Editing Sharpstown scandal (section)

==Background==
The scandal revolved around Houston banker and insurance company manager [[Frank Sharp (land developer)|Frank Sharp]] and his companies, the Sharpstown State Bank and the National Bankers Life Insurance Corporation (NBL). Sharp granted $600,000 in loans from his bank to state officials who would, in turn, purchase stock in National Bankers Life, to be resold later at a huge profit, after Sharp artificially inflated the company's value. One of the victims of the scandal, [[Strake Jesuit College Preparatory]], lost $6,000,000 and a portion of the school's land following the advice of Sharp. The school bought the resold stock at $20–$26 a share.<ref>[https://web.archive.org/web/20070930084622/http://www.time.com/time/magazine/article/0,9171,904706,00.html The Founder], Time Magazine, February 15, 1971.</ref> Using the stock as encouragement, Sharp pushed for legislation that would benefit National Bankers Life, increasing the value of the company to its investors—the very people who would push the legislation through.

The scheme succeeded in generating profits for the investors on the order of a quarter of a million dollars, but the [[U.S. Securities and Exchange Commission]] (SEC) stepped in early in 1971, filing criminal and civil charges against former state attorney general [[Waggoner Carr]] (D), former state insurance commissioner [[John Osorio]], Frank Sharp, and a number of others. By the middle of 1971, anyone in the state government who might have been connected to Sharp was heavily pressured politically. Allegations of [[bribery]] to push the favorable bills through the government spread to House Speaker [[Gus Franklin Mutscher|Gus Mutscher Jr.]] (D), State Representative [https://lrl.texas.gov/legeleaders/members/memberdisplay.cfm?memberID=777 Thomas Clifton “Tommy” Shannon] (D), state [[United States Democratic Party|Democratic]] chairman and state banking board member [[Elmer Baum]], Lieutenant Governor [[Ben Barnes (Texas politician)|Ben Barnes]] (D), and even Governor [[Preston Smith (governor)|Preston Smith]] (D).