Once the money man for many local politicians, a disgraced Porter Bingham faced justice yesterday in federal court as he pleaded guilty to wire fraud. The former municipal financial advisor ripped off the city of Rolling Fork for $33,000 in a crooked bond deal back in 2015. His former clients included the city of Jackson, Jackson Public Schools, Hinds County, and Canton public schools.
The maximum sentence he faces is 20 years in prison and a $250,000 fine. However, he will probably serve less than a year in prison.The SEC revoked his license several years ago. 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 counsel, and other services and thus fees were required. The more the merrier as everyone got a piece of the pie. Read all about it in this earlier post.
The Securities and Exchange Commission sued Malachi and Porter Bingham 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.
Attorney Philip Hearn represents the defendant.
Kingfish Note: This little group has been preying upon majority-black
governments for years in Mississippi. Porter Bingham would swoop in as
the financial advisor promising all sorts of financial goodies 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. This earlier post is a great example of what they did to those school districts.
Most of the supervisors, school board members, and aldermen lack any
financial expertise whatsoever so rely upon these guys for their
advice. 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 Pimp and his crew would get on WMPR on Friday nights to play
the Uncle Tom card and trash their opponents for not helping minority businesses. JJ has covered Bingham's hijinks for many years.
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
More on Hinds County interest rate swaps.
19 comments:
I am surprised he got an honorable attorney to represent him and not a slimeball like John Reeves.
Saddest of all, they can still play the Uncle Tom card and the low IQ voters in many of these areas will defend the thieves because skin color is the only thing matters.
And MSM is complicit because they profit handsomely from the narrative.
Go USA! Equality for all!
grifter-
Was he trained by Jesse Jackson and Al Sharpton, the fake reverends?
Most minority led administrations would rather be fleeced by incompetent,dishonest blacks than do business with whites. This is the basis for many of the problems in Jackson.
Same with Hinds Co. BoS & Election commission. When does boy auditor report something?
Can someone take an action item to contact Lee O. Sanderlin and alert him that there's a fresh story here at JJ to rip off? Thanks.
Most minority led administrations would rather be fleeced by incompetent,dishonest blacks than do business with whites. This is the basis for many of the problems in Jackson.
Let's be clear, misuse of government funds is not a race issue. Shad aint just been arresting black folks. As a matter of fact, the largest criminal investigation over misue of government funds right now is a bunch of non-blacks.... I pretty sure Nancy New and crew aint NAACP members.
When he gets paroled he can always buy MetroCenter and sell luxury condominiums overlooking the new Ferris Wheel.
Phil Bryant was the whistleblower.
10:54 It may seem difficult for whites to understand, but black people have great difficulty trusting you. I wonder why? These black elected officials who know little about finances, know a lot about the past and they would rather take a chance on a slick black hustler than to rely on the same people who kicked them in the ass for 300 years. It's sad but true. It will take time.
Isn't this old news?
Meanwhile: Who called John Reeves a slimeball? He is the only person protecting Madison from Purple Peacocks, Alligators, Rabbits and Kangaroots.
The attorneys at Chambers & Gaylor have over two decades of experience representing individuals in matters involving automobile accidents, truck and eighteen-wheeler accidents, workers compensation and wrongful death.
3:44. A perfect description. Actually it denigrates slimeballs.
2:36 justifying graft.
Sadly, 1:19 is correct.
I can say with absolute certainty that Porter Bingham is the the reason that Jackson does not have a convention center hotel and is still strapped with millions in debt.
When will sentencing be?
Plenty of whites have, and still do rip off everybody in the entire world. Don't make it a race issue or else we must tell the truth about what dastardly white villains have done throughout human history. The body count continues globally across generations, but i'm sure the disingenuous commenters here already know it. Black people are hoping to avoid unscrupulous charlatans by supporting someone from their community. Unfortunately, Bingham was trained (un)well by his early Wall Street mentors.
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