JACKSON — Mississippi Attorney General Jim Hood has asked a federal court to turn over grand jury records from the U.S. government’s investigation into the now-defunct beef plant as he prepares for a civil lawsuit.
The beef plant opened in Oakland in August 2004 but lasted less than three months. In January 2005, the operator defaulted on a $21-million loan to Community Bank and the project went into foreclosure.
In June 2005, the state paid the bank on its guaranteed $34 million.
Hood tells the Northeast Mississippi Daily Journal he’s suing the company and the executives on behalf of the Mississippi Land Water Resources Board and the Mississippi Development Authority.
The civil case is set for trial beginning Dec. 5 in Hinds County.
Defendants are Facility Construction Management Group Inc. and he company’s principals, Robert L. Moultrie, Nixon E. Cawood and Charles K Morehead, all of whom pleaded guilty to criminal charges in 2010.
The lawsuit claims the Facility Group defendants committed “improper and/or criminal” acts related to the construction of the beef plant in Yalobusha County, as well as in procuring contracts to perform services for the beef plant project.
The state complaint was filed Jan. 17, 2007, and amended June 2, 2010. The federal indictment came Feb. 13, 2008.
All three executives served prison time for their guilty pleas.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info