busbee at a press conference in Atlanta Thursday. (AP)
Busbee rejects dumping
no fault insurance
ATLANTA (AP) — Georgia’s
mandatory no-fault insurance
law, criticized by some legisla
tors as ineffective, should be
upgraded but not discarded,
Gov. George Busbee said
Thursday.
“I think we should make the
necessary amendments to up
grade our law ... (but) it would
be a mistake at this time to do
away with no-fault, and I could
not support it at this time,’’
Busbee said at his weekly news
conference.
The governor said legislators
should attempt to “plug any
loopholes and correct any tech
nical deficiencies in the law.”
Busbee also announced the
appointment of W.E. "Bill”
Strickland as interim head of
the state Revenue Department.
Strickland, 50, an employee of
the Revenue Department for 31
years, currently is serving as
administrative deputy com
missioner. He succeeds Nick
Chilivis, who resigned to join an
Atlanta law firm.
The governor said he expects
to appoint a permanent revenue
commissioner after next year’s
legislature adjourns.
Busbee also said he plans to
seek pay raises next year for
top state officials. He pointed
out that Strickland would have
to take a pay cut of about SI,OOO
because his salary, set by the
merit system, exceeds the
statutory provision for the reve
nue commissioner’s pay.
Another recent appointee, Dr.
Charles McDaniel, the state
school superintendent, took a
$5,000 pay cut, Busbee said.
On another matter, Busbee
said he will wait until after he
has studied the safety record to
decide whether he will support
an extension of the law allowing
the movement of 14-footwide
mobile homes on Georgia high
ways.
Asked if he would support an
extension of the deadline for
states to ratify the Equal Rights
Amendment, Busbee said only
that he has “some hesitation”
about accepting a legal opinion
that the deadline can be ex
tended.
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Crime lab needs more work
AUGUSTA, Ga. (AP) - The
newly opened crime laboratory
in Augusta is busy with an av
erage of 160 cases a month, but
its director is still disappointed.
"The biggest problem is that
many people even in
law enforcement agencies
Now—More Than Ever —It’s
'w
Time For New Leadership JI
ELECT
Jim Goolsby
County Commissioner
Nov. 8 ■!<
New Ideas For A Changing Community m4f.uhc.ia4.
don’t know we exist,” said Mike
Sheppo, who heads the crime
lab which opened in May and
serves 16 surrounding counties.
“We are trying to determine
what areas we are not receiving
cases from by getting in touch
with the various law en-
forcement agencies,” he said.
Sheppo said many of the po
lice agencies still send then
cases to the main state crime
lab in Altanta “and others just
don’t know we are here.”
Augusta’s lab is one of five in
the state.