Thursday, October 22, 2009

JJ estimates over $37 million in loans issued to Evans brothers in Madison County and nearly $10 million in Desoto County

Update II: Found a $3.3 million dollar loan issued by M&F to an Evans company. Totals and headlines are updated to reflect this new information. Copy of Deed of Trust JJ was informed by a very good source M&F's exposure is only $5.6 million, which could be covered by MVT.

Update I
: Found more loans extended to Evans' owned companies in Desoto County. JJ calculates the total amount for Desoto is nearly $10 million after examining public records. List has been updated to reflect Desoto County loans.

One question that must be asked of the Evans case is exactly how much money did banks lend to the various companies owned by the Evans brothers. While the lawsuits against Jon Evans, Jackson Attorney Charles Evans, Jr., and their twenty-five companies work their way through the courts, JJ did some digging on the Madison County website and examined deeds of trust issued by the Evans' entities in favor of the local banks (A deed of trust is issued to a lender for the lien placed on the property. Think of it as a receipt for a loan filed at the courthouse.). Earlier post on Evans case

The total amount of loans issued to the Evans' companies in Madison County alone is $37,538,645 according to calculations based upon public records. There were 67 loans issued by 27 banks in Madison County. This is not an all-inclusive list but is based upon companies named in the lawsuit filed by Mississippi Valley Title Insurance Company in Madison County Chancery Court. An attempt was made to mention all releases filed by the banks on the deeds of trusts. If any were missed, please feel free to email any corrections to JJ. There are rumors of the defendants perpetuating similar frauds in other areas. However, those are just rumors at this time and JJ has focused its efforts on Madison County.

Several banks got lucky as they issued loans that were subsequently paid off on time. Others weren't so fortunate. Merchants & Farmers Bank is probably the biggest loser as its estimated the Kosciusko bank issued over $5 million in loans to companies owned by Jon or Charles Evans., Jr. While most of these loans are still performing and no actions pertaining to foreclosure have been filed, it is important to keep in mind that there is an active court order that froze the assets of the defendants. Unless the Court approves any mortgage payments, all of these loans are probably in severe danger of default. Below are the loans as well as the dates they were closed or filed, and the Evans company to whom they were granted.

Bankfirst: $1,688,828 (Madison), $2,489,246 (Total)
$448,408 on 7/3/03 to Woodgreen Development.
$480,420 on 11/14/03 to Old Agency Business Park
$760,000 on 1/7/05 to Cedar Lake Investors
$800,418 on 8/4/04 to Snowden Lane Investments. (Desoto)

Bancorp South: $2,978,081 (Madison), $4,333,666 (Total)
$448,000 on 7/3/03 to Woodgreen Development. Extended through 2013.
$250,000 on 1/15/03 to Colony Construction.
$780,000 on 1/7/05 to Cedar Lake Investors.
$1,500,081 on 7/21/08 to Park Place Commons. Was due in October 2008. No release or modification filed so assumed note is still unsatisfied.
$800,000 on 8/5/04 to Snowden Lane Investments. (Desoto)
$555,585 on 9/22/08 to Snowden Lane Investments (Desoto)


Regions: $1,961,020
$481,020 on 7/9/03 to Woodgreen Development. (Union Planters loan)
$1,480,000 on 3/9/05 to Cedar Lake Investors

Bankplus: $1,295,533 (Madison), $2,034,173 (Total)
$480,068 on 7/7/03 to Woodgreen Development.
$248,810 on 1/14/03 to Colony Construction
$183,695 on 1/15/08 to Colony Construction. Extension of above note.
$631,770 on 1/7/08 to Cedar Lake Investors
$400,518 on 8/20/04 to Brashear Heath (Desoto)
$338,122 on 8/25/06 to Colony Construction (Desoto)

Merchants & Farmers: $8,663,769 (Madison), $9,993,667(Total) NOTE: Informed source tells JJ only $5.6 million in loans are outstanding for the bank. Totals will be changed to reflect it in the overall cumulatitve total.
$321,618 on 7/23/03 to Woodgreen Development. Released on 4/28/05
$3,037,276 on 7/18/08 to Town Park of Madison.
$1,380,529 on 4/12/07 to Madison Avenue Development
$792,359 on 1/7/05 to Cedar Lake Investors
$416,329 on 9/21/05 to Cedar Lake Investors
$713,023 on 2/23/08 to Snowden Lane Investments. Mod. of earlier loan. (Desoto)
$616,875 on 8/14/07 to Snowden Lane Investments (Desoto)
$3,037,276 on 7/18/08 to Town Park.

Bank of Forest: $1,747,950
$1,296,500 on 7/21/08 to White Oaks Investments
$451,450 on 8/27/09 to White Oaks Investments

Bank of Yazoo City: $1,100,301
$800,188 on 1/29/08 to Westwoods Investments
$300,113 on 3/30/09 to Windsor Pass

Bank of the South: $700,680
$700,680 on 2/15/08 to Westwoods Investments

Renasant Bank: $1,381,150
$780,950 on 3/28/08 to Westwoods Investments
$600,200 on 6/29/07 to Madison Avenue Development

Heritage Banking Group: $781,980
$781,980 on 7/21/08 to Twinbrook Run Development

Southtrust Bank: $837,900 (Madison), $1,237,900 (Total)
$609,439 on 10/17/03 to Old Agency Business Park
$228,461 on 1/3/03 to Highland of Ridgeland. Extended maturity date to 9/13/09.
$400,000 on 8/31/04 to Colony Construction (Desoto)

Community Bank: $2,830,315 (Madison), $3,630,315 (Total)
$464,057 on 10/17/03 to Old Agency Business Park
$776,129 on 11/15/06 to Madison Avenue Development
$720,000 on 1/7/05 to Cedar Lake Investors
$520,129 on 8/1/07 to 463 Development.
$350,000 on 4/11/03 to Highland of Madison Development
$800,000 on 8/4/04 to Snowden Lane Investments. (Desoto)

Madison County Bank: $724,678
$400,164 on 10/16/03 to Old Agency Business Park
$227,899 on 11/13/08 to Old Agency Business Park. Extension of above loan.
$496,779 on 1/7/05 to Cedar Lake Investors.

State Bank & Trust: $2,446,181
$528,025 on 10/17/03 to Old Agency Business Park
$291,342 on 6/17/09 to Old Agency Business Park. Extension of above loan.
$353,079 on 9/23/05 to Cedar Lake Investors
$1,302,914 on 8/30/07 to 463 Development.
$498,846 on 4/10/03 to Highland of Madison Development

Citizens National Bank: $1,212,349
$500,170 on 11/14/03 to Old Agency Business Park
$712,179 on 1/7/05 to Cedar Lake Investors

First Commercial Bank: $0. Zero. Nada. Zip. Zilch.
$525,000 on 10/16/03 to Old Agency Business Park. Satisfied in 2006.
$304,000 on 5/2/03 to Highland CE Corp. Satisfied and released.

National Bank of Commerce: $1,360,441
$600,200 on 10/17/03 to Old Agency Business Park.
$760,241 on 1/7/05 to Cedar Lake Investors

Britton & Koontz: $2,352,102
$643,211 on 10/16/03 to Old Agency Business Park. Extended on 6/17/09 to 2012
$804,231 on 1/7/05 to Cedar Lake Investors.
$904,660 on 4/25/08 to Brashear Heath LLC. Granted extension on 6/17/09.

Holmes County Bank & Trust: $1,580,479
$800,292 on 2/11/09 to Nottaway Pointe
$780,187 on 4/22/08 to Park Place Commons

Cadence Bank: $3,439,402
$1,000,0279 on 10/27/06 to Madison Avenue Development
$1,614,402 on 12/08/06 to Madison Avenue Development. Does not say if it is modification of above note so it must be assumed it is another note.
$825,000 on 9/3/08 to Clear Creek Development.

Consumer National Bank: $792,169
$248,467 on 1/16/03 to Highland of Ridgeland
$191,702 on 2/1/06 to Highland of Ridgeland. Modified several times.
$352,000 on 9/23/05 to Cedar Lake Investors

Omnibank: $2,017,102
$775,804 on 2/2/07 to Madison Avenue Development.
$740,769 on 3/14/07 to Madison Avenue Development. Must be assumed another note as no modification of earlier note is mentioned.
$500,529 on 1/6/05 to Cedar Lake Investors

Copiah Bank: $0. Nada. Zilch. Zero.
$1,000,000 on 6/9/03 to Highland Development Group. Released later that year.

First Bank: $416,167
$416,167 on 1/6/05 to Cedar Lake Investors

Merchants & Planters Bank: $266,000
$266,000 on 4/11/03 to C&L Inc. Substitute Trustee notice filed on 10/15/09.

Guaranty Bank & Trust: $1,617,401
$808,304 on 12/29/08 to Brisbane Centre
$809,097 on 6/12/09 to Brisbane Centre

Wachovia: $900,000 (Madison), $1,300,000 (Total)
$900,000 on 4/30/08 to Park Place Commons
$400,000 on 8/31/04 to Highland of Ridgeland (Desoto)

Patriot Bank: $500,000 (Desoto)
$500,000 on 7/22/05 to Cedar Lake Investors

First State Bank : $752,640 (Desoto)
$424,319 on 6/17/05 to Cedar Lake Investors
$328,321 on 6/27/08 to Cedar Lake Investors

First Security Bank : $1,300,226 (Desoto)
$900,165 on 4/28/08 to Brashear Heath
$400,061 on 6/27/05 to Cedar Lake Investors

First Alliance Bank : $1,520,000 (Desoto)
$1,520,000 on 11/1/07 to Snowden Grove Investors. Modification of three earlier loans.

1st Trust Bank : $380,000 (Desoto)
$380,000 on 11/5/04 to Snowden Grove Investors

$37,538,645 (Madison County)
$9,722,219 (Desoto County)
$47,260,864 (Total)

68 loans in Madison County, 17 in Desoto.
Average loan size: $624,906
32 banks

24 comments:

Anonymous said...

So Kingfish, are you saying that by filing the TRO and freezing all their assets, that MVT might have by their own actions precipitated claims on their title policies when the Evans can't keep the loans current? Or have I misread that above?

Anonymous said...

Wonder why First Commercial didn't suffer the consequences. I've met with this bank before on commercial banking and they run a very tight ship.

Anonymous said...

I don't know about Copiah, but same thing. I'd maybe want to talk with the commercial lending arm to find out a little bit about their practices. Somehow they were secure in their lendings. Why them and not others....???

Anonymous said...

they got lucky

Anonymous said...

National Bank of Commerce - Didn't someone buy this bank?

NinaS said...

I think someone brought this up on your earliest post, but if the banks involved here pulled a credit report on Jon Evans, or John Evans dba whatever, how could they not see that there were multiple open loans on the same property? That's impossible for me to believe.

Also, lenders are notoriously neglectful about filing releases on paid off dot's. Surely that has been verified to be the case on some of these?

And finally, some of these dot's appear to be, or could be from the date and amount, an extension of the original dot, even if it lacks the correct language on the extended dot. I shouldn't have to say that modification language can easily be overlooked when the doc is prepped. That happens more than we think.

Not to worry though, am sure MVT has a crack team of razor sharp minds on the trail of this most unusual lending arrangment. Don't own the property? No big deal. Already owe a fortune over property value on another? No problem, here's another $500,000.

How did they get around the appraisals? Surely some of these props were over loan to value. I can't help but wonder how liable these banks are for this mess for making the loans in the first place.

Anonymous said...

Business loans (borrowers are LLC's) do not appear on personal credit bureau reports. When an approved attorney provides clear title to a bank for a piece of real estate, being that it is from an "approved" attorney, it is usually a bank's policy to accept it as a reliable document. Banks also engage licensed appraisers and the same can be said for the appraisers. I suppose 2 title certificates could be requested from 2 different companies and same for appraisals but it would get very expensive to do so. Lesson, don't except title work from the brother of the borrower...

Anonymous said...

Hard to believe they would stack such a flimsy house of cards. You know it's coming down at some point. People are just crazy.

Anonymous said...

The Mississippi Bar is well known for admitting crazy people and holding them close to their bosom.

Anonymous said...

Seem quite clear to me that this is a small part of the white man's welfare system being revealed.

Kingfish said...

Don't even pull that crap on this post. there's been ALOT of mortgage fraud pulled by Blacks in Jackson. Want to start talking about Family Mortgage and how Coleman had most of the Black Caucus in his pocket? Or all the crap Artie Armstrong used to pull? Or the fraud pulled by that bunch in Ridgeland that appeared on WLBT? Please.

Anonymous said...

Does not compare and never does. My opinion stands and I will gladly not post again. Peace

Anonymous said...

WOW 10:42 am. That would be an interesting attempt to "racialize" a conversation about criminal behavior. But, this time it appears that the pot is calling the kettle white. Double standard, double standard! Sounds like profiling to me.

Alvin Edney said...

Does not compare and never does. My opinion stands and I will gladly not post again. Peace

Please don't. Many thanks.

Anonymous said...

Though the conversation has taken a strange turn, I would like to take a moment to praise JJ on what was undoubtly a very time consuming research and reporting project. All the information is very clearly stated and easy to understand. I appreciate your efforts.

Anonymous said...

Nice work Kingfish, it would be very difficult and time consuming to follow extensions of loans and calculate interest, etc... but this is a good start. I wonder who reinsures, if anybody does, MVT?

Anonymous said...

I simply can't believe that with that many lenders involved, that someone in underwriting somewhere didn't see a red flag or ask any questions. Really hard to believe that.

Something here really reeks of a dead rat in the woodpile, above and beyond the fraud tag team of the Evans Bros.

Anonymous said...

Does anybody know where they are?

Anonymous said...

This is just incredible. And fantastic job, KF. This was a ton of hard work.

Anon @ 8:37 said-When an approved attorney provides clear title to a bank for a piece of real estate, being that it is from an "approved" attorney, it is usually a bank's policy to accept it as a reliable document.

If MVT was bamboozeled by an approved guy, they shouldn't be held accountable. The bad guys here seem to be the 2 brothers and MVT and the banks got taken for a ride.

Again, this is all just mind blowing. Dang, KF, keep on rocking and reporting.

Kingfish said...

1. due diligence
2. promissory estoppel
3. quality control

Anonymous said...

Trust but verify

Kingfish said...

Meanwhile the Mississippi Business Journal, Clarion-Ledger, and other print media is silent.

Complete incompetence and they wonder why they are in the tank.

This is a good quote about this from another forum:

In the past I wrote title insurance for both Old Republic and Commonwealth. It's been several years since I did business with either company, but I used to have title company reps come to my office, usually unannounced, and pull closing files at least twice a year. And I had an in depth "policy audit" once a year. The closing files for all large policies were examined, and others were pulled at random. They examined everything in my files, including title abstracts and closing docs. I have a real hard time believing I could have pulled a fraud of this magnitude off for any length of time absent collusion from a host of other people -- paralegals, abstractors, banks, mortgage brokers, etc.

One thing I've noticed in comparing big banks like Chase, GMAC, and even Citi to these smaller banks is the quality control departments are much larger and more thorough. Quality Control is an abstract concept to often ignored until it hits the fan. I remember until a couple of years ago UG/AIG had a program where experienced mortgage loan processors could underwrite their own files under UG/AIG's reps and warrants. However, UG/AIG audited the first ten files and then pulled them at random after that to audit. So the question is, considering most of these Deeds of Trust had BOTH Evans names on them, what QC procedures did MVT have in place. If these banks do sue MVT, they should ask me to write some of their interrogatories. I could write some really good ones for them. hehe.

Anonymous said...

somebody needs to be looking at people "inside" these banks

Anonymous said...

that list of banks THAT GAVE THIS CREEP MONEY ARE PROBABLY THE NEXT BANKS TO CLOSE - BECAUSE WE ALL KNOW THEY HAVE A CELLER FULL OF THESE SAME BORROWERS........BEND OVER TAXPAYERS....................

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