Attorney General's News Release

December 3, 2004

Attorney General Nixon sues Franklin County business for default on expansion loan, failure to create new jobs

Jefferson City, Mo. —Attorney General Jay Nixon has filed suit against the owners of a manufacturing business in Franklin County for failure to repay a $300,000 loan and failing to create 12 jobs as promised.

The suit was filed Friday in Franklin County Circuit Court against David and Jo Anne Reidt of Marthasville; Shawn and Debra Curan of Lake Sherwood; J.B. Brown III and Jennifer Brown of Eureka; and Ronald and Teresa Jones of St. Charles. In August 2003, all eight agreed to guarantee a $300,000 Community Development Block Grant loan from the Missouri Department of Economic Development (DED) for an expansion by Eaglejet Wire and Machine. The conditions of the loan were that it be repaid with interest, and that the company create 12 jobs and retain six existing positions.

The first payment was due in February, but to date, no payments have been made. No new jobs were created.

"Missouri has always been supportive of the small business community, and is willing to work with these enterprises to create new jobs for Missouri citizens," Nixon said. "But we cannot tolerate those who take advantage of the system. This is clearly a case where the business failed to hold up its end of the bargain."

Nixon is seeking repayment of the loan plus interest and penalties, for a total of $345,333.88. He is also asking for reimbursement for attorney's fees, court costs, and other expenses incurred by the state.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818