Jackson Jambalaya

For a collection of all posts on Evans case, see sidebar on right. Synopsis at bottom of post.


Mississippi Valley Title Insurance Company and its parent company, Old Republic, filed a motion to hold Charles Evans in contempt of court on April 6 in U.S. Bankruptcy Court. Judge Neal Olack had ordered Mr. Evans to submit to a Rule 2004 exam by Mississippi Valley Title before April 1. Apparently Mr. Evans' attorney even went so far as to claim he had tried to make his client appear for the exam but was unsuccessful in his efforts. The motion also accuses Mr. Evans of withholding documents and failing to provide an accounting of his lawyers trust account. Mississippi Valley Title asked the Court to issue civil and criminal sanctions against Mr. Evans. Indeed, MVT asked for "severe" sanctions. Copy of motion

Mississippi Valley Title Insurance also filed an answer in the suit filed by Westport Insurance Company, the malpractice insurance carrier for Charles Evans. Westport filed suit seeking to withdraw its coverage of Charles Evans in January. Copy of motion, Copy of answer Mississippi Valley Title opposes Westport's withdrawal from the case. MVT demanded a jury trial. The suit mentions MVT and Old Republic because they are plaintiff's in a lawsuit against Charles Evans and Bank of Forest because it is involved in litigation against Charles Evans as well.

Another development that is interesting is Mississippi Valley Title filing a claim on April 9 against Chris Evans in Bankruptcy Court. Despite representing to the Court in November that 65 claims for $41 million had been filed against the insurance company by banks victimized by the Evans brothers, Mississippi Valley Title stated its claim against the estate at $13,119,842, a difference of nearly $28 million. MVT's claims registration, November affidavit, Itemized list of loans

The proof of claim filed by Mississippi Valley Title states it has only paid four claims for $1,975,000 in the Evans case despite the fact it filed suit against the Evans brothers in September. Mississippi Valley Title paid Metropolitan Bank $500,000, Holmes County Bank $525,000, M&F Bank $450,000, and Commercial Bank & Trust $500,000. Eight months since the fraud was discovered by Mississippi Valley Title yet only four claims have been paid.

Meanwhile, Mississippi Valley Title released its 2009 annual statement and an accompanying actuarial opinion, and statement of investments. The claims reserves are approximately $34 million and relatively unchanged from the previous year.

Synopsis of Evans case (This feature will be included with future posts on Evans case): Charles Evans, Jr. was an attorney approved by Mississippi Valley Title Insurance Company to provide title certificates to MVT and lenders showing a borrower had clear title to property. MVT filed a lawsuit in September accusing his brother of using over 30 LLC's to obtain fraudulent loans from over 30 banks in Mississippi. Chris Evans would allegedly use one company to purchase a large tract of prime commercial real estate in Madison and Desoto Counties. Another company owned by Evans would obtain a commercial real estate mortgage on a smaller section of the tract yet that borrowing company never obtained a deed showing ownership of the land from the other company. Thus the smaller tract was actually non-existed as the larger tract was never actually subdivided. Charles would allegedly provide a title certificate however showing the borrowing company owned the land even though it didn't. Over 80 loans for nearly $50 million were issued by Mississippi banks to companies owned by Chris Evans for lands those companies either did not own. MVT has testified federal authorities are currently investigating the case. Chris Evans filed Chapter 7 bankruptcy on October 26, which stopped the Mississippi Valley Title's lawsuit against him as federal bankruptcy law stays most state civil court proceedings once a bankruptcy petition is filed. Mississippi Valley Title testified 65 title insurance claims for approximately $41 million have been filed by banks affected by the Evans case.