Butcher Brothers

In 1976, Jacob F. “Jake” Butcher and his younger brother Cecil Hilque “C. H. Jr.” Butcher, Jr., created Tennessee and Kentucky banking operations worth almost $1 billion. Nine years later these high-living bankers were incarcerated following federal convictions related to various fraudulent practices in their banking empire.

With the exception of one credit life company, the brothers' holdings were held separately. They did fund their purchases similarly: When they could, the Butcher brothers financed their bank acquisitions by getting the seller to finance the purchase. When that was not possible, they borrowed the money from a larger bank. At their peak, the two brothers owned or controlled almost 40 banks with approximately $3 billion in assets.

The Butchers' banking empire began to crumble January 19, 1983 with ...