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February 5, 2008


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NEWS

Ray Davis Saga Lives On:
Feds Sue 32 More Victims for Total of $691,253

By Bob Parkins
The (Milan) Mirror-Exchange

The federal bankruptcy court in Jackson recently sued 32 more Ray Davis victims seeking recovery of funds allegedly paid to them by the convicted scam artist who is now serving time in a federal penitentiary in Marion, Illinois.

Total funds listed in the last 32 lawsuits amount to $691,253, but in a change of pace, Bradley Sigler, attorney for the bankruptcy court, offered the defendants (Davis victims) a chance to settle the lawsuits by contacting a new court lawyer and save the added expense of hiring an attorney to defend them. About 50 other Davis victims, sued earlier by the federal court, were not offered that option. However, the first 50 sued were the larger clients of Davis who allegedly received repayment in amounts ranging from more than a quarter million dollars to $50,000 or less. Only a few of the first group sued have settled with the court based on various percentages, and others are pressing for a jury trial, claiming they have broken no law and owe the government nothing.

The most recently sued victims include nine from Dyersburg, two from Milan, two from Bradford, one from Trenton, one from Atwood, one from Cedar Grove, and one each from Memphis, Tiptonville, Martin, Alamo, Cordova, McKenzie, Franklin, Halls, Newbern and Collierville. Six are from out-of-state.

Another change of pace used by the bankruptcy court in the last batch of victims sued included with the lawsuits a letter of demand from Sigler. Also included was a summons for the defendants to appear for pretrial conferences in Jackson next month.

Most of Davis victims sued first last year by the court have not been summoned yet. “That is another change in policy,” one of the victims noted.

Sigler also noted in his cover letter that the new attorney, Rob Vandiver, had been hired by the court to assist in the lawsuits, which now total about 80 Davis victims. Court records show Davis had 500+ clients with total exposure of $32 million.

Defendants listed in the latest round of Davis victims and amounts sought by the bankruptcy court include:

From Milan – Dewey and Dorothy Houston, $22,000; Jimmy McClure, $24,000.

Trenton – Mike and Joy Wallsmith, $20,803.

Bradford – Larry McCartney, $18,258, and Maxine McCartney, $18,450.

Atwood – Leo Witty, $21,700.

Cedar Grove – Michael and Teresa Jackson, $24,250.

McKenzie – Rodney Chandler, $39,700.

Martin – Jeffrey and Ginger McEwen, $16,300.

Alamo – Jerry and Libby Skelton, $28,650.

Newbern – Richard E. and Tina Smith, $15,960.

Halls – James A. Jones, $15,950.

Franklin – Kenneth Leeth, $42,000.

Cordova – Glenda Johnson, $31,800.

Collierville – Debbie Nabors, $23,373.

Tiptonville – Karen Perkins and Juanita Tinkle, $24,300.

Memphis – Neil & Peggy Stehling, $21,000.

Dyersburg (nine persons) – Steve and Shelley Wellington, $15,750; Ed and Rebecca Jackson, $17,250; Ron B. Read, $18,500; Charles and Hendrix Jr. $17,761; Cecil and Katie Morrow, $22,537; Charles and Ginny Seaton, $22,500; B.C. and Gaither Hendren, III, $24,070; David and Beverly Tinkle, $35,850; and Mark Bryan, $34,702.

Out of State:

Mena, Ark. – Ed and Betty Medlin, $16,227; Danny Thrailkill, $17,840; and Patrick McDaniel, $20,880; Tupelo Miss. – Wayne Slocum, $15,500; and Roswell, Ga. – Debra Brandon, $23,775; Atlanta – Julie Noel, $15,525.

Where will the money collected by the bankruptcy court go?

Under an umbrella of justice, the Court is designed to put the money collected from Davis victims into a pool to later prorate to victims with losses when all settlements are completed. However, an earlier order signed by a federal judge allowed bankruptcy lawyers, like Sigler and Michael Tabor, to collect up to 40 percent of the adversarial settlements. But those collection percentages were challenged and later compromised to lesser percentages of payment by the judge.

Judge Harvey Boswell of Milan recused himself after the lawsuit began. Judge George W. Emerson Jr. was appointed to replace Boswell.

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February 5, 2008