Traverse City Record-Eagle


September 29, 2013

Bank charges detailed


The Nielsons contacted Green in 2009 to inform the bank of their inability to meet their loan obligations, according to federal documents. They stopped making payments on all loans in September 2009 while they worked out a deal with Green and Calcutt. The FDIC alleges Jackson also was involved.

Cori Nielson of Generations Management said her company's representatives met with all three men and one other person she declined to name while attempting to renegotiate the loans.

In December 2009, Calcutt, Green, and Jackson gave the Nielson companies a $760,000 loan and released $600,000 in Nielson family investments used to secure one of the loans, documents state. The money was used to bring the loans current and cover future payments.

The Nielsons ran into similar problems the following year and the bank executives released another $690,000 in collateral to bring the loans current and extend loans that were expiring with lower interest payments and other concessions.

The FDIC said Calcutt and the other bank executives provided misleading information to Northwestern's board; failed to obtain updated property appraisals or company financials from the Nielsons; backdated loan documents; withheld the loans from its external auditors, and concealed or denied the existence of extensive documentation related to the loans from regulators.

Northwestern Bank in 2012 reported an $8.5 million loss on the loans and to date more than $27 million from those loans remains uncollected.

Cori Nielson said in 2011 Calcutt and the other bank executives began to talk openly with them about "doing certain things" so the government wouldn't know what was going on.

"I don't know banking law ... but when you start talking about hiding things from the federal government, you know that's not right and we refused," she said. "That's when everything blew up."

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