Attorney General Lynn Fitch issued the following statement.
Last Tuesday, November 29, 2022, upon appearance by Attorney General’s Office prosecutors, a grand jury in Leflore County, Mississippi returned a true bill charging John Coleman, former CEO of Express Grain Terminals, LLC, with five counts of making false representations to defraud government and one count of false pretenses. My office will continue to prosecute this case to the fullest and to work with other state and federal agencies, including the U.S. Attorney’s Office of the Northern District of Mississippi, the U.S. Department of Agriculture Office of Inspector General, the Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Mississippi Department of Agriculture and Commerce, to ensure the best possible outcome for the individuals and taxpayers harmed by the underlying fraud in this case. We will not make further public comment on this matter while it remains in active litigation.
Kingfish note: That was the press release, now for the actual news story.
A Leflore County grand jury indicted former Express Grain President John Coleman for five counts of making fraudulent statements and one count of fraud on November 29. Express Grain operated grain elevators in Leflore County. The company collapsed last year and filed bankruptcy. Bankruptcy claims were approximately $200 million as Express Grain looted farmers and bankers alike.
The first four counts of making fraudulent statements involve Coleman submitting phony audits to the Mississippi Department of Agriculture and Commerce to obtain a grain elevator license for Express Grain in 2018, 2019, 2020, and 2021. Count I states:
On or about June 7, 2018, in Leflore County, Mississippi, and elsewhere, Defendant, JOHN ROBERT COLEMAN, did willfully, unlawfully, and feloniously, with intent to defraud the State of Mississippi and Mississippi Department of Agriculture and Commerce, make materially false, fictitious and fraudulent statements or representations and make and use a materially false document knowing the same to contain false, fictitious and fraudulent statements or entries, to wit: Defendant, JOHN ROBERT COLEMAN, did make materially false and fraudulent application for a license to operate grain terminals in Leflore County, Mississippi, with the Mississippi Department of Agriculture and Commerce, by altering the 2017 financial audit report prepared by Home LLP, without their knowledge, by removing the "Emphasis of Matter Regarding Going Concern" paragraph and altering the accompanying financial statements thereby concealing significant financial instability and operating losses which had a material impact on the "decision of the Mississippi Department of Agriculture and Commerce to renew and issue the required license to operate, against the peace and dignity of the State of Mississippi, in violation of§ 97-7-10 of the Mississippi Code (1972)."
Bur for the year, the other four counts use the same language. The phony audits hid over $20 million in losses over five years. Express Grain also used the bogus balance sheets to obtain $750,000 from the Mississippi Development Authority in 2020.
The funding was supposed to create 100 jobs. (Source: P.12 of MDA's 2021 Incentives Report). The Greenwood-Leflore-Carroll Economic Foundation sponsored the grant.
The funds were supposed to fund improvements at the Leflore County facility. The agreement states:
The Company commits that the Project shall make an investment of at least $18,017,250 and create at least one-hundred (100) new direct full-time jobs at the Mississippi Project Site, in addition to the seventy-nine (79) existing full-time jobs, for a total of one-hundred and seventy-nine (179) full-time jobs located at the Mississippi Project Site in Leflore County, within three (3) years of the date of this Agreement ("Job Creation Commitment") and must maintain those jobs for a two (2) year maintenance period ("Job Maintenance Commitment").
Express Grain would repay MDA for each job that was not created. Express Grain had to maintain the employment for at least two years or else it would have to repay some or all of the grant.
However, Express Grain also had to submit financial statements with the grant application. Count V of the indictment states:
"On or about on January 31, 2020, in Leflore County, Mississippi, and elsewhere, Defendant, JOHN ROBERT COLEMAN, did willfully, unlawfully, and feloniously, with intent to defraud the State of Mississippi and the Mississippi Development Authority, make materially false, fictitious and fraudulent statements or representations and make and use a materially false document knowing the same to contain false, fictitious and fraudulent statements or entries, to wit: Defendant, JOHN ROBERT COLEMAN, did cause Community Inspired Capital Development, LLC, his intermediary, and without their knowledge, to a make materially false and fraudulent application for a grant from the Mississippi Development Authority to make capital improvements to his facilities and equipment by causing CICD to submit, along with his application, materially altered 2017, 2018 and 2019 financial audit reports prepared by Home LLP, without their knowledge, to the Mississippi Development Authority thereby concealing significant financial instability and operating losses which had a material impact on the decision of the Mississippi Development Authority to approve and issue said grant...
There is also the matter of the farmers who were conned by Coleman. Just read Count VI (Fraud):
"On or about May 26, 2021, through September 29, 2021, in Leflore County, Mississippi, and elsewhere, Defendant, JOHN ROBERT COLEMAN, did willfully, unlawfully, and feloniously, with intent to cheat or defraud another, designedly, by color of false pretense, obtain from any person personal property and valuable thing, with a value of Five Hundred Dollars ($500.00) or more, to wit: Defendant, JOHN ROBERT COLEMAN, did induce Mississippi" "farmers to deliver and store their crops with Express Grain usmg false and fraudulent representations and thereafter sold and pledged their crops and failed to remit payments to the farmers in an amount exceeding $50,000,000...
The Attorney General is prosecuting the case. Federal agents raided Coleman's home and office in February. It is probably safe to say a federal prosecution is forthcoming. Stay tuned.
18 comments:
But the AG has done NOTHING with DHS, and the feds have only indicted John Davis, so we'll have to wait two years for anything from them.
I guess Mr. Coleman didn't pay his dues for GOP or Republican Women's Associate membership.
For MS this is the tip of the iceberg. It never stops.
Mississippi Department of Agriculture and Commerce Commissioner Gipson needs to issue an official press release that Mississippi's corn and beans are "the most tested and inspected corn and beans in America!"
"All Mississippi beans and corn are guaranteed to be where they are, until they aren't. We don't take their word for it anymore, and our inspectors do know what beans and corn look like. Folks can take that to the bank and borrow on it!"
I’m shocked there is a lawyer in the AGs office who can actually indict anyone
financial fraud is the only growth industry in mississippi
It's my understanding that the Ag Commission only Requires a $One Million Dollar Bond to operate Express Grain.
How the Hell does Express Grain get that far in debt with only a $one million dollar Bond???
It's obvious to me the Ag commission was NOT DOING IT'S JOB!!!
No way in Hell this shoulda happened!!!
If I was a farmer I would initiate a Class Action Lawsuit against Andy Gipson & the Mississippi Ag Dept!
The grant/loan was not only fraudulent with altered docs but in May of 2020, they went on a spree of terminating higher paid and older employees, this breaching contract in that manner as well. PPP loans were also disbursed under fraudulent pretenses as 2 were taken out as these termination sprees were going on.
Lynn, can sue whomever, I’m just waiting and praying that she dont get elected again! Evelyn aka lynn fitch has to go! She hasn’t done anything personally while in office but show up for pictures, Evelyn doesn’t respect the voters of this great state of Mississippi!
Evelyn, it’s time for you to spend time with your kids and grands, they need you more than the politics in Mississippi!
It will be a crying shame if Lynn Fitch is re-elected to her current position or if she winds up in any other position in state government.
4:07 -- sounds like you're a little butt hurt from being asked to leave? Nevertheless, I have two questions....
Is the pay there to attract experienced prosecutors or pull them away from the DA offices? No. In fact, it is the opposite. Do the research, look how many times the DAs/ADAs have received raises vs. raises for AG and assistants, special or not.
Did the AG's office flood the courtrooms with indictments under the prior administration? Be careful answering this one, there are a few of us bottom dwelling criminal defense lawyers here.
Lastly, if you were happy working under the prior admin at the rate you were being paid and you are unhappy now, send me a resume I could use some cheap labor.
Okay. Great. But if you bring anybody to trial on this, don’t expect me to believe a goddamned word your FBI witness has to say.
Dems may not care about candidate quality (see also Fetterman) but most Republicans do.
The MS GOP better wake the eff up, because I am not voting for Lynn's useless ass again.
Count VI is insufficient as a matter of law to charge the crime it purports to charge (false pretense) for at least 3 reasons.
Didn’t our AG win the Dobbs case in the U.S. Supreme Court?
6:42 am
You clearly have been contesting lots of traffic tickets in Morton to not know the drain of experienced lawyers which resulted in Lynn’s arrival.
It’s more of a fashion show for tv spots up there now than an actual legal body.
That’s how tate wants it though….and Brett too it seems!
You keep those city cops straight now and if you need some labor you might check with ole Kevin…when he’s not fighting the law he seems to be fighting to keep associate pay levels on the floor….so to speak …ha!
Count VI is insufficient as a matter of law to charge the crime it purports to charge (False Pretense) for at least 3 reasons.
Didn’t our AG win the Dobbs case before the U.S. Supreme Court?
4:37 -- playing political games with appointments...The SG position was created for this....it's the way of our governments -- fed and state.
to answer your question, ima say our AG was still trying to find someone to serve on the China suit.
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