Transfer of Blankenship Assets Challenged

Blankenship Back in Court

Another chapter has been added to the troubles of Joe Blankenship.

Ron Crawford, president of Maumelle’s Southland Metals, has held a $410,000 default judgment against Blankenship since September 2010.

But when Crawford tried to collect, Blankenship claimed he was penniless – because he and his wife, Brenda, "sold" all their assets to his mom, Helen Blankenship of Heber Springs, in February 2008.

Now Crawford wants a judge to rule that the transfer of cash and assets to Helen Blankenship should be voided because the alleged scheme was done to defraud creditors.

Filed in the lawsuit are a few pages of Brenda’s deposition taken in May 2011, where she admitted that neither she nor Joe received a dime from Helen for the sale. And Brenda added that she and her husband still had possession of the assets sold, which include "automobiles, furniture, jewelry, artwork, clothes, TV’s electronics, lawn mowers, golf carts, golf clubs, dishes, silverware, etc.," according to the bill of sale, which was filed in the Blankenships’ paperwork.

Brenda said the transaction was done "in anticipation of First Security Bank trying to take everything from us." 

Back in 2008, Joe and Brenda Blankenship were facing a $7 million foreclosure lawsuit from the Searcy bank. First Security eventually received a $7.3 million judgment and the Blankenships responded by filing a short-lived Chapter 7 bankruptcy petition.

Crawford’s lawsuit also said Joe gave his mom all the cash he had, but when he needed an allowance, he turned to her, the lawsuit said.

Crawford said in his lawsuit, which names all three Blankenships as defendants, that they "collaborated and worked together" to keep his assets out of the hands of creditors.

In what is probably not the best legal strategy, all three Blankenships are representing themselves in the case.

In the answer they filed, they denied the allegations of fraudulent transfer. The answer also said that "Helen Blankenship paid money … for the personal property," which contradicts Brenda’s testimony at the deposition.

We couldn’t reach the Blankenships.

Matthew Finch, the Little Rock attorney who is representing Crawford, declined to comment.