8984. American State Bank (Detroit, MI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 8, 1934
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gpt-5-mini
Short Digest
e1a88f1f

Response Measures

None

Description

Articles describe the American State Bank as defunct and in receivership due to large embezzlements by its president Robert M. Allan. No newspaper text describes a depositor run; the event series is legal/receivership aftermath of a bank-specific scandal leading to permanent closure.

Events (5)
1. May 8, 1934 Receivership
Newspaper Excerpt
Trial of suit brought by C. O. Thomas, receiver for the First National Bank-Detroit to collect $2,000,000 ... for the benefit of First National
Source
newspapers
2. August 18, 1934 Other
Newspaper Excerpt
William S. Sayres, Federal master in Chancery, found that the former American State Bank through embezzlement defalcations ... recommended to court bonding companies pay the receiver of the First National Bank.
Source
newspapers
3. November 2, 1934 Other
Newspaper Excerpt
Charges ... that Robert M. Allan, former president of the defunct American State Bank, now serving a prison term, 'actually stole $2,800,000.'
Source
newspapers
4. December 11, 1934 Other
Newspaper Excerpt
jury awarded ... judgment of $113,904 on the bond of Robert M. Allan, imprisoned former president of the old American State bank ... directed against the Fidelity & Casualty Co. of New York
Source
newspapers
5. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Collapse caused by large embezzlements and misapplication of funds by president Robert M. Allan and other officers
Newspaper Excerpt
the defunct American State bank ... more was lost to the bank through embezzlements and other dishonest practices
Source
newspapers

Newspaper Articles (4)
1. May 8, 1934 Lansing State Journal Lansing, MI
Article from Lansing State Journal, May 8, 1934

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Article Text

BANK RECEIVER SUES DEPOSIT COMPANIES Plaintiff Will Attempt to Collect $2,000,000 from De. troit Firms DETROIT May 8 P)-Trial of suit brought by C. O. Thomas, receiver for the First National Bank-Detroit to collect $2,000,000 two companies that bonded the defunct American State bank against embezzlements and defalcations will be started in federal court Monday Thomas charges that more than was lost to the bank through "embezzlements and other dishones practices If Thomas should win his in which the Detroit Fidelity & Surety company and the Fidelity Deposit company of Maryland are defendants the money would go into the receivership fund for the benefit of First National Robert M. Allan, president of the American State bank ing prison for misuse of bank funds, while two former vice are now on trial charged with and misapplication of They are Gordon Fearnley former executive president Joel Stockard president of the bank and head of a brokerage

2. August 18, 1934 Detroit Free Press Detroit, MI
Article from Detroit Free Press, August 18, 1934

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Article Text

Bank Receiver Wins in Claim Judges Must Pass on Award In an oral opinion handed down Friday, William S. Sayres, Federal master in Chancery, found that the former American State Bank through embezzlement defalcations reconmmended to court bonding companwith which pay the the receiver of the First National Bank. One of the companies, the Fidelity Deposit Co. Maryland, already the issue with ttlement has withdrawn other company the Detroit Fidelity Security merged with Lloyds Insurance America, which is receivership. Circuit Judge Leland Carr, of appointed ceiver the findings pass Judge Edward Federal both judges the finding. be subject United States Compproval the the Currency. No Contest Planned attorney for William M. not contest Lloyds', findings. the Robert S. Marx, attorney for filed the receiver, First aggregating bonding companies, against bonds indemnified that the claiming the officers defalcations of However, he employees. to prove more propose had been embezzled than the amount because that was issue. Testimony disclosed president that Robert the former American State prison Jackson, known set the dummy that Co., account to deal stocks and bonds. Accountant Testifies John Shackelberg certified pub- the testifying for accountant, the various transbank explained involved the actions that the "dumHe said shortage. State Bank's from American assistant to Massnick Henry tesMarx. Allan had withdrawn timony that the Co. account and used the that money sum stock speculation. returned $108,257. leaving Allan had the in this particuaccount of $306,195.

3. November 2, 1934 The Washington Times Washington, DC
Article from The Washington Times, November 2, 1934

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Article Text

Bankers Stole, Says Counsel for Bank DETROIT, Nov. 2 (I.N.S.). Charges had been made today by former Judge Robert S. Marx in circuit court that Robert M. Allan, former president of the defunct American State Bank, now serving a prison term, "actually stole $2,800,000. Mr. Marx is counsel for the receiver of the First National Bank who is seeking to collect $100,000 from the Fidelity and Casualty Company of New York for losses suffered in the collapse of the American State Bank.

4. December 11, 1934 The Ann Arbor News Ann Arbor, MI
Article from The Ann Arbor News, December 11, 1934

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Article Text

BANK RECEIVER IS AWARDED $113,904 ON ALLAN'S BOND Detroit Dec. deliberating 15 minutes over seven weeks of testimony, circuit B. court C. Monday awarded Schram. jury late receive for the First National judgment of $113,904 on the bond of Robert M. Allan, imprisoned former president of the old American State bank The jury's award was directed against the Fidelity & Casualty Co. of New York and covered the full amount of Allan's bond, together with interest. will not become effective until Judge Guy A. Miller has ruled upon a motion for dismissal submitted by the bonding company's attorneys. The court indicated he would act upon the motion this afternoon. Schram charged Allan removed funds belonging to the American State bank to his personal ac-