The Rip Off

Chip Bannister ran the nation’s largest real estate RIP OFF from 1965 to 1974. Chip was the youngest of three boys; smooth, good looking, school-boy charm, single, I got the world by the tail swag and loved the girls. Egomaniac, but, very smart, extremely cunning. He was an east coast trust fund kid that attended USC, and then, with the help of his billionaire father, formed Bannister Financial in downtown Beverly Hills.

Chip’s dad successfully managed the company for two years and then handed the reins to Chip at the beginning of ‘65. Upon taking control, Chip quickly discovered it was easier to simply continue to raise new money, versus, executing the business plan---that was the beginning of a Real Estate Ponzi scheme that would eventually bankrupt the company and all the investors.

The investors: these were not just the rich and famous, Chip’s investors were school teachers, fireman, police officers and others that had their life savings with playboy rip-off artist, Chip Bannister.

Chip’s best friend from college was Dillan Patterson. Dillan grew up in Hermosa Beach, dreamed about playing football at USC, played there from ’58 to ‘61, and, was drafted by the Packers in 1962. After a five year career as a professional athlete, Dillan returned to Los Angeles, married his childhood sweetheart, and starting a career in real estate. Dillan and Chip’s relationship was tighter than ever given their real estate businesses’ somewhat overlapped. Dillan thought the world of Chip and went out of his way to refer people to Bannister Financial as often as possible.

Dillan’s #1 client was a guy named, Captain Donald Bowen, commanding officer, Point Mugu Naval Air Station, California. Military man: fought in World War II, Korea and moved up the latter over time. The military was his career; real estate was his business. Careful, discerning, cautious, smart and shrewd. Dillan made the introduction - Chip and the captain.

It’s easy to run a Ponzi scheme on a dummy, but, was it possible for Chip to pull it off on a guy like Captain Bowen who was meticulous careful? The captain was naturally leery of Chip at first, but, ultimately they began doing some business over a one year period---11 transactions total. And then! The captain figured out the scam.

By 1974, Chip knew the company was effectively bankrupt and hired a PR firm to blame the whole thing on Dillan and his CFO, Ivan Turner. The captain spent some time investigating and preparing; and then, he filed a lawsuit against Chip and Bannister Financial Inc.

What Chip didn’t know: he had messed with the wrong guy. The captain was the current leader of The Team.

The Team: a group of World War I veterans that galvanized and unified from the horrific aftermath of the Great Depression. The captain’s father was the original founder of The Team. The Team would eventually do what the court could not---affect real justice on Chip Bannister.

James R. Carter was one of the most successful real estate brokers in Silicon Valley over a 20 year period; completed a master's degree in business in 1993; published a non-fiction book called, A Guide to MAKING IT in Real Estate, 2015. He is married, has three adult-age daughters, and lives in Northern California. This is Mr. Carter's first novel. He can be contacted at jim@jamesraycarter.com. Thank You.