Century Lumber: Not Open Yet; Alabama Issues Cease And Desist Order

January 6, 2011

A ribbon cutting was held last October for a group of new businesses in Century including Century Lumber and Land with the promise of new jobs. Since that time, there has been little public activity on the part of the company, other than a cease and desist order issued by the Alabama Securities Commission against the company and a company official.

“I feel like it’s going to be a done deal, sooner or later, but I can’t tell you how soon it’s going to be,” Century Mayor Freddie McCall said about Century Lumber and Land, LLC’s plans to renovate a portion of the old Alger-Sullivan Lumber complex that has sat idle for a number of years in order to process railroad cross ties.

Century Lumber and Land unofficially announced a venture with several other companies at a September 2 meeting of the Century Chamber of Commerce. Century Lumber and Land  Manager Jim Craft said at that meeting that the operations would eventually employee 300 to 500 people within a 36 to 42 month period.

The ribbon cutting was first tentatively set for September 18, then was delayed until October 16. Then, company officials delayed the ribbon cutting a third time until October 22, while they worked to finalize financing for their ventures, according to McCall.

A NorthEscambia.com telephone message left on the cell phone of Century Lumber and Land CEO James “Jim” Craft Tuesday seeking comment for this story was not returned. Numerous emails also went unanswered.

NorthEscambia.com has learned that the Alabama Securities Commission has ordered Century Lumber and Land, LLC and James Craft to cease and desist from offering or selling financial securities info, within or from the state of Alabama.

An Alabama resident told the Alabama Securities Commission that a business associate and missionary residing in Tennessee introduced him to an opportunity in which he could make money by investing in a business buying and selling railroad cross ties. The business associate suggested that the man contact Craft and Glenn Lavon Gillman, manager of the Mobile company Universal Wood Products, LLC.

The Alabama investor provided authorities with an email indicating that Gillman told the Tennessee missionary that he and Craft would pay the missionary a commission for soliciting and introducing them to the potential Alabama investor, if the Alabama man made the investment.

After a meeting with Craft and Gillman, the Alabama investor agreed to make the investment and agreed to assist Craft and Gillman with preparing and filing documents to form a limited liability company in Alabama. Craft and Gillman then issued two promissory notes in the name of the Alabama corporation, according to the Alabama Securities Commission, for $140,000 to be used for the purchase and resale of railroad cross ties.

Craft and Gillman later met with two other Alabama residents offering them an opportunity to invest in a railroad cross tie business. Craft and Gillman, according to Alabama officials, told the Alabama investors that they were able to purchase cross ties from lumber yards in South American and sell them to U.S. railroad companies suffering from a shortage of the lumber product. One of the additional Alabama investors later wired $25,000 into the account of Milton Timber as an initial investment in Century Lumber and Land, the first portion of what was to be a $40,000 investment to be completed by the third investor, according to Alabama Securities Commission documents. A $40,000 promissory note was issued, and the Alabama investors paid Century Lumber and Land the $15,000 balance.

Craft, representing Century Lumber and Land and acting as it’s manager, advised one of the Alabama investors in writing that the company was still active and notified him of an attempt to close Milton Timber.

According to the Alabama Securities Commission, Craft and Gillman are not registered as dealers or agents to issue securities (such as promissory notes) in Alabama. In addition, the Commission found that the $140,000 and $40,000 promissory notes were not registered with the state as required by law.

The order does not prevent the Commission from seeking other civil or criminal remedies under the Alabama Securities Act, according to Commission documents.

Pictured top: The October 22, 2010, ribbon cutting for Century Lumber and Land. Pictured top inset: The old Alger-Sullivan Lumber complex in Century. Pictured bottom inset: James “Jim” Craft addresses the Century Chamber of Commerce in September, 2010. NorthEscambia.com file photos, click to enlarge.

Comments

12 Responses to “Century Lumber: Not Open Yet; Alabama Issues Cease And Desist Order”

  1. Tim Allen on May 2nd, 2011 10:08 pm

    By the way people, did you ever think that maybe the SEC is on a Witch Hunt and that maybe Century really needs this company to be successful in getting off the ground? Hang in there and be patient!

  2. Jim W on January 7th, 2011 4:47 pm

    By the way if they ever took the time to read the Securities Exchange Act of 1934 they would be enlighten on the what has to occur before selling and or trying to deal in securities.

  3. Jim W on January 7th, 2011 4:45 pm

    Welcome to the securities and exachnge gentlemen. They were actually dumb enough to not think they had to regeister with the sec. Wow! Hold your wallet they are comming after you and they should. I feel for the people of Century nad the investors. I know the jobs are needed and the investors needed their monies back. Good luck.

  4. Century girl on January 6th, 2011 3:24 pm

    Background Checks will prevent a whole lot of false hopes!

  5. Sandra on January 6th, 2011 10:59 am

    Keep your head up Freddie. Your hard work will pay off in the end.

  6. Thinker on January 6th, 2011 9:49 am

    Century should do research at some successful municipalities on ways and means of getting industry on board. I’m talking impoverished small towns that have reached “best small town” status, or facsimile. Others have been scammed and struggled along this same path. Communicate with them and learn from them.

  7. M on January 6th, 2011 8:58 am

    What a suprise! More crooks in Century

  8. chris on January 6th, 2011 8:32 am

    lets not lose all hope…people

  9. UD Better Belive it on January 6th, 2011 8:15 am

    Missionary ?

  10. David Huie Green on January 6th, 2011 7:03 am

    doesn’t look encouraging

  11. cygie on January 6th, 2011 6:33 am

    Hmmmmmmm. Almost sounds like a Ponzi scheme to me.

  12. Oversight on January 6th, 2011 5:57 am

    This venture sounds like a “bust.” Better luck next time, Century.

Written by William Reynolds · Filed Under News