Used Car Dealerships In Decatur Al – Harold Jeffreys, former president of the Decatur bank, has filed lawsuits claiming that Greg Steenson, his colleague in a Decatur used car dealer, tricked him out of $ 3.2 million. The lawsuit, filed December 31 at the Morgan County District Court, said Jeffreys had lent Steenson $ 3.2 million since 2013 to buy wholesale cars for resale, but had not yet been repaid.
“We believe that Mr. Steenson misused the money and other money from the company and Mr. Jeffreys,” Andrew Campbell, a Birmingham lawyer who represented Jeffreys, said Thursday afternoon. The suit also mentions Jason Steenson, who was Greg Steenson’s brother, and Bill Steenson, who was Greg Steenson’s father, as a defendant.
Used Car Dealerships In Decatur Al
Jeffreys, former president of Heritage Bank in Decatur, owns 60 percent of Priceville Partners LLC, and Greg Steenson has 40 percent, the lawsuit said.
The lawsuit claimed Jeffreys loaned Greg Steenson $ 250,000 to start the company in 2013 to buy and resell used cars.
Steenson later expanded the company to buy wholesale cars for sale to dealers and the following year added a title loan business to operations.
Along with many used cars on 2903 Point Mallard Parkway S.E., the company has locations in Hartselle, Moulton, Hoover and Chelsea.
Jeffreys continues to lend Greg Steenson money to businesses totaling $ 3.2 million, and has never been repaid or received dividends or payments from businesses, the lawsuit states.
“This is a mystery wrapped in puzzles,” Campbell said. “We want to know what Mr. Steenson did with the money.”
The lawsuit claimed Jeffreys was concerned about the company’s financial situation in November when he saw financial reports showing the company owed $ 3.4 million from car buyers, the lawsuit said. The claim calls the financial statements “complete fabrication.”
The report said Capital City Ford in Indianapolis owed $ 6 million to the company and Woody Anderson, Huntsville Ford dealer, owed $ 900,000 to the company. It also shows the title loan business has around $ 8 million in receivables, the lawsuit said.
Capital City Ford and Anderson told Jeffreys that they had never done business with Priceville Partners and had never met Greg Steenson, according to the lawsuit.
“The discovery by Jeffreys confirmed that Priceville Partners was a fraud, perpetuated by Greg (Steenson), in an attempt to cheat Jeffreys of millions of dollars,” the lawsuit claims.
Steenson’s lawyer, Jimmy Adams, could not be reached for comment on Thursday.
Adams said in a court filing that Greg Steenson denied Jeffrey’s accusations that he had not misrepresented the company’s financial condition, and he paid Jeffreys’s loan at 17 percent interest.
“I strongly deny that I have misused one of the business funds for my personal use, or for the use of someone else in this matter,” Greg Steenson said in a written statement filed with the court
The lawsuit noted that Greg Steenson was jailed after pleading guilty in 2002 to charges of fraudulent bank conspiracies related to the scheme of checking kiting and presenting fake financial statements to banks for loans.
Court records show Greg Steenson was sentenced to four years and three months in federal prison on the charge and ordered to pay compensation of $ 723,293.64 to Union Planters Bank and $ 4.5 million to the Bank.
Jeffreys’s lawsuit, which was assigned to Morgan County District Judge Jennifer Howell, accused Greg Steenson of fraud and fraud and demanded compensation and compensation to be decided by the jury, along with interest, attorneys’ fees and court fees.
Howell issued a January 7 order prohibiting defendants from transferring or disposing of company property or assets.
Both parties agreed on January 11 to appoint Ralph Summerford, a certified public accountant, as the recipient to run Priceville Partners for 30 days. No company assets will be transferred without Summerford’s approval, and he must make full accounting of all company assets and liabilities, and audit previous transactions and expenses.
But four days later, lawyer Greg Steenson submitted a motion to remove Summerford as a recipient because he said it was clear that Summerford was biased and an advocate for Jeffreys. The motion also said it was clear that Summerford intended to liquidate all of the company’s assets, which would endanger the company and Greg Steenson.
The March 9 trial is set to stop Summerford from liquidating the company’s assets.
The hearing was set for Wednesday morning at a motion filed Monday by lawyer Jeffreys who asked the court to allow Summerford to liquidate all of the company’s assets.
Mosi requested that money from the sale of assets be placed in an escrow account by Summerford to repay the company’s creditors.
“What we are trying to do is save the best remaining assets that we can now,” Campbell said.