Bean Lumber Bankruptcy Blamed On Scam

by Mark Friedman  on Monday, Jan. 27, 2014 12:00 am  

Bean also agreed that at the time of closing on the loan, Malteco would receive a 25 percent ownership of the company and 25 percent of the voting rights. Malteco would also receive “8 percent of the dividends from the profits during the period of investment.”

In exchange, Bean’s company would receive $1 million and then 18 payments of $500,000 each.

Bean signed the documents on May 27, 2010, and began making installment payments on the $125,000 depository fee.

Kirsch and Kimmey, according to the complaint, told Bean that he would get the initial $1 million by mid-July 2010.

It would be the first in a string of broken promises about the money.

Show Me the Money

It didn’t take long for Bean’s other creditors to start to worry. By August 2010, they didn’t think Bean would ever see the $10 million, according to the lawsuit.

At that point, Bean asked Kimmey for proof that Kirsch and Malteco were legitimate and that Bean Lumber would receive its funding.

Kirsch sent Bean a copy of his passport and two letters attempting to explain what happened.

“Due to the financial Summer Break and Summer Vacation in Europe we have experienced delays in moving the funds from our source to Bean Lumber,” Kirsch said in an Aug. 17, 2010, letter. “We expect this matter will be resolved in a timely manner.”

Kirsch followed up just three days later with another letter saying he expected the money to clear in 17 bank workdays.

“We are working diligently to resolve and address all our clients at this time,” Kirsch wrote.

 

 

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