A Georgia banker whose alleged self-dealing was uncovered in the course of the federal grand jury probe of the finances of former budget director Bert Lance pleaded no contest yesterday to two counts of an indictment handed up March 26.
The plea-bargaining agreement between the defendant, Larry Beasley, and the federal prosecutors was not available at U.S. District Court in Atlanta.
But sources familiar with the documents said the agreement called for sentencing to await Beasley's cooperation in the the expected prosecution of Lance and his associates.
The grand jury that has been investigating allegations against Lance and others for more than a year is expected to hand up indictments next week.
Beasley's indictment concerned a business dealing with Richard Carr, a close Lance banking associate. Presumably, the prosecutors want his testimony in making their case against Carr.
Beasley was president of the First National Bank of Newton County in Covington.
The indictment says that on Nov. 17, 1977, Beasley arranged for his bank to make a $37,000 loan to Carr, who headed Northwest Georgia Bank in Ringgold at the time. This bank was controlled by Lance and several of his associates.
Carr agreed to use some of the money to buy 900 shares of stock in Northwest Georgia Bank from Beasley, the indictment said.
It said that Carr used $21,936 of the loan to pay Beasley for his stock and that Carr kept the balance.
Beasley pleaded no contest to charges of violating the federal banking laws by taking something of value in exchange for making a loan.
It says that Beasley "received . . . a thing of value from Richard T. Carr" - the $21,936 for his stock - "in exchange for producing . . . a loan for Carr."
Beasley also pleaded no contest to a charge that he "and others not named herein as defendants" conspired to misapply funds.
Beasley and Carr are no longer with the banks mentioned in the indictment.