Developer Being Sued for Nonpayment

Our friend Bearroller sent me an email that Fifth Third Bank is suing Lake Forest developer and general LaVergne influencer Amnon Shreibman for defaulting on a loan that was a whopping $13,668,000.  That’s almost $14 million. If I had that kind of money…. sigh…

Here’s a link to the write-up (so far) in the DNJ by Mealand Ragland Hudgins,

Fifth Third officials contacted Amnon Shriebman around Dec. 7 and told him a payment of $42,870.79 was due. A month later, the bank withdrew that amount, resulting in a negative account balance of $42,835.51.

“Since the creation of that overdraft, Fifth Third, on numerous occasions, has asked and advised the Trustee to cover such overdraft. (Amnon Shriebman) has refused to cover such overdraft on each such occasion and has explicitly informed Fifth Third that it has no intention at all to cover this overdraft at any time,” the document states.

Further, property taxes of about $135,991 have yet to be paid to Rutherford and Davidson counties.  My questions:

  1. What happens when YOU don’t pay your property tax?
  2. The properties owned by Mr. Schreibman are “collateral” … does this mean that Fifth Third will become one of the biggest land- and home-owners in LaVergne and Lake Forest?
  3. What happens if the city changes the street names?  We know the library building is named in memory of Mr. Schreibman’s son (which is very sweet and poignant, really), but how about renaming some of these other very public streets to something else like Kathy T. Blvd.  Hahaha…
  4. What do you think?  Think about what you say before you say it because any comments attacking someone for their race, religion, national origin, etc. will be deleted.  No name calling, please.

17 comments for “Developer Being Sued for Nonpayment

  1. Leanne
    June 9, 2010 at 6:51 pm

    I think a street called Tyson Lane would be awesome. 🙂

    • June 9, 2010 at 7:13 pm

      Tee hee! I think so too! How about Leanne Welch Way. Or just Welch Way. Leanne Lane has a nice ring to it, too! 🙂

  2. Leanne
    June 9, 2010 at 7:22 pm

    Well Welch would be someone else being I am Welsh. I think there is already a street named Leanne or something close to it.

    But hey – I will take one too. 🙂

  3. michaelinLV
    June 9, 2010 at 7:44 pm

    Kathy, here are your answers:

    1. If you don't pay your property taxes, a lien is placed against your property. Once your property is sold all back taxes will be paid before anyone else has access to the funds.

    2. Yes, if the property is repossesed then 5/3 will own that land. Although I have to say I'm not sure how much undeveloped land this represents.

    3. As someone who once hadto deal with a street name (from James Gafford Drive to Gafford Ct.), it ain't worth it. I imagine a lot of communities are now ecstatic for not renaming streets after Obama!

    4. I honestly don't think I see the big deal. The biggest developer in New York City (Donald Trump) has gone bankrupt several times over; he didn't have to move to Israel just beause of it. With the real-estate collapse we've seen, I wouldn't be surprised if this wasn't a planned default by Shriebman. Not saying I agree, just saying I'm not surprised.

    As a side note, I doubt this was Shriebman's only checking account. I'm sure he moved most of his money to a different checking account before the withdrawal. The remaining $35 was probably by accident.

  4. June 9, 2010 at 7:52 pm

    Michael – thanks. Though my questions were rhetorical, your answers were brilliant. 🙂

    Leanne WELSH!

  5. Leanne
    June 9, 2010 at 7:58 pm

    You rang? 🙂

  6. June 9, 2010 at 8:49 pm

    Regarding item 1, yes a lien is place against the property by the tax assessor(s). Some tax assessors sell their liens to investors through tax lien sales. Other states, such as Texas, allow the property owner to grant permission to a third party lender to pay their delinquent taxes at which time the tax lien is transferred to the third party lender.

  7. michaelinLV
    June 10, 2010 at 7:55 am

    New article in today's Tennesseean.

    "Based on statements by Amnon Shreibman that he has considered the possibility of relocating his primary personal residence and assets to the State of Israel, the defendants are preparing to remove property, including possible collateral, out of the state without leaving sufficient remaining funds or property for the payment of their obligations," the lawsuit states.

    • Sherry
      June 10, 2010 at 8:39 am

      Holy cow. What I want to know is out of the 100 "addresses" still in his name, how many are already occupied/leased or contain half-built residences? That can easily put a builder out of business, and leave current residents out on the street. I know the housing market is bad, but it sounds like he built more spec houses than contract houses, which ain't real bright these days. Kathy, a/k/a our Resident Real Estate Expert, what's your take on all this?

      Second, why the heck doesn't he file for bankruptcy, which would be a whole lot simpler and cheaper than going thru this lawsuit? Makes me wonder if he's got other assets hidden somewhere, either here or overseas. The article hints that he does.

    • June 10, 2010 at 8:53 am

      i smell scam done to the American people and banks….

    • snowmanhow
      June 11, 2010 at 11:16 am

      That article explains why the fourth leg of the roundabout hasn't been completed.

      Sherry – I believe these are all vacant lots, primarily west of Davids Way/Nir Shriebman Blvd in the area between Davids Way & the Roundabout.

      I'm not so concerned about the development (general issues with the overall development notwithstanding) as I am about the 4th leg of the roundabout. I fully disagree with the Mayor that the road is "not a pressing issue in terms of traffic flow." Perhaps he should come and hangout on Lavergne Ln between 5 and 8 am. I've been honked at backing out of my driveway at 5:30 am, because I finally gave up waiting and picked the biggest gap I could find.

      I cringe watching kids walk down Stones River Rd & Lavergne Ln (with no sidewalks) to school – effectively going backward because the 4th leg is not completed.

      I would really like to know the traffic counts for Lavergne Ln vs Fergus/Bill Stewart & other road in the subdivision. I really think it would open some eyes. Does the city collect or have traffic count data from around the city?

  8. Cee Dee
    June 10, 2010 at 11:53 am

    I think maybe the mayor should check the tax records closer before sayin this is the first year taxes have not been paid by this individual . . . If I'm not mistaken, there were also past due water bills written off recently that belonged to his "holdings".

    • June 10, 2010 at 8:50 pm

      aLL Tx recorsds should be check on all, even thos in top office. I checked them online and you would be surprised to see who doesnt pay taxes and who pays very little taxes. I did a check a few months ago on certain people who work in the city and certain well known names of the coty and found some interesting things….it does take alittle time to look but its all on the city website for free…check it out!

  9. Cee Dee
    June 11, 2010 at 7:50 am

    Rumor has it that he was at City Hall the past couple of days — thinks he's trying to pay his "past dues"???

    • Sherry
      June 11, 2010 at 8:57 am

      The city taxes are minimal . . . I'd be more concerned about getting the county taxes paid first!

      • michaelinLV
        June 11, 2010 at 10:58 am

        Yeah, except for the fact the County is telling La Vergne to raise our taxes and provide garbage service. I pay $15 a month for curbside trash service I can't imagine a government beurocracy offering that service for a lower cost than $15 a month. Plus how much money is that ridulously large Welcome Center at the Avenue costing to build and staff?

        I feel like the taxes I pay to Rutherford County are either used to benefit Murfreeboro, or flushed down the toilet. Yes, I know they fund the schools. So why is Smyrna (pop 38,000) about to have 3 high schools while La Vergne (pop 30,000) still only has 1?

  10. mike
    June 13, 2010 at 10:23 am

    CeeDee you got it right its just a rumor he has been out of the country and returns today

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