Jackson Jambalaya

William McHenry sued Lamar Adams for $10 million on May 16 in Madison County Circuit Court. Adams pleaded guilty last week in federal court to one count of wire fraud as he admitted to defrauding 250 investors out of more than $100 million by selling them phony timber investments. A victim sued Adams and McHenry earlier this month. McHenry answered the lawsuit and included a cross-claim against Adams in the response.
Highway 22 invested $169,500 in an investment plan sold by Madison Timber Properties. Adams was the sole owner of MTP. The complaint claims that McHenry sold the bogus investment to Highway 22. McHenry had known the agent of the trust, Sherri Hughes, and her family for years. The lawsuit claims that he exploited the friendship to gain her trust and sell her the investments. Ms. Hughes discovered when a check bounced on May 1 that the deed was bogus and the property that was the collateral for the investment did not exist.

McHenry claimed he was a victim as well. His cross-claim states:

2. Prior to the last days in April 2018, McHenry had an amicable business and personal relationship with Adams. On several occasions, McHenry and Adams, along with other investors, purchased real estate for investment. McHenry was aware of Adams’ successful business dealings with a number of sophisticated, successful businessmen and financial and investment advisors. From these business and personal dealings, Adams gained McHenry’s trust. McHenry’s experience with and observations of Adams dealings with others gave McHenry the belief that Adams was a sophisticated, highly competent businessman who was reliable, honest and had integrity. Unbeknownst to McHenry, Adams exploited McHenry’s trust and confidence in his business acumen.

3. Adams’ scheme to defraud included representing to McHenry, H-22, Eddie Abdeen and others “that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price.” As part of the scheme, Adams created “false documents to lull” McHenry, H-22, Eddie Abdeen and numerous others to believe participation in the timber financing was safe and secure. In that respect, Adams “created false timber deeds” and “forged the signatures of landowners” in order to make the financing arrangement “appear legitimate.” To aid his deception, Adams had “documents  notarized  to  make  the  investments  appear  legitimate”  to  McHenry,  H-22,  Eddie Abdeen and others.....

6. Adams betrayed and duped McHenry into believing the timber financing loans were secure while providing an attractive rate of return. In short, McHenry had no idea or inkling Adams was a crook.

7. As a direct result of Adams’ fraudulent ponzi scheme, McHenry was named a defendant in this lawsuit and has suffered injury to his good reputation and name in the community  and  with  the  people  who  he  introduced  to  Adams  and  MTP  through  adverse publicity and his being unfairly associated with Adams’ fraudulent scheme.  Adams and MTP’s fraudulent ponzi scheme has exposed McHenry to this legal action and other potential claims as well as costs of defending himself and his good reputation....

The case is assigned to Judge John Emfinger.  Attorney Frank Trapp represents McHenry.


Earlier Posts
A look into how the timber scheme worked.
SEC opposes Delbert's opposition.  
 SEC wants receiver in Ponzi scheme case, Delbert opposes.
Victim sues Timber Trolls 
Lamar Adams pleads guilty.  
SEC: Ponzi scheme began in 2004. 
Flashback Friday
Clearcutting the timber. 
Wicker wobbed in Ponzi scheme.
Pinnacle Trust issues statement on Ponzi scheme
Lamar Adams waives indictment.
Feds: Lamar Adams took over $100 million in Ponzi scheme.
TIM-BERRR!!!