Tuesday, September 19, 2023

Express Grain: John Coleman Trial Continued

 This post is reprinted with the permission of The Taxpayers Channel in Greenwood. 

The state court criminal trial of John Coleman has been put off again until Wednesday, November 15, 2023.

The case is before Circuit Court Judge Margaret Carey-McCray. The State Attorney General's office is prosecuting the case. To see the court docket sheet, view here: Weekly Criminal Docket Sheet

Coleman's federal trial has also been put off several times. It is now scheduled for November 27, 2023 before Federal District Court Judge Michael P. Mills.

Mr. Coleman was the president of Express Grain. Express Grain collapsed in September 2021, and it filed for bankruptcy, leaving over 100 farmers and other creditors owed some $210 million. The company liquidated for around $85 million, meaning that most of the company's debt will never be paid. Farmers were left being owed around $40 million after the liquidation.

EG's president, John Coleman, also filed for bankruptcy at the same time.

On December 6, 2022, John Coleman was arrested after both state and federal grand juries handed down indictments charging him with multiple counts of fraud in the EG collapse. He entered not guilty pleas to all the charges. 

To find links to our previous reporting, see here: John Coleman's federal criminal trial put off until November 27, 2023

In his personal Chapter 7 bankruptcy case, John Coleman recently received his "discharge," which is always granted in successful Chapter 7 cases. According to the discharge document issued:

Creditors cannot collect discharged debts

This order means that no one may make any attempt to collect a discharged debt from the debtors personally. For example, creditors cannot sue, garnish wages, assert a deficiency, or otherwise try to collect from the debtors personally on discharged debts. Creditors cannot contact the debtors by mail, phone, or otherwise in any attempt to collect the debt personally. Creditors who violate this order can be required to pay debtors damages and attorney's fees. 

Most debts are discharged

Most debts are covered by the discharge, but not all. Generally, a discharge removes the debtors' personal liability for debts owed before the debtors' bankruptcy case was filed.

Significantly, certain debts are not discharged:

Examples of debts that are not discharged are . . . debts that the bankruptcy court has decided or will decide are not discharged in this bankruptcy case; 

To view the discharge order, see here: Order of Discharge

As first reported by The Taxpayers Channel, the bankruptcy court has already ruled that UMB Bank's claim against John Coleman will not be discharged. 

UMB Bank had filed an adversary action against Coleman, charging that its losses in the Express Grain bankruptcy were the result of "actual fraud" by Mr. Coleman. According to UMB Bank's filing, Coleman employed "false pretenses, false representations of material facts that Debtor [John Coleman] knew to be false at the time the representations were made, and/or actual fraud."

Mr. Coleman defaulted, and filed no answer to UMB Bank's complaint.

The final court order awarded the damages to UMB Bank, and declared:

IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED that Plaintiff [UMB Bank] is granted a final Default Judgment against Defendant [John Coleman] in the amount of $70,589,128.70 plus post-judgment interest calculated in accordance with 28 U.S.C. Section 1961 from the date of the entry of this final Default Judgment until paid . . . .

. . . the Court finds and holds that this final Default Judgment against Defendant is entered and the indebtedness due and owing to Plaintiff by Defendant is non-dischargeable .... Any post-judgment interest and attorneys' fees awarded to Plaintiff is also non-dischargeable.

While originally exceeding $70 million, John Coleman's debt to UMB Bank has been reduced to just under $36 million, due to offsets received by UMB from the bankrupt EG estate.

To read our previous reporting on this matter, see here: Court hits Express Grain president John Coleman with $71 million judgment in favor of UMB Bank

John Coleman's discharge doesn't end his Chapter 7 bankruptcy case. Now it awaits the bankruptcy trustee, William Fava, to complete his investigation into possible additional assets.

Once that is complete, Fava will report on the money he distributes to the various creditors, and then close the bankruptcy case. To see our previous reporting on Mr. Fava's activities, view here: New trustee on the trail of "discovered assets" in Express Grain president John Coleman's personal bankruptcy

The overwhelming part of the claims filed against Coleman will never be paid. As of last report, his bankruptcy estate had less than $300,000 in assets, while claims against him topped $40 million.


Meanwhile, a snag has developed in efforts to finish off the bankruptcy of Express Processing, one of the Express Grain companies that filed for bankruptcy together on September 29, 2021.

According to EP's attorney Craig Geno, US Bancorp, of St Paul Minnesota, has locked Express Processing out of its checking account, and will not hand over the $887,201.80 that is in the account.

There is no explanation provided in the court filings about where this money came from, or why the bank won't release it to Express Processing:

The account holds funds that are property of the estate and, the Bank has been deducting, without authorization, post-petition charges from the account on a regular basis.

The Debtor has contacted the Bank and has advised it that the funds in the account belong to the Debtor [Express Processing] and they should be released to the Debtor/its counsel or the Chief Restructuring Officer. The Bank has declined.

There is no reason, justification or contract which allows the Bank to retain property of the bankruptcy estate.

EP wants the judge to order Bancorp to hand over the money:

The Court should enter an order, directing the Bank to immediately turnover those funds and transmit them to counsel for the Debtor [Express Processing], to be held pending Plan confirmation and/or other orders of the Court directing distribution of the funds being held.

EP's request to the bankruptcy court may be seen here: Motion for Turnover of Property of the Estate

According to the Mississippi Secretary of State's website, John Coleman is the only member of Express Processing LLC. That would make him the sole owner of that company.

Express Processing was started to handle the incredibly complicated New Market Tax Credits (NMTC) financing for EG. Essentially, Express Processing collected "pump priming" money from Dr. Michael Coleman, along with much smaller amounts from other entities, to drive the NMTC "leveraged lender" borrowing. The federal government allowed generous "tax credits" to other investors who loaned EG millions of dollars. The "pump priming money" was then supposed to be paid back to Dr. Coleman from the loan proceeds.

In all, EG ended up owing $40 million to seven different NMTC lenders. They all threw in the towel and had to dismiss their claims after receiving only a small portion of what was owed to them by EG. To read our coverage of these complicated NMTC loans, see here: Seven creditors of bankrupt Express Grain give up trying to collect $40+ million they are owed

Finally, there has been no further action in Don Barrett's three lawsuits filed on behalf of several farmers that were cheated out of their grain by EG when it filed for bankruptcy. Barrett has sued UMB Bank and Horne LLP, alleging that they enabled EG's fraud against the farmers. UMB Bank and Horne deny the allegations against them.

The three lawsuits presently sit in two different federal courts, awaiting the judges' rulings on motions to dismiss, and motions to remand to state court.

See our previous reporting on Barrett's claims here: Farmers, Don Barrett sue Horne CPA in the Express Grain collapse

It is presently unknown when any of the judges or courts will take further action in these lawsuits.

To read all our coverage of the Express Grain bankruptcy case, see here: Index of Express Grain articles


2 comments:

Anonymous said...

Tick-Tick-Tick

Anonymous said...

Damn, 11:20! Pull it off and dob some alcohol on it.


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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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