Wednesday, August 26, 2009

Steadivest...snakes or snake-bitten?










Has another scam taken place in Jackson? Such a scenario might be the case according to recent U.S. Bankruptcy Court filings in Jackson. Steadivest is a "Family of companies" according to a letter written by its managing member, W. Marshall Wolfe. The family consists of Steadivest Capital, Steadivest Development, Steadivest Lending, Steadivest Properties, Steadivest Resources, and the Steadivest Contrarian Fund (Hereafter the "family" will be referred to as Steadivest.).



Copy of deed of trust






Steadivest advertises on its website expertise in property management, mortgage lending, realtor services, and construction. It promotes its "portfolio services to investors and even offers a "buyback" of properties if necessary:
"SteadiVest’s real estate investment portfolio Program was developed to provide an alternative for investors to achieve exceptional returns in non-owner occupied rental real estate without the challenges of investment property selection and daily management and with all the benefits of portfolio diversification. Your SteadiVest™ portfolio will be professionally selected and managed. Through our SteadiVest™ family of companies, we utilize our proven techniques and experience to select investment properties that will provide a mix of geography, size, current income and appreciation potential. Then we actively manage every aspect of portfolio growth and administration right up to the day you exit your portfolio.

We even offer a guaranteed buy-back* of your SteadiVest™ portfolio properties. Our goal is to build your portfolio value as consistently as possible while minimizing any action from you…and we keep you informed of that value every step of the way through our focused reporting. "

Steadivest even went so far as to produce several slick videos such as this one,



for potential clients, touting investment opportunities in Mississippi. This operation provided an affluent lifestyle for Mr. Wolfe as he purchased the home in the Palisades shown above (The home is currently for listed for sale at $879,900. The deed of trust shows he borrowed $754, 400 from Regions Bank on an ARM at 6.375% for a fixed period of five years.). However, things were apparently not doing as well as claimed by Steadivest. Steadivest, LLC filed for Chapter 11 bankruptcy on March 23, 2009. There were between 100 and 199 creditors according to the petition and assets between one and ten million dollars were listed as well. Liabilities were estimated claimed as being less than ten million dollars. Ridgeland attorney Jeffrey Tyree represented Steadivest in the petition. Copy of petition

Investors lost millions of dollars in Steadivest. The top 20 creditors holding unsecured claims are:

Scott Stevens, Cabot, AR: $996,563
MYSY Rental, Inc, Flowood, MS: $996,563
Bobby Isonhood, Canton, MS: $958,694
Alex Breeland, Jr., Madison, MS: $805,224
Ray Montgomery, Jr., Brandon, MS: $737, 457
Natalie Dautenhaum, Brandon, MS: $328,660
Linda Matthews, Cabot, AR: $274,055
Richard Lacey, Brandon, MS: $268,604
Claude Smith, Brookhaven, MS: $205,115
Barbara Albritton, Jackson, MS: $196,993
Jack & Toni Williams, Brandon, MS: $149,484
Terry Bailey, Canton, MS: $127,560
James R. Donald, Raymond, MS: $116,059
Freda Hudson, Brandon, MS: $114,106
Arthur Warren, Flowood, MS: $109,821
Robert Isonhood, Liberty, MS: $99,656
John D. Smith, Brookhaven, MS: $98,371
Sheila Stone, Vicksburg, MS: $96,619
Alex Breeland, Canton, MS: $88,513
Leila Stone, Vicksburg, MS: $81,943

Total: $6,784,060.
Copy of list
List of all creditors

Although Mr. Wolfe filed for Chapter 11 bankruptcy, several creditors filed a petition with the court to convert the filing to a Chapter 7 bankruptcy. The petition claimed:

"Steadivest is a holding company with various operating subsidiaries as more particularly described on the flow chart attached as Exhibit "A". None of the operating entities have filed for bankruptcy protection; however, the operating subsidiaries all operating under the Steadivest company name as if it is one entity. In addition to the operating subsidiaries identified on the flow chart, the Lacey Group believes that three additional entities, Investline TFS Income Fund, LLC, Steadivest Contrarian Fun I, LLC, and Steadivest Kansas City, LLC are owned and/or affiliated with the Debtor. "

Steadivest claimed in state court it owned these subsidiaries. A cursory glance on the Mississippi Secretary of State's website at the list of companies in which Mr. Wolfe is an officer reveals he had his fingers in many corporate pies:
Jackson Property Liquidators
MTW Investment Financing (dissolved October 16, 2008)
Steadivest Capital (Created November 15, 2006)
Steadivest Development, LLC (Created October 26, 2005)
Tactical Financial Solutions (Created November 15, 2006)
Invision Real Estate and Property Management (Created August 7, 2007)
Steadivest Properties, LLC (Created August 7, 2007)

Steadivest Contrarian Fund is not owned by Marshall Wolfe BUT he was added as manager in corporate documents and SCF has the same address as the other Steadivest companies. It also was created on October 16, 2008, when MTW was dissolved. Steadivest Lending (Mr. Wolfe was an officer) was licensed with the Department of Banking as a mortgage broker but dissolved on December 15, 2008. However, the motion continues:

"Steadivest, through its subsidiaries, solicited individuals to loan money to Steadivest in return for promissory notes which paid above-market interest rates in monthly installments and contained a provision for repayment upon demand..."

"In November of 2008, Steadivest contacted its note holders and advised that it was unilaterally reducing the interest rate on its notes to 3% and suspending the demand feature of the notes. See Exhibit "B".

"Since the filing of the bankruptcy proceeding, Steadivest has not been able to pay its bills as they come due. Specifically, Steadivest was unable to meet its payroll on Friday, April 10, 2009 and has insufficient cash in the bank to pay the rent on the building where the business is located..." Copy of petition, Steadivest financial statements, List of properties owned by Steadivest

The Court agreed and ordered on May 15, 2009 a conversion of the bankruptcy petition from a Chapter 11 to a Chapter 7 filing. The case is currently pending further action as additional creditors had to be notified of the bankruptcy filing.

I have seen this scenario so many times that I can almost predict the outcome. Firm solicits investors in some exotic creation that promises a new way of doing business. Firm is actually a "family" of companies that are constantly created and dissolved with ownership moved around from officer to officer. Said companies also tend to have very short life spans. Owner lives high on the hog, buying a fancy home on the water in the Palisades as investors give him millions of dollars, only to see the money lost in bankruptcy. Owner files bankruptcy1 for one company while keeping the others operating, thus allowing him to continue the um, game (can't say scam, might get me sued at this point.). This one smells, folks and it doesn't take a genius to figure out what is going on in this case.

29 comments:

Kingfish said...

Here are some of the people on that list of creditors:

Leila Stone: 92 year old blind lady in Vicksburg. Taught Latin for 25 years. V-burg Post Story

Sheila Stone: Her daughter.

Alex Breeland: Madison County Coroner

Scott Stevens: President of Pizza Pro, Inc.

Anonymous said...

I think Alex, Jr., is the coroner, for whatever it matters.

Anonymous said...

I'd say Marshall has snakes in his head, and the investors are snake bitten.

Kingfish said...

Then there is his attorney, the managing member of Wells Marble Hurst, who is easily impressed with his title and saw 20 quality associates leave one by one while refusing to admit there was a problem.

Anonymous said...

I think he should go straight to jail for stealing money with his slick moves- no one should get by with stealing from the blind.

Anonymous said...

Fish, on a related note. Have you heard anything at all on the status of Linda the Peach after her arrest for embezzlement?

Anonymous said...

Wolfe is a big time, slick, crook and a man with no morals at all. If this con man is not prosecuted there is no justice in the USA. How can anyone with morals steal from the elderly and live high on the hog. Big time crook, and just like Bernie Madoff.

Anonymous said...

Kingfish, Thank You for what you do.Pleas keep on this.

Anonymous said...

Did Mr. Wolfe have any partners? Make sure you're stating ALL the facts. Seems a "little" (sarcasm intended) slanted to me. Don't believe everything "kingfish" blogs. Sounds like he's in bed with some of these guys...oops!

stilettoGOP said...

asinine- (as-uh-nahyn) :adjective. 1. Foolish, unintelligent, or silly; stupid, way off. 2. Of or like an ass. See also; anon comment 12:47.

Anonymous said...

12:47 OOPS - Go look at the Secretary of State website. You'll see all the filings. Just plug in the guy's name.

Kingfish said...

I'm leaving 12:47 up. Speaks for itself.

Anonymous said...

There is a group of people in this area Kingfish who don't care for the bright light of truth you've been shining on their good ol' boy network.

Anonymous said...

Thanks for leaving this up until week-end and I can go in and research and connect the dots.

I'm sixth generation Mississippian and love my State and its great people.

We allbeingdumbassesansallmrwolfemustbefromoutofstate.

Anonymous said...

no 6:21....mr wolfe is from ms....he lived in meridian and canton...

Anonymous said...

Mr. Wolfe will get what's coming to him. His wife at this point is still pulling a Tammy Wynette and standing by her man. I suspect soon enough the truth will be obvious to her and his parents if it isn't already. You can only "play dumb" for so long. Mississippi Madoff is exactly what this jackass is.

Speaking of ass, we all know what will happen to him once he gets incarcerated. I hope that million-dollar house on the water and high life were worth the splitting he'll get from his cell mate/boyfriend.

Anonymous said...

Is there a complete list of investors somewhere?

Kingfish said...

No. There is a list of creditors with the BK court but until the complete list is released along with the amount of each claim, there is no real way to know how much was lost unless it is released by one of the parties.

Anonymous said...

Kingfish? What is your realy identity? Who are you? What's your name

Anonymous said...

Be careful Kingfish Mr Wolfe might be coming after you...oh I forgot he only goes after the old, weak and blind! No worries, we got your back!

Anonymous said...

Cheesy!

Anonymous said...

Adcock is a fast talker also.

Anonymous said...

I went to high school with him! A total arrogant asshole, I saw him in the working out at the Club about two years ago same cocky guy he was in school just with a bigger ass.

Kaptain Kangaroo said...

You choose an early comment to hid your anonymous comment? Good lord, that was pretty pathetic. Even us outback folks will stand up for our beliefs and not hide behind foolish, angry, bitter, truly bitter comments. Stand up and tell us your story or leave the emotional roller coaster of your personal life in your head...or, I will throw roo poo at yoo.

Kingfish said...

His crowd has been real quiet. I remember when I first started posting about Steadivest, they came on here and were the ugliest group to ever comment on this site. They used to threaten me with lawsuits until I pointed out suing me also gave me the power of discovery (and a chance to use my "How to Conduct Discovery" written by Larry Latham.) Then when I posted the 2005 Cease and Desist Orders, it quieted down some. Spiked a little when I posted the divorce filing, which I wouldn't have done but they had accused me of not posting every document so I gave them exactly what they asked for. Then the New Cease and Desist Order was published, and they got real quiet. Now the CL publishes a story on them and still quiet. Its also probably a safe bet the feds are looking into them as well.

Anonymous said...

Is this over? Did he walk away free and fancy

Anonymous said...

Did MTW Marshall Wolfe just walk away from all this. Heard he was working in a bar somewhere?

Kingfish said...

I had heard that. AG and Feds have this stuff but nothing has taken place yet. SOS did what they could but turned the actual prosecution over to the AG's office. Feds have definitely investigated but have indicted anyone yet. There are other cases, like the Evans case, where the Feds are known to have investigated but have done nothing. Some, and I am one of this group, speculate the U.S. Attorney's office has been told to hold off on major prosecutions until they get a new appointee. Have heard that as a rumor but totally unconfirmed and don't know how true it is. With the feds anything could be possible.

Anonymous said...

I used to work for that snake that lost the most money hahaha. so happy to see a cheat get cheated haha. burn in hell pizza pro. This made me smile like the grinch 😆.

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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