Bankruptcy trustee Derek Henderson filed suit against the Investlinc/TFC Income Fund in February. Mr. Henderson alleged bankruptcy fraud on the part of Investlinc, as he claimed it looted Steadivest as the company collapsed and investors lost millions of dollars. The fund was operated by Marshall Wolfe and Jack Harrington. Lee Paris was the promoter.
Steadivest was a Ponzi scheme operated by Marshall Wolfe and Jack Harrington. The Secretary of State issued a cease and desist order and heavily fined the two individuals. The Steadivest companies filed bankruptcy in 2009.
The Steadivest officers and Investlinc, a Lee Paris-owned company, established the Investlinc/TFS Income Fund. SEC filing The Investlinc/TFS Income fund was used to purchase rental properties. The fund would then sell shares to investors. The investors would receive shares of the overall rental income in exchange for their investments. Several investors sued Investlinc/TFS Income Fund, the Steadivest companies, and various officers. Mr. Paris was a promoter for the fund. His role was to sell shares to investors and handle private placements for Investlinc/TFS. FINRA recently imposed a $10,000 fine on Mr. Paris and suspended him from working um, under his own supervision for six months. FINRA ruled he sold shares of failing investments to investors after he should have known, or did know they were in default on paying investors.
Mr. Henderson claimed right before Steadivest filed bankruptcy (which took place only a few days after the investors filed a lawsuit in Rankin County), Investlinc suddenly placed liens on properties held by Steadivest. In effect, Investlinc suddenly took possession of Steadivest properties. Such an action would deny the ability of creditors to recover against them in bankruptcy court. It should also be noted that Mr. Paris replaced himself as the majority owner of Investlinc Securities with Meadowbrook Capital. Meadowbrook would thus appear at first glance the majority owner for Investlinc even though Mr. Paris is the owner of Meadowbrook. Ah, the shell games.
The trustee asked the court to reverse the transfers and called the Investlinc/TFS Income Fund a classic Ponzi scheme. The lawsuit is fairly complex but the interesting stuff starts on page 17, paragraph 41.
Here is a copy of the complaint:
JJ speculated whether bankruptcy fraud took place in a 2009 post:
"Did Steadivest seek to shield some of its properties from creditors in bankruptcy court? Steadivest filed a petition for Chapter 11 bankruptcy on March 23, 2009. Earlier post about bankruptcy filing for Steadivest However, another company with the same owners, management, and address as Steadivest placed liens on several properties owned in Hinds County by Steadivest. The transactions were:
111 Carolyn Avenue Lienholder: Investlinc Inc./TFS Income Fund; $87,730.
2822 Engelside Drive Lienholder: Investlinc Inc./TFS Income Fund; $37,109
222 Lea Circle Lienholder: Investlinc Inc./TFS Income Fund; $20,831
(KF note: Much longer list in link to earlier post posted below)
The Carolyn Avenue transaction is typical for these properties. On March 5, a deed of trust was issued for Steadivest as owner of the property and a lien held by Investlinc Inc./TFS Income Fund, LLC. The deed of trust list them both as having the same address: 4 Country Place, Pearl, MS. The lien is for $87,730 (click on link above for the deed of trust. Filler pages were omitted from upload). The deed of trust only mentions a lump sum is owed, no payment schedule or loan terms are mentioned in the document. On the signature page, Marshall Wolfe signs for both Steadivest and Investlinc, stating he is a member of each LLC. The total amount of these liens is $145,670.
Investlinc Inc./TFS Income Fund, LLC is a firm that provides "financing for real estate investment and development" according to its SEC filing. Its principal address listed with the SEC is 4 Country Place, Pearl, Mississippi 39208. It was created on December 26, 2007. Patrick McRaney, a member of Steadivest, is listed as the Executive Officer. Marshall Wolfe is listed as an Executive Officer. Lee Paris is listed as Promoter. Jack Harrington signed the filing as the Chief Financial Officer of the firm and is also listed as an Executive Officer.
Patrick McRaney is also listed as the registered agent for Steadivest Capital, LLC and the officer of the the Steadivest Contrarian Fund. Jack Harrington is listed as the member/officer of Steadivest Resources, LLC and Steadivest, LLC. Marshall Wolfe is listed as the member/officer/director of Steadivest Capital, LLC, Steadivest Properties, the registered agent of Steadivest Development, LLC, and the officer of Steadivest Lending (now defunct). Lee Paris, listed as a promoter, is not mentioned with any other companies of which Wolfe, McRaney, and Harrington are members. Investlinc, Wolfe, Harrington, and McRaney are defendants in a lawsuit alleging investment fraud filed by several plaintiffs last week in Rankin County Circuit Court. Earlier post about lawsuit
What is odd about these deeds of trust is they were executed less than a month before Mr. Wolfe submitted his bankruptcy petition for Steadivest. If the properties have liens, the properties are somewhat shielded from other creditors in bankruptcy unless the Court rules these are fraudulent transactions and cancels the liens. The fact Mr. Wolfe used another company he ran that was in the same office to place liens on properties on properties he owned a month only a few weeks before he filed Chapter 11 bankruptcy makes these dealings highly suspect." Earlier post with more extensive list of properties.
In other words, the Investlinc/TFS Income fund looted Steadivest of its properties right before it filed bankruptcy by suddenly placing liens. Liens that would protect them from other creditors. What is interesting is nineteen days before the bankruptcy filing (March 4), Mr. Paris established Meadowbrook Capital, LLC. Mr. Paris replaced himself as the majority owner of Investlinc Securities with Meadowbrook Capital even though Mr. Paris is the majority owner of Meadowbrook. The result is at first glance, Mr. Paris's name is scrubbed from the ownership rolls of Investlinc at the SEC or FINRA's website. One has to look up Meadowbrook Capital itself in the filing to find Mr. Paris's name.. The SOS website reports Meadowbrook Capital is the "manager" of Investlinc/TFS Income Fund. Mr. Paris is listed by the SOS as the sole member of Meadowbrook. Investlinc claimed in a court filing it was victimized by Mr. Wolfe as the other investors were." Earlier post
Soooo....... how much snake oil has Mr. Paris sold?
Tuesday, November 8, 2011
Bankruptcy trustee alleges fraud by Investlinc fund operated by Wolfe & Harrington, promoted by Paris.
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29 comments:
Steadivest was a ponzi scheme operated by Marshall Wolfe and Jack Harrington.
A resume builder in the mind of David Landrum.
"A resume builder in the mind of David Landrum."
Please elaborate. Is Wolfe working for Landrum?
How much snake oil? I can tell you for a fact, it's more than this.
Lee Paris and Marshall "Ponzi Scheme" Wolfe. What a pair. What business deal will they think of next? Too bad we don't any law enforcement in this state.
Don't know if Paris did anything wrong, but if he was affiliated with Wolfe no telling what happened.
We all need to be sensitive to the Paris family. Lee simply got confused and made some common human mistakes known as greed and lust for money. I have always heard he went the extra mile to try and make his investors a solid return. He simply had good intentions, but unfortunately did not have any investments pan out.I believe he wanted truly to do well for his investors after he got all his commissions.
Haha. Lee is a model Christian man! Above reproach! Wolfe, well burn in hell!!!
If you are around Lee Paris...I give one piece of advice...put your hand on your wallet and keep it there.
He is a con man. He's a crook. Do not give him any money.
Does anyone really care what these guys did? I have seen so much emotion recently concerning defining conception and protecting the unborn but men defraud millions from the retired community compromising their ability to maintain any quality of life and...crickets! What a messed up society we live in, we all claim the same God and go to the same church and so much passion in one regard and a blind eye in the other! You all know who you are and the roll you have played and shame to you all.
7:14 - if you're trying to be sarcastic it's a little too dry and subtle to be effective; good sarcasm can be vicious.
If you're serious, though, you'd better up your meds to try to deal with those delusions......
Most people who were never caught in the Marshall Wolfe Steadivest scam have no idea how much Wolfe, and maybe Paris, hurt the investors. Many gave their life savings because if the blatant BS that was told to them. It is so wrong to see these people hurt with no one held accountable.
Where is Marshall Wolfe working now?
Darned if I know, but wherever he is watch your money.
Marshall Wolfe. Is he the guy who prayed for his investors then stole their money?
Did they not put Wolf away after he was caught in the ponzi deal?
This is only the tip of the iceburg. Much more than Wolfe or Paris will tell.
People who conspire with the same type are called strange bed fellows. Could thes guys be cut from the same cloth?
Not many post...people don't care. Good job Wolfe & Paris maybe the next group you still from will be able to put you two away!
They will steal again from someone or many, especially Wolfe.
It might take some time, but you can bet the house on that. Just wait and see.
Phenominal that these guys can get away with this stuff. Maybe we all should try this and make some big bucks quickly like this. I wonder how many people will see that nothing is being done about this type of stuff and try it themselves. We sure don't need any more crookedness than we already have, and it looks like we have plenty to go around.
8:33 is somewhat right that people don't care. It's different though if you are one of the people who is hurt by these men. There is much more coming for your reading pleasure. Just wait.
NO ONE CARES!!!! IT IS OVER, MOVE ON OR BACK TO A COOLER CLIMATE!
You're right 4:13. These people are Teflon coated. Not much is going to happen to them. Let's let everyone who gets screwed either keep their mouth shut and lay down and take it, or as you say move to a cooler climate. Just move on and let these crooks do it to another group of investors. The new American way.
When we moved to Mississippi a few years ago we had heard about the ruthlessness and unlawful ways of this area. It was difficult to comprehend, and we thought it was unwarranted. However, if this type of business is allowed and goes on like this in Mississippi we can see why it is so far behind other states that routinely regulate, oversee, and hold accountable those who abuse the laws and we can see why this state has such a poor reputation.
I know you all say get these guys, but trust me, their children will be the ones to suffer. It will be very hard on any of them to overcome their father's actions and have people trust them in the business world. They may have hooked alot of money, but they are about to get a dose of reality. You get one name and reputation in your life and leaving your child a good name is far more important than accidently taking money from people that worked hard to earn. This is just like the Penn State deal. The children will suffer their whole life from this and never recover. so sad!!!!
http://www.foodserviceequipment.com/
Marshall Wolfe works for this company now selling products to our schools.
PRO-QUIP!!!!! What are you thinking employing Marshall Wolfe????????
All I know is GK properties owes me 50000 dollars since 2007 and investlinc is in cohoots with them or IS them
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