Wednesday, July 29, 2015

Wolfe gets five years in bankruptcy fraud

U.S. Attorney Gregory Davis issued the following press release:


Jackson, Miss – William Marshall Wolfe, 45, of Ridgeland, was sentenced today by U.S. District Judge Carlton W. Reeves to 60 months in federal prison followed by three years of supervised release for the fraudulent transfer of approximately $1.5 million in real property from the bankruptcy estate of Steadivest, LLC, announced U. S. Attorney, Gregory K. Davis, Acting U. S. Trustee Henry G. Hobbs, Jr. of Region 5, FBI Special Agent in Charge Donald Alway, IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, and Inspector in Charge Robert B. Wemyss of the U. S. Postal Inspection Service.

William Marshall Wolfe placed Steadivest, LLC, in bankruptcy in the Southern District of Mississippi on March 23, 2009. On the eve of bankruptcy, Wolfe, as owner and managing officer of Steadivest, LLC, fraudulently transferred real property belonging to Steadivest, LLC, or its related entities, to another company, which he managed and solicited investors, in order to keep the properties from the bankruptcy estate, all in violation of Sections 152(7), Title 18, United States Code.

The U. S. Trustee referred this matter to the U. S. Attorney for prosecution. The investigation was conducted by the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service, with assistance from the U.S. Trustee.

Kingfish note: It was Jackson Jambalaya which first discovered the bankruptcy fraud in an earlier post.  JJ reported on September 7, 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 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.....

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.

Collection of all Steadivest posts.  

Here are some comments from that post:

You all have no idea what you are talking about or even how the companies were run or even what they did - so how can you post such nonsense - 

With a bunch of idiots that know absolutely nothing about finance or business or the law or anything that they are talking about blabbering on here like they actually know something.

You people are pathetic

 I love listening to fools -

Here is a question for everyone -

If you loose your job; therefore no longer have any money coming in; therefore can no longer pay your mortgage; your lender therefore declares your loan in default; forecloses on your house; and then your lender sales your house for less than the outstanding principal amount of your mortgage - are you guilty of fraud? And should the lender, e.g., Regions Bank, be allowed to sue you in civil court for fraud? (KF: Has nothing to do with moving assets around while filing bankruptcy and hiding them but ok)

You guys really don't know what you are talking about and you are only able to use such bravado because you are anonymous posters. The truth, be it illegality or incompetence, will come out in the end. Let the court decide and stop defaming someone without full view of the evidence.
Now, if he's found guilty, feel free to comment.

A comment I made:

Facts? Here are the uncontested facts:

1. Wolfe and his crew operated several companies under the Steadivest umbrella. They advertised various services to investors and clients.

2. In March, a group of investors filed a request for a TRO against Steadivest and Mr. Wolfe.

3. A few days later, Mr. Wolfe filed Chapter 11 bankruptcy petition.

4. In late March, Mr. Wolfe filed a defense to the TRO request with the Chancery Court in Rankin County citing the BK filing.

5. Investors filed suit against him in Rankin County Circuit Court, alleging fraud and various misrepresenations. Complaint was ameneded last week.

6. Several creditors filed a motion in BK court to convert the 11 filing to a 7. They alleged he was using the filing for one company to place all of his debts in while he kept operating his other companies and requested all companies be included in the BK.

7. The Court agreed and issued a conversion order.

8. The top 20 creditors have claims of nearly $7 million.

9. Wolfe and his attorney failed to provide the Court with a complete list of creditors. The deficiency was cured.

10. This blog discovered numerous properties owned by steadivest that had liens placed on them only a few weeks and all on the same day by various companies also owned by Mr. Wolfe. Such liens were very suspicious in nature as they were not arms length transactions and were for lump sums only, leaving out regular info on deeds of trust such as interest rate, due dates, terms of note, etc. Such filings as detailed above raise a suspicions that attempted bankruptcy fraud has taken place.

11. WLBT broadcast a story on Steadivest. Shortly afterwards, Steadivest's website was taken down.

Everything will eventually come out in the wash as these things work their way through the courts and they will be posted. When Mr. Wolfe and his colleagues file responses in court they will be posted here so you can read them for yourself.

As for defamation, may I recommend Leornard Van Slyke? He is an excellent media attorney and has represented the CL in the past. He would be a good one for you if you are looking to sue this blog or its owner for slander. Of course, he will probably require a retainer up front. Terrell Rushing would be a good one as well
 by the way, not one person has tried to explain away these liens or transactions made that were the subject of this post.

 Jackson Jambalaya-
Where Kingfish "says" he removes hearsay or rumors or comments that can't be backed up.
Just as long as the smears meet his storyline they remain.


Anonymous said...

KF = genius reporting
Does Mississippi have a local Pulitzer?

Saltwaterpappy said...

I know it's asking a lot, but I sure do wish that Mr. Kingfish would open up an active Gulf Coast bureau. I'm sure that we have enough shit going on down here to keep a Redfish or Crawfish occupied with an investigative blog.

Anonymous said...

Great job,

Always wanted to do what you do in college but didn't have the gall to do it. Must be pretty rewarding.

Anonymous said...

Just great work as per usual, Fish. Strange that many readers are of little faith

Anonymous said...

Score one for the Kingfish! Proud! @6:01, the "readers of little faith" are eating supper or whatever they do while downing a couple or smoking a little before they blog. The dislike and sarcasm roll until bedtime. LOL.

Anonymous said...

I grew up with Marshall. This outcome does not surprise me in the lest. I personally know 2 investors he ripped off and I'm glad to see some justice handed down.

Anonymous said...

He just got in trouble for bankruptcy fraud though, right?

Was he ever charged for anything related to defrauding investors?

Was it a pyramid scheme he was running?

Devine 1816 said...

The sort of investigative journalism they talk about @ the JFP but never perform! And Donner's non-performance sure as hell isn't because of a shortage of material.

Page Arrangement Protest said...

Kingfish: These intermittent ads that your program places in the middle of discussion threads are idiotic, intrusive, distracting and stupid. Of course you already know this. If you think this is necessary to FORCE people to view a paid ad, you're a pecker head.

Anonymous said...

If you think this is necessary to FORCE people to view a paid ad, you're a pecker head.

Nobody, let alone Kingfish, is forcing you to do anything. Grow up.

Anonymous said...

Great job, KF.

Anonymous said...

Is LEE PARIS next on the list? where does he fall

Anonymous said...

KF you were the first to break this story with accuracy and an outstanding explanation of a very complex investment scheme. Be proud of your work and with opposition attempting to attack you, you prevailed, you were correct and justice has been served.

Anonymous said...

Kingfish, what (if anything) does this mean for Jack Harrington? Are the Feds still looking into him as well?

Anonymous said...

As if it were not enough to be convicted for bankruptcy fraud along with Wolfe operating a Ponzi scheme, evidentially Wolfe has a substance abuse addiction also. Prior to his sentencing Wolfe's attorney ask the Judge he be entered into a drug-alcohol treatment facility stating Wolfe has an addiction problem and needs help. Wolfe's attorney did not state what his addiction was.

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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).

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This is definitely a Beaver production.

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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.

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