First American Bank has accused developer W. Patrick McCuan of fraudulently transferring his interest in 10 commercial enterprises to a trust fund, or jointly to himself and his wife.
The allegation, detailed in a lawsuit filed Nov. 19 in county circuit court, is McCuan'slatest entanglement over development loans.
The bank is suing McCuan to collect $7.3 million on loans to his development company, McCuan Development Group, and a partnership called MJF Associates. The lawsuit says McCuan gave personal guarantees on the loans.
Court records say the bank issued MJF a construction loan in 1987, and that the company defaulted on it in March. As of this month, the loan had an unpaid balance of $4.5 million in principaland interest, court records say.
The records also describe a McCuan Development Group loan for $3 million that went into default in May with an unpaid balance of $2.5 million in principal and interest.
In addition to obtaining a routine court judgment against McCuan for more than $7.4 million Nov. 20, First American sued him, his wife, Jill, and the McCuan Irrevocable Trust for access to interest that was transferred from McCuan's development entities.
McCuan did not return several phone calls last week.
Richard M. Kremen, a lawyer representing First American, refused to comment on the case.
Among other things, the suit alleges that McCuan transferred the interest "with actual intent to hinder, delay or defraud his creditors."
Of the 10 enterprises McCuan is alleged to have transferred his interestfrom, two are partnerships -- EBC/MDG Associates and Clark/MDC Associates -- which, respectively, own the Equitable Bank Center and the Clark Building.
Both of the prominent Town Center buildings are in bankruptcy and are awaiting U.S. Bankruptcy Court approval of a reorganization proposal. The proposal would essentially transfer ownershipof the buildings to Mercantile Safe Deposit and Trust Co., which is carrying more than $11 million worth of debt on the two structures.
The eight other entities involved are:
* Security-MDC Associates, with more than a quarter of its
interest going to the McCuan Irrevocable Trust in December 1989.
* Dobbin Square Limited Partnership, with 40 percent of its interest going to the trust in April 1990.
* Cacapon Associates Limited Partnership, with 99 percent of its interest going to the trust in April 1990, along with all rights to receive payments on a $98,000 loan issued to Cacapon.
* Broventure Land and Cattle Co., with rights to receive payments worth $442,686 from a loan to Broventure going to the trust in December 1990.
* McCuan-Menough Associates of Ohio Inc., with 50 percent of McCuan's capital stock interest going to himself and his wife jointly in April 1990.
* K&M Development Corp., with McCuan's entire stock interest going to himself and his wife jointly in 1990.
* McCuan DevelopmentGroup, with McCuan's entire stock interest going to himself and his wife jointly in 1990.
* Uniglobe Travel Center Inc., with "substantially all" of his stock going to himself and his wife jointly in July 1990.