State Exchange Finance Company (SEFCO) = 1985

The Directors, attorneys and others began another year of frustration in ironing out all the details of the Plan and filing it with the Court, until finally, on January 24, 1985, it was consummated and NorCen Bank was born of the merger of The State Exchange Bank and Farmers State Bank. Bryce Burton was elected as the first Chairman of the Board of NorCen Bank.

1985 - Jan 23 - R. E. Grossman former director of ihe bankrupt State Exchange Finance Corp (SEFCO) committed suicide

1985 - Feb 23 Jury to meet in SEFCO probe PLYMOUTH - A Marshall County grand jury will Meet in Circuit Court starting March 4, apparently to investigate the State Exchange Finance Co. The jury was scheduled to have met last week, but the. session was postponed because of the weather. Almost two weeks have been set aside for the jury meeting. South Bend Tribune

1985 - Mar 12 Jury in SEFCO study adjourns PLYMOUTH - The grand jury which is investigating the State Exchange Finance Company has adjourned until April 18. The jury was in session all of last week. South Bend Tribune

1985 - Apr. 5 - Payment sought in SEFCO suit

PLYMOUTH - The State Exchange Finance Co. has filed suit against John J. Deery, a former official of the firm, seeking to foreclose a mortgage and asking for repayment of promissory notes

The suit, filed Thursday in Marshall Circuit Court, also names Karen Deery and the Harbour Development Corp. It seeks sums of $73,511.80 and $79,939 from John Deery, $123,666.65 from John and Karen Deery together, and $115,111.23 from John Deery and Harbour Development together.

The suit also asks attorney fees totaling $99,000.

In a separate suit, the firm is seeking $12,474.37 from Karen Deery for a promissory note, plus $1,800 in attorney fees.

1985 - Apr. 27 - SEFCO named in grand jury indictment

Plymouth - The State Exchang

e Finance Co Inc, has been indicted on one count of corrupt business influence by a Marshall County grand jury The indictment, returned April 19. was made public Friday after Rex Figg. chairman of the company's board, was served with a summons

The initial hearing on the charge, a Class V felony, was set for next Friday in Marshall Circuit Court

The indictment which is against the firm and does not name any officer by name, says that starting Nov. 6. 1982 and continuing until Dec 23, 1982. The firm knowingly and intentionally received proceeds from a pattern of racketeering activity.

The indictment says specifically this was the sale of securities in the form of investment notes

The racketeering activities permitted Ihe firm to operate, according to the indictment

The firm on Dec. 30. 1982. filed proceedings in federal Bankruptcy Court under Chapter 11 of the bankruptcy code

The indictment was signed by John Nelson, jury foreman, and was approved by Craig Braje. who was appointed special prosecutor List April for the grand jury proceedings

The appointment of a special prosecutor was requested by Prosecutor Fred Jones who cited dealings his firm had had with the finance company

Jones said last year that his office was investigating whether state law had been violated by officials of the firm receiving deposits when they knew the firm was insolvent - South Bend Tribune

1985 - Apr 28 - Indictment says firm used racketeering to delay bankruptcy

Financial rackteenng allowed a northern Indiana financial company to operate, according to information from a Marshall County grand jury report.

The grand jury indicted the State Exchange Finance Co. of Culver, Ind on a charge of corrupt business influence.

It concluded that the company accepted proceeds from a pattern of racketeering activities. The report was made public Friday after the grand jury had reached a decision on April 19.

It noted that between November and December 1982 SEFCO became involved in selling securities in the form of investment notes.

The activities all occurred before the financially ailing firm filed for bankruptcy protection on Dec.30, 1982.

According to the indictment, the company took the proceeds from the issuance of the securities as a way to forestall imminent bankruptcy.

The indictment was issued against the firm and doesn't name any officer of the company.

However; on Friday, Rex Figg, the chief financial officer of the board was served with the summons.

An initial hearing has been set for this Friday in Marshall Circuit Court.

Since the indictment is against the company, the court will have to decide the extent of liability of company officials. At least two persons linked to SEFCO have committed suicide since the firm filed for bankruptcy. On Jan 10. 1983. SEFCO chairman Fred E. Adams drove into a bird sanctuary in Culver and fired a shotgun into his chest on the day that he was notified that the Federal Deposit Insurance Corp. would investigate him and other officials for possible criminal violations, including misapplication of bank funds.

On Jan. 22, 1985. Robert E.Grossman, one of nearly a dozen defendants in a civil suit filed by SEFCO investors, was found dead of carbon monoxide poisoning in his car, which was parked in a cemetery near Argus.

Grossman was one of several directors of the corporation when it filed for bankruptcy.

LaPorte County Prosecutor Craig Braje, special prosecutor during the grand jury investigation, was unavailable for comment Saturday.

Marshall County Prosecutor Fred Jones had requested a special prosecutor, citing a previous investigation of the company for possible violation of state banking laws.. Indianapolis Star

1985 - Apr 29 - SEFCO Faces Racketeering Charges

PLYMOUTH, Ind. (UPI) — A Marshall County grand jury has indicted the State Exchange Finance Co. of Culver on racketeering charges.

The indictment handed down Friday said SEFCO accepted proceeds from a pattern of racketeering activities and fraudulently used money from sales of securities to delay bankruptcy.

The report was made public a week after the grand jury's decision. The panel noted that between November and December 1982 SEFCO became involved in selling investment notes. The company filed for bankruptcy protection on Dec. 30,1982.

The indictment charged only the firm, no individuals.

A summons was issued by Marshall Circuit Court Friday for Rex Figg, the chief financial officer of SEFCO's board of directors.

An initial hearing has been set for this Friday. - Monday, April 29, 1985 Logansport Pharos-Tribune

1985 - May 5 - SEFCOs legal fees continue to grow

By MATT GALBRAITH Tribune Staff Writer

PLYMOUTH - A plea of innocent w as entered today in Marshall Circuit Court for the State Exchange Finance Co., indicted last, month by a grand jury on one count of corrupt business influence.

The plea was entered for the firm by Judge Michael D. Cook during the initial hearing in the case. Cook ordered both sides to hold a pretrial conference on or before June 7. ordered discovery on a reciprocal basis, set June 28 as the final day for submitting a plea agreement and set July 19 at the omnibus hearing date.

Special Prosecutor Craig Braje read the indictment and also read the penalty for the offense, which is a Class C felony. The penalty consists of a maximum fine of $10,000 and a standard sentence of five years, to which three years can be added for aggravating circumstances or three years' deducted for mitigating circumstances.

Cook said that since the defendant was a corporation, the penalty would be only a fine, and perhaps restitution.

Cook said Braje had indicated the chief executive officer of the firm might be called as a witness and said that since only the firm was indicted, the officer could be made to testify.

Rex Figg, chairman of the firm, was present for the hearing, along with the firms attorney, Mark Philipoff.

According to the indictment, the firm starting Nov. 6, 1982, and continuing until Dec. 23, 1982, knowingly and intentionally received proceeds from a pattern of racketeering activity and that specifically, this involved the sale of securities in the form of investment notes.

The indictment said that the racketeering activities permitted the firm to operate.

The firm Dec. 30, 1982, filed proceedings in federal Bankruptcy Court under Chapter 11 of the bankruptcy code. - SOuth Bend Tribune

1985 - Jul 9 - Nov. 4 scheduled for SEFCO trial PLYMOUTH A jury trial for the State Exchange Finance Co., indicted by a grand jury for corrupt business practices, has been scheduled for Nov. 4 in Marshall Circuit Court. The trial date was set after the deadline for submission of a plea agreement passed without any agreement being submitted or an extension of time requested.. - - South Bend Tribune 1985 - Aug. 9 - Nunemaker is winner in bidding

By JOHN WILCOX Tribune Plymouth Bureau

PLYMOUTH - Bremen businessman Larry Nunemaker emerged Thursday as the apparent winner of the bidding war for the Fountain Head Golf Course.

Dean Colvin, Nunemakers attorney, said he was notified by State Exchange Finance Co. attorneys that Nunemaker was the successful bidder for the golf course on North Michigan Road. His $460,110 bid is expected to be f ormally accepted sometime today. The citys effort to acquire the course ended when the Fountain Head Preservation Association was unable to raise the entire $20,000 needed to top Nunemakers latest bid.

Rick Huff, attorney for the Fountain Head Preservation Association, said the group fell about $7,500 short of the $20,000 needed to top Nunemaker by SEFCOs deadline of 2:30 p.m. Thursday. The association, made up of nearby residents, golfers and other community members, had raised $67,500 to donate to the city to acquire the course.

Colvin said he expects to receive approval for the sale of the course to Nunemaker from Federal Bankruptcy Court in South Bend within two weeks. Were still willing to work with the city if they want to work with us, Colvin said. Nunemaker has stated he wants to develop a shopping center facing North Michigan Road. However, changes in the areas zoning may not allow such a development. The golf course and much of Plymouths northeastern two-mile jurisdiction area recently was changed from light industrial to suburban residential.

By coincidence, the zoning change was made the day Nunemaker entered the bidding for the course.

Homeowners near the golf course oppose Nunemakers development plans, and some of them formed the preservation association to help the city acquire the course. The city presently leases the course from SEFCO.

If Nunemaker plans to go ahead with his development plans, he likely would apply for rezoning of the land with the Plymouth City Plan Commission, which would review the request and pass a recommendation on to the City Council, which would have final approval.

After developing a portion of the land, Nunemaker has offered to lease the rest of the course back to the city, and that offer still stands, according to Colvin.

Nunemaker was out of the state today and unavailable for comment, Colvin said - South Bend Tribune

1985 - Dec 13 - Bankruptcy action delays SEFCO trial

PLYMOUTH The trial of State Exchange Finance Co. on a charge of corrupt business influence has been delayed until federal Bankruptcy Court rules in the case. Marshall Circuit Judge Michael D. Cook granted the firms motion for a continuance in the trial, which had been scheduled to start Jan. 13.

SEFCO was indicted by a county grand jury last April The firm in 1982 filed Chapter 11 bankruptcy proceedings. - - South Bend Tribune

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