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DANCING WITH THE STARS

The event raised more than $470k Saturday night at the Four Seasons Hotel. The corporate community stepped up with their hearts and soles for the Independence Center and its mission to provide quality comprehensive services for adults living with severe and chronic mental illness.

JUDGES FAVORITE: Cynthia Mercer of Mercy; Michael Fitzgerald
CROWD FAVORITE: Sue McCollum
(Major Brands) and Senzo Makhaye
FIRST PLACE: Warner Baxter
(Ameren) and Lucy Fitzgerald
SECOND PLACE: Tom Minogue
(Thompson Coburn) and Angie Brooks
THIRD PLACE: Sue McCollum
and Senzo Makhae


Gallery of celebs of another kind:

U.S. ATTORNEY RICHARD CALLAHAN’S OFFICE COLLECTED BIG BUCKS

United States Attorney Richard Callahan said today that for the fiscal year 2013, his office had collected $11,448,830 in criminal and civil actions during the year.  Of this amount, $10,113,957 was collected in criminal actions and $1,334,873 was collected in civil actions. In addition, $11 million also assisted partner law enforcement agencies in the Eastern District of Missouri in collecting an additional $8,442,329 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.Earlier today, Attorney General Eric Holder announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013.  The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period

ELLEN SOETEBER, MIKE LITZ SNUBS IRS, JON HAMM’S TRAILER

Ellen Soeteber and Jerry Berger

Ellen Soeteber and Jerry Berger

A few nights ago, I walked out in the sunshine – almost 80 degrees – in Ft. Lauderdale – to dine with Ellen Soeteber and her spouse, Dick Martins, on their upcoming 40th wedding anniversary. Soeteber, retired editor of the Post-Dispatch, has jumped into the volunteer mode and gardening tropical flora. They sent their holiday greetings to all their friends in our town. . .U.S. Fed. Dist. Court has “judicially enforced several Internal Revenue Services summonses” for quondam real estater Michael Litz to appear in determining the corporate tax liabilities of his Eighteen Investments, Inc. The IRS, via U.S. Attorney Richard Callahan,  has directed Litz to provide books, records, papers and other data that are relevant to the investigation from 2009-2013. . Litz has snubbed the summonses. . .”I’m J.B. Bernstein – I’m a sports agent,” says our town’s Jon Hamm in the new trailer for the movie, “Million Dollar Arm,” in which his character has the “Mad Men”-like confidence. The sports drama movie, which bows May 16, has Hamm as an agent, who is shocked when his client signs with another. . . Nike is poised to outfit U.S. athletes for the 2014 Sochi Olympics with slick silver and fleece. . .Ever wonder who in the U.S. may be among the very first to learn the latest goings-on in the Vatican? It could well be a Ballwin man, Matthew Sherry, who translates scoops and articles by one of Rome’s long-time premiere Vatican observers, Sandro Magister, who writes for the well-respected Chiesa news. . .A Delaware jury has awarded $2.4 million to a man who was sexually assaulted as a child by Marist Brother Damian Galligan, who now lives in a retirement facility in our town and reportedly is quite wealthy, according to news reports. . .Online tracking, a burgeoning technology: Some stores now have software that tracks smartphones and knows when you entered the store, where you went, whether you bought something or if you stopped at another shop. . .

CHOPPED!

Friends from near and far gathered Friday afternoon to surprise barrister Michael “Wood” Smallwood on his “30th 30th” birthday at OB Clark’s in Brentwood.  The soiree hosted by the honoree’s baby sister Mallory Smallwood Dierkes featured cameos by Judge Mark Neill;  Wood’s 1976 SIU Soccer NCAA runnerup teammates Kent Hendrickson, Mark Kiesewetter, Tom Donovan and Hadley Keoller; SLUH classmates Tim O’Neill, Barry Burke and Tom Morehaus; ESPN’s Bill McDermott; Pasta House’s J. Kim Tucci; “Mr. Guy” Tom Neusel; former AB general counsel fly fisherman extraordinaire Mark Boback; Restoration Contracting’s Gary Sextro; barristers James E. Godfrey and Stephen Koenig; financial advisor/t.v. personality Kim Ellis; L.S.U cheerleader Delaney Smallwood and her cousins U of Evansville’s Kate and Colleen Dierkes.  When darkness fell Wood and entourage matriculated to the Holiday Party of the Year organized by Business Bank’s Potter Varley in the Ritz Carlton Hotel lobby where they were joined by Butch Bernard, Kat Foley, Diversified Foam’s Stanley Safron and hundreds of Potter’s “closest friends”.  The “Longest Night of the Year” festivites extended into Saturday morning only after Wood and company descended en masse on the 801 Chop House for the new hot-spot’s “soft” opening.  ”Chop” GM Ian Rockwell and company smoothly handled the  masses including Soft Surroundings’ Grant & Michelle Williams; BARcelona’s Frank & Eloise Schmitz; Kurt Diekman and Lisa Duham; and Laguna Beach resident and St. Lous ex-pat David Koester, who the next morning got an unsolicited 7:30 a.m. “wake-up call” from the normally efficient Ritz staff.

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?

 

TOUGH FOR PRIESTS

Last week was tough for St. Louis priests who became bishops with a notable exception. As reported here first (and became a tipsheet for the Post-Dispatch and television stations) Pope Francis dissed Cardinal Raymond Burke and Cardinal Justin Rigali , knocking them off a key church panel that taps new bishops. And Memphis Bishop Terry Steib was criticized for keeping silent about a Tennessee priest, Fr. James Murphy, who allegedly molested kids in clergy sex orgies.  

KSDK HIRE

KSDK has made an interesting hire. The the station has hired Marv Danielski in the newly created position of vice president and station manager. The station says that Lynn Beall will continue as KSDK general manager. Danielski was working as a consultant at Frank Magid before joining KSDK. What makes it interesting was Danielski, in his role as a consultant, had been working with KMOV (KSDK’s competitor) on news strategy for quite some time. In fact, he helped lead the latest news strategy meetings KSDK had before the November ratings book. So in other words, this guy has the KMOV playbook and is now working across the street at KSDK. It doesn’t seem fair for a guy like this, that has been in many of the planning meetings at one station, to get hired by a competitor. This is something that could have stations rethinking their use of outside consultants. And if you ask us, Magid owes KMOV a refund. Consultants should have language plans in their people’s contracts that stops stuff like this from happening. Danielski’s other claim to fame….jingle writing.

ALVIN MALNIK HOME FOR THE HOLIDAYS

Sam and Marilyn Fox with Alvin Malnik

Sam and Marilyn Fox with Alvin Malnik

Iconic Florida business exec Alvin Malnik came back to his St. Louis roots for a reunion with pals from the days he attended Soldan High and Washington University. The dinner took place Tuesday evening at Tony’s where a gaggle of about 20 toasted him and wife, Nancy. Among the crowd was former Ambassador Sam Fox and his wife, Marilyn. Malnik reminded Sam, “I dated Marilyn before you met her.”  Sam explained to Malnik that his purchase of Pritikin is set for expansion nationally.  Pritikin is a longevity center, diet and weigh loss spa and resort..    

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