Losses for Gaines Come from Bankruptcy
by January 17, 2005 12:00 am 417 views
A dozen lawsuits claiming from $20,000 to about $600,000 in damages have been filed against Shawn and Cortney Gaines of Bentonville and their businesses — S&C Construction Inc. and SBDC Construction Inc.
The complaints total about $4 million.
But the Gaineses, who had sought investments to develop residential property throughout Northwest Arkansas, filed for Chapter 13 bankruptcy reorganization on Jan. 8. Their attorney, Charles R. Chadwick of the Pearson & Chadwick Law firm PLLC in Fayetteville, said his clients dispute the allegations of the plaintiffs.
The suits include allegations of fraud, breach of contract and that the Gaineses used investment funds for personal use.
According to the builders’ bankruptcy filing, the Gaineses have $1.115 million in assets and $1.097 million in liabilities. Among the 144 creditors listed in the filing, 96 are from Northwest Arkansas.
Some of those include Arkansas National Bank, Bank of Gravett, Basic Block Group, First Federal Bank, Moser Corp., National Home Centers and Ridout Lumber Co.