Bean Lumber: Money Woes Fault of Family

by Mark Friedman  on Monday, Oct. 26, 2009 12:00 am  

The Allegations

Bean Lumber alleges that between 2006 and 2007, the Thomasons created an elaborate scheme to steal from the company, according to the lawsuit Bean Lumber filed in Pike County last month.

Among the allegations are that the Thomasons created phony invoices to make it appear that Bean Lumber had $1.9 million worth of inventory it didn't have. They did that, the lawsuit said, to draw credit from Wells Fargo Bank, which under the terms of the credit agreement allowed the lumber company to draw up to 85 percent of the value of its accounts receivable and 65 percent of its inventory.

"Corey Thomason then immediately caused Curt Bean Lumber Co. to draw additional cash from Wells Fargo and used the cash to pay payables which she had also approved, some of which were also false, fraudulent or not properly payable," the lawsuit said.

Other allegations include the doctoring of invoices. The lawsuit accused the Thomasons of taking invoices from their own company, Mid-Ark, and altering them to show Bean Lumber owed the money, the lawsuit said.

Then one of the Thomasons would OK the invoice and have Bean Lumber pay the bill for Mid-Ark, the suit said.

In addition, Bean Lumber at times would deliver its lumber to Mid-Ark's customers and Mid-Ark would collect the money, the lawsuit said.

The schemes left Bean Lumber with at least $4.6 million worth of invoices or accounts for which it didn't receive any money, the lawsuit said.

Bean Lumber also accused a trader at North Pacific, Donnie Burke, of structuring lumber transactions so that Mid-Ark would acquire lumber products from another customer and then sell those to North Pacific. Then Burke would sell the same lumber products back to Scott Thomason while he was acting as a buyer for Curt Bean Lumber.

"In each of these transactions, when North Pacific billed Mid-Ark for the cost of the lumber products, Scott Thomason and Corey Thomason (at Mid-Ark) altered the invoice to make it appear to be payable by Curt Bean Lumber," according to the company's court filings.

Bean Lumber accused the North Pacific trader of knowing about the alleged fraud and is seeking an unspecified amount of damages.

North Pacific has denied the allegations in its court filings. Burke declined to comment.

 

 

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