Jake Butcher
Jacob Franklin Butcher | |
|---|---|
| Born | 8 May 1936 Maynardville, Tennessee, U.S. |
| Died | 19 July 2017 (aged 81) |
| Occupation(s) | Banker, politician |
| Years active | 1968–1983 |
| Known for | Banking empire in East Tennessee, 1978 Democratic gubernatorial candidate, advocate for the 1982 World's Fair in Knoxville, Tennessee |
Jacob Franklin Butcher (May 8, 1936 – July 19, 2017) was a prominent American banker and political figure who established a significant financial network throughout East Tennessee. He became the Democratic Party candidate for Tennessee governor in 1978. Butcher was a key advocate behind the 1982 World's Fair held in Knoxville, Tennessee, but his career and personal wealth collapsed following his involvement in bank fraud.
Early life and banking career
Originally from Maynardville, Tennessee, Butcher was the son of Cecil H. Butcher Sr., who managed a general store and served as a bank president. After studies at the University of Tennessee and Hiwassee College, he enlisted in the United States Marine Corps.
Beginning in 1968, Butcher and his brother C.H. Butcher Jr. began acquiring ownership in numerous banks across Tennessee. By 1974, they controlled eight institutions, with Jake Butcher’s United American Bank (UAB) holding a commanding 39% share of Knoxville’s banking reserves. By 1982, UAB was responsible for financing more than half of Knoxville’s commercial loans, and Jake Butcher’s personal fortune was estimated at $34 million. In the late 1970s, UAB developed the 27-story Plaza Tower, which stands as Knoxville’s tallest structure. Concurrently, C.H. Butcher's City and County Bank built the Riverview Tower, now recognized as the city’s second tallest building.
Public life
During the early 1970s, Jake Butcher emerged as a notable figure within Tennessee’s political arena. In 1974, he pursued the Democratic gubernatorial nomination but was defeated by Ray Blanton in the primary election. Four years later, in 1978, he secured the party’s nomination after overcoming former Nashville mayor Richard Fulton and Bob Clement; however, he was defeated in the general election by Republican Lamar Alexander.
Although speculation arose about a potential gubernatorial bid in 1982, Butcher instead supported Knoxville Mayor Randy Tyree, who won the Democratic nomination but ultimately lost to Alexander. That same year marked the debut of the 1982 World's Fair in Knoxville—an event that Butcher and local business leaders played a pivotal role in bringing to the city. The fair attracted over 11 million visitors during its six-month duration, with its site now serving as a public park near the University of Tennessee campus.
In 1982, accusations emerged concerning irregularities in Butcher’s banking operations. Federal and state authorities launched investigations into suspected illegal activities. On November 1, a coordinated raid involving 180 FDIC agents targeted all 29 bank branches owned by the Butcher brothers to prevent asset transfers. The inquiries uncovered unlawful loans, forged paperwork, and fraudulent conduct. United American Bank failed on February 14, 1983—marking one of the largest bank collapses in U.S. history at that time. Additionally, seven other banks under Butcher control along with Southern Industrial Banking Corporation became insolvent during 1983; three more failed in 1984. The FDIC reported total losses from these failures at approximately $382.6 million. Later that year, Butcher was declared bankrupt with liabilities totaling $32.5 million against $11.9 million in assets.
Criminal conviction
In 1985, Butcher admitted guilt to federal bank fraud charges and received a prison sentence of twenty years. He was granted parole in 1992 and subsequently resided in Canton, Georgia, a suburb of Atlanta. Following his release, he reportedly held positions with a Toyota distributor and engaged in real estate development ventures. His properties were sold off to repay creditors.
His brother C.H. Butcher Jr., convicted of state securities violations, was paroled in 1993 and passed away in 2002.
Personal life and death
In 1962, Butcher wed actress Sonya Wilde, and together they raised four children.
He passed away on July 19, 2017, at the age of 81.