A new spiral is taking shape in the Lex Golden-Allied Bank-Walter Quinn nexus.
Southern Bank of Poplar Bluff, Missouri, has sued Allied Bank over participation in a June 2010 loan to Quinn Investments Ltd.
Southern alleges that Allied breached its fiduciary obligation by failing to administer the loan equitably, as mandated by the participation agreement.
According to the complaint, Allied received payments and additional collateral last year from Quinn that weren’t shared with Southern.
More than $637,000 is outstanding on the loan, which matured in January.
Lex Golden, controlling shareholder of Allied Bank, denied the allegations.
Six months after the loan was made, Southern Bank inherited the $1 million agreement in its FDIC-assisted purchase of First Southern Bank of Batesville.
You might recall the downfall of First Southern is attributed to an investment portfolio of bogus special improvement district bonds totaling $22.7 million.
Those fraudulent bonds were sold to the bank by its controlling shareholder, Little Rock lawyer Kevin Lewis.
Lewis, who is doing federal time for his record-setting fraud, also burned Allied Bank on a $3.2 million loan secured by counterfeit SID bonds. That deal ultimately cost Allied $1.5 million.
During the Lewis era at First Southern, the bank made loans to Allied Bank’s employee stock ownership plan, overseen by Golden.
But back to Quinn.
The Little Rock businessman made unsuccessful attempts to help Golden extricate Allied Bank’s parent company, Acme Holding Co., from its financial pit with Chambers Bank of Danville. (For much more on that, see Chambers Bank Lands $2 Million Golden Judgment.)
While Acme is in the final weeks of its Chapter 7 liquidation, Quinn continues to confront his own financial travails.
His 5,183-SF vacation home in Colorado is up for sale at the legal insistence of creditors.
Union Bank & Trust of Monticello provided a $3.7 million loan to buy the place back in October 2008 and later made a second loan of $675,000.
Quinn Investments paid a reported $5.7 million for the six-bed, eight-bath residence in the western suburbs of Aspen.
We understand the property also helps secure a $2.1 million loan from the Bank of Little Rock.