Evergreen Investment & Carnation Banc - Subprime builder, financer; Bank

Carnation Banc's Ohio mortgage broker license is in "cancelled" status, and their web site is gone (you can view an archival copy here). Three employees - President Craig Conner, and Loan Officers Angela Soukup and Amanda Lower - plead guilty to charges in the indictment including "engaging in a pattern of corrupt activity, aggravated theft and other felonies" according to articles in the Akron Beacon Journal (2008-04-16 and 2008-04-18).

One Evergreen employee, Daniel Mohler, has plead guilty to "corruption and securities offenses." Evergreen's President David Willan, the "principal figure of the indictment," faces charges of "engaging in a pattern of corrupt activity, securities fraud, aggravated theft, false representation in the registering of securities and other felonies." Evergreen Investment Corporation's securities license was suspended by the State of Ohio in June of 2006 at the outset of the investigation.

From Original Ailing Listing - Update, 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.