This post is reprinted with the permission of the Taxpayer's Channel in Greenwood.
Express Grain has dropped its appeal of the revocation of its licenses to carry on business as a grain warehouse and grain dealer. The licenses were revoked by the Mississippi Department of Agriculture and Commerce after a finding of fraud committed by Express Grain in the mandated audit reports which were provided by EG to MDAC for its license renewal in mid-2021.
Commissioner Andy Gipson revoked the licenses after conducting a hearing at which evidence was adduced that doctored audit reports had been submitted to support the license renewals. MDAC discovered the falsifications after obtaining original and true copies of the audits from EG's auditing firm Horne, LLP.
To see our extensive reporting on MDAC's license revocation and EG's appeal to chancery court, click here: Express Grain appeals MS Department of Agriculture decision voiding its warehouse licenses for fraud
After that, both the Mississippi Development Authority and UMB Bank stated in court filings that EG had also provided them with falsified audits, which they discovered based upon MDAC's discovery. To read about UMB Bank's claims of fraud, click here: UMB Bank levels new fraud accusations against John Coleman and Express Grain
MDA had provided a grant of $750,000 to EG based upon the falsified audits, while UMB Bank had extended loans totaling $71 million based (in part) upon the same forged audit reports. See our reporting here: MDA sues bankrupt Express Grain, claims falsified audit reports were submitted to obtain $750,000 grant
EG's bankruptcy attorney Craig Geno requested that the appeal be dropped because, since selling all its assets, it can no longer be in the grain business:
As a result, Appellant [EG] no longer has any possibility of an active, ongoing grain storage, grain warehouse or gain processing operation since it has sold all of its rights, title and interest in and to all of those business functions it previously carried out.
EG's motion to dismiss its appeal may be seen in full here: Motion to Dismiss Express Grain Appeal
Chancery Court Judge Willie J. Perkins Sr's order dismissing it may be seen here: Agreed Order to Dismiss Express Grain Appeal
There are other signs that EG is about to finish up its long, arduous bankruptcy case. Yesterday, Geno requested, and the bankruptcy court granted, a seven-day extension on the time period for EG to submit its Disclosure Statement and Plan of Re-organization to the court. See EG's motion here: Motion to Extend Exclusivity Period
The Plan of Re-organization, which is now due to be filed on August 15, 2022, will provide details as to how the remaining assets, mostly cash of around $59 million, will be used to pay off creditors. Almost all of the cash has already been approved for payment of debts to the bank and financing companies, with $9.2 million to pay a small amount of the $48 million owed to farmers who delivered grain for which EG never paid them.
The plan should finally reveal how most of EG's creditors will receive little to nothing for the $218 million in claims filed against the company in the bankruptcy proceeding. EG appears to be liquidated at a total cash value of less than $85 million, most of which will be going to the bank and financing companies.
16 comments:
If only the farmers could claw back that money held in the Cayman Islands, Switzerland, or the British Virgin Islands.
How/why aren't the Colemans in jail?
$218 million is one of the biggest thefts ever in this state. You will not find a more corrupt place on this planet than Carroll and Leflore counties.
to 1;24........tell us mr money smuggling expert...............just how did express grain get ''that money'' too all those exotic destinations you just listed?
simple cotton choppers like me want to know.
Good, we need to save what money we can at this point.
5:58. Can you offer some specifics on your bold claim? As a Leflore County native who spends a lot of time in Carroll County, I’d like to know what I’ve been missing.
@6:52 PM - I actually do know how it is done, but if I reveal it here everyone would do it. I have been to all three locations.
How's Big Hat No Cattle Andy the Ag Commissioner doing with inspecting the remaining state regulated grain warehoues and dealers?
You know, the ones that haven't yet gone bankrupt?
5:26, the Coleman's aren't in jail because (at least so far) there have been no criminal charges filed. Incompetent business operations - on the part of the Coleman's or of the farmers - is not criminal.
Now, of course, if you have some special knowledge, kinda like 1:24 implies that he has (which of course he doesn't, other than spewing his frustrations) then bring it forward to the authorities. I'm sure they would be glad to prosecute these folks who screwed the farmers, the banks, and all the other creditors.
@10:14. So is forgery and altering of a signed audit just “incompetent business operations”? How about willfully and knowingly misstating facts to your customers in order to steal their crop?
If the business is in such bad financial shape, how does Michael Coleman have $5000 to just give away monthly? It sounds like they took the money and left everyone else holding the bag?
They both need to be “taken to the train station”.
The Colemans need to "go for a ride."
to 8;37..........now you want to play ''I've got a secret''
so what brokerage house or bank do you work for mr professional money smuggler?
or are you just broadcasting from your apartment in your mothers basement before you head out to cash your SSI disability check?
@5:58 neighboring Holmes county is pretty bad. The local Sherrif extorts hunting clubs for campaign money for his hedge of protection against the thieves and robbers, who he most likely knows personally. If you don’t donate, you dont stand a chance at getting a return phone call.
12:01 PM Holmes is bad too but a completely different group of people. Carroll and Leflore are the same tight crime network.
7:57 PM Dude if you are a native you know who I am talking about in Carroll and Leflore counties.
Beef plant, coal plants, grain companies…. Seems everywhere the government “invests” or grants money ends up being a boondoggle and a scam…. Maybe the MDA needs auditing or we need more oversight of how our tax dollars are given away to political friends???
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