Vicksburg MI 49097 | Brandon SWIA - 12/10/2012 11:01
It is hard for banks to lend to large grain farm operations because the production and collateral is spread over such a wide area and there is too much supplier credit and too loose of an attitude about accepting encumbered equipment in on trade. With livestock operations, an inventory can be done fairly easily although some banks are not very good at doing that. My experiences with Wells Fargo is that they generally have a pretty good lending staff on these type of larger loans, but when your borrower is trying to deceive you, it can be tough to catch. I wouldn't think this all happened in one year, so grain inventory should have been a clue?
Brandon
According to the Temporary Restraining Order Filing, It looks like Stamp signed everything over to Wells Fargo in December 2011. Stamp out grew all of his other Bankers. Rumor has it that he had a line of Credit with Wells Fargo of 70 Million dollars. The filing says Stamp owes Wells Fargo around 68 Million.
Stamp used Wells Fargo's money to pay off his other Bankers and pay his other bills. Also made up a couple more LLC's. Wells Fargo's Claim is that funneled Wells Fargo collateral into other Stamp owned Companies to buy Land, to the tune of 4 million dollars.. Not to mention selling $700,000 worth of grain sold to pay other creditors too..
As far as others extending loose credit, that's over 5 million in unsecured debt. |
Mike stamp pulling at louisville
