Fergusons’ biggest creditor sues them

A third bank claims it was deceived the Fergusons.

EVB on Monday filed suit in federal bankruptcy court against Allen Mead Ferguson and Mary Rutherfoord Mercer Ferguson, claiming the formerly wealthy but now bankrupt couple intentionally overstated their wealth in order to borrow money.

EVB said in its suit that the Fergusons knowingly made false statements verbally, in writing and on financial statements with the intent to deceive the bank and obtain loans.

The couple owes $1.54 million to EVB, their largest creditor. EVB is trying to prevent the Fergusons from washing away the debt through the bankruptcy process.

EVB’s suit claims that Allen Ferguson admitted lying about the state of the couple’s finances during testimony at creditors meetings in May and June 2011.

The suit alleges that the couple lied about how much they were receiving from family trusts, how much the trusts were worth and how much they owed on mortgages.

Banks discovered during the bankruptcy process that assets the couple claimed to have, including a $2 million bond portfolio and a $1.4 million stock portfolio, didn’t exist.

The complaint from EVB comes on the heels of similar suits filed by Wells Fargo and Union First Market Bank.

Union was the first of the couple’s creditors to make such claims when it filed the complaint in September.

The couple did not contest Union’s claims, and the bank won a default judgment in its case, leaving the Fergusons on the hook for $800,000.

However, given the liquidation of much of the couple’s assets, the bank’s chances of being able to collect in full are uncertain.

Many of the Fergusons’ business and personal assets have been sold. EVB and Union will see at least a partial recovery of what they are owed from the sale of the business assets.

Mike Mueller, an attorney with Christian Barton representing EVB, would not comment on the case.

Roy Terry, an attorney with Sands Anderson representing the Fergusons, said he had not studied the latest case but would discuss it with his clients.

A third bank claims it was deceived the Fergusons.

EVB on Monday filed suit in federal bankruptcy court against Allen Mead Ferguson and Mary Rutherfoord Mercer Ferguson, claiming the formerly wealthy but now bankrupt couple intentionally overstated their wealth in order to borrow money.

EVB said in its suit that the Fergusons knowingly made false statements verbally, in writing and on financial statements with the intent to deceive the bank and obtain loans.

The couple owes $1.54 million to EVB, their largest creditor. EVB is trying to prevent the Fergusons from washing away the debt through the bankruptcy process.

EVB’s suit claims that Allen Ferguson admitted lying about the state of the couple’s finances during testimony at creditors meetings in May and June 2011.

The suit alleges that the couple lied about how much they were receiving from family trusts, how much the trusts were worth and how much they owed on mortgages.

Banks discovered during the bankruptcy process that assets the couple claimed to have, including a $2 million bond portfolio and a $1.4 million stock portfolio, didn’t exist.

The complaint from EVB comes on the heels of similar suits filed by Wells Fargo and Union First Market Bank.

Union was the first of the couple’s creditors to make such claims when it filed the complaint in September.

The couple did not contest Union’s claims, and the bank won a default judgment in its case, leaving the Fergusons on the hook for $800,000.

However, given the liquidation of much of the couple’s assets, the bank’s chances of being able to collect in full are uncertain.

Many of the Fergusons’ business and personal assets have been sold. EVB and Union will see at least a partial recovery of what they are owed from the sale of the business assets.

Mike Mueller, an attorney with Christian Barton representing EVB, would not comment on the case.

Roy Terry, an attorney with Sands Anderson representing the Fergusons, said he had not studied the latest case but would discuss it with his clients.

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected]

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMEBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

Subscribe
Notify of
guest
2 Comments
oldest
newest most voted
Inline Feedbacks
View all comments
Anne
Anne
10 years ago

I’m sorry, but I just can’t wrap my head around the fact that these banks didn’t do ANY checking into their finances. Just blows my mind.

Roxanne
Roxanne
10 years ago

Anne, banks rely on the borrowers to truthfully complete a personal financial statement reflecting their assets and net worth. The statement clearly states that the borrower is truthfully stating that the undersigned represents and warrants that the information provided is true and complete. A updated personal financial must be submitted by the borrowers yearly, which I assume they continued to misrepresent their networth. Though the bank does pull a credit report the bogus investment account would not have shown up regardless. Additonally, I do not think that banks can call around and verify acccounts as that would be an invasion… Read more »