Ellington

The legal collapse of a Mississippi auctioneer could cost the city of Jackson almost a quarter of a million dollars. Durham Auctions, near Brooklyn Miss., wrote two bad checks to the city totaling about $240,000. The company had a contract to auction vehicles from the city's impound lot since May 2005. That contract expired in May 2008, but the city granted an extension to the company to hold one more auction this year. That auction, held in August, generated $240,000 in revenue that Durham Auctions never paid the city.

"We can confirm that," said Rick Hill, the city's director of administration. "They sent us a couple of bad checks, and we had to approach the (city) council to approve legal action against them last week."

The city filed bad-check charges with the Hinds County district attorney, but the chances of the city collecting on the bad payment is looking slim, according to an unnamed source with the city, since the company filed for bankruptcy this year. Hill said the city is, nevertheless, filing for collection with the bankruptcy court.

Durham Auctions owner Don Durham was out on $500,000 bond in September after sheriff's deputies arrested him for alleged embezzlement. WDAM news, of Hattiesburg, reported that the Louisiana and Mississippi auction boards are investigating Durham, who owes the city of Kenner, La., more than $500,000 from a June auction and owes the federal government $300,000 from the auction of some FEMA trailers this year.

Previous Comments

ID

142440

Comment

The responsibility of this huge financial loss to the taxpayer of the City of Jackson as with the lost of the Federal Grants for the City of Jackson falls on the shoulders of several of your City Council members and it's Mayor. Their ego's are adding to the destruction of the City of Jackson. People should open their eyes and see that several of the City Council members are directly involved in trying to discredit or block positive plans for the City of Jackson maybe becaused their friends did not get the contract, it wasn't their ideal or maybe because they want to get revenge against someone they don't like. Who know? the fact remains that they should paid the losses since they extend the contract and did not check and see if this company was solvent. they always want to hold someone else responsible then they should be held responsible for the lost funds.

Author

Hot Sauce

Date

2008-12-22T12:31:18-06:00

ID

142441

Comment

I am not sure why the city would think it's a better idea to send cars to Hattiesburg when there are Auctions here. You would think they would choose to do business with businesses in the city. I used to deal with the City auction quite a bit. The captain in charge once told me they were considering online auctions similar to Ebay. I wonder what happened to that plan.

Author

WMartin

Date

2008-12-22T13:10:13-06:00