Former Loan Officer Gets Blame for Seven-Figure Losses

by Mark Friedman  on Monday, May. 3, 2010 12:00 am  

Ÿ Richmark Services LLC of El Dorado was a trucking company that was formed on Sept. 10, 2001, according to the Secretary of State's Office. Its registered agent is Richard Nesbit of Junction City. He couldn't be reached for comment.

Richmark received two loans from Timberland: a $500,000 line of credit in June 2004 and a $600,000 loan in July 2006.

Turner "submitted false information to the Bank during the application process which concealed Turner's ownership interest in Richmark," Moore said in the letter. Moore said Turner was one of two members of the company - Richmark appears to be a combination of the first names of Richard Nesbit and Mark Turner. Moore also wrote that Turner, through another of his companies, Banded Drake LLC, received a monthly payment from Richmark.

In March 2007, Richmark filed for Chapter 7 bankruptcy protection and listed $890,000 in assets and $167,400 in debts.

Neither Turner's name nor Banded Drake is mentioned in Richmark's bankruptcy schedules. Richmark's bankruptcy lawyer, James Hunt of El Dorado, didn't return a call for comment.

Timberland said its loss was $939,288.

While not commenting on Turner specifically, Baldwin said it was a violation of bank regulations for a loan officer to lend money to a company where his interest isn't revealed.

"What it does is create a conflict of interest," Baldwin said. "You're sitting on both sides of the transaction.  ... If the company's having trouble, you might be tempted to do things that you shouldn't do."

Ÿ The principal owner of Wilson's Camper & RV Country of Hot Springs, identified as Rick Wilson, and Turner "have a long-standing relationship involving several partnerships and business enterprises which was concealed from the Bank," Moore wrote. (Rick Wilson's name was redacted from Moore's letter, but he is identified as the company's owner elsewhere in court documents.)

Timberland financed Wilson's floor plan loan.

"Turner used this relationship in several ways to benefit himself to the detriment of the Bank and others," Moore wrote: Turner received a finder's fee of $15,000 in 2003, although the reason isn't explained in the letter; a $55,000 payment in May 2003 related to a motor home sale, and a $25,000 finder's fee in 2007 related to the sale of the RV business. (Other court documents show Wilson sold the company for $600,000 on Dec. 31, 2006, to Snider's Camping World of AR Inc., led by Carroll Snider and Janet Snider, for $600,000.)

"As a result of this series of dishonest acts by Turner, the Bank endured a loss on several loans," Moore wrote.

 

 

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