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Case 2:10-cv-00285-KS -MTP Document 1 Filed 12/03/10 Page 1 of 35
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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF MISSISSIPPI I DEC
0s 2010l
l * " ...- .,..
HATTIESBURG DIVISION .r f 1.4r i ,.r . .. lr
TRAVELERS CASUALTY AND SURETY

COMPANY OF AMERICA PLAINTIF'F
V. CAUSENO.
SPENCERCOPELAND, NAN COPELAND,

SHERRY FRAZIER, MARIA J. DURHAM
d/b/a SOUTH LAMAR TRUCK & TRAILER SALES.
JOHN DOES I _ 5. AND JANE DOES 1 _ 5 DEFENDANTS
COMPLAINT
(Jury Trial Requested)
COMES NOW TravelersCasmlty and Surety Companyof America ("II4IreleE) and
files this ComplaintagainstSpencerCopeland,Nan Copeland,SherryFrazier,Maria J. Durham
d,&/aSouthLamarTruck & Trailer Sales,JohnDoes I - 5, and JaneRoes I - 5 (collectively,

"Defendants").
I, INTRODUCTION
1. This case revolves around the plundering of an establishedMississippi
constructioncompany,C.E. FrazierConstructionCompany,Inc. ("I&Ziq.-eqnstructisg"). It
exposesthe efforts of certain extendedfamily membersto steal and convert assetsof Frazier
Constructionand to depriveTravelersofits rights in thoseassets,andto then funnelthe stolen
- includingthatof a shamconstructioncompany-
moniesin andout of numerousbankaccounts
to concealandlaunderthosemonies.
2. Defendantscommittedanddeployedtheir fraudulentactionswhile Travelerswas
providinghundredsof thousands to help it meetits obligations

of dollarsto FrazierConstruction
7
and completethe projectsthat Travelershad bonded. When FrazierConstructioncollapsed,
Travelersincurredmore than six million dollarsin losses. After monthsof digging,dozensof
depositionsand other efforts, Travelersdiscovereda stashof moniesstolenfrom

subpoenas,
FrazierConstructionandworse- a civil conspiracyto convert,conceal,launder,andspendthose
monies. Travelersseeksto recoverthosemoniesand to recoverfrom the Defendantsthat
participatedin andbenefittedfrom the wrongful andunlawfrrlactionssetforth herein.
II. THE PARTIES
3. Travelersis a Connecticutcorporationwith its principalplaceofbusinesslocated
at OneTower Square,Hartford,Connecticut.For diversityofjurisdiction purposes,Travelersis
deemedto be a citizenof the Stateof Connecticut.
4. SpencerCopelandis an adultresidentcitizenof the Stateof Mississippiand may
be servedwith SummonsandComplaintat 734OakmontParkway,Ridgeland,Mississippi.For
diversity ofjurisdiction purposes,SpencerCopelandis deemedto be a citizen ofthe Stateof
Mississippi.
5. Nan Copelandis an adult residentcitizenof the Stateof Mississippiand may be
servedwith Summonsand Complaintat 108 SummersLane, fudgeland,Mississippi' For
diversity of jurisdiction purposes,Nan Copelandis deemedto be a citizen of the State of
Mississippi.
6. SherryFrazieris an adult residentcitizen of the Stateof Florida and may be
servedwith SummonsandComplaintat777 HarborBoulevard,Destin,Florida. For diversityof
jurisdictionpulposes,ShenyFrazieris deemedto be a citizenofthe StateofFlorida.
7. Maria J. Durham d/b/a South Lamar Truck & Trailer Salesis an adult resident
citizenof the Stateof Mississippiandmay be servedwith Summonsand Complaintat 824 Old
Highway 11, Lumberton,Mississippi. For diversityof jurisdictionpurposes,Maria J. Durham

d/b/aSouthLamarTruck & TrailerSalesis deemedto be a cilizenof the Stateof Mississippi.
L JohnDoes I - 5 andJaneRoesI - 5 areindividualswho knew about,participated
in andconspiredto commitor aid in the commissionof the wrongfulactssetforth herein. The
identity of theseindividualsis cunently unknown,but during the courseof discoveryit is
anticipatedthat their identitywill becomeknown,at which time Travelersreservesthe right to
amendthis Complaintto addtheseindividualsasa partydefendant.
ilI. JURISDICTION AND VENUE
9. This Courthassubjectmatterjurisdictionof this litigationpursuantto 28 U.S.C.$
Influenceand Com:pt
1331becausePlaintiffs causeof action arisesunderthe Racketeering
OrganizationsAct (RICO), 18 U.S.C. gg 1961et. seq. This Court further has subjectmatter
jurisdiction of this litigation pursuantto 28 U.S.C. $ 1332 as diversity of citizenship is
andthe amountin controversyexceeds$75,000.This Courtfurtherhassupplemental

established
jurisdictionoverthe statelaw claimsasserted

hereinpursuantto 28 U.S.C.$ 1367.
10. This Court haspersonaljurisdictionover all defendants

in this litigation as they
reside and/or conduct businessin the State of Mississippi. Additionally, the defendants
tortuousactsin wholeor in partin the Stateof Mississippi.

committedthe enumerated
11. Venueis properin this Courtpursuant part

to 28 U.S.C.$1391(b)asa substantial
of the eventsor omissionsgiving rise to Travelers'claim occurredin the SouthemDistrict of
Mississippi.
IV. FACTUALALLEGATIONS
12. From2002through2007,Travelersprovideda numberofsurety bondsto Frazier
Construction. A surety bond is a three-partyinstrumentbetweena sur€ty, a contractor,and a
performthe contractwith the projectowner,

projectowner. Ifthe contractorcannotsuccessfully
the suretyassumes that the projectis completedand

andensures
the contractor'sresponsibilities
thatcertainjob costsarepaid.
13. Frazier Constructionwas owned and operatedby C.E. Frazier, Jr. ('C.E.
Frazier"),Austin Frazier,andClaiborneFrazier(collectively,the "Fraziers").C.E.Frazieris the
fatherof Austin andClaibomeFrazier.
14. To induce Travelersto issue the surety bonds,Frazier Constructionand the
Fraziersexecutedto Travelersa GeneralAgreementof Indemnity(the"IndemnityAgreement"),
a copy of which is attachedheretoasExhibit"A."
15. Pursuantto the Indemnity Agreement,Frazier Constructionand the Fraziers
that Travelersincurredunderthe surety

agreedto indemnifyTravelersibr any lossesor expenses
bonds. To securethis obligation,FrazierConstructionand the FraziersgrantedTravelersa
security interest in all of their personalproperty (including Frazier Construction'sheavy
equipment). Travelersperfectedthis securityinterestby filing thosecertainUCC-I financing
statements of State,copiesattachedheretoasExhibit "8."

with the MississippiSemetary
16. In late 2007, Travelersreceivedan unusuallylarge numberof paymentclaims
and suppliersunderthe suretybondsissuedto FrazierConstruction.The

from subcontractors
FraziersassuredTravelersthat the claimswerethe resultof short-termcash-flowproblemsand
payroll,overhead,and other
requestedthat TravelersprovidefinancingofFrazier Construction's
paymentobligationsso it couldcompletethe bondedprojects.
17. Austin FrazierrepeatedlyassuredTravelersthat he would upholdhis obligations
and that Frazier Constructionwould completethe bondedprojectsin a cost efficient and
responsiblemanner. SeeDecember11,2007e-mailfrom Austin Frazierto Travelers("Bruce,I
havethoughtlong and hardaboutwherewe standwith respectto [Travelers].. . , We want to

give you and your organizationwhat you want and to make [Travelers]whole at the end of the
day. . . . I feel that I candefinitelyfinish thesejobs the mostcosteftcient way possiblewith the
lease[sic] exposureto the bondingcompany.");seealsoDecember12,2007e-mailfrom Austin
Frazierto Travelers("I would like to havethe opportunityto againlay out the reasonsthat I want
to finish all my projects. . . . The Suretyneedsme to help get all additionalmoniesowed on
andI am preparedto
thesejobs fight....I havePrideinwhatldo. Iknowthisisrealirrelevant
in your mind but it meansa lot to me to finish my obligationsthat I currentlyhave."),copies
attachedheretoasExhibit "C."
18. Earlierthat year,Austin Frazier,ClaibomeFrazier,and C.E. Frazierhad also e-
to Travelersshowingthat they continuedto

mailed and/orfaxedpersonalfinancialstatements
own millions of dollarsin assets.
19. and their financial recotdsoTravelers

Based on the Fraziers' representations
agreedto provideshort-termfundingfor FrazierConstruction'soperations.In additionto the
and suppliersthat FrazierConstruction

millions of dollarsthat Travelerspaid to subcontractors
had failed to pay on bondedjobs, from December2007 to July 2008, Travelersincurred
payroll,overhead,andotherpayment
approximately$350,000in fundingFrazierConstruction's
obligationsthat Travelersotherwisewould not haveincurred.
20. In 2008,FrazierConstructioncollapsed.It was in completefinancialshambles.
The true financialconditionof FrazierConstructionwas concealedby the submissionof false
and fabricatedfinancial statementsandrecordsto Travelers.
21. In orderto protectits interests,Travelerswas forcedto take-overand complete
jobs. To date,Travelershaspaid over $6 million in claimsand

severalof FrazierConstruction's
underthe suretybondsissuedto FrazierConstruction.

expenses
22. While TravelerswashelpingFrazierConstructionand its principalsby providing
Austin Frazier and Claiborne

hundredsof thousandsof dollars in financingand assistance,
Frazierwith the aidingandabettingof the Defendants

weresecretlyat work.
23. On the eve of Frazier Construction'simplosion,Austin Frazier and his step-
brother, SpencerCopeland,siphoned-offover a quarter of a million dollars of Frazier
Construction'sassetsusingbankaccountsat numerousfinancialinstifutionsanda shellcompany
createdto concealandlaunderthemoniesandtheir actions.
24. For example,Austin Frazier,ClaibomeFrazier,and SpencerCopelandmoved
FrazierConstruction'sheavy equipmentto their hunting camp in Belzoni, Mississippi,in an
attemptto concealits locationfrom Travelers.
25. Austin FrazierandSpencerCopelandthensoldsomeof this equipmentthrougha
businessnamed South Lamar Truck & Trailer Sales,located in Hattiesburg,,Mississippi.
Travelers,which hada lien on the equipment,wasnot notifiedof the saleanddid not receivethe
the proceeds(nearly$50,000)
proceedsfrom the sale. Instead,in an act oftheft andconversion,
were depositedinto SpencerCopeland'spersonalbank accountat RegionsBank (accountno.
x8251).
26. On informationand belief, Maria J. Durhamd/bia SouthLamarTruck & Trailer
Salesknew (or actedwith deliberateindifference)thatthe heavyequipmentshesoldon behalfof
FrazierConstruction,Austin Frazierand/orSpencerCopelandwas eitherstolenor subjectto a
to the fair marketvalue

lien asthe proceedsrealizedfrom the saleweregrosslydisproportionate
of the heavy equipmentand/orbasedon the methodby which the heavyequipmentwas sold.
Additionally, in responseto Travelers'subpoenain Austin Frazier'sbankruptcycase,l itt an
I Austin Frazierand ClaiborneFrazierfiled Chapter7 bankruptcyin an attemptto dischargemillions of

dollarsof indebtednessowed to Travelersand other creditors. Travelersfiled an adversaryproceedingin their
apparentfurtheranceofthe civil conspiracyandan attemptto fraudulentlyconcealtheir actions,
Maria Durhamstatedunderoath "[a]fter diligent search,I find no apparenttransactionin our
attachedheretoas Exhibit "D."

files pertainingto this matter." SeeResponseto Subpoena,
Travelers.however.has sincediscoveredsix checksfrom SouthLamarTruck & Trailer Sales
totaling$57,500payableto eitherC.E. FrazierConstruction

or SpencerCopeland.SeeRedacted
Checks,attachedheretoasExhibit "E." MariaDurhamsignedthreeof the checks.Seeid.
27. Despitehis sworn testimonyin his bankruptcycaseconfirmingthat he did not
owrr any of the heavy equipmentstoredat the hunting campand that he was not attemptingto
sell it, ClaibomeFrazier sold a TH-63 Loaderto a local Belzoni farmer for $13,000.2 See
copiesattachedheretoasExhibit"F." While the $10,000

RedactedChecksand SaleDocuments,
check was made payable to Frazier Construction,Claibome Frazier stole and convertedthe
negotiableinstrumentby endorsingthe checkand he or his wife, SherryFrazier,depositedthe
check into Sherry'sbank account. In fuitheranceof the civil conspiracy,SherryFrazierthen
barsand storesin Mississippiand Destin,

spentsomeor all of the stolenmoniesat restaurants,
Floridaovera periodofdays.
28. Additionally,from December2007to February2008,Austin Frazierand Spencer
Copelandfraudulentlydiverted approximately$275,000in FrazierConstructionchecksand
moniesinto SpencerCopeland'spersonalbankaccountat Regions.For example,they diverted
over $100,000in checkspayableto FrazierConstructioninto SpencerCopelard'spersonalbank
account,includingthe following:
bankruptcycasesobjectingto the dischargeability of the indebtedness owed to Travelersbasedon the Fraziers'

convertingcontact proceedsand submittingfalseand fraudulentfinancialstatements to induceTravelersto issue
the suretybonds. It was duringthe discoveryphaseof theseadversary proceedingsthat Travelersdiscoveredthe
and
fraudandtheft thatthe Fraziersandothershadwillfully, intentionally, perpetrated
maliciously on Travelers.
'The farmerpaid for
the equipmentwith a $10,000checkpayableto FrazierConstructionand a $700
checkpayableto ClaibomeFrazierwith theremainderto bepaidoverthenextfew months.
AMOTINT
PAYOR PAYEE DATE
OF CIIECK
AGC Workers
Co. 2/t/08
FrazierConstruction 1.97
$3,91
Compensation
Fund
SouthLamarTruck&
FrazierConshuctionCo. 1/28108 $5,000.00
Trailer Sales
SouthLamarTruck&
Co.
FrazierConstruction t/28t08 $22,000.00
TrailerSales
PaigeL. Purvis,P.A. Co.

FrazierConstruction t/25108 $27,684.40
AGC Workers
Co.
FrazierConstruction l/r 8/08 $3,877.00
Compensation
Fund
SouthLamarTruck &
Co.
FrazierConstruction U17t08 $2,200.00
Trailer Sales
SouthLamarTruck &
Co.
FrazierConstruction t/16t08 $14,000.00
Trailer Sales
AGC Workers
Compensation
Co.
FrazierConstruction r/r4t08 r .00
$2,31
Fund
Ci$, of Ridgeland Co.

FrazierConstruction t2/r7107 $227.14
City of Ridgeland Co.
FrazierConstruction tzt17t07 s7r.97
City of Ridgeland Co.
FrazierConstruction rztr7t07 s59.74
Metlife Co.
FrazierConstruction r2t13t07 $204.98
AGC Workers l2ll2/07
Co.
FrazierConstruction $16,001.00
Compensation
Fund
Office Depot Co.

FrazierConstruction $100.00
PearlPublicSchool
District Frazier Co. 1Lll6l07
Construction $8,500.001
29. Austin FrazierandSpencerCopelandconvertedthesecheckswhile Travelerswas
frrndingFrazierConstruction'spayroll, overheadand otherpaymentobligations- obligations
t
These monies were conffact proceeds for the bonded Pearl Elementary School job that Frazier
Construction and the Frazierswere obligatedto hold in trust to payjob costs.
that couldhaveand shouldhavebeensatisfiedwith the moniesconvertedby Austin Frazierand
SpencerCopeland.
30. Austin Frazierand SpencerCopelandalsoconvertedover $93,000in checksthat
Frazier Constructionhad written to its employeesand subcontractorsby forging the
anddepositingtheminto SpencerCopeland'spersonalbankaccount.
endorsements
31. Travelersfirndedat least six of thesestolencheckstotaling $37,770. These
checkswere written from a joint bank accountthat Travelersestablishedand firndedwhen it
agreedto finance FrazierConstruction'spaymentobligationsin 2007-2008. Austin Frazier
fraudulentlyinducedTravelersinto signing checksmade payableto one or more specific
subcontractors endorsement
andthenhe and/orSpencerCopelandforgedthe subcontractor's and
depositedthe checksinto SpencerCopeland'spersonalbank account. Austin Frazierand/or
SpencerCopelandthen issueda checkfrom SpencerCopeland'spersonalbank accountto the
for a lesseramount.AustinFrazierandSpencerCopelandpocketedthe difference.

subcontractor
32. Having amassedover $275,000in stolenand launderedmonies,in Januaryof
2008,Austin Frazierand SpencerCopelandcreated"ConstructionTechSolutions,Inc." for the
solepurposeof furtherconcealingandlaunderingthe moniesdepositedinto SpencerCopeland's

"G."
copyattachedheretoasExhibit
personalbankaccount.SeeArticlesof Incorporation,
33. In furtherance on January9, 2008,Spencercopelandopeneda

ofthis conspiracy,
TechSolutions(accountno. x2631).
bankaccountat RegionsBankfor Construction
34. That sameday, he transferred$142,643.58from his personalbank accountinto
TechSolutions.
the newly openedbankaccountfor Construction
35. from his personal

On January22,2008,SpencerCopelandtransferred$24,378.12
TechSolutions.
bankaccountinto the bankaccountfor Construction
36. On February4,2008, SpencerCopelandtransferred$56,266.42from his personal
bankaccountinto the bankaccountfor Construction

TechSolutions.
.Jt. Approximately$20,000in checkspayableto Frazier Constructionwere also
depositedinto the bankaccountfor Construction

TechSolutions.
38. From January2008throughMarch 2009,Austin Frazie\ SpencerCopelandand
otherswithdrewover$300,000dollarsfrom the bankaccountof ConstructionTechSolutionsfor
their own personaluse and enjoyment- includingwithdrawingover $250,000in cash from
ATM's acrossthe country. For example,in July 2008,AustinFrazier,SpencerCopelandand/or
othersmadethe followins withdrawals:
ofitr$ ATM'Wl0*rl{rl
wrrdratrs fts*re Rldod$d F. ftdoohrrd f€Oag}r @ |n0,00
AtM Rdtnc Rldildst'tdBt. Ridgddtd IGC4glt -a66e--- 340.00
o7fiIt {00J0
0trgl aTl vfli#'rd fi€ddt !,# HslborS Fi{lldiltt lrsRFc2lo4il {668 saoro
07m ArX We,A.r|c nalot t-dr Hfltlot I RdSdfl|d ',6Rfczlotr:l f,6oe !OOi0
07,48 rifi;iuru;r*u n$*q GI(s Hstot s Edecd HsFuc2104li 165€
0? I Cbft*e.rd q,ttffi UnivrBityd tl O6od tfit g$g arp0"oo
ffi.09
0?tnt iriiiffieiliiikie,;o;Fli{A aii; rinemo .tr<l*tn *tsFcl|'it80 E'60 ts"m
$tfl1 rin iitriftrci iuflm;A erlr,r at H Ridit ',* r"d,*t {er-9! !{1f !F0 tm,00
0tr{ t orrr Frrolrwca
fiH;sl.r@d tFtt{A olrr
$rlhdrflral nEqgfi@q
ATUtltftdf||tEt HiOi"'* r.|i[g,*rrtt !4Q!!lt'!1S NEE
ATt
A'irtd$rffhdrt d F4donB
||\l
62m OH c$t Jlltadr l*Sllrgt86 [fie ,too,00
sfl't,l :8.00
0?n4 isre*efrlfmhs; Eblt corfoy Jrclilor tlB 8608 ..------- -, 'l{.{ll
o?t1{ iru wilhd.r*rl SnE&€." E dG Sritdffs Ftr" ftdlaHftd ltr TrgB Eo€A
Co,€ G. Ridg|Ed Me ,!60 t1!,00
OTNIF ctrsctcso Prftlr*t6 P€tc8n 3I"re
Chsc*Csd Pmhrse ButrEb lndd w t{dosnt t S ![6S
o?fiA
07Ils Chlc{C€d PushEt* ltlcr[ S ExPsr us 8659 s:*
!d ,BlEMAn i659 tg6-s
0?al6 rffifi ff&*org R6do.it Awr!, 9{*S0
ii;Fn"a courti'*,t ntlirlrtd frsE!r4p-- qe
FU
i* ffi gg- *ru{*wrtl-*miffryru

07tt* ;di ii6,6,r,rc GogFtaI
Aru WlR*'.eNd Co{Ir&y Chrb RLlo.lild uSlElt d
t6al00
67lt$ 16rr*r M$|srffE 6@
r$4"S0
07'tt t$,l,g
97ra1 liri,ririfrc*.ii zs ci'r nr- t: lce'iaisr rcst^'o'ls{t8L4f!191}- G!!L lo3,m
s?dt ATI' $illM tfmt aot csnrnti]P fi't c{.rrs{o N![r orErE LAFqtiF.t (E' 103.s
q7,tr'l Antr WbHrsyrsl80r con sntio- ml Cs'*ro Nnr *hrrs llF$6# *80
r$se go,ta.. $ef T lorr O qqqt LA
NErr orlFt &Ee 57.?8
ot')i AnnfC$U
i*icNd n
FrEhs€ So'tto.t svb !t S* 4.'163?
f#wh*Hffi mom.m" uffi**s*

07"ff A;;{es; €ifirtEhc iignit e.dii' rnae* 00ola06ln5F07 c00.!o
s?lls i00-{a
s7,r3
07n0 Am Vu&rlrd fbdsE RH06lstSff, FdqFbrd F*Fc{s$r

ldlffirEtmls t1*61?'ll
39. In furtheranceof the conspiracyand in orderto fraudulentlyconcealthe stolen
monies,on October1, 2008, SpencerCopelandprocuredtwo cashier'schecksin the sum of
TechSolutions.
$75.000eachthatweredrawnon the bankaccountof Construction
10
40. On that same day, SpencerCopelandopened a personalbank account at
Merchants& FarmersBank (accountno. x3120) and depositedone of the $75,000cashier's
checksinto thataccount(no othermonieswereeverdepositedinto this account).
41. To further concealthe locationof the launderedmonies,SpencerCopelandalso
openeda personalbankaccountat TrustmarkBank (accountno. x1089)anddepositedthe other
$75,000cashier'scheckinto thataccount.
42. SpencerCopelandthentransferred$45,000to Austin Frazierfrom this Trustmark
account:
AMOUNT OF
PAYOR PAYEE DATN, CIIECK
SpencerCopeland Austin Frazier tvt0/09 $6,000
SpencerCopeland AustinFrazier r|rr/09 s4,000

SpencerCopeland Austin Frazier tt/16t09 $4,000
SpencerCopeland Austin Frazier tul7t09 $6,000
SpencerCopeland Austin Frazier tl/20/09 $4,000
SpencerCopeland Austin Frazier tt/23/09 $6,000
SpencerCopeland Austin Frazier tt/27/09 $4,000
SpencerCopeland Austin Frazer tt/30/09 $6,000
SpencerCopeland Austin Frazier 12/15/09 $5,000
43. As Travelers'investigationintensified,on Januaryll, 2010,SpencerCopeland
procuredan "Official Check"in the sumof $76,599.80

thatwasdrawnon his personalaccountat
Merchants& FarmersBank and made payableto his mother,Nan W. Copeland. Spencer
Copelandwrote on the debit transactionform: 'Neededfor MothersHome Renovation." His
mother,Nan Copeland,depositedthe checkinto her personalbank accountat RegionsBank
11
(accountno. x2514). One day later, SpencerCopelandclosedhis accountat Merchants&
FarmersBank.
44. SpencerCopelandalso procuredan "Offrcial Check" in the sum of $10,099.81
that was drawnon his personalaccountat TrustmarkBank, Nan Copelandlikewisedeposited
this checkinto herpersonalaacountat RegionsBank. SpencerCopelandthenclosedhis account
at TrustmarkBank.
45. On the sameday that Nan Copelanddepositedthe $76,599.80check and the
$10,099.81checkfrom SpencerCopelandinto her personalaccountat RegionsBank, shealso
deposited$33,360in cash. Laterthat day,Nan Copelandwired $120,000from her accountat
Regionsto a real estatetrustaccountof Ball, Ball, Matthews& Novak,P.A. at CompassBankin
Birmingham,Alabama. Nan Copelandusedthesemoniesto purchasea U-Stor-It mini-storage
buildingin Macon,Georgia.The propertyis titled to Nan Copeland.Austin Frazierservedas a
witnessto Nan Copeland'ssignatureon theDeedof TrustandPromissoryNote.
46. On March 30, 2009, SpencerCopeland withdrew the remaining monies
($6,539.50)in the bank accountfor ConstructionTech Solutionsand closedthat account.On
dissolved.
December22,2009,ConstructionTechSolutionswasadministratively
47. SpencerCopelandwas deposedin Austin Frazier's bankruptcycase and he
testifiedaboutthe moniesdepositedinto thebankaccountof ConstructionTechSolutions:
a. Isn't it true that these moneys c€Imefrom the

conversionof Travelers'collateral?
A. I invoke my fifth amendmentright.
a. Isn't it truethat you participatedin the conversionof
this collateral?
A. I invokemy frfth amendment
right.
a. hn't it true that you participatedin the transferof
this moneyinto this bankaccount?
12
A. I invokemy fifth amendment

right.
48. SpencerCopelandalsotestifiedaboutthecashier'schecksdrawnon that account:
a. Austin Frazier facilitated and assisted you ln

procuringthis cashier'scheck,correct?
right.
a. And you cashedthis cashier'scheck,did you not?
right.
a. And, in fact,you transfenedthesemoneysto another
shellaccount.Isn't thatcorrect?
a. And thesemoneysalsocamefrom the conversionof
Travelers'[] collateral.Isn't thatcorrect?
A. I invokemy fifth amendment right.
a. A conversionthat bothyou andAustinFrazierknew
of, parlicipatedin, and financially benefittedfrom,
correct?
V. CAUSESOFACTION
First Claim for Relief
Conversion
49. Travelersspecificallyrefersto andreallegeseachofthe precedingand subsequent
allegationsof the Complaintasthoughfully setforth herein.
50. SpencerCopelanddid knowingly,willfully, and intentionallyconvertTravelers'
lien in certaincollateralby surreptitiouslyselling,or causingto be sold, that certainheavy
equipmentownedby FrazierConstructionat SouthLamarTruck and Trailer and by failing to
notify Travelersofthe saleand by failing to remit any proceedsofthe saleto Travelersandby
concealingthe saleproceedsfrom fravelers and by using the proceedsfor his own personal
benefitandfinancialsain.
IJ
51. SpencerCopeland did knowingly, willfully, and intentionally convert the
proceedsfrom the saleof that certainheavyequipmentand otherassetsof FrazierConstruction
on which Travelershad a lien by depositingthoseproceeds,or permittingthemto be deposited,
into his personalbank accountand the bankaccountof ConstructionTech Solutions. Spencer
Copelandusedall or partofthe proceedsfor his own personalbenefitandfinancialgain.
52. SpencerCopelanddid knowingly, willfully, and intentionally convert those
certaincheckspayableto subconffactors that werewritten from thejoint

of FrazierConstruction
andfirndedfor FrazierConstruction.SpencerCopeland
bank accountthat Travelersestablished
into his personalbankaccountandthe

depositedthosechecks,or permittedthemto be deposited,
bankaccountof ConstructionTechSolutions.SpencerCopelandusedall or partof thosemonies
fbr his own personalbenefitandfinancialgain.
53. Nan Copelanddid knowingly,willfully, and intentionallyconvertthe proceeds
from the saleof that certainheavyequipmentandotherassetsof FrazierConstructionon which
Travelershada lien andconvertthosemoniesthat rightfullybelongedto Travelersby depositing
the monies,or permittingthem to be deposited,into her personalbank accountand using the
moniesfor herovin personalbenefitandfinancialgain.
54. SherryFrazierdid knowingly,willfully, and intentionallyconvertthe proceeds
from the saleof that certainheavyequipmentandotherassetsof FrazierConstructionon which
Travelershada lien andconvertthosemoniesthat rightfullybelongedto Travelersby depositing
the monies,or permittingthem to be deposited,into her personalbank accountand using the
moniesfor her own personalbenefitandfinancialgain.
55. Maria J. Durham d,/b/aSouth Lamar Truck & Trailer Salesdid knowingly,
willfully, and intentionallysell certain heavy equipmentof Frazier Constructionon which
t4
Travelershad a lien for a fraction of the fair marketvalue of that equipmentand usedpart of the
proceedsfrom the salefor herown personalbenefitandfinancialgain.
56. As a directandproximateresultof Defendants'malicious,willfrrl, andintentional
actions,Travelershas beenpermanentlydeprivedof, and has lost, hundredsof thousandsof
dollarsof propertyandmoney.
57. Travelersis entitledto an awardof compensatory andattorneys'feesfor

damages
Defendants'conversionof Travelers'propertyandmoney.
SecondClaim for Relief
Unjust Enrichment
58. Travelersspecificallyrefersto andreallegeseachofthe precedingandsubsequent
59. havebeenunjustlyenrichedby wrongfirllyreceivingandusingcertain

Defendants
moniesandpropertyat the expense

anddetrimentof Travelers.
60. Travelersis entitledto an awardof compensatory proximatelycausedby

damages
andattributedto Defendants'uniustenrichment.
Third Claim for Relief
Civil Conspiracy
62. did knowingly,willfully, andintentionallyparticipatein and conspire

Defendants
to commit, or aid in the commissionof, the wrongful and unlawfirl acts identified in the
Complaintfor the purposeof converting,defrauding,and deprivingTravelersof its moneyand
property.
15
63. As a directandproximateresultof Defendants'malicious,willfirl andintentional
actions,Travelershassufferedhundredsofthousandsofdollars in damagesandis entitledto an
awardof compensatory
damages
andattomeys'fees.
64. Defendantsshould be held jointly and severallyliable for all unlawful and
wrongfulactionscommittedin furtherance
of saidconspiracy.
Fourth Claim for Relief
Civil RICO
66. At all timesrelevantto this Complaint,AustinFrazier,ClaiborneFrazier,Spencer
Copeland,and ConstructionTech Solutionswas and is an "association-in-fact"

enterpriseas
definedby l8 U.S.C.$ 1961(4).
67. The enterpriseis engagedin, andits activitiesaffect,interstatecommercethrough
the useof fraudulentinterstatewire transfersandmoneylarurderingactivities affectingnumerous
throughoutthe country.
banks,financialinstitutions,andbusinesses
68. with the enterpriseand actively

Defendantsknowingly and willfully associated
the conductof the enterprise'saffairs,directly and

conducted,participatodin, and perpetrated
activityin violationof l8 U.S.C.$ 1962(c).

indirectly,througha pattemof racketeering
69. Defendantsknowingly and willfully conspiredto violate subsection(c) of 18
U.S.C.$ 1962in violationof 18U.S.C.$ 1962(d).
70. The patternofracketeeringactivity engagedin by Defendantsis relatedas it has
the sameor similar purpose,results,participants,victims and methodsof commission.The
activity was to accomplishthe commongoal of (a) convertingand

puryoseof the racketeering
plunderingthe moniesand assetsof FrazierConstructionand Travelers'rights in thoseassets,

16
(b) concealingandlaunderingthosemoniesandassets,
and(c) spendingthosemoniesandassets
for Defendants'personalbenefitandfinancialgain.
71. activity werethe Fraziersand their extended

The participantsin the racketeering
family members,andthe primaryvictim wasTravelers.Theparticipantsusedthe samemethods
of commission- convertingthe moniesand launderingthem tluoughpersonaland shambank
accounts.
72. havecontinuouslyengagedin this patternofracketeeringactivity over

Defendants
the pastfour years.
73. The patternof racketeeringactivity engagedin by Defendantsconstitutetwo or
morepredicateactsof wire fraud(18 U.S.C.$ 1343),moneylaundering(18 U.S.C.$ 1956),
of stolengoodsandmonies(18 U.S.C.$ 2314),all of which are

and/orinterstatetransportation
"racketeering
activity"asdefinedby 18U.S.C.$ 1961(lXB).
74. Pursuantto 18 U.S.C. $ 1343,one or more of the Defendantsknowingly and
intentionallytransmitted,causedto be transmitted,and,/orconspiredto transmit,the materially
recordsand other documentsidentified abovevia

false and misleadingfinancial statements,
interstatewire transmissionto Travelersfor the purposeof obtainingmoney or property by
meansof falseor fraudulentpretenses, or promises,includingbut not limited to

representations
thefollowins:
a. On or aboutJanuary22,2007,Austin Frazier,ClaibomeFrazierand C'E. Ftazier
to Travelersa
submittedor causedto be submittedvia interstatewire transmission
materially false and fraudulent Financial Statement and Supplementary
Informationfor C.E. FrazierConstructionCompany,Inc. for the Six Months
EndedOctober31, 2006 inducingTravelersto issuea $12,6 million bond for
t7
Frczier Constructionon the MississippiValley State University project and
inducing Travelersto finance Frazier Construction'soverhead,expensesand
certainotherpaymentobligationsfrom December2007to July 2008;
b. On or aboutFebruary26,2007,AustinFrazier,ClaibomeFrazierandC.E.Frazier
to Travelersa
materiallyfalse and fraudulentCompiledStatementof FinancialConditionfor
Austin Frazier as of Januarv31. 2007 inducins Travelersto finance Frazier
Construction'soverhead,"*n.nr* and certainoi*. ourrn"o, obligationsfrom
December2007to July 2008;
c. On or aboutFebruary26,2007, AustinFrazier,ClaiborneFrazierandC.E.Frazier
to Travelersa
of FinancialConditionfor H.
materiallyfalseandfraudulentCompiledStatement
ClaiborneFrazieras of January31,2007 inducingTravelersto financeFrazier
Construction'soverhead,expensesand certainother paymentobligationsfrom
d. On or aboutFebruary26,2007,AustinFrazier,ClaibomeFrazierandC.E.Frazier
to Travelersa
materiallyfalse and fraudulentCompiledStatementof FinancialConditionfor
C.E. Frazier,Jr. as of January31, 2007 inducingTravelersto finance Ftaziet
Construction'soverhead,expensesand certainother paymentobligationsfrom
e. On November26,2007,AustinFrazier submittedvia interstatewire transmission
to Travelers materiallv false and fraudulent financial records of Frazier
18
Construction'spurportedOpenPayablesfor "All Jobs" throughDecember11,
and
overhead,expenses
2007inducingTravelersto financeFrazierConstruction's
certainotherpaymentobligationsfrom December2007ro July 2008;
f. On December10. 2001 and December19.2007. Austin Fraziersubmittedvia
to Travelerscertaine-mailsand a facsimileinducing
interstatewire transmission
Travelersto approveand issue checksto a certain subcontractorthat were
convertedby SpencerCopelandandAustinFrazier;
g. On Decemberll, 2007, AustinFraziersubmittedvia interstatewire transmission
to Travelerscertaine-mailsseekingto induceTravelersinto financingFnziet
Construction'soverhead,expensesand certain other paymentobligationsand
permitting Austin Frazier to complete bonded jobs on behalf of Frazier
Construction;and
h. From December2007 to at least February2008, Austin Frazier submittedor
causedto be submittedvia interstatewire transmissionsto Travelerscertain
and suppliersinducingTravelersto
paymentrequestsfor certainsubcontractors
approve and issue checks to these subcontractorsand suppliers that were
convertedby SpencerCopelandandAustinFnziet.
75. Pursuantto 18 U.S.C. $ 1956,one or more of the Defendantsknowingly and
intentionally conductedcertain financial transactions,in which Defendantsknew that the
the proceedsof some

represented
propertyand/ormoniesinvolvedin the financialtransactions
fbrm of unla'vdulactivity, for the purposeof concealingor disguisingthe nature,location,
source,ownership,or control of the proceedsof suchunlawful activitiesand/orto promoteor
19
carry on suchunlawfulactivities,and/orto avoida transactionreportingrequirementunderstate
or federallaw, includingbut not limitedto the following:
From December2007 to February2008, SpencerCopelandand Austin Frazier
convertedanddepositedover $100,000in checkspayableto FrazierConstruction
into SpencerCopeland'spersonalbank accountat RegionsBank to concealthe
locationandownershipoftheseproceedsfiom Travelers;
b. On December5,2007, SpencerCopelandandAustinFrazierdepositeda checkin
the amountof $ 18,570from FrazierConstructionpayableto "CopelandHauling"
into SpencerCopeland'spersonalbank accountat RegionsBank to concealthe
locationandownershipoftheseill-gottenproceedsfrom Travelers;
c. On December7,2008, SpencerCopelandandAustin Frazierdepositeda checkin
the amount of $6,200 from South Lamar Truck & Trailer Salespayableto
SpencerCopelandfor the sale of that certain heavy equipmentof Frazier
Construction,on which Travelershad a lien, into SpencerCopeland'spersonal
bank accountat RegionsBank to concealthe locationand ownershipof these
proceedsfrom Travelers;
d. On January16,2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $14.000from South Lamar Truck & Trailer Salespayableto
Frazier Constructionfor the sale of that certain heavy equipmentof Frazier
20
e. On January16,2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $2,200from SouthLamarTruck& TrailerSalespayableto Frazier
Constructionfor the saleof that certainheavyequipmentof FrazierConstruction,
on which Travelershad a lien, into SpencerCopeland'spersonalbank accountat
RegionsBank to concealthe location and ownershipof theseproceedsfrom
Travelers;
On January28,2008, SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $22,000from South Lamar Truck & Trailer Salespayableto
Frazier Consffuctionfor the sale of that certain heavy equipmentof Frazier
g
On January28,2008, SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $5,000from SouthLamarTruck& TrailerSalespayableto Frazier
RegionsBank to concealthe locationand ownershipof theseproceedsfrom
Travelers;
h. On January4, 2008,SpencerCopelandand Austin Frazierconverteda checkin
drawnon the joint bank

the amountof $5,250payableto a certainsubcontractor
accountat WachoviaBank fundedby Travelersand depositedthe check into
SpencerCopeland'spersonalbank accountat RegionsBank to concealthe
locationandownershipoftheseproceedsfrom Travelers;
2l
i. On January 9, 2008, Spencer Copeland and Austin Frazier transf'ened
5142,623.50in convertedmonies from SpencerCopeland'spersonal bank
accountat RegionsBank into the bankaccountof ConstructionTech Solutionat
RegionsBank to I'urtherconcealthe locationand ownershipof theseproceeds
fromTravelers;
j . On January 22, 2008, SpencerCopeland and Austin Frczier transf-erred
524,378.12in convertedmoniesfrom SpencerCopeland'spersonalbank account
at RegionsBank into the bank accountof ConstructionTech Solutionto further
concealthe locationandownershipoftheseproceedsfrom Travelers;
k. On January11,2008,SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

the amountof $8,787.50payableto a certainsubcontractor
bankaccountat WachoviaBankfundedby Travelersanddepositedthe checkinto
SpencerCopeland'spersonalbank accountat Regions Bank to concealthe
tocationandownershipoftheseproceeds
from Travelers;
l. On January22,2008, SpencerCopelandandAustin Fnzier convededa checkin
drawn on the joint

locationandownershipoftheseproceeds
from Travelers;
On January25,2008,SpencerCopelandandAustin Frazierconvefleda checkin
drawn on the joint

zz
SpencerCopeland'spersonalbank accountat Regions Bank to concealthe
locationandownershipof theseproceedsfrom Travelers;
On F'ebruary4, 2008, Spencer Copeland and Austin Frazier transferred
556,266.42in convertedmoniesfrom SpencerCopeland'spersonalbankaccount
at RegionsBank into the bankaccountof ConstructionTechSolutionat Regions
Bank to fuither concealthe location and ownershipof theseproceedsfrom
Travelersl
o . On February11,2008,SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

p. From January2008to December22,2009, SpencerCopelandandAustin Ftaziet
depositedover $20,000in convertedcheckspayableto FrazierConstructioninto
the bank accountof ConstructionTechSolutionsat RegionsBank to concealthe
q . On October1, 2008,SpencerCopelandandAustinFrazierprocuredtwo cashier's
checksin the sum of $75,000eachdrawnon the convertedmoniesin the bank
account of ConstructionTech Solutionsto further concealthe location and
ownershipof theseproceedsfrom Travelers;
r. On Octoberl, 2008, SpencerCopelanddepositedone of the $75'000cashiet's
checksinto his personalbank accountat Merchants& FarmersBank to fuither
L)
one ofthe $75,000cashier's

On October1,2008, SpencerCopelanddeposited
checksinto his personalbank accountat TrustmarkBank to further concealthe
On January11',2010,SpencerCopelandprocuredan "Official Check"in the sum
of $76,599.80drau.non the convertedmoniesin his personalbank accountat
Merchants& FarmersBank andpayableto his mother,Nan Copeland,to further
On March 13,2009,SherryFrazierandClaibomeFrazierdepositeda checkin the
amountof $10,000from Fred Crrayto FrazierConstructionfor the sale of that
certainheavyequipmentof FrazierConstruction,on which Travelershad a lien,
into SherryFrazier'spersonalbank accountat TrustmarkBank to concealthe
On April 29,2009,SherryFrazierandClaibomeFrazierdepositeda checkin the
amountof $700from FredGray to ClaibomeFrazierfor the saleof that certain
heavy equipmentof FrazierConstruction,on which Travelershad a lien' into
SherryFrazier'spersonalbankaccountat TrustmarkBankto concealthe location
andownershipoftheseproceedsfrom Travelers;
w. On January12, 2070,Nan Copelanddepositedthe $76,599.80checkdrawn on
convefiedmoniesin SpencerCopeland'spersonalbank accountat Merchants&
FarmersBank into her personalbankaccountat RegionsBank to furtherconceal
the locationandownershipoftheseproceedsfrom Travelers;
checkdrawnon
the $10,099.81
On January12,2010,Nan Copelanddeposited
convertedmoniesin SpencerCopeland'spersonalbank accountat Trustmark
24
Bank into her personalbank accountat RegionsBank to further concealthe
v. On January72,2070,Nan Copelanddeposited$33,360in convertedmoniesinto
her personalbank accountat RegionsBank to further concealthe locationand
ownershipoftheseproceedsfrom Travelers;and
On January72,2010, Nan Copelandtransferred5120,000in convertedmonies
from her personalbankacoountat RegionsBankto a bankaccountfor Ball, Ball,
Matthews& Novak, P.A. at CompassBank in Alabamafor the purposeof
purchasingcertainrealpropertyin Macon,Georgiato furtherconcealthe location
andownershipof thesemoniesfrom Travelers.
76. Pursuantto 18 U.S.C. g 2314, someor all of the Defendantsknowingly and
intentionallytransfenedand/ortransmittedin interstatecommercemoniesand/orotherpropefty
in excessof $5,000knowing that thesemoniesand/orpropertyhad beenstolen,convertedor
takenby fraud,includingbut not limited to the following;
a. On March 14, 2008, Austin Frazier transferredthrough interstatecommerce
$6,703.01in convertedmoniesto AmericanExpressfrom the bank accountfor
ConstructionTechSolutions;
b. On April 25, 2008, Austin Frazier transferredthrough interstatecommerce
$6,794.59in convertedmoniesto AmericanExpressfrom the bank accountfor
ConstructionTechSolutions;
c . On June 26, 2008, Austin Frazier transfenedthrough interstate commerce
55,201.21 in convertedmoniesto AmericanExpressfrom the bank account for
ConstructionTechSolutions:
25
d. From February2008 to March 2009, Austin Frazier, SpencerCopeland,and
Sheny Fraziertransferredthroughinterstatecommerceover $5,000in converted
moniesvia multiple ATM and debit card transactionsin Florida, Mississippi,
Louisiana,Texasandotherstates;and
On Januaty 12, 2010, Nan Copelandtransfenedthrough hterstate commerce
$120,000in convertedmonies from her bank accountat Regions Bank in
Mississippito the bank accountfor Ball, Ball, Matthews& Novak, P.A. at
CompassBankin Alabama.
77. The Defendants knowingly and wilfully conspired with and aided and abetted
one another to conduct and participate in the conduct of the enterprise's affairs, directly and
indirectly, through a pattem of racketeeringactivity by committing one or more of the predicate
asts identified above,including but not limited to the following:
a. Austin FrazierandClaibomeFrazierconspiredwith oneanotherto engagein one
or more of the abovepredicateacts to fraudulentlyinduce Travelersto bond
FrazierConstruction'sprojectsand to financeFrazierConstruction'soverhead,
expensesand paynent obligationstherebypermittingthe enterpriseto convert
contractproceedson bondedjobsandpermittingthe enterpriseto convertFrazier
Constructionmoniesthat otherwisewould have been used to fund overhead,
andotherpaymentobligations;
expenses
b. Austin Frazier, ClaiborneFrazier and SpencerCopelandconspiredwith one
anotherto commit in one or more of the abovepredicateacts to convertthe
heavyequipmentand to convert
proceedsfrom the saleofFrazier Construction's
otherassetsandmoniesof FrazierConstruction;
26
c. Maria J. Durham d/b/a South Lamar Truck & Trailer Sales conspired with and
aided and abetted Austin Frazier and Spencer Copeland in their racketeering
activities by selling Frazier Construction's heavy equipment at a fraction of the
fair market value knowing that the heavy equipmentwas subject to a lien. Maria
J. Durham d/b/a South Lamar Truck & Trailer Sales aided and abeffed Austin
Frazier and SpencerCopelandin their racketeeringactivities by making one ofthe
checks payable to Spencer Copeland and concealing all evidence of the
transactions in response to Travelers subpoena.Maria J. Durham d/b/a South
Lamar lruck & Trailer Salesknowingly benefittedfrom the racketeeringactivity
by sharing in the proceeds from the sale of Frazier Construction's heavy
equipment;arrd
d. Austin Frazier, Claiborne Frazier, Spencer Copeland, Sherry Frazier and Nan
Copeland conspired with one another to engage in one or more of the above
predicate acts to advance a scheme to defraud Travelers by converting,
concealing, laundering, and using the converted monies for their own financial
benefit and gain.
78. To date, none of the defendantshas been convicted for perpetrating any of the
above-allegedpredicate acts. On March 6, 2009, Travelers obtained a $6,405,585.21 Final
Default Judgment against Frazier Construction,Frazier Development,C.E. Frazier, and certain
other Frazier entities arising from and relating to the above-allegedpredicateacts. See Travelers
Casualty and Surety Companyof America v. C.E. Frazier Construction Company,Inc., et. al.,ln
the United StatesDistrict Court for the Northem District of Mississippi, CauseNo. 3:08cv132-
judgment
GFID-DAS. On August 3,2010, Travelersobtaineda $5,000,000non-dischargeability
27
predicateacts. See
againstAustin Frtrzierarising from and relating to the above-alleged
TravelersCasualtyand SuretyCompanyof Americav. AustinFrazier (In re: AustinF'razier),ln
the United StatesBankruptcyCourtfor the SouthernDistrict of Mississippi,AdversaryNo. 09-
00086.
79. employedtheir racketingactivitiesto defraudTravelersandto convert

Defendants
Travelers'moneyandto depriveTravelersof its rights in certainassetsof FrazierConstruction
and the Indemnitors.As a directand proximatecauseof the predicateactsand the patternof
racketeering Travelerssuffereddamageto its businessandproperty.

activity of the Def-endants,
Fifth Claim for Relief
Fraudulenl Conveyance
Mis sissippi'sUniform Fraudulent TransferAct
80. Travelersspecificallyrefersto andreallegeseachofthe precedingand subsequent
81. Defendantsfraudulentlyconveyedand transferredassetsto and from eachother
with the intentto hinder,delayanddefraudTravelers'rightsin andto thoseassets,includingbut
not limitedto the followins:
a. From December 2007 to February 2008, Spencer Copeland and Austin Ftazier
convertedand depositedover $100,000in checks payableto Frazier Construction
into SpencerCopeland's personal bank account at Regions Bank to conceal the
location and ownershipofthese proceedsfrom Travelers;
b. On December5, 2007, SpencerCopelandand Austin Fnziet depositeda check in

"Copeland Hauling"
the amount of $18,570 from Frazier Constructionpayableto
into SpencerCopeland's personalbank account at Regions Bank to conceal the
location and ownershipofthese ill-gotten proceedsfrom Travelers;
28
c. On December7,2008, SpencerCopelandandAustin Frazierdepositeda checkin
the amount of $6,200 from South Lamar Truck & Trailer Salespayableto
SpencerCopelandfor the sale of that certain heavy equipmentof Frazier
d. On January16, 2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amourt of $14,000from South Lamar Truck & Trailer Salespayableto
Frazier Construction for the sale of that certain heavy equipment of Frazier
On January16, 2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $2,200from SouthLamarTruck & TrailerSalespayableto Frazier
on which Travelershad a lien, into SpencerCopeland'spersonalbankaccountat
RegionsBank to concealthe location and ownershipof theseproceedsliom
Travelers;
On January28, 2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $22,000from South Lamar Truck & Trailer Salespayableto
Frazier Constructionfor the sale of that certain heavy equipmentof Frazier
29
On January28,2008,SpencerCopelandandAustin Frazierdepositeda checkin
the amountof $5,000from SouthLamarTruck & TrailerSalespayableto Frazier
RegionsBank to concealthe location and ownershipof theseproceedsfrom
Travelers;
h. Maria J. Durhamd/b/a SouthLamarTruck & Trailer Salesconspiredwith and
aided and abettedAustin Frazier and SpencerCopelandin concealingthe
heavyequipmentby makingone
proceedsfrom the saleof FrazierConstruction's
of the checkspayableto SpencerCopelandand concealingall evidenceof the
in response
transactions to Travelerssubpoena;
On January4, 2008,SpencerCopelandand Austin Frazierconverteda checkin
drawnon the joint bank

the amountof $5,250payableto a certainsubcontractor
accountat WachoviaBank fundedby Travelersand depositedthe check into
locationandownershipoftheseproceeds
from Travelers;
J ' On January 9, 2008, Spencer Copeland and Austin Frcziet transferred
9142,623.50in convertedmonies from SpencerCopeland'spersonal bank
accountat RegionsBank into the bankaccountofConstructionTechSolutionat
RegionsBank to further concealthe location and ownershipof theseproceeds
from Travelers;
30
k. On January 22, 2008, Spencer Copeland and Austin Frazier transferred
$24,378.12in convertedmoniesfrom SpencerCopeland'spersonalbank account
at RegionsBank into the bank accountof ConstructionTech Solutionto further
l . On January11, 2008,SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

On January22,2008, SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

On January25,2008,SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

o . On February 4, 2008, Spencer Copeland and Austin Ftaziet transferred
in convertedmoniesfrom SpencerCopeland'spersonalbank account

556,266.42
at RegionsBank into the bank accountof ConstructionTech Solutionat Regions
-ft
Bank to further concealthe location and ownershipof these proceedsfrom
Travelers;
p. On FebruaryI l, 2008,SpencerCopelandandAustin Frazierconverteda checkin
drawn on the joint

bank accountat WachoviaBank fundedby Travelersanddepositedthe checkinto
q. From January2008to December22,2009, SpencerCopelandandAustin Frazier
depositedover $20,000in convertedcheckspayableto FrazierConstructioninto
the bankaccountof ConstructionTechSolutionsat RegionsBank to concealthe
r. On October1, 2008,SpencerCopelandandAustinFrazierprocuredtwo cashier's
checksin the sum of $75,000eachdrawnon the convertedmoniesin the bank
accountof ConstructionTech Solutionsto further concealthe location and
ovmershipoftheseproceedsfrom Travelers;
S. On Octoberl. 2008, SpencerCopelanddepositedone of the $75,000cashier's
checksinto his personalbank accountat Merchants& FarmersBank to further
one ofthe $75,000cashier's

On October1,2008, SpencerCopelanddeposited
checksinto his personalbank accountat TrustmarkBank to fiirther concealthe
u . On January11,2010,SpencerCopelandprocuredan "Official Check"in the sum
of $76,599.80drawn on the convertedmoniesin his personalbank accountat
)L
Merchants& FarmersBank and payableto his mother,Nan Copeland,to further
a checkin the
v. On March 13,2009,SherryFrazierandClaibomeFrazierdeposited
amountof $10,000from Fred Gray to FrazierConstructionfor the sale of that
certainheavyequipmentof FrazierConstruction,on which Travelershad a lien,
into Sherry Frazier's personalbank accountat TrustrnarkBank to concealthe
On April 29,2009,SherryFrazierand ClaiborneFrazierdepositeda checkin the
amountof $700 from FredGray to ClaibomeFnzier for the saleof that certain
heavy equipmentof FrazierConstruction,on which Travelershad a lien, into
SherryFrazier'spersonalbankaccountat TrustmarkBankto concealthe location
andownershipoftheseproceedsfrom Travelers;
Nan Copelanddepositedthe $76,599.80checkdrawn on

On January12,,2010,,
convertedmoniesin SpencerCopeland'spersonalbank accountat Merchants&
FarmersBank into herpersonalbankaccountat RegionsBank to furtherconceal
the locationandownershipoftheseproceeds
from Travelers;
v. On January12,2010,Nan Copelanddepositedthe $10,099.81checkdrawn on
convertedmoniesin SpencerCopeland'spersonalbank accountat Trustmark
Bank into her personalbank accountat RegionsBank to further concealthe
On January12,2010,Nan Copelanddeposited$33,360in convertedmoniesinto
her personalbank accountat RegionsBank to further concealthe locationand
ownershipoftheseproceedsfrom Travelers;and
JJ
aa. On January12,2010, Nan Copelandtransfened$120,000in convertedmonies
from herpersonalbankaccountat RegionsBankto a bankaccountfor Ball, Ball,
Matthews& Novak, P.A. at CompassBank in Alabamafor the purposeof
purchasingcertainrealpropertyin Macon,Georgiato furtherconcealthe location
andownershipof thesemoniesfrom Travelers.
82. Travelers is entitled to have the above fraudulenttransfers,and all other
tiaudulent transf'ersby Def'endantsof assetsin which Travelershas an interest,avoidedand the
assetsand.iorproceedsfiom the saleofthe assetspaidoverto satisfyTravelers'claims.
VI. PRAYERFORRELIEF
the following relief:

WHEREFORE,PREMISESCONSIDERED,Travelersrequests
O damagesin excessof $75,000exclusiveof interestand costsfor

Compensatory
Defendants'conversionofTravelers'propertyandmoney;
(ii) damagesin excessof $75,000exclusiveof interestand costsfor

Compensatory
Defendants'unjustenrichment;
(iii) That eachDefendantbe held jointly and severallyliable for all wrongful and
unlawful actionscommittedin furtheranceof the civil conspiracyto convert,
defraud,anddepriveTravelersofits moneyandproperty;
(i") Compensatorydamagesfor Defendants'RICO violations in an amountto be
pursuantto l8 U.S.C.$ 1964;

determinedat trial andthe treblingof suchdamages
(v) That eachDefendantbe held jointly and severallyliable for all wrongful and
unlauful actionscommittedin firtheranceof the RICOenterprise;
(vi) Thatthe Defendants'fraudulenttransferof assetsbe avoidedandthe assetsand/or
proceedsbe turnedoveror paidto Travelersto satisfuits claims;
(vii) Attorneys'fees;
34
(viii) andpostjudgmentinterest;
Prejudgment
(i*) Courtcosts;and
(x) Suchotherandfurtherrelief thatTravelersmaybe entitledto underthe premises.
,"rr. rn.,]]Juyof December.20|0.

ly submitted,
Respectful
TRAVELERSCASUALTYAND SURETY
FAMERICA
By:
PAUL M. ELLIS (MB# rozzse)

ITS ATTORNEYS
OF COUNSEL:
Butr-ER,SNow,O'M.qnn,SrpveNs& Cnwxnoa,PLLC
PostOfficeBox 6010
Ridgeland,MS 39158-601
0
(P)(601)e48-s7rr
(F)(601)
e8s-4s00
(E) iack.crawfbrd(4',butlersnow.com
(E) paul.ellis@butlersnow.com
Jackson
5838204v
I
35

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Case 2:10-cv-00285-KS -MTP Document 1 Filed 12/03/10 Page 1 of 35

TRAVELERS CASUALTY AND SURETY

SPENCERCOPELAND, NAN COPELAND,

(Jury Trial Requested)

COMES NOW TravelersCasmlty and Surety Companyof America ("II4IreleE) and

files this ComplaintagainstSpencerCopeland,Nan Copeland,SherryFrazier,Maria J. Durham

d,&/aSouthLamarTruck & Trailer Sales,JohnDoes I - 5, and JaneRoes I - 5 (collectively,

1. This case revolves around the plundering of an establishedMississippi

constructioncompany,C.E. FrazierConstructionCompany,Inc. ("I&Ziq.-eqnstructisg"). It

Constructionand to depriveTravelersofits rights in thoseassets,andto then funnelthe stolen

2. Defendantscommittedanddeployedtheir fraudulentactionswhile Travelerswas

providinghundredsof thousands to help it meetits obligations

and completethe projectsthat Travelershad bonded. When FrazierConstructioncollapsed,

Travelersincurredmore than six million dollarsin losses. After monthsof digging,dozensof

depositionsand other efforts, Travelersdiscovereda stashof moniesstolenfrom

FrazierConstructionandworse- a civil conspiracyto convert,conceal,launder,andspendthose

monies. Travelersseeksto recoverthosemoniesand to recoverfrom the Defendantsthat

participatedin andbenefittedfrom the wrongful andunlawfrrlactionssetforth herein.

II. THE PARTIES

3. Travelersis a Connecticutcorporationwith its principalplaceofbusinesslocated

at OneTower Square,Hartford,Connecticut.For diversityofjurisdiction purposes,Travelersis

deemedto be a citizenof the Stateof Connecticut.

4. SpencerCopelandis an adultresidentcitizenof the Stateof Mississippiand may

be servedwith SummonsandComplaintat 734OakmontParkway,Ridgeland,Mississippi.For

diversity ofjurisdiction purposes,SpencerCopelandis deemedto be a citizen ofthe Stateof

5. Nan Copelandis an adult residentcitizenof the Stateof Mississippiand may be

servedwith Summonsand Complaintat 108 SummersLane, fudgeland,Mississippi' For

diversity of jurisdiction purposes,Nan Copelandis deemedto be a citizen of the State of

6. SherryFrazieris an adult residentcitizen of the Stateof Florida and may be

servedwith SummonsandComplaintat777 HarborBoulevard,Destin,Florida. For diversityof

jurisdictionpulposes,ShenyFrazieris deemedto be a citizenofthe StateofFlorida.

citizenof the Stateof Mississippiandmay be servedwith Summonsand Complaintat 824 Old

Highway 11, Lumberton,Mississippi. For diversityof jurisdictionpurposes,Maria J. Durham

d/b/aSouthLamarTruck & TrailerSalesis deemedto be a cilizenof the Stateof Mississippi.

L JohnDoes I - 5 andJaneRoesI - 5 areindividualswho knew about,participated

in andconspiredto commitor aid in the commissionof the wrongfulactssetforth herein. The

identity of theseindividualsis cunently unknown,but during the courseof discoveryit is

anticipatedthat their identitywill becomeknown,at which time Travelersreservesthe right to

amendthis Complaintto addtheseindividualsasa partydefendant.

ilI. JURISDICTION AND VENUE

9. This Courthassubjectmatterjurisdictionof this litigationpursuantto 28 U.S.C.$

jurisdiction of this litigation pursuantto 28 U.S.C. $ 1332 as diversity of citizenship is

andthe amountin controversyexceeds$75,000.This Courtfurtherhassupplemental

jurisdictionoverthe statelaw claimsasserted

10. This Court haspersonaljurisdictionover all defendants

tortuousactsin wholeor in partin the Stateof Mississippi.

11. Venueis properin this Courtpursuant part

of the eventsor omissionsgiving rise to Travelers'claim occurredin the SouthemDistrict of

12. From2002through2007,Travelersprovideda numberofsurety bondsto Frazier

Construction. A surety bond is a three-partyinstrumentbetweena sur€ty, a contractor,and a

performthe contractwith the projectowner,

the suretyassumes that the projectis completedand

Frazier"),Austin Frazier,andClaiborneFrazier(collectively,the "Fraziers").C.E.Frazieris the

fatherof Austin andClaibomeFrazier.

14. To induce Travelersto issue the surety bonds,Frazier Constructionand the

Fraziersexecutedto Travelersa GeneralAgreementof Indemnity(the"IndemnityAgreement"),

a copy of which is attachedheretoasExhibit"A."