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Copy of amended complaint
Copy of answer
Motion to dismiss
The Evans slugfest continues in the Madison County Chancery Court. Mississippi Valley Title Insurance. MVT filed an amended complaint on November 6.
MVT spells out in more detail the connection it had with Charles Evans, Jr. and expanded the list of defendants to include more companies owned by Chris Evans. The amended complaint states he "was an approved attorney for Mississippi Valley Title, although not retained, hired, or employed by Mississippi Valley Title." and that "approved attorneys provide title certificates to MVT which are intended to represent the true status of title on a particular property."
Title insurance is required by lenders for mortgages so as to protect their collateral. The title insurance includes a certificate of title that tells the lender the borrower owns the land on which he is borrowing money. Without clear title, the mortgage becomes an unsecured and thus riskier loan.
MVT states Charles H. Evans, Jr., issued title certificates for "over 100 title insurance policies" underwritten by the insurance company and that he "misrepresented the true ownership and encumbrances upon certain land in title certificates provided to MVT for the benefit of Jon Christopher Evans and/or other defendants".
An investigation by JJ reveals that what apparently took place was companies owned by Chris Evans would buy prime pieces of commercial real estate in Madison and Desoto counties. However, another company owned by Evans would obtain large commercial real estate loans on each property. Each property had several loans issued on it even though the company borrowing the money didn't actually have title to it as the company that bought the land still held the deed to the property. The Evans brothers used this method to obtain nearly 100 loans from over 30 banks in Mississippi. JJ estimates the total amount of exposure to the banks is $47 million.
However, MVT claims Charles Evans, Jr. would issue a certificate of title to MVT stating the company borrowing the money owned the land. Page nine reveals specific details about how the alleged fraud took place. MVT further states "Defendants have improperly and fraudulently obtained tens of millions of dollars through their common scheme and fraudulent acts."
MVT charges the defendants with nine counts that they have violated a court order requiring them to convey land or cure the title defects. MVT asked the Chancellor to appoint special master to oversee the case. However, Charles Evans, Jr. is apparently fighting back as he filed an answer and a motion to dismiss to MVT's complaint.
Evans argues the suit should be stayed as its related to the recent bankruptcy filed by Chris Evans. He makes the standard defenses: venue is improper, no jurisdiction, complaint fails to state a claim upon which relief can be granted, no standing, statute of limitations expired, and so on. Evans also accuses the plaintiffs of having "unclean hands" and that their "own conduct" caused their problems.
Charles Evans, Jr. then filed a motion to dismiss. Evans posits MVT did not suffer any injury (the premise probably being that since MVT has not paid any claims, it thus did not suffer any injury which is required to prove fraud.) and that the "Plaintiffs have placed the cart before the horse."
The slugfest continues.
Wednesday, November 18, 2009
Evans and Mississippi Valley Title slugfest continues in Madison
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Plaintiffs have placed the cart before the horse. - Tery Levy, Attorney at Daniel Coker, representing Charles Evans
I hope Levy got all the money he wants on this case up front.
The Evans law firm's E&O insurer is paying for the defense not the Evans themselves. The distinction should be made.
translation: lawyers will take any position for a fee. a bedrock principle of this great republic
Terry Levy is a good guy. He is in my church and my family has known him for 30 years. He is also a great lawyer and that's why that E&O carrier picked him out of that firm. My family has been friends of that firm for a a very long time and his firm does not whore itself out to title insurance companies by acting as "agent" so he has no reason to fear retribution as other firms might. He'll argue this case on its merits and, as much as is possible, make MVT prove its case.
Keep in mind though that MVT has had relationships with lawyers in this state and the MS Bar for almost 70 years now, beginning with many of them when they graduate from law school. Being an "agent" can provide a very lucrative practice and as those lawyers grow up, they become judges, board members, legislators, etc. and as a result, the title company becomes able to "influence" many things through actions of its "agents", rightly or wrongly. Next time you hire a lawyer, buy a house or refinance your house, ask him/her if they are an "agent" or "approved attorney" for a title insurance company.
It will be very interesting to see if MVT actually has to pay any claims to the banks in this case. And it is really very surprising that this story has even been reported in the media. Most believe that if it were not for this "blog", nothing would have ever been heard of the case and it would be like other "sensitive" cases before it, simply swept under the rug right here in the land of the free and the home of the brave. And who would have ever guessed that the MS Business Journal would run a story on this case!
It is very interesting that the Amended Complaint now includes 10 possible John/Jane Does. It is almost impossible to believe that a fraud of this type, size and duration could have operated so long without multiple co-conspirators being involved. The only question is WHO are the co-conspirators: title company personnel, appraisers, surveyors, bank personnel, attorneys, etc.?
For sure though, somebody has the story of a lifetime [for MS anyway, other than WorldCom) in this case. And it looks now like it'll be Kingfish and Amy McCullough of the MS business Journal so far! Hats off to those two for taking the initiative, particularly to Kingfish for being brave enough to report on it when no other media outlet would!
Anybody else noticing that the case gets bigger as MVT "releases" more info to the court?
Yup.
I'm posting some stuff today and tomorrow that will show how close I was on the numbers.
It is very interesting that the Amended Complaint now includes 10 possible John/Jane Does. It is almost impossible to believe that a fraud of this type, size and duration could have operated so long without multiple co-conspirators being involved. The only question is WHO are the co-conspirators: title company personnel, appraisers, surveyors, bank personnel, attorneys, etc.?
BINGO! We have a winner!
For the record, I've always thought there were other people involved. You need about five people to make this deal work. Too many banks involved so its doubtful that anyone at the banks helped. However, I suspect a couple of appraisers were invovled. I'm also wondering what the audit procedures were at MVT for approved attorneys.
what i think they'd need:
(1) a really smart real estate attorney who had been around awhile and knew how the RE development game worked
(2) a survyeor to draw up lots of legal for what must have seemed like an unending number of developments
(3) somebody in underwiting at MVT to either have a psychotic break or participate
(4) an appraiser to inflate values and overlook tax information and other things in the land records
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(1) the RE attorney would probably tell 'em how to do it out of vanity w/o knowing they'd do it
(2) surveyor would probably do it for $$$ w/o really knowing what they were doing but he'd probably need to overlook some stuff in the land records
(3) in-house title company personnel probably needs to be on-board or else just punching a clock and not caring
(4) appraiser seems like a must-have for this scheme to have worked this well this long....
RE: John/Jane Does...who cooked the books for the Evans????
I know of two people that were possibly involved in helping them. One is located on State St. on the left hand side (coming from Meadowbrook area)operating out of a house, there is a small sign in the yard . I picked up the packages (maps?) he prepared for the Evans.
The other one is off of Fortification St. Coming from the highway you turn left on ? and it's right there to the right in a building with multiple businesses in it. It's a very old building and he is on the bottom to the far left.
I will get the names and post on here.
Amazing that no one will ask the right people who helped !!!! HELLO, FBI ? MVT? BANKS? You need the office people that worked in the Gulf States office.
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