Oct. 15--Missing Elba businessman, 47-year-old Peter Cash, may have been involved in a multi-million dollar check-kiting scheme, according to court documents.

Citizens Bank alleges that Cash illegally obtained more than $8 million from them and left town. Cash's family reported him missing in July and he was later seen in Mississippi, where he abandoned his 2007 Chevy Tahoe and purchased a 1998 pickup truck from a used car lot.

Cash, his wife Mary, who serves as Cash's temporary conservator, Russell Cash and Cash Brothers Leasing, Inc., and Bridgeville Trailers are listed as defendants in the lawsuit filed by Citizens Bank. The lawsuit charges four counts including Fraud/Misinterpretation, Breach of Contract, Breach of Warranty, and Unjust Enrichment and Money Had and Received. Several ficticious parties, described as "parties that in any way participated or profited from the 'check kiting' scheme", are also listed as defendants.

According to the lawsuit, on July 25 Cash allegedly wrote 12 checks worth more than $8.3 million to Citizens Bank from a Bridgeville Trailers account with the knowledge that there were insufficient funds. The bank claims Cash was informed of the lack of funds the same day and he assured them he would immediately make a deposit. Cash allegedly wrote 10 more checks, also on the same day, worth more than $8.2 million payable to Bridgeville Trailers from a Cash Brothers, Inc. account.

Citizens Bank plaintiffs believe "Cash is still missing and is attempting to avoid legal process" and "never intended to deposit sufficient funds", according to court papers. Citizens Bank's lawyers are requesting the defendants produce documents including "all communications or attempted communications with Peter Cash since July 1, 2008" and "all documents related to Peter Cash's current whereabouts".

In a separate court action, Cash's company, MA Manufacturing, also known as Mobile Attic, has filed suit against Southern Independent Bank. Cash reportedly took out two loans for "working capital" in the amounts of $1.5 million each from Southern Independent Bank in Elba. Cash pledged his company's property and assets when accepting the first loan, according to bank documents.

Mobile Attic's lawyers claim Cash "did not have authority to execute the Promissory Note, the Real Estate Mortgage or the Second Promissory Note", nor did the company receive any money or benefits, making the agreements "non-binding, unenforceable and null and void". On the first loan, dated July 24, 2007, Cash had agreed to pay accrued interest monthly and pay the principal amount on July 24, 2008, just four days before his disappearance.

A hearing in the Citizens Bank lawsuit is set for Nov. 19 with Circuit Judge Jeffrey Kelley at the Enterprise courthouse.

-----

To see more of The Enterprise Ledger or to subscribe to the newspaper, go to http://www.eprisenow.com/.

Copyright (c) 2008, The Enterprise Ledger, Ala.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.