(This is a continuation of the coverage of the massive lawsuit filed against Peoples National Bank [PNB] by Grand Rivers Community Bank [GRCB] back in March, which coverage was abrupted in the May 2017 edition due to the news budget to cover Chad Payne in Hamilton County edging out the ongoing federal civil case in which the two banks are embroiled. Disclosure apologizes for any inconvenience the abruption caused.)
SO. ILL. – A troubled bank, loans that are likely going to have to be written off after foreclosures have failed, illegitimate children and rumors of federal agents running all over Saline County have underscored the past two months (April and May) of the world of the Bonans.
And the finger of blame seems to be pointed consistently at William Frank Bonan II (“Lil Bill”), the errant son of well-respected Hamilton County banker William Frank Bonan and nephew to Hunt Bonan.
In short, GRCB, headquartered in deep southern Illinois, was a target of Lil Bill’s idea of ‘advancement’ for PNB, his father’s bank, which was doing well with expansion and acquisition of other small banks in the area.
However, alleges GRCB, Lil Bill used the bank as his own personal slush fund, making loans to non-existent people or people with little-to-no credit…loans that each ranged in amounts from just under half a million (the limit GRCB was permitted by the FDIC to make) to well over a million and a half (which was well out of the range they were permitted to make).
Many of these loans went into default status (non-payment on them) almost as soon as they were issued, leaving GRCB holding the (very empty) bag. Coverage of these defaulted loans was given in one issue after another of Disclosure, as this publication was aware that bank investigators had firmly planted themselves at the Bonan Business Center in Harrisburg in early 2016 to check out what the heck was going on at GRCB.
In the meantime, Lil Bill was attempting to make a go of his “gentleman’s club,” the Chess Club, as well as being the sole funding mechanism for the campaign of then-Harrisburg mayor Dale Fowler, who was seeking the office of Illinois State Senate (54th District) representative, and dumping his wife Nicole in favor of Abbey Evans, a 30-something from White County whose father’s companies in oil production were struggling to stay afloat…but which were benefiting from the largesse of Lil Bill, as bank chairman, directing loans from GRCB, which many others at the bank feared would never be paid back.
Disclosure has discovered the timeline of the Bonan-Evans affair, which began around Labor Day 2015 poolside at Lil Bill’s massive Harrisburg home while Bonan was still (and remains) very much married to his wife Nichole, formerly Hargett; the two were wed in 2009.
This was also at about the same time the Chess Club was gearing up…and Disclosure was beginning to cover it.
Disclosure has evidence that those in the Evans camp began circling up the wagons in February 2016 when it became apparent that the Bonan-Evans thing was really going to be a thing after Nicole Bonan filed for divorce, which she had in mid-January of that year.
Later that year, Mrs. Bonan was stunned to see “engagement photos” that were “pending baby announcements” for the illegitimate child Abbey Evans was carrying.
The massive civil suit GRCB filed against PNB for what they are calling a civil RICO (Racketeer Influenced Corrupt Organizations) Act case in March of this year, roughly a month before the infant emerged.
In that amount of time, Lil Bill and Evans have been firing back in a lame social networking way…but the bottom line is that there is still the pending lawsuit, and GRCB had raised scathing allegations that, were they to be viewed with an eye toward criminal activity (which RICO can be), would put people behind bars for white collar crimes for a long time.
However, PNB has fired back.
In a 48-page document filed in early April, PNB answered GRCB’s allegations with firm denials or “lacks sufficient knowledge” responses to hundreds and hundreds of paragraphs in the initial complaint, which outlined in painstaking detail every move GRCB believed Lil Bill to have made with the bank that brought it to its current state…which is a “troubled bank,” a status issued by bank regulatory officials.
Despite inclusion of emails in the initial complaint that clearly show Bonan’s influence and direction on how the huge (and bad) loans were made, PNB shot back at one point that “for further answer and additional defense, pleading alternatively and hypothetically, without waiving any previous denials, the allegations contained in (GRCB’s) complaint include redundant, immaterial, impertinent, or scandalous matter, including argumentative and inflammatory statements by counsel, which are subject to being struck pursuant to Federal Rule of Civil Procedure 12(f).” (in brief, that particular rule is often used successfully to get a judge to strike certain claims against a plaintiff, making it a kind of back-handed “motion to strike” portions of a pleading. The legal strategy is that it diminishes the amount of “claims” against a defendant that a complainant has, thus reducing the effectiveness of the lawsuit overall; it can be a very reliable strategic move for some civil cases, especially with those that have potential criminal overtones.)
However, that doesn’t count out the criminal aspects of a civil case…and the investigation into it, which is what, say sources in both Saline and Williamson counties, is happening.
This is likely what lead to PNB filing a counterclaim against GRCB. By filing a counterclaim, PNB can attempt to “expose” what, in their opinion, GRCB may have been responsible for, as opposed to putting all the blame for the bad loans, troubled bank status, and other harm brought to GRCB operations.
And PNB’s opening statement in the counter claim is just such a salvo.
“Plaintiffs’ lawsuit is nothing more than a transparent and futile attempt to escape Grand Rivers’ merge with and into Peoples to (a) pursue a more favorable deal and (b) avoid liability for breaching the terms of a merger agreement by and among Plaintiffs and Defendants Market Street and Peoples,” the opening paragraph for the nature of the case states.
“For the reasons set forth…this Court should not only reject Plaintiffs’ gamesmanship, but order specific performance of the terms of the merger agreement and compensate Defendants for the actual, consequential, and economic damages they incurred as the result of Plaintiffs’ unlawful conduct, including costs and attorneys’ fees, and any other relief the Court deems reasonable and appropriate.”
PNB goes on to explain the parties involved (PNB, Market Street Bancshares which is the sole shareholder of PNB, the elder and younger Bonan, Main Street Bancshares which is the sole shareholder of GRCB, and American Pacific Bancorp Inc. Not mentioned in that portion of the petition is Carmi CPA Keith Botsch.)
PNB goes on to make their position that the parties agreed to a merger on November of 2015, with an amended merger agreement coming to the fore on May 10, 2016.
PNB outlines that under the merger agreement, GRCB was prohibited from intentionally taking or permitting to be taken any action that would be a breach of the terms or provisions of the agreement.”
In short, PNB alleges that GRCB violated that merger agreement by allowing American Pacific Bancorp (APB) to file an application with the Federal Reserve to become their bank holding company by acquiring 67 percent of Main Street Bancshares, indirectly acquiring Grand Rivers…meaning that GRCB, according to PNB, defaulted on the agreement by selling out to APB.
PNB then states that “at the time (GRCB) filed their lawsuit, the merger agreement had been approved by the Illinois Department of Financial and Professional Regulation…and Peoples’ application for approval of the proposed merger was pending with the Office of the Comptroller of the Currency (OCC).”
Under this claim, PNB is seeking a judgment on Breach of Contract against Main Street and GRCB, and Breach of Duty of Good Faith and Fair Dealing against both entities.
To underscore their intent, apparently, PNB also filed a third-party complaint against American Pacific Bancorp, Inc., the entity to which GRCB sold their 67 percent shares.
In a stunning accusation which they apparently believe they can prove (otherwise they wouldn’t have made it), PNB states the following:
“Less than one month prior to the goal closing date as set forth in the merger agreement,” PNB stated in their filing against APB, “American Pacific filed an application with the Federal Reserve under which it would acquire Grand Rivers. After (PNB)/(APB) objected to the proposed transaction as a violation of the merger agreement, Grand Rivers and Main Street filed a lawsuit contending that the merger agreement is void. Upon information and belief, American Pacific is funding or has agreed to fund the lawsuit in attempt to ensure its acquisition of Grand Rivers.”
So effectively, what PNB is claiming is akin to a bad divorce, in which they’re the “dad” and GRCB is the “mom.” Mom’s parents are funding the action of the divorce and any custody of the kids that might ensue; and dad’s ticked off because he’s having to use all his resources to fight it when, if mom didn’t have her parents funding the fight, there wouldn’t BE any fight.
That’s a statement that Abbey Evans might want to take heed to.
More on the allegations, and what’s coming up next for both banks, in upcoming issues as well as online.