New poll

Vote for your choice. Sn1, Sn2, E1, E2, EAS.

Tonight at The Auditorium

Shaun Patterson at 7:30, then at 10:00.......................









Website for show

It's no longer a swamp in the desert I'll sell you, but a forest in Mississippi

Here is what several millions of dollars in commercial real estate loans issued to Chris Evans went for in Desoto County on Goodman road. Loans were issued several years ago and yet there doesn't seem to be any development, does there? Shots are from the SW corner and the West side.

Mississippi Business Journal covers Evans case

The Mississippi Business Journal published a good article on the Evans case this morning. Amy McCullough reports:
"A Madison title insurance company is accusing two brothers of committing mortgage fraud and coercing the title company into issuing fraudulent title insurance policies in Madison County and elsewhere in the state. Mississippi Valley Title (MVT) alleges brothers Charles H. Evans Jr. and Jon C. (Chris) Evans committed mortgage fraud on banks and induced MVT to issue fraudulent title insurance policies.....
The claim was part of a lawsuit filed Sept. 18 in Madison County Chancery Court that named the Evans brothers, The Evans Firm and 28 companies the brothers owned or controlled as defendants. The complaint for a temporary restraining order and preliminary injunction said Chris Evans is a Rankin County resident and Charles Evans is a Madison County resident..." Article

The story accurately reports the nuts and bolts of the lawsuit and obtains a statement from Mike Chaney's office. While the story is thin on quotes, it is understandable as on this case no one wants to go on the record. That means all the bankers, their lawyers, the insurance companies, and even non-involved professionals such as abstractors and real estate attorneys who fear blackballing by the banks and title insurance companies. The story also give this site a little bit of credit as well. ;-)

Sources inform JJ the MBJ will continue to pursue this story and my hat is off to them for living up to their responsibility as journalists, something other reporters in Mississippi have abdicated. The AP should pick up this story as well as they supposedly have an agreement with the MBJ. Nice job to Ms. McCullough and the Mississsippi Business Journal.



Now that we've sung Kumbaya, I'm about to put them a lap down. Nothing like two defensive ends having a race to the quarterback.

Evans update

Let the divorces begin. The wife of Charles Evans, Jr. filed for divorce in Madison County Chancery Court two days ago, citing irreconcilable differences.

Evans section created

Since the Evans case will continue on several fronts for quite a while, I've created a section on the right side of the page that contains all of the posts pertaining to this subject. Hope it helps. Got another one going up tomorrow. Stay tuned. ;-)

Note: This was a great comment made yesterday about the banks issuing loans to a non-existent company:
TO 1:58 ANONYMOUS... Loan made to an entity that did not exist, that more than likely is on tract of land owned by a corporation/llc that did not exist. And NOW we have alleged forged signatures like a cherry sitting on top. No doubt there was a loan made but bank might as well have piled up cash for the face amount of the loans in the center of their lobby and set the pile on fire. As far as if those loans are covered by title insurance now or not, that's hilarious.

November 3, 2009 2:12 PM

Israelis find 500 tons of hidden arms on ship traveling from Iran to Hezbollah

Israel caught Iran pulling the same stunt in 2002 when it boarded a ship traveling from Iran to Egypt carrying 50 tons of arms meant for Gaza.


Meanwhile, Obama tells Iran's democrats the U.S. "seeks a relationship with the Islamic Republic of Iran based upon mutual interest and mutual respect. We do not interfere in Iran's internal affairs." (In other words, drop dead.) article An op-ed in the Wall Street Journal has some rather strong things to say about Obama's moral cowardice.

Irby update

Request for extension to file answer in the wrongful death suit was filed yesterday in Hinds County Circuit Court. Nothing new has taken place in the prosecution in same court nor in the probate action for Dr. Pogue's estate in Rankin County Chancery Court. Earlier post on wrongful death suit

Latest crime stats

Crime statistics for Jackson during the week of October 26 to November 1, 2009.

The Evans scrum gets muddy as the Banks play cash for titles

While Mississippi Valley Title and Old Republic's fraud lawsuit against attorney Charles Evans, Jr., and Chris Evans rages in the Madison County Chancery Court, many banks are filing suit in Madison and Desoto Counties seeking title to properties on which they issued mortgages averaging $620,000 per loan.

The typical lawsuit is where the bank sues a company owned or controlled by Chris or Charles Evans. In the suit, the bank requests the court give it first lien on the property and if the property is in the name of another Evans company, it also asks the court to transfer the deed to the company that gave it a lien on the property at issue. This lawsuit filed by Cadence Bank is an example of these suits. Here are the other suits:

Merchants & Farmers v. Hanover Investments and Town Park of Madison 9/11/09
First Bank (McComb) v. Madison County Bank, C E Development, and Old Agency Business Park 10/30/09
Bank of Forest v. Hanover Investments 9/16/09 Several Texas banks were subpoenaed in this action. Bankfirst and Merchants & Farmers filed motions to intervene.
Bancorp South v. Old Agency Business Park, Parkway Crossing, and Community Bank 11/3/09. What is interesting is Parkway Crossing was formerly Sleep Inn Airport. Could this be a phony company?
State Bank & Trust v. Madison Avenue Development, JCE Construction, 463 Development Co. 10/2/09
Regions v. Ridgeland Recreational 9/25/09
Omni Bank v. Highland Development Group and Madison Avenue Development 10/2/09
Community Bank v. First Bank, Bank of McComb, CE Development, 463 Development 10/28/09
Community Bank v. Old Agency Business Park, Madison Avenue Development 9/11/09

Desoto County (Copy of first page of each lawsuit):
Patriot Bank v. Woodgreen Development, Cedar Lake Investors 9/18/09
Renasant Bank v. Woodgreen Development, Twin City Commons 9/18/09
Wachovia v. Woodgreen Development, Highland of Ridgeland 9/18/09
Trustone Bank v. Woodgreen Development, Cedar Lake Investors 9/18/09
First Alliance Bank v. Woodgreen Development, Snowden Grove Investors 9/18/09
First State Bank v. Woodgreen Development, Cedar Lake Investors 9/18/09
First Security Bank v. Woodgreen Development, Brashear Heath 9/18/09
Bankplus v. Woodgreen Development, Colony Construction 9/18/09
First Trust Bank v. Woodgreen Development, Snowden Grove 9/18/09

Synopsis: Charles Evans, Jr. was an "approved attorney" for Mississippi Valley Title Insurance Company, a division of Old Republic Title Insurance. MVT would issue title insurance policies based on his certifying the borrower had clear title to the property that was the subject of the loan. His brother, Jon Chris Evans, set up nearly 30 LLC's. Chris Evans purchased several pieces of prime commercial real estate in the suburbs of Jackson, Memphis, and Dallas (Madison, Desoto, Collin, and Denton Counties). Chris Evans then obtained large commercial real estate mortgages through each LLC. The loans averaged $624,000 in Mississippi and over $1 million in Texas. Over 30 banks gave Evans nearly 100 loans.

MVT filed a lawsuit in September, alleging massive fraud took place. MVT claims Charles committed fraud and that multiple banks issued loans for each property in Mississippi; the results was only one bank had valid title to property and the rest did not have title for the money they loaned to Evans. A preliminary injunction against Charles Evans was granted by the Chancellor. Chris Evans filed bankruptcy last week, which stayed all civil court proceedings against him. MVT's investigator admitted in open court the FBI contacted him. Meamwhile in Texas, nearly half of the loans issued to Chris Evans are in foreclosure proceedings. MVT's attorney called this the "biggest fraud to hit Mississippi since Worldcomm."


Related Posts:
Phony signatures & Loans to a non-existent company?
Over $74 million in loans issued in Mississippi & Texas
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County (Itemized list)
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings

JJ Poll: Ricky Williams is Saints biggest bust

JJ readers think Ricky Williams is the biggest bust the Saints ever drafted. Although I will disagree and say it is Sullivan who did nothing but eat his way out of the league from the moment he was drafted, Ricky was the overwhelming choice. If I were to rank them, I would say Sullivan, Knight, Erxleben, Williams, Turnbull, Chandler, and Bush. I think Bush gets a little bit of a bum rap because he is probably the best blocker in the Saints backfield and doesn't mind laying the wood to someone but it doesn't show up in the stats.

Reggie Bush	37 (18%)
Ricky Williams	112 (56%)
Shawn Knight	2 (1%)
Russell Erxleben	34 (17%)
Johnathan Sullivan	9 (4%)
Wes Chandler	3 (1%)
Renaldo Turnbull	3 (1%)

Santelli: Our leaders dilute the dollar to pay for the sins of everyone

If in Firefox and no video appears, switch to IE.

Evans update: Were there phony signatures and loans to a non-existent company?

Lynne Knight was listed as either a registered agent or Manager of several LLC's owned by Chris Evans. Ms. Knight has sent a letter to the Mississippi Secretary of State requesting her name be removed as an agent for Highland Colony Investments. Copy of request.

What is interesting is if you examine her signature for all the documents above related to Mississippi companies (bottom two rows) and compare them to the signatures on documents in the top row, you will notice they don't exactly appear to be identical. The documents on the top row are a deed of trust for a loan given to Riverbend Group LLC in Texas by Swisher for over SIX MILLION dollars. The next document is an extension of the loans. Unfortunately for Swisher, the loan is currently in foreclosure proceedings.

There is no evidence Ms. Knight signed any loan documents in Mississippi and JJ has so far determined she was only a registered agent for several companies and didn't actually participate in any Evans activities or operations. Unfortunately for Ms. Knight, it appears someone else signed her name to loan documents over in Texas.

JJ's review of these documents uncovered another disturbing fact. One of the companies Ms. Knight was a registered agent for was Colony Developers, Inc. The company was dissoved in 2004. Everyone get that? 200-friggin-4. The Secretary of State's office confirmed the dissolution and when it occurred this morning in a phone call.

Despite the fact the company no longer existed, Merchants & Farmers Bank and Madison County Bank STILL granted it commercial real estate loans over four years AFTER the company dissolved. According to this Deed of Trust issued to Merchants & Farmers Bank by Colony Developers, Inc., M&F issued a loan to the then-dissolved company for $169,680 on July 3, 2008, over FOUR YEARS after the company was dissolved. Another Deed of Trust was issued for a $183,490 loan given to Colony Developers by Madison County Bank on March 6, 2009, FIVE YEARS after the company ceased to exist.

Did anyone at either of these two banks ever hear of the concept of due diligence? It is standard practice in mortgage lending to check out companies that apply for loans. The loan officer will perform such functions as checking credit, verifiying tax returns and bank statements, and then actually checking to see if the companies actually exist. The standard procedure for this is to.......drum roll....... call the Secretary of State's office or look up the company on its website. Underwriters will also check the phone book to see if there is a listing for the company and require a copy of a current business license. Although the banks probably required a personal guarantee from Mr. Evans, this is still sloppy underwriting and that is putting it mildly.

The Evans case continues to provide more surprises.


Related posts:
Over $74 million in loans issued in Mississippi & Texas
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County (Itemized list)
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings

Media FINALLY begins to cover Evans case, but......

FINALLY some media in Jackson covered the Evans case but....its Kent Dear & Larry Nesbitt on WJNT. ;-) If the player does not work, here is the link to the recording. Start at 19:30.

Jim Rogers takes Fox Business to school

I've gotten to where I can't watch Fox Business whenever she is on the set. Given how hot she is, that should tell you how bad she is. Some good stuff here.

Watch the Saints tonight at The Auditorium

Texas was very good to Chris Evans: Over $74 million in loans issued in Texas & Mississippi

Evans Case-Related Posts:
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County (Itemized list)
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings


Mississippi was not the only playground for Jon Chris Evans as he operated in Texas as well. JJ has discovered companies owned or controlled by Chris Evans obtained approximately $27 million in commercial real estate loans in Collin and Denton counties and that several banks have already initiated foreclosure proceedings against them. A list of the companies, links to their incorporation documents, and an itemized list of commercial real estate mortgages issued to Evans is provided below.

Chris Evans established nine companies in Texas. Riverbend Group, an Evans' L.L.C., was the engine that powered his Texas dealings as it bought prime tracts of commercial real estate in Collins and Denton Counties. Riverbend then transferred the properties to other Evans companies that then obtained commercial real estate mortgages. JJ calculates Evans-owned companies obtained $26,927,538 in loans from 16 Texas banks and 1 Mississippi bank. Unfortunately for several banks, five loans worth $10,245,370 are now in foreclosure proceedings. The State of Texas also revoked several charters for Evans' companies as well. While there are no allegations of fraud involving Mr. Evans Texas operations, Mr. Evans filed Chapter 7 bankruptcy last week. Given the current allegations of fraud against Mr. Evans in the Madison County Chancery Court and legal actions taken against him, it is likely these banks will take a financial hit to some degree.

Mississippi Valley Title Insurance Company and several banks have filed suit against Evans and his brother Charles, Jr. claiming fraud. A court granted the plaintiffs a preliminary injunction freezing all assets of Charles Jr. and ordered an accounting of all financial transactions and properties. Charles Evans, Jr. was an approved attorney for Mississippi Valley Title Insurance Company and was authorized to certify real estate titles for the Mississippi corporate giant. His brother operated over 25 companies in Mississippi as well. His companies bought valuable tracts of commercial real estate in the suburbs of Memphis and Jackson. The plaintiffs accuse the two brothers of providing MVT and the banks with false titles in order to obtain large amounts of commercial real estate mortgages. JJ reviewed the deeds of trust and other documents associated with the defendants and determined they obtained over 80 loans worth $47 million from Mississippi banks (see above-linked posts).

It thus appears Chris Evans received over $74 million in loans from Mississippi and Texas banks. Once again, it is important to remember it is not known how many, if any loans, were obtained through fraudulent means. However, given that the Chancellor in Mississippi ruled the plaintifs are likely to win their case, Mr. Evans filed Chapter 7 bankruptcy recently, and Charles Evans, Jr.'s assets are supposedly frozen, it remains to be seen as to how severe the impact will be to Mississippi Valley Title Insurance Company and 48 banks.

Itemized list of Texas Commercial Real Estate Loans to the Evans Brothers:

Total: $26,927,538
Number of loans: 19
Average loan amount: $1,417,239
Number of Texas banks: 16
Number of Mississippi banks: 1

Number of loans in foreclosure: 5
Total dollar amount of loans in foreclosure: $10,245,370

Independent Bank: $1,960,000 ($1,960,000 in foreclosure proceedings)
$960,000 on 10/22/08 to Greenwood Place, LLC. Renewal of note given to Signature bank on 4/16/06. Copy of deed of trust. Original deed of trust Substitution of Trustee (Foreclosure), Original note (Collin County)
$1,000,000 on 10/26/05 to Highland Colony Group (Denton County), Substitution of Trustee notice filed on 10/6/09

Prosperity Bank: $930,000
$930,000 on 4/25/06 to Highland Colony Group, LLC. Copy of deed of trust (Collin County)

Inwood National Bank: $930,000 ($930,000 in foreclosure proceedings)
$930,000 on May 23,2006 to Highland Colony Group, LLC. Copy of deed of trust (Collin County); Substitution of Trustee on 10/9/09

American Bank of Texas: $3,215,000
$1,400,000 on 10/11/07 to Lake Harbor Development, LLC. Copy of deed of trust, Deed (Collin County)
$923,000 on 7/2/09 to Paloma Ridge, LLC. (Denton County) Deed from Riverbend group to PR on same date
$892,000 on 10/11/05 to Highland Colony Group ( Denton County), Extension

Swisher Partners, L.P.: $6,355,370 ($6,355,370 in foreclosure)
$6,355,370 on 7/26/09 to Riverbend Group, LLC; Substitution of Trustee, modification agreement (Collin County)

Northern Trust Bank of Texas: $900,000
$900,000 on 7/14/07 to Highland Colony Group, LLC; Deed of Trust (Collin County)

Plains Capital Bank: $611,000
$611,000 on 5/6/09 to Westfield Way, LLC (Denton County) deed from Riverbend group to Westfield Way on same date.

Benchmark Bank: $923,000
$923,000 on 6/18/09 to Oakmont Mill (Denton County) deed from Riverbend group to Oakmont Mill on the same date

Texoma: $1,168,000
$1,168,000 on 9/26/08 to Sawbridge Development (Denton County) Deed from Riverbend group to Sawbridge

Bankfirst Financial Services (Mississippi bank): $4,187,668
$4,187,668 on 7/16/08 to Riverbend Group, LLC (Denton County)

Northern Dallas Bank & Trust: $880,000
$880,000 on 10/14/05 to Highland Colony Group (Denton County), Extension

Texas Star Bank: $980,000
$980,000 on 1/18/06 to Highland Colony Group (Denton County), Extended

Bank of Texas: $960,000
$960,000 on 1/25/06 to Highland Colony Group (Denton County), Extended

Dallas City Bank: $1,000,000 ($1,000,000 in foreclosure)
$1,000,000 on 2/14/06 to Highland Colony Group (Denton County), Extended, Substitution of Trustee Notice filed on 10/26/09

Sovereign Bank: $997,500
$997,500 on 3/09/06 to Highland Colony Group (Denton County), Extended

Gateway National Bank: $930,000
$930,000 on 5/04/06 to Highland Colony Group (Denton County)

List of Texas L.L.C.'s operated by Jon C. (Chris) Evans
Riverbend Certificate of Formation
Highland Colony Group Articles of Inc.
Lake Harbor Articles of Inc., Termination by Texas
Sawbridge Development Articles of Inc.
Westfield Way Articles of Inc.
Oakmont Mill Articles of Inc.
Paloma Ridge Articles of Inc.
Bristol Mark Articles of Inc.
Clairborne Crossing Articles of Inc., Involuntary Termination by State

Geaux Hank Go!

I *%@#'in love it. Shows what happens when you put up a WWII vet over 80 years old against a bunch of pin-stripe pansies on Wall Street and in the government. After kicking Spitzer's ass and whipping AIG in court, Hank Greenberg has had enough and is starting up his own company that closely resembles AIG. Unfortunately for AIG, he is raiding the company for major talent and the government just gave him a big boost by capping salaries, which don't apply to him.

The New York Times reports:
"Even as he has been lambasting the government for its handling of A.I.G. after its near collapse, Mr. Greenberg has been quietly building up a family of insurance companies that could compete with A.I.G. To fill the ranks of his venture, C.V. Starr & Company, he has been hiring some people he once employed.
Now, Mr. Greenberg may have received some unintended assistance from the United States Treasury. Just last week, the Treasury severely limited pay at A.I.G. and other companies that were bailed out by taxpayers. That may hasten the exodus of A.I.G.’s talent, sending more refugees into Mr. Greenberg’s arms, since C. V. Starr is free to pay whatever it wants.....
While America generally loves stories of entrepreneurs making a comeback, Mr. Greenberg’s success may be at the expense of taxpayers. People who work in the industry say that if he is already luring A.I.G.’s people, he may soon be siphoning off its business and, therefore, its means to repay its debt to the government." (Watch out, capitalism will now be called unpatriotic.) Article

Obama backstabs the Greens in Iran..... again.

Looks like Obama backstabbed Iranians seeking freedom. An op-ed in the Wall Street Journal states:
"The Boston Globe reported this month that the Connecticut-based Iran Human Rights Documentation Center recently lost its State Department funding. The Center—a nonpartisan group that documents Iran's human-rights abuses—had received $3 million over the past five years. It will shut down in May, said Executive Director Renee Redman, unless private donors save it. Boston Globe article
Less widely known is that Freedom House, the nonpartisan watchdog group founded in 1941, also lost State Department funding. It applied in April for significant funds to support initiatives including Gozaar, its Farsi-English online journal of democracy and human rights, and was turned down in July. Since 2006, Freedom House had received over $2 million from the U.S. and European governments for Iran-related efforts. "We might have to close Gozaar if we run out of money," deputy executive director Thomas O. Melia told us this week.
Then there's the International Republican Institute (IRI), which for several years received State Department support to train Iranian reformers and connect them to like-minded activists in Europe and elsewhere. IRI's recent application for funds was denied, an IRI official told us last week...." Column

The op-ed accuses the Obama administration of betraying Iran's Democrats so it can make a "deal" with the Mullahs on nukes. Such tactics bring to mind Ford's snubbing of Soltzinytsin over 30 years ago because he didn't want to embarrass the Reds or Kissinger defending Tianamen Square. Unfortunately for those in Iran, Obama has taught them that freedom is a lonely crusade and those fighting for it all too often can expect to have no friends in their fight.

Prep, St. Andrews, JA are JJ favorites

Looks like Prep, St. Andrews, and JA are the leading high schools among JJ readers.

S. Panola	7 (2%)
Terry	1 (0%)
Jackson Prep	38 (14%)
Provine	1 (0%)
Forest Hill	5 (1%)
Wingfield	5 (1%)
Jackson Academy	34 (12%)
NW Rankin	16 (5%)
St. Andrews	35 (12%)
Pearl	6 (2%)
Brandon	20 (7%)
Lanier	5 (1%)
Clinton	18 (6%)
Madison-Central	21 (7%)
MRA	10 (3%)
Murrah	13 (4%)
John Curtis	2 (0%)
Broadmoor H.S.	1 (0%)
Ridgeland	3 (1%)
St. Jospeph's	16 (5%)
Florence	4 (1%)
Richland	1 (0%)
University Christian	2 (0%)
Callaway	7 (2%)

Latest crime stats

Latest crime stats for Jackson: week of October 18-25.

Halloween at The Auditorium

Evans brothers hit Harrison County & Texas. Nearly $13 million in Texas commercial loans given to Chris Evans

Update: Found another batch of loans made to Evans owned or controlled companies in Texas. So far the total amount for this newly-discovered group is over $14 million, including a $4 million from Bankfirst Financial Services in Mississippi.

The jet-setting Evans brothers could not get enough of Mississippi. First it was Madison County, then it was Desoto. Now JJ discovered more "deals" were made in Harrison County by Chris and Charles Evans as well nearly $13 million in commercial real estate loans in Texas that are "going bad". (See note below for synopsis of the Evans case.)

Cedar Lake Investors (sound familiar?) obtained a Deed of Trust in on a property in Harrison County on December 22, 2004 from First Bank and Trust (a Louisiana bank) for $352,000. The loan has been extended several times. Deed of Trust, Extension, Second extension . As was true all too many times, both Chris and Charles Evans signed the Deed of Trust and apparently Charles Evans provided the title work. Both names are on the signature pages. There are also several deeds on file for properties owned by Chris Evans in Harrison County. Deed, Deed II, Deed III, Deed IV

It is unknown as to how many other properties and banks in that area were involved at this time and a further investigation is being conducted. However, JJ has also learned Evans' companies operated in Texas as well in the same manner. So far JJ discovered the following companies and deeds in Collins County:
Lake Harbor Development Company: Lake Harbor Development-owned property, Second Lake Harbor owned property. Lake Harbor obtained a commercial mortgage on a property in Collins County for $1,400,000 on October 11, 2007 from American Bank of Texas. Deed of Trust, Deed The deed was issued to Lake Harbor from another Evans company: Highland Colony Group.

Highland Colony Group owned several properties in Collins County and obtained several commercial real estate mortgages:
Northern Trust Bank of Texas, $990,000 on 7/14/06 Deed of trust
Signature Bank, $960,000 on 4/14/06 Deed of Trust, Extended.
Inwood National Bank, $930,000 on 5/23/06. Extended on 9/28/09. (Yes, you read the date right. ) Deed of Trust granting extension
Prosperity National Bank, $930,000 on 7/15/07. Extension of 4/25/06 loan. Deed of Trust. Loan was extended again.

Collins County was not the only county where the Highland Colony Group wheeled and dealed. The company made more than a few visits to Denton County as it followed its usual pattern: buying tracts of promising commercial real estate than obtaining large mortgages for them from local banks. Highland Colony obtained the following loans:
North Dallas Bank & Trust, $880,000 on 10/14/05, Extended
American Bank of Texas, $892,000 on 10/11/05, Extended
Independent Bank, $1,000,000 on 10/26/05, Extended
Texas Star Bank, $980,000 on 1/18/06, Extended
Bank of Texas, $960,000 on 1/25/06, Extended
Dallas City Bank, $1,000,000 on 2/14/06, Extended
Sovereign Bank, $997,500 on 3/09/06, Extended
Gateway National Bank, $930,000 on 5/04/06
Inwood National Bank, $930,000 on 6/02/06

Total amount of commercial real estate loans granted to Evans' company in Texas: $12,879,500 (This sum is in addition to the over $52 million in loans taken by Evans brothers in Mississippi.). This sum is not a final total or accounting as it is obviously unknown if more loans were extended to other Evans' companies. However, foreclosures are in the works as Independent Bank filed an "Appointment of Substitution of Trustee" on October 9, 2009 and Dallas City Bank filed one on October 26. Filing this notice at the courthouse is the first step in the foreclosure process. Link to Denton County land records search engine. Keep in mind these are loans that were extended to the Chris Evans through his companies. While it has NOT been shown they were fraudulent yet, as a freeze order is in place against Charles Evans, Jr. and Chris Evans is in bankruptcy, the Texas banks will probably suffer losses to some degree on these loans.

Note: The synopsis of the case is there were two brothers, Charles Evans, Jr., and Jon Chris Evans, in Jackson. Charles was an "approved attorney" for Mississippi Valley Title Insurance and certified titles to them. His brother Chris set up over 25 LLC's in Mississippi and apparently some more in Texas that bought prime pieces of undeveloped commercial real estate in booming suburbs of major cities such as Dallas, Memphis, and Jackson. Evans companies obtained MANY commercial mortgages on their properties and Charles Evans Jr. certified the titles/deeds to the property for MVT and the lender. Evans obtained over 80 commercial real estate loans from 32 banks in Mississippi according to a JJ investigation, totalling over $52 million in Madison and Desoto Counties. MVT testified in a hearing this week that in most cases, the lenders had NO deed or title to the property and thus had extended unsecured loans.

MVT filed a Request for an immediate Temporary Restraining Order in mid-September, alleging fraud. MVT asked the Court to freeze all assets of the Evans brothers among other demands made by the insurance company. The Court granted the order. The order was converted this week to a preliminary injunction (see earlier posts listed below). MVT's lawyer called the alleged fraud the "biggest fraud to hit Mississippi since Worldcomm." MVT's investigator also admitted on the stand the FBI had contacted him about the case. Chris Evans stayed all proceedings against him by filing Chapter 7 bankruptcy this week while Charles Evans, Jr., is still a defendant.

Earlier posts:
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings

Jefferson County update

The interest rate swap fiasco in Jefferson County continues to grow. The Birmingham News reported:
"Jefferson County commissioners raised questions Wednesday about Bir­mingham lawyer Bill Slaughter's work for the county after court testimony that he told an investment banker a $300,000 fee didn't need to be dis­closed to the full commission.....
During the corruption trial of former commission president Larry Langford this week, Rick Fitzgerald, formerly of New York-based Goldman Sachs, said Slaughter told him the fee paid to Montgomery investment banker Bill Blount needed to be disclosed only to Jefferson County's then-finance direc­tor Steve Sayler.
Blount has pleaded guilty in the case and testified that he made payments to, and bought gifts for, Langford, who was convicted of federal corruption charges Wednesday. In return, Blount testified, his investment bank was in­cluded in bond and swap transactions led by larger investment banks such as Goldman Sachs. All told, Blount Par­rish collected $7.1 million in fees..."
Article

Considering what these guys did to the people of Jefferson County, its a shame flogging is no longer a punishment. They guys would fear the knout more than they would 3 years in a federal country club. Incidentally, I was told by a few weeks ago this blog is what killed the proposed interest-rate swap for Jackson this year.

Preliminary injunction entered in Evans case.

Chancellor Harvey-Goree filed a copy of the preliminary injunction in the Evans case yesterday. Copy of order. The details were posted Wednsday but JJ finally obtained a copy of it for publication.

Earlier posts:
FBI contacted MVT, MVT lawyer calls Evans case "Biggest fraud to hit Mississippi since Worldcomm
Nearly $42 million in loans issued to Evans' brothers in Madison County
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings

Everyone take a break & LAUGH!!!

Fine Arts Institute of Mississippi +Tim Johnson = Trouble?

The Clarion-Ledger reported the State is investigating a charity/bingo operation called the Fine Arts Institute of Mississippi:
"State gaming regulators are expected to decide today whether to approve a staff recommendation denying license renewal to a bingo hall that supports a Ridgeland nonprofit.
Fine Arts Institute of Mississippi, which receives money from bingo operations in Olive Branch, has had a gaming license since 2006.
In August, the organization was given a three-month license to continue operating while the state Gaming Commission investigated the group..."

Seems as though while the "charity" raked in millions of dollars not much was spent on programs:
"According to the secretary of state's office, the institute in 2007 posted revenue of nearly $4.5 million. It spent nearly $173,000 on programs, just shy of 4 percent of its total revenue.
In 2006, the agency collected nearly $1.3 million in revenue and paid out $1,000 on programs, less than 1 percent of its budget...." Article, WLBT story with video

Apparently an employee turned them into the State and Bill Murphy, the agency's Executive Director, prosecuted her for embezzling less than a thousand dollars. She filed a wrongful termination suit in response to being indicted for the alleged embezzlement.

Let me round out this picture a bit for you. What the Clarion-Ledger did not mention was WHO the so-called charity's lobbyist was: Tim Johnson. Yes, Mr. Elvis himself, (who will NOT be appearing tomorrow night at The Auditorium), had been working for Mr. Murphy's group. According to lobbyist reports filed with the state, Mr. Johnson has exactly two clients as a lobbyist: Fine Arts Institute of Mississippi and the Mississippi Outdoor Advertising Association.

Mr. Johnson reported them as a client in 2009, report, and in 2008, report. This report filed by the Institute shows Mr. Johnson is registered as the "charity's" lobbyist through the end of the year. Mr. Murphy's "charity" paid Mr. Johnson $24,000 in 2008 for his, um, services according to the "charity"'s 2008 annual report. The Madison County Journal reports the lobbying was illegal and the state ordered the "charity" to stop paying Mr. Johnson in 2008 (even though Mr. Johnson lists them as his client through December 2009 on a 2009 report). The newspaper also reports Mr. Murphy was the manager of the County Road Department until 2007. Article (By the way, the MCJ story is MUCH better than the CL version). Mr. Johnson is also listed as a director on this filing with the Mississippi Secretary of State's office.

Hmmm.... employee rats out some financial shenanigans she claims to have observed at Mr. Murphy's "charity" and suddenly the Madison County Power Structure comes down on her. Connect the dots, folks, connect the dots.

Copy of state filings

Bankrate.com: Regions has a "significantly below average condition."

Bankrate.com gave Regions only a one-star rating and made the following observations:
"Bankrate believes that, as of June 30, 2009, this bank exhibited a significantly below average condition, characterized by substantially lower than normal overall, sustainable profitability, very questionable asset quality, below standard capitalization and lower than normal liquidity....
The bank revealed, as previously stated, very questionable asset quality..." Article

FBI contacted MVT, Chris Evans filed bankruptcy last night, MVT calls Evans case "Biggest fraud to hit Mississippi since Worldcomm"

Update: Copy of preliminary injunction

The courtroom heated up today in Yazoo City as a hearing on several motions filed in the Evans case was held this morning. Several revelations were made during testimony provided under oath by employees of Mississippi Valley Title Insurance Company.

Bankruptcy
The first bombshell to drop was a revelation by Charles Evans, Jr.'s, lawyer, Terry Levy, that Jon Chris Evans filed a Chapter 7 bankruptcy petition in U.S. Bankruptcy Court yesterday at 5:30 PM. Bankruptcy petition. Bill Brabec, MVT's attorney confirmed the entry of the petition. Thus the Chancellor did not consider any legal action taken against Chris Evans as the entry of the bankruptcy petition halted all civil proceedings at the state court level against him. Jon Chris Evans Amended Creditor List (Notice all of the banks in Texas. There are rumors and allegations the same scheme was perpetuated in Dallas.).

The Chancellor then denied a Motion to Quash a Subpoena filed by the defense. However, she approved several motions for protective orders submitted by MVT and several banks as they were concerned about providing confidential and personal financial information in a public record. The judge agreed with their concerns and granted their requests.

How Mississippi Valley Title suspected fraud
The main event at today's hearing ,however, was the consideration of a Motion for a Preliminary Injunction filed by Mississippi Valley Title and Old Republic, its parent. Copy of Motion . Brad Jones, a lawyer, CPA, and Certified Fraud Examiner for MVT, testified the fraud was discovered when MVT received a phone call from a policyholder at Holmes County Bank. Bank examiners were apparently at the bank and asked for copies of deeds related to two mortgages (deeds showing ownership by borrower, NOT deeds of trust issued to lien holders). Holmes County Bank issued two mortgages worth $1,580,479 in 2008 and 2009. The bank didn't have the deeds and called MVT to obtain a copy of them. MVT did not have any copies of the deeds. Holmes County Bank and MVT became very suspicious when the Courthouse did not have any deeds on file either. Thus the scheme (alleged, I do have to write that) began to unravel as MVT began to investigate.

Mississippi Valley Title then called Charles Evans, Jr. since he was the attorney who provided the title work for the two loans. Mr. Evans was an "approved attorney" for MVT. "Approved attorneys" are a list of lawyers from whom MVT will accept title work it then uses to issue title insurance policies to lenders and borrowers. Mr. Jones stated these attorneys are not employees nor agents of MVT. No testimony was provided on whether MVT audited these lawyers or had procedures in place to protect against fraud.

The Damage and the FBI appear
Charles Evans, Jr. disappeared and did not return any phone calls. Mr. Jones stated his office seemed to be deserted and had no employees. MVT finally sent a fax to Evans' office asking him to call the insurance company. The next day an Matt Balderidge of John Colette's law firm (Mr. Colette is one of the top criminal defense lawyers in Mississippi) called Mississippi Valley Title and said he was representing Charles Evans, Jr. Mr. Jones said this the first red flag about Mr. Evans. Mr. Jones testified he discovered the following facts:

• Over 100 policies were issued to Charles Evans, Jr.
  
• All borrowers were companies controlled or owned by Charles or Chris Evans
• Over $70 million in policies were issued by MVT
• There were 43 mortgages ($29 million) where the mortgage-holder was not vested with title
• 40 mortgage (more than $26 million) where the bank had a junior lien when it was supposed to have first lien.
  

It was at this point that Mr. Jones dropped his last bombshell upon a direct question from Mr. Brabec: he had been contacted by the FBI.

Mr. Brabec angrily said in his closing argument the Evans case was the "biggest fraud to hit Mississippi since Worldcomm" and that (the Evans brothers) "have stolen tens of millions of dollars, $50 to $100 million through a fraudulent scheme. It was also clear from courtroom testimony and statements no one has been able to locate Charles or Chris Evans.

If the allegations are true, and there is a strong probability they are, the Evans case is the largest real estate and mortgage fraud case in Mississippi history. 32 banks issued loans to companies owned or controlled by Charles or Chris Evans. Estimates on the amount of damage range from $50 to $100 million.

One abstractor familiar with the case (but has no involvement) told JJ "All the overlapping layers created by their various deeds of trust are like a cross between 3-dimensional chess and a jigsaw puzzle. And it really made swiss cheese of the bank's lien positions. Part of a tract might have first position while other parts of the same tract might be preceded by other liens. Then again, from a certain standpoint all the lenders are in the same position -- zero. It's going to be interesting to see how the courts sort out the title mess."

One must also wonder what Mississippi Valley Title's liability is in this case if it is has to cover the most of the losses the banks suffered. It should also be pointed out that while the amount of money involved in fraudulent loans is smaller than the $52 million JJ reported yesterday as the estimate for the banks exposure, those loans can be considered no good as the assets of the Evans brothers have been frozen or placed into bankruptcy. The potential losses facing either Mississippi banks or Mississippi Valley Title Insurance very well might be close to $100 million as claimed in court today.

Nearly $42 million in loans issued to Evans' brothers in Madison County
Tempest in a teapot or record-breaking fraud?
Banks issued nearly $10 million to Evans brothers in Desoto County
Evans case update on court filings

Note: Here are the results of an examination in 2006 ordered by the Missississippi Insurance Commissioner. It includes financial statement. Examination Results

Evans case update on Court filings

Several motions for protective orders requesting the Court allow Bankfirst, Mississippi Valley Title, and Copiah Bank to file documents and information subpoenaed under seal were submitted to the Madison County Chancery Court last week.

Bankfirst (Copy of Motion for Protective Order) was subpoenaed by MVT and its parent, Old Republic Title Insurance Company to provide information regarding loans provided to the Evans-owned companies. Bankfirst called such information "privileged" and "protected" and asked that it be allowed to file its answer under seal. Mississippi Valley Title also moved for a protective order as well, citing privacy concerns it has for the information subpoenaed (It wouldn't be because it doesn't want the entire state to see how it was suckered or its lawyer might have screwed some banks, now would it?). MVT submitted a proposed protective order along with the motion. Copy of motion.

MVT has already tried to avoid any public exposure to how it was allegedly defrauded by the defendants as it filed the explanation for how the alleged fraud took place under seal (In violation of the Gannett States case). Such sealings are troubling as this case has a strong probability of being the largest mortgage fraud case in Mississippi history. The public has a strong interest in learning if and how its banking system was defrauded for potentially tens of millions of dollars.

A hearing for a preliminary injunction has been set for October 27, 2009 at 9:00 AM at the Yazoo County Courthouse. Since a temperory restraining order (TRO) has already been issued and extended once against the defendants, the purpose of the hearing is to convert the TRO to a more permanent preliminary injunction. A subpoena was issued for Jon C. Evans. Copy of subpoena Two of the Evans' companies, Twin City Development and Snowden Lane Investments, filed an answer to MVT's lawsuit. Copy of answer

Several Lis Pendens actions have been filed against the defendants by several banks seeking to get first lien on several properties supposedly owned by the Evans' companies. They are: Cadence Bank, State Bank, Merchants & Farmers, and Bank of Forest.

Stay tuned for more.