Evergreen Investment+Carnation Bank - Subprime builder, financer; bank

Upate, 2007-12-20

Apparently there are now indictments against Evergreen and Carnation, and Evergreen has filed for bankruptcy:

The 147-count indictment outlines the alleged schemes involving a group of Evergreen companies in Akron, and Carnation Banc, a local mortgage-banking company.

The victims number more than 500.

...

Authorities learned that the Akron Police Department was involved in a related investigation and a task force was formed, Alexander said.

...

Local authorities seized Carnation Banc records in January and at the time, confirmed that the search was related to an ongoing mortgage fraud investigation that involved Evergreen.

In June 2006, the Ohio Department of Commerce alleged that Evergreen Investments violated state laws in its sales of high-interest rate investment certificates. The state alleged that the company sold investment certificates worth more than $6.1 million when it was insolvent.

The state alleged that the company's debt exceeded its assets by $267,000.

The company also has defaulted in paying back investors and filed for bankruptcy protection.

Original Entry, 2007-01-25

This duo, operating chiefly in Ohio, built homes and financed them for marginal borrowers. Evergreen appears to be the main operation, with Carnation just serving as a financing partner. Recently Evergreen hit the skids as investors apparently figured out it was insolvent, yet still operating. The pair of companies is now being sued by investors and investigated by local, state, and Federal authorities. Here are some stories:

• Investigators search mortgage company
• Law suits against Evergreen Investment Corp.
• Sheriff says raid was bigger -- Carnation Banc search includes 2 other sites

I get the feeling these companies' days are limited.