Evans Case-Related 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 (Itemized list)
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
Mississippi was not the only playground for Jon Chris Evans as he operated in Texas as well. JJ has discovered companies owned or controlled by Chris Evans obtained approximately $27 million in commercial real estate loans in Collin and Denton counties and that several banks have already initiated foreclosure proceedings against them. A list of the companies, links to their incorporation documents, and an itemized list of commercial real estate mortgages issued to Evans is provided below.
Chris Evans established nine companies in Texas. Riverbend Group, an Evans' L.L.C., was the engine that powered his Texas dealings as it bought prime tracts of commercial real estate in Collins and Denton Counties. Riverbend then transferred the properties to other Evans companies that then obtained commercial real estate mortgages. JJ calculates Evans-owned companies obtained $26,927,538 in loans from 16 Texas banks and 1 Mississippi bank. Unfortunately for several banks, five loans worth $10,245,370 are now in foreclosure proceedings. The State of Texas also revoked several charters for Evans' companies as well. While there are no allegations of fraud involving Mr. Evans Texas operations, Mr. Evans filed Chapter 7 bankruptcy last week. Given the current allegations of fraud against Mr. Evans in the Madison County Chancery Court and legal actions taken against him, it is likely these banks will take a financial hit to some degree.
Mississippi Valley Title Insurance Company and several banks have filed suit against Evans and his brother Charles, Jr. claiming fraud. A court granted the plaintiffs a preliminary injunction freezing all assets of Charles Jr. and ordered an accounting of all financial transactions and properties. Charles Evans, Jr. was an approved attorney for Mississippi Valley Title Insurance Company and was authorized to certify real estate titles for the Mississippi corporate giant. His brother operated over 25 companies in Mississippi as well. His companies bought valuable tracts of commercial real estate in the suburbs of Memphis and Jackson. The plaintiffs accuse the two brothers of providing MVT and the banks with false titles in order to obtain large amounts of commercial real estate mortgages. JJ reviewed the deeds of trust and other documents associated with the defendants and determined they obtained over 80 loans worth $47 million from Mississippi banks (see above-linked posts).
It thus appears Chris Evans received over $74 million in loans from Mississippi and Texas banks. Once again, it is important to remember it is not known how many, if any loans, were obtained through fraudulent means. However, given that the Chancellor in Mississippi ruled the plaintifs are likely to win their case, Mr. Evans filed Chapter 7 bankruptcy recently, and Charles Evans, Jr.'s assets are supposedly frozen, it remains to be seen as to how severe the impact will be to Mississippi Valley Title Insurance Company and 48 banks.
Itemized list of Texas Commercial Real Estate Loans to the Evans Brothers:
Total: $26,927,538
Number of loans: 19
Average loan amount: $1,417,239
Number of Texas banks: 16
Number of Mississippi banks: 1
Number of loans in foreclosure: 11
Total dollar amount of loans in foreclosure:$16,488,370
Independent Bank: $1,960,000 ($1,960,000 in foreclosure proceedings)
$960,000 on 10/22/08 to Greenwood Place, LLC. Renewal of note given to Signature bank on 4/16/06. Copy of deed of trust. Original deed of trust Substitution of Trustee (Foreclosure), Original note (Collin County)
$1,000,000 on 10/26/05 to Highland Colony Group (Denton County), Substitution of Trustee notice filed on 10/6/09, Sold on 11/3/09
Prosperity Bank: $930,000
$930,000 on 4/25/06 to Highland Colony Group, LLC. Copy of deed of trust (Collin County)
Inwood National Bank: $930,000 ($930,000 in foreclosure proceedings)
$930,000 on May 23,2006 to Highland Colony Group, LLC. Copy of deed of trust (Collin County); Substitution of Trustee on 10/9/09
American Bank of Texas: $3,215,000
$1,400,000 on 10/11/07 to Lake Harbor Development, LLC. Copy of deed of trust, Deed (Collin County) Substitution of Trustee
$923,000 on 7/2/09 to Paloma Ridge, LLC. (Denton County) Deed from Riverbend group to PR on same date, Substitution of Trustee Notice on 11/10/09
$892,000 on 10/11/05 to Highland Colony Group ( Denton County), Extension, Substitution of Trustee on 11/10/09
Swisher Partners, L.P.: $6,355,370 ($6,355,370 in foreclosure)
$6,355,370 on 7/26/09 to Riverbend Group, LLC; Substitution of Trustee, modification agreement (Collin County)
Northern Trust Bank of Texas: $900,000
$900,000 on 7/14/07 to Highland Colony Group, LLC; Deed of Trust (Collin County)
Plains Capital Bank: $611,000
$611,000 on 5/6/09 to Westfield Way, LLC (Denton County) deed from Riverbend group to Westfield Way on same date.
Benchmark Bank: $923,000
$923,000 on 6/18/09 to Oakmont Mill (Denton County) deed from Riverbend group to Oakmont Mill on the same date
Texoma: $1,168,000
$1,168,000 on 9/26/08 to Sawbridge Development (Denton County) Deed from Riverbend group to Sawbridge, Substitution of Trustee on 11/10/09
Bankfirst Financial Services (Mississippi bank): $4,187,668
$4,187,668 on 7/16/08 to Riverbend Group, LLC (Denton County)
Northern Dallas Bank & Trust: $880,000
$880,000 on 10/14/05 to Highland Colony Group (Denton County), Extension, Foreclosure sale on 11/3/09
Texas Star Bank: $980,000
$980,000 on 1/18/06 to Highland Colony Group (Denton County), Extended, Substitution of Trustee on 11/12/09
Bank of Texas: $960,000
$960,000 on 1/25/06 to Highland Colony Group (Denton County), Extended
Dallas City Bank: $1,000,000 ($1,000,000 in foreclosure)
$1,000,000 on 2/14/06 to Highland Colony Group (Denton County), Extended, Substitution of Trustee Notice filed on 10/26/09
Sovereign Bank: $997,500
$997,500 on 3/09/06 to Highland Colony Group (Denton County), Extended
Gateway National Bank: $930,000
$930,000 on 5/04/06 to Highland Colony Group (Denton County)
List of Texas L.L.C.'s operated by Jon C. (Chris) Evans
Riverbend Certificate of Formation
Highland Colony Group Articles of Inc.
Lake Harbor Articles of Inc., Termination by Texas
Sawbridge Development Articles of Inc.
Westfield Way Articles of Inc.
Oakmont Mill Articles of Inc.
Paloma Ridge Articles of Inc.
Bristol Mark Articles of Inc.
Clairborne Crossing Articles of Inc., Involuntary Termination by State
Monday, November 2, 2009
Texas was very good to Chris Evans: Over $74 million in loans issued in Texas & Mississippi
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28 comments:
Can't wait!
we're all on the edges of our seats!!!
I'm going crazy waiting for this! What's taking so long?:)
Hold up a second....I need to make some popcorn.
Seriously- where are these guys now?
Where are they??? They gotta be OUTTA here. Probably don't favor themselves anymore due to reconstructive plastic surgery, lying on the beach in a third world country. Little umbrella in the their drinks.
no kidding. They pay me a couple of mill, I'll quit posting. ;-)
The thing that's so strange to me is the fact that so few of the banks are foreclosing on the loans. Are we to assume that payments are/were being made on time?
Banks aren't foreclosing in order to prop up their already teetering balance sheets.
Wrong. In Texas they are foreclosing. Remember, many of these loans are commercial construction and payments are quarterly interest only ones.
In MS many of the banks are either filing lawsuits or filing Lis Pendens actions in Chancery Court to get first claim on the property. I'm going to up date some of this in the next day or so. Just takes time to write it all out.
Maybe a little truth to that anon 2:20. More than likely, banks aren't foreclosing because they don't know if they actually have title to the property.
Sure some are foreclosing Kingfish but if the current housing crisis has taught anything it is that banks are carefully controlling the rate at which they foreclose in order to govern how quickly the air escapes their stock balloons. Granted this is different and bank motivations will be modified accordingly but, regardless, the financial well being of too many banks tread very, very lightly on pins and needles.
And as you posted previously, the expo$ure$ from EvansCo is serious shit. Serious enough to get some of these banks taken OUT by the FDIC.
After doing a title check and discovering that they are not in first position as reflected in their Title Policy, the Banks are probably issuing a demand on MVT. After all, that's what the policy covers; a guarantee of you position in the chain of title. You can't foreclose on property where the borrow doesn't have title either. Look for the claims to start piling up at MVT.Will they pay or will they not, that is the question.
Read my post from the hearing. Many banks probably don't even have title. You can't foreclose on what you don't have title to. They have to settle the title question first.
And yet the crickets continue to chirp at the CL....have any TX papers picked up on this?
Also, what is BankFirst's total bag on this? $4m in TX can't help....
Looks like Texas could use a Kingfish ;) ..This just keeps getting bigger! AMAZING WORK on all this, KF. You know the Evans hate your ass.
Here's a thought...wonder if the Evans Bros are posting???
If they are then they will know how much to pay KF to quit posting.
When it comes to scams Peach Harmon is a neophyte compared to these Evans guys.
KF, If the borrower doesn't have title, then the Title Company that issued the policy is will have to step in and pay the policy limits. The real question is whether MVT's parent will inject additional capital to keep it alive. Where is the Dept. of Insurance? You would think Mike Chaney would use this the way Dilbert Hosemen used the Stanford mess.
You continue to amaze me, Kingfish. Incredibe job.
Kingfish said...
'no kidding. They pay me a couple of mill, I'll quit posting. ;-)'
You are a free man in a Free land if you do.
JB
I believe the county is Collin, not Collins
An attorney familiar with the situation told me that the MVT Title Policies were also endorsed by Old Republic, meaning they are also on the hook for any losses. Old Republic's pockets are deep, so the bank losses should be limited assuming the bank's paper work is in order. This is related to the Mississippi policies. Are the Texas policies also issued by MVT?
An attorney familiar with the situation told me that the MVT Title Policies were also endorsed by Old Republic, meaning they are also on the hook for any losses. Old Republic's pockets are deep, so the bank losses should be limited assuming the bank's paper work is in order. This is related to the Mississippi policies. Are the Texas policies also issued by MVT?
For the MS properties, the Evans' were able to get multiple loans on the same property because Charles was an approved attorney for MVT. MVT doesn't write in TX, as far as I know. I wonder if they had multiple loans on the TX properties also and if so, which title companies issued the policies there. They may have used the money they scammed in MS to purchase the properties in TX. For what it's worth, I also heard long before this mess broke that they were doing some developing in the Nashville area.
Does anyone have a picture of either of these bandits??? If some suspicious character comes in the courthouse filing new Deeds of Trust we'd like to know who it is!! HA!
These two men knew exactly what they were doing. They continued out of arrogance in thinking they could get away with it.
Chris is a strange puppy that exists on the outskirts of normalcy while Charles had a wonderful family that he just tossed to the wind. They tried to involve everyone. We all did separate tasks, not able to put it together what was going on but knowing something was not right. They had an office manager that worked for them for years and years and he was involved in all of it.
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