Saturday, October 9, 2010

Joe Killian on Steve Arnold, debt, bankruptcy, fraud, slander, libel, jail and a call to resign

"Steve Arnold, vice chairman of the Guilford County Board of Commissioners, cannot avoid paying more than $1 million to a creditor in a bankruptcy dispute, a judge has ruled.

...U.S. Bankruptcy Judge Thomas W. Waldrep Jr. found that Arnold transferred tracts of land to relatives to avoid creditors after defaulting on loans and agreements. Waldrep said there were “multiple badges of fraud” in the case, in which Arnold admitted under oath to trying to keep assets from creditors.

...As president and sole shareholder in Arcon, Arnold personally guaranteed the company’s debts.

After defaulting on payments...Arnold transferred a number of land parcels to his parents and father-in-law one business day before a judgment for
$1.27 million was entered against him in Guilford County Superior Court...

...Manuel Perkins said “...what really bothers me is he’s robbing my children of their inheritance.”

It is unclear how the order will affect Arnold’s other outstanding debts which, according to bankruptcy documents, exceed $12 million.

Commissioner Paul Gibson...called on Arnold to resign.

“He has been patently dishonest in his dealings, and he shouldn’t hold office,” Gibson said. “The citizens of Guilford County should be able to know that their elected officials are trustworthy and honest people.”

...While dealing with various business problems, he has been sued for slander and libel and even ordered arrested and jailed...

Arnold agreed to pay thousands and turn over documents related to another construction deal."

Joe Killian
Greensboro News & Record

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