Express grain bankruptcy

[SyonaraStanz]

I work for a bank, and we have numerous farmers who are caught up in this mess. One of our farmer’s received over $2MM in crop payments. Our branch personnel called the bank the check was drawn on to verify funds. Funds were good, and we processed the checks and applied nearly all of it to their operating line. The next day, they file bankruptcy. The other bank returns the checks, and we have to reverse the payment on the crop line. This farmer is strong and will be fine, but that hurts anyone significantly.

My friend used Express Grain. He got his check and deposited it, and it sat in his account for 11 days. They file bankruptcy, the judge back dates the bankruptcy 90 days, and my friend’s bank removes the funds from his account, per bankruptcy law. He’s now an unsecured creditor. His bank has first lien on his crops. And in the meantime, Express Grain thinks he’s going to honor his existing contracts.

Express Grain’s bank is heavily negligent by not forcing audits and letting Express keep delaying the audits. Express also sent a letter to all farmers stating that the operation was stable, and no issues existed. Major red flag there. It’s a complete mess.

 

[DesotoCountyDawg]

These were a couple of the emails they sent out. Talk about whistling past the graveyard. View attachment 22959View attachment 22960

 

[greenbean.sixpack]

These were a couple of the emails they sent out. Talk about whistling past the graveyard. View attachment 22959



View attachment 22960

I believe John is Dr. Coleman's son. They've always been considered good people. Terrible situation.

 

[NewTweederEndzoneDance]

Just thinking out loud here. This whole situation screams fraud, though I certainly do not know all of the facts. There is at least the appearance that Express Grain has defrauded the farmers of their product (crops) with knowingly false promises of payment for said crops, all the while knowing that they did not have the financial ability to pay for the crops. If true and Express Grain obtained the crops through fraud, those transactions "should not" be valid, and the farmers might be entitled to the return of their crops. Or at least get an injunction to prevent Express Grain or the bank from disposing of their property. If Express Grain does not have lawful possession of the crops in their inventory, then perhaps the bank does not have any rights to the crops as being "inventory" of Express Grain? I'm not exactly sure how all of that would play out, but I am sure there are minds much greater than mine thinking through these issues already.

 

[Grevlin]

I believe John is Dr. Coleman's son. They've always been considered good people. Terrible situation.

It's Dr. Michael Coleman and son John. Considered good people doesn't mean honorable ...just that they hid their corrupt characters well.

When will criminal charges come into play?

 

[johnson86-1]

It's Dr. Michael Coleman and son John. Considered good people doesn't mean honorable ...just that they hid their corrupt characters well.

When will criminal charges come into play?

Most companies that go bankrupt aren't charged with criminal charges. And going bankrupt doesn't mean people are corrupt. They may have just made bad business decisions.

 

[PooPopsBaldHead]

Most companies that go bankrupt aren't charged with criminal charges. And going bankrupt doesn't mean people are corrupt. They may have just made bad business decisions.

Based on the lawsuits, either the bank received falsified financial documents from Express Grain or the bank waited until the farmers dropped all their harvest before pulling the plug. The court cases are going federal and the bank is accused of aiding and abetting fraud, unjust enrichment among other things in the farmer's lawsuit.

The farmers also hired a DC law firm that among other big cases were part of the Enron shareholders legal team and they were in the legal action that killed Joe Camel. This is going to be a political and federal case and with the stink coming off the timing of the bankruptcy, it certainly feels like there was some criminal activity by the bank and falsifying the financials is definitely a criminal activity by the operators of Express Grain.

Sears going bankrupt wasn't criminal. WorldCom was. This smells a lot more like the latter type of deal.

 

[Grevlin]

Most companies that go bankrupt aren't charged with criminal charges. And going bankrupt doesn't mean people are corrupt. They may have just made bad business decisions.

From the Jackson Jambalaya link above:

[h=3][/h]

A lawsuit accused Greenwood-based Express Grain Terminals of defrauding a Kansas City bank out of $75 million through phony reports and receipts. The company is currently in bankruptcy. The implosion of the grain elevator operation threatens hundreds of Delta farmers, banks, and even a public utility with severe financial losses.

Kansas City bank UMB Bank sued Express Grain Terminals, Express Grain Processing, Express Biodiesel, Dr. Michael Coleman, and his son John Coleman in Leflore County Chancery Court on September 28. The Colemans own Express Grain Terminals which in turn owns the other two companies.

That's corrupt.

 

[MedDawg]

If the farmers are unprotected, the truly rich farmers are about to get a lot richer because there's going to be a lot of farm land up for sale, and there are going to be a lot of former farm owners that are going to turn into tenants in what were supposed to be their retirement years.

You know who owns the largest amount of farmland in the US and I believe a significant amount in Mississippi?

Bill Gates

 

[PooPopsBaldHead]

Farmland is still one of the greatest assets controlled by the masses, not elite in this country.. Gates is the largest owner at 242,000 acres. The US has 915 million acres of farmland owned by over 2 million farmers of various sizes. Gates owns 0.026%.

Not sure where you were going with the statement, but the vast majority of farmers are still little guys.