October 12, 2006 06:33 AM UTC

Heritage Bank worth $72 million or $20.4 million?

• 5 Comments
• by: WinstonSmith

According to the Denver Post, Congressman Bob Beauprez recently benefited from the sale of his Heritage Bank to a New Mexico company for $72 million in cash. According to the same article the “bank has 200 shareholders. Beauprez is the largest, owning 23 percent of the stock. If he receives 23 percent of the sale price, he would gross about $16.6 million.” http://www.denverpos…

In fact, on his 2006 federal personal financial disclosure form Beauprez lists just $3.1 million in stock in Front Range Capital Corp., the parent company of Heritage bank. He lists about another $1.6 million in IRA stock from Front Range. That adds up to about $4.7 million dollars. Seeing how he owns 23% of the bank, that would make the bank worth approximately $20.4 million dollars. http://www.political…

There are two possibilities as far as I can tell. One is that there was a $51.6 million profit on the sale of a bank that was worth $20.4 million. The other is that Beauprez fibbed on his personal financial disclosure form.