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Government examiners had ample clues to what was going on. But as David Paul, Colorado's financial-services regulator, told a congressional panel, "Silverado spared no expense to convince the regulators of their prudence." Paul said Silverado had brought "enormous management, consulting, accounting and legal resources to bear to rebut regulators' concerns." And the fast-talking Wise had the ear of Mowbray, the chief regulator in Topeka, who seemed to give Silverado the benefit of every doubt.
Wise was well connected, and so were the real estate honchos who were part of the Silverado juggernaut: Walters, Good and Mizel. Walters had his own bank and a high profile as an extravagant political contributor. Mizel and his M.D.C. Holdings dominated the Denver housing market. He reinforced his clout with hefty political contributions to local, state and national politicians. In 1986 he was host at a luncheon attended by President Reagan and raised $1 million for the Republican Party.
One explanation for Mizel's legendary fund-raising abilities became apparent only last month after a TIME story disclosed that M.D.C. had pressured some of its subcontractors into making personal campaign contributions; the developer then kicked the money back to them by allowing them to bill for phony construction work. That disclosure prompted dozens of contractors to admit that they too had been pressured by M.D.C. into making similar donations. "We were told that Mizel wanted to look good," said a major contractor who gave $40,000 to various campaigns at M.D.C.'s orders. "The money came back to us from Lincoln Savings and Silverado."
This is the world Neil Bush walked into when he went looking for financial backing to launch his own energy venture in the early 1980s. His benefactors saw him coming. After working for a couple of years pursuing oil and natural- gas leases for Amoco Production Corp., the 26-year-old Bush decided he was ready for bigger things. Neil and his wife Sharon were welcomed as a winsome couple in Denver's highly stratified social set. Sharon volunteered to help at Children's Hospital, Denver's most chic charity. She sold cookies through Cookie Express, a mini-business she started with chum Nancy Davis Zarif, daughter of Denver oil tycoon Marvin Davis, who dominated society in the city. Neil played squash at the Denver Club. But genteel poverty amid rich friends pinched: with Neil's $30,000 Amoco salary and a relatively modest $210,000 home, the Bushes were not keeping pace with their new friends.
Bush had lunch in 1982 with millionaire developer Walters, the major stockholder in Cherry Creek National Bank, to discuss financial backing for JNB, which Bush planned to launch with partners James Judd and Evan Nash. Walters quickly made $300,000 available to Bush to open JNB in January 1983. This enabled Bush to draw a more satisfying salary of $60,000 and provided generous operating expenses.
By August the flamboyant Good was brought into the deal. Bush had met Good at one of the aggressive speculator's lavish parties, and they had become friends. Good opened a $750,000 line of credit for Bush, promised more and flashed visions of wealth before his new chum. He even lent Bush $100,000 to invest in a hot commodities tip. The tip fizzled, and Good forgave the loan, an arrangement Bush later acknowledged as "fishy."