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on that decision, petitioner moved to have his conviction set
aside. In January 1988, the U.S. District Court for the Middle
District of Tennessee issued a memorandum opinion in which it
applied the McNally decision retroactively and held that
petitioner was entitled to have his mail fraud and conspiracy to
commit mail fraud convictions dismissed. The District Court,
however, left petitioner's conviction for violating the Hobbs Act
and conspiracy to violate the Hobbs Act, undisturbed.
Petitioner's Outstanding Oil and Gas Partnership Loans
In early 1976, petitioner called Ed Nelson (Nelson), the
president of Commerce Union Bank (Commerce Bank or the bank) to
discuss the possibility of financing an oil and gas limited
partnership interest (South Texas Drilling or the oil
partnership). On April 28, 1976, Commerce Bank lent petitioner
$20,000 to finance his acquisition of a 2.4-percent interest in
the oil partnership, with the partnership interest as collateral.
On June 24, 1976, after oil was discovered, Commerce Bank made
petitioner a second loan of $18,353 for the completion of the
wells.
In 1976, the wells produced in excess of 100 barrels a day,
but soon thereafter production rapidly declined to only 10 to 15
barrels a day because the formation was not sufficiently
permeable to let the oil flow through.
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