John Rogers, the former owner of sports memorabilia and photo archives worth millions of dollars, was found Friday in default of loans totaling $14.5 million from First Arkansas Bank & Trust of Jacksonville.
"It was extreme," said Rogers' attorney, Brett Myers with Fox Rothchild LLP of Dallas.
It was thought Rogers borrowed the money for various business ventures as he acquired the trove of sports and historical photos and other items that he collected until his legal troubles began earlier this year. His home was raided, and more than $1 million worth of items were confiscated by the FBI in January.
Rogers was not present at the brief morning hearing that led to the judgment, nor did he attend a hearing that afternoon intended to assign a receiver for the materials that are at the heart of several complicated civil lawsuits involving Rogers.
Rogers of North Little Rock took out loans from the Jacksonville bank for his businesses beginning in 2011, providing an unconditional guarantee for the notes. That first transaction was a revolving line of credit and a loan totaling $10 million.
Rogers' ex-wife, Angelica Rogers, who has owned the collection and archive since their recent divorce, was at the afternoon hearing on receivership. Myers said Angelica Rogers didn't object to the appointment of a receiver but wished to challenge the bank's choice of one.
Roger Rowe of the Little Rock firm Lax, Vaughan, Fortson, Jones & Rowe P.A., representing First Arkansas, suggested Michael McAfee be the receiver. Myers instead recommended consultant Robert Halpern of Fort Lauderdale, Fla.
"It's our position that he is not the right receiver for this particular type of business," Myers said of McAfee.
Halpern sent a letter Thursday touting his company's acumen for the management and sale of assets for major financial institutions.
"Just from what I've been able to uncover so far, Mr. McAfee doesn't have the industry experience as it relates to this type of industry," Myers said. "McAfee would have to be brought up to speed, and this guy, [Halpern] is ready to go."
McAfee's fees also are double what Halpern would charge. McAfee is asking 5 percent of net distribution to the creditors in the case. He would before paid before anybody else.
Myers said he believes the materials John Rogers amassed are being stored in a central Arkansas warehouse.
"I think all the parties are concerned about making sure their interests are properly accounted for," Myers said. "That's really what's important in this case -- making sure everybody who has a claim to any of these assets has a voice and forum in which [to] claim those."
Attorneys will try to agree on a receiver in the coming weeks. If they cannot agree, a hearing on the matter is scheduled for Jan. 5 in Pulaski County Circuit Court.
Also this week, the Rogers Photo Archive and others were ordered by the Pulaski County Circuit Court to turn over photos and negatives of President John F. Kennedy. Documentary filmmaker David Hoffman of California, who filed the petition for the order, sold Rogers several collections of photos and footage in 2012. The Kennedy collection is valued at $80,000.
One of the works on film, Hoffman's Making Sense of the Sixties, is a six-part prime-time television series compiled from 1,400 film hours. The series examines era-shaping events of the 1960s, such as the Vietnam War, the assassinations of John F. Kennedy and Martin Luther King, and the moon landing.
On Thursday, Rogers filed suit in Pulaski County Circuit Court against Mark Roberts of San Francisco over several transactions concerning baseball memorabilia. One particular deal, known as the "Chadwick Collection," dates to memorabilia from the 19th and early 20th centuries. At the time the $1.8 million deal was consummated, Rogers provided Roberts with certificates of authenticity for 35 items in the collection, according to Rogers' lawsuit.
Roberts debated whether some items were originals and later worked out a deal for Rogers to buy back some of the items for $700,000. Rogers maintains in his lawsuit that if he had been privy to certain information Roberts obtained from an independent authenticator, he would not have taken the items back. The lawsuit claims fraudulent inducement.
Business on 12/20/2014