Bank accuses builder of fraudulent transfer
Posted on Tuesday, July 8, 2008
URL: http://www.nwanews.com/nwat/News/66933/
A Rogers bank recently filed a lawsuit against an area builder, Mark B. Foster, claiming he gave away property to his children and a girlfriend to prevent the bank from collecting money he owed. Pinnacle Bank last August filed a separate foreclosure lawsuit in Washington County against Foster alleging his default on a $ 2. 06 million loan. After two tracts of property securing the debt were sold to the bank at foreclosure in March, Foster still owed the bank $ 1. 26 million, the complaint states. But the bank’s most recent action against Foster alleges he transferred multiple assets — planes, boats and other property — to his adult children, all of Fayetteville, and a girlfriend. They are all named as in the bank’s most recent case. The bank wants to sell the property to help settle Foster’s outstanding loan. The bank claims Foster is guilty of fraudulent transfer of assets because he was asserted he was insolvent, was not paying his bills, had been threatened with litigation and made the transfers specifically to prevent the bank from collecting its judgment.
“ It’s something personal. It ain’t business, ” said Foster. “ They’ve got it in for me and they are making my life miserable. ” The bank is asking the court to appoint a receiver to take possession of and sell the transferred property to satisfy the bank’s judgment. The bank is seeking the following vehicles transferred by Foster: • A 2005 Chevrolet 1500 Silverado 4 x 4 truck, 1993 Mazda RX-7 and a Yamaha 660 4-wheeler to Ryan Foster. • A 2003 Nissan 350 Z and 2002 GMC Yukon XL to Mark L. Foster. • and a 2004 Infinity G 35 to Kindle Foster. Foster denies the bank’s claims. He said a personal financial statement he gave to Pinnacle Bank indicated that these vehicles, while in his name, were purchased for his children.
Foster said the transfers are legitimate because they took place before the bank got its judgment in the foreclosure action. He said Pinnacle Bank is being unreasonable while other banks are working with him on his real estate debts after the market faltered.
Foster blames what he considers unfair treatment on Bruce Loftin, a director at Pinnacle Bank and the president of First State Bank of Northwest Arkansas. Foster said his troubles with Pinnacle started after First State foreclosed on him. The banks have some common ownership, Loftin said.
Loftin refused comment on pending litigation. He referred comment to the bank’s attorney, Todd Lewis of Conner and Winters, who also refused comment.
Foster said the bank spent more than $ 500 to have the Benton County sheriff seize his inoperable 1952 Studebaker. His son, Ryan, purchased the car at the auction for $ 100 and the only bidder against him was the bank’s attorney, Foster said.
“ The tow bill was more than that, ” he said.
Pinnacle’s lawsuit also claims that Foster should be ordered to sell his interest in beachfront property in Mexico he purchased in 2006 and may have given to his girlfriend, Tina Coombs, in 2007. The bank seeks to have any transfer of this property set aside.
Coombs said she and Foster were engaged in Mexico and he bought the beachfront lot as a wedding gift. The property is located in Talum, which is about two hours south of Cancun, she said.
“ We hoped to build on it and all this mess happened. ”
In addition to the transfers to his children and girlfriend, Foster is accused of transferring to third parties during this same time frame: a race car and a 42-foot trailer used to transport it, a large commercial Volvo truck, a 2004 Kubotas tractor, a Learjet airplane, his interest in a Cessna airplane, stocks, jet skis, Sea Doo boats and Kawasaki Mule, among other things.
Foster said these transfers were made to settle other debts.