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SHAUN HAYES SPINS WEB

Notorious ex-banker Shaun Hayes may have met his end. He is involved in three federal lawsuits involving securities fraud and five other counts. He will not be able to wiggle his way out of this fiasco. Here are the lawsuits

CASE 1
The first case was filed by Bonhomme Investment Partners, LLC and its owners Richard C. Lehman and Donald Davis on March 14, 2013 against Shaun Hayes, Richard Miller estate, Simmons First National Bank. The Federal Deposit Insurance Co. as receiver for Truman Bank and Truman and Truman Bancorp, Inc. on the following counts:

Count 1 Federal Securities Fraud
Count 2 Missouri Securities Fraud
Count 3 Breach of Implied Covenant of Good Faith and Fair Dealing
Count 4 Common Law Fraud
Count 5 Negligent Misrepresentation
Count 6 Unjust Enrichment

On June 19, 2009, Bonhomme loaned $6M to Bancorp, executed by a promissory note in Bonhomme’s favor. Bancorp pledged its Truman and FFC stock as collateral.At the time of the loan, Hayes told Davis and Lehman that Sun Security Bank where he was Chairman and principal shareholder would loan Bonhomme the $6M for the Truman loan. He further stated he would arrange for Bonhomme to use the collateral provided by Bancorp on the Truman loan to secure Bonhomme’s loan from Sun.Based on Hayes’ statements, Bonhomme borrowed $6.025M from Sun to finance the Truman loan, and pledged the Bancorp Note and the collateral provided by Bancorp on the Truman loan as collateral for the Sun loan.Davis and Lehman also personally guaranteed the Sun loan. Lehman pledged securities he owned with his wife.

At the time of the Truman loan and the Sun loan, Bancorp was not entitled to pledge the Truman stock or the FCC stock as collateral for the Trumanloan because that stock had already been pledged to secure other Bancorp debts.

Hayes and Miller knew at the time they could not pledge stock that had already been pledged. They failed to disclose this to Davis and Lehman who were unaware the stock had already been pledged to secure other loans.In early 2010, Hayes and Miller allegedly lied to Davis and Lehman  by telling them  the FDIC told them they could not pledge the Truman stock to secure the Bancorp note because Bonhomme could not legally own stock in the event Bancorp defaulted. Hayes and Miller stated Bonhomme would need to exchange the Bancorp note for convertible debentures.

Based on their statements, Bonhomme agreed to exchange the Bancorp note for the debentures. In order to  exchange the note for debentures it was necessary for Bonhomme to obtain Sun’s consent to switch the debentures for the Bancorp note for two convertible debentures from Bancorp in the amounts of $4.8M and $1.2M.  Hayes gave Sun’s approval.

Bonhomme agreed to the proposed change and Bonhomme pledged the $1.2M debenture to secure the extension of the Sun loan. Hayes, Davis and Lehman agreed to all of this.On September 14, 2012 Truman was closed by the Missouri Division of Finance which appointed the FDIC as the bank’s receiver. The FDIC then sold Truman Bank to Simmons.

On December 19, 2012, Bonhomme filed a claim against Truman Bank. On January 15, 2013 the FDIC notified Davis and Lehman they disallowed Bonhomme’s claim. The case is pending.

CASE 2:

On April 12,  2013  Plaintiffs Cella Funds, LLC, Donald M. Davis, Joan M. Davis  and Richard C. Lehman filed suit against defendants Shaun Hayes, John Doe, officer or director of Excel Bank, the FDIC as receiver for Excel Bank and Investors Financial Corporation of Pettis County, Inc. on the following charges:

Count 1: Federal Securities Fraud
Count 2: Missouri Securities Fraud
Count 3: Breach of Implied Covenant o Good Faith and Fair Dealing
Count 4: Common Law Fraud
Count 5: Negligent Misrepresentation
Count 6: Unjust Enrichment

Hayes was a director and principal shareholder of IFC, Excel Bank’s parent holding company, and acted on behalf of Excel Bank and IFC.

In 2008, Donald M. Davis spoke to Hayes about obtaining a loan from Truman Bank for financing for business purposes. At this time Hayes was a shareholder of Truman Bancorp and consultant to Truman Bank. Hayes told Davis Truman Bank would not provide financing unless Davis purchased shares of the worthless Bancorp stock.Hayes told Davis Truman Bank could not finance its own stock purchase but that he would arrange for a loan to Cella Funds from Excel Bank to fund the purchase of the Truman stock and in turn, Cella would pledge the Truman stock to Excel Bank to secure the loan.In August, 2008 Cella purchased 32,607 shares of Bancorp stock, borrowed $750K from Excel Bank and pledged its Bancorp stock to Excel to secure the loan.  Donald and Joan Davis and Richard Lehman signed as personal guarantors.Prior to the receivership Excel Bank sold the loan to Big A, LLC, Pettis Co. Missouri.On October 19, 2012 Excel Bank was closed by the Missouri Division of Finance. The FDIC was appointed as Excel’s receiver. The plaintiffs filed claims against Excel Bank but on February 13, 2013 the FDIC disallowed them.The plantiffs are asking for actual damages against each defendant for their connection to securities fraud plus punitive damages of $2.7M against each defendant.The case is pending.

CASE 3:

Filed May 16, 2013 by Bonhomme Investment Partners, LLC, Donald M. Davis and Richard C. Lehman against Shaun Hayes; John Doe, officer or director of Excel Bank;   The FDIC: and Investors Financial Corporation of Pettis County Missouri, Inc.

Count 1: Federal Securities Fraud
Count 2: Missouri Securities Fraud
Count 3: Breach of Implied Covenant of Good Faith and Fair Dealing
Count 4: Common Law Fraud
Count 5: Negligent Misrepresentation
Count 6: Unjust Enrichment

The case is based   primarily on misrepresentations and omissions by Hayes to the plaintiffs.In February of 2009, Bonhomme borrowed $3.6M from Excel Bank. The loan was approved by Hayes who deceptively conditioned the loan and a loan from Truman Bank on Bonhomme’s purchase of Truman Bancorp stock. Hayes failed to disclose that Truman and Bancorp were in serious financial trouble and that the Truman stock was worth less than the cost of purchase.Hayes told Lehman that he would have to secure the loan with property he owned in California
and that if he pledged the property, Excel Bank would substitute Truman stock as collateral for the loan and release of Lehman’s property. Based on these representations, Lehman personally guaranteed the loan.In June 2009, Bonhomme borrowed $1.6M from Excel Bank – Hayes approved the loan. He deceptively conditioned the loan and the loan from Truman Bank on Bonhomme’s purchase and subsequent pledge of Truman Bancorp Preferred Stock. Davis and Lehman signed as personal guarantors.

On October 18, 2012, Excel Bank sued Bonhomme, Davis and Lehman in Pettis Co. seeking to recover the amount due on the loan. Excel went into receivership the next day and some of its assets were assumed by Simmons First National Bank. The case was transferred to St. Louis Co. Circuit Court and Simmons was named a plaintiff. The case is pending.

The plaintiffs are suing for actual damages plus punitive damages from each defendant in the amount of $20M.

The case is pending.

What a wicked web Hayes wove. Bonhomme was duped with worthless Truman stock that was in turn used as collateral on five loans.  He pledged the same collateral to Excel Bank and Sun Financial Bank.

Richard Miller conspired with Hayes to dupe Bonhomme. Miller then duped Monte Franklin into believing he had no knowledge of Hayes’ financial shenanigans with the plaintiffs when he retained Franklin to investigate Hayes. Miller further claimed Hayes had no interest in Truman even though Hayes was a major shareholder. Miller did not disclose Hayes was being sued by Eagle Bank for pledging the same Truman stock he had pledged to the other plaintiffs.
Can this be the beginning of the end for Hayes?

 

15 Responses to “SHAUN HAYES SPINS WEB”

  • cynical says:

    If this saga is true, then I hope justice is served, and that this alleged scumbag is shut down permanently. My question is this: where was all the due diligence leading up to the approval these loans? Methinks there are several others involved!!!!!!!

  • Jake Gittes says:

    Great Caesar’s ghost, Bergermeister! Thanks for the exhaustive update on this
    legendary reptile. Maybe he can be cellmates with Doug Morriss! This jackleg
    SOB has sure come a long way from Kahoka, MUH-ZOO-RAH!

  • Monte Franklin says:

    Thanks Bergermeister for airing Hayes’ dirty laundry. The three federal cases really pale in comparison to the numerous judgments Hayes has so far wiggled out of in St. Louis Co. Circuit Court. With the ever continuing interest on the judgments, Hayes owes approximately $42M to his creditors, thirteen of which are banks. Sadly, according to St. Louis’ number one tax attorney, Harry Charles, the federal cases, thus far, are in civil court and have not yet been upgraded to felony charges. If found guilty, Hayes will be fined and ordered to pay restitution – the biggest joke of all. Five will get you ten he will not pay one penney to any of the federal plaintiffs. I was shocked when Harry told me this since I believe charges of securities fraud merit prison time regradless if filed in civil or criminal court. If the feds do due diligence and look at all of the banks Hayes has fleeced overe the years perhaps that will influence the judge to invoke harsher penalties, but don’t hold your breath. Cynical asks why no due diligence was done prior to the various banks loaning Hayes money again and again even though he had numerous unpaid judgments prior to many of the loans being approved. The banks turned a blind eye to Hayes and just kept on giving him and his crooked partners, two of which are Michal Fox and Michael Litz, millions of dollars for their various schemes – all secured by the worthless stock in Truman Bank and Truman Bacorp which Hayes illegally pledged again and again as collateral. Recently the Bergermeister reported the cops raided Hayes’ Ladue manse and seized many valuable assets which were put in storage awaiting the outcome of the pending federal cases. When sold, those assets won’t even be a drop in the bucket when it comes to making restitution. As has been said in the past, Hayes is a serial bank robber. While Willie Sutton and John Dillinger robbed banks with guns, Hayes robs then with a stroke of the pen. The late Richard Miller was havily involved Hayes’ crooked schemes which ultimately led to the collapse of Truman Bank and Truman Bancorp. Both Hayes and Miller were mortgaged to the hilt, making it even harder for creditors to make recovery. Let’s hope Hayes has finally met his end and will no longer be a menace to bankers stupid enough to loan him millions of dollars. Last year, Hayes approached a rich businessman -another client of mine – asking to borrow $50K. When the businessman told Hayes he would have to secure the loan with ample collateral, Hayes became quickly incensed and hung up the phone. The businessman, it seems, was the only person Hayes dealt with that had the nerve to ask for collateral and became the only person who Hayes could not fleece. Hold the anchovies!

  • nose knows says:

    As many of you know or will guess, the various judgements and pending lawsuits should pale in comparison to what the Feds should bring against Hayes. The Feds have all of the time in the world to produce their argument and make their case…the Hayes greed is legend, still a member of the Racquet Club West, kids in school at MICDS, manse in Ladue and still attempting “deals”….Its time for the final chapter to be written. Vince Vogler is shrewed and capable however he may be out of cards.

  • KITTY says:

    It is reported that Hayes, Litz and Fox have offices at Vince Vogler’s law office. Up to this point in time, Vogler has had such a good reputation but that will likely to be tarnished black by the crooks he has cozied up to. I mean, what were you thinking, Vince. Certainly you must know about these three notorious crooks, and it you don’t you are in a dark place with no escape. Be wary!!

  • Jean Valjean says:

    Yet, despite all of the proof of the crooked scum Shaun Hayes really is, he has enjoyed incalculable “respect” from the public because they always see him in luxury cars, designer suits, and living in a mansion. When you have all the trappings of money, nobody asks where you got it from. Andre Agassi’s Nike commercial was right: “Image is everything”.

    Hayes does, however, have a great future in politics.

  • KITTY says:

    Jean Valjean: You failed to mention Haye, Litz and Fox and their spouses or mistresses held court at swank expensive Roberto’s Trattoria on a regular basis. “They acted like Kings for a very long time, drinking bottles of wine costing hundreds of dollars and throwing money around like I’ve seldom seen – even from the very wealthy, which they are not! They were good customers..we made a lot of money on them,” said an insider. I see Hayes out and about frequently and wonder how he can even show his face in public. In a way, Hayes is just like John Gotti. The feds had to criminal charges against Gotti four times before he was found guilty. Hayes has been sued so many times, the special process server is now a welcomed member of his family – including Thanksgiving dinner and Christmas Eve! Like Gotti, Hayes is going down this time. And the feds will eventually arrest Litz and Fox and try them for fraud, conspiracy, tax evasion and all other laws they violated in their mortgage scam. Rot in hell all!

  • Stung says:

    Hello, wake up people! All of these guys, those being sued AND the ONES SUING are crooks!! They were and are? BFF’s. The best crooks are the really smart guys. American Greed St. Louis Edition. How preposterous that they supposedly were being duped! What a joke. DD, hmmmm super bizman… one time big time banker, then after being involved in multiple banks that have gone down or just about did, then ends up having ownership in car dealership, golf course, home builder, vodka company..etc.. Tried to even develop a nursing home. Makes me wanna throw up. Pa- lease… The Truman fiasco is so crooked, see the biz journal articles 7/13/09, He was President of Truman Bancorp; also 1/11/10, things were going swimmingly. Yeah, right. May you all go down together. Scam artists, Incorporated.

    There are so many more scum bag bankers out there spawned from this trio it would blow your mind. Our personal story one day may be told, lawsuit pending.

  • Jean Valjean says:

    Hopefully, all of these shysters in Armani, their political cronies who enable them, and their silk-stocking legal henchmen will all end up wearing orange jumpsuits behind bars, and be reminded of their financial fallacies by hearing an endless loop in the jail cell of Gilbert O’Sullivan singing “A Loan Again…Naturally”.

  • Bankergirl says:

    Not so fast. DD did plenty to line his own pockets with illegal loans from Truman during his tenure there. Purchasing “defaulted” notes from citi without disclosing his interest in the deal to the board. Dummying up drive by appraisals on multiple million dollar loans. Assists from Hayes and Lehman on the deal. No collateral and then big cash out. These guys are thick as thieves and you can’t point a finger at one without implicating all of them. And the fdic personally had the facts and did nothing. And the FBI personally were handed the case and did nothing. So in the end I’ve learned you can’t do a rolling stop on olive blvd in this town without having the book thrown at you but if you have a little influence you can get away with anything.

  • Towncar07 says:

    The father of Shaun Hayes is both a terrific golfer, and very knowledgeable and funny…I believe the apple got blown away from the tree by the winds of greed. Father and son ought to have a serious talk…seriously.

  • cynical says:

    How sad! They need to round them all up, prosecute to the fullest, convict, incarcerate, and then throw away the key. If that includes some of our most
    “illustrious” citizens…then I say: BRING IT ON!!!!!!!!!!

  • Insiderman says:

    Don Davis is as dirty as they come. Someone should examine his loan records. And, btw, why have his real estate and personal property taxes NOT BEEN PAID for three years? Alas the fall from the top of the heap is hard and difficult. SH won’t be the only one ending up behind bars if justice ensues…ANYONE with half a brain stays far, far away from ANY business attached to DD. Perhaps that’s why he’s now a used car salesman…

  • Mango says:

    If these jerks are ever sentenced to some “down time” they will probably pen a book, “How To Become a Successful Fraud and Laugh All The Way to the Bank.” A New York Times best seller ennobling the scams they masterminded, only to be followed up by the movie rites, putting them on the fast track to becoming Hollywood’s newest little darlings. Maybe then these pit bulls will take each other out fighting for the best spot in the limelight.

  • KER says:

    Davis I know personally. He is a crook.

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