Bank acquires Malt’s properties
The embattled real estate development company that built the Forest Lakes Garden Homes community deeded three tax-delinquent parcels in the subdivision to a Bank of the Ozarks-affiliated entity earlier this month.
A quitclaim deed filed Sept. 12 conveyed the clubhouse, 2.85 acres along Twin Points Road and more than 12 acres of common area Arkansas Land and Equipment owned inside the subdivision to Twin Points Road Clubhouse Properties LLC, which lists Greg L. McKinney, Bank of the Ozarks’ chief financial officer, as its incorporator.
A redemption deed filed Monday shows the bank paid $33,624 in unpaid taxes, interests and penalties on the three parcels to the Commissioner of State Lands. According to property records, Arkansas Land and Equipment conveyed two 40acre parcels between Twin Points and Higdon Ferry roads to Bank of
the Ozarks in May.
McKinney and the bank’s investor relations department didn’t return calls seeking comment, and the phone number listed for Arkansas Land and Equipment is no longer in service.
Robert Malt was listed as the president and secretary of the company when the Arkansas Contractors Licensing Board revoked Robert Malt Construction Inc.’s license last September.
The board levied $322,000 in civil penalties against Malt, including $30,000 against his construction company for misconduct and abetting an unlicensed entity and $292,000 against Arkansas Land and Equipment for operating without a license for 730 days.
The misconduct charges included findings that Malt convinced people to deed him lots they had purchased for prospective homes his companies were contracted to build. In some instances, Malt never transferred the property, making it difficult for the owners to get a clean title.
Greg Crow, the contractor board’s executive director, said Arkansas Land and Equipment represented itself as Robert Malt Construction when it applied for permits. Crow said earlier this week that the board has filed suit in Pulaski County to collect the penalties but is deferring action until the numerous homebuyers, suppliers and creditors whom court filings allege Malt to be indebted to get paid.
Crow said the board is working with Malt’s attorney on a plan to pay off his debts.
“The last update I had was that some people have been paid,” he said. “We’re working on a plan with him to get everybody paid. We’ll have to wait to see what happens. We don’t want to be in front of consumers. We don’t want to take money that could belong to them.”
Building supply company C.J. Horner Co. Inc. dismissed its lawsuit against Malt for unpaid bills in March. A Dec. 3 pleading said Malt satisfied a partial judgment of $134,020 in unpaid bills, interest and penalties. Satisfaction of judgments for $117,000 owed to Lumber One Home Center in Benton and $23,303 in unpaid invoices from Rideout Lumber were also filed in March.
The Forest Lakes Garden Homes Property Association has active liens against Malt for almost $3,000 in unpaid property dues on more than a dozen properties he owns in the subdivision. Last week, a Garland County couple sued Malt, his realty company and Arkansas Land and Equipment for breach of contract connected to the $70,000 down payment the complaint said the couple gave Malt to build a Forest Lake home that was never completed.
The complaint alleges Malt knew he would be unable to build the home when he accepted the down payment in January 2015, as he and his company where the subject of numerous lawsuits, liens and foreclosures.
Southern Bancorp Bank filed suit last year to foreclose on four Forest Lake properties Malt used to secure a $1.25 million loan the bank said he defaulted on. The suit is also trying to foreclose on a Lookout Point property Malt used to secure an $85,000 loan that’s in default.
Simmons First National Bank filed a foreclosure action in April 2015 on several Forest Lakes properties Malt mortgaged to back a $1.07 million loan the bank issued in April 2013. An amended complaint filed last April said Malt owed $1.1 million in principal, interest, taxes and attorney fees on the loan.
The bank is also seeking to foreclose on 14 Forest Lakes lots Malt mortgaged to back an $837,967 loan in 2013. The amended complaint said Malt owes more than $600,000 in principal, interest and fees.