Tag: Georgia Bankers Association

Columbia County B.Y.O.B. Finances

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OPINION by The Arrowflinger

What you are about to hear in this poor quality audio recording is the last three minutes of The Austin Rhodes Show of Friday, May 18, 2018. Your arrowflinging protector shook things up, more than a little, one might think.

When GB&T Bank Board members Rick Allen and James G. Blanchard were mentioned in the present tense, it was in the context of a meeting with law enforcement several years ago, before the bank merged with South State Bank and that Board of Directors was disbanded. Also, neither was a voting member of the Board with management oversight.

As to former Columbia County Commissioner Scott Dean, who was the acting chairman of the county finance committee, he actually did not object AT THE AWARD MEETING, but just listen to what he said in making the astounding motion to let Ron Cross and Charlie Allen vote!

Dean’s conviction was on charges unrelated to this banking vote. Judge Blanchard being the judge who put him in prison and would not grant a retrial, despite recanted testimony, is more a demonstration of how weird events get twisted in Columbia County. The Arrowflinger tried to get Judge Blanchard, a former family business partner, to discuss this ugly banking matter back in 2014, but somehow we had trouble connecting. There is more there, perhaps, for a later date.

With respect to Edward J. Tarver, he was a member of the GB&T Audit Committee in 2008 and 2009, before becoming the US Attorney on December 17, 2009. Tarver had audit responsibility for the 2008 Financial Statements, which later became the basis for the Columbia County bank selection in April 2010. About a month before his nomination, The United States Securities and Exchange Commission sent the GB&T Chief Financial Officer Darrell Raines a letter expressing questions, possibly requiring a restatement of those 2008 financials.

Imagine that! A sitting US Attorney’s immediately preceding bank Audit Committee work was questioned by the SEC! None of this seems to have dawned on Columbia County Finance. Or did they know? Or did one of them know?

As for Rick Allen, perhaps he can confer with his cousins, who owned 40% of GB&T, and his brother, the GB&T shareholder who delivered the bank a timely $100 million cash infusion, and draft a banking bill like he wrote about in the Augusta Chronicle last year. We have the perfect title. We can call it the Rick Allen B.Y.O.B bill…..BAIL OUT YOUR OWN BANK bill.

-AF

The Boardroom Trail to the Talisman

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OPINION BY The Arrowflinger

Talisman – an object held to act as a charm to avert evil and bring good fortune.

The revelation to the American public that its establishment media is biased, lazy, and protective of their turf surely by now must extend to the Augusta contingent of “recognized” media. After all, activists brandishing Georgia Open Records Requests and publishing their own stories reinforced by documents offering obvious proof got too big to ignore between 2011 and 2013.

By 2014, you might think their “professional” inquisitiveness would have taken hold, but the Metro Spirit took resolute opposition to perceived competition to extremes. When the reformers started investigating the Reynolds Street Parking Deck boondoggle, the Metro Spirit cover was one of black helicopters over the deck. Somehow, they later were acknowledging the discovery of liens on the property under the parking deck as common news. There is no way they would admit that the City Stink blog systematically awoke Augusta to such a ridiculous circumstance without THEM! The exception was Metro Spirit writer and radio talk show host Austin Rhodes, who occasionally would provide some coverage to the alternative media, most recently with the absurd Tractorgate Scandal that saw Augusta men and equipment secreted three counties away for work on private property of an ex-Augusta contractor.

The Columbia County Commission meeting of May 6, 2014 was covered by Spirit reporter Eric Johnson, who promptly disregarded the directly presented challenge to then Finance Committee Chairman Ron Thigpen’s bonus with Georgia Bank and Trust. That bank was awarded a highly irregular mass banking deal with the county, with Thigpen recusing himself from the commission vote.

Instead, Johnson decided to interject his own bias and implied that the real subject was instead Chairman Ron Cross, then up for reelection. The acknowledgement of all of our enhanced, “time and attention on this stuff,” was very true, however. He even got handed key documents in the hope that he would pick up on the story. No way, Jose.

Collateral Metro Bank

Astounding. Georgia was number one in mortgage fraud in the USA for 5 years from 2000 to 2004, leading to a tsunami of bank failures in 2008 through 2010, losing 1/5 of the state’s banks, yet NOBODY can come to suspect any alligators in their local banking swamp. The “media” ad sales blindfold “reporters.” “Their” advertisers cannot be corrupt because they pay the media’s way.

What the Spirit’s Johnson blew off was a chance to investigate how Columbia County’s cash infusion into his bank may have boosted Thigpen’s bank bonus. Had he pursued it, he might have found the Talisman. From there, an epic of financial gamesmanship might have been his prize!

In this burgeoning saga, the Talisman is a man, recently the United States Attorney for the Southern District of Georgia, Mr. Edward J. Tarver. When the bank executive compensation contracts were changed for 2008 and 2009, before his appointment as US Attorney, Tarver sat on Georgia Bank and Trust’s Audit Committee. (Page 23)

For the bank, Tarver had to do absolutely nothing to ward off scrutiny from investigators. All he had to do was sit in his office. Mr. Tarver is a fine man by all accounts and is respected, but the simple fact is that he could be a cross between Nelson Mandela and Billy Graham and be the Talisman. Common sense says that one look at documents signed by Tarver or approved by his bank audit committee would make federal agents turn away. That is just how things are in the real world.

He wasn’t the only well-positioned protector of the bank, either. Someone in Authority, upon seeing this picture of the Bank Board in 2007, the year before the financial world came unraveled, might have whistled and exclaimed with eyes as large as saucers, “These are the most powerful people in Augusta!”

The story almost sounds straight out of Washington, DC, and the recent news bombshells over the conflicts between the FBI and Department of Justice up there.

In Columbia County’s banking controversy, the bankers are off enjoying their stock sale proceeds but the county finance department and the finance committee of the County Commission will now have to explain why they have been incompetent, or far worse.

May be no Talisman for District 1 Commissioner Doug Duncan, who is running for the Chairmanship of the Columbia County Commission with the backing of those same bankers. He had the chance to investigate three years ago, shortly after taking his seat, but dropped the ball. Former GB&T Chairman Robert Pollard, former GB&T Chief Operating Officer Ron Thigpen, and Former GB&T Voting Board Member Larry Prather are listed as Duncan supporters. Former GB&T shareholder and current Columbia County Commission Chairman Ron Cross, who voted for the suspect award of the county primary banking contract to GB&T, is said to be a Duncan contributor.

Law enforcement on three levels of government has the greater responsibility of having turned a blind eye until the Statute of Limitations expired, possibly allowing financial thieves to escape prosecution.

There are no Pulitzer Prizes that will be awarded to Augusta “journalists” from this scandal, either. The artwork was nice, though!

-AF

Blame it on the Evans UFO

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The first report in this series, Conflict in Columbia County, peered into the April 2010 vote to grant the mass banking contract of Columbia County, Georgia to GB&T, Georgia Bank and Trust, a bank in which two commissioners, Ron Cross and Charlie Allen, held stock and a third, Ron Thigpen, serves as Chief Operating Officer.

The award came after an extensive Request for Proposal was issued to about a dozen local banks in January. Responses were due by February 18th. Four county employees were designated as evaluators of the proposals: Water Director Billy Clayton, Accounting Manager Debra North, Finance Director Lee Ann DeLoach (then Reece), and Phyllis Swain. After the evaluations were compiled and the scoring totaled, First Citizens Bank scored the highest of the responding banks, with GB&T in second place. First Citizens quoted a minimum interest rate on deposits of 1%, with DeLoach noting the lack of a floor with GB&T relative to First Citizens and Swain noting that First Citizens had the best rate. The initial recommendation was to award the agreement to First Citizens.

GB&T had quoted a variable rate with a floor of 0.75%, 0.25% less than First Citizens. This put the minimum interest rate income from First Citizens 33% higher than GB&T.

That is when the UFO landed and all sorts of communications were disrupted. In this case UFO means Unidentified Financial Official. Some member or members of the County Finance Committee put the award on hold and sought direction from Jeffries, the County’s sole-sourced Bond Underwriter. When asked the identity of the Finance Committee member(s) who initiated the request from Jeffries, the county administration could not provide it, not could it provide any correspondence from Jeffries other than an Analysis showing that the county would earn more with GB&T. That analysis became the basis for what came to the commission as “Option Two” and a revised recommendation to award the mass banking arrangement to GB&T.

Out of a Finance Committee comprised of then Chairman Scott Dean, who is now in prison on an unrelated conviction, commission chairman and GB&T shareholder Ron Cross and District one commissioner and GB&T executive Ron Thigpen, who was the UFO? If the UFO landed in the commission chambers, why is there no video, no tracks and no sign of his coming and leaving, only a mystery document which turned out to be wrong, predicting higher interest rates that never materialized and costing the county dearly?

Citizens-activists working with agraynation.com also sought whether First Citizens or the other banks responding to the RFP were invited to rebid or comment on the Jeffries analysis.The county answered that there was no written contact found with First Citizens after notification that their bank was on the list of finalists.

Finally, a response to a Georgia Open Records request to Columbia County, shows that the county was paid the 0.75% minimum throughout 2011 and 2012 on nearly all of the accounts covered by the mass banking RFP, rather than the much higher rates expected when the deal was awarded to the three commissioners’ bank.

Doesn’t an old construction guy like Chairman Cross know that nothing produces more controversy and lawsuits in procurement than awarding bids based on new criteria that have been denied to the other bidders? Isn’t doing something like that and having it lose 33% more revenue than the recommended vendor even worse? How much of his net worth is in that bank stock and its related business ventures, anyhow?

A lot of answers are due Columbia County voters before May 20.

Here is a video presentation recorded in the waning days of April 2014.

Next up in the series – County Revenue Vaporized by the Evans UFO?