Richard Torti Fights Layton Stuart Battle on Two Legal Fronts, County and Federal

by George Waldon  on Monday, Nov. 11, 2013 12:00 am  

The Rivercity notes are associated with Stuart’s unsuccessful investment in a string of convenience stores in central Arkansas. Rivercity accounts at One Bank are part of the tangled financial legacy that Stuart left behind.

Ownership of the OneFinancial stock determines the owner of One Bank. On paper, Stuart’s estate owns the stock.

However, the holding company is unmanned and adrift with no one in charge. Since Stuart and other executives were jettisoned from bank operations, a series of quarterly reports for OneFinancial to the Federal Reserve Bank have gone unfiled.

If Torti is confirmed as the executor of Stuart’s estate, he could assume administrative oversight of OneFinancial Corp.

BHL Financing could take control of the holding company through its stock-secured debt claims.

Such a transfer of ownership could bring with it a transfer of TARP liability with the U.S. government.

Ownership of the OneFinancial shares also is tied to financial claims by a second creditor.

The U.S. Treasury is owed about $13.5 million on TARP funding that flowed to OneFinancial and into the bank.

The holding company has missed six TARP payments because the bank is restricted from paying dividends because of a supervisory agreement with the Office of the Comptroller of the Currency.

The regulatory restrictions didn’t help Stuart keep current on payments to BHL either.

Preserving capital was the OCC’s operational mandate to One Bank officials. Some of the TARP funds intended to bolster capital allegedly were used for other purposes.

Pavlas signed off on a claim that Stuart allegedly converted nearly $2.2 million of the original $17.3 million in TARP money for personal use.

 

 

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