Bean Lumber: Money Woes Fault of Family

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

Bean Lumber also accused Corey Thomason of running a check-kiting operation involving a bank account and $1.5 million credit line at Regions Bank. It also had another bank account and credit line at Chambers Bank of Danville.

The lawsuit blames Corey Thomason for issuing checks drawn on Regions and Chambers banks when no money was available.

Corey Thomason then wrote checks drawn on Bean Lumber's subsidiaries to cover the checks drawn on the Bean Lumber Co. accounts, the lawsuit said.

Regions and Chambers discovered the alleged check-kiting scheme and stopped it in August 2007, the lawsuit said. At that time, Bean Lumber had an overdraft balance with Regions of $537,600 and $68,000 with Chambers, the lawsuit said.

The lawsuit also accused the Thomasons of destroying company records to cover their tracks. Some of the records, however, have been recovered through the use of forensic accountants and computer experts "at a great expense" to Bean Lumber, the lawsuit said.

Bean Lumber is seeking an unspecified amount of damages for several counts, including fraud and breach of fiduciary duties.

 

Tough Times

The Thomasons left Bean Lumber on Aug. 16, 2007, which is when the company's problems started, the Bean Lumber lawsuit said. Bean Lumber's bank accounts were frozen because of the alleged check-kiting scheme, the lawsuit said.

As a result, Bean Lumber said, it couldn't pay its employees or vendors, resulting in it shutting its operations at its three locations, leaving more than 360 people out of work.

Bean Lumber said it sold its treatment plants in Glenwood and Buckner, Mo., at the end of 2007 to pay the debts caused by the Thomasons.

The lawsuit didn't say how much the properties sold for, but the price would have been higher if they were sold "as going concerns than as closed facilities and absent the fraud of the" Thomasons.

 

 

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