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Each time an acceptance came due, Wiggins paid it off by selling another bo gus acceptance. His scheme was uncovered last January when internal audits discovered that the bank's books were out of balance. The revelation came about for the simple reason that Wiggins over looked an acceptance that was due to mature.
Wiggins confessed to the rip-off in a statement to the bank, though he pleaded that it all began when he promised a loan to an unqualified customer. At the same time, confirmed Peck, he deeded over all his assets to Allied, and even agreed to a bank demand that he give up any literary rights he might have or acquire — in case he decided, for example, to try his hand at writing a book about his ca per. In early April the bank sold much of Wiggins' cattle holdings for $2.4 million.
It has also written off $9. 9 million as a loss against 1980 earnings, and filed an insurance claim for $10 million more.
Though no one has yet been charged with any criminal offense, that could change. The FBI, the U.S. Attorney in Houston and Texas state law enforcement officials have all opened investigations, and a federal grand jury has begun taking testimony in the case.