Bad Debtor Of One Bank Resurfaces

by George Waldon  on Monday, Jul. 17, 2017 12:00 am   2 min read

Theodore Roosevelt Malloch Jr. (Hillsdale College)

Have you heard the story about the “envoy to nowhere” and a Little Rock bank?

Theodore Roosevelt Malloch Jr.’s status as a historic footnote in One Bank & Trust’s troubled loan portfolio has been upgraded in the months since the presidential election.

Malloch, 64, claimed to be a legal resident of Ohio but had homes in Connecticut and Florida. He grabbed the international limelight traipsing around Europe as the U.S. ambassador-in-waiting to the European Union. That led to journalistic scrutiny and “Who is this guy?” coverage of the man billed as a likely Trump appointee.

The Financial Times of London uncovered problematic details about Malloch that went beyond hype and self-aggrandizement. The inaccuracies Malloch surrounded himself with ranged from embellishment to outright lies; false statements is how the Brits phrased it.

No, his family genealogy didn’t support his claim to be a descendant of his namesake, President Teddy Roosevelt, and no, he wasn’t a past senior fellow of the University of Oxford’s Wolfson College. Those were among a string of sticky revelations uncovered by FT.

That led to a public back-and-forth between Malloch and FT, and more unsettling stains on his purported professional credentials, both academic and diplomatic.

In late May, the Wall Street Journal delivered what appears to be a coup de grace to Malloch’s overreaching EU ambassadorship campaign.

The newspaper reported that the State Department said Malloch isn’t a candidate for the ambassadorship, and a White House official said he was never in consideration for any post and never served in any capacity for the campaign.

Of late, Malloch has retreated from the scene, declining to “comment on negative stories” while saber rattling about “reserving all rights pending legal action.”

Talk of legal action brings us back to Malloch’s connection to One Bank.

He and his wife, Beth, filed for Chapter 7 bankruptcy in November 2013, listing assets of $152,562 and debts of more than $6.1 million. That case finally closed back in May.

Among their largest creditors was One Bank, which held a March 2013 judgment of nearly $2.3 million against the couple that was listed in their Connecticut bankruptcy.

The banking relationship dated to 2007.

One Bank raised fraud allegations against Malloch, noting that the net worth he claimed went from $36 million in May 2007 to $24 million in February 2009 to $23 million in January 2011 to $152,000 at the time of the 2013 bankruptcy.

Some might recall that Malloch visited Arkansas back in 2010.

The occasion was a pre-screening at the University of Arkansas at Fayetteville of a one-hour PBS documentary that he produced.

The title of the film: “Doing Virtuous Business.”

 

 

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