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Show Seven Appear in District Court on Charges of Unpaid Bank Loans Wayne T. Blonquist, Howard Christensen, Mercury Mines, Inc., T. O'Dwyer, 0. A. Tatro, and Desmond Shields claimed they did not receive any consideration consid-eration with regard to subject loans, that they did not authorize auth-orize the defendant or the Bank to use their notes and that they should not be required to pay their said notes. THE FDIC B DEMANDING a judgment in the amount of $200,000.00, together with interest from August 25, 1969, and court costs. Approximately 41 jurors reported re-ported to the court house for duty selection Wednesday, Following Fol-lowing the jury selection the' formal trial begins. Other cases heard in the Summit Sum-mit court this week involved charges of contributing to the delinquency of minors against James Hinmon, Salt Lake City; Richard Winter, Kearns; and Danny Martin, Taylorsville; One Karaas youth was charged with auto theft and two other Kamas youths with grand lar-cency. lar-cency. An Ogden youth appeared on a driving while intoxicated charge. CHARGES FILED by the Federal Fed-eral Deposit Insurance Corp. with regard to questionable circumstances cir-cumstances on obtaining loans totaling $25 thousand each were being heard in Summit County District Court Wednesday. The court proceedings opened with selection of jury members Wednesday morning. Filing of the charges by the FDIC stems from the filing of fourteen counts totaling more than five million dollars which the federal agency originally filed against Robert A. Williams, Wil-liams, head of the First National Bank of Coalville prior to its closing on October 3, 1969. THOSE WHO ARE named as defendants are: Norman Hays; Wayne T. Blonquist; Howard Christensen; Mercury Mines, Inc.; T. O'Dwyer; Desmond L. Shield; and O. A. Tatro. Earlier reports on the FDIC charges indicate that on August 25, 1969 the total $200,000.00 sum of the notes was used to debit the checking account of First Federal Corporation at the Bank in Coalville. Earlier charges alleged that the loans were not entered on the liability ledger sheet of The First National Bank of Coalville. FOUR OF THE LOANS were unsecured. Three others were secured by speculative mining stocks. The Mercury Mines, Inc. loan was secured by an unperfected chattel mortgage on mill equipment equip-ment (no serial numbers) and by an assignment from Mercury Mer-cury Mines, Inc. to Robert A. Williams. Escrow Agent for 60 of the gross proceeds from the sale of Mercury from any and all Mercury Mining and Mineral Claims. |
