Auction set for bankrupt Plainville Livestock Commission; $14M owed

 

By Christina Janney, Hays Post (KS)

June 11, 2019

 

PLAINVILLE ó An auction has been set for June 27 for the Plainville Livestock Commissionís real estate, vehicles and equipment in attempts to recoup some of almost $14.5 million in debt the business owes in its bankruptcy.

 

The real estate will sell at 11 a.m. and will be administered by the bankruptcy trustee, James Overcash. The equipment, vehicles and other property will be sold by Bud Palmer Auction starting at 1 p.m. at the livestock commission property at 907 NW Third in Plainville.

 

Plainville Livestock Commission declared bankruptcy on March 1. Tyler Gillum, 47, and his wife, Camden Gillum, 50, owners of the Plainville Livestock Commission were federally indicted on a check kitting scheme on May 29.

 

The Gillums are charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan, and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit.

 

The indictment alleges investigators examined unfunded checks and wire transfers totaling more $2 billion sent by Tyler Gillum as part of the scheme.

 

The indictment alleges the Gillums defrauded Almena State Bank in Almena; Landmark Bank in Manhattan; Colorado East Bank and Trust in Lamar, Colo.; Astra Bank in Scandia; TBK Bank in Dallas; Guaranty State Bank in Beloit; and The Bank in Oberlin.

 

Dozens of cattle producers were caught up in the scheme after money that was supposed to be set aside to pay cattle sellers was transferred from a custodial account to the Plainville Livestock Auctionís operating account. The Almena Bank froze both accounts, which resulted in bounced checks amounting to tens of thousands of dollars per producer.

 

Almena Bank filed an interpleader case, which is legal action that seeks to determine to whom the money that was transferred out of the custodial account belongs. In the interpleader case, Almena bank indicated Plainville Livestock Commission had defaulted on three loans with its bank totaling more than $3.49 million.

 

The interpleader case has been transferred from Norton District Court to federal bankruptcy court. That case is pending separate from the main bankruptcy proceedings and is still working its way through the court system.

 

According to court documents...

 

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https://www.hayspost.com/2019/06/11/auction-set-for-bankrupt-plainville-livestock-commission-14m-owed/