Leonard Ray Blanton and Betty Blanton - Page 5

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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                               
                  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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