Ranchlander National Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1916 |
| Defunct | 1982 |
| Fate | Bank failure due to fraud |
| Headquarters | Melvin , United States |
| Products | Banking services |
The Ranchlander National Bank was a financial institution based in Melvin, Texas, originally chartered in 1916. The bank ultimately failed in November 1982 following the discovery of fraudulent activities linked to its final de facto owner, Orrin Shaid, who was later convicted of bank fraud. Shaid received a prison sentence for crimes involving bank and mail fraud connected to Ranchlander and other Texas banks. The bank's last premises were situated at the intersection of US 87 and FM 2028, just north of Melvin.
Pre-1982 background
Initially established as the First State Bank of Melvin on June 14, 1916, the institution transitioned to national bank status by 1925. Control was gained by E. A. Baze in 1920, who then assumed the presidency in 1928. Between 1941 and 1946, deposits increased significantly from approximately $246,000 to over $1 million. A. Waldrep held the presidency from 1949 until he divested his ownership in 1967.
By the year 1970, Doyle Todd had taken on the role of chairman. In 1973, he spearheaded the development of "North Melvin" along US 87, which included the Ranchlander Center—a commercial complex housing the bank and other enterprises. Concurrently, the bank's name changed from First National Bank of Melvin to Ranchlander National Bank. This new facility opened in 1974 alongside a steakhouse and a Mobil gas station; the area was incorporated into town limits along with adjacent land. Although relocating away from Melvin’s central district—which was already facing decline due to infrastructure shifts—the bank remained one of Melvin's most lucrative businesses, representing half of the town’s tax base in 1973.
In 1981, ownership of Ranchlander changed hands when Todd sold it. Jean Moon from Dallas became president and CEO, overseeing both the bank and its associated restaurant operations from nearby Brady. Lynn Carruth Maree of Tyler was recorded as the principal shareholder; meanwhile, Todd was removed from his director position and excluded from management duties. Locally, Maree was noted for traveling with an individual regarded as a chauffeur.
As of September 30, 1982, Ranchlander held deposits totaling $4.124 million before federal authorities intervened to close it amid ongoing fraud inquiries.
1982 shutdown
On November 19, 1982, the Comptroller of the Currency declared Ranchlander National Bank insolvent and ordered its closure at precisely 10:10 am. Bank examiner David Baer reported that significant loan defaults combined with suspected fraudulent activities had eroded the bank’s capital reserves; Moon had disappeared, triggering further investigation. The closure dealt a major blow to Melvin, whose population had dwindled from 750 to roughly 300 residents. On November 22, the Federal Deposit Insurance Corporation (FDIC) reopened the institution to facilitate depositor reimbursements; many customers subsequently transferred their accounts to nearby banks in Brady or Eden. This event marked McCulloch County’s first bank failure since 1930. Additionally, the town’s sole restaurant ceased operations alongside the bank’s closure. Ranchlander was among only 34 U.S. commercial banks that failed during 1982.
Moon’s vanishing attracted national media attention, including coverage by The Washington Post. A December affidavit disclosed that although Maree appeared as principal stockholder, Orrin Shaid Jr., an East Texan with a prior fraud conviction, was the actual owner. Shaid faced charges for altering $1,000 certificates of deposit (CDs) into $100,000 denominations to secure $200,000 in financing from Chandler State Bank in Tyler for purchasing Ranchlander. Two days before the shutdown, Moon had alerted the FBI about these falsified CDs. Shaid had been convicted of bank fraud in 1972 and paroled in 1978; he owned an opulent estate near Tyler together with Maree and possessed multiple luxury automobiles.
Officials connected with Ranchlander were also implicated in efforts to acquire Texas broadcast licenses. After Shaid’s ownership became public knowledge, former bank president Roger W. Pipkin III was linked to Baron Radio Corporation’s attempt to acquire San Angelo radio station KBIL (92.9 FM), which Pipkin denied involvement with; ultimately, that application was withdrawn. Pipkin had also been utilized by Shaid in taking control of First State Bank of Wells.
Additional concerns emerged when Peter W. Dean—a partner alongside Shaid and others in Central Texas Factors (a company organized to purchase delinquent advertising receivables from KVEO-TV in Brownsville)—was found dead due to cyanide poisoning in December 1982. KVEO-TV initiated litigation against Central Texas Factors over revenue disputes; Dean had filed for bankruptcy protection against the station as well. Pipkin held shares in Sunrise Broadcasting, which sought to establish a television station in Tyler; Ludka’s wife served as president there.
Shaid’s trial commenced in April 1983 addressing fraudulent activities involving Ranchlander and three other Texas banks totaling more than $775,000; Interfirst Bank of Abilene held a 70% collateral interest in Ranchlander related to one fraudulent loan. Moon pleaded guilty to conspiracy for making false statements in exchange for testifying; she had initially fled after destroying documents but ultimately reported fraud to federal authorities. Pipkin admitted guilt for failing to report a felony offense. Shaid obtained fraudulent loans through various associates as well. After under four hours of jury deliberation, he was convicted on all nineteen counts of bank and mail fraud; sentencing occurred in June with a term of thirty-five years at United States Penitentiary, Terre Haute. Moon received a three-year suspended sentence.
During April’s trial proceedings, Commercial State Bank of Houston foreclosed on the restaurant property and listed it for sale. By month’s end, FDIC had disbursed over $3 million to reimburse 444 depositors while seeking dividends for creditors.
In 1984, U.S. district attorney Bob Wortham testified before Congress regarding the Shaid case—described by American Banker magazine as resembling "a dime-store novel." The collapse of Ranchlander featured prominently in a congressional report on financial institution misconduct that criticized inadequate oversight by the Office of the Comptroller of the Currency during the change-of-control process in 1981.