Jackson Jambalaya

Porter Bingham's trial is continued yet again.  A grand jury indicted him recently for bank fraud, money laundering, and wire fraud that were allegedly committed in a $2 million bond sale for Rolling Fork in 2015. The case has been continued five times. 





The story began back in 2015.  JJ reported on January 5, 2018:

Rolling Fork was interested in financing infrastructure improvements with bonds.  The city hired Malachi Financial Products of Roswell, Georgia  to be its financial advisor.  Malachi is owned by Porter Bingham.  Mr. Bingham recommended that the city sell bonds to raise $2 million.  However, the bond sale was lowered to $1.1 million due to Rolling Fork's limited borrowing capacity. 

Most aldermen and councilmen lack the financial expertise to understand bond deals and are thus ripe targets for some good ole fashioned plucking. Rolling Fork was no exception as the bond pimps proceeded to loot the bond sale.

Check out the fees* on this bond deal:

Malachi Financial Products: $55,000
Bonwick Capital Partners (Underwriter0: $130,000
Chambers & Gaylor (Bond counsel): $25,000
Mississippi Development Bank: $2,500
Balch & Bingham: (MDB Counsel): $5,000
Allen Woodard (Issuer's Counsel): $10,000
Trustmark (Bond Trustee): $2,500
Jackson Advocate: $150
Spence Flatguard (State bond attorney): $1,000
Munideals, Inc: $1,200
Total: $232,349. 
Percentage of Bond issue: 21%

 Rolling Fork has a population of 2,250. The city could have simply obtained a  million dollar loan from the bank. Only the services of a bond counsel and city attorney would have been required.   However, Mr. Bingham and crew talked the town into obtaining a $2 million bond issue through the Mississippi Development Bank.  Going through the development bank meant an underwriter, state bond counsel, issuer's counself, and other services and thus fees were required.  The more the merrier as everyone got a piece of the pie.

The Securities and Exchange Commission sued Malachi and Porter Bingham for fraud last year for fraud and illegally acting as a municipal financial advisor.  The SEC disclosed he never passed the required Series 50 test to become a municipal financial advisor although passage was not required until September 2017.  He also took a kickback from an underwriter he recommended to the town.  The SEC permanently banned Bingham from the municipal bond business and suspended the underwriter's license for six months.


Bingham faces the following penalties:

* Bank Fraud:  Prison sentence of 30 years or less and/or fine of $1 million or less.
* Wire Fraud: Prison sentence of 20 years or less and/or fine of $250,000 or less.
* Money Laundering: Prison sentence of 10 years or less and/or fine of $250,000 or less.

 Attorney Philip Hearn represents the defendant. 

  Despite the hundreds of thousands - maybe millions - of dollars earned in fees over the years, Bingham faces prison over a pittance of $20,000.

Kingfish note: Bingham and his merry band of bond pimps preyed upon majority-black governments for years in Mississippi.  He would swoop in as the financial advisor promising money honey while Tony Stovall (Rice Financial Products and then Bonwick) and Tony Gaylor (as bond counsel) would surf on his coattails into the deal.  Prime examples of this posse's plundering are the 2015 JPS and Canton School District bond deals.  Mr. Bingham was also the financial advisor on the Siemens contract as he walked away with a fee of $182,000. 

Most of the supervisors, school board members, and aldermen lack any financial expertise whatsoever so rely upon these guys for their advice they did.  The advice means they get cleaned out while everyone gets paaaiiiiid.  Woe be the government that wised up and kicked out these scoundrels.  The bond pimps got on WMPR on Friday nights and proceeded to play the Uncle Tom card, trashing said governments for not lining their pockets, er, make that helping minority businesses.  Meanwhile, governments around Mississippi are discovering to their chagrin the money honey turned into fool's gold as they are forced to pay the piper when the interest rates on Bingham's deals blow up.

The case has been continued several times for what is a relatively minor indictment.  Did Bingham flip? Stay tuned. 




Earlier Posts
 Porter Bingham indicted.
 Harvey's time bomb blows up on Antar.
SEC bans Porter Bingham & Malachi.
SEC suspends underwriter on Rolling Fork bonds.
The rape of Rolling Fork.
SEC sues Malachi for Rolling Fork fraud. Says muni advisor was not a muni advisor.
School bonds are...... golden showers.
Malachi & Blackmon gouging Rolling Fork?
Malachi wants half a million dollars to draft budget & review JPS finances.
The suicide of Hinds County, Part II
Malachi "audits" Hinds County finances.
Siemen's Contract & Fees
Hinds County pays Malachi $66,000 for review of Byram-Clinton corridor project.
Hinds County Supes vote to pay Malachi to study budget.
Byram-Clinton corridor project in trouble?
Hinds County rehires Malachi
Major fireworks at Hinds BOS today.
Porter made over half a million dollars on bond swap.
Jackson pays nearly $500,000 to save $1.1 million.
Uh-oh, the Bond Pimp is back.
Jackson's investment advisor finally decides to register.
Jackson paying Financial Advisor $80,000.
Jackson will pay extra $8 million to refinance bonds.
Clarion-Ledger on Convention Center Hotel Deal