Jackson Jambalaya

Update: Found another batch of loans made to Evans owned or controlled companies in Texas. So far the total amount for this newly-discovered group is over $14 million, including a $4 million from Bankfirst Financial Services in Mississippi.

The jet-setting Evans brothers could not get enough of Mississippi. First it was Madison County, then it was Desoto. Now JJ discovered more "deals" were made in Harrison County by Chris and Charles Evans as well nearly $13 million in commercial real estate loans in Texas that are "going bad". (See note below for synopsis of the Evans case.)

Cedar Lake Investors (sound familiar?) obtained a Deed of Trust in on a property in Harrison County on December 22, 2004 from First Bank and Trust (a Louisiana bank) for $352,000. The loan has been extended several times. Deed of Trust, Extension, Second extension . As was true all too many times, both Chris and Charles Evans signed the Deed of Trust and apparently Charles Evans provided the title work. Both names are on the signature pages. There are also several deeds on file for properties owned by Chris Evans in Harrison County. Deed, Deed II, Deed III, Deed IV

It is unknown as to how many other properties and banks in that area were involved at this time and a further investigation is being conducted. However, JJ has also learned Evans' companies operated in Texas as well in the same manner. So far JJ discovered the following companies and deeds in Collins County:
Lake Harbor Development Company: Lake Harbor Development-owned property, Second Lake Harbor owned property. Lake Harbor obtained a commercial mortgage on a property in Collins County for $1,400,000 on October 11, 2007 from American Bank of Texas. Deed of Trust, Deed The deed was issued to Lake Harbor from another Evans company: Highland Colony Group.

Highland Colony Group owned several properties in Collins County and obtained several commercial real estate mortgages:
Northern Trust Bank of Texas, $990,000 on 7/14/06 Deed of trust
Signature Bank, $960,000 on 4/14/06 Deed of Trust, Extended.
Inwood National Bank, $930,000 on 5/23/06. Extended on 9/28/09. (Yes, you read the date right. ) Deed of Trust granting extension
Prosperity National Bank, $930,000 on 7/15/07. Extension of 4/25/06 loan. Deed of Trust. Loan was extended again.

Collins County was not the only county where the Highland Colony Group wheeled and dealed. The company made more than a few visits to Denton County as it followed its usual pattern: buying tracts of promising commercial real estate than obtaining large mortgages for them from local banks. Highland Colony obtained the following loans:
North Dallas Bank & Trust, $880,000 on 10/14/05, Extended
American Bank of Texas, $892,000 on 10/11/05, Extended
Independent Bank, $1,000,000 on 10/26/05, Extended
Texas Star Bank, $980,000 on 1/18/06, Extended
Bank of Texas, $960,000 on 1/25/06, Extended
Dallas City Bank, $1,000,000 on 2/14/06, Extended
Sovereign Bank, $997,500 on 3/09/06, Extended
Gateway National Bank, $930,000 on 5/04/06
Inwood National Bank, $930,000 on 6/02/06

Total amount of commercial real estate loans granted to Evans' company in Texas: $12,879,500 (This sum is in addition to the over $52 million in loans taken by Evans brothers in Mississippi.). This sum is not a final total or accounting as it is obviously unknown if more loans were extended to other Evans' companies. However, foreclosures are in the works as Independent Bank filed an "Appointment of Substitution of Trustee" on October 9, 2009 and Dallas City Bank filed one on October 26. Filing this notice at the courthouse is the first step in the foreclosure process. Link to Denton County land records search engine. Keep in mind these are loans that were extended to the Chris Evans through his companies. While it has NOT been shown they were fraudulent yet, as a freeze order is in place against Charles Evans, Jr. and Chris Evans is in bankruptcy, the Texas banks will probably suffer losses to some degree on these loans.

Note: The synopsis of the case is there were two brothers, Charles Evans, Jr., and Jon Chris Evans, in Jackson. Charles was an "approved attorney" for Mississippi Valley Title Insurance and certified titles to them. His brother Chris set up over 25 LLC's in Mississippi and apparently some more in Texas that bought prime pieces of undeveloped commercial real estate in booming suburbs of major cities such as Dallas, Memphis, and Jackson. Evans companies obtained MANY commercial mortgages on their properties and Charles Evans Jr. certified the titles/deeds to the property for MVT and the lender. Evans obtained over 80 commercial real estate loans from 32 banks in Mississippi according to a JJ investigation, totalling over $52 million in Madison and Desoto Counties. MVT testified in a hearing this week that in most cases, the lenders had NO deed or title to the property and thus had extended unsecured loans.

MVT filed a Request for an immediate Temporary Restraining Order in mid-September, alleging fraud. MVT asked the Court to freeze all assets of the Evans brothers among other demands made by the insurance company. The Court granted the order. The order was converted this week to a preliminary injunction (see earlier posts listed below). MVT's lawyer called the alleged fraud the "biggest fraud to hit Mississippi since Worldcomm." MVT's investigator also admitted on the stand the FBI had contacted him about the case. Chris Evans stayed all proceedings against him by filing Chapter 7 bankruptcy this week while Charles Evans, Jr., is still a defendant.

Earlier posts:
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings