Thursday, November 20, 2014

Court uphold SOS against Watkins, orders $655,131 payment.

Secretary of State Gibbert Hosemann issued the following press release:


Court upholds Secretary of State’s Findings in Watkins Case

Jackson, MS—The Chancery Court of Hinds County, First Judicial District, has ordered Watkins Development, LLC and David Watkins, Sr. to pay $587,084.34, plus interest, in restitution; $50,000 in penalties for violations of the Mississippi Securities Act; and, $18,047.39 to the taxpayer for investigation costs and administrative proceedings.

In its Opinion and Order, the Court affirmed the Secretary of State’s Final Order as follows:

·        When Watkins failed to disclose his intentions to use the bond proceeds for any purpose other than the improvements for the Retro Metro project, Watkins violated the Mississippi Securities Act by employing a device, scheme, or artifice to mislead or deceive;
·        Watkins’ use of a portion of the bond proceeds for the Retro Metro project to finance the activities of the Mississippi Law Enforcement Center, LLC in Meridian is a material omission and a violation of the Mississippi Securities Act; and,
·        Watkins’ misuse of the Retro Metro bond proceeds was an act and course of business that operated to mislead or deceive.  The Court found this was in connection with the offer and the sale of securities and a violation of the Mississippi Securities Act. 

The Court found Watkins’ failure to disclose the existence of a Development Agreement did not violate the Mississippi Securities Law and therefore, reversed that finding from the Secretary of State’s Final Order. 

19 comments:

Anonymous said...

Who does he have to pay it to?

Anonymous said...

Why hasn't he been disbarred yet?????

Anonymous said...

So Delbert has directed that Watkins pay interest, but what about Morgan Shands - he has TEN YEARS to pay - BUT NO INTEREST! Delbert is just as dirty as they are - playing favorites with Shands and going after Watkins! At least Watkins at least looked like he was trying to do something for the people. Shands did his under the cover of Bingo Baby for the American Legion!

Anonymous said...

Watkins' massive cash flow problems have been well documented here at JJ over the years. It may be bankruptcy time now.

Anonymous said...

Guess this means that David won't be playing WOPM (with other people's money). Guess he will have to try for public office if he wants to keep up this kind of charade.

Anonymous said...


Disbarred for what. He did not steal from another lawyer.

Anonymous said...

this is kind of fun. you gotta read the shit about keith parsons, the dumb ass lawyer that filed the complaint against watkins to start with. the judge ripped him a new one. glad he's not my lawyer.

Anonymous said...

Feds will cuff and stuff him before it's all over.

Anonymous said...

Looks like Watkins has already appealed to the Supreme Court. So, this hunt ain't over yet. I started reading the judge's opinion and just got bored. Maybe some of you lawyer types can enlighten us what it really means.

Anonymous said...

David owes hundreds of thousands in past due property taxes and unpaid judgments. Of course he's going to appeal. He needs to stall for time.

Anonymous said...

What law firm(s) did Watkins and Hosemann work for in their earlier days??

Anonymous said...

I wonder how much money Jones Walker has made in legal fees using Watkins as a target for their clients? JRA? RetroMetro? Secretary of State? ? Pretty good racket, as long as you can get away with it.

Anonymous said...

The most important element of this decision is being overlooked. The judge REVERSED the trial judge's finding that the development agreement was material. That's important because if the agreement, which is what the money in question was used to pay, was not material, then the other three counts must fall. This is an easy win on appeal for Watkins. And, yeah, the stuff on Keith Parsons is hilarious. And he was the only witness for the SOS. In all the discussion, what I don't understand most is this: The bondholders lent the project two million dollars more than the projected construction costs. Doesn't that mean they KNEW the developer would be charging substantial sums for his services (far more than the $550,000 charged by Watkins)? And isn't it important that the bond is not in default and the bondholders did not lodge this complaint--Watkins bitter political enemy did? I just don't get this.

Anonymous said...

Watkins worked for Brunini and then Adams and Reese; Hosemann practiced with Phelps Dunbar.

Anonymous said...

There's too much crap this court order for me to understand it. Can some lawyer give a recap? I'm still trying to figure out who Watkins has to pay the money to. It looks like it's to his ex partners and not bondholders. It seems that there's a lot more stuff going on here than it appears. I just can't put my finger on it.

Anonymous said...

@10:52 - oh, shit! no wonder I couldn't understand this. I knew there had to be more to this than meets the eye. damn. What happens next?

Anonymous said...

Watkins will lose his appeal to the Sups.

Anonymous said...

@2:34 Why do you think so? How are you involved.

Anonymous said...

The court is ordering restitution to Retro Metro. According to SOS records, the members are Socrates Garrett, Leroy Walker and Howard Catchings.


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