Video: DePriest Bankruptcy Discharge Expected Aug. 3

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COLUMBUS, Miss. (WCBI) — A man who was once among the Golden Triangle’s most successful and wealthiest entrepreneurs is now almost $43.6 million in debt.

During a Rule 341 creditors hearing Wednesday morning, Columbus resident Don Depriest told bankruptcy trustee Stephen Livingston Sr. he sank millions into a new company only to lose it to a fire and technology failures. He’s never been able to recover during the last 15 years and a former partner got a $9 million court judgment against him six years ago.

Under questioning from an attorney for the Bank of West Alabama, Depriest said he had no knowledge of three Midwest oil and gas ventures in which his name has come up. The questions arose out of fear DePriest, who has connections around the world, might have hidden investments.

He also said he doesn’t expect to benefit from a lawsuit his wife has in Illinois over oil leases.

Depriest lives in a historic home owned by his wife and gets about $2,317 a month in Social Security. He also gets about $20,000 a year in federal Conservation Reserve payments on what is described as “prime real estate” he owned in Clay County but that’s likely to go away because Lucious Burch investments has bought the property from the bank.

Observers say if he is discharged from his debts as expected Aug. 3 and his assets liquidated through Chapter 7, only the mortgage holders will likely get any money. Livingston will revisit the case July 1 if necessary before making a final decision.

A number of friends who loaned him money likely will get nothing. Among the $43,613,000 in debts is $180,000 — $3,000 a month — in alimony to his first wife.

One observer told WCBI following today’s hearing that, “A lot of people are left hurting in this.”

Among Lownde4s County residents owed money by DePriest for loans are Wil Colom, $500,000; Justin Shelton, $299,399; David Shelton, $125,000; Roger Larson, $150,000; Bart Wise, $141,322; Elton Thomas Jr., $250,000; and Timothy Butler,$500,000.

Several friends of Depriest’s describe him as “one of the smartest men” they’ve ever met.

“You have to remember, Don could come up with an idea tomorrow and be worth millions again by this time next year,” said one associate who asked for anonymity. “He just had that one string of bad luck but he’s getting a new start. Bankruptcy not as bad as everyone thinks.”

They noted that over the years his second wife, Sandra, has accumulated property and investments in her name, separate from Don DePriest. She’s not had anything to do with the failed investments, keeping them clear of the other’s finances and creditors.

He was forced into bankruptcy last September when four creditors filed papers trying to collect more than $13 million in court judgments. DePriest initially fought the filings but has since cooperated, claiming $4.1 million in assets against 10 times as many debts.

But Livingston noted during Wednesday’s hearing that almost all DePriest’s assets are “heavily mortgaged with no equity.”

Chapter 7 bankruptcy requires a debtor to liquidate assets toward satisfying outstanding debt.

Livingston will determine what of DePriest’s property is exempt from liquidation. Secured creditors will have an opportunity to claim their collateral on defaulted debt and the equity from what’s left will be awarded to others.

DePriest owned Charisma Communications, an early cellular phone service company in the 1980s and sold it for $100 million in 1986. He’s been an investor and entrepreneur since then.

DePriest long has been a major Republican campaign donor and President George W. Bush appointed him to the Tennessee Valley Authority board in 2005. He resigned in 2009 after being accused by business associate and account Oliver Phillips Jr. of lying to investors and not repaying debt. That’s the same year Phillips got the $9.1 million judgment.