Once the money man for multiple governments in Mississippi, a disgraced Porter Bingham will serve four months in prison after pleading guilty to fraud in U.S. District Court. The court docket states:
Count 1, Defendant sentenced to 4 months' imprisonment, followed by a 2-year term of supervised release, 4 months of which will be served on home detention. Defendant is ordered to pay restitution in the amount of $33,000 and to pay a special assessment fee of $100. Counts 2 and 3 will be dismissed.
Bingham was the financial advisor for numerous governments such as Jackson, Canton Public Schools, JPS, and Rolling Fork as he made millions off of bond deals, some of dubious financial value. He skated away for years as he pocketed the fees while his clients put up the debt but in the end, it was good ole fashioned greed that brought him down.
The former municipal financial advisor ripped off the city of Rolling Fork for $33,000 in a crooked bond deal back in 2015.
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.
A federal grand jury indicted Bingham for wire fraud, bank fraud, and money laundering in March 2019. He pleaded guilty to fraud a year ago.
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 as they trashed their opponents for not helping minority businesses. JJ has covered Bingham's hijinks for many years.
Porter Bingham Posts
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:
There are a lot more names (several well known) that should be reported in this article!
I would spend 4 months in jail for the amount of money this guy raked in on his schemes.
It may be that the representatives of these majority black cities are used to being preyed upon and don't see a 21% issue cost as exorbitant. Have you seen what the payday lenders charge? Also, some of these elected gov't representatives have the attitude that it's not "Their money" so who cares if the costs are out of line.
Or trading gold bars for gray bars.
9:06
name em!
This hustler gets the last laugh. He will serve an easy four months and come out of jail ready to spend his money finally free and clear. But make no mistake he's not the first to do this, bank fraudsters and gangsters have been doing the same for years.
@9:51 AM
Kingfish won’t approve the comment. He prefers that you anonymously spoon-feed him leads so that he can “break” the story and (hopefully) legitimize his little gossip blog.
Nope. No other names to approve. Keep trying.
What exact gossip have I published? You keep saying gossip blog. Name some examples.
Will he be out soon enough to hep Deppity Pheel and Bart Farr with their money?
KF, thank your for covering. Too often the public narrative is the “state doesn’t help us” side of the story. People need to also know that too frequently self-inflicted decisions, such as poor financial planning by Jackson and Hinds are significant factors in today’s [water/sewer/jail/whatever] mess. Not manny clean hands by the local decision makers for the last 20 or so years.
Say what you want about Frank (and there’s plenty to be said), he sidelined Bingham/Stovall and crew during his four years.
He only got 4 months? He must have been sentenced on only 1 count of wire fraud. Hardly a deterrent for those paying attention.
Very doubtful this makes it past the censor.
Kinda funny that KF says that "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" but the City of Jackson city council members did the EXACT same thing by relying on the Siemens water meter pimps. But the COJ council gets blasted by this blog for relying on those pimps in a well-orchestrated fraud.
Hmmmm....
Guess you missed all those earlier posts at the bottom of the post.
@11:38 AM - try reading below the fold, douchecanoe. KF has it covered 100%.
Porter Bingham was indicted almost 3 1/2 years ago in March, 2019. His case was continued about 12 times “in the interests of Justice” I am told that is prima facia evidence that Porter Bingham sang like a canary in order to get a light sentence. Looks like the Feds rewarded Porter Bingham with a light sentence. There is very likely a new Federal Grand Jury hearing evidence on whoever Porter gave up in order to save his own hide. 🐀
I don't know if Porter Bingham is ratting out people, but I did see a truckload of cheese being delivered to his house.
What's sad is Tony Gaylor is Hinds County Board Attorney again and back to his old tricks. He don't know the law, and it's sad to see him and Kenny Wayne Jones destroy Hinds County.
Verne Gavin and Bobcat McGowan both should resign, they too slow for Gaylor, Calhoun and Jones..
I love this quote from the article. "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."
Ah, the US Government. Hammer someone for committing a crime that wasn't a violation at the time. The SEC must be hiring from FINRA and the FBI.
Sure he is a bad guy. But don't be unethical in pursuit of the unethical.
7:07 for God's sake keep up. Google the crook. He is one crooked, slick POS.
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