Yazoo Land Fraud (This arrow points to the next IN page.)

Yazoo Land Fraud Occurred in 1795 when Augusta was Georgia’s Capital Augusta 1 Yazoo Land Fraud was Georgia’s worst political scandal 2 At this time Georgia’s boundaries extended to the Mississippi River 3

Yazoo Land Fraud Creek, Cherokee, & other tribes lived in the land to the west 4 If the tribes could be persuaded to leave, then there could be a land rush in Ga. land rush = greater population Greater population = greater profits as land is sold 5 Land speculators (businessmen who had formed land companies) wanted to buy large portions of Ga.’s western territory 6

Yazoo Land Fraud Note: Land speculation is legal (buying land at low prices, holding it until Prices rise, and then selling it for profit) 7 Land speculation is illegal when done by gov’t officials who are looking to benefit rather than looking out for the best interest of citizens 8 Four private companies (land speculators) bribed many members of Ga.’s General Assembly to pass a law 9

Yazoo Land Fraud This law allowed the companies to buy 35 million acres of Ga.’s western territory – extending to the Yazoo River 10 Land sold at LOW prices (less than two cents per acre) 11 Companies made HUGE profits when they sold the land 12

Yazoo Land Fraud Georgians learned of the Yazoo Land Fraud & became angry, then many of the dishonest legislators Fled the state 13 Georgia’s capital moved to Louisville in 1796 Louisville 14 The next year (1796) a newly elected legislature repealed (abolished) the law authorizing the Yazoo Land sale 15

Yazoo Land Fraud Ga. Legislature directed the Yazoo Act be burned on the statehouse grounds – all copies were destroyed 16 Ga. Legislature provided for refund of money to buyers – many weren’t willing to give up their bargain 17 The Yazoo Land Fraud went to the Supreme Court in 1814 – Federal Gov’t paid off remaining claims 18