Daily Progress, Jacksonville, TX

Homepage

September 3, 2013

LMC estate sues trustees for ‘$20 billion’

TYLER —

Attorneys with the Lon Morris College bankruptcy estate are suing former college president Miles McCall and members of the former LMC board of trustees in federal court — alleging mismanagement that effectively destroyed the institution.

“McCall and the Board Defendants should now be held responsible for their

grossly negligent, improper, and financially devastating actions,” reads the action filed Aug. 29.

The estate's demand from the defendants? The lawsuit specifies, “damages for the board defendants' breaches of fiduciary duty in an amount to be determined at trial.” But the number listed on a heading page lists a “2” and 10 accompanying zeroes — as in $20 billion.

The 31-page LMC complaint names as defendants former board members Gene Brumbelow, Bill Wagner, Frank Ashcroft, Bob Staton, Windol Cook, Helen Dubcak, June Deadrick, Jim Crawford and Mark Brown.

Brumbelow said Tuesday he was unaware any suit had been filed.

“We had been expecting for something like this to happen down the road, but you're the first person to tell me anything like this actually did,” Brumbelow said during a brief phone interview. “This is totally new to me.”

However, former board member Helen Dubcak said the lawsuit, to her, is ironic because she believes LMC should have remained open. She said she believes the board president was unwisely convinced to close its doors by LMC bankruptcy estate Plan Agent Dawn Ragan.

“I fought closing it tooth and nail — and in many ways I'm still fighting it,” she said. “I always thought doing that was the most ridiculous thing I'd ever heard. We had always been in debt. It never should have closed.”

McCall — who is currently involved in two other lawsuits alluding LMC fiscal mismanagement —  responded to a Tuesday interview request from a Jacksonville Daily Progress reporter with, “I cannot comment on pending legal issues. Thank you.”

Text Only

LOCAL NEWS
LOCAL SPORTS
LIVING
LOCAL MAGAZINE
LOCAL OBITUARIES

AP VIDEO