Monday, February 6, 2012

Judge freezes assets of Mike Brown & Linus Shackleford, sets bond

Hinds County Chancellor Dewayne Thomas froze the assets of attorney Michael J. Brown and Linus Shackleford after ruling they looted the inheritance of Damon McClinton. Judge Thomas ruled on Friday:

"funds from the... guardianship illegally taken by Mr. Mike James Brown and invested or loaned to Mr. Linus Shackleford and/or Lakeland Place, LLC. Due to this illegal transfer of funds without Court approval and to prevent any further fraudulent conveyances, this Court temporarily enjoins Mr. Mike James Brown, Linus Shackleford, and Lakeland Place, LLC from transferring and/or disposing of any real or personal property until the show cause hearing dated March 20, 2012."

The order also freezes all bank accounts, stocks, bonds, cash, safety deposit boxes or "other assets". Judge Thomas also issued an order setting Mr. Brown's bond at $100,000. Judge Thomas will hold a "show cause" hearing for the Flowood attorney on March 20, 2012 at 1:30 PM "to show cause why criminal contempt should not be ordered by this Court for not depositing the monies of the guardianship" in a bank account and why he should not be jailed for civil contempt until he submits to the court a "proper accounting of the guardianship and he returns all monies plus interest..."

Mr. Brown was arrested for contempt of court February 2 after he was unable to provide for an accounting in the estate of Rebecca Henry. Mr. McClinton inherited $3 million from Ms. Henry, the daughter of Mississippi Civil Rights legend Aaron Henry, in 2000.

The court established the guardianship in 2000 when Demon was sixteen years old. Young McClinton inherited the money from his mother, Rebecca Henry. Mr. Brown was supposed to deposit $3 million in a bank on behalf of Demon McClinton, and report to the court on an accounting of all funds. The lawyer failed to do so after the court asked him twice in April 2011 and January 2012.

Judge Thomas ruled no guardianship account at a bank was ever established. The court also said Mr. Brown loaned $550,000 to Linus Shackleford from the McClinton funds. Mr. Brown personally "borrowed" $507,745 in January 2001 and he then forged two checks in 2002 for $205,020 and $32,725. Mr. Brown appeared before the court yesterday and was incarcerated by Judge Thomas after he failed to provide a "satisfactory explanation" of the funds and loans. The court had also approved a $398,000 payment in 2001 to Mr. Brown for "his efforts in procuring this minor's funds from his mother's estate." Judge Thomas ruled the fee was obtained through fraud and ordered it paid back to Demon McClinton.

Judge Thomas was very harsh in his description of Mr. Thomas' actions: "the acts of Brown in representing the minor have been intentional acts to steal and defraud the minor of the funds inherited from his mother. The Chancellor ordered Michael J. Brown incarcerated in the Hinds County jail until he deposits "all funds of said minor into the registry of the Chancery Clerk of Hinds County" and makes an accounting of the funds inherited. The court also ruled it will turn the file over to the District Attorney for further investigation. The Hinds County Sheriff's office told this correspondent tonight Mr. Brown is still in jail.


Anonymous said...

who is Shackelford?

Anonymous said...

The best thing Shackelford could do is plea bargain for 5-7 years. Brown 10-12.

Anonymous said...

@6:42: Shackelford is a conman that has been buddies/"partners" with Michael Brown for many, many years. They have ripped off A LOT of innocent people and I'm glad Judge Thomas is holding them accountable. Shackelford has even stooped so low as steal from his own family members. These two are sickening and a disgrace to society!

Anonymous said...

Brown's already had almost a year to come up with the money/accounting. He needs to stay where he is until he starts singing.

Anonymous said...

He was just a black kid.

Kim Wade said...

I wonder if there is an any E&O for Mr. Clinton to recover his money. E&O insurance is optional for lawyers correct???

Anonymous said...

Kim Wade, the insurance is for errors and omissions. It does not cover deliberate criminal acts. However, you can count on Brown and Shackelford trying to use it to bail their @#%^* out. This insurance company ain't paying this one!

Anonymous said...

Attorneys get malpractice coverage at their option and their expense. That's irrelevant here. Had the guardianship been properly established, the attorney or any person acting as guardian, would have been required to post a fidelity bond with adequate surety. From the article, it doesn't sound like the guardianship was properly formed. Why did it take 12 years for this to unfold?

Anonymous said...

Is Linus allowed a blanket in prison?

Anonymous said...

Where Brown & Shackelford, Inc. end up they won't need a blanket. There will be plenty of flames to keep them nice and warm!

Kingfish said...

Usually can't recover for fraud on an insurance policy.

Anonymous said...

Shackleford owes many people a lot of money. If he was supposedly using the money to pay people off they better check and see where it really is!! He's a crook, liar and a con!! Hope he enjoys his time at the happy hotel!

Anonymous said...

I'm not sure that 'freezing the assets' of either of these bastards will really accomplish much since both seem to owe big $$$s to lots of folks - but Judge Thomas at least sent a message to them . Hopefully, the kid might be able to recoup a part of his inheritence. To bad his father didn't exercise any better judgment a decade ago when he hired Brown as his attorney.

Anonymous said...

I went to church with Linus Shackelford. He is a fine man. There is no way he would have taken a loan from a teenage, much less $500,000. Kingfish, you are sadly mistaken, he would never do this.

-Sally Mae Carter

Anonymous said...

Sally Mae are sadly mistaken

Anonymous said...

Sally Mae Carter or A.K.A. Linus are the one sadly mistaken! I've known Mr. Linus my whole life and trust me, he did this! He stole from the 16 year old kid and it was ALL done with intent to take the money but never pay it back. There is not one instance of an effort to pay anything back in the last 10+ years! What Mr. Linus did to this kid is what he does best.....he cons people and takes advantage of them to get what he wants. You want to know his powerful tool he uses to break these people down?? He uses people's emotions to get to his victims. He tells all the stories of how you should feel sorry for him, blah, blah, blah. I've been victimized by him and he stole thousands of dollars from me! Linus Shackelgord is a master manipulating conman! If he approaches you with a "business" deal, you better get as far away from him as fast as you can!

Anonymous said...

I'm not surprised to hear this about Linus Shackleford. I'm just surprised he hasn't been exposed for things like this before. I have heard he is unscrupulous in business and unethical, and while I don't have proof that he is, this would bear that out. The wheels of justice turn slowly, but they grind exceedingly fine.

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