JJ reported earlier this week on the fine and suspension of local investment, umm, guru Lee Paris by FINRA. Long-time JJ readers will remember his name from the Steadivest case. 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.
The following are excerpts from an earlier post in 2009.
"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.
Collection of all posts on Steadivest case
Friday, November 4, 2011
The Steadivest/Lee Paris connection
Subscribe to:
Post Comments (Atom)
28 comments:
Meadowbrook Capital - isn't that the 'firm' where Councilman Whitwell landed himself a year or so ago? Proud to be an investment professional, lobbyist, and PR Guy? Is this why he suddenly left and moved a couple of doors down to open a law office?
Should Whitwell suddenly resign from the Jackson City Council due to "health concerns" you'll know the goose has been cooked and is ready to be served.
Do you think Lee can use all this as a case study for good honest fathering. I think the National Center for Fathering will find this a compelling story.
Wow, Kingfish..... most excellent job of reporting and explaining the connections. Quite a tail.
Just from your basic reporting, it appears that Lee Paris is deeply involved but kept , or tried to keep a degree of separation. Just like the medcap and Provident Asset (which was also legally labeled a Ponzi) ,
Lee Paris can try to act like he is just raising capital and placing it in certain investments, and then claim that he didnt know they were fraudalent. And I guess that is what he is currently fined and suspended for ..... failure to provide his clients with due diligence.....(it appears he provided zero diligence)
I just would like to know what part of Africa he is doing his mission work in. Nigeria?
What is amazing about Steadivest, is that nobody is going to jail!
You might find it of interest KF that a month before forming Meadowbrook Capital Paris renamed Invest Linc Securities LLC to Meadowbrook Securities, LLC.
Then Meadowbrook Strategies is incorporated in Jan2010 and a few months later Meadowbrook Development in May2010. Everyone will recognize the email address provided with those incorporations.
Now, consider Meadowbrook Strategies as presented in January of this year:
Meadowbrook Strategies is a full scale public relations firm that originally began as a conduit to service the needs of the clients and efforts of its sister company Meadowbrook Capital, a boutique investment banking firm providing capital solutions paired with long-term, trusted advice. Other Meadowbrook companies include Meadowbrook Securities, a licensed broker dealer, and Meadowbrook Development, offering real estate solutions using design/build methods.
Then review Meadowbrook Strategies today after a thorough Whitwell scrubbing:
The Talon Group offers advice, advocacy and access to companies and organizations wanting to do business with the state or the federal government. Various legislative and administrative governmental entities make decisions every day that impact your business. Many states current political climate include the creation of new rules, new programs, and budget problems. These activities create challenges as well as opportunities. Clearly, the right government relations firm can make the difference between success and failure for you and for your business. More than any other lobbying firm, The Talon Group understands your lobbying needs and has the combined experience and expertise to deliver it. You want results -- not process. Our partnership provides the advice, advocacy and access to help you achieve those results at a "one-stop shop."
Get that? "... a boutique investment banking firm providing capital solutions paired with long-term, trusted advice."
Can anyone say COVER-UP?
This whole sordid affair is just another attempt to confuse the public by "layering" companies.
It is used by money laundering criminals and in this case its real
estate "layering."
How in the world can Jim Hood and Delbert Hosemann sit back and watch this white collar crime happen right in front of their eyes?
Unbelievable. Just unbelievable that Paris has not been uncovered by now.
Maybe Hood can get interested now that there is an elected official from Republicanville primed for a takedown.
If Lee Paris was involved with Marshall Wolfe he should be looked at closely, very closely.
Whi fined Paris and for what and when?
Kingfish did you read Whitwell's inane comments about the TCI hotel deal in the Northside Sun this week? He is clueless.
Inane? Big word, Harvard??? Sounded "fishy" to me. (More Mississippi ish)
What did Paris do and how did he get a fine?
Scroll down the home page and read jackass.
Lee was last seen in his chapel at Ole Miss!!!!!!
Still on the meadow brook capital website:
Quentin Whitwell is the managing partner of Meadowbrook Strategies, LLC. Quentin co-founded the lobbying firm, The Talon Group in 2004 and most recently served as a Senior Government Relations Advisor for the law firm Brunini, Grantham, Grower & Hewes, PLLC.
Quentin has spent the last twelve years handling major issues for corporate clients. Not only does he have significant expertise in working successfully within the ranks of government and in the private sector to achieve client objectives, but he consistently assists businesses in their efforts to grow and succeed. Mr. Whitwell’s key strengths include communicating corporate messages, organizing grassroots initiatives, executing business plans, developing messaging, managing crisis situations, advocating for effective regulatory policies, securing venture capital, and pursuing strategies to pass legislation beneficial to his clients. In short, Quentin knows how to earn the support of the public at large as well as that of elected officials. Quentin has served as legal counsel and lobbyist for a number of corporation and associations including the Mississippi Association of REALTORS®. During his tenure with the REALTORS®, every bill the Association sought for passage was signed into law. His abilities in the finance and real property sectors have produced a large clientele to pursue and create economic development projects throughout the South.
He is a graduate of the University of Mississippi and the University Of Mississippi School Of Law, and is a member of the Mississippi Bar Association.
Quentin is a 2005 recipient of the Mississippi Business Journal's “Top 40 Under 40” award, and a member of the Ole Miss Hall of Fame. Quentin also served as the Chairman of the Mississippi Tort Claims Board under Haley Barbour’s first administration as Governor. He currently serves as the Executive Director of the Mortgage Bankers Association of Mississippi where he manages the association and lobbies on its behalf. Additionally, Quentin is the author of the Southern novel If By Whiskey, a comedy that takes a fresh look at the New South. You can learn more about Quentin’s book at www.ifbywhiskeynovel.com or follow his blog at www.speakingthetruthinstyle.blogspot.com. His twitter name is Quentin_W and he also can be found on FYacebook.
Sorry, thought I had logged on to Jambalaya. Didn't realize I had been redirected to wikipedia.
I read where Lee Paris, Jack Harrington, Patrick McRaney and others filed somthing that said Marshall Wolfe deceived them as well and caused the fraud at Steadivest.
These dudes deserve whatever is coming to them.
Some truth to that. The ponzi started with Wolfe and Joel Travelstead early on. Joel was slick enough to get out leaving Wolfe sinking and desperate. What a failure Wolfe is, lost his business, family and reputation!
American Greed shocking video much like Steadivests past dealings.
http://video.cnbc.com/gallery/?video=1715633394
Do you evil people have nothing better to do than gossip on this website? seriously you losers get out of the damn jackson bubble and get off this website if you are only going to leave rude comments about people YOU DON'T EVEN KNOW. Paris is a great Christian guy and do you know him? No. Paris made some financial mistakes but he is a working to repay everyone back from the money he lost from getting deceived himself. Get a fucking life and leave this poor guy alone
Pollyanna - thank you for playing. Next contestant please!
Oh yeah. Honest mistakes and all of the evasive subterfuge was only basic recording keeping. And did Paris dupe Whitwell because the erasing of tracks looks otherwise?
I hope you don't believe Lee Paris is innocent and now on to other missions. He needs to be stopped now..
Where is the law. Madoff investers are getting money back. lets go for that..
Im still waiting for my money
Post a Comment