State Exchange Finance Company (SEFCO) Oct-Dec 1984

1984 - Dec 1 - SEFCO note holders file 4-count suit

By RICHARD SALOMON Tribune Plymouth writer

PLYMOUTH - A suit seeking millions of dollars in damages from the State Exchange Bank and ' 23 officers or former officers of the bank, the State Exchange Finance Co. and the Farmers state Bank was filed in Marshall Circuit Court Friday.

The plaintiffs are 80 persons who J had purchased investment notes issued by the finance company

The four-count suit asks $2,084,57200 plus interest, treble f damages, punitive damages, costs and attorney fees In the first count; a judgment which rescinds the transactions by which the plaintiffs purchased investment notes, recovery of consideration paid, interest, costs, and attorney fees in the second Count; damages of $2,086,572.04 plus Interest and $10 million in punitive damages, costs and fees itn the third count, and $2.064J72.66 damages plus interest and $lO million in punitive damages, costs and fees in the fourth count

Named as defendants were the bank;


Marsha Adams, executor of the estate of Fred E. Adams; Charlotte Jung; Eugene R. Christiansen; John J. Deery; Allen H. Cummlns; Jack Carpenter; Robert Koch; Bill Annis

Margaret Swanson; Richard P. Smith; William F. Laramore; Robert E Crossman: Herschell J. Umbaugh; John R. Mars; Bill Crocker; Ronald A. McKee;

Edwin Boswell; Bryce Burton; Eugene Perrot; Craig Weeks; Burl L Nifong; Michael A Schell, and Sharon Brockus.



The suit claims the defendants individually or in concert and as agents of the State Exchange Bank caused the finance company to engage in numerous unsafe and unsound business practices.

The suit charges the director-defendants of the finance company violated their fiduciary duties and their oaths to honestly and diligently administer the affairs of the finance company.

The suit also charges the defendants have continuously concealed (and conspired to conceal the true ; condition of the finance company -from the plaintiffs and that beginning Jan. 1, 1982, the defendants be- came aware of the finance company's deterioration.

The suit says certain defendants conspired to strip the finance company of available cash by secretly, redeeming Investment notes some of the defendants held.

The suit says that starting in January 1982 and continuing throughout the year, the State Exchange Bank and various defendants induced the plaintiffs to continue to purchase finance company Investment notes and made misrepresentations of facts In connection with the sale of the notes.

The suit says that In August 1982 the finance company became insolvent and that on Dec. 30, 1982, it sought protection under Chapter 11 of the bankruptcy code.

The first count In the suit was brought under the Indiana Racketeer Influenced and Corrupt Organizations Law, and says that defendants have conspired to commit two or more racketeering activities.

The suit lists all the defendants except Weeks, Schell, Brockus, Christiansen and Crocker as being officers, directors or associates of all three firms.

Weeks is listed as vice president and controller of the State Exchange Bank: Schell as vice president of the Farmers State Bank: Brockus as secretary of the finance cé company; Christiansen as senior vice president of the State Exchange Bank, and Crocker as vice president of-the State Exchange Bank.

The plaintiffs tn the suit are
Dale Albert,
Cleo Albert and Dale Albert and Robert Albert as co-administrators of the estate of Elaine Albert:
Ruth Armstrong.
Janet Batley,
Jeanette Bailey,
Vivian Borneman,
Thomas Boyer,
Carol Boyer,
Carol Butgerelt,
Emery Davis Gladys Davis, and Jack Edison and Judy Edison, Individually and as parents of Michael and Lisa Edison;
Max Edmonds and Lois Edmonds. individually and as parents of Rickey, Terry, and Kevin Emonds;
Beatrice Gehrke,
Fred Gehrke,
Jerome Gumz,
Cherry Gumz,
Roberta Gumz,
Wayne Hittle,
Ida Hittle; and
John Jennings and Joy Jennings, Individually and as parents of Brian Jennings;
Larry Jones and Susan P. Jones.

Also,
Kokomo Trailer Mart Inc,
LaPorte Transit Profit Sharing Trust,
Listenberger Enterprises Inc,
Ernest tang.
Edith Long,
Schylor McCartney, attorney in fact for Edward McCartney and Ronnie McCartney, trustees of Eric McCartney;


Ludwig Matzat, Lorene Matzat, MEF Inc, Paul Meyers, Cyrus Nifong. Loretta Nifong. Doris Norman, Pertics Blueberry Plantation, Emil Pertlcs, Alice Pertlcs, Ernest Pertics,

Gloria Pertics, Rick Pertics, RTD Profit Sharing Fund, Clara Ringer, Daniel Ringer, Kenneth Ringer, Dorothy Ringer, Larry Ringer, Rose Ringer, Ralph Ringer, Richard Ringer,

Robert Ripperger Jr, Arnold Shively. Alta Shively. R. Vernon Snoke Jr, L Jean Snoke. Thomas Farms, Bradley Thomas, Bryan Thomas, Curtis Thomas, Eugene Thomas and

Eugene Thomas as executor of the estate of Icel Thomas;


Phyllis Thomas, Kimberly Thomas, John Thompson, Madeline Thompson, Wright-Denaut Construction Co. Inc,

Roger Wright, Nekla Wright, Walchar Inc, Mary Ziesenhene, Marsha Letter and Paula Fisher.

--- South Bend Tribune

1984 - Dec 19 - Culver. Lapaz banks Meger approved By DEBORAH PINES (found under 1984 Merger of State Exchange Bank and Farmers State Bank)

1984 - Dewc 20 - SEFCO Reorganization Press Conference Set

Culver — The board of directors of the State Exchange Bank says it has been notified by the Federal Deposit Insurance Corporation that a proposed merger with Farmer's State Bank, Lapaz, has been approved

The State Exchange Bank, Farmer's State Bank and State Exchange Finance Company have scheduled a press conference at 2 p.m. today in the Plymouth Public Library to announce further details - Logansport Pharos-Tribune


~ ~ Apr-Jun 1984 ~ ~ 1984 ~ ~ Oct-Dec 1984

SEFCO ~~ 1983 ~~ 1984~~ 1985 ~ ~ 1986