C. H. Butcher Jr. pleaded guilty to lying to officials.

Eight months after Butcher was found innocent of federal bankruptcy fraud in connection with the failure of the Southern Industrial Banking Corp., Butcher is admitting he lied that SIBC was solvent. Butcher entered his guilty pleas to 13 counts of a 16-count state indictment in Nashville, Tenn., admitting he misled the state commissioner of insurance and investors into thinking SIBC was turning a profit when it was not. Davidson County Criminal Court Judge Randall Wyatt sentenced Butcher, 49, to five years at the Silverdale Workhouse in Hamilton County, Tenn. SIBC, owned by Butcher, was an uninsured industrial loan and thrift company in Knoxville, Tenn. Prosecutors said 5,000 investors lost $25 million when it closed its doors in bankruptcy in March, 1983.