Wednesday, January 27, 2010

State issues Cease & Desist order against Jack Harringon and Marshall Wolfe, Steadivest shut down.

See sidebar on right for a collection of all Steadivest posts.

The Securities and Charities Division of the Secretary of State of Mississippi issued a final Cease and Desist Order against Steadivest on January 5, 2010. Final Order The SOS issued a pending order on November 18, 2009 against the Rankin County "family" of companies. JJ reported on November 24, 2009:


"The State stated Steadivest's presentations to the investors were of a "fraudulent nature" and that the escrow accounts were kept empty as the investors money was used to "prop up" the company instead of the intended purpose for the funds. Steadivest also used funds to prematurely pay off promissory notes held by Jack Harrington, a member of Steadivest.

Steadivest represented to investors the company was purchasing homes for a low price, renovating them, and then flipping them for a profit. The State said the figures used to show how this could make a profit for the company were "engineered solely for the purpose of fraudulently enticing investors." and that there were no profits made on these homes.

The Securities Division ruled "Steadivest mislead and deceived its investors in order to pay off mounting debt and keep its numerous subsidiaries afloat. In a "Robbing Peter to Pay Paul" Ponzi scheme, Steadivest mislead investors through a PPM (private placement memorandum which told investors where money would be spent) which Steadivest had no intention of honoring; through material misstatements of its CEO, Marshall Wolfe, and through material omissions in sales presentations and materials presented to its investors."

The State ordered Steadivest to Cease and Desist immediately from "further illegal activity". If Steadivest violates the order, the State can fine it up to $25,000 and imprison company officers up to five years in jail. Steadivest can request a hearing if it so desires.

It is also important to note several members of Steadivest were disciplined by the State in 2005. Marshall Wolfe was fined $10,000 and the State suspended his securities license for six months for selling promissory notes on real estate deals for MTW, a company he later owned (It was initially owned by his wife, brother-in-law, and Joel Travelstead. Wolfe later became a part-owner.) behind his employer's back to his clients. His employer, Bancorp South, discovered his double dealing, fired him, and reported him to the State. The Cease & Desist Order stated he committed the same violations while working for his next employer, Trustmark. The State ruled he sold unregistered securities and fined MTW Investments, an additional $10,000, as Wolfe sold the unregistered securities for MTW" Earlier post

The State also issued a Summary Cease and Desist Order and a Notice of Intent to Impose an Admistrative Penalty on Jack Harrington and Marshall Wolfe. Wolfe and Harrington operated various Steadivest companies (see earlier post linked above). Such a notice means the State plans on issuing fines against Harrington and Wolfe. Order and Notice.

The State ruled Harrington and Wolfe lied to investors in order to obtain over a million dollars from them to keep their business afloat and maintain their lifestyles. Investors were told their money was used to secure properties (thus there was collateral for the investments). No escrow account was ever established for the funds. Harrington and Wolfe never had any true audited financial statements produced for Steadivest. Steadivest employee Scott Smith told investigators expenses were "out of control."

The State also said Wolfe and Harrington engaged in a series of transactions among several Steadivest companies in order to launder (my choice of words) over $300,000 to Jack Harrington within a few days after investors gave $495,000 to Steadivest. The money was also used to pay off promissory notes owned by Harrington. Harrington apparently asked individuals to invest their money with him without telling them the money would be used to pay him back for his investment, the classic trait of a Ponzi scheme.

Harrington and Wolfe used the investors' money to enrich themselves. Harrington paid himself a $150,00 a year salary. Trips to Disneyworld, furniture, clothes, plane tickets, restaurant bills of several thousand dollars, and other personal luxuries were financed by the bilked investors. It should be noted Mr. Wolfe also purchased a million-dollar home in The Palisades.

Wolfe and Harrington have thirty days to request a hearing on this order. If they decline to do so, the State will then issue fines against each individual if it decides to do so.

9 comments:

Anonymous said...

Wasn't that house in the Palisades for sale for ~$750K? Did it ever sell? Who bought it and what was the final sale price. Will the investors get any of that money?

Inquiring minds/etc...

Kingfish said...

yeah, it first went on market for 1.2 million then kept dropping the sales price. I think bank took over the sale.

Anonymous said...

Still for sale. 750k is what Wolfe owes Trustmark. Contact Teresa with Merk Reality.

Hookah said...

Hey KF, wouldn't it be funny if you used yesterday's headline about the Irby story for this one, STATE SEEKS MENTAL EXAM FOR MARSHALL WOLFE

Anonymous said...

KF-

Where is the Wolf support group?

Anonymous said...

Re where the Wolfe support group is now... when the lights are turned on the roaches scatter.

Chris Merck said...

it's Merck Team Realty. yes it sold

Anonymous said...

Chris, how much did it sale for?

Anonymous said...

Crooks like this should be held accountable for their dishonest deeds. It takes a real scum bag, low class, heartless, person to do what these jerks have done. It is a shame that they are allowed to walk the streets. It seems like more and more crooks are out to make a fast, dishonest, buck and are getting away with it. They do not care about who they hurt. They just want to spend, spend, spend and to hell with the people they are robbing. Live big, spend lots of money, have a high ole time on somebody elses money, draw a huge salary, then say I did not do anything wrong. Where are our enforcement agencies? How much longer can these types of swindlers be allowed to walk the streets of the USA? If this was on the national news something would probably have happened by now. Wake up authorities and get to work and do your job before more innocent people get hurt.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

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!!!

This is definitely a Beaver production.

Note: Security provided by INS
.