Halvor J. Hagen
The first Scandinavian American Bank (SAB) trial held following the second grand jury was for Halvor J. Hagen (former SAB President). On March 31, 1924, the jury found Hagen guilty of accepting deposits in an insolvent bank, and he was sentenced to two and a half years in the state penitentiary. Hagen and his counsel (Usher L. Burdick) appealed the verdict.
After a lengthy appeal process, the request for a new trial for Hagen went before the North Dakota Supreme Court. Justices John Burke and Sveinbjorn Johnson had to recuse themselves because Burke had previously served as Hagen's lawyer and Johnson had previously prosecuted Hagen as Attorney General. District Judges Thomas H. Pugh and Alexander G. Burr sat in on the case for the Justices. In early May 1926, the Supreme Court denied the request.
After his appeal to the North Dakota Supreme Court for a new trial was denied, Hagen had more appeal options. These all failed, and he was eventually forced to serve his sentence in the North Dakota State Penitentiary in Bismarck.
However, Hagen was released from prison early on August 15, 1927, by the State Pardon Board because of his failing mental and physical health, and his wife had recently suffered a stroke and needed care.
Once a prominent banker and well-respected citizen, Hagen's fall from grace had been significant. He died within the next couple of years.
John J. Hastings
In early April 1924, Judge William J. Kneeshaw dismissed a case against John J. Hastings (former Vice President of the Scandinavian American Bank). At the end of May 1924, Hastings faced another trial on an embezzlement charge. The jury found him not guilty.
Around this time (the early 1920s), Hastings left the banking industry and became involved in the mining industry, which he continued to do for many years. He operated mines in Montana, Oregon, and Washington.
But, in February 1925, he again involved himself in a bank in North Dakota. He became president of the state bank in New England. However, less than two months later, the bank failed and was forced to close.
In early October 1925, Hastings was arrested in Seattle, Washington, in connection with wrecking the bank in New England. He was charged with embezzlement and violating state banking laws.
In June 1926, in a deal struck between his lawyer (Usher L. Burdick) and the prosecution, Hastings pleaded guilty to the charges for his involvement with the wrecking of the bank in New England. Hastings received a delay in sentencing to give him time to pay back the amount he alleged embezzled.
When he was arrested in 1925, Hastings claimed it was political persecution, because of his former connection with the Nonpartisan League (NPL) and its bank reorganizations. Hastings had been repeatedly indicted and prosecuted by the IVA for his actions as SAB Vice President, but he was always acquitted.
However, it was his involvement with a bank across the state in Hettinger County that proved to be his downfall. In October 1926, he was sentenced to 5 years in the North Dakota State Penitentiary. He did appeal to the North Dakota Supreme Court, but his sentence was upheld.
About 2 years into his sentence in 1928, the state pardon board granted Hastings a "leave of absence" and then granted him parole a few months later in December. He resided in Oregon and Washington for the rest of his life.
During the time of these cases (roughly 1924 to 1926), Usher L. Burdick served as the lawyer for both Halvor J. Hagen and John J. Hastings. Burdick served as Lieutenant Governor (1911-1913) and later as U.S. Representative (1935-1945, 1949-1959).
Halvor J. Hagen mug shot, N.D State Penitentiary, circa 1926-1927 [Courtesy of State Historical Society (30366-04387-1)].
John J. Hastings mug shot, N.D. State Penitentiary, circa 1926 [Courtesy of State Historical Society (30366-04389)].