Claims by Clary Creditors Add Up as Hickory Hills House Closes Bankruptcy Case

by Arkansas Business Staff  on Monday, Jan. 20, 2014 12:00 am  

Hickory Hills home bears $18.2 million in judgments.

Some loose ends in the tangled financial affairs of Steve and Cindy Clary have been tied up.

U.S. Bank of Cincinnati foreclosed on the couple’s 7,200-SF home in the gated Hickory Hills neighborhood, and their Chapter 7 bankruptcy case was closed.

The bank is claiming more than $655,000 owed on the first mortgage, which allegedly has gone unpaid since September 2010. The bankruptcy case was filed in July 2010.

The west Little Rock home is the domicile for a roster of liens, judgments, etc., filed by creditors against the CPA and developer.

The most recent addition to the list is a nearly $1.6 million lien filed in connection with a judgment against Steve Clary, who pleaded guilty to misappropriating part of a bank loan.

That debt is restitution owed Banc of America Leasing & Capital LLC, a subsidiary of Bank of America. He was sentenced to 30 months in federal prison and is due to begin serving his time on March 10.

The pecking order of creditors, behind U.S. Bank, with a possible claim on the house is:

  • Centennial Bank of Conway, $350,000;
  • Banc of America Leasing & Capital, a $3.7 million default judgment;
  • Regions Bank of Birmingham, Ala., a $1.3 million default judgment;
  • Hendren Family LLLP, led by James Hendren of Little Rock, $1.1 million default judgment;
  • Hank Kelley of Little Rock, a $263,748 default judgment;
  • Naftal Family Ltd., led by Mark Naftal of Atlanta, $527,497 default judgment;
  • Whiz Kid Ventures LLC, led by Phil Whisenhunt of Little Rock, $1 million;
  • Waterford Investors LLC of Oklahoma City, a $6 million judgment;
  • Valley View Bank of Overland Park, Kan., a default judgment of $1 million;
  • Hall 3000 Internet Ltd. of Frisco, Texas, a $1.7 million default judgment;
  • BancorpSouth Bank of Tupelo, Miss., a $300,000 default judgment; and
  • Hickory Hills Property Owners Association, a default judgment of $20,544.

We do the math so you don’t have to: That’s more than $18.2 million in potential claims against a house valued at $1.2 million.

The bankruptcy case was closed Jan. 8, after three and a half years, when the Clarys’ attorney, Frederick Wetzel III of Little Rock, filed proof that the couple had complied with the final requirement for discharge: a financial management course.

 

 

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