The Banker True Story: Garrett Served Just 9 Months of a 3-Year Prison Sentence

As depicted in the 2020 finance drama film "The Banker", real-life entrepreneur Bernard Garrett ultimately only spent 9 months behind bars despite receiving an initial prison sentence of 3 whole years for bank fraud in 1965.

As a passionate gamer myself, I was intrigued by Garrett‘s clever business strategies and against-all-odds success story, even if his methods weren‘t completely legal. So how did he and his partner get caught? And what was prison like for Black businessmen in the 1960s?

I‘ll provide extensive historical insight into the racism and oppression Garrett faced in pursuing the American dream, his illegal banking activities, their fairly short stint in federal prison, and what happened in the decades afterwards.

Racist Banking System Forced Creative Business Tactics

In the 1960s, Black citizens were systemically shut out from business loans, mortgages, and other basic financial services Americans rely on to get ahead. Racist lending practices made legal financial advancement nearly impossible for minorities at the time.

As a shocking example, according to NerdWallet analysis, over 90 percent of Federal Housing Administration mortgages went to white homeowners between 1934-1968.

This forced ambitious, smart Black businessmen like Bernard Garrett and Joe Morris to get creative to build wealth for themselves and economically empower the African American community.

Their solution? Install a white man to pose as the banker and owner, while Garrett and Morris secretly made all high-level decisions and bought up lucrative properties all over California in the 1950s and 60s.

Illicit Banking Tactics To Circumvent Racism Landed Them in Prison

While Garrett and Morris‘s business successes were admirable and earned fortunes that reached over $100 million in today‘s dollars, the means involved breaking serious banking laws at the time.

Specifically, they were convicted of misapplying $189,000 in bank funds from their California bank, the Founders Savings and Loan Association. Rather than reinvesting all deposits back into standard mortgages and loans, they funneled money illegally into their expanding real estate empire.

This abuse of power and fraudulent use of bank capital for their own potential gain is what ultimately caught the attention of federal regulators. And it resulted in multi-year felony sentences against the ambitious bankers.

Sentenced to 3 Years, But Only Served 9 Months Behind Bars

In 1965, Garrett and Morris were sentenced by a California court to 3 full years in federal prison for their banking crimes. This lengthy sentence reflected how seriously fraudulent banking practices were viewed at the time.

However, despite the scary possibility of 3 years cut off from the outside world, loss of business control, and confined with dangerous criminals – Garrett and Morris ended up lucking out.

"They served nine months," in reality before being released early in 1966.

I can imagine spending over 2 years locked up could have destroyed their businesses. So only serving 25% of their original sentence had to come as a major relief!

Harsh Prison Conditions for Black Businessmen

Now I don‘t want to downplay the difficulties they surely endured during those 9 months behind bars. Especially as educated Black professionals unaccustomed to prison life.

The mid-1960s represented a dark, crowded, violent chapter in America‘s penal system. As the civil rights movement highlighted racist incarceration practices, pressure mounted on the backwards prison system. Riots, isolation, and abuse were common inmate experiences.

As Black bankers, Garrett and Morris likely faced discrimination, threats, and harsh attempted power displays from predominantly white guards and inmates. Overcrowding meant limited space and lack of privacy.

For sophisticated businessmen striving to uplift the community, serving time in such bleak conditions must have been a difficult trial testing their resilience and determination.

Post-Prison Life and Legacy of Bernard Garrett

After being released early in 1966, Bernard Garrett did attempt some new business ventures. But none ever achieved the scale or success he saw during his heydey before incarceration.

The felony convictions on his record likely closed a lot of doors and made banks reluctant to lend support. And the ordeal may have taken mental and emotional tolls on his entrepreneurial drive going forward.

He ultimately died over 30 years later in obscurity in 1999 at a Los Angeles nursing home. However, decades later with The Banker movie, Garrett‘s pioneering story shed light on systemic racism in the financial system.

It inspired a new generation with the important legacy of Black banking leaders who went to creative lengths to shape economic justice. Their financial accomplishments and wealth creation in a racist system made huge strides supporting Black communities.

Now did Garrett and Morris cross ethical lines by breaking laws to overcome that injustice? As a neutral gaming commentator, I‘ll leave those judgments up to you! But looking back now, his fictionalized story reflects the extreme obstacles minority groups faced for equal opportunities that white citizens took for granted.

Charts on Staggering Racial Funding Gaps Faced by 1960s Black Bankers

To underscore the daunting financial barriers Garrett and Morris were up against, here are some striking charts from federal mortgage data in that era:

As you can see, the banking playing field was far from equal when black bankers were legally blocked from the same tools white businessmen relied on.

Illegal tactics doesn’t make their methods right. However numbers like that help explain WHY pioneers like Garrett and Morris felt brazen, rule-breaking business decisions were necessary steps to advance economic prospects for Black communities.

They identified a systemic injustice…and boldly worked to correct it by any means within their power, legal or not. And they ultimately paid a steep cost with felony convictions and prison time when federal regulators intervened.

But short-lived stints behind bars couldn‘t erase the trailblazing wealth, jobs, and financing opportunities the bankers created for fellow African Americans when no one else would.

Closing Thoughts

In closing, I appreciated learning about Bernard Garrett‘s obstacle-strewn path to success as highlighted in 2020‘s The Banker film.

The brilliant yet illicit banking strategies leading to his 9 months in federal prison underscore the extreme limits Black professionals faced. Their imprisonment was relatively brief. However, Garrett‘s post-release business ventures never again reached such meteoric profitability without the help of banking capital.

While laws had to be followed, we can now see in hindsight how regulations enabled the shameful reality of a racist 1960s financial system. The criminal charges and jail time were professional scars that couldn‘t erase the economic advancements and openings Garrett and Morris created for oppressed minority communities when no one else would.

Now I‘m curious to learn your perspectives! Did you see The Banker or similarly eye-opening civil rights movies? What shocked or inspired you most about Garrett and Morris‘ tale? Let me know in the comments!