Daniel H. Overmyer

Overmyer opened his first of many warehouses to come in 1947 in Toledo. His warehouse chain would soon expand to both Akron and Canton, Ohio. Soon after that expansion, Overmyer founded the D.H. Overmyer Warehouse Company which would further expand his company all over the state.

Soon as the 1960s and '70s came and passed, Overmyer's company expanded across the nation and soon across all of North America. Overmyer's warehouse included 350 warehouses and 32 million square feet of space in both North America and Europe.[1]

In 1963, Overmyer turned his attention to television. On April 15, Overmyer applied to the FCC (Federal Communications Commission) for a new television station on channel 79 in Toledo.[7] Toledo had two commercial VHF stations: CBS affiliate WTOL-TV and WSPD-TV (now WTVG), an NBC affiliate; the stations shared ABC programming.[8] Two other companies filed applications for channel 79, Producers Inc and Springfield Television Broadcasting Corporation.[9][10] In February of 1964, the FCC announced that a comparative hearing would be necessary before awarding the construction permit.[11] On March 2, 1964, Springfield Television Inc. petitioned the FCC to add to the proceedings the issue of D. H. Overmyer's financial qualifications to construct and operate the station. Springfield claimed that the bank loans Overmyer intended to use were not firm commitments, and the warehouse company had insufficient funds to make loans to the communications company. On April 29, 1964, the FCC denied the petition to add these considerations to the proceedings, claiming that Overmyer had already satisfied the financial qualifications requirement.[12] A Congressional hearing was held in 1968 that examined these same financial qualifications in greater detail.

In June of 1964, Robert F. Adams, the executive vice president, announced the formation of the D.H. Overmyer Communications Company. The company headquarters was in New York City, and work began to acquire the full complement of TV properties allowed under the FCC rules.[13][14] In September of 1964, Overmyer reached an agreement with the two competitors for the Toledo station to withdraw their applications in return for a payment of out of pocket expenses.[15] On March 11, 1965, Overmyer received his construction permit for channel 79.[16] The requested call letters were WDHO-TV (now WNWO-TV), based on Overmyer's initials.[17][18] The station would later receive FCC approval on August 6, 1965, to change to channel 24 from channel 79. WDHO-TV signed on-the-air May 3, 1966, as an independent, having no network affiliation.[19][20][21] Also, Overmyer Communications Company purchased the construction permits of dark station WATL-TV channel 36 in Atlanta (operated 1954–55 as WQXI-TV), WNOP-TV channel 74 in Newport, Kentucky (the future WXIX-TV, in the Cincinnati market) and KBAY-TV channel 20 (the future KEMO-TV now KOFY-TV) in San Francisco.[22][23][24] WNOP-TV and KBAY-TV were construction permits only; neither station had ever been on the air.[25][26][27][28][29][30][31] The Overmyer Communications Company also applied for new stations on channel 55 in Stamford, Connecticut, channel 17 in Rosenberg, Texas (in the Houston area), and channel 29 in Dallas.[32][33][34] Overmyer also requested a waiver from the FCC rule that limited ownership to seven stations. If approved, the eighth station would be the off-the-air WAND-TV (operated 1953–54 as WKJF-TV, now WPGH-TV) channel 53 in Pittsburgh.[35][36]

After the FCC denied his waiver request, Overmyer withdrew his application for the Stamford station on May 11, 1965.[37][38] The WNOP-TV sale was approved on March 10, 1965, followed by WATL-TV on May 12, 1965, WAND-TV on July 28, 1965, Houston on August 12, 1965, and KBAY-TV on October 20, 1965 (Overmyer held 80 percent[39]).[40][41][42][43][44] Overmyer's purchase of KBAY-TV differed from the other stations since the owner, Sherrill C. Corwin, retained 20 percent of the stock. Overmyer held an option to purchase Sherrill C. Corwin's stock interest between the 49th and 63rd months after the San Francisco station started operation. Overmyer was never awarded a construction permit for the Dallas station, and it remained before the FCC as an application until later being withdrawn. Each station was incorporated separately and grouped under the Overmyer Communications Company.[45][46] The company began large-scale purchases of equipment for the TV stations in the fall of 1965.[47][48][49][50] During 1966 purchases of programming for the stations were made for $3 Million.[51] The call letters chosen for the stations were the initials of Daniel Overmyer, his wife, and children.[52] Sites had been established for most of the stations by late 1966.[53] At the end of 1966 progress in building the stations in Atlanta and Pittsburgh had been delayed extensively due to the difficulty in finding suitable sites for the tall towers needed for the antennas.[54][55] At the start of 1967, KEMO-TV in San Francisco had extensive construction at the transmitter, and a studio undergoing remodeling, WSCO-TV in Cincinnati had major work completed at the transmitter site, but no studio construction started. Also, WBMO-TV in Atlanta and WECO-TV in Pittsburgh had sites chosen, equipment delivered, but no construction work started, KJDO-TV in Houston had no final transmitter or studio sites, and no equipment was delivered.[56] [57][58]WDHO-TV in Toledo had been the only station of the group to go into operation.

In the fall of 1966, it became apparent that the company managing the construction of Overmyer's warehouses had encountered significant financial problems. Payments to the subcontractors stopped, which resulted in liens placed on the unfinished properties. Also, all construction ended, and no funding sources would finance the expansion of the warehouse company. The D. H. Overmyer Co. Inc. (Ohio), without legal obligation, assumed the $6 million debt of the Green and White Construction Company.[59][60] Guaranteeing the debt removed the liens on the buildings, and warehouse construction was resumed. However, the increased debt load on the warehouse company restricted the availability of loans needed to finance further growth. The original plan was for the warehouse company profits to finance the construction and early operational deficits of the TV stations. Assuming the Green and White debt forced the redirection of the warehouse profits into paying off that obligation over several years.[61] Therefore, the Overmyer Communications Company was forced to find outside funding to continue the construction of the five unfinished television stations.[62]

In March of 1967, D.H. Overmyer Communications Company started negotiations with AVC Corporation for the sale of an interest in five of the construction permits, none of which were on the air. AVC was created in 1963 when the American Viscose Corporation, a manufacturer of industrial fibers, sold its manufacturing operations to FMC Corporation. The investments held by American Viscose transferred to a new non-affiliated corporation named AVC, which became a diversified investment company. American Viscose, continued operation under that name, as a division of FMC Corporation. AVC was headquartered in Wilmington, Delaware, and listed on the American Stock Exchange.[63][64] The Overmyer sale was of eighty percent of each of the construction permits for Atlanta (WBMO-TV), Cincinnati (WSCO-TV), San Francisco (KEMO-TV), Pittsburgh (WECO-TV) and Houston (KJDO-TV). AVC desired to purchase 100 percent ownership in the construction permits but was turned down by D. H. Overmyer during the sale negotiations.[65] Joseph L. Castle, partner with the Philadelphia investment banking firm of Butcher & Sherrerd, acted as a broker for the sale. Additionally, Mr. Castle was a stockholder in the Philadelphia Television Broadcasting Company, which owned Philadelphia station WPHL-TV.[66][67][68][69][70][71][72] Butcher & Sherrerd also held stock in WPHL-TV, and partner Howard Butcher was on the board of directors of AVC Corporation.[73] On March 28, 1967, AVC and Overmyer signed the agreement for the sale of the five construction permits. On June 8, 1967, AVC also arranged to purchase WPHL-TV channel 17, which brought a total transfer of six stations in the top 25 markets to a single owner.[74] On June 30, 1967, the FCC received the application for the Overmyer construction permit transfers.[75] The FCC approval of both the Overmyer and WPHL-TV transfers came on December 8, 1967.[76][77][78][79][80][81] WDHO-TV in Toledo was not involved in the sale and remained wholly owned by D.H. Overmyer Telecasting Company Inc. Overmyer had previously withdrawn his application for the Dallas station, which the FCC deleted on October 17, 1967.[82][83]

The FCC approval of the entire package was controversial because of the waiver of the FCC policy restricting ownership to seven TV stations with only three allowed in the top 50 markets.[84][85] The FCC awarded Overmyer's permits in 1965 under the old policy that limited the applicant to seven TV stations with no restriction on market ranking. The consideration for Overmyer's stock was eighty percent of the out-of-pocket expenses approved by the FCC, but not to exceed $1 million. The FCC approved an expense claim of $1,331,900.00, so the final sale price was $1 million.[86] Half of the expenses were submitted to the FCC with hard documentation, while the remainder was based on opinion evidence. Overmyer claimed that records were not maintained of the services performed by employees in related Overmyer enterprises for the benefit of the broadcasting company. Instead, department managers submitted estimates of employee time devoted to the broadcast company applied as a percentage of the department's total salary expenses for specified periods. The unusual method used to determine the expenses appeared to violate the FCC policy against recovery of more than the out-of-pocket expenses needed to prosecute the construction permits.[87] The sale included a $3 million loan to Overmyer with an option for AVC to purchase his remaining twenty percent interest. The FCC commissioners that voted against the sale criticized both of these aspects as affording a profit in violation of FCC policy. The final vote had been close, at 4 to 3 to approve the sale. The written opinions of the FCC commissioners formed much of the basis of a subsequent congressional investigation. Chairman Harley O. Staggers (D-WV) called the commissioners to a hearing with the Special Subcommittee on Investigations of the Committee on Interstate and Foreign Commerce of the House of Representatives, which oversees the FCC. Congressman Staggers told the commissioners at the December 15, 1967 meeting to expect a major investigation of their decision.[88][89]

After the sale agreement on March 28, 1967, AVC incorporated a Wilmington, Delaware based subsidiary named U.S. Communications Corporation with a headquarters in Philadelphia.[90][91] After FCC approval of the sale, the subsidiary would hold the five former Overmyer construction permits and UHF station WPHL-TV in Philadelphia. On June 6, 1967, AVC assigned to U.S. Communications Corporation all of the contractual rights and options negotiated with D.H. Overmyer in the March 28, 1967 agreement.[92] Since it was an investment company, and having no background in broadcasting, AVC was the source of capital. Included in the management team of U.S. Communications Corporation were two of the former owner-managers of WPHL-TV, Leonard Stevens, and Aaron Katz, who brought their broadcasting experience to the station group as Vice Presidents.[93][94][95][96][97][98] Joseph L. Castle became a director and Chairman of the Board of U.S. Communications Corporation.[99] Dr. Frank H. Reichel Jr., President of AVC, was appointed President of U.S. Communications Corporation. After completion of the transfers, AVC would own 70 percent of U.S. Communications Corporation, while all of the former owners of WPHL-TV would hold the remaining 30 percent.[100] D. H. Overmyer had no management role nor ownership interest in the U.S. Communications Corporation itself. However, he did own 20 percent of the stock in each of four U.S. Communications subsidiary corporations. These were permittees of WATL-TV in Atlanta, WPGH-TV in Pittsburgh, WXIX-TV in Cincinnati, and KJDO-TV in Houston.[101][102][103][104][105] Overmyer did not own any interest in WPHL-TV in Philadelphia or KEMO-TV in San Francisco. Sherrill C. Corwin, Overmyer's original partner in the San Francisco station, held twenty percent of its stock. U.S. Communications Corporation had an option to buy Overmyer's remaining twenty percent interest in four of the stations, along with requiring an assignment of his option to purchase Sherrill C. Corwin's interest in KEMO-TV.[106][107][108][109][110][111][112][113][114] The U.S. Communications Corporation could exercise this option between January 16, 1971, through January 15, 1972. Overmyer paid only the interest on the loan until U.S. Communications exercised the option or the option period ended. If the option were not picked up, then the $3 million loan principal would be due. If the U.S. Communications Corporation did pick up the option, then the loan principal would be due, but the payoff amount reduced by a purchase price determined by a specific formula. The sale price calculation was based using one of two methods, the first on the gross receipts for the five individual stations over a certain period and the other on a percentage of the gross receipts of all of the commercial TV stations operating in each of the five markets for a given period. The choice of which method to use depending on the number of hours per week the U.S. Communications stations were operating. Any time during the option period, Overmyer could require U.S. Communications to make an immediate decision whether or not to exercise the option. If U.S. Communications declined the option, then the loan principal is due. If the option is picked up, then the purchase procedure described previously is activated.[115][116] The highest purchase price was limited to the amount loaned to Overmyer, $3 million. The loan was secured by warehouse properties and Overmyer's remaining twenty percent interest in the TV stations. [117][118] The U.S. Communications Corporation never executed their option to buy the twenty percent owned by D. H. Overmyer and Sherrill C. Corwin in the stations.[119]D.H. Overmyer did repay the $3 million loan in full.[120]

Four of the five stations transferred from Overmyer to U.S. Communications Corporation signed on in 1968–69. KEMO-TV in San Francisco (no Overmyer ownership interest) started April 1, 1968, WXIX-TV in Cincinnati on August 1, 1968, WPGH-TV in Pittsburgh on February 1, 1969, and WATL-TV in Atlanta on August 16, 1969. The U.S. Communications group also included WPHL-TV in Philadelphia (no Overmyer ownership interest), which began operation on September 17, 1965.[121][122][123] The FCC deleted the construction permit of KJDO-TV on October 13, 1971.[124]

Allegations that the FCC had failed to protect the public interest in approving the transfers of the Overmyer permits to AVC (U.S. Communications Corporation) resulted in a Congressional investigation in 1968.[125][126][127][128][129] The investigation led to hearings that were held in Washington, D.C., beginning on July 16, 1968. Daniel Overmyer and several associates, along with FCC staff and commissioners, testified before the Special Subcommittee on Investigations of the Committee on Interstate and Foreign Commerce House of Representatives.[130][131][132][133] The investigation was wide-ranging, examining D. H. Overmyer's financial qualifications to obtain the original construction permits, as well as details of the out-of-pocket expenses, along with the loan and purchase option. A central issue explored was the method Overmyer used to calculate the expenses. The Overmyer Company managers based half of the expenses on opinion rather than hard documented evidence.[134] The FCC had acknowledged this approach was unusual but had not called for a hearing examining the method in detail.[135] Also considered was the failure to include required information with several FCC applications for extension of time to complete construction of the stations. These extension requests should have revealed the financial conditions which prevented the completion of the stations, and further that a buyer was being sought. Also, the applications should have been later amended to indicate that an agreement to sell the stations had occurred. These omissions constituted a violation of FCC rule 1.65 that was created to keep the commission notified of all information needed to make decisions on the applications. Investigators approached this failure as evidence of deliberate concealment of facts to keep the permits in a salable condition.[136] The filing had taken place by letter, rather than as an amendment to the extension applications, within the required 30 days; however, the FCC had mistakenly not shared the letter with congressional investigators. The House committee felt that the unusual aspects of this transfer should have required a hearing. The investigators held that the FCC accepted the transfer application without performing adequate verification of the information supplied. The FCC maintained that the top 50 market policy was waived to ensure that the five stations could make it on the air quickly. The alternative was to hold a hearing, which would likely result in the withdrawal of the transfer application. Comparative hearings would be required to examine new applications, which would result in lengthy delays. The FCC maintained that the All-Channel Receiver Act, which went into effect in 1964, required prioritizing UHF TV development. The commission also felt that a hearing was unnecessary because all of the information needed to decide on the transfer was available. Furthermore, the loan and option arrangements were acceptable based on prior precedents and security.[137][138][139][140][141][142] However, the FCC did begin proposing new rules that would tighten control over construction permit transfers.[143]

The House report, released in May of 1969, was a scathing opinion of the FCC approval of the sale.[144] The report criticized the FCC approval of the transfer without holding a public hearing to investigate the underlying nature of the transaction. The investigators said the FCC had not fulfilled its statutory obligations, and "Instead of basing its findings upon an evidentiary record, the Commission relied upon unsubstantiated representations and refused to subject them either to staff analysis or to the scrutiny of the hearing process."[145] The investigation first focused on the initial grants of the permits to Overmyer in 1965. The investigators concluded that "each of his applications submitted to the Commission failed to supply the appropriate financial information required."[146] The financial statements were not certified, and no firm bank loan commitments or proof of the ability of the warehouse company to supply the needed funds were submitted. The investigators stated that "A review of the facts pertaining to each of the CP (construction permit) applications led to one conclusion only: The commission carelessly and in disregard of the law and its own requirements, committed serious errors in making permit grants to Overmyer in the first instance, and compounded that error by subsequently approving their transfers."[147] The committee characterized the loan and stock option arrangement with the U.S. Communications Corporation as a "sham," guaranteeing Overmyer a profit in violation of the Communications Act of 1934.[148] If U.S. Communications Corporation picked up the option, the purchase price was designed to exceed $3 million, so the loan would not have to be repaid. Investigators stated, " The option price formula was an ill-disguised means of circumventing the Commission's out-of-pocket expenses policy-a paper attempt to legitimize for FCC consumption the unauthorized $3 million stock payment afforded earlier to Overmyer under the mask of a loan."[149] The report included a detailed examination of the out-of-pocket expenses claimed in the sale of permits to the U.S. Communications Corporation. The investigators characterized the FCC as having "accepted without question the unverified material Overmyer submitted in support of these expenditures."[150] The investigators found overcharges for services, charging for services never rendered, and expenses listed that did not apply to the actual permits transferred. The report went on to suggest both new legislation and changes in FCC rules preventing profiteering from station transfers. The FCC did change many policies to prevent the profit-making methods exposed during the congressional investigation, although congress did not pass any new laws. Among these was requiring hearings for any sale involving partial retained ownership of stock and any arrangement involving stock options. Also, a new requirement was added to file an itemized out-of-pocket expense list and specifying the types of expenses the FCC will allow. The transfer applicants must also declare that no other agreements existed outside those disclosed in the application. [151][152][153]

The Federal Communications Commission held hearings investigating D.H. Overmyer lasting from 1970 until 1980.[154][155][156][157][158][159][160][161] The FCC announced on August 26, 1970, that hearings would be held regarding the transfers of construction permits from D.H. Overmyer to U.S. Communications Corporation previously approved on December 8, 1967.[162] The goal of the hearings was to determine if Daniel H. Overmyer personally misrepresented out-of-pocket expenses to the FCC in the sale of the construction permits to the U.S. Communications Corporation. Additionally, if he did misrepresent the expenses, what legal remedies could the FCC impose? Despite WDHO-TV not being involved in the transfer, the FCC could legally move against its license because of alleged misrepresentation issues discovered in the congressional hearings on the U.S. Communications Corporation transfer.[163][164] Also, the FCC could declare the option held by U.S. Communications Corporation to buy Overmyer's remaining twenty percent interest to be void. Additionally, the FCC could require Overmyer to transfer his remaining interests to U.S. Communications Corporation, and further whether he could receive any compensation for the transfer. In August of 1970, the FCC deferred the license renewal of WDHO-TV, which was due to be acted upon on October 1, 1970, pending results of a subsequent hearing.[165] Overmyer petitioned the FCC for reconsideration of the order designating the case for a hearing. Overmyer maintained that the FCC had no jurisdiction in the matter since the sale approval was more than two years old, and that time for judicial appeal had lapsed.[166] On March 3, 1971, the FCC denied Overmyer's petition and stated it had the "affirmative duty" to re-examine the original transfer agreement to ensure the approval was not obtained by fraudulent misrepresentation. The FCC stated further that "Both court and commission case precedents have recognized an inherent power to require a judgment at any time where it is procured by fraud."[167][168][169] In May of 1973, Administrative Law Judge Herbert Sharfman ruled that Overmyer failed to corroborate the out-of-pocket expenses. Still, he was neither finding him guilty of making false statements nor innocent of any intention to deceive.[170] The FCC Broadcast Bureau felt that this decision failed to address the central issue of the character suitability of Overmyer to be the licensee of WDHO-TV. In October of 1973, Overmyer filed a petition requesting the hearings to either be terminated or send the case back to Judge Sharfman to resolve the character issue. The FCC remanded the case back to Judge Sharfman to resolve the misrepresentation issue specifically as it related to the character of Overmyer to continue as the licensee of WDHO-TV.[171] On May 17, 1974, Judge Sharfman ruled that while the Overmyer firm overstated the out-of-pocket costs, Mr. Overmyer himself did not fraudulently misstate the figures. There was "a complete failure of the record to inculpate Mr. Overmyer personally, directly or by implication."[172][173][174] In August of 1975, the FCC review board issued a report which affirmed the decision that cleared Overmyer of the charge of intentionally misrepresenting the out-of-pocket expenses. The FCC Broadcast Bureau requested a further review of this decision. On July 1, 1980, the FCC announced the decision of the commission to deny a request by the FCC Broadcast Bureau for further review of the Overmyer case.[175][176] The commissioners noted that WDHO-TV was in bankruptcy, and there was no point in continuing the delay of its license renewal. Also, the option held by U.S. Communications to purchase Overmyer's interest had passed unexercised. Additionally, the U.S. Communications' stations where Overmyer held an interest were all sold at a loss, or never constructed, which resulted in no compensation paid.[177][178] This decision ended the hearing and left standing the 1974 ruling by Judge Herbert Sharfman that the FCC had failed to prove Mr. Overmyer intentionally misrepresented the out-of-pocket expenses.

On July 12, 1966, Overmyer announced plans to create a fourth television network to compete against the Big Three television networks. He named the network the Overmyer Network and hired former ABC president Oliver Treyz.[179] Overmyer also received exclusive rights to the Continental Football League. He also had plans to begin a daily late-night talk show from Las Vegas. By December of 1966 the Overmyer Network had signed 123 affiliated TV stations, with 24 of the top 25 markets covered.[180]

However, Overmyer and Treyz did not have enough finances to launch the network in the fall of 1967 as they had hoped. So in early 1967, Overmyer officials went to the board of directors of the Mutual Broadcasting System to discuss a merger of the two networks, requesting some $500,000 to crank up production of the late-night show, and more money to keep the network going until advertising dollars began to come in.

The Mutual board of directors turned down the merger proposal. But three Mutual stockholders; Texas oil operator Jack McGlothlin; grain dealer, oil investor and land developer Willard Garvey; and James Nichols, a Texas advertising and public-relations man; thought enough of the idea to form a separate group with 11 wealthy western businessmen to buy the Overmyer Network and rename it the United Network.[181]

The United Network along with The Las Vegas Show hosted by Bill Dana premiered on May 1, 1967. Due to insufficient advertising revenue and costly AT&T distribution charges, the United Network folded one month after it started on June 1, 1967.[182][183]The last broadcast feed from the network of The Las Vegas Show was May 31.

A lawsuit was filed by the television services company, LewRon Television, against D.H. Overmyer Leasing Co regarding payment on services provided to telecast The Las Vegas Show.[184][185]

Due to poor advertising revenue, WATL-TV in Atlanta and KEMO-TV in San Francisco left the air on March 31, 1971, with WPGH-TV in Pittsburgh following on August 16, 1971.[186][187][188] All three were sold and returned to the air with the same call letters, WATL-TV on July 5, 1976, KEMO-TV on February 4, 1972, and WPGH-TV on January 14, 1974. After nearly being taken off the air on August 6, 1971, WXIX-TV was sold in 1972, for the assumption of a $3 million debt, to station group owner Metromedia Corporation.[189][190][191][192][193][194][195] WPGH-TV in Pittsburgh was the only station of the U.S. Communications Corporation group to enter receivership or bankruptcy.[196][197][198][199][200][201][202][203] These sales ended all of Overmyer's interest in the U.S. Communications subsidiaries, while WDHO-TV remained on the air as Toledo's ABC network affiliate (affiliated in 1969[204]). The Toledo station was then the only operational TV station owned by D.H. Overmyer. The D.H. Overmyer Telecasting Company, founded in 1966, was the holding company for WDHO-TV.[205][206] Overmyer pledged the stock of Telecasting to the First National Bank of Boston as security for a $6 million loan in 1971.[207]

In 1973, Overmyer's warehouses began shutting down production and entered Chapter 11 in New York.[208] Alleged improper conduct by Federal Bankruptcy Judge Roy Babitt and the court officers he appointed to the Overmyer bankruptcy proceedings were investigated in 1978.[209][210][211][212][213][214] Overmyer's attorneys requested Judge Babitt to remove himself from the case, which he refused to do.[215][216][217][218][219][220][221] A grand jury was eventually called to investigate these allegations, and in May of 1978, Federal Judge Lloyd F. MacMahon ordered the removal of Judge Roy Babitt from the case.[222][223][224] On April 7, 1978, the order declaring the Overmyer Co. bankrupt was vacated, although a receiver was appointed. Murray Guy, a court appointee, pleaded guilty to fraud and cooperated with investigators against other persons involved in the kickbacks that occurred during the Overmyer Co. bankruptcy proceedings.[225] A five-member Bankruptcy Committee, made up of judges from the Southern District of New York, criticized Judge Babitt for using "poor judgment" in appointing his brother's accounting firm to aid the receiver in the Overmyer bankruptcy. Also, "While Referee Babitt acted in good faith, he should have been aware that the appearance of influence was ever present, and the situation should have been avoided."[226]The U.S. Bankruptcy Court of the Southern District of New York subsequently ordered the sale of the assets of the D.H. Overmyer Co. Inc.[227]

In 1976, after defaulting on the FNBB loan, D.H. Overmyer Telecasting Company, Inc. filed a petition under Chapter 11 bankruptcy in New York.[228][229][230] This proceeding was dismissed in 1980 and appealed by Overmyer. The court denied the appeal, and on the same day, Telecasting refiled under Chapter 11 in Cleveland, Ohio. In the interim, D.H. Overmyer operated WDHO-TV in a debtor in possession arrangement with the court. On March 25, 1981, the Cleveland bankruptcy court awarded control of Telecasting to FNBB (First National Bank of Boston). Overmyer filed objections with the FCC claiming that the court-ordered transfer violated the FCC rules regarding the transfer of control of broadcast station licenses. On May 12, 1983, the FCC rejected the petition and issued an order transferring control of WDHO-TV from D.H. Overmyer Telecasting, a debtor in possession, to the First National Bank of Boston.[231] The Bank of Boston eventually sold WDHO-TV through bankruptcy to a local group, Toledo Television Investors, Ltd., for $19.6 million in 1986.[232][233]

On August 7, 1981, the Overmyer leasing company, operating as Hadar, which also was in Chapter 11, filed a proof of claim for $859,481.80 in the Telecasting bankruptcy proceedings. This event would lead to the indictment of Overmyer and attorney Edmund M. Connery.[234]Hadar purchased broadcasting equipment, which it then leased to Overmyer Telecasting Co. for use by WDHO-TV. The Government charged that aspects of the leases were falsified to the bankruptcy court to inflate the Hadar claim and unjustly enrich Overmyer.

On January 28, 1986, Overmyer and Edmund M. Connery were indicted in the United States District Court for the Northern District of Ohio. The indictment charged Overmyer and Connery with six counts of bankruptcy fraud, two counts of conspiracy to commit bankruptcy fraud, and one count of mail fraud. Connery, charged in six counts, was granted a separate trial.[235]

Overmyer was convicted by a federal jury in Akron of one count of filing a false bankruptcy claim. Edmund M. Connery was convicted of one count of aiding and abetting the filing of a false bankruptcy claim. The trial judge overturned the convictions, finding there was insufficient evidence to find the defendants guilty. The prosecution appealed the judge's decision to the Sixth Circuit in Cincinnati, which reinstated the convictions.[236][237] In 1989, Overmyer was sentenced to three years in federal prison (with six months in custody), three years probation, and a $5000 fine. On May 10, 1990, the Sixth Circuit Court of Appeals denied an appeal from Overmyer and left standing the conviction. [238]Overmyer appealed to the Supreme Court and was denied a hearing on October 29, 1990.[239][240]Edmund M. Connery was sentenced to two years on probation and a $5000 fine.[241] Also, Connery was disbarred in New York State.[242]Overmyer was released from the Federal Correctional Institute (FCI) Englewood in Littleton, CO, on May 15, 1991.[243]

Overmyer married his wife Shirley in 1943. They had four children; John, Edward, Barbara, Elizabeth. His daughter Olga was an adopted child from his second marriage. Overmyer's wife Shirley preceded him death in 1994 and then his daughter Barbara preceded him in death in February 2005.

In the mid-1980s, Overmyer and Shirley relocated to Denver. In 2009, Overmyer suffered a debilitating stroke. Shortly after, he moved to an assisted living facility in Tarzana, California to be closer to his son John. Overmyer died on July 24, 2012, at the Providence Tarzana Medical Center in Tarzana. He was 87 years old. His funeral was held on Sunday July 29 at the Reeb Funeral Home in Sylvania, Ohio. He was buried in Toledo Memorial Park in Sylvania, Ohio.[244]