Pubdate: Thu, 21 Sep 2000 Source: Galveston County Daily News (TX) Copyright: 2000 Galveston Newspapers, Inc. Contact: PO Box 628, Galveston TX 77553 Fax: (409) 740-342 Feedback: http://www.galvestondailynews.com/letter.html Website: http://www.galvnews.com/ Forum: http://forums.galvnews.com/ Author: Carter Thompson, staff writer Bookmark: MAP's link to Texas articles is: http://www.mapinc.org/states/tx MAYOR ASKS BANK TO CLARIFY HIS ROLE IN LOAN GALVESTON - Mayor Roger "Bo" Quiroga on Wednesday publicly asked Frost Bank officials to set the record straight on what he said was his lack of involvement in a large bank loan to a man facing federal drug charges. That man, Timothy Terrell Day, after receiving the loan, pleaded guilty to trying to possess with the intent to distribute more than a pound of cocaine. He was sentenced this month to 21/2 years in a federal penitentiary. After his 1998 arrest, Day, 24, was able to get a $60,000 unsecured loan from the bank despite having reported only $805.94 in income over the previous 51/2 years, according to a news release issued last week by the U.S. attorney's office in Houston. The release said Quiroga, who until last month was the bank's vice president for business development, testified that Day and community activists had convinced him that Day was an acceptable loan risk. Quiroga denies playing any part in the loan and says he learned of it only after it had been issued. In a letter to The Daily News, he said he had called on the bank to clear the air about his role. Bank President F.A. "Andy" Odom said bank officials would not disclose the details surrounding Day's loan. "We respect the privacy of our customers and our employees," he said. Quiroga, who has claimed his August firing from the bank was politically motivated, said the bank could clear him without breaching Day's privacy. "They don't have to discuss the terms of the loan if they don't want to, but at least they ought to be able to say the mayor didn't have anything to do with the loan," he said. The Daily News has asked the U.S. district clerk for a recording of Quiroga's testimony at a March detention hearing. Kenneth Dies, the assistant U.S. attorney who prosecuted the case, said he wrote the press release in cooperation with an agent from the U.S. Drug Enforcement Agency. "At this point in time, all I can say is that to confirm the validity of the press release we have ordered the transcript," said Dies. He added that his office was not motivated by politics in including Quiroga in the release. Quiroga testified on Day's behalf at a hearing to determine whether Day would be released on bond while awaiting sentencing. The mayor said he knew Day from meetings on revitalizing the economically depressed neighborhoods north of Broadway. Day also had asked the mayor to intercede on his behalf to get the police department to return $9,000 it confiscated during the September 1998 arrest that led to his conviction. Quiroga said he was impressed, among other things, by Day's skill in researching both neighborhood revitalization and the confiscation of his money. Day later gave up his claim on the money as part of a plea agreement in the drug case. "He was just knowledgeable, young, but he really had a bright head on his shoulders," Quiroga said. In his letter, Quiroga said neither he nor the bank knew of Day's drug background. In an interview, he clarified that Day had not been convicted at the time of the loan. He said he had asked Police Chief Kim O. Schoolcraft about the money confiscated from Day and later testified on his behalf. Schoolcraft said that Quiroga did not pressure her to return Day's money. She said she believed the mayor and Day's other supporters had been conned by Day. LETTER FROM ROGER QUIROGA TO THE DAILY NEWS: I would like to take this opportunity to clarify some of the content of the recent non-front-page, front-page article written by Carter Thompson, Sept. 16. First, let me assure you that I did not have any knowledge why a $60,000 unsecured business loan was made to Mr. Day by officials of then-United States National Bank, now Frost Bank. I can't even tell you whether the loan was an unsecured loan or not. If I had to guess, the bank probably solicited this loan as an outreach effort to make loans to minorities. Again, I was not privy to this loan request nor did I have any input as to whether the bank should or should not make this loan. In order to set the record straight, I encouraged Frost Bank officials to let the public know that I did not participate in the approval process of Mr. Day's loan request. Like the bank, I did not know of Mr. Day's drug background and was trying to only help a young man who I thought wanted to get away from gang activity to change the direction of his life. It is very unfortunate, but Mr. Day now has to face up to the charges that have been brought up against him, and he will rightfully serve time for his actions. The dealing of drugs, in my opinion, has heavily contributed to the decline of our society. Illegal drug activities should have no place in Galveston or any other city in our country. Let me reiterate that my firing from Frost Bank did not have anything to do with this situation whatsoever. As I stated on earlier occasions, I personally feel my firing was politically motivated and again, I encourage Frost Bank officials to set the record straight as to my non-involvement with Mr. Day's business transactions. Roger Quiroga, mayor of Galveston - --- MAP posted-by: Eric Ernst