Combs? War of Words II

We’re confident developer Gary Combs was a popular topic of conversation at a recent gathering in Branson, Mo., the 72nd annual Arkansas Bank Management Seminar.

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Combs has stepped up the irregular publication of his “In My Opinion” musings/rants regarding the Arkansas banking community.

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We aren’t surprised that push has come to shove as he has escalated his war of words with the local lending establishment.

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Not merely content to take shots at lenders, Combs now is taking verbal swings at the Arkansas State Bank Department.

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He has exchanged pleasantries with Bank Commissioner Candace Franks. Both parties have fired warning shots, with allusions to possible violations of law.
Franks believes Combs may have gone too far in expressing his thoughts on the condition of the lending landscape. She penned him a note dated Aug. 7.

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“These ‘Opinions’ raise great concern, and I want to make you aware actions by persons taken in this regard may be consistent with those constituting a criminal offense as provided in Arkansas Code Annotated  § 23-50-104. Please remain aware of this statute when expressing and circulating these, or any future, ‘Opinions.’”

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You remember § 23-50-104, circulation of false rumor injurious to bank?

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The thresholds for this Class A misdemeanor are when someone:

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• Maliciously, and without cause, circulates or causes to be circulated, either verbally or in writing, any rumor with the intent to injuriously affect the financial standing or reputation of any bank doing business in this state;

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• Makes any statement or circulates or assists in circulating any false rumor for the purpose of injuring the financial standing of any bank; or

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• Seeks either by word or action to start a run upon a bank or connives or conspires with any parties for the purpose of injuring the standing or reputation or starting a run on the bank.

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What was his response to the letter from Franks?

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Combs suggested that she is in on the conspiracy to screw over him and other borrowers.

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“Surely as a lawyer you must understand that you are entering into a civil matter and are guilty of compounding,” he wrote.

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“Compounding, as I understand it, is a ‘criminal act in which a person agrees not to report the occurrence of a crime or not to prosecute a criminal offender in exchange for money or other consideration.’

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“It seems to me that you have used the high office of Bank Commissioner to try to bully me with a threat of criminal prosecution. I would suppose the consideration is for me to never have another opinion. My opinions are protected under the First Amendment.”

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In addition to debating matters of law in his Aug. 12 retort, Combs sent Franks a 17-point request for documents under the Arkansas Freedom of Information Act.

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One of those line items asks the Bank Department to produce all documents addressing the management, control or financial soundness of 18 lenders in Northwest Arkansas.

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The request could have a favorable impact on copy paper sales should the Bank Department see fit to fulfill its scope.

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But our long experience with the FOIA and the State Bank Department leads us to believe that the juiciest stuff is going to be exempt.