By CRISTINA JANNEY
PLAINVILLE — The Plainville Livestock Commission property in Plainville sold to Flatland Holding LLC for $850,000 during an auction Thursday.
The real and personal property was sold at a bankruptcy auction.
Plainville Livestock Commission declared bankruptcy on March 1. Tyler Gillum, 47, and his wife, Camden Gillum, 50, owners of the Plainville Livestock Commission were federally indicted on a check-kiting scheme on May 29.
According to a report from the court trustee filed Friday, the total gross from the auction of the personal property and equipment from the bankruptcy auction was $405,682.
Almena Bank has the first lien on the real property, and second lien on the personal property and equipment.
TBK Bank has first lien on the personal property and equipment with the exception of four trucks and a skid loader, which had secured loans through other creditors. According to court records, TBK Bank is owed $227,238.
In court records, Almena Bank indicated Plainville Livestock Commission had defaulted on three loans with its bank totaling more than $3.49 million.
Almena Bank is currently under a consent order with the FDIC to make major corrective action in its banking practices. Neither the consent order nor the bank board chairman indicated if the Plainville Livestock Commission case had anything to do with the FDIC consent order.
According to court documents, Plainville Livestock Commission debt is almost $14.5 million of which $3.7 million is secured debt. Landmark Bank of Manhattan is listed as an unsecured creditor with the commission owing $8 million.
Dozens of cattle producers were caught up in the Gillums’ alleged scheme after money that was supposed to be set aside to pay cattle sellers was transferred from a custodial account to the Plainville Livestock Auction’s operating account. The Almena Bank froze both accounts, which resulted in bounced checks amounting to tens of thousands of dollars per producer.
The court is holding about $900,000 from the frozen accounts at Almena Bank. The cattlemen’s case is moving through the bankruptcy court separately from the main bankruptcy. The next hearing on the cattlemen’s case is set for 10:30 a.m. July 11.