Friday, December 24

Metalgate in Hardin County - UpLift's Half-Page ad response

For you folks that don't get the Courier, the following was the published response,
"State auditors dig for dirt in Hardin County’s garbage"
(Headline Courier, Dec. 9)

In last week’s front page story about the state digging for dirt in our garbage, didn’t the manager of Hardin County’s waste management department, Mr. Randy Etheridge, admit, in the press no less, at least enough to be considered as "knowledge based on available information that reasonably causes the public official to believe," that a theft and other acts of unlawful taking of public money, property, and/or services has occurred in the department, with at least a wink and a nod from management?

As one of those FYI things: The general allegations, as now confirmed by Mr. Etheridge, in addition to theft of government property, are also defined as "Offenses Against Administration of Government" with no less than three or four counts of official misconduct, each of which is a Class E Felony under T.C.A. §39-16-402.

To note the seriousness of these admissions, it should be pointed out that the authorized terms of imprisonment and fines for a Class E felony, is not less than one year nor more than six years. In addition, the jury may assess a fi ne not to exceed $3,000, unless otherwise provided by statute. Plus facing the reality of the branding of a convicted felon for the rest of your life.

First, was that not one of the lamest reason for the retaliatory fi ring of the whistle blowing employee that could be put forth? Of course, it probably would be insubordination if one of your long-time employees had betrayed your mafia a-like dome of silence and as protocol sometimes requires, reported the crimes and retaliation to the county commissioner that represented his district, hopefully for an investigation. Why, this six-year employee even had the audacity to get his story on the Internet, for everyone to see. Yep, that is certainly being insubordinate, if you’re the mafia a or a gang of thugs, but not if you represent the local government.

I guess if you look at that in a kind of a skewed way, that would be a personnel problem. When an employee blows the whistle on unlawful activity, at any level, that could be a real personnel problem, that does not need to be kicked to the side of the road by those responsible for ensuring lawful activities of all public official.

Locally, one of those responsible parties is the mayor, as chief executive officer. But, who does one turn to when the mayor is either in blind denial or up to his closed eyeballs in trying to cover it up or make it go away, now that it is being looked into by the state and is in the court of public opinion?

The article noted that "for his part, Davis is supporting Etheridge" and "Nobody had any blessing to take any kind of scrap metal." What about Mr. Etheridge and "when I started... everybody was taking it. That was the policy,"

Remember, it wasn’t that former President Nixon actually broke into the Watergate Hotel, it was his participation in the conspiracy to try to cover it up, that forced him to resign.

Prior research has established that Mayor Davis stopped the potential "investigation" by the district’s commissioner, who also just happens to work full-time for the county and at the pleasure of the county mayor. The mayor’s direction was under the guise that the allegations were just a "personnel problem" and therefore there was nothing for the commissioner-county employee to get involved in because the commissioner-county employee did not have any jurisdiction to investigate personnel problems in the solid waste department.

The Mayor was going to have to back his other department head, Mr. Etheridge. How is that going for you, Mr. Mayor?

The commissioner-county employee — If you say so, OK with me, Mr. Mayor, nothing for me to investigate, case closed, no investigation, thank you very much.

If that ain’t hindering an investigation, I just don’t know what would be. It is kinda hard to defi ne when the commissioner- county employee didn’t mind being hindered, and in fact, probably appreciated it.

Does Mayor Davis now challenge his department head, Mr. Etheridge’s admissions that "when I started (as director) 14 years ago, everybody was taking it. That was the policy," with "I say they’re allegations?"

The standard of proof for the allegations is, "knowledge based on available information that reasonably causes the public official to believe."

Mr. Mayor, wouldn’t it be too long of a stretch to still consider them as just allegations after one of the targets of the inquiry, the manager of that department, has admitted to some of what you keep calling "allegations."
The fact question is, "Has there been a theft or other acts of unlawful taking?"

Just for the fun of it, let’s look at Mr. Etheridge’s comments in the article. "Employees are not allowed to take metal," Etheridge said. "Has that been a problem? Yes, from day one." Said another way - "From day one, there has been a problem with employees taking metal, even though they were not allowed."

One should ask county commissioner Grisham, who mans the Morris Chapel convenience center, if that also applied to him.

How about, "a "zero tolerance" policy was being implemented for employees caught stealing metal from the recycling bins."

Does that mean that up until now there has been a tolerance policy for employees caught stealing metal from the recycling bins? It certainly appears so.

But wait, don’t we already have a "zero tolerance" policy for theft of county property in all of the departments?

Or even better, how about, "While acknowledging that there have been employees who improperly took material from the recycling bins, Etheridge says anyone who claims he gave permission to do so is being untruthful." Well, how about, "yet Etheridge also says ‘that despite complaints of metal theft, he has never fi red an employee for pilfering.’"

No, just for trying to reporting it.

Are Mayor Davis and Mr. Etheridge unaware of the phrase "tacit approval."

Just to be helpful, and you know how we like to be helpful, according to my dictionary, tacit approval is a benign form of approval that is not expressed clearly, in words. It is silent approval. It is approval that is implied by other statements, actions or by a failure to clearly express disapproval with the situation, performance, idea, plan or request.

Also, tacit approval may be expressed by body language such as smiling, a nod of the head, a pat on the back or a shrug of the shoulders. It can be a friendly form of encouragement and support.

On the other hand it is approval that can be easily and conveniently denied as or if a situation deteriorates.

Do we really think the pilfering could have possibly been going on for as long as Mr. Etheridge acknowledges (from day one), without at least tacit approval?

Come on, Mayor Davis, that’s not reality, but welcome to the table of consequences.

Should Mayor Davis give serious consideration to his oath of offi ce to enforce the laws of the State of Tennessee and whether or not he has met his obligations under that oath?

 
Ted G. Cook,
Executive Director
Uplift Hardin County

Thursday, June 3

Duplicitious and Duping, David H. Davis Does Deceitful

Have you ever wondered what ever happened to the duplicitious David H. Davis, former County Commissioner who resigned in disgrace because the public found out that he enjoyed, or may still enjoy, giving minor boys alcohol and such?

Following is the front page article in the Courier this week

Accountant’s CPA license is expired

BY RON SCHAMING
The Courier - June 3, 2010 - Page 1

David H. Davis, a former Hardin County commissioner who resigned in 2002 following a criminal conviction, now stands accused of illegally doing business as a certified public accountant without a state license.

Barry Webb, owner of popular Crump nightspot Big Daddy’s, said revelations the man he says does his taxes has not held a valid CPA license in more than five years leave him feeling "duped."

He said Davis for years represented to him he was a certified public accountant. Webb noted that until fairly recently, the sign in front of Davis’s business at 1370 Pickwick St. in Savannah stated Davis was a CPA.

"I never question it when a man hangs it on his shingle," Webb said.

The matter came to light when during a routine records check, The Courier obtained a document dated two months ago.

It was allegedly submitted by Davis on Webb’s behalf to the city of Crump to comply with a city beer permit ordinance. The letterhead identifies Davis as a certified public accountant.

At the bottom, below a signature purported to be Davis’s, are the typed name and title, "David H. Davis, CPA."

However, according to the website of the Tennessee Department of Commerce & Insurance and confirmed by officials at the state Board of Accountancy, the license Davis held since 1984 expired on Dec. 31, 2004.

Just eighteen months earlier, in June of 2002, Davis had entered into a plea bargain in Hardin County General Sessions Court. Two counts of contributing to the delinquency of a minor were dismissed.

Those counts involved accusations Davis gave marijuana to two male teenage student athletes at his Savannah residence.

In exchange, Davis pleaded guilty to two counts of contributing to the delinquency of a minor via alcohol, and was required to resign his seat on the Hardin County Commission. He paid $1,300 in fines and court costs and was put on supervised probation for 11 months and 29 days.

While the state did not revoke Davis’s CPA license, the convictions could have put it in jeopardy.

Brad Floyd, executive director of the Tennessee Society of CPAs, said ethical requirements play an important role in getting and keeping a CPA license.

Depending on the severity, a criminal conviction is "good cause" for revocation, he said.

State law prohibits anyone without a valid license from using the title of CPA. Violators may even be subject to criminal prosecution for a Class C misdemeanor.

"This is unbelievable," said Webb. ‘It’s like going to an attorney who’s not licensed or a doctor who’s not licensed.

"I’m just so taken back by this I just don’t know what to say."

Crump Police Chief John Youngson said he intends to submit a recommendation that the city board of mayor and aldermen file a formal complaint with the state accountancy board.

Friday, Davis told his side of the story in an interview with The Courier. See sidebar, page 1.

Davis explains, admits mistakes

A staffer’s clerical error resulted in the wrong letterhead being used on a document submitted to the city of Crump on behalf of a local business, according to David H. Davis.

The letterhead falsely identifies Davis as a certified public accountant. Davis has not been a CPA since 2004.
"It’s just a mistake," he said.

Davis admitted the signature on the document prepared for Big Daddy’s in Crump and with the typed signature line, "David H. Davis, CPA," is his.

"She just tells me to sign stuff," he said of the two-month-old document. "Again, my fault."

Davis operates The Davis Firm in Savannah, which he says provides tax services that do not require the preparer to be a certified public accountant.

He said he allowed his CPA license to lapse in 2004.

"Anybody can do taxes," he noted.

Citing the time, cost and family medical expenses, Davis said he decided last year to forgo obtaining the state-required continuing professional education hours needed to reinstate the license.

But until 2009, despite the lack of a CPA license, the large sign in front of his Pickwick Street office continued to announce the location was the place of business of a certified public accountant.

Describing himself as an "eternal optimist," Davis said he left the sign up for years because he was still working on meeting the CPA license requirements.

He denied representing himself as a certified public accountant to any clients during that period.

But what about the big, red-lettered CPA sign viewed by thousands of motorists on busy Pickwick Street daily?
"If they saw the sign–maybe," Davis said.

End of Courier Articles - - -
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FROM THE PAST

--- In May 2002 TheNewSavannahJournal@yahoogroups.com, "themaverickentrepreneur" (i.e. Ted) wrote:

Hardin County Commissioner - BUSTED

The County Commissioner who lead the drive to eliminate the State Office of Constable in Hardin County was arrested Monday, May 20, 2002 on two counts of Contributing to the Delinquency of a Minor and is released on bond.

County Commissioner David H. Davis, CPA is to appear in General Sessions Court on Friday, May 24, 2002 to answer these charges.

The arrest is the results of an ongoing investigation by Constable Ted Cook that resulted from two families filing complaints with the Savannah Police Department. The Complains generally allege that Davis provided alcohol and marijuana to their sons, one of whom was a minor.

Could it be that Commissioner Davis had his own reasons for not wanting Constables in Hardin County?


Submitted for your consideration

Ted G. Cook
The Maverick Entrepreneur

Friday, March 12

Jerry Hunt's SIDC Loan - Research

Readers Write - The Courier - Hunt/SIDC - 3-11-10

I find very interesting the reaction to the story in last week’s Courier about the financial problems of Jerry Hunt, the former head of Savannah Industrial Development Corporation (SIDC) and former CEO of Team Hardin County.

Some have commented that this is a personal matter, hinges toward gossip and criticize The Courier for even printing it, let alone on the front page.

Well, excuse me. When a public figure uses public dollars for a personal project and then that project goes belly up in six months, for whatever reason, I think The Courier has an obligation, as a newspaper, to give a heads-up to the public. The public is entitled to know if it was a good loan, that was really a bad loan to start with, or to know why it went bad.

These are tax dollars, folks.

Hunt made himself a public figure in Hardin County a long ago and has now used his current employment with the state along with his knowledge and experience on how to get a loan of public funds from the SIDC, a component of the city of Savannah government and a member entity of Team Hardin County, which is a component of Hardin County government. So far, there is nothing improper about that, at all.

But it turns out all Hunt had to do was tell the SIDC the loan package had already been approved in Jackson, it just needs to be funded by the SIDC, because Hunt worked for those folks that approved it in Jackson. One of those conflict of interest things, you know.

One has to wonder what happens if "the loan package" that was approved in Jackson, was not the same "loan package" presented to SIDC "for funding." What happens when the current CEO of SIDC doesn’t bother to check the details or verify and document the information in accordance with the SIDC and statutory requirements? You end up where they are today.

At the request of the chairman of the SIDC board, over a two or three month period last year, I worked with a team of volunteers to complete a little audit or records research project on this loan. What we found is not a very pretty picture.

There were so many administrative mistakes made by SIDC, SWTDD and the USDA in Jackson that one must conclude that they could not have all been just mistakes. Some of them had to be "just didn’t do their jobs" kind of mistakes and Hunt was less than truthful as to his financial conditions and/or his intent to actually operate a bed-and-breakfast and to create jobs.

To make a long and convoluted story short, the day the SIDC board approved the funding of the loan, a few of the members were heard to comment, after the meeting, that, "We should have never approved that loan. It’s going to come back to bite us."

History has proved those folks right.

The details of how the loan was processed, or not processed as the case may be, is beyond the scope of what can be covered here in this forum, but the big picture should be clear enough—had the current CEO of SIDC, Steve Bunnell, verified the information in the IRP application for completeness and accuracy, the loan would have been a borderline project, at best, for an IRP loan.

Oh, that’s right, the final version of the IRP loan application didn’t get signed by the Hunts until almost 90 days after the IRP loan closed and only a week or two before the Hunts requested SIDC release their second mortgage on nine acres and a reclassification of the loan from an IRP equipment and working capital loan to a real estate loan. SIDC and those folks in Jackson says, OK with us.

SIDC released over $112,000 in real property collateral and tried to release the SIDC lien against all of the furnishing belonging to the Hunts and the B&B. Hunt’s estimated value of these furnishing was $160,000, including an estimated $26,000 in new furnishing in B & B project.

SIDC received no consideration for releasing their collateral or reclassification, but the Hunts picked up about $19,000 in cash and got a $10,000 car loan paid off. The rest of the proceeds of the sale went to principal and interest on Hunt’s past due first mortgage on the real estate.

One might challenge that when one lays this "small or minority business IRP loan" over the statutory template, this loan should have never been made. But, SIDC went completely out of bounds when they agreed to reclassify the loan from an IRP equipment and working capital loan to basically a second mortgage real estate loan and still use the IRP revolving loan funds.

These funds were provided to SIDC by the federal government, with restrictions and requirements, for relending for the benefit of economic and community development Even if the funds were initially loaned for the benefit of economic and community development, within three to four months the Hunts asked for, and everybody else agreed, to reclassify the IRP loan from an equipment and working capital loan, which, if properly structured, could be a qualified IRP project, to a second mortgage real estate loan, which could not be a qualified IRP project.

Where are the checks and balances? Who is minding the store? The total project cost was suppose to be $150,000. A $75,000 IRP loan and $75,000 equity. Where is the equity?

The questions are voluminous, the direct answers from the current CEO, Bunnell, have been avoided or answered as "I don’t know."

As a side note, if one thinks that Hunt and Bunnell have kind of messed up things with this loan, just wait until the research is published locally that shines a bright light on what kind of a mess Hunt, along with some of these same players, managed to leave for Team Hardin County.

Of course, the current group at Team Hardin County, which includes Mayor Kevin Davis among others, doesn’t seem to mind, as long as they don’t have to admit they just went along with Hunt and Bunnell. There is a real mess to be straightened out.

Remember folks, this all involves tax dollars and oversight.
Respectfully submitted for your consideration

Ted
Ted G. Cook

Thursday, March 4

The Misapplication of Tax Dollars by Team Hardin County, et. al.

As a follow-up to discussions at the City Commission meeting early May, 2009 the following summary and time-table was provided to the stakeholdders as an update on the researched fact knowledge base as it relates to the interlocal relations of the City of Savannah and Hardin County through Team Hardin County, Inc. (THC), Hardin County Convention and Visitors Bureau (CVB) and Savannah Industrial Development Corporation, Inc., (SIDC).

Summary of Scope of Loan Research-

The Open Records Act request that was delivered to the CEO of everything Team Hardin County and their member entities, on April 13th and again on the 19th of April, was about 75% complete last week and the required factual record should be completed documented shortly.

The records request and other research efforts has produced over 2,500 pages of data that includes financials, charters, by-laws, board minutes and other relevant records, dating back to fiscal year 2000 for THC, SIDC, CVB, and THC-NAIA

After completing a preliminary review of this data, while at the same time noting more importantly, the records that were not or could not be produced, although required by State statutes and/or their own by-laws, I believe there are certain conclusions that can be drawn, at this time.

The conclusions as to the alleged debt of SIDC to THC for reimbursement of paid operating expenses, and accumulated between fiscal year 2002 thru 2008, can be separated between SIDC and the City of Savannah as they relate to Hardin County and/or Team Hardin County, Inc., and can be summarized as follows:

The first conclusion that can be made is that there is no documentation, of any kind, in the records provided by Team Hardin County (THC) that demonstrates that there was ever any consideration or approval, by anyone, of any transfer to SIDC, or to anyone else, of any funds that THC held in a restricted trust for the benefit the Hardin County Tourism and Convention Bureau (CVB).

There is no record of the Board of Directors of SIDC or CVB authorizing THC to expend any funds, to anybody, over and above the approved and funded budget. In the case of SIDC the necessary approval of the source of funds for SIDC would be the City of Savannah, who owns and is responsible for SIDC. In the case of the use of the CVB surplus funds, it would be Hardin County government, specifically, the Board of County Commissioners and the Board of Directors of CVB.

The custodian of all of the funds of all of the member entities of Team Hardin County, at all times, was, and is, the CEO of THC, on behalf of the Board of Directors of Team Hardin County, Inc. and managed in accordance with the adopted by-laws of THC and it’s Corporate Non-Profit Charter from the State of Tennessee along with it’s federal 501(c)(4) tax exempt status.

The Records Reflect: The first unauthorized transfer of CVB funds by THC during this period was made by the then CEO, Mr. Jerry Hunt in fiscal year 2002. But, it required at least one of the designated board members for signatures on the general fund checking account.

The CVB ended fiscal year 2002 with surplus revenue (hotel/motel tax collections) of approximately $4,500 over and above what THC was obligated to pay for the budgeted operating expenses of CVB. These unauthorized transfers have continued each year through December 2008, when $11,206 surplus funding was received by CVB. This was down from the high of $30,602 in surplus funds in 2007.

As of March 2009, SIDC was $71,293 behind in reimbursement of operating expenditures to THC. CVB was $73,445 ahead of reimbursements to THC, allegedly for future expenses. Neither SIDC nor CVB have checking accounts and THC holds and/or disburses all co-mingled funds from a centralized general fund account.

Team Hardin County, Inc., has no budget or income, no expenses, and yet serves as THE Joint Economic Community and Development Board of Hardin County, (JECDB), or a state approved "similar" organization. This ‘Board’ is state mandated, if Hardin County and/or any of the municipalities in Hardin County want to be qualified and/or eligible for ANY state grant. The statutes also mandates that the County Mayor and City Manager of Savannah each play a major role in the formation and operation of the JECDB.

The research results also revealed what should be considered a major problem area, over and above who owes who what, how much and why. There seems to be a major flaw in the way THC and Hardin County function as a Joint Economic Community and Development Board (JECDB), or a "Sufficiently Similar" organization, as intended by the Tennessee General Assembly or even the by-laws of Team Hardin County, which the Chairmen of the Board admits are, "generaly ignored."

Submitted for your consideration,

Ted

Research Summary of SIDC loan to Hunt Consulting Company, Inc., et.al.

What follows is a partial summary of an open research projected, requested by the Chairman of the Board of SIDC, in order to document the properness of the loan of the federal funds on behalf of SIDC and the Board. Since the research involved only documents available to the public it meets the criteria for informing the public of public infomation.

Records Summary - Loan to Jerry Hunt , et.al., by SIDC of the City of Savannah, TN

(Note: Hunt was the incorporator and former CEO of Team Hardin County, Inc. and CEO of all of their member entities, including SIDC).

On February 19, 2009, a committee of Southwest Tennessee Development District in Jackson, TN, with Jerry Hunt, (also an employee of SWTDD) in attendance, approved a loan to Hunt Consulting Company two ways. First as a SMOB program loan and in the event the SMOB program did not have the funds available, the loan was also approved as an IRP loan. (The IRP program is funded through USDA Rural Development using federal funding.)

It is alleged that Hunt’s employment with SWTDD might have a potential conflict of interest problem and recommended the loan be funded through SIDC in Hardin County where the project is located.

On March 16, 2009, the Board of Directors of Savannah Industrial Development Corporation (SIDC) considered and approved the USDA-IRP loan application of Hunt Consulting Company, Inc., (HCCI) dba Fulton Hunt B & B for $75,000 for the renovation of a residence at 1430 Clifton Rd. Savannah, TN, operating capital and purchase of furnishing.

(Loan app.) - Company formed in early 2004 - contracted consulting engagements with 6 organizations. (Note: The borrower, HCCI, was chartered and formed as a domestic for-profit Tennessee corporation on March 3, 2009). The proceeds of the loan - the purchase of assets and working capital for borrower’s consulting business.

(Business plan) - Project is located on 17 acres.

(SIDC Minutes of March 16, 2009) - This application for loan funds at $75,000 at 3.0 percent interest for five (5) years is for the renovation of the residence and purchase of furnishings. . .

Special Note: The total cost of the project was projected to exceed $150,000 ($75,000 IRP loan and $75,000 equity, i.e. "Furnishings") and the loan would create seven (7) new jobs over a 24 month period. The one year time frame for hiring four new persons began April 1, 2009 and the remaining three new persons hired during the next twelve months.

The amortization schedule was $1,347.65 p/month for 60 months with 1st payment - May1,2009.

To approve the project, the Board of Directors, by statute, had to determined the loan request fit the criteria for eligible loan projects and meets the SIDC requirements of not more than 75 percent of the project cost or $15,000 per new job created over 24 months.

The loan was to be collateralized by the land and residence, the furnishings therein and the personal guarantees of the owners, Jane Fulton Hunt and Jerry D. Hunt. The loan committee of SIDC had met and approved to move forward with the loan pending additional collateral of four (4) lots located at Points of Pickwick in Hardin County. The loan was approved on March 16, 2009.

On March 17, 2009, SIDC executed the statutorily required assignment of collateral to USDA Rural Development.

Some 90 days after funding the loan, on June 20, 2009, Jane F. Hunt and Jerry Hunt on behalf of Hunt Consulting Company, Inc., executed the final version of the IRP Loan Fund Application. The house and property were listed with a local Realtor for sale as residence or business.

The Do Over

About two weeks later, on July 10, 2009, at the request of the Hunts and with the concurrence of the USDA in the Jackson TN office (Mr. Billy Lane), the SIDC Board of Directors held a special called meeting (via internet and/or telephone) and approved "A motion to approve the release the 9 acres and approved the reclassification of the loan from an IRP equipment and working capital loan to a real estate loan."

On July 20, 2009, SIDC, amended the note and trust deed to released their second mortgage on 9 acres of land, reclassified the loan as "a real estate loan" and approved a revised 15 year amortization schedule. There was no monetary consideration to SIDC. The new amortization schedule was for $517.94 p/month for 15 years with 1st payment - retroactive to April 1, 2009.

The 9 acres were immediately transferred to Jane Hunt’s ex-husband, Mike Martin, for $112,500. The proceeds of this sale were distributed as follows: Central Bank - $61,000 principal payment on $341,000 first mortgage loan that had matured and was up for renewal; Central Bank - $22,772 accrued interest; Central Bank - $10,000 to pay off a vehicle loan; and Jerry &Jane Hunt - $18,728 for reimbursement of over budget expenses on B&B project.

The stated rational for reclassifying the loan type was - "since over $60,000 of the SIDC’s loan was actually used to improve the real property, the Hunts are requesting the SIDC loan be reclassified as a real estate loan rather than equipment and working capital. This will change the amortization period from 7 (actually 5) years to 15 years."

(Pending fact verification - there is a real question if USDA Rural Development IRP funds can be used for this type of ‘real estate’ loan, because the property was not being purchased as part of the project, i.e. the B&B, and would no longer fit the criteria for eligible loan projects . Did Jerry Hunt have knowledge of the IRP restrictions?)

Shortly thereafter, a UCC was filed with the state, by an SIDC employee, to release SIDC’s security interest on "the furnishings therein." SIDC received no consideration for this release and the release of the collateral was not addressed or approved by the Board of Directors of SIDC. It was made at the direction of the Hunts attorney who had also prepared all of the incorporation and loan documents, including the March funding of the IRP loan.

There is no record of USDA Rural Development ever releasing their assigned security interest in the 9 acres or "the furnishings therein." That could be a problem.

The Bankruptcy

On October 27, 2009, Jerry D. and Jane Fulton Hunt file Chapter-13 Bankruptcy in Jackson, TN with the nature of the debts as primarily consumer debts, defined in 11U.S.C. 1101(8) as ‘incurred by an individual primarily for a personal, family, or household purpose."

The filings reflect assets of $327,749.28 and liabilities of $713,845.64. Included in the liabilities are credit cards (AmEx and Visa) $105,223; Various casinos around the country - $26,000; and $10,405 in unpaid construction and furnishing creditors for the B & B project.

Current Status

On November 24, 2009, the SIDC Board met in a called meeting to consider an offer from Mike Martin, who also holds a 3rd mortgage on the property of about $67,000, to purchase the house and property for $300,000 which would pay off the first mortgage and apply approximately $18,000 toward the SIDC loan. This would leave the SIDC with approximately $55,000 against the four lots at Pickwick.

The board voted to reject the Martin offer and elected to proceed, subject to the approval of the U. S. Bankruptcy Court, to foreclosure on their 2nd mortgage on the house, land and furnishings and their 1st mortgage on the lots at Pickwick. Central Bank agreed to loan SIDC the necessary funds to clear the first mortgage and help protect the SIDC position.