Former state Sen. Jeremy Hutchinson is facing more legal trouble.
First Security Bank of Searcy filed a foreclosure complaint against him on Oct. 31, saying Hutchinson was in default and owed the bank at least $338,001 for the principal of the mortgage on Unit 331 at 3 Chenal Woods Drive in Little Rock. The complaint alleges he also owes $3,042 in past due interest as well as late fees, past due condominium property association dues and fees and a host of other fees.
Interest on what Hutchinson, a Little Rock lawyer and nephew of Gov. Asa Hutchinson, owes the bank is accruing at the rate of $56.33 per day, the suit said.
You may recall that Centennial Bank of Conway sued Jeremy Hutchinson in May, seeking $30,037.69, plus interest and late fees, which was the unpaid balance of a $50,000 business loan made to him in 2011.
On Aug. 31, Jeremy Hutchinson was indicted by a federal grand jury in Little Rock and accused of stealing campaign contributions, spending them on personal luxuries and expenses and falsifying state campaign finance reports and tax filings. That day he resigned from the Arkansas Senate, where he had represented District 33.
On Sept. 18, Hutchinson pleaded not guilty to 12 counts of wire and tax fraud. His lawyer, Tim Dudley of Little Rock, said, “The indictment is only one side of the story, and there is a lot of exculpatory evidence that was left out of the indictment.”
Troubled Finances
First Security’s complaint, filed in Pulaski County Circuit Court, adds to the picture of Hutchinson’s troubled finances.
In addition to Hutchinson, the bank’s complaint names as defendants the IRS, the Chenal Woods Property Owners Association Inc., the Arkansas Department of Finance & Administration, Centennial Bank and “Separate Defendant Tenants” of Unit 331.
The “Separate Defendant Tenants” designation appears linked to a Nov. 8, 2017, agreement in which Hutchinson assigned to First Security leases and rents “due and owing from any occupant of the Real Property.”
First Security named the IRS as a defendant because the agency filed a tax lien on the property on Oct. 4, 2016, the bank’s complaint said. The amount of that lien couldn’t be determined as of press time.
It named DF&A because of a mortgage Hutchinson executed with the state agency. Pulaski County Circuit Court records indicate the original mortgage, recorded March 17, 2016, was for $12,371 and was to cover income tax Hutchinson owed the state. It was modified on Aug. 25, 2017, to cover new debt of $15,707, with the mortgage then totaling $23,258.
First Security Bank noted Centennial Bank’s claim because of the May 15 consent judgment in which Hutchinson acknowledged owing Centennial the $30,037.69 plus $824.50 in attorney’s fees.
First Security named the POA as a defendant because it had filed a series of liens over delinquent assessments against Hutchinson.
And the bank noted that the condo property might have tenants claiming a leasehold interest because of a rental agreement with Hutchinson.
First Security claims its interests in the Chenal Woods property supersede all others’. Gary D. Jiles and Matthew K. Brown of the Millar Jiles law firm in Conway are representing First Security.
Hutchinson had not responded to an email and a telephone call from Arkansas Business as of press time on Thursday.
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