Investors who trusted millions of US dollars to an ex-banker's investment decisions are hoping to get a share of their investments back from his estate. Mace David Howell Jr. was found dead last October at a Beverly Hills hotel, apparently after taking a suicidal overdose of painkillers.

Howell owed over 70 creditors, including more than a dozen prominent Memphis residents, Bank of America and the owner of the Dallas Cowboys, more than US$55 million they had invested in what now appears to be a well worked out investment scam.

Some of Howell's creditors were provided with letters of credit (L/Cs) that appear to partially protect their positions, but some very large investments and credits seem to given to the ex-banker on trust.

Certificate of deposit

Bank of America required Howell to buy an US$11.99 million certificate of deposit before it would issue a L/C guaranteeing a promissory note given to Dallas Cowboys owner Jerry Jones in August 2002. The certificate of deposit is the largest known asset in Howell's estate.

Jones' note, which promises 18 per cent interest, includes an irrevocable standby L/C from Bank of America guaranteeing payment if "M David Howell is in default of his payment obligation." There was apparently no similar L/C or certificate of deposit backing a US$5 million promissory note that Jones received from Howell in April last year.

Lawsuits

Bank of America has already sued Howell for over US$1.9 million for cheques honoured by the bank in October 2002 when Howell had assured his private bankers that he would be receiving a large wire transfer to cover the amounts. Bank of America has also begun foreclosure proceedings on one of Howell's homes, which was used to secure a mortgage and an equity line of credit totalling US$377,000.

Claims filed so far reveal that Howell also borrowed US$400,000 from Bank of America in September to purchase a condominium and owed an additional US$480,000 on various unsecured promissory notes and credit card accounts.

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