Conspiracy or Coincidence? Have we got a deal for you Resource Bank tells the Agnews after they've stewed in prison for 2 years

VIRGINIA BEACH (August 16, 2007) - - You know, you go to prison for 2 years for bank fraud. Then when you get out, your poor wife goes to prison for 2 years for bank fraud.

And now the bank - troubled, if not corrupt Resource Bank - wants to settle everything you were just prosecuted and served time for, by wiping out everything they said you defrauded them out of?

Whadda deal?

If what the bank has offered were to happen and be approved by the federal judge, everything Agnew were convicted of would be wiped out. Wiped out after each spent 2 years in prison? Whadda deal? And if they will just sign the bank's release the bank will give them about $5 MILLION in illegally confiscated assets and debt relief.

How can that be? How can it logically wash? Is this one of the mysteries of the universe? Or a bank in deep doo doo trying to save its ass?

That's what Mike and Barbara Agnew want to know.

Here's the best explanation. The Agnews owned AGM a concrete contracting company. They owned equipment. They had financing and leased equipment from United Leasing out of Richmond. It was all worth a few million dollars.

AGM encountered financial difficulties in 1999 and on Aug. 5, Resource Bank agreed to help resolve the problems. The bank immediately reneged on the deal as soon as the Agnews and their representatives left the room. Without prior warning, the next day, Aug. 6, 1999, Resource shut the doors of AGM for good.

On Saturday, Aug. 7, 1999 , bank officials swarmed the AGM offices and confiscated everything down to the paper clips - including all records - without subpoena - and carted it all off to leave unsecured in the bank's halls and offices. (The FBI took custody of it 3 months later after documents had been added and documents had been stolen, and the files had been rifled by unknown number of people. It was this contaminated evidence that helped convict the Agnews).

A list of documents referenced in this story

What the bank didn't do was secure and protect the millions of dollars in equipment from theft on the various job sites. What equipment the bank was able to find later, it confiscated and illegally gave it to a third party (United Leasing Corp. - ULC) to dispose of in order to settle a claim with that company.

Based on what they say was ineffective counsel, contaminated, trumped up evidence, dubious relationships between FBI agents who made a criminal case out of what Resource was going to deal with civilly, a judge in conflict of interest because of a multimillion dollar business deal with individuals allegedly harmed by the Agnew's fraud, they were convicted after a 7-day trial without a jury and sentenced to go to prison.

Story Summary: Conspiracy or Coincidence? Misscarriage of Justice

The Agnews married in 1986 and started a concrete contracting company, AGM. It bid on contracts and Armada Hoffler became one of its biggest clients. It originally used a MD company for financing through a factoring arrangement whereby the bank would 'buy' contracts for completed work AGM did.

In 1995, Virginia Beach-based Resource Bank offered AGM a better deal (Cash Flow Maximizer - CFM - plan) - it would buy up to the total amount of contracts when AGM obtained them, the work did not have to be completed.

In 1999, AGM had grown too fast. Developed financial problems. Bank examiners discovered the CFM plan and told Resource it was illegal. Resource changed the rules on AGM without telling it, creating more financial problems for AGM.

In July 1999, Armada Hoffler failed to pay AGM two payments for work it was doing on the Renissance Hotel in Portsmouth and Aug. 5, Resource agreed to a financial arrangement to keep AGM operating, but reneged on the deal within minutes of the Agnew's lawyer's departure from the meeting. By Saturday, Aug. 7, the bank had closed AGM, confiscated all records, and collateral, but left all equipment in the field on jobs unsecured. Mike says he could have obtained alternative financing on Aug. 2, had he known the action Resource took on Aug. 6 & 7.

Ten days later the FBI voluntarily entered the case and offered to investigate. The FBI agent refused to answer questions about her previous relationship with a criminal investigation of Armada Hoffler in Chesapeake and her relationships with bank employees and officials. A 2nd FBI agent got loans totaling about $200,000 from the bank, some while investigating the Agnew case. The FBI says after an investigation, 'it found nothing wrong.' But it refuses to answer specific questions about behavior, sloppy work, conflicts and relationships with other players.

Evidence was mishandled, bank and other witnesses lied on the witness stand, the judge had been in business with Dan Hoffler and A. Russell Kirk, president of Armada Hoffler, a member of the bank's board, and 3rd largest stockholder in the bank, and the Agnews were convicted of 11 counts of bank fraud and 3 other felonies after a 7-day bench trial.

Judge Friedman called theirs the 'most benign case' he'd ever seen, but convicted them never the less and sentenced them to 2 years in prison with 5 years of supervised parole upon release.

The issue remains: Who was responsible for this miscarriage of justice? The FBI? It wasn't the bank. The bank was willing to settle the entire situation civilly. So who? The bank examiners? The bank wanted to make the Agnews scapegoats to solve the CFM, but not criminally. One of Agnews' customers? Somebody "goosed" the FBI. And the FBI ain't talking.

All previous stories are linked at the bottom of this page.

Now ULC had a million dollar claim against Resource Bank for its lost property. Knowing the Agnews were going to prison, Resource chose to confiscate AGM's remaining property and equipment - $7.5 MILLION worth and give it - that's right - give it to ULC, a third party, for disposition through sales.

Resource also illegally took 150,000 shares of Face International stock owned by Mike worth about $1 MILLION and sold it in a lump sum to itself. "This was a criminal act in itself by the bank," Agnew said.

The bank figured, wrongly however, they wouldn't have to deal with the Agnews after they got out of prison, but they did have to settle the claim with United Leasing.

"That was a criminal act," said Mike Agnew. "They took $7.5 MILLION of our assets and gave it to United Leasing to get United to give the bank a release from liability. That was $7.5 MILLION in collateral they gave it away to a third party for disposition. That was illegal."

Of course, Mike and Barbara never give up.

They feel they were wronged in this entire deal and they remain fighting and fighting mad.

Resource is between a rock and a hard place: It wants peace and a settlement of all outstanding claims that resulted from the FBI 'voluntarily' involving itself in a now-botched bank issue.

"What Resource has asked for," said Agnew, "is general mutual release. Resource will release me of any claims it has against me and $4.4 MILLION in debt they claim I owe (but they have never sued me for). I would release the bank of any claims I might have against it.

"They have offered to return my 150,000 shares of Face International. They have offered to join the Assistant United State District Attorney (AUSA) Steve Haynie in asking the U.S. Atty. General to recommend that we be released from (court-ordered) restitution ($1.75 MILLION) and that my debt to it be marked 'Paid in Full.'

"Then the AUSA and Resource will go to Judge Friedman for his approval of the deal, but they can't make me any promises that Friedman will cooperate," Agnew said.

"Between the $4.4 MILLION in alleged debt and my $1 MILLION in stock," Agnew said, "the settlement deal would be worth about $5 MILLION."

If Agnew sues Resource, say for $10 MILLION, for the criminal confiscation and illegal disposition of collateral and wins, the award would amount to $30 MILLION - or triple damages.

What will they do? Mike hasn't given anyone an answer. Barbara? Sitting there in Camp Cupcake Federal Women's Prison in Alderson, WV? She's made a statement, but we can't print it.

Barbara gets out of prison Dec. 31, unless she gets early release for Christmas or other reasons.

In the meantime? The saga continues.

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