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untanglingwebs
El Supremo
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| "It should be noted that a Financing Statement was signed by David Wojahn at the time of closing, but due to a lack of institutional control at the FAIF, that financing statement was never filed. As it did not have a perfected security interest in the vehicles, FAIF realized its only recourse would b against Dave Wojahn individually on the personal guaranty. When this was brought to Davis Wojahn's attention his attorney indicated that Mr. Wojahn would be filing bankruptcy if the FAIF proceeded against him. |
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Fri Jul 08, 2016 7:53 am |
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untanglingwebs
El Supremo
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Attorney: Vienna Twp. agrees to pay $725,000 in towing lawsuit
Kim Crawford | Flint Journal By Kim Crawford | Flint Journal
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on October 12, 2007 at 8:00 PM, updated October 12, 2007 at 8:15 PM
VIENNA TWP. -- After losing a civil lawsuit in federal court in May, Vienna Township Supervisor Anthony McKerchie vowed he and the township would appeal a jury's award of nearly $700,000 in damages to a woman and her daughter who said he destroyed their towing business.
But today, the woman's attorney said the township's insurance company settled the suit as interest and fees were building.
"They settled this case for $725,000 and the first disbursement to my client was made today," said lawyer Tom Pabst.
The case was filed by Teri Wojahn, a former tow truck company owner and township resident in 2003, charging that McKerchie ordered Genesee County Sheriff Robert J. Pickell not do use her company's towing services.
The township contracts with the Genesee County Sheriff's Department for police service, and local officers, responding to vehicle crashes, accidents and other situations, require towing services to the tune of thousands of dollars each year.
McKerchie said today that he wasn't aware of the settlement of the lawsuit.
"It may be settled by the township's insurance company, but I couldn't say anything about it," he said. "They haven't called me. I have no details, so I have nothing to comment on."
He said that the settlement wouldn't cost township taxpapers anything.
Wojahn's towing company, called Dave and Teri's Towing, went out of business in 2005, two years after McKerchie ordered the sheriff's department not to use the company's serivces, according to court testimony. |
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Fri Jul 08, 2016 8:05 am |
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untanglingwebs
El Supremo
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K & C Frozen Treats
The loan, executed on June 11, 2001 for $125,000 was over the $100,000 cap and for unknown reasons There was no interest provision included in the Promissory Note.
Jacqueline and Coy Bridges filed bankruptcy on January 9, 2003 and listed FAIF as a creditor. With the debt discharged on May 23, 2003, including the personal guaranty , all that remained to recoup losses on the loan was the mortgage on the business property a 6502 N Saginaw.
The property, valued at $23,800 was transferred via quit claim deed on October 7,2005 and has been advertised for sale with no offers. |
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Fri Jul 08, 2016 8:15 am |
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untanglingwebs
El Supremo
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6)- American Financial Credit Corporation
Many problems exist in this file. A $32,000 note was given on December 22, 1997 for $32,000 for working capital and office furniture. There is a personal guaranty for only one o the two stockholders in the corporation. There s no promissory note in the file, which makes it impossible to know f the borrowers were the teo stockholders or the corporation.
The corporation was dissolved in 2000. The Business Loan Agreement, signed at closing showed no security agreement or mortgage.
There was a notice sent to the stockholder with the personal guaranty that the remaining balance of $8,012 would be sent to the IRS as earned income.
Note: Allegations were made that computers and other office equipment was being utilized by CCDC. These allegations surfaced after requests were made for listings of property recovered and placed into storage. |
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Fri Jul 08, 2016 8:28 am |
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untanglingwebs
El Supremo
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7. Blue Ribbon Cleaners
The loan issued on June 30, 1999 was for $25,170 and was secured by a mortgage for the property at 3119 N. Franklin.The property was lost for nonpayment of taxes, including taxes due before the closing of the loan.
"This is another failure on the part of FAIF to properly manage their loan portfolio.
A third party bought the property at tax sale and filed a complaint in Circuit Court to quiet the title. It was determined that the property value did not warrant buying the property back and a quit claim deed was executed.
The outstanding amount of $53,397 was to be sent to the IRS as income against the owners. Thus collection efforts were doomed to failure.
Note: If I remember correctly, a serious illness with the husband complicated the repayment of the loan. |
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Fri Jul 08, 2016 8:39 am |
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untanglingwebs
El Supremo
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8 ) Catfish Heaven
"The date of this loan was July 26, 1999, in the amount of $40,000. This loan was questionable from the start because it was made for the purpose of paying off a defaulted loan made by the Community Capital Development Corporation ("CCDC"). Originally Daniel Lay, borrowed money from the CCDC to open his business. In order to secure more money, Mr. Lay refinanced the loan and received additional funds through the FAIF. Mr. Lay never paid any money back to the FAIF and ultimately defaulted on the loan. The mortgage was foreclosed by FAIF in 2003 and a quit claim deed transferred the property from the FAIF to FAEC . At this time this property remains on the list of property disposition items of the FAEC. Meanwhile, there has been major structural damage to this property which may make it impossible to sell for any reasonable value", |
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Fri Jul 08, 2016 8:51 am |
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untanglingwebs
El Supremo
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9) Chicago Urban Wear
Two loans were made to this business in the names of Dorothy Edwards and Danielle Green, both in 2001 for a total of $48,000. Security for the loan on may 1, 2001 onsisted of a personal guaranty by both Dorothy Edwards and Danielle Green. I addition, there was a security agreement for the equipment and machinery for the business at 601 Martin Luther king Blvd. The second loan on November 13, 2001 was secured by a personal guaranty of Dorothy Edwards. A security agreement executed for the May 1, 2001 loan , there was no financing statement executed to perfect the collateral. The property for the business was leased and there was no other propetry mortgaged as security.
Dorothy Edwards son was to operate the business with the other two to have minimal involvement of the operation. The question sis why Dorothy Edwards was allowed to sign her personal guaranty as her only income came from the state for taking care of her two grandchildren. The son had a faslsified resume and was selling his clothes out of his car.
Danielle Green had the only adequate credit and she was never asked to sign a guaranty. The loan had to be written off as unrecoverable. Ms Green filed a lawsuit against the Edwards.
Note: After speaking to the owner of the property and others, allegations arose of the property having been used for illegal gambling. It was believed Ms. Edwards moved back to Chicago. |
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Fri Jul 08, 2016 9:11 am |
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untanglingwebs
El Supremo
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10, Intermingles Nightclub and Bistro
The loan for $48,500 was made on August 6,1999 to Garrick Aubrey and Leewonder Ruffin. No payments were made and the property was foreclosed in 2003. After assignment to FAEC the proerty was bid out and sold to Gary Hartley.
Once again FAIF noted the two holders of the note were issued notices on October 21, 2004, that the remaining debt of $47,100 was to be sent to the IRS. It is unknown if the debt was reported to the IRS as earned income.
NOTE: Ms Ruffin inherited the property and partnered with Aubrey to open a night club. When I visited the site, it was in disrepair nd part of the ceiling had collapsed.
Following up on building plans left behind by FAIF, I spoke to the originator of the plans. He stated he had been commissioned by Harold Hill and never been paid. He stated the plans were for a business to be combined with the building to the north of the building held by FAIF.
The first bid for the property was thrown out as allegations surfaced that the successful bid was not the high bid. Enough verification of the allegation necessitated a second bid.
Also, the liquor license purchased for the projected nightclub was later used by Garrick for another location which had been Peter's Pub at 1730 Glenwood. Problems arose as his wife was a Flint police officer and state liquor laws were violated.
Last edited by untanglingwebs on Fri Jul 15, 2016 2:52 pm; edited 1 time in total |
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Fri Jul 08, 2016 9:26 am |
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untanglingwebs
El Supremo
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11) M Reese
There were two loans made to Reese:
1-$48,500 on May 11, 1999
2- $ !,925 on September 16, 1999 for a home improvement
Nonpayment on the loans led to a sheriff's sale on January 30, 2004 . The redemption period ended and FAEC attempted to sell the house. |
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Fri Jul 08, 2016 3:31 pm |
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untanglingwebs
El Supremo
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C) from monitoring visit on 8-18-2005
Hinky Dinky Market
1. Loan check list was found. This check list stated there were three loans; One closed on 8/30/2000 for $326.000, one closd 3/6/2001 (no formal application is in the file). The check list stated there was an application/write up/business plan but I did not locate it. I did not find an approval letter/notification except for the promissory note itself. I did find a signed "Disbursement and Closing Statement"that an additional $50,000 was received. The promissory note was originally signed for $326,000 on 8/30/00. The second promissory note was signed was originally signed for $271,390.09 on 3/6/01. There is no indication of the third amount of $15,000 being updted in the note around 5/16/02.
2. Lack of documentation that any specific procedures had been followed.
3. According to the loan Payment Report, the payments are up to date and there is a balance of $322,519.52.
Recommendation- There needs to be follow up on this loan. The file appears to be lacking too much documentation to support the loans. Also, was the $15,000 ever loaned. |
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Fri Jul 08, 2016 3:52 pm |
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untanglingwebs
El Supremo
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Note: Then councilman Johnny Coleman fought this company in their attempt to have a beer & wine license citing issues that were not documented. The state finally issued the license as council has a habit of going along with whatever the councilperson in that ward wants.I am not sure, but I believe a 108 loan was desired by the owner. Coleman was furious when he found out the store had received the funds to remodel.
The $15,000 check was investigated by the Flint Police. The check had been cashed after an alternative name of a vending company was typed in. One of the employees eventually married the owner of the vending company. Police could not prove who it was that added the additional name. The company was an existing loan recipient and I was told they agreed to repay the $15,000. |
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Fri Jul 08, 2016 4:03 pm |
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untanglingwebs
El Supremo
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Tom Z's Coney Island
1. Located a Business checklist tat a loan for $80,000 was closed on 5/25/01. Did not find a formal application or approval. A Business Loan Agreement was signed for $80,000 on 5/25/01.
2. Lack of documentation that any specific procedures had been followed.
3. According to the Loan Payment Report, the loan is in delinquent status for 90 days or more with a balance of $73,179.53.
Recommendation: There needs to b a follow up on this loan. The file appears to be lacking too much documentation to support the loan. Additional documentation needs to be requested to support this loan.
Note: I am suspicious that documentation was removed from the file after the FAEC monitoring. I say that because there was information in the file that the loan was for a franchise type operation and not specifically for Tommy Z. Most of these Coney Island deals have failed. |
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Fri Jul 08, 2016 4:17 pm |
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untanglingwebs
El Supremo
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E. JR Handwash
1. No formal application was found. Approval was given in a letter dated 10/29/04.
There is a loan agreement for $100,000 signed on 11/23/04, which is a 5 year term, 20 year amortization beginning 3/1/05. There is also a collection fee of $3.
2. Lack of documentation that any specific procedures had been followed.
3. According to the lawyer's report, the final disbursement of the loan has not yet to be received and therefore no repayment has started. his is placing the business in the position of having to repay an increasing amount of interest.
Recommendation: As per the lawyer's report, there are several legal issues that are outstanding and FAEC needs to follow up on this prior to disbursing the dollars. A title search is also recommended to determine the priority of FAEC"s interest in the 527 W. Home property. The City of Flint Assessor's office has determined the property's fair market value to be approximately $20,000. |
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Fri Jul 08, 2016 4:30 pm |
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untanglingwebs
El Supremo
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12. R. Rowland
This loan was made on May 5, 1999, in the amount of $15,520. The note was not paid and FAIF foreclosed on the mortgage. Since acquiring the title on foreclosure, FAIF has executed a quit claim deed to FAEC for this property. The file contains a letter from the City of Flint Police department that unlawful drugs and/or paraphernalia were found and seized on the property. The improvements on the property were demolished by order of the FAEC board. The vacant lot which remained was a dumping spot for trash and debris and rather than continue the cost of maintenance, the property was deeded to the City of Flint by way of a quit claim deed on October 25, 2006. |
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Fri Jul 08, 2016 4:42 pm |
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untanglingwebs
El Supremo
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Figura repeated the inconsistent documentation of FAIF by the fiduciary CCDC. He also emphasized that FAEC had taken steps to ensure these issues did not occur again.
I am surprised by the brevity of the report. Also, the insertion of the monitoring report for page 6 was strange, especially as the monitoring report referenced the lawyer's report.
I observed irregularities in loans such as CCDC board members , who were not on the FAIF board, voting on FAIF loans and CCDC board members obtaining loans outside the zone for a close family member. A FAIF board member helped her father get a home loan and later transferred the home into her loan and became delinquent on the payback.
The whole concept behind the enterprise zone was to generate jobs and stop the proliferation of party stores and car washes, especially on such a gateway to the city as Saginaw Street. Instead many party stores and car washes were given loans. I notices two party stores That I am aware of that were not on the list and I believe both failed. |
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Fri Jul 08, 2016 4:51 pm |
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