Thursday, May 3, 2018

Pinnacle Trust Issues Statement on Ponzi Scheme

Let the scurrying begin.  Pinnacle Trust sent this statement about Lamar Adams to its clients earlier this week.





Kingfish note: 


61 comments:

Anonymous said...

I can see the value of damage control, but I don't know why Pinnacle needed to issue that statement. If they determined that Madison was potentially fraudulent early in the game, that is a good thing. They took actions to protect their clients and money. God forbid that our legislators had done this due diligence with the "beef plant" and the other scams they invested state funds in over the years.

FWIW, Pinnacle Trust has had a stellar reputation over decades of its existence. I would and still will have no trouble trusting my money to them.

Anonymous said...

"Pinnacle Trust is not affiliated with him or Madison Timber in any manner."

But was...can you say "claw back?"

Anonymous said...

I laughed out loud.

Anonymous said...

I hope no one believes that statement. The SEC Form D for Madison Timber lists Pinnacle Trust. https://www.sec.gov/Archives/edgar/data/1475876/000147587609000001/xslFormDX01/primary_doc.xml

Anonymous said...

Verb tenses tell a lot here. The statement also did not address whether or not they directed their clients $ there or not.
Do not know if that’s relevant or not (not a financial advisement rules guy) but I did notice that too.

Anonymous said...

Can't wait for the Baker Donelson statement.

Anonymous said...

SEC Form D was in 2009. Indictment dates begin with year 2011. Looks like these guys figured out Mr. Adams scam way before anybody else.

Anonymous said...

if they figured out he was running a scam, why didn't they report him?

Anonymous said...


10:39, Pinnacle should have figured it out before the Form D. Big time red flag.

Anonymous said...

first thought: that's a "CYA" statement if I ever read one

....but, if they knew that something was fishy, did they exercise any ethical obligations and report to regulating authorities.

Anonymous said...

Pinnacle tried to start a fund in 2009 with Madison Timber but couldn’t raise enough capital. It had nothing to do with compliance concerns.

Anonymous said...

I know nothinnnnng! I swear.

Let's wait and see what any Pinnacle clients have to say - were they advised to get into the scam, or to stay away. I am sure there are plenty clients out there that have some first hand knowledge of the 'investment advice' given - and when.

Anonymous said...

HOLY SHIT. KF, you are a raging savage for your work on the picture.

Anonymous said...

You issue a statement because you're suddenly hemorrhaging money.

How convenient of Stacey to direct all questions to his compliance officer.

They knew the score in 2009 when they first filed with the SEC. According to their statement above, Stacey allowed his clients to invest for two years before deciding to get them out.

If Stacey didn't understand it was a fraudulent scheme in '09, why in the world would anyone trust him to invest their money today? A 10%+ guaranteed rate of return on a commodity? During a recession?

Nope. Not buying any of it (Stacey's story or his investments).

Anonymous said...

Stacey Wall was a guest at Drake's engagement party.

Anonymous said...

I'm with 10.31 AM: It will be interesting to see how Baker Donelson plays this one. I have seen specific names in the comments on these posts, and somewhere in the docs (the Complaint, I presume) it stated that there were attorneys who were promoting the investments and were paid $4M in fees between the two of them. It seems pretty clear that BD had people involved.

If that is the case, there is no way BD can spin this. Two of your shareholders were promoting investments in a massive Ponzi scheme. It was either ignorance or malice - neither of which looks good for a blue-chip law firm.

Anonymous said...

I had honestly never heard of "Madison Timber" before this broke (guess I'm not elite enough to have been approached), but just random talk among my workout buddies the past two mornings found one investor in this scam (local MD) and two others that had been approached (but did not invest) by PINNACLE TRUST making this press release comical.

To follow up on 10:20, you don't get to the stage of being listed as a promoter on SEC docs (both Stacey Wall and Pinnacle itself are listed right below Adams) without having done due diligence. Wall isn't a dumbass, but may be a crook.

To 10:10, any "stellar reputation" Pinnacle once had was burned to the ground under the reign of the now-deposed Jeremy Nelson. Will be tough for Wall to recover from letting that turd run his firm AND being involved with the engineer of the biggest Ponzi scheme in MS history.

Anonymous said...

Pinnacle needs someone else handle their press releases. This is terrible. I wasn't sure of Pinnacle's involvement, but this makes me think they pushed the deal for a while, clients questioned it, so they quit pushing it. The supposed Pinnacle commenter the other day said they dropped it after it didn't get enough funding.

Anonymous said...

Yes, they need to explain this (put it in Google): Madison Timber SEC Form D

Anonymous said...

Baker shouldn’t have to spin it very hard, apparently a bunch of their own partners invested and were also screwed. Is no one talking about Butler’s involvement because that con man Billings had the intelligence to get out before he was caught when he was selling on their behalf? Or did BS find out and send him packing before all the damage was discovered?

Anonymous said...

Century Club members. Big names. Serious $$$. Move over Epps.

Anonymous said...

This leads one to ask "How solvent is pinnacle". I can assure you, that if I had money with pinnacle and had been approached about this Ponzi scheme, I would get my money out (if you can, and if it is still there) asap. Before this is over, there is a very real possibility that someone who had at one time been invested in this product will have to send the money back (Clawback).

Anonymous said...

Have you ever attempted to acquire financial documents from a bank or any other financial institution that are more than 7 years old? In my recent experience they don't exist. 7 years seems to be "the ancient document" threshold.

Anonymous said...

“I did not have sex with that woman, Miss Lewinsky!”

Anonymous said...

Their own statement contradicts their claim of no involvement:

"Since that time, Pinnacle Trust has not directed nor managed investments for Madison Timber Company or any affiliates".

The words "since that time" clearly indicate that at some earlier time Pinnacle was indeed involved.

Anonymous said...

Do we know what event triggered the investigation. It seems Ponzi schemes are usually discovered/investigated when either the perpetrator runs out of new investors to the point that he can't generate funds to keep paying out, or a client or employee realizes it is too good to be true and reports.

A lot of commenters are asking whether pinnacle or the other entities had a duty to report their suspicions. But we do not know if they did report. The US Attorney's office for the Southern District of MS does have a tendency to leave wrongdoers in place to continue wrong doing while they try to make a case. Think Ivon Johnson who was left in place for over a year while they tried and failed to make a case against RSS.

Anonymous said...

Rumor I’ve heard is it was a husband and wife who are both doctors that live in Eastover that tipped off the feds.

I’m hearing a lot of local physicians fell for this investment scam.

Anonymous said...

Where did Jeremy Nelson land? Found out he was gone- but nobody seems to know where to....

Anonymous said...

Did Baker D represent him? This WaPo article just says their lawyers lost money. https://www.washingtonpost.com/national/prosecutors-mississippi-man-stole-more-than-100m-in-scheme/2018/05/01/a3fc94ba-4d6f-11e8-85c1-9326c4511033_story.html?noredirect=on&utm_term=.437b466f2fb9

Anonymous said...


H.C. "Buster" Bailey is an expert at a PONZI scheme....Just look a what he did to the investors in First Investments---he is trying to pay $26,400,000 back to people that trusted him. I personally think he will never get it paid back. I would like to know what he did with that kind of money ???????????

Anonymous said...

Jeremy Nelson - Element Wealth

Anonymous said...

A big part of this type scam is having a large sales force with each seller making a few bucks. Who sold this fake investment??

Anonymous said...

Everyone at Baker Donelson is being mighty quiet if their only involvement was a few attorneys losing money.

Anonymous said...

1:56. Is he the developer interested in the “tourist attraction” turned TIF bond issue associated with the unanimous MSC decision of illegal zoning in Ridgeland, MS?
Bible Belt Mississippi? Sad!

Anonymous said...

We were for Madison Timber before we were against it... sounds familiar... lol

Anonymous said...

Pinnacle's logo says "Pyramid Scheme" not "Ponzi Scheme".

Anonymous said...

https://myelementwealth.com/contact-us/the-team/

Shell game continues.

Anonymous said...

In the Madoff scandal, the time line for giving back your profits was 6 years. If Pinnacle shut down their involvement by 2009 as that suggests, investors should avoid a clawback, even if they profited.

Anonymous said...

How many other Repubs are getting burned like Wicker? Serves 'em right.

Anonymous said...

"In both Ponzi schemes and pyramid schemes, existing investors are compensated by the contributions of new investors. Ponzi scheme participants believe they are earning returns from their investment, while pyramid scheme participants are aware that they are earning money by recruiting new participants."

Anonymous said...

Johanna Burkett, a spokeswoman for the law firm Baker Donelson, said Alexander and Seawright are both still employed there. Their investment entities typically listed the law firm as their business address, but Burkett said their activity is “personal business of employees of our firm, and is not a firm matter.” Alexander, though a lobbyist, is not a lawyer.

So maybe the firm KNOWS NOTHING!?


“We are reviewing it and their involvement further,” Burkett said. “The firm did not represent Mr. Adams or his companies.”

It probably a matter of some immediate importance just how much that “personal business of employees of our firm, and is not a firm matter,” is really not a firm matter!

Burkett said Baker Donelson, based in Nashville, Tennessee, couldn’t comment further because prosecutors are involved.

It is probably helpful that the firm has some outside help checking out whether or not the firm is actually not on the hook for those "personal business of employees of the firm" matters ?!

Source for italicized quotes: https://wtop.com/national/2018/05/mississippi-senator-confirms-he-lost-money-in-fraud-scheme/

Anonymous said...

Here is the story about Wicker:

https://federalnewsradio.com/government-news/2018/05/mississippi-senator-confirms-he-lost-money-in-fraud-scheme/

So, it would appear that Brent Alexander used his access Wicker to peddle Adams' timber scheme. 5.03 - I'm with you: it's likely that Alexander got to more of his Washington buddies and hit'em up for some green, earning his commissions. I am almost certain that he is the promoter that was paid $2.4M. If Adams is as big a clown as many have commented on these blog posts, he needed someone with legitimacy (ahem...) to help him raise funds. Alexander was one of his front men.

Anonymous said...

Putting your name on SEC documents for Ponzi schemes does not make you liable. That is nothing but fake news.

Anonymous said...

“We’re a financially stable and strong company. Earnings are strong,” Lehman Brothers in September 2008. Sound familiar?
Bet there’s a run on PinnTrust as they aren’t too big to fail.

Anonymous said...

To be fair, you really can't rate the stability of companies and individuals because they had some "touch" with this guy. He was obviously embedded in the economic establishment. That doesn't mean that all the players cheated somebody (Butler Snow, Baker Donelson, Bank of Clarksdale, River Hills Bank, etc.). Sure- they got duped or were on the margins. That doesn't mean that we all need to get our investment or legal advice from a strip mall in Petal or Laurel. Crooks happen- its unfortunate.

Anonymous said...

I know the people at Pinnacle and trust and believe in them fully.
Their track record with me is impeccable and my account has flourished under their guidance.
That’s what I know personally and I stand with that instead of the speculation and rumors of posters who have no personal knowledge about any of this.
If you have questions or concerns, go meet with them. If you’re not satisfied, open an account elsewhere. But for goodness sake, enough of the baseless accusations.

Anonymous said...

@10:36 - quit blaming former employees for the current mess that pinnacle has gotten itself into. It’s like Obama blaming bush for every problem when he’s seven years into his own presidency. Nobody is stupid enough to buy that.

Anonymous said...

“The main thing about money, Bud, is that it makes you do things you don’t want to do“. Lou Mannheim (Wall Street)

Bud Fox said...

"You can't get a little bit pregnant, son." Lou Mannheim (Wall Street)

Alexander
Seawright
Kelly
Billings
Wicker
The altogether ooky Adams Family (snap snap)

They're all in it and they're all knocked up.

Anonymous said...

Pinnacle is Not on the up and up, just ask anyone from the Ross Family in Rankin County and look at the current cases against them. Honesty is not their 1st priority.

Anonymous said...

5:37, if you knew Alexander you wouldn’t call him “legitimate”.

Jewel Boxx said...

"I know the people at Pinnacle and trust and believe in them fully. Their track record with me is impeccable and my account has flourished under their guidance. That’s what I know personally and I stand with that instead of the speculation and rumors of posters who have no personal knowledge about any of this."

signed - Pinnacle Compliance Officer

The phrases 'impeccable track record' and 'my account has flourished' smack of damage-control concocted by a consultant.

Anonymous said...

@4:34 AM - Hey Patrick!

Anonymous said...

After learning of all the names of prominent and brilliant people that have been scammed by the Madison Timber Mafia, I have to say the boys at Pinnacle are smartest of the bunch! They seem to be the only ones that backed out when they smelled a dead wood chuck!! Good grief look at the list.. We have Doctors, Senator, Delta Banks, affluent Blue Bloods, lawyer and law firms all took the bait.....How many of ya'll have your money with Brokers that play golf at CCJ? Did your Broker get burned? Hmmmmmmm..I'd be calling them.....IMO Pinnacle is the exact company i want watching my money when dust clears, They cant be fooled.

Anonymous said...

Stacey Wall has been pulling the wool over his clients eyes for years. How can someone who does not hold FINRA Series 7,24,65 or 66 licenses claim to manage a wealth management firm?!? I guess that is one of the details he forgot to disclose to his clients much like the multiple Ponzi Schemes he has promoted. The management team at Community Bank is surely questioning their decision to partner with Stacey Wall and Pinnacle Trust for wealth management services. The compliance officer with Pinnacle will have a hard time keeping their ship afloat.

Kingfish said...

Lost Wabbit.

Anonymous said...

ugh.... sh*% hitting fan as we speak. Know first hand Pinnacle's statement is a lie. Got to move it, move it!

Anonymous said...

Brent Alexander was main lobbyist for the Miss. Hospital Assiciation, so he had an in with doctors, hospital administrators, etc. Need to check the hospital foundations and pension funds.

Anonymous said...

Stacey is lying through his crooked teeth

Anonymous said...

I did some research on Pinnacle and they are using a “Trust” loophole to no longer be registered with the SEC or with FINRA. You can even go to the FINRA Broker Check and see where their Wealth Advisors are also no longer registered with FINRA nor the SEC. It looks like most had at least done the Series 7 previously but are no longer under the watchful eye of regulators. That is so wrong! So who is guarding the hen house? The Pinnacle fox? The one’s that I know are very nice people but I’m guessing there is more to this story as to why they aren’t being monitored by FINRA or the SEC? I start getting visions of Maddof, Enron, etc.

Anonymous said...

Trust Companies are under the Banking Commission of the state. Those advisors who are CFP's, CFA's, are still required to complete continuing education every year. Stacey Wall fought very hard to not be under the SEC, and instead form a trust company. He won.

After two years of not being associated with a broker-dealer, their Series 7, 6, 66, etc expire.

Since they are not with a Registered Investment Advisor, they will likely have to "start over" if they move to a securities firm or RIA.

2016 Hottest Reporter Poll

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Who is the hottest reporter?

Archives

Who is the Hottest Reporter in Jackson?

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).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

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.

Note: Security provided by INS
.