Monday, February 5, 2018

Civil war breaks out in Livingston.

Investors in the Livingston Township development are suing each other in federal court.  A Washington state investor, Cascade Capital Group, LLC, sued David Landrum, Michael Sharpe, Chestnut Developers, LLC, and Livingston Holdings, LLC in U.S. District Court on December 1, 2017 seeking repayment of over one million dollars of a defaulted loan plus interest.  However, the two defendant companies claimed they never signed a promissory note and were victims of Cascade's fraud and bullying ways.  All of the parties are involved in developing Livingston Township in Madison County. 





Before this post gets started, it is important to give the readers a program of who the players are in this debacle.  The Secretary of State's website states that the only owner or member of Livingston Holdings, LLC is Jill Landrum.  However, the lawsuit states that both Mrs. Landrum and B&S MS Holdings are the owners of the company.  B&S is owned by California resident Michael Bollenbacher and Michael Sharpe.  It also claims that David Landrum and Michael Sharpe own Chestnut Developers, LLC.  Washington (state)-based Cascade is owned by Mark Calvert, a resident of California.

The complaint states that Livingston, Landrum, and Sharpe signed a promissory note in favor of Cascade for $951,147  in April 2014.  The loan had an annual interest rate of 12% and an interest rate of 18% in case of default.  The maturity date  was April 18, 2016.  Cascade alleges that the defendants "acknowledged" the debt was $1,030,370 on March 31, 2016 when a forbearance agreement was signed.  Cascade also claimed that it asked for and received the following conditions in exchange for the forbearance agreement:

1. payment of $114,632.00 on or before June 30, 2016 (Section 2.(e)(iii));
2. an increase in the interest rate of the Indebtedness to 18% per annum, effective June 1, 2016 (Section 2.(e)(iv));
3. payment of $750,000.00 on or before December 31, 2016 (Section 2.(e)(v));
4. payment of balance of the Indebtedness in full on or before March 18, 2018 (Section 2.(e)(vi));
5. the assignment of proceeds from tax incremental financing bonds payable by Madison County, Mississippi (Section 2.(g)).

Cascade charges that the defendants defaulted when a $750,000 payment due on December 31, 2016 was not made and the proceeds of the TIF bonds were not assigned as well.   The amount of the debt was allegedly $1,362,055 in November.  The plaintiff asked the court to appoint a receiver to take control of the project and issue a judgment against Livingston Holdings, Chestnut Developers, David Landrum, and Michael Sharpe for the entire debt.  Attorney Patrick McAllister represents the plaintiff.

The promissory note (posted below) states that Livingston Holdings, David Landrum, and Mike Sharpe promised to pay Cascade  $171,488 for professional fees, $60,000 for prior cash advances, $421,957 for the payoff of a Bankplus loan, $192,898 for two years of interest, and some smaller fees for a principal amount of $951,147.    The agreement was signed by Jill Landrum as a member of Livingston Holdings and David Landrum individually.

However, two of the defendants said not so fast, my friend.  Livingston and Chestnut claimed the debt is unenforceable against them because they never signed the promissory note. No one was "authorized" to execute a note for either company.  They accuse the plaintiff of obtaining the note through fraud.   The payoff of the Bankplus note is not a good deed but is rather proof that Cascade tried to obtain "leverage" over the defendants.  Cascade stands charged with coercing Landrum and Sharpe to sign the promissory note and forbearance agreement.  They even accuse Cascade of refusing to release properties to buyers unless the forbearance was signed.   The answer also states that Bankplus was going to foreclose on the project in 2014 when Cascade paid off the bank's loan.

Livingston and Chestnut counterclaimed and sued Cascade.  They charged Cascade with a fraud, breach of fiduciary duty, breach of duty of good faith and fair dealing, tortious interference with business relation, and fraudulent inducement. They ask the court to award actual and punitive damages.  Cascade replied in a motion to dismiss the counterclaim that the defendants can't just claim fraud took place but they actually have to state what fraudulent actions took place.   It argues they defendants didn't cite specific statements or actions by Cascade that were fraudulent in nature or tricked the defendants into signing the promissory note. 

Attorney Steve Smith represents Livingston and Chestnut.   Attorney Trip Barnes represents David Landrum.  The case is assigned to U.S. District Judge Louis Guirola and Magistrate Keith Ball.

The project also received a $200,000 grant from the Mississippi Development Authority.

Kingfish note: Mississippi Business Journal to issue a press release touting Livingston Township in 3..2...1...

Posted below by page number:
1. Cascade motion to dismiss
8. Landrum answer
12. Livingston & Chestnut answer and counterclaim
38. Amended complaint
44. Promissory note.


56 comments:

Anonymous said...


Cascade Capital is a company that helps troubled companies restructure financial and operating circumstances. In other words, they are sophisticated "Loan Sharks". They will take advantage of anyone in trouble. I have always thought David Landrum was in over his head...he is a financial advisor not a real estate developer. I don't know why people don't stick to what they are good at and leave the development business to the Developers.

A person goes to companies like Cascade when local banks won't lend money to you anymore...I knew this was going to happen at some point.

Anonymous said...

I guess the individuals who attend church at Livingston Church will never get their road back now.

Anonymous said...

Is anyone shocked by this? I'm only shocked it didn't happen sooner. Not the first lawsuit for these parties and it wont be the last.

Anonymous said...

Dead broke in other words. Why not get Primerica to bail you out?

Anonymous said...

Is anyone surprised by this?

Anonymous said...


It's the same with Jimmy Barksdale...he is going to let Buster Bailey and Andrew Mattiace drain his wealth down to nothing. Bailey and Mattiace are the only winners in this scenario---they pick up enormous fees for management and leasing and Barksdale most likely, has not seen a dime out of anything. Again, people need to stick to what they do best..........

Anonymous said...

Livingston was a con from the start. The Developer had 0 up front money.

Costco to the rescue said...

A possible solution would be to use this existing space for the new Costco. That would be a win-win. Except for the folks in Ridgeland awaiting the bargains on giant rolls of paper towels

Kingfish said...

Residential properties are a million or so when you combine lot price and home if I remember correctly.

Of course, our MDA gave them $200,000. That's what we need to do. Shovel out $200,000 to a high-falutin' development for rich folks while we bitch about a handful of able bodied people on Medicaid. Yeah.

Anonymous said...

Livingston is an awesome place. If you live out that way, it is a needed source of entertainment without the drive "into town". I am not rich, nor or my friends, and we love it. I think Landrum was wanting to do something for the community and it only made financial sense to go high end, I guess that wasn't enough either. But, lets not bash a guy for doing something good.

Anonymous said...

No more Deana Carter concerts?

Anonymous said...

I shaved my legs for this?

Anonymous said...

12:22, take your own advice and stick to whatever it is that you do best, if anything, as opining about Mr. Barksdale is not one of them.
12:23, same advice.

Anonymous said...

@12.59 ah the "build it and they will come approach." Wannabe developer 101.

Anonymous said...

This is not exactly an enormous sum of money to be fighting over in light of what’s out there......

Wonder if there is more to come?

Anonymous said...

typical Mississippi "champagne taste --beer budget" fiasco!!

Anonymous said...


1:40,

I have the utmost respect for Mr. Barksdale. I was giving my opinion regarding the honesty of his two partners. I don't need you to chastise me for being honest. Anytime---Anyplace !!!!!!

Anonymous said...

Attn 2:52 "Lighten up Francis"

Anonymous said...


Anybody that agrees to a 12 % APR and an 18% "retroactive punishment rate" is a dumbass in the first place.


This deal was never designed to be successful. Just like so many others.......

Anonymous said...

They did get further than Harborwalk before failing, but....

Anonymous said...

So many of these high dollar developers are probably drowning and trying to make a nice project just to take money from someone so they do not drown. If your pencil has to be super sharp when you pencil your deal, don't do it.

Anonymous said...

Are they still going to have the Farmers Market? There is nothing like a $3 cucumber.

Anonymous said...

I don’t get it, long drive for mostly an idea. The gathering was a joke.

Anonymous said...

Landrum is a good guy and just wanted to do something good for the community.

What a shovel full of bull-shit. He's made a living off conning people into believing his so called financial-advice. And for the past six years he's been shuffling the shells so fast you'd never realize the absence of a pea.

He's a huckster and a carnival-barker and is about as worthless as one of the many styrofoam go-boxes lined up against the fence on 22 alongside this development.

Look for Madison County to come bail him out like they did Lost Rabbit.

Anonymous said...

18% interest? YIKES!

This will go down as the Farish Street of Madison County.

David Kaufman, your turn.

Anonymous said...

"This is not exactly an enormous sum of money to be fighting over in light of what’s out there......

Wonder if there is more to come?"

February 5, 2018 at 2:10 PM

My thoughts, exactly! At first I was wondering if those numbers didn't reflect the new fad for leaving off zeroes, for the sake of brevity. One hundred fourteen thousand is what you pay, these days, for a nice SUV.

And the total indebtedness listed here, is what you pay for ONE really nice house - even in Mississippi. Considering the pictures of the fancy mustard in the General Store, I'd have expected the project's numbers to be a lot bigger.

So, if the guy behind this is a conman, he's a SMALL-TIME conman. But truly, the first mention of plans for Livingston left me sure it was going to be a big mess. Some jackass was describing how you could have weddings at the church, and then "everybody" could walk across the square for the reception in the City Hall (or something like that). All it needed was Paul Ott Carruth singing in the background. The spiel was seriously slimy and manipulative.

Anonymous said...

The Gathering is very good, especially at lunch. County Seat was very good at first and sucks now. And the chef just left. From what I can tell the workout deal L.I.F.E. has vanished. Liquor store is nice, as is the chapel.

Anonymous said...

This place will fold and it’ll be another 15 years before it picks up.

Like Annandale in 1982

The Township in ridgeland

Anonymous said...

Farmers Market my butt! Check out the money trail back through MDAC and their cronies, then you will find the real crooks.

Anonymous said...


The development business is a very tough way to make a living and you had better be up on your game. I do not know of a single development that has not had problems...the developer has to have brass balls to even survive.

One problem is...there is so many individuals that do not have a clue as to developing a subdivision or retail center. Some of the people are still working with daddy's money which will run out at some point. Isn't that right Mr. Bailey ?????

Anonymous said...

Livingston has brought a lot of joy and family fun to an area that lacks entertainment. It is a great destination place easy to get to. The Gathering is exceptional. I hope they succeed and continue a great service in our state

Anonymous said...

We should turn 463 into a canal, then take boat rides between Livingston, Lost Rabbit, Harborwalk, the two rivers project, Jackson Entertainment District, and Farish Street. We could be like Venice with cold beer.

Anonymous said...


WOW 9:54, what a great idea..........I know you were kidding but there is someone out there that will try to make your scenario work....that is the problem !!!!!!

Anonymous said...

david landrum, is this the little pretty boy who ran against gregg harper back in 2008? and it was later proven he was not even a voter in the district he was running for? the same guy who ran on the "im not a lawyer " platform? the same guy who ran straight to a lawyers office when he thought his "right " to commit election fraud was exposed?... clowns like this little pretty boy cant even run their own lives, yet want to go to washington and try to run yours.

Anonymous said...

"One hundred fourteen thousand is what you pay, these days, for a nice SUV."

If the fellow in silk draws, who posted that, thinks anybody believes that bullshit, here's your sign! You are now cleared for takeoff!

Anonymous said...

I am a native Mississippian and have really enjoyed watching Livingston grow. It is a great place that provides an area that is family oriented but also a place where you can have a nice date night. The developers of Livingston seem to really have attempted to try and capture the essence of the "Old Livingston". For a "Town" to survive, the community needs to embrace it and support it. I travel all through Mississippi and it's sad to see the state of our small towns in comparison to the small towns in other states that are being renovated and are doing great. I guess instead of throwing stones at glass houses, maybe some of you should get off your backside and try and do something to promote the communities in your state.

Anonymous said...

@1:31 in theory that's great. The problem arises when you start robbing Peter to pay Paul in an attempt to keep up with the Joneses.

When you have Barksdale money you can have failing real estate assets, otherwise this is what happens.

Anonymous said...


2:02,

The fact is you have more of the robbing Peter to pay Paul situation than you have a clean profit oriented project. It very seldom works in the developers favor. I believe every homebuilder gets in the hole from time to time and uses money from other projects to pay bills---if they tell you different they are lying. I once knew a homebuilder in South Louisiana that was 37 houses behind, needless to say, he finally went bankrupt. General Commercial Contractors are the same way, that's why they always have to have several projects going---even the big boys. Nothing is as it appears..........

Anonymous said...

I'm sure the Brandon amphitheater is putting the hurt on the concert schedule at Livingston. Just wait until Ludlow gets one. Concerts everywhere! Economic progress! Build another mall!

Anonymous said...

I went out there today, he didn't get much for a million.

Anonymous said...

February 5, 2018 at 2:52 PM
You OBVIOUSLY know NOTHING about this partnership so keep your mouth shut. You don't need to utter your uneducated opinion "Anytime---Anyplace !!!!!!"



Anonymous said...

"Livingston has brought a lot of joy and family fun to an area that lacks entertainment."

Why would that area have any 'entertainment'? Nobody lives in the area.

Anonymous said...

To the guy talking about Jim Barksdale making bad investments... or losing his wealth,..

You have, literally, no idea what you’re talking about. You don’t have personal knowledge of the contracts in place, the deal structures, incentives, or cash flows. Jim is a smart like a fox, bud.

If you don’t think renassiance is a performing asset, then you’re as dumb as I think you are.

Anonymous said...

Hey 12:21, if YOU pay $114,000 for an SUV then YOU'RE on the stupid end! Most of the people that do that and want to live in developments such as this are above their heads in debt. Wife stays home, husband works his ass off so she can ride in that SUV and he ends up stressed out, kids are out of touch with how life really is and there you have it....need I say more?

By the way, so they have a swingers group out there with pineapples on their doors yet?

Anonymous said...

We love Livingston! The Farmers Market, The Gathering, General Store.
It will continue to be a great destination for Mississippians!

Anonymous said...


9:38,

It's not Barksdale you need to be worried about....it's the other two partners that will skin him alive....mark my word !

Again, I have the utmost respect for Mr. Barksdale.

Anonymous said...

February 6, 2018 at 7:37 PM, "Nobody lives in the area." ??? Are you kidding? There are at least 5000 homes (based off of current USPS residential delivery route data) within 10 minutes of the 22/463 intersection, and more homes are constantly being built.

It's amusing to read all these comments. Most of y'all seem to have no affiliation with or insight into the topic at hand. Which reminds me "Civil war breaks out in Livingston" is such a click-bait, drama-queen title. LOL

Thanks for the laughs, children. I'll see you all at church.

Anonymous said...

So, David Landrum claims he DIDN'T sign these documents. Kinda like he claimed he (and his wife) DID SIGN those documents back in 2008 when he got caught lying about his voting history. And when he tried to pass the blame for his stupidity, he hired a mouthpiece (Dale Danks) to continue his cascade of lies and slander.

Don't know why this little million dollar problem is a problem for him - all he needs to do is go back and restart his ponzi/pyramid scheme (Primeamerica) that let him live the Life of the Rich and Famous. Of course, once that all played out he decided to fleece the feds out of money claiming Livingston was a "Community Facility" - a courthouse. Nothing but another scam, this one assisted by the wonderful Madison County supervisor leadership.

Guess that pyramid is now collapsing - after having to borrow short-term money at 12% guess he had screwed everybody around willing to be a partner to his schemes.

Guessing this effort to dig himself out of a hole will work as well as that famous spring dig of 2008. Not just anybody can drop from 50%+ to third place in less than two weeks!

Anonymous said...

"5000 homes within ten minutes of the intersection"?

Even if that were true, the point was made that there was no entertainment there and was needed. And even if your assertion were true, assuming there's an average of four people in each of your 5000 homes who are deprived of entertainment, how many of those 20,000 people are driving to The Town Of Livingston to be entertained?

Ophelia said...

David Landrum is an oleaginous spheroid malefactor. That's "slime ball crook," to put it in terms he might grasp...anyway, Livingston is doomed, charm-wise, just as the Township is. Quirky, vibrant, varied, charming communities simply cannot be manufactured artificially. They must grow and evolve naturally, over decades, even centuries. Sticking a few elements of a real village out in the middle of nowhere and crying it up as a "community!" is commercial hucksterism at its tackiest. It's no more a community than Stouffer's lasagne is a home-cooked meal.

Anonymous said...

@7:01
Every concert I've been to at Livingston has been packed. The locals really love the place. Please do us all a favor, and stay in Jackson.

Anonymous said...

The Township is a huge success. It took a little while, but now it is growing and prospering. I wish I had the money to live there.

Anonymous said...

February 7, 2018 at 10:30 AM Sorry you weren't in it's to
Play in the partnership. Your jealously is showing.
And Ohhhphelia, sounds like you e never been to Livingston from any direction to see all of the many developments and residences that frequent the establishments there. Not nowhere to us!!!

Anonymous said...

The owners of County Seat (Jeremy an Abby Enfinger) are good people. They worked their butts off every day for nothing! It about killed Jeremy to keep the place alive as long as he did with no help from the town! Now, they're gone too!! County Seat will never be the same. I hope Abby and Jeremy do great things wherever they are.

Anonymous said...

Why do we, the taxpayers, sit on our hands as MDA throws out money to these sharks to pad their wallets? Everyone knows Landrum has The Guv in his hip pocket. Follow the money. MDA kicks in 200k. MHP doing traffic control at Livingston events, MDOT adding turn lanes and resurfacing the entrance, resort status, and on and on. Landrum was broke but bundled other people’s money for Pheel and his foundation in exchange for access.
Kingfish:
How much money is Landrum linked to in the Pheel organization (campaign funds and foundation)?
Since 2012 what money has been handed out by MDA?

Anonymous said...

Sharpe, Landrum, Madison County Supervisors, Other recognizable government names in Madison county. Weren’t the involved in shady real-estate deals back in the 80’s and 90’s? Looks like they are at it again.

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