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Officers
The Official Bulletin of the Rotary Club of Lubbock, Texas  District 5730
Rotary International
President of
Rotary International
Don Kurn Lee
Seoul, Korea
District 5730 Governor
Brad Bunn
Odessa, Texas
Assistant District Gov.
Peter Wierzba
Lubbock, TX
President
Walter Huffman
October 1, 2008
 Today’s Program 

Girish Vallabhan, M D
Robotic Surgery
October 8
Dianah Ascencio – TsDOT
President-Elect
October 15
Tibor Nagy
Monte Monroe
Vice President
Ann Graham
Past President
Tom Nichols
Secretary
Susan Maxwell
October 22
Wayne Havens
Hunt Leadership School for Girls
We will meet at the school
Treasurer
October 29
Steve Uryasz
TTU Athletics
Regina Johnston
Assistant Treasurer
Tim Wooten
Sergeant-At-Arms
Chester Golightly
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November 5
Brad Bunn - District
Board of Directors
2006-09
Lynn Buxkemper
Keith Larremore
Susan Maxwell
James Pipkin
2007-10
Mike Bennett
Ann Graham
Latrelle Joy
Sheryl Santos
2008-11
Marcy Jarrett
Laura Monroe
Alice White
Brian Yearwood
Rotary Eye Editor
Alice White
The Four Way Test
Of the Things We Think, Say or Do …
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and BETTER FRIENDSHIPS?
4. Will it be BENEFICIAL to all concerned?
LUBBOCK ROTARY MEETING REPORT
September 24, 2008
Rotary Program – Jody Nelson Receivership
Charles Joplin introduced our guest speaker, Robert Wilson. Robert began sharing the
Jody Nelson receivership story. He informed us the Jody Nelson was one of history’s “10
Top Embezzlement Cases” in American History. Nelson could have been rich honestly and
not had to steal from his employer. He motive was “GREED”; he was employed by a
company out of Snyder, Texas known as Patterson Oil Company. Patterson is the only
publicly traded company on the south plains. Glen Patterson, President, this company
drills in 15 different states and Canada.
The Rotary Club of Lubbock
1603 W. Loop 289  Lubbock, Texas 79416  806.785.3030  FAX 806.785.0198  [email protected]
Marjan Wilkins – Executive Director
www.lubbockrotary.org
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Jonathan D. “Jody” Nelson was born in Littlefield, Texas. He was extremely charming;
played football, came to Texas Tech University and graduated with a Bachelors Degree in
Accounting. He was blessed with a wife and 3 beautiful children. He was earning $220,000
per year; bonuses in the amount $480,000 per year; and potential stock options up to
$4.5M.
How did he steal the money:
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Checks written from 1998 to 2000
Sent bogus invoices through Chisum Inc. and XIT, Inc.
Forgery $60,000 signed by C. A. Talbot dated on January 5, 1999
Convinces employees that the checks were tied to an insider deal with Glen
Patterson and he wanted to keep transactions confidential
Jody became a Godfather – loaning employees money for houses, honeymoons, all
types of loans that built rapport and loyalty with subordinates
Steve Allen was a partner in a cattle deal on their ranch; Steve Allen asked Jody to
wire transfer $1.5M on 1/22/03 to XIT
During an audit – C.A. Talbot asked Jody why he was taking an extra $2,000 per
month – Talbot said this was not part of the agreement and stopped payment
Requisition for $1.5M was written in error for $1,506,000 which brought the
question “who is XIT”? Transaction error busted Jody Nelson and the findings were
that he had stolen $30M ($1M per month).
The FBI was notified and the Securities Exchange Commission stepped in to stop
him.
Robert Wilson was appointed Receiver by the District Judge for the Northern
District of Texas
The Receivership took control of all property, assets, businesses, homes everywhere,
tractors, trucks, airplanes, helicopters, guns, motor coaches, farm machinery,
vehicles, charter bus, boats, guns, etc.
How it ended:
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Auctioned off or sold everything – such as a $16,000 commode
Entered guilty plea to 2 counts – 1) Mail fraud 2) Wire Transfer & Fraud
Wife testified and separated from Jody
Psychologist evaluation testified that Jody was diagnosed with bipolar disorder and
depression
Jody testified that he did not steal out of greed or maliciousness
Talbot testified to the loss of integrity to the company due to Jody’s misconduct
Price Waterhouse deemed pure negligence and personal relationships were the
cause of Jody’s actions
The court sentenced Jody to 25 years in Federal Prison (Nelson received 3.84
months for every million he stole – 85% of that time will be served – until year 2029;
This type of behavior cannot be tolerated in our society. Jody lost a tremendous job and
a beautiful family. He gave up the potential to receive over $10M in stock options.
October Birthdays
Dee Beam
Scott Fanning
Marcy Jarrett
Jack Nelson
Don Craig
Jim Carpenter
Coffee Conner
Harold Jones
Bill Lane
Keith Larremore
James Arnold
Morris Wilkes
October 3
October 7
October 7
October 8
October 17
October 21
October 21
October 22
October 23
October 24
October 26
October 31
The Rotary Club of Lubbock
1603 W. Loop 289  Lubbock, Texas 79416  806.785.3030  FAX 806.785.0198  [email protected]
Marjan Wilkins – Executive Director
www.lubbockrotary.org