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The owners of Calumet farm in Kentucky, which produced more triple crown winners than any other horse farm in history, fraudulently borrowed $50 million plus interest of $15 million from the First City Bank in Houston, Texas and conspired with bank officers to obtain this fraudulent loan. Calumet Farm was bankrupt at the time of the loan and Calumet & bank official conspired to keep this information from loan officers. The bank official received bribes from the Calumet officials. Eventually, First City Bank collapsed, which was one of the largest bank collapses in history. The collapse was a major hit against the FDIC Insurance fund.
Several officers of First City bank were prosecuted in two separate trials (Operation Bank Collapse I & II). The Deputy chairman of First City received over 21 years to serve without the possibility of parole.
When the Calumet officers were unable to repay the loan, they allegedly devised a plan to kill their prized stallion, Alydar. Alydar, insured for $65 million, was the runner-up in all three races of the 1978 triple crown to Affirrmed. The officers at Calumet forced Alydar's groom to take a night off, and on this night Alydar had his leg broken & eventually was destroyed. The progeny of Alydar made more money than any other stallion's progeny in the history of thoroughbred horse racing.
The substitute groom was called before a Houston Grand Jury and perjured himself. He was prosecuted and found guilty. This portion of the investigation was titled Operation Bank Collapse III: The Case of the Substitute Groom.
The CEO & president, & the CFO & attorney, were indicted (Operation Bank Collapse IV) & convicted of conspiracy, bank fraud, & bank bribery in a Houston Federal Court. The jury was out less than one hour.
The investigation into the owners of Alydar was stopped by the Department of Justice, and no charges were ever filed against them.
Source: David McDermott