Former PeopLoungers President Pleads Guilty in Fraud Case

April 15, 2010  by in UnCategorized   

By Home Furnishings Business in on April 16, 2010 James C. "Jimmy" Green Jr., former president of PeopLoungers, pleaded guilty Thursday to bank fraud, mail fraud and money laundering.

According to The Northeast Mississippi Daily Journal, Green misrepresented personal financial information to local banks to get personal loans. He faces a sentence of up to 80 years imprisonment and $2.5 million in fines.

In 2006, Green was accused of using a $300,000 loan from one bank to pay other banks interest on loans and to pay off one loan. All of the charges were for personal dealings and were not related to PeopLoungers' business.

Green€™s sentence date will not be set until a report is complete from the U.S. Probation Service. It usually takes about two months.

According to the report, Green has been ordered to maintain or seek a job, restrict travel to north Mississippi, refrain from excessive use of alcohol and participate in a substance abuse therapy and counseling.

Nettleton-based Peoploungers, which made upholstered furniture, was started in Tupelo in 1979 and filed for Chapter 11 bankruptcy protection in May 2007.

Green said at the time that the bankruptcy filing was necessary because of pricing pressures and because competition from Asia, particularly China, had cut into its business. In its Chapter 11 filing, the company said it owed its top 20 creditors about $5.7 million. It also said sales dropped from about $94 million in 2003 to an estimated $50 million.

PeopLoungers received €œdebtor in possession€ financing to continue operations. The company closed in 2008.