Friday, March 22, 2019

Cashing the Checks Until He Couldn't

Life is always about timing and the Lamar Adams case is no exception.  One poor victim bought $100,000 of phony timber investments from William McHenry and Lamar Adams literally hours before the SEC froze all of Adams' assets.

U.S. District Judge Carlton Reeves denied a motion to order the receiver to return funds on March 13.  The order tells the sad story:

On April 20, 2018, John Endris invested $100,000 with Madison Timber Properties. William McHenry moves for the Receiver to return that investment. The Receiver and the SEC oppose the motion.

On April 19, 2018, Endris gave McHenry a $100,000 check for an investment with Madison Timber Properties (“MTP”). Hours later, Lamar Adams turned himself in to federal authorities and admitted MTP was a Ponzi scheme. The following morning, McHenry, unaware of Adams’ actions the previous evening, deposited the $100,000 check from Endris into a MTP bank account at Southern Bancorp Bank. Later that afternoon, the SEC filed its complaint against Adams and in the early evening the Court entered an Order permanently freezing the assets and all operations of MTP. See Docket No. 5.

McHenry argues that the bank’s acceptance of the $100,000 deposit on April 20, 2018, and the government’s failure to reverse and cancel the check, is a violation of the Court’s Order.1 The SEC and the Receiver, with the support of the Mississippi Secretary of State’s office, oppose this request because the check was deposited before the Order was entered and it would force the Receiver to prioritize the recovery of one victim over many others.

The SEC has also moved to file a sur-reply to include two new affidavits. One of the affidavits is from Southern Bancorp’s senior vice president and he attests that the deposit was made before the Court issued the Order....

Even though Endris lost his money in the final hours of the Ponzi scheme, he must wait with the other victims and allow the Receiver the opportunity to more thoroughly complete the job the Court appointed her to do.

This motion is denied.
McHenry was indicted for securities and wire fraud earlier this year.  

Kingfish note: So Adams & Krewe was still taking money even while they were talking to the Fibbies.  Classy.


Anonymous said...

If you invest in a forest that doesn't exist, does it make a sound?

Anonymous said...

Any relation to Craig Endris?

Prosecutors say Adams would buy timber rights from landowners and then sell the rights to lumber mills at a higher price. They say Adams and his company, Madison Timber Properties did not have the rights except for a few occasions. Loans guaranteed investors 12-13 percent interest. Craig Endris, a victim of the Ponzi scheme, says he did business for about 10 years with Adams and was at the hearing.

"You go to the bank every month and put in a large amount and it's a good every month and you complete your investment with him," said Endris. "You make your money. They call you back. They're fixing to buy more timber. You want to get back in and you want another deal with us? Sure I do. Why would I not ? The last one was good, and they've all been good."

Endris tried to confront Adams in the courtroom but was stopped by a marshal.

"What would you want to do if he took your life savings?" "He's a smooth operator," said Endris. "He'll get you to trust him, and there's no reason not to believe him," said Endris.

Kingfish said...

I think John is his father. Feel free to correct me. I saw Craig in the courtroom at the hearing. I think he told one reporter Adams had ripped off his parents .

Anonymous said...

Indeed it does. WAIT! I'm mistaken. That was the sound or air rushing when McHenry's asshole tightened up.

Anonymous said...

Are you kidding me? That McHenry guy had the unmitigated gall to try to tell a federal judge how to do his job better.

Anonymous said...

Will participants like Craig, who seems to be implying that he made money over the course of 10 years, be subject to a clawback of any profits?

Anonymous said...

10 years, at 12-13 percent guaranteed. Evidently putting $100k+ in a month?

Cry me a river, this guy made millions as a result of a criminal enterprise.

Anonymous said...

So the good news in this whole scenario is that no actual trees were harmed in the investment!

Anonymous said...

John Endris IS Craigs father. Most of the money that was invested by the Endris' was John Endris' wife's family money. She was a Trolio from Canton. Old money. I've heard that it was close to 750+K loss.

Anonymous said...

"Will participants like Craig, who seems to be implying that he made money over the course of 10 years, be subject to a clawback of any profits?"

Yes, any money or anything of value received by anyone that can be traced to the fraud is subject to a claim (see the Ole Miss return of donations for example). "Profit" received by "investors" are at the top of any such receiver's list because it wasn't _profit_, it was literally money taken from Peter to pay Paul. In a perfect world, a receiver could and would get every penny obtained by Adams, the various "brokers," the "investors," even the merchants where money was spent (and return to them unused merchandise, unconsumed food and drink, etc.) and reallocate everything to put everyone back in the position they were in prior to the fraud. It isn't a perfect world at all so when the dust settles some will keep money or other things and some will lose them. The receiver's goal is to make the redistribution as equitable as possible and practical.

As to this family and their "profit" and loss, *IF* it was basically the same "family pool" of funds and that "pool" had received considerable "profit," an attempt by the family to slip in a loss claim under the guise that it is different person making the loss claim than the person who handled the "investments" and received "profits" in the past, it probably won't work out very well for that family or their shared pool of funds when the dust settles.

Cynical Sam said...

Get in line cuts.

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel


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