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FBI seized over 100 boxes of documents from Express Grain during raid

Tuesday, May 17, 2022, 7:23 pm News Flash Archive

According to a filing made by John Coleman's bankruptcy attorney in his private bankruptcy case, the FBI seized over 100 boxes of records during its raid on Mr. Coleman's home and the Express Grain offices at the oil mill. See our previous coverage of the raid here: FBI raids Express Grain, John Coleman's home

The filing was made in response to the court appointed bankruptcy examiner, who is trying to obtain access to the FBI materials for his investigation of Mr. Coleman's bankruptcy case. Our reporting on the examiner's request may be seen here: Examiner in John Coleman's personal bankruptcy case seeks documents seized by the FBI

Mr. Coleman's attorney, Craig Geno, responded to the examiner's request. In that filing, he disclosed that over 100,000 pages of files, in over 100 boxes, had been seized by the FBI in its February 24th raid. There were also an unknown number of computers seized as well.

Coleman argues that the documents likely won't help the examiner in his duty:

The FBI seized documents that date back many years, and are contained in over 100 boxes of documents, many of which contain routine records that recorded deliveries of grain, payments for grain, bookkeeping entries, accounts payable and voluminous additional information that is of no benefit to the Examiner, the Debtor respectfully submits .

Coleman states that his real concern is that the examiner not waste the very limited assets in the bankruptcy estate searching so vast a trove of documents:

The costs of examining hundreds of thousands of pieces of paper contained in over 100 boxes seized by the FBI would be prohibitive and, in all likelihood, would not further the duties and obligations of the Examiner.

That kind of investigation would exhaust all of the funds in this case, and then some, leaving the case administratively insolvent with no real benefit, so far as the Debtor can perceive.

As noted, however, the Debtor understands that the Examiner desires to conduct a thorough examination to determine what claims or causes of action may be available to the Debtor. Records that are many years old not only will probably not reveal any causes of action of the Debtor, any cause of action that may be somehow hidden within hundreds of thousands of pages of documents are likely barred by the statute of limitations.

However, in the event the Examiner desires to convert his fee arrangement from that of an hourly basis to a contingent fee, will be acceptable to the Debtor, agreed to by the Debtor and actually encouraged by the Debtor. Otherwise, the search of hundreds of thousands of pages of documents, many of which are many years old, is not only not a good investment, but a waste of the precious few estate assets that exist here.

Mr. Coleman's response may be seen here: Response to Examiner's Motion for Clarification

This afternoon, the court ruled that the examiner's "motion [is] granted in part subject to review of requested documents with Debtor's counsel."

Meanwhile in the Express Grain bankruptcy case, EG has requested that it be allowed to sell 34 vehicles and trailers to help raise funds to pay EG's creditors. The vehicles are worth, according to EG, at least $294,360.

According to EG, there are no liens on these particular vehicles. It is never explained how EG came to retain 34 vehicles that were not included as part of UMB Bank's collateral for the $71 million it loaned to EG.

To read a copy of EG's motion, and a listing of the 34 vehicles for sale, see here: Motion to Sell Vehicles

The money raised by the sale of these vehicles will be placed in the US Trustee's escrow account pending further order of the court.

 


To read all our coverage of the Express Grain bankruptcy case, see here: Index of Express Grain articles

 

John Pittman Hey
The Taxpayers Channel

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