Lonoke County farmers hope to recover the $5.5 million they lost dealing with Turner Grain Inc. from a company they claim worked closely with the Brinkley crop broker: K.B.X. Inc. of Benton.

More than 20 farmers alleged in a lawsuit filed in Lonoke County Circuit Court that K.B.X. knew Turner Grain was operating a Ponzi scheme but failed to warn them.

K.B.X. has denied all allegations of wrongdoing in its court filings, countering that “the sole reason K.B.X. is a party to this lawsuit — the Plaintiffs’ desperate search for a deep pocket.”

The farmers sued officials of Turner Grain and K.B.X. and other defendants back in August 2014. But that case was put on hold after Turner Grain Merchandising Inc. and its former co-owner, Dale Bartlett, each filed for bankruptcy protection. Turner’s co-owner, Jason Coleman, hasn’t filed for bankruptcy protection, nor has anyone been charged with a crime.

In December, U.S. Bankruptcy Judge Richard Taylor granted a request from the farmers’ attorney, Donald Campbell III of Little Rock, to be allowed to move forward with the Lonoke County civil case. (The farmers had named Turner Grain Merchandising in an earlier complaint, but it wasn’t included as a defendant in the most recent one because a settlement had been reached with the farmers.)

“We have alleged that there was a conspiracy between … Mr. Coleman and Mr. Bartlett and the officer or some of the employees of K.B.X., that they had knowledge of a Ponzi scheme being operated by Mr. Bartlett and Mr. Coleman,” Campbell, of the Little Rock law firm of Campbell & Grooms, said during Bartlett’s bankruptcy hearing in December.

If the farmers prove their allegations, Campbell said, the defendants could have joint-and-several liability, meaning that the plaintiffs could collect the total damages from any of the 20 named defendants.

“And clearly, the easiest place to collect it is the one that has the most money,” Campbell said. “And we believe that KBX has more than enough money to pay the entire judgment.”

In the 43-page complaint, the farmers are alleging breach of contract, conversion, fraud and other misdeeds. They are seeking an unspecified amount of damages.

Neither K.B.X. President Steven Keith nor the company’s attorney returned a call for comment last week.

After the bankruptcy judge said the Lonoke County case could move forward, K.B.X. asked to be dismissed from the case by Lonoke County Court Judge Sandy Huckabee.

K.B.X. said it has racked up “substantial legal fees and costs” related to the litigation of the farmers’ “groundless and fabricated allegations,” according to its pleadings.

K.B.X. also said that it paid Turner Grain more than $104 million between Oct. 14, 2013, and Aug. 11, 2014, which represents virtually all of the rice bought through Turner Grain as of Aug. 11, 2014, when news began spreading that Turner Grain was failing to pay farmers.

K.B.X. also offered to pay Turner Grain Merchandising’s trustee the $310,000 that it still owed the defunct company.

“Despite these facts, Plaintiffs seek to have K.B.X. pay twice for the same rice, a truly unjust result,” K.B.X. said in its filing.

In April, Judge Huckabee denied K.B.X.’s request to be dismissed from the case.

Last month, Huckabee ordered the farmers and the defendants to mediation before he will schedule any hearings or set a trial date.

Huckabee made the ruling after learning that the farmers’ jury trial could take four weeks. “It is the duty of the Court to encourage the settlement of cases and controversies through means of appropriate dispute resolutions process,” Huckabee said in the May 19 order.

The mediation is expected to take a day, but a date hasn’t been set.

Meanwhile, the lawsuit and accompanying exhibits and pleadings shed more light on the collapse of Turner Grain, which cost farmers millions of dollars owed on crops.

Farmer’s Story

As far back as 2011, Turner Grain offered farmers better prices for their crops than they could get elsewhere, according to the farmers’ lawsuit.

Money that was owed to farmers and other creditors allegedly was used by Bartlett and Coleman for “their own personal gain, including the purchase of farm land, equipment and vehicles,” according to a pleading by Campbell in Bartlett’s bankruptcy case.

John Mark Isbell, who is a partner in Zero Grade Farms in Lonoke County, said that Zero Grade harvested long grain rice in the fall of 2013 and stored it in grain bins. The rice was sold in the summer of 2014, and Turner Grain handled the transaction.

Although Turner Grain has sometimes been described as a “jobber” that actually bought and resold rice, the farmers said they didn’t sell the rice directly to Turner Grain, nor did the company take possession of the rice.

Instead, Turner had to wait on a payment from K.B.X. before the farmers were paid, the lawsuit said. The lawsuit said that Turner Grain’s primary source of revenue from rice transactions was K.B.X., so the buyer was actually K.B.X., the farmers’ allege. K.B.X. denied in its answer that the farmers sold it rice, however.

Dale Bartlett, the co-owner of Turner Grain, said in his answer in the case that Turner Grain Merchandising, which did business as Turner Grain, “was in the business of brokering the sales of rice between grain producers and grain purchasers.”

Isbell said trouble started shortly after Zero Grade interacted with Turner Grain around the first of July 2014. It didn’t get paid.

And Zero Grade wasn’t alone. Around that time, other farmers reported trouble receiving their money.

The farmers said in their lawsuit that K.B.X. knew about the financial trouble at Turner Grain but didn’t tell the plaintiffs.

K.B.X. “knew of intentional fraudulent activities and the resulting financial distress of Turner Grain, Jason Coleman and Dale Bartlett, yet K.B.X. continued to allow Turner Grain to broker contracts on behalf of K.B.X. as Purchaser,” the lawsuit said.

Isbell couldn’t reach Coleman, and Turner Grain’s office “was not forthcoming with information about how to proceed,” he said.

Sometime in August 2014, however, Isbell was given contact information for Bartlett.

Bartlett had testified in previous bankruptcy-related proceedings that Coleman fired him on July 11, 2014, after Bartlett questioned a Turner Grain bank statement. Still, Bartlett said, he agreed to return to the company in August, just as the company was fielding calls from angry farmers who hadn’t been paid.

Zero Grade said Turner Grain owes it $2.3 million.

Turner Grain was forced into receivership, and then it filed for bankruptcy protection. Its bankruptcy converted to a Chapter 7 liquidation in 2015. The 112 creditor claims filed total $39.7 million.

“What was taken from us over the course of a couple of months in the summer of 2014, when we became victims of this fraud, wasn’t only the potential profit from the grain that we had stored in those grain bins, but it was the operating capital that went into it as well,” Isbell said.

He said his business had to borrow money to survive.

Isbell said in the bankruptcy hearing that he would rather not try the case at all.

“We wanted to deliver our grain and be paid for it,” he said. “And we’re forced into having to … go to the legal system to do that instead of just having a contract fulfilled as it should have been.”

Isbell said the time and costs spent on legal fees could be better spent on rebuilding a business “that was almost destroyed by the bad actors in this case.”

SCOTRUN, Pa. - He was fired from one company, then another, then another. And still Anthony Diaz continued handling other people's money.

The smooth-talking securities salesman affiliated with 11 different investment firms in 15 years, getting booted from five of them and resigning from another amid customer complaints and rules infractions. Yet his checkered employment history never seemed to slow him down on his way to earning millions by pushing high-fee, high-risk "alternative investments."

Now under federal criminal indictment for fraud - he has pleaded not guilty - and with dozens of former clients lodging complaints, Diaz illustrates what can go wrong when investment firms hire problem brokers.

It happens with alarming frequency. An academic study from March found that 15 to 20 percent of the brokers at some of the largest financial services firms in the country, including one that employed Diaz, have disciplinary records. Moreover, nearly half of financial advisers fired for misconduct find a new job in the industry within a year - and are at greater risk of re-offending, according to researchers at the universities of Chicago and Minnesota.

The researchers also found that brokers with a propensity for ripping off their customers tend to migrate to certain firms, suggesting the firms "specialize" in misconduct and "cater to unsophisticated consumers."

"A lot of these guys are real hustlers," said Jacob Zamansky, a securities lawyer who represents investors, explaining why firms would take a chance on an unethical broker. "It's all about the money, and it's a risk-reward. ... This is a big problem, perhaps one of the biggest."

SEEKING ANSWERS

Democratic Sen. Elizabeth Warren, of Massachusetts, and Republican Sen. Tom Cotton, of Arkansas, have asked Wall Street's self-policing body to address what it's doing about firms that routinely employ brokers with a history of fleecing clients.

The Financial Industry Regulatory Authority has until June 15 to respond, but agency chief Richard Ketchum has already warned investment firms that routinely employ high-risk advisers to expect "searching questions" about "the special supervisory steps they have taken to ensure no further bad actions."

New federal regulations, meanwhile, would require brokers to put their clients' interest ahead of their own when giving retirement investment advice. Wall Street lobbying groups sued last week to block the rules, arguing they're too burdensome and subject brokers to too much liability.

Even with so many rule-breaking brokers still in business, Diaz's serial firings stand out. He's the only one of the nation's 650,000 licensed brokers to have been fired more than three times, according to an analysis conducted for The Associated Press by Securities Litigation and Consulting Group Inc.

Why was he able to land on his feet so many times?

"It's about greed," said attorney Albert Murray Jr., who represents about 30 former clients of Diaz. "Here's a guy who's making lots of money and has a big portfolio of clients all over the country. That's why they did it."

Diaz's attorney, Darren Gelber, said his client rejects the allegations.

"It is his very, very strong and fervent belief that everything he did was proper and legal," Gelber said.

'A TOTAL, TOTAL RIP-OFF'

Pennsylvania retiree Vincent Sylvester, 69, said he invested nearly all of his $500,000 nest egg with Diaz after the financial adviser guaranteed him returns of 8 percent and more. Sylvester said Diaz inflated his net worth to qualify him for the investments, didn't explain the risk and failed to tell him his money would be tied up for years.

Now he and his wife are making barely $400 a month on their savings - a return of less than 1 percent - and their retirement is less comfortable than it might have been. Sylvester is dealing with bladder cancer on top of his financial stress.

"The whole thing was a total, total rip-off," said Sylvester, who worked in the real estate department of a homebuilder. "It took me a lot of years to save this money, and a lot of hard work, and unfortunately you've got guys like him who don't really care."

Federal prosecutors allege Diaz advised his clients to put their money in real estate investment trusts and equipment leasing partnerships, types of higher-risk, illiquid "alternative investments" geared to wealthier, more sophisticated investors.

He had them sign blank documents; then he falsified their net worth, income and risk tolerance to make it appear they met the suitability requirements of the products, according to a grand jury indictment.

"I had no idea they were super high-risk," said Bruce Kilby, 67, of Scotrun, a retired pharmaceutical company worker who invested about $350,000 with Diaz. The financial adviser, Kilby said, "was a very fast talker, and when you asked questions that he didn't want to answer, he more or less talked down to you."

Kilby won a $220,000 arbitration award against Diaz, who has challenged it in state court.

First Allied Securities Inc., the firm with which Diaz was affiliated when prosecutors say he began committing fraud a decade ago, said in a statement that it thoroughly vets prospective hires and expects them to be ethical and professional.

But the company routinely employs advisers who have been disciplined for misconduct - nearly one in five, according to the Chicago and Minnesota researchers. First Allied called the study flawed.

WHY HIRE HIM?

After First Allied permitted Diaz to resign in 2009, Diaz was fired from several other firms before his last stop at IBN Financial Services, a brokerage in Liverpool, New York. Its CEO, Richard Carlesco, said in an interview that Diaz's big roster of clients made him an attractive hire.

Given his employment history, "it was a stretch for me," said Carlesco, whose small brokerage had a squeaky-clean record. "I'd not had a rep like this before."

But Carlesco said he thought Diaz had been terminated by his earlier firms for "stupid reasons" that largely related to issues of customer service, not because he was selling clients on bad investments. At the time of his 2012 hire by IBN, Diaz had no open consumer complaints against him, Carlesco said.

He said he called FINRA, the industry regulator, about Diaz, and FINRA officials advised Carlesco to put Diaz on "heightened supervision." Carlesco installed a staffer in Diaz's office in the Pocono Mountains and sent his compliance officer there every week.

"Trust me, I just didn't jump into this blind," he said.

In retrospect, Carlesco said, he regrets getting involved. The financial adviser cost the firm more in legal and compliance fees than it earned from his clientele, Carlesco said.

Most of the other companies that affiliated with Diaz after he resigned from First Allied did not return messages from the AP.

With Diaz now barred from giving investment advice, he has entered another sales profession - real estate. He was licensed in November and works for a commercial real estate firm.

His staff biography touts his "solid background" in finance.

"Anthony has his (clients') best interest at heart," the biography says.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

About 30 people attended the Venture Center's first-ever "Lift the Rock" event, featuring VC FinTech Accelerator startup FundSeeder of Westport, Connecticut — and a gong that celebrated the center's two years of success.

The new event will take place at 9 a.m. Wednesdays at 107 E. Markham St. Events begin with an entrepreneur's pitch. And the gong helps celebrate the successes its participants share.

The Venture Center says Lift the Rock is designed to connect the startup, business and investor communities of central Arkansas. Lift the Rock pitches will end with participants sharing key business contacts with the day's presenter.

On Wednesday, Emanuel Balarie, CEO and co-founder of FundSeeder, gave the inaugural Lift the Rock pitch.

Balarie said his company is disrupting the hedge fund industry's "monopoly" by connecting talented traders to investors, combating a lack of access by young investors.

During his pitch, Balarie described FundSeeder's end-to-end solution. The company finds the 1 percent of 40 million traders it says are talented and elite, enhances the traders' skills, offers traders' infrastructure that complies with regulations, and then connects eligible traders with investors.

FundSeeder makes money by taking a 20 to 30 percent cut of the traders' revenue, he said.

Balarie said fewer than 700 hedge funds control 80 percent of more than $3 trillion under management in that industry. Balarie said that's resulted in underperforming funds, high fees, a lack of choice and lack of transparency — things millennial investors won't accept.

Balarie said those young investors will create the demand for solutions like FundSeeder's.

Venture Center President Lee Watson called the first Lift the Rock event "awesome" and said it is the next step to developing a startup ecosystem.

After his pitch, Balarie said that the FinTech Accelerator, sponsored by FIS, is going well and that the Venture Center has done a good job in recruiting programs with actionable resources, like Lift the Rock.   

Also Wednesday, the Venture Center said members have raised $6.8 million in seed capital and created more than 153 jobs in the two years it's been open.

Arkansas Business is once again taking nominations for its annual "20 in Their 20s" list, which honors young professions in their 20s who excel in their profession and are leaving their mark on the Arkansas business and nonprofit community.

The 2016 class "20 in Their 20s" honorees will be profiled in a future issue of Arkansas Business. Included in this issue will be a listing of their accomplishments within their businesses, organizations and communities.

The deadline to nominate is July 1. Nominations can be made at ArkansasBusiness.com/20.

You can see previous classes here.

For more information, contact Leslie Gordy at (501) 372-1443 or at lgordy@abpg.com.

Matt Hicks has joined First National Bank of Northwest Arkansas in Fayetteville. Hicks has accepted the position as vice president and commercial lender.

Al Druso has joined the Little Rock office of Simmons Bank as senior vice president and bank card manager.

Druso previously worked as general manager of a credit card and merchant center for Marshall & Ilsley Corp. and as vice president of card services for First Financial Bank of Cincinnati.

Samuel “Tanner” McKnight, Seth Parsley, John David Sonnier and Ashish V. Patel have joined the Arkansas State Bank Department as bank examiner trainees.

McKnight, assigned to the Jonesboro office, is a 2015 Arkansas State University graduate.

Parsley, a 2014 A-State graduate, will work in the Jonesboro office until Dec. 31, when he will transfer to one of two Little Rock offices.

Sonnier graduated from Lyon College at Batesville in 2015 and has been assigned to a Little Rock office.

Patel, a 2015 University of Arkansas at Little Rock graduate, will join the Bank Department’s Information Systems group.

Dr. Shauna Lucas was recently appointed to the board of directors at Diamond Bank of Hot Springs. Lucas works as a family practitioner at CHI St. Vincent in Hot Springs. She served on the financial committee of the Hot Springs Medical Group from 2002 to 2008.

Samuel Carlton has joined the financial team at Generations Bank in Fayetteville. Carlton accepted the position of loan officer after graduating from the University of Arkansas in December.

See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

Sometime we have errors in Arkansas Business that were completely unavoidable. A business surveyed for a list gives us a wrong number — but not so wrong that it looks questionable. Or a name is misspelled in a news release, but not so egregiously that we fire off an email asking, “Are you sure …?”

But most of the corrections we publish are the result of failure to follow established reporting techniques. Errors happen because we didn’t ask enough questions to understand a nuance, or we didn’t double-check a fact. This is basic blocking and tackling, to coin a cliché. (At this point in my career, I’m tripped up most often by the things I’m just sure I know.)

In hindsight, it is so easy to see the red flags that the reporter missed and that two rounds of editing and then proofreading of the typeset page failed to spot.

I tried to keep all that in mind as I read Senior Editor Mark Friedman’s recent article exploring the Federal Deposit Insurance Corp.’s lawsuit against BKD LLP, the regional accounting firm that had the job of auditing First Southern Bank of Batesville.

You know the story: Kevin Lewis, a Little Rock lawyer originally from Searcy, conjured up a small fortune by printing up bogus special improvement district bonds and then either selling them to banks or using them as collateral for bank loans.

In 2009, after several years of successfully passing off worthless paper as valuable securities, Lewis borrowed the money to buy controlling interest in First Southern and proceeded to sell his own bank more than $23 million worth of his fake bonds.

Twenty-three million dollars is a lot of money in any context. In this context, it was more than the bank’s total equity capital. So when the fraud was discovered in the fall of 2010, it cost the FDIC just about $23 million to clean up the mess. Lewis pleaded guilty to bank fraud and is serving a 10-year sentence in federal prison; former CEO Woody Castleberry and a member of the board of directors, Jennifer Styron, were banned from the banking industry for life.

Then the FDIC, looking for anyone else who might share the blame and the cost, sued BKD. The auditors, the FDIC said, should have spotted Lewis’ fraud. After all, examiners from the Arkansas State Bank Department and the FDIC “identified possible fraud in connection with the [improvement district] bonds after just a few phone calls,” according to the lawsuit.

I don’t know enough about auditing to know whether BKD’s auditors were incompetent. I do know from hard experience that errors often seem obvious in hindsight, and while they may be the result of lazy technique, some errors are virtually unavoidable.

BKD, in turn, used a defense of the kind that drives me crazy: “The other guy did it first.” Had Castleberry and his employees at First Southern not let Lewis get by with forging a loan in someone else’s name back in 2008, BKD argued, he never would have been in a position to buy shares in First Southern and then to pressure the bank to take all those bogus bonds off his hands, and there would have been no fraud for the auditors to miss.

While that is undoubtedly true, it hardly explains why the auditors didn’t find what the bank examiners found.

Ultimately, as we reported last week, BKD agreed to pay $4 million but continued to deny any liability.

I’m not sure why it took so long to reach that settlement, but the fact that the civil suit almost made it to trial provided us with enough documents to produce fascinating new insight into just how sloppy the operation of First Southern was.

Even before Lewis was a shareholder or director, First Southern let him take out two loans totaling $800,000 in the name of a business associate who said his signature was repeatedly forged. The proceeds of the first loan to Michael Hulsey were sent directly to one of Lewis’ companies.

With blocking and tackling like that, is it any wonder Lewis decided to move in and take over?

Publishing a correction is miserable, humiliating work. I hate every one we have to write, especially when the error is one of my own. But we want to know when we have errors in our stories, and we want to correct them, both online and in print, because our goal, always, is to provide the highest quality information to an audience that deserves nothing less.

If you spot a factual error in Arkansas Business or on ArkansasBusiness.com, I want to know about it at soon as possible.

Gwen Moritz is editor of Arkansas Business. Email her at GMoritz@ABPG.com.

A 20,232-SF office building in west Little Rock tipped the scales at $2.61 million.

8114 Cantrell LLC, led by Billy Roehrenbeck, purchased its namesake project.

The seller is Atkinson Properties LLC, led by Russell and Richard Atkinson.

The deal is financed with a $2.2 million loan from Centennial Bank of Conway.

The 0.83-acre development previously was linked with two February 2013 mortgages totaling $1.9 million held by Central Bank of Little Rock.

Atkinson Properties bought the Lenders Title Building at 8114 Cantrell Road for $2.25 million in October 2004 from Cantrell Road Partnership, led by David Boerner.

Rural Acreage

More than 1,200 acres of mostly wooded property south of Wrightsville weighed in at nearly $1.5 million.

Horizon Capital Partners LLLP, led by Ross Whipple, acquired the land along state Highway 365 east of Big Lake. The seller is Morgan Farms, led by John Morgan.

The land was assembled as part of three transactions totaling more than $158,000.

The sellers were Frank and Arline Fletcher, more than $30,000 in February 1943; the estate of August Bassler, $55,000 in April 1959; and Thomas Ziegler, $73,000 in November 1971.

Multifamily Buy

A 12-unit apartment project in downtown Little Rock changed hands in a $754,000 sale.

Dukes’ St. Clair LLC, led by Sheffield Duke, bought the St. Clair project at 500 E. Sixth St.

The seller is St. Clair On 6th St. LLC, led by David Thompson. The deal is backed with a three-year loan of $590,000 from First NaturalState Bank of McGehee. The 0.19-acre development previously was tied to a September 2010 mortgage of $500,000 held by One Bank & Trust of Little Rock.

The property was acquired from the bank more than five years ago for $615,000.

Rest Inn Purchase

A 26-room motel in North Little Rock is under new ownership after a $700,000 deal.

Prothro Lodging LLC, led by Sanjay and Sejal Patel, purchased the Rest Inn at 5801 Pritchard Drive from Pareshkumar and Vrushika Patel.

The sellers provided a 15-year wrap-around mortgage of $600,000 to finance the deal.

The 0.95-acre development is linked with an April 2001 mortgage of $734,000 and December 2007 mortgages of $140,262 and $61,206, all held by Riverside Bank of Sparkman (Dallas County).

Prothro Lodging bought the land in July 1996 through ABS Enterprises for $130,000.

The sellers were First Southeast Corp., led by William Pritchard, and the Roman Catholic Diocese of Little Rock.

Vet Transaction

A 3,378-SF veterinarian clinic in north Pulaski County rang up a $360,000 sale.

Vaughn John Harden Drive Properties LLC, led by Carl Vaughn, acquired the Jacksonville-Cabot Veterinary Clinic at 6619 John Harden Drive. The seller is the John & Paulette Lewis Living Trust.

The deal is funded with a five-year loan of $100,000 from Simmons Bank of Pine Bluff and a three-year loan of $474,000 from the trust.

The Lewis family purchased the 2.29-acre property for $14,000 in November 1981 from J.C. and Ruby York.

HEM Acquisition

Adjoining commercial projects in North Little Rock combined for a $200,000 transaction.

The HEM Trust, led by Hugh Edward McConnell III, bought the 3,864-SF Care-Free Aluminum Products office-warehouse at 5205 E. Broadway and 3,127-SF Little Rockins Daycare at 5172 E. Broadway.

The seller is CBM Construction Co., led by Clark McGlothlin. CBM financed the entire deal.

The 1.26-acre Care-Free property was purchased for $75,000 in April 1997 from Darlene Woodall.

The 1.43-acre Little Rockins property was acquired for $74,000 in November 1982 from Ronald Pack.

Hallen Court Home

A 5,032-SF home in the Hallen Court neighborhood of west Little Rock’s Chenal Valley development sold for $722,000.

Charles Davidson Jr. purchased the house from Cartus Financial Corp. of Danbury, Connecticut.

The deal is financed with a 30-year loan of $577,960 from Little Rock’s Bank of the Ozarks.

Cartus acquired the residence for $728,000 in November 2015 from Kristi Crum. She bought the property for $725,000 in February 2014 from Thomas and Cynthia Formicola.

Maisons Abode

A 5,063-SF home in The Maisons neighborhood of west Little Rock’s Chenal Valley development drew a $658,250 transaction.

Thomas and Betsy Mars acquired the house from William and Brenda Simpson.

The residence previously was tied to a July 2012 mortgage of $483,210 held by Bank of America in Charlotte, North Carolina.

The Simpsons purchased the property for $719,000 in August 2007 from Dr. Lynn Thomas and her husband, Thomas Smith.

Courts House

A 4,455-SF home in The Courts neighborhood of west Little Rock’s Chenal Valley development changed hands in a $589,900 deal.

Gina Tilley bought the house from Cartus Financial Corp. Cartus purchased the property for $590,000 in October 2014 from Chad and Lillian Cooper.

The Coopers acquired the residence for $585,000 in March 2009 from Roger Coburn Jr. and his wife, Julie.

Miramar Residence

A 4,536-SF home in the Miramar Place neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $540,000 sale.

Hassan Alakshar purchased the house from Robert Clancy Jr. and his wife, Patty. The deal is backed with 30-year loans of $432,000 and $54,000 from U.S. Bank of Cincinnati.

The Clancys bought the location for $85,000 in January 2015 from Todd Kuhn.

High-Rise Condo

A 1,998-SF condo in downtown Little Rock rang up a $521,000 transaction.

Christopher Moses acquired the 10th- and 11th-floor residence in the River Market Tower at 315 Rock St. from RMT II LLC, led by Jimmy Moses and Rett Tucker.

The property previously helped secure April 2014 mortgages of $18.6 million held by First Security Bank of Searcy and $3.3 million held by Citizens Bank of Batesville.

The 1.2-acre site was bought in October 2005 as part of a $5.08 million deal with the Arkansas Teacher Retirement System.

Live Oaks Dwelling

A 4,139-SF home in the Live Oaks neighborhood of west Pulaski County sold for $512,000.

Sangeeth and Rebekah Samuel purchased the house from Carl and Patricia Evans.

The deal is funded with a 15-year loan of $409,600 from Regions Bank of Birmingham, Alabama.

The residence previously was linked with a June 2012 mortgage of $393,750 held by Greenlight Financial Services of Irvine, California.

The Evans family acquired the property for $499,000 in March 2006 from David and Shirley Hardin.

Kohl’s Mortgage

An 88,581-SF retail project in west Little Rock was used to secure a $6.37 million mortgage.

Patel Kohl’s Property LLC of Cary, North Carolina, obtained the seven-year loan from Atlantic Capital Bank of Chattanooga, Tennessee.

The 9.82-acre Kohl’s development at 13909 Chenal Parkway previously was tied to a February 2006 mortgage of $7.4 million held by Bank of America.

The property was bought for $9.9 million more than 10 years ago from Weston Square LLC, led by Rick Ashley.

We’ve heard new rumblings that a sale may be in motion at the money-troubled Main Street Lofts.

This latest version involves all three buildings at the downtown Little Rock project.

Price tag? Unknown.

One insider estimates it would take about $5.5 million to make everyone whole.

Past sales talk centered on the M.M. Cohn Building, the least completed of the trio.

The Jacob Chi investment group had shown interest in adding the property to its redevelopment of the neighboring Boyle Building, but terms were never reached.

We understand that Chi isn’t part of the current transaction talk.

Will an 11th-hour sale close and make everything all right at Main Street Lofts?

New ownership and new money would do more than push it to completion.

Such a change is expected to lead to a restart of Chi’s conversion of the 12-story Boyle Building into an Aloft Hotel. The project went dark after workers gutted the interior to prepare for the office-to-hotel makeover.

That inactivity is tied to the work stoppage on the Main Street Lofts project when Scott Reed and his partners apparently ran out of money and Little Rock’s AMR Construction walked off the job.

Opening a hotel adjoining the M.M. Cohn Building in its current state of disarray wasn’t part of the plan.

No Mistake

AMR’s $974,784 foreclosure effort on Main Street Lofts has passed one checkpoint toward a judgment.

An arbitrator ruled there was no mistake in a March 31 ruling against the Scott Reed-led developers: Main Street Lofts LLC and Main Street Lofts South LLC.

AMR is entitled to collect $896,756 for unpaid work on the unfinished three-building, 125,000-SF redevelopment at 510-524 Main St.

The collection effort includes more than $78,000 in legal expenses and other costs associated with the arbitration case.

John Watson, arbitrator in the case, ruled there were no “clerical, typographical, technical or computational errors” as alleged in an April 20 request by the developers to modify the financial award.

Watson agreed with AMR that the request was an effort to redetermine the merits of claims already decided.

This clears the way for a court ruling to convert the arbitration award to a judgment, allowing AMR to pursue collection through foreclosure and other avenues.

With the binding arbitration case now closed, the developers have shifted their focus elsewhere.

Court Filings

Main Street Lofts et al have returned to questioning technical issues of AMR filing its lien claim 13 months ago against the property.

That dispute hit Pulaski County Circuit Court in December but was put on hold pending the outcome of the arbitration case.

Thrown into the current mix are arguments about where the contractor fits in the pecking order of secured creditors.

Two lenders have a dog in the financial hunt but haven’t formally entered the fray: Riverside Bank of Sparkman (Dallas County) and the Pulaski County Brownfields Revolving Loan Fund Committee.

To date, the bank and the committee have remained on the sideline watching the dispute unfold.

The pecking order debate is playing out in two arenas: one, the 21,000-SF Arkansas Annex at 514 Main St. and 41,816-SF Arkansas Building at 524 Main St. and two, the 62,688-SF M.M. Cohn Building at 510 Main St.

Turns out AMR Contractors did sign a lien waiver that subordinated its security interest in the Arkansas Building and Annex, home to 34 unfinished upstairs apartments.

Back in April, Manly Roberts, president of AMR Construction, said there were no lien waivers on the project in his file.

However, the developers found a copy of one and filed it late last month as part of the court record.

The document means AMR’s potential first-in-line security interest on two of the buildings falls to No. 3 behind Riverside Bank and Brownfields.

The running order might be different for the M.M. Cohn Building, where no lien waiver is in play.

Our quartet of multimillion-dollar transactions this week?

A bowling center in North Little Rock, an apartment project in downtown Little Rock, commercial land in west Little Rock and a former antiques store-floral shop-bank branch property in the Heights area of Little Rock.

♦ Millennium Bowl Inc., led by James Moore, sold its namesake project at 7200 Counts Massie Road for $2.3 million.

Buyer: Millennium Bowl of Little Rock LLC, led by Anil Nayar, Aziz Pabani, Akbar Pabani and Kairunnisa Khan.

♦ SN Management LLC, led by Naoman Qureshi, acquired the 32-unit Legacy Apartments project at 310-312 Louisiana St.

Seller? Legacy Apartments Management LLC, led by Jason Bolden.

♦ Westrock Partnership, led by Robert Vogel, sold a 6.2-acre site near the northwest corner of Shackleford Road and West Shackleford Boulevard for more than $1.5 million.

Buyer? Lexus Land LLC, led by David Parker.

♦ 5701 Kavanaugh LLC, led by Barnett Briggs Jr. and Brock Martin, purchased its namesake property from Heartland Bank of Little Rock for more than $1.3 million. The deal includes the adjoining 1916 N. Fillmore St. building.

This week’s Arkansas Business is dedicated to our 23rd class of 40 Under 40 honorees, those young leaders of business, government and nonprofits that our internal selection team believes readers need to know.

First, I need to point out that there are actually 42 in this year’s class because the honorees include a married couple (Austin and Ashton Samuelson) and twin brothers (Carl and Charles George). This isn’t unprecedented. In fact, there were 42 in the very first 40 Under 40 class because two married couples were among the honorees, and twin brothers pushed the class of 2012 to 41.

I was under 40 (barely) when I first edited this feature back in 2000, and I didn’t think of myself as particularly young. Sixteen years later, I can’t believe I was ever that young, and I’m more impressed than ever at the accomplishments of the men and women who make up this year’s class.

Some of them are already so well-known that it’s hard to believe they haven’t made the list sooner — I’m thinking particularly of Jeremy Gillam, who was recently elected to a second term as Speaker of the Arkansas House of Representatives, and Leslie Rutledge, the Arkansas attorney general. (She turned 40 a couple of weeks ago, but she was still eligible on the June 1 cutoff.) Another is Jamie Gates, EVP of the Conway Area Chamber of Commerce/Conway Development Corp. — how had we missed him?

Other names were completely new to me, like the Samuelsons, whose Conway restaurant I had eaten at a number of times without realizing that it was the brainchild of 20-somethings. (Austin has turned 30.)

As is typical, a big chunk of this year’s honorees are from the population centers of central and northwest Arkansas. But from the very first of the alphabetical entries, Jonathan Baird of Magnolia, you’ll get to take a tour of our state. Wherever there is young talent — De Queen, Sheridan, Mountain View — we want to know about it so we can call it to the attention of Arkansas Business readers.

We also look for leadership in a variety of industries. Government, certainly, but also banking and manufacturing and agriculture and even fitness. Young entrepreneurs like Fran Free just blow my mind.

This year’s class was selected from more than 300 nominations, and that many to choose from helps assure overall quality of the class, just like a bigger school tends to have a better football team. But there is a common drawback: The starters tend to be upperclassmen. Thirteen of the 42 were either 38 or 39 when they were chosen, and only two are in their 20s.

This problem is the very reason Arkansas Business introduced a 20 in Their 20s feature seven years ago. We’ll be featuring those New Influentials in the Sept. 12 issue, so don’t forget to submit your nominations by July 1 at ArkansasBusiness.com/20. (Don’t worry: Nominees for 40 Under 40 who are still in their 20s will also be considered.)

A luncheon recognizing this year’s honorees will be held at the Embassy Suites in west Little Rock on Wednesday, June 22. The luncheon is open to those of us who never made the cut. For more details, go to ArkansasBusiness.com/40Lunch.

Gwen Moritz
Editor

A 21,840-SF building in downtown Little Rock weighed in at $2.27 million.

610 President Clinton Avenue LLC, led by Mark Dake, bought its namesake property and former home of the Clinton Museum Store from the Bill, Hillary & Chelsea Clinton Foundation.

The deal is backed with a five-year loan of $2.25 million from Missouri’s Springfield First Community Bank.

The foundation acquired the 0.16-acre development for $1.36 million in January 2004 from Southern Office Services Inc., led by Gregory Hart.

Mini-Acquisitions

Two mini-storage projects in North Little Rock produced a pair of $1.85 million transactions.

AR Storage Centers IV LLC, led by Stuart Finley, Ryan Holder and Bud Finley, purchased the 314-unit Remount Storage at 6140 Remount Road and the 338-unit North Little Rock Storage Center at 103 E. Spriggs Road.

The sellers were KMA Realty LLC and KMA Realty II LLC, both led by Phillip and Tina Davis and Terry and Gina Hartwick.

The deal is financed with a seven-year loan of $3 million from Little Rock’s Bank of the Ozarks.

The 2.52-acre NLR Storage development previously was tied to an April 2014 mortgage of $1.25 million held by Eagle Bank & Trust of Little Rock.

The location was acquired for $68,000 in April 2013 from Gail Herrin, Carl Williams Jr. and Debi Davis.

The 3.77-acre Remount development previously was linked with an April 2014 mortgage of $542,000 held by Eagle Bank.

The location was bought for $90,000 in September 1998 from Lilac LLC, led by Andy Collins.

Temple Transaction

The Scimitar Shrine Temple in southwest Little Rock changed hands in a $1.1 million sale.

Gujarati Samaj of Arkansas Inc., led by Girish Patel, acquired the 48,000-SF complex at 1 Scimitar Circle from the Scimitar Temple Board of Trustees.

The deal is funded with a five-year loan of $400,000 from One Bank & Trust of Little Rock.

The 8.47-acre property was assembled in three transactions with Orbit Valve Profit Sharing Plans A&B: $135,000 in June 1983, $27,000 in January 1988 and $6,000 in January 1991.

Townhomes Buy

Five three-unit townhomes in west Little Rock are under new ownership after a $780,000 transaction.

J. Hoffman Properties LLC, led by James Hoffman, David Rapp and Brian Teeter, bought the 1805, 1807, 1811, 1819 and 1821 Reservoir Road buildings from Fran and Woodrow Curtis.

The deal is backed with a one-year loan of $850,000 from Tricore Capital LLC of Little Rock.

Hoffman resold two of the properties in deals with Jason Hunt and Anna Tang ($190,000 for 1819 Reservoir) and Stacey Atsaides ($204,000 for 1811 Reservoir).

The Hunt and Tang purchase is financed with a 20-year loan of $142,125 from BancorpSouth Bank of Tupelo, Mississippi.

The Atsaides acquisition is funded with a 30-year loan of $142,433 from Guaranteed Rate Inc. of Chicago.

The Curtis family bought two buildings for $300,000 in September 2010 from Rock Solid Real Estate LLC, led by Shannon Scroggins and Walter O’Neil II.

The other three were acquired in deals with DSI Investments Inc., led by Dennis Clay, $150,000 in January 2014; Sharon Masters, $215,000 in February 2006; and Edward Morgan, $199,000 in March 2006.

Fence Purchase

A 6,568-SF office-warehouse in southwest Little Rock drew a $450,000 sale.

Little Rock Fence Co., led by Glenn Jacks, purchased the 11125 Interstate 30 project. The seller is A&L Energy Inc., led by Barry Busada.

The deal is backed with a five-year loan of $382,500 from Simmons Bank of Pine Bluff.

A&L bought the 2.41-acre development in December 2009 as part of a $500,000 deal with Master-Halco Inc. of Dallas.

Canal Pointe Abode

A 4,957-SF home in Little Rock’s Canal Pointe neighborhood rang up a $950,000 deal.

The Caroline Morgan Ford Trust acquired the house from James and Linda Landers and their namesake revocable trusts.

The Landers family purchased the property for $615,000 in May 2004 from Emmitt and Kaye Henderson.

Estates Sale

A 5,200-SF home in west Little Rock’s Bella Rosa Estates neighborhood sold for $730,100.

Lawrence Davis III and his wife, Rosaland, bought the house from Woodhaven Homes Inc., led by Jack Wilson.

The deal is financed with a 30-year loan of $605,983 from Wells Fargo Bank of Sioux Falls, South Dakota.

The residence previously was tied to a November 2014 mortgage of $560,000 held by Bank of the Ozarks and a lien claim of $74,463 held by Lumber One Home Center Inc. of Mayflower.

Woodhaven acquired the site for $170,000 more than 19 months ago from The Jennifer S. McCarty Revocable Trust.

Bi-County Buy

A 65.76-acre spread on the Pulaski-Perry county line changed hands in a $700,000 deal.

S&L Futures Inc., led by Keith Lundquist, purchased the property, which includes a 1,420-SF house off Highway 113 and an adjoining 13.6 acres in Perry County.

The seller, Ronnie Mullins, provided a one-year loan of $165,000 to fund the deal.

The property largely was assembled in deals with George and Betty Munsey, $42,000 in October 1970; and Judson Kidd and William Wilson Jr., $22,000 in November 1992.

Foxcroft House

A 4,858-SF home in Little Rock’s Foxcroft neighborhood is under new ownership after a $575,000 sale.

Matthew and Melissa Claypool acquired the house from Daniel Waymack.

The deal is backed with a 30-year loan of $417,000 and a five-year loan of $43,000 from Simmons Bank. The residence previously was linked with a March 2015 mortgage of $400,000 held by Jerry and Linda Waymack.

The property was purchased for $250,000 in December 2014 from Betty Ann Rawn.

Miramar Home I

A 3,862-SF home in the Miramar Place neighborhood of west Little Rock’s Chenal Valley development drew a $560,000 transaction.

Jonathan and Lisa Goldberg bought the house from The Wilson Co., led by Janet Dillon.

The deal is financed with a 25-year loan of $498,400 from Regions Bank of Birmingham, Alabama.

The location was acquired for $84,000 in December 2014 from Deltic Timber Corp. of El Dorado.

Miramar Home II

A 3,718-SF home in the Miramar Place neighborhood of west Little Rock’s Chenal Valley development rang up a $506,000 sale.

Daniel and Jennifer Allen purchased the house from Stevens Commercial Contractors Inc., led by Jackie Stevens.

The deal is funded with a 30-year loan of $417,000 from Arvest Bank of Fayetteville. The residence previously was tied to a July 2015 mortgage of $448,242 held by First Security Bank of Searcy.

The site was bought for $89,000 in December 2014 from Deltic Timber Corp.

Seven-Digit Construction

New Warehouse    $4,343,310
LM Wind Power
8000 Frazier Pike, Little Rock
W.G. Yates & Sons Construction Co., Philadelphia, Mississippi

Mini-Storage Renovation    $2,500,000
6501 Geyer Springs Road
River City General Contractor Inc., Little Rock

Todd Connelly, branch manager of the El Dorado office of Wells Fargo Advisors LLC, has been promoted to managing director of investments. Connelly has 30 years of experience in the financial service industry.

Joe Ramsey has joined JTS Financial in Little Rock as in-house counsel and human resource support. Ramsey worked as a private practice attorney for seven years and has experience in labor and employment law.

Gwen Massingill, senior vice president of marketing and community relations for Petit Jean State Bank of Morrilton, has been awarded the 2016 Steve Willbanks Award for outstanding service to youth by the Community Service Youth Foundation. Massingill has worked with the organization for more than three decades, playing an instrumental role in its fundraising efforts.

NAI Global, the largest global network of owner-operated commercial real estate brokerage firms, recently announced the addition of its new member firm, NAI Rogers. The firm, led by Randy Crossno, CCIM, principal broker, founder and managing member, is located in Rogers with territory encompassing Benton, Washington and Sebastian counties. The company has been a part of northwest Arkansas since 2009, offering retail property management, acquisitions and disposition expertise for all commercial product types, private investors, financial institutions and real estate investment trusts.

See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

SPRINGFIELD - An Arkansas man who led a bank fraud conspiracy has been sentenced to 11 years and two months in federal prison without parole.

Phillip Daren Shockey, of Crawford, Arkansas, was sentenced Tuesday for leading a scheme that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Missouri, and elsewhere. Shockey was ordered to pay $159,842, including $114,127 to 14 banks and credit unions in Missouri.

Shockey admitted he led the conspiracy between July 2013 and February 2014. At least 12 co-conspirators were involved and they wrote at least 51 fraudulent checks.

Co-defendant James Erin Guerin, of Tulsa, Oklahoma, pleaded guilty to being an accessory after the fact to aggravated identity theft and awaits sentencing. Four others have pleaded guilty and been sentenced.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

According to a May survey of business contacts, 69 percent expect economic conditions in 2016 will be about the same as last year, an improvement from three months earlier, when a little less than half expected conditions to worsen.

This information comes from the latest Little Rock Burgundy Book, a quarterly review of economic information published on June 21 by the Federal Reserve Bank of St. Louis. The Little Rock Zone includes the majority of Arkansas, except the northeast part of the state. The population in the zone is about 2.5 million, including 710,000 who live in the Little Rock metropolitan statistical area.

Labor market conditions remained vibrant in most areas, with a low unemployment rate of 4.1 percent for the zone in the first quarter and anecdotal evidence suggesting mounting upward pressure on nominal wage growth.

A Little Rock area contact said in the report, “Salaries have increased in parallel with cost of living. However, drivers and technical employees are often paid more due to challenges with recruitment and retention of these skilled employees.”

The Fayetteville MSA’s unemployment rate was 2.9 percent in the first quarter, its lowest rate in 15 years.

“Employment increases were driven by growth in retail, professional services and health and education sectors,” a northwest Arkansas area contact said in the report.

Measured from a year earlier, payroll employment growth in the Fayetteville and Texarkana MSAs was stronger than the nation’s growth.

Housing activity was also mostly good throughout the zone in the first quarter.

“Multi-family developers continue to look for new sites to build apartment complexes in the Little Rock area,” a Little Rock real estate contact said in the report.

Single-family building permits increased in four of the six MSAs, while house prices were up in five of the six MSAs.

But, “speculative homebuilding is still very low,”another Little Rock real estate contact said in the report.

In the Little Rock MSA, office rents rose, at their fastest rate in five years. “The office market continues to tighten,” said a third Little Rock real estate contact.

Growth of household credit card balances accelerated modestly in the first quarter compared with the previous quarter, while credit card and automotive loan delinquency rates were higher.

A Conway area auto dealer said in the report, “Good weather, lower interest rates, longer terms and lower fuel prices have positively impacted my business.”

Arkansas bankers reported that loan demand in the third quarter of 2016 is expected to be the same as it was in 2015.

But the return on average assets at the state’s commercial banks rose to its highest level since 1998.

In the agriculture industry, Arkansas farmers nearly doubled their planted corn and cotton acreage this year compared to last year, while significantly reducing their planted acreage of soybeans and sorghum.

Walk down the street in virtually any neighborhood in Arkansas. In nearly two out of every three houses you see, it would be hard for the families who live there to come up with $1,000 to cover an unexpected emergency without going into debt. One out of two of those families has less than $10,000 saved for retirement. And in the wallets of those Arkansans, 24 percent of their take-home pay is eaten up by non-mortgage debt payments for credit cards, car payments and student loans.

For the third consecutive year, the financial website “WalletHub” has given Arkansas the dubious distinction of being the third dumbest state in the nation when it comes to financial knowledge. The website uses a number of benchmarks in the study, but it makes it clear that only Nevada and Alaska are less financially savvy than residents of The Natural State.  

WalletHub says the problems created by a lack of financial wellness showed up strongly during the recession of 2008 and the site opines that we haven’t done much to correct those problems since.

Information on the website says the national figures tell the story: “Since the beginning of 2012, we’ve collectively racked up roughly $153 billion in new credit card debt, unsurprising given that only 2 in 5 adults actually have a budget. Ultimately, there’s really no shortage of statistics that one can quote to illustrate our money management shortcomings — from the 20 percent of Americans who spend more than they make to the 54 percent of folks who don’t have a rainy day fund.”

It would be easy to dismiss all this as just another statistically saturated story telling us what we already know; but, real lives are affected by the problems at the root of the story and those problems are pervasive in almost every corner of Arkansas. Poor financial habits force families into bankruptcy and out of their homes. A lack of financial skills impact the state’s economy and jobs, dooming many workers to spend their retirement years with little more than Social Security to provide monthly income.

We spend a significant amount of our state’s wealth educating our young people, ostensibly to be able to earn a paycheck. But there seems to be scant effort put forth to teach those earning a paycheck how to properly use it to become financially secure.

It’s time for a change.

GenWealth Financial Advisors has announced a strategic partnership with Ramsey Solutions to offer a comprehensive education and planning program designed to improve financial wellness. GenWealth advisors will work with clients to implement the five basic principles taught in Dave Ramsey’s SmartDollar education program. “With so many Americans living paycheck to paycheck, it’s no wonder that employees are not on track for retirement,” said Brian Hamilton, vice president of Financial Wellness for Ramsey Solutions. “SmartDollar is designed to get to the root of the problem and helps families have a step-by-step plan to get on a budget, build their emergency savings and get out of debt so they free up their largest wealth-building tool: their income.”

SmartDollar is an innovative program delivered online to participants, on their schedule, around the clock to any computer or mobile device. The program also includes a personal website where participants can track their progress toward their goals. Participants will also have access to online budgeting software that can integrate with their bank accounts, allowing for easy tracking of expenses.

“We believe it’s time for a financial revolution across the state of Arkansas and it all begins by taking a stand and declaring 'No more dumb money!' ” Shrewsbury said.

A 1,145-acre farm in southeast Pulaski County tipped the scales at $4.52 million.

Resicomm Properties LLC, led by Bryan and Sonja Glaze, bought the land, a mile southeast of Sweet Home along Fourche Creek and Harper Road.

The seller is Kingridge Enterprises Inc., led by Mark Jackson.

The deal is financed with a one-year loan of $4.52 million from Centennial Bank of Conway. The mortgage is secured additionally by other property in Pulaski and Phillips counties.

The property previously was tied to a November 2014 mortgage of $3.5 million held by AgHeritage Farm Credit Services of Little Rock.

Kingridge acquired the land for $2.5 million in May 2011 from U.S. Investment Realty Co., led by Jimmy Winemiller.

Dental Acquisition

A 4,000-SF dental project in North Little Rock weighed in at $2.02 million.

JPN Properties LLC, led by Bill Mitchell, purchased Arkansas Dentistry & Braces at 2901 Warden Road. The seller is Haag-Brown Development LLC of Greg Haag and Josh Brown.

The deal is backed with a 10-year loan of $1.4 million from Simmons Bank of Pine Bluff. The 0.85-acre development previously was linked with a June 2015 construction mortgage of $1.5 million from First Community Bank of Batesville.

Haag-Brown Development bought the Aamco Transmission location for $650,000 a year ago from the Bass Family Irrevocable Trust, led by Lynda Bass Gaiser and James Bass Jr.

Pipe Purchase

A 43,900-SF industrial complex in east Little Rock changed hands in a $1.74 million deal.

Pipe Portfolio Owner (Multi) Ltd. of New York acquired the Hanson Pipe & Precast facility at 1300 Bond St. from Forterra Pipe & Precast LLC of Irving, Texas.

The 11.79-acre property was purchased for $25,000 in November 1953 from Little Rock Lumber & Manufacturing Co.

NLR Property

A mixed-use project in North Little Rock rang up an $800,000 transaction.

Green & Chapman LLC, led by John Harris, bought the 9,300-SF complex at 8301 Faulkner Lake Road. The seller is Jimcy Inc., led by Steven Green.

The 4.58-acre development, which includes a 2,800-SF house, is now securing a five-year loan of $3 million and a one-year loan of $750,000 from First Security Bank of Searcy.

The property was acquired for $36,000 in September 1973 from Roger and Bobbie O’Quinn.

Branch Buy

A bank branch in midtown Little Rock sold for $575,000.

Walid Ismael and Hosam Esmail purchased the 4908 W. Markham St. project from IberiaBank of Lafayette, Louisiana.

The 0.85-acre location was bought for $225,000 in December 2000 from Carolyn Hamra.

Downtown Deal

A commercial project in downtown Little Rock drew a $235,000 transaction.

Canana Investments, led by Sam Carrasquillo, acquired the 4,600-SF building at 915 E. Ninth St. from Amanda Mattax.

The deal is funded with a five-year loan of $297,000 from Arvest Bank of Fayetteville.

The 0.48-acre development previously was tied to a November 2011 mortgage of $206,250 held by Little Rock’s Bank of the Ozarks.

Mattax purchased the property for $158,000 more than four years ago from T&N Properties LLC, led by Thomas Mattax Jr. and Nancy and Dave Gunn.

Scenic Home

A 6,823-SF home in the Scenic Heights neighborhood of Little Rock tipped the scales at $2.5 million.

Scenic LLC, led by John Stephens, bought the house from Demp and Paula Dempsey.

The residence previously was linked with April 2003 mortgages of $800,000 held by Wells Fargo Bank of Sioux Falls, South Dakota, and $200,000 held by Arvest Bank.

The Dempseys acquired the property for $726,000 in June 2001 from Peterson Family Enterprises Inc., led by Peter Peterson.

Riverbend Residence

A 3,000-SF home in Little Rock’s Riverbend neighborhood is under new ownership after a $545,000 sale.

Jane Gillespie purchased the house from the Jo Claire Adamson Pulliam Revocable Trust.

The location was bought for $177,000 in January 1994 from Virginia Bailey.

Candlewood House

A 3,400-SF home in west Little Rock’s Candlewood neighborhood changed hands in a $535,000 deal.

Derek and Gayleen King acquired the house from Richard and Jennifer Freeman.

The deal is financed with a 30-year loan of $417,000 from Bank of England and a 20-year loan of $64,500 from Centennial Bank.

The Freemans purchased the property for $525,000 in September 2010 from Hoyte Pyle Jr. and his wife, Dianna.

Woodland’s Abode

A 3,644-SF home in the Woodland’s Edge neighborhood of west Little Rock rang up a $518,000 sale.

Sylvester and Chandra Black bought the house from The Dillon Group Inc., led by Janet Dillon.

The deal is backed with a 30-year loan of $492,750 from Mortgage Research Center LLC of Columbia, Missouri.

The residence previously was linked with a July 2015 mortgage of $412,000 held by First Security Bank.

The site was acquired for $80,000 in June 2015 from Rocket Properties LLC, led by Lisenne Rockefeller and Ron Tyne.

Dixon Financing

Three commercial properties in North Little Rock were used to secure a $3.4 million funding agreement.

Dixon Properties LLC, led by Keith Dixon, obtained the five-year loan from First Service Bank of Greenbrier. The properties were:

♦ The 8,829-SF North Hills Family Medical Center at 4509 E. McCain Blvd. The 0.82-acre development was purchased for $910,000 in January 2001 from RWK Investments, led by Dr. Thomas Rooney and Dr. Michael Weber.

♦ The 5,835-SF Davita Dialysis project at 4505 E. McCain Blvd. The 0.66-acre location was acquired for $175,000 in September 1996 from Dwayne and Nancy Ruggles.

♦ The 22,000-SF office suite project at 4020 Richards Road. The 1.9-acre site was bought for $341,000 in August 1998 from the Retha Jeanette Roberts Revocable Trust.

The properties previously were tied to a January 2012 mortgage of $3.8 million and a September 2013 mortgage of $65,000 held by Arvest Bank.

Multifamily Mortgage

The owner of a 30-unit apartment complex in west Little Rock picked up a $2.46 million financial package.

Tisdale Properties & Development LLC, led by Tracy and Terre Tisdale, received the five-year loan from Bank of the Ozarks.

The 0.81-acre development at 10000 W. Markham St. previously was linked with a December 2012 mortgage of $950,000 held by the bank.

The project was acquired for $1.1 million in February 2005 from Jack Dowdy.

Seven-Digit Construction

Staybridge Inn & Suites    $9,125,000
1100 S. University Ave., Little Rock
Huffman Contractors Inc., Little Rock

Expansion & Remodel    $1,800,000
Roosevelt Thompson Library
38 Rahling Circle, Little Rock
Alessi-Keyes Construction Co., North Little Rock

Crystal Hill Plaza II    $1,060,290
13300 Crystal Hill Road, North Little Rock
Hart Construction LLC, Searcy

Economic challenges faced by Americans vary greatly by income, according to a Federal Reserve report released last month.

Those with family income under $40,000 per year more frequently reported facing short-term financial challenges, such as rent, food, gas, utilities and other bills. Those with family income greater than $100,000 per year reported more challenges relating to retirement or education.

Americans in all income groups expressed concerns relating to employment, while health care worries are most common among lower- and middle-income people.

The findings were contained in the Fed’s “Report on the Economic Well-Being of U.S. Households in 2015,” which, using a survey conducted in October and November 2015, examines the overall economic well-being of Americans.

The survey asked an open-ended question about financial challenges faced by the respondents, who were asked either to check a box indicating that they faced no financial challenges or to describe in “a couple of words (150 character max)” to describe the main financial challenges or concerns facing them or their families.

Forty-nine percent of respondents checked the box, while most of the remaining 51 percent of respondents provided some response to the open-ended question.

Lee Welfel was recently promoted to president of Eagle Bank Mortgage of Little Rock. Welfel joined the company in 2014 as executive vice president and sales manager with nine years of experience in the mortgage industry.

In addition, Stephen Griffin has joined the bank as vice president and mortgage originator. Griffin has 12 years of experience working as a mortgage originator in central Arkansas.

See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

Remember the $585,549 collection suit filed by Bear State Bank against Little Rock businessman Walter Quinn and his Falcon Air LLC?

Bear State obtained a default judgment against Quinn and Falcon Air when the two failed to respond to the February complaint. The debt is secured by Quinn’s personal guarantee and a 1984 Dassault Falcon 200 owned by Falcon Air.

The case is tied to a loan that originally totaled $1.6 million and dates back to March 2008, when it was made by Heritage Bank of Jonesboro.

Bear State inherited the loan in 2014 when it acquired Heritage as part of the $122.4 million purchase of First National Security Co. of Hot Springs.

A Texas investment management group has made another large purchase of commercial land in Rogers.

EF Capital AR LLC of The Woodlands, Texas, paid $6.7 million for some 40 acres just east of Interstate 49 in a deal that closed June 21. EF Capital bought the land from Pine Bluff’s Simmons Bank, which inherited the land when it bought the assets of Metropolitan National Bank of Little Rock.

Philip Schmidt of Flake & Kelley Commercial, who represented EF Capital, declined to name for whom EF Capital bought the property, but Whispers has determined it is Margaret Molleston, a University of Arkansas Law School graduate who is the executive vice president of GeoSouthern Energy Corp. of The Woodlands.

In March 2015, EF Capital bought about 85 acres for Molleston from Oliver Haynes LLC, led by Bob and Cynthia Oliver, for $8.3 million.

That land, divided into two tracts, is adjacent to the new purchase. One tract is just north of the Home Depot on South 46th Street, and the other is just east on Promenade Boulevard.

The 40 acres just purchased are between Walnut Street and New Hope Road. Schmidt said EF Capital paid cash for the property — as was done a year earlier — but has no immediate development plans.

“It’s a long-term hold,” Schmidt said. “We’ve seen a lot of appreciation in the area because we’re running out of dirt. When you are able to pay in cash and hold it, it’s a genius plan.”