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UNITED STATES v. EVERETT MONTE CRISTO HOTEL, INC.

Nos. 73-2981, 73-2987, 73-3019, 73-3041 and 73-3113.

524 F.2d 127 (1975)

UNITED STATES of America, Plaintiff-Respondent, v. EVERETT MONTE CRISTO HOTEL, INC., Defendant, Matthew D. Griffin, et al., Defendants-Appellants, and Veca Electric Company, Inc., Plaintiff in Intervention and Cross-Appellant.

United States Court of Appeals, Ninth Circuit.

October 1, 1975.

Attorney(s) appearing for the Case

Edward J. Novack (argued), Williams & Novack, Everett, Wash., for appellant in No. 73-2981.

William H. Wilson, Anderson, Hunter, Dewell, Baker & Collins, Everett, Wash., for appellant in No. 73-2987.

Michael J. Hemovich (argued), Bantz & Hemovich, Spokane, Wash., for appellant in No. 73-3019.

Newell Smith, Everett, Wash., for appellant in No. 73-3113.

William B. Moore (argued), Ferguson & Burdell, Seattle, Wash., for appellant in No. 73-3041.

Charles F. Mansfield, Asst. U. S. Atty. (argued), Seattle, Wash., for appellee.

Before ELY and HUFSTEDLER, Circuit Judges, and TAYLOR, District Judge.

OPINION

HUFSTEDLER, Circuit Judge:

The Everett Monte Cristo Hotel, Inc. ("the Hotel"), was organized to operate a historical hotel in Everett, Washington. In an effort to obtain capital, the Hotel began negotiations for a Small Business Administration ("SBA") loan. After lengthy negotiations, an arrangement was made whereby SBA and several local financial institutions, the latter represented by Everett Trust and Savings Bank ("Bank"), agreed to lend the...

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