Wednesday, December 29, 2010

Travelers seeks $6.4 million from Claiborne Frazier, BancorpSouth accused Fraziers of $1.2 million fraud

Earlier post

The claims of fraud and stealing money made by Travelers Insurance against Austin and Claiborne Frazier are not the first time the brothers have faced such accusations. BancorpSouth made similar allegations against Claiborne Frazier last year in his bankruptcy filing.

BancorpSouth lent $5,400,000 to Van Buren Group LLC to build thirty condominiums in Oxford on September 5, 2001. Claiborne Frazier is the managing member of Van Buren. The debt was guaranteed by Austin Frazier, C.E. Frazier, Shelby Brantley, and Robert Crumpton. Van Buren defaulted on the note and BancorpSouth obtained a judgment in 2008 of $1,214,533 (plus interest of 8.5%). BancorpSouth claimed Claiborne sold seven units without turning over the proceeds of the sale to the bank in order to pay off the note. 21 units were sold by Van Buren, the proceeds of each sale were used to retire the debt. The bank alleged Mr. Frazier sold units for $251,289 (2003), $266,716 (2005), $265,857 (2003), $182,000 (2005), $250,418 (2003), $399,000 (2004), and $300,000 ($50,000 was paid to BancorpSouth). The bank claims other units may have been sold in similar fashion. The foreclosure and tax sale of the condos were the subject of a separate ruling by the Mississippi Court of Appeals.

Claiborne Frazier did not disclose these funds or actions in his 2008 bankruptcy petition. BancorpSouth showed up in bankruptcy court to contest the bankruptcy and obtain a non-dischargeable judgment against Mr. Frazier. (See below for complaint.) BancorpSouth claimed the debt should not be discharged under 18 USC 727 (debt can not be discharged if fraud took place).

U.S. Bankruptcy Judge Edward Ellington issued an agreed order granting BancorpSouth's petition and imposed a non-dischargeable judgment of $1,146,649 on Claiborne Frazier on October 31, 2009. (Happy Halloween.)

Claiborne Frazier's bankruptcy problems did not end with BancorpSouth, as Travelers Insurance (remember them?) picked up where the Mississippi Bank left off, filing a complaint against Mr. Frazier in bankruptcy court on July 28, 2009. The complaint is similar to the one filed against Austin Frazier by the insurance company. Travelers bonded several projects for Frazier Construction. Frazier fell on hard times and Travelers paid $6,405,585 for the completion of the projects. The insurance company claims it discovered after the loss, Claiborne Frazier's "financial were materially false and misleading" and "grossly overstated the value" of his assets and "grossly understated" the value of his liabilities. Travelers alleges Mr. Frazier sold heavy equipment and hid the sale despite the fact Travelers had a lien on the equipment. Mr. Frazier is said to have committed bankruptcy fraud and engaged in an "elaborate scheme" to defraud creditors and Frazier Construction.

Travelers seeks a judgment of $6,405,585 against Claiborne Frazier. Austin Frazier agreed to a non-dischargeable judgement of $5,000,000 with Travelers in his bankruptcy case. Claiborne Frazier's attorney withdrew from the case in April. Mr. Frazier has not obtained counsel. A pre-trial conference is scheduled January 4, 2011. No judgment has been rendered by the court. The bankruptcy case is still pending and has not been dismissed or discharged.



49 comments:

Anonymous said...

Who was Claiborne's attorney that withdrew in April?

Anonymous said...

kf, with all the purported individual fraud and possible bankruptcy fraud, why are the feds not after these guys??

Anonymous said...

The bigger question is...who are their attorneys now?

Anonymous said...

uh...does the loan officer at bxs still have HIS job?

Anonymous said...

Did you know travelers got Austin F. Fired from his last job said they wouldn't bond the construction company as long as they had him on the payroll. That is a federal offense

Anonymous said...

Why is that a federal offense?? I would think that they could bond whom ever they choose to guarantee the job being completed. Mississippi is an "at will" state and he can be fired for most anything so long as race, sex, religion, etc. is not involved. I don't recall reading that not choosing to loan money or guaranteeing a bond is in that phrase but if you do please enlighten all of us. Thanks 11:11 p.m. I await your reply so we can all learn. And besides, unless Travelers owned that company, he was not fired by them.

Anonymous said...

Its not a federal offense to choose not to do business with someone..Travelers didn't fire him,his employer fired him!you are either a Frazier,or you date a Frazier...bc I can't think of 1 person left that would take up for them after all they've done,& after all there is out there to read about them!Travler's needs to make a precedent out of these scam artists...so that others can't just file bankruptcy and then hide assets.or aka...act like the MOB!

Anonymous said...

I think it is totally reasonable for people to be choose to do or not do business with who they want to. If I knew that some company I was dealing with had a crook on their payroll, I might well conclude that I am not going to keep dealing with that company. If Traveler's reached that conclusoion about the place Austin worked, then kudos to them.

Anonymous said...

You have to wonder...where did all that money go. $6.5MM from Travelers, $1.2MM from BXS. $3.3MM to AmSouth/Regions in 2007. Almost all the local banks got clipped. There are several (10 or more) suits in county courts to the tune of several hundred K to millions where they stole from investors/partners. Lord knows how many subcontractors thier company stiffed. It has to be over $10,000,0000...maybe $20MM. That kind of money doesn't just vanish. And for them to claim bankruptcy and none of that money (or any assets) is anywhere to be found. Hmmm.

Anonymous said...

It vanishes if you spend it on....steak & wine bills,trips to the Ritz,yachts,speed boats,private school,condos,Destin bars,speed boats,fancy clothes,bar bills,drugs,hair hi-lights...that accounts for about a million.where's the rest?And how about all of their "friends" they stiffed....stuck with attorney fees,headaches & bank loans.."Friends" like Brantley,Phillips,Crumpton,Mathison,Laws,McLeod,Katsaboulas,Hines ...need I list more?I bet they wish they had the balls,rescources and money Travelers has...

Kingfish said...

You left out renting jets that you said you owned, buying thousand dollar bottles at NYC hot spots, and the like.

Then there is the mother of one kid who showed up in Claiborne's BK with a child support judgment for 1,800 a month.

Anonymous said...

A beautiful child that Nan...(the "grandmother") even denied...Hows that for being a "sweet lady"...who denies a child?

Anonymous said...

Not taking up for Claiborne here but I'm pretty sure it has been proven that it is not his child. I'd check the facts on that before I'd rush to judgement.
And...Nan is a good person, one of the best. Everyone who knows her would say the same thing. Please know your facts before you drag her through the mud. She would NEVER deny a child you JACKASS!!!!
The truth will come out in time.

closeupandpersonal said...

putting all this together the fraziers (austin and claiborne) did always think they were better than everyone and probably still do. I just hope they realize that they have been caught and that its time to roll over and die and save the ones that they chose to involve in there scheme. It just goes to show that spending your life getting everything you want at all costs will catch up with you eventually

Anonymous said...

"one kid who showed up in Claiborne's BK" - Claiborne owns a Burger King franchise too?!? ;-)

Anonymous said...

"The truth will come out in time."

God forbid. You want the TRUTH? You can't HANDLE the truth.
All so sad and senseless, except "for big shotty" greed and plastic standing within the "cool NEJxn crowd".

Anonymous said...

It is my understanding, it was proven (DNA/paternity test)to be Claiborne's child. These aren't nice people we're discussing. All of these people have some stink on them, even those with whom we are friends.

upcloseandpersonal said...

why hasnt the IRS gotten involved. usually RICO + money = tax evasion. The feds use RICO to imprison suspects till a criminal case can be made.

Anonymous said...

RICO is a criminal case.

Anonymous said...

RICO is a criminal charge. (Racketeering)

Anonymous said...

they use rico till they can charge the suspects with a more formal charge ie. murder, drug trafficing embezzlement, fraud, or theft

Anonymous said...

RACKETEERING INLUENTIAL CORRUPTION
ORGANIZATION ACT OF 1961

Anonymous said...

i think in this case we are both right(get your keyboard off caps lock you baby). it is both a criminal case and a criminal charge named after the case, eh?

Anonymous said...

From reading the document, the Spencer Copeland complaint was under "Civil RICO" for the time being. Naming Jane and John Does 1-5 each (to possibly add others to the complaint) OPENS the door, after discovery and subsequent depositions.

This is a "house of cards" that could fall quickly, and I will wager one of the "deposed" goes "Ed Peters" before this is over.

Anonymous said...

correct everything is civil now hence spencer, nan, etc vs. travelers. no mention state of mississippi. but i just wonder when the feds step in with tax evasion or fraud, certainly they didnt claim all of this stolen income on their taxes. and these, like i said earlier are charges that can be filed to keep them under said thumb, till the real facts unfold.

Anonymous said...

10:08 am, you are incorrect and obviously a plant for the dark side.

11:51 am, you are correct in that all court records attest to that fact. Additionally, his parental rights were terminated by the courts for said child, that doesn't happen unless you are indeed the father. These are the ironclad indisputable facts. They are of record.

Anonymous said...

I'd like to know how Austin being bankrupt can afford to vacation over the holidays in Costa Rico and post pictures on his Facebook page proudly showing it? And also bankrupt Claiborne sitting at the Ritz Carleton bar in New Orleans for the Ole Miss/LSU game? Must be nice....Whose room did you charge it to? Bankruptcy sounds fun...See you at the bar hot stuff!!

Anonymous said...

Hey Edward (Spencer's brother) what do you think????

Anonymous said...

Travelers, any interest in homes in Summers Bay or Oakmont??? Or a condo at Sandpiper Cove in Destin?? Get your duck stamps, there may be some deals on prime duck hunting land in Humphries County.

Anonymous said...

I've been there through this all. I know that Claiborne never meant for this to all happen. The banks started backstabbing him. When he borrowed money from a couple of LLCs to fight back at them then his closest friends started turning on him. Bankruptcy was then his only option. Thank god his family has stood by him and offered him help to get thru this all.

Anonymous said...

"I know that Claiborne never meant for this to all happen."

He will have his day(s) in court. UNDER OATH, as will all of the others, and scores more not mentioned in the original complaint (many in both sides of the family), to explain how he "never meant for this to happen".

Someone will cut their losses, tell the truth, and the chips will fall where the chips will fall.

These boys were, are, and will continue to flaunt their stolen wealth until someone somewhere within the family of big shots, fesses up.

Anonymous said...

7:34

you obviously don't have anything to lose because if you have been around them that long you would have lost it by now.

must be some motive for you to take up for them at this point. they have no friends or business partners left that they haven't run over. whose credit cards are ya'll running around with on ?

these little brats have even robbed their own grandmother, aunt, and stepmother

you keep good company !

Anonymous said...

backstabbing bankers and friends turning on them ....hold that thought. Your education is on the way !

Kingfish said...

7:34:

Why is their mother living at home with her folks in McComb? Answer that question. I know the answer to that one so tell the truth.

Anonymous said...

7:34 - problem was that when he began "borrowing" from these LLCs, he began asking his "friends" to invest more and more money. (Not to mention that he was using his LLC investor/friends' money to fund other projects in which they were not investors - which is fraud and theft.) His "friends" did not turn on him - they had to protect their families, income, savings, etc.

Anonymous said...

Austin and Claiborne's mother, Nan Copeland, is from Ebenezer. The family still owns property there. Nan's mother, Posey Wideman, lives at the JCC. Their stepmother, Phyllis, is from Amory (North Mississippi) and has been separated from CE for quite sometime. CE is from Jackson and his mother, Mildred, just passed away in October of this year.

Kingfish said...

Really?

Try again.

Anonymous said...

Kingfish, there is not anyone from McComb? Nan's mother, Posey, definitely lives at the JCC, but is originally from Ebenezer - still has her original home there. The stepmother, Phyllis, is actually from Riply - not Amory. Her family owns Ripley Cable.

Kingfish said...

I meant Phyllis. I'm sorry but with all the divorces, remarriages, and swapping around, it does get confusing at times. My sincere apologies. Heard a very heartbreaking story about her experience last night. Lets just say it was very unflattering to our two main persons of interest here.

Anonymous said...

Would that story involve a $200K CD, a sister and a sale that "happened" to not get documented?

Anonymous said...

Damn this is Lifetime Movie type shit.

Anonymous said...

What about those 4-5 big shot trial laywers who bought a bunch of condos from Claiborne in Oxford....and trusted him to file the title work after he cashed the checks...and then later were surprised to find out those papers "happened" to never get filed filed either.

Kingfish said...

11:23. Actually no but it sounds interersting.

Anonymous said...

I'm not sure why BXS thinks they are a fraud victim. They voluntarily gave the gratuitous releases to their advisory board of directors member and so knew everything that was going on. Their lien is still good unless they are guilty of misfeasance of nonfeasance.

My understanding is that some of the "big shots" agreed to take good title at a later date in exchange for a discount on the purchase price. In other words, this is a business deal gone sour, not fraud. I'm not saying the Fraziers are not guily of fraud, but not everything that is being called fraud in this case is actually fraud.

For those who want some background, you can read the tax lien purchaser appeal briefs, which are still the subject of a motion for rehearing.

Anyone who reads all of this has way too much time on their hands, but the introduction gives a good background. BXS is no saint here.

http://www.scribd.com/doc/46119951/Holly-Springs-Realty-Group-v-Van-Buren-Appeal-Brief-10-22-09

http://www.scribd.com/doc/46120065/Holly-Springs-v-BXS-Reply-Brief

Anonymous said...

Don't kick a man when he is down. Reach out and pull him up. They were leaders of the community and Jackson has lost them for the time being.

Anonymous said...

Hate to tell you but that is what people seem to be all about, kick a man when he is down. Maybe it is more than people in blogland feeling their is such injustice. Seems like some are jealous that this this family was prominate at one time, or maybe some in blogland have really personally been affected by some of their actions. Otherwise, those that are just jumping on the bann wagon not knowing what in the world you are talking about makes you no better than anyone else. Hope though that someone will pick you up when you are knocked down. Oh, and for the person who commented on the parent must being the problem with the kids having all those cars in college certainly didn't know his parents. Overindulged yes, but maybe you just wish you had all those cars. Jealousy sure can make someone say ugly things.

Anonymous said...

Which parents do you refer to 4:30?

C.E., Phyliss, Nan, Courtney, George, Bob. One of them. ALL OF THEM?

Old saying "Better be nice on the way up, cause the fall down can be a BITCH" surely fits here.

Anonymous said...

I can assure you Courtenay who you apparently don't know, because you spelled her name wrong did not spoil those kids. That is why I am saying some on this blog are just jumping in to feed all the frenzy. Let justice be done. You can blame the parents all you want but I think "adults" which they have been for quite awhile were old enough to make their own decisions right or wrong. So what that they got what they wanted in life and more. They still have the ultimate choice to make right decisions. None of the parents or stepparents have that power. Those boys have a mind of their own. And that old saying is right on target. Maybe just maybe a bit of compassion for EVERYONE involved until ALL SIDES ARE TOLD would be warranted. It looks bad for everyone, but like I said all the facts are not in at this point.If there is as much wrongdoing as is suggested then let the chips fall where they may.

Anonymous said...

All I say is YEAH!!! The only people who got hurt are a bunch of rich a%$holes from Jackson, Mississippi. Jackson is the center of the earth if you live in Jackson. Otherwise drive 50 miles in any direction, ANY DIRECTION and who cares. So a few overly self esteemed rich f$#ks from Jackson got f%cked. Who cares? They will get over it. The reason they can't do shiot to Frazier is he didn't do shiot. Those rich fuks gave him the money. THEY GAVE HIM THE MONEY!!! Don't believe me read the court files. The VICTIMS will not speak only cry, cry, cry... CRY Grenfell... Cry!!!

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