Daily Progress, Jacksonville, TX

Local News

April 19, 2013

A QUESTION OF TRUST – OR TRUSTEE? LMC 'liquidating trustee' blames AG for delay in paying LMC employee back wages

JACKSONVILLE — By Ben Tinsley

btinsley@jacksonvilleprogress.com

The liquidating trustee for the Lon Morris College bankruptcy estate announced Thursday she hopes former LMC employees can be paid their back wages in a few weeks.

This statement issued by Dawn Ragan – in response to several requests for comment on the issue – comes as the unpaid LMC employees prepare to gather Saturday to discuss options in recovering their owed money.  

Ragan, plan agent and “liquidating trustee” for the LMC bankruptcy estate, is blaming the office of Texas Attorney General Greg Abbott for the delay. AG representatives have continually said this is not true.

In an emailed statement, Ragan said Thursday she “agreed to a settlement with two foundations prior to confirmation wherein the foundations would contribute at least $500,000 to be used specifically to pay the employee back wages.”

Ragan contends the foundations of which she speaks want the Texas Attorney General to approve and sign off on the deal.

“While the AG has indicated to us on multiple occasions they do not oppose the settlement, they have yet to give the foundations approval such that they could transfer the funds to us,” Ragan wrote. “It is extremely frustrating for us as well, and we continue to discuss and work with the AG’s office in an attempt to resolve multiple matters.  I am hopeful it will not be more than another few weeks.”

Ragan did not immediately respond to emailed followup questions for the specific names and contact numbers for these foundations.

Last year, the Texas Annual Conference of the United Methodist Church organized a humanitarian appeal that generated money to help cover one missed payroll for  former employees – an effort that has been cited by Ragan as an example of what she is trying to do now.

But the Rev. Joel McMahon with the local First United Methodist Church said Thursday as far as he knows there is not a similar effort going on right now.

Thomas Kelley, spokesman for Texas Attorney General Greg Abbott, could not immediately be reached to comment Thursday. But he has continually emphasized in previous interviews that Ragan remains the sole party responsible for employee reimbursement.

“The timing of if or when she will pay employees their back wages is totally up to her,” Kelley stated recently.

The LMC estate declared bankruptcy this summer. In mid-February, a federal judge approached a formal liquidation plan. But there was nothing in the official paperwork addressing payment for the employees who worked there during the institution's final days.

Frustration over the issue has driven the former employees to meet at 2 p.m. Saturday at the First United Methodist Church to discuss how to approach the issue. Jacksonville City Attorney Joe Angle will be there as well, although not in any official city capacity.

To recover LMC transcripts: Access http://www.bea-bearcat.com.

1
Text Only
Local News
  • Cuney Council cancels meeting, again

    Tuesday's Cuney City Council meeting – in which local alderman were to vote on canceling a May 10 election due to unopposed status of candidates – was canceled because of a lack of quorum, according to City Secretary Brenda Lankford.

    April 23, 2014

  • Sen. Nichols speaking.tif Senator Nichols speaks to Jacksonville Leadership Institute

    State Senator Robert Nichols (R) spoke to the Jacksonville Leadership Institute Tuesday regarding the role of government in Texas.

    April 23, 2014 1 Photo

  • Jacob.tif Local boy recovering from campfire accident in Dallas hospital

    Jacob Sessions of Jacksonville was burned on 71 percent of his body on April 5 from a campfire accident. He is currently in Parkland ICU due to his injuries, according to a representative for the family.

    April 23, 2014 1 Photo

  • THOMPSON, CEDRICK.tif Cherokee County woman found dead

    At approximately 9:35 a.m. Sunday,  Kayla Nicole Thompson, 27, was found deceased in the driveway of her residence, located in the 1500 block of County Road 3201,  just West of Lake Jacksonville.

    April 22, 2014 1 Photo

  • BullardFUNRUN.tif Bullard Education Foundation sets record with event

    The Bullard Education Foundation hosted its 4th annual 5K /Fun Run, “Strides for Excellence” on Saturday morning, April 19.

    April 22, 2014 1 Photo

  • Fire destroys Sims Avenue residence

    Jacksonville Fire Department responded to a fire in the 900 block of Sims Avenue early Saturday.

    April 22, 2014

  • Community library on council agenda

    The Bullard City Council will met at 6 p.m. today at Bullard First Baptist Church, 1428 S. Houston, for the regular board meeting.

    April 22, 2014

  • Council to mull election, roads

    The Cuney City Council will meet at 10 a.m. today at the Cuney Municipal Building.

    April 22, 2014

  • Christian Rapper 0419.tif Local rap artist spreads the 411 on Jesus

    "I have seen things in my life that would make Dr. Phil crazy," Jacksonville native, ordained minister and aspiring rap artist Stephen I. Crow Jr. said with a laugh. "That's why I don't label my music specifically as "Christian rap" -- yes, Christians who love rap can listen and hopefully be uplifted, but I truly want and am trying to bring the word and Jesus' message to people who may never have heard it or don't believe it's for them.

    April 19, 2014 1 Photo

  • Tomato Bowl flushed to bottom of priorities

    The historic Tomato Bowl, built in 1940, stands strong on the outside, but according to some people the inside needs a lot of work in order to not be an eyesore.

    April 19, 2014

LOCAL MAGAZINE
Election 2012
AP Video
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide