Boyd County car dealership raided

Published 12:06 pm Friday, May 5, 2017

Fannin Automotive in debt to bank for $17.8 million

ASHALND — U.S. Marshals were at a Boyd County automotive dealer on Thursday, to executing a court order to retrieve items used as collateral on a defaulted bank loan.

Federal agents descended on Fannin Toyota, on U.S. Route 60, Thursday morning in connection with a federal civil case, Tim Stec, of the U.S. Marshals Service confirmed. Among the items taken were 300 cars as well as coins and a firearms collection used as collateral on loans.

The federal agents were wearing bullet-proof vests since, according to court documents, the owners of the dealership had threatened to harm bank representatives who had come to collect on the bank loan last month.

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According to documents filed in the U.S. District Court in Ashland, the Fannin Automotive Family owes $17,823,026 to Branch Banking & Trust Company (BB&T). Fannin Automotive Family, Inc. Jim Fannin Motors, Inc., and Fannin and Fannin (F&F), LLC were named as defendants in the case, along with Gary R. Fannin and Christopher K. Fannin, who are listed as the two members of F&F.

The defendants entered into a loan agreement with BB&T on Aug. 11, 2015. On June 17, 2016, BB&T sent two letters, notifying the borrowers that they were in default, the documents stated.

On Aug. 12, 2016, the borrowers entered into a forbearance agreement with BB&T, dated Oct. 28, 2016, and Christopher Fannin granted BB&T “a first priority security interest in all of his tangible personal property, including without limitation, his firearms collection, his jewelry collection and his coin and currency collection.”

On April 10, BB&T sent a letter to the borrowers, notifying them that, because they were in default, BB&T had accelerated and declared all indebtedness under the floor plan note and the term note immediately due and payable.

According to court documents, the indebtedness owed to BB&T, pursuant to the terms of the floor plan note, as of April 12, was at least $7,006,954.20 and the amount pursuant to the term note was $10,816,072.55.

The court documents stated that each of the borrowers, under the original floor plan agreement and floor plan note, granted to BB&T a first priority security interest in all of “Borrower’s inventory, goods, chattel paper, including electronic chattel paper, accounts, documents, equipment, letter of credit rights and supporting obligations.”

The borrowers currently have an inventory of  300 vehicles subject to the floor plan agreement, the court documents stated.

Mitch Turknett and Tom Findlay arrived at the dealership on April 11, to take possession of collateral in accordance with the loan documents, which would include 300 vehicles under the floor plan agreement and the firearms and knife collection under the “Christopher Fannin Personal Property Agreement.”

According to the court documents, threats were made against BB&T representatives, including Gary Fannin telling Turknett to come up to his office to talk and that “he would come back in a box,” Christopher Fannin telling Turknett and Findlay repeatedly that he was going to “beat” and “kick” their “ass,” Christopher

Fannin motioning Findlay to a spot on the lot and asking if he wanted “to go,” meaning to fight, and Christopher Fannin threatening to “come to Florida” where Turknett and Findlay live.

BB&T has requested that the court enter into a judgment against the Fannins in the amount of the floor plan debt, plus interest, fees, costs and expenses for no less than $7,006,954.20, a monetary judgment against the borrowers in the entire amount of the term debt, plus interest, fees, costs and expenses for no less than $10,816,072.55 and a monetary judgment in the entire amount of debt, plus interest, fees, costs and expenses for no less than $17,823,026.75.

U.S. marshals would not comment on the specifics of the case on Thursday, only that they were executing the court order.