Wednesday, November 13, 2019

Lender Says Baker Boy Committed Fraud

A lender accused one of the Baker Boyz, Jon Seawright, of engaging in a bit of fraud when he filed bankruptcy recently.  The legal industry website Law360 reported:


A director at Baker Donelson Bearman Caldwell & Berkowitz PC borrowed more than $81,000 to insure trucks in a floundering shipping business just hours after the venture filed for Chapter 11, a Michigan financing company told a Mississippi federal bankruptcy court.

In an adversary complaint filed Friday, Kalamazoo-based Premco Financial Corp. Inc. says Jon Darrell Seawright signed a contract in January and confirmed there were no pending bankruptcy proceedings related to the business he started with a Baker Donelson colleague, Brent Alexander.

But in fact, by the time Seawright signed the contract for $81,750 on the afternoon of Jan. 18 and faxed it to an insurance agent, the trucking company, Alexander Seawright Transportation LLC, had been a Chapter 11 debtor in a Mississippi federal bankruptcy proceeding for “approximately 4-5 hours,” according to the filing.

Premco says Seawright, as AST's manager, also made similar misrepresentations in a previous contract for  insurance premium financing in 2018 when he failed to tell the company about his connections to a massive timber industry Ponzi scheme.

“Had [Seawright] told the truth and represented to Premco that in fact AST had been suffering from declining revenues, Premco would not have extended financing at the time AST entered into the 2018 contract,” the company says. “Furthermore, had [Seawright] disclosed that he and his business partner Brent Alexander were implicated in the Ponzi scheme run by Lamar Adams, based on their sales of investments in Adams’ timber ventures, Premco would not have made the loan to AST.”...

The Premco filing comes just days after Seawright, a health care partner and member of the Baker Donelson board, told a Mississippi court in his Chapter 7 filing that he owes creditors $166 million.... Rest of article.
 The case is assigned to U.S. Bankruptcy Judge Neal Olack.  









28 comments:

Anonymous said...

At this point, his continued employment at BD makes me certain that I would NOT trust that firm with anything at all. That may be unfair, but it is impossible to conceive of a good reason that the firm has not distanced itself from him except that perhaps they can't?

Anonymous said...

Maybe they don't get rid of him because he has wood (timber) on somone?

Anonymous said...

@2:24 That would be used against BD in the lawsuit as a tacit admission that they knew it was wrong for them to do what they did.

Anonymous said...

2:24 makes a good point. Why are any of these guys on the payroll? They can not be completing any billable hours can they? What investments can the firm allow the non lawyers hawk in good faith? I’m no lawyer but I would think this is negligence. Wouldn’t every client whether legal or financial have just cause if any of their work proved shoddy?

On another note how are the animals at the zoo during this cold snap? Where’s chokwe’s big announcement?

Anonymous said...

Pretty sure there is also insurance fraud as there are several questions that either the insured or the insurance agent on behalf of the insured mark "no" with an "x" on the Accord Apps(form 125) or the insurance companies apps that plainly ask the questions:

General Info question 7: During the last five (5) years, has any applicant been indicted for or convicted of any degree of the fraud, bribery, arson or any other arson-related crime in connection with this or any other property

General Info question 9: Has applicant had a foreclosure, repossession, BANKRUPTSY, or filed for BANKRUPTSY during the last five(5) years?

General Info question 10: Has applicant had a judgement or lein during the last five(5) years?

Commercial insurance companies will not hardly touch an account that has truthfully marked stating "yes" to any or all of the above.

Anonymous said...

2:45, read Rule 407 of the Federal Rules of Evidence, which governs admissibility of evidence in the federal receivership litigation. No subsequent remedial measures - such as firing their asses - could be taken as evidence of culpability. Which is all the more reason I am baffled that BD hasn't canned them yet.

Anonymous said...

@2:49

Is "BANKRUPTSY" different from "bankruptcy?"

Anonymous said...

What's a little bankruptcy fraud when you got the feds up your ass already on Madison Timber. Like he gives a damn. This is nothing other than material evidence he is actually a crook, where some may have thought he "did not know" before. Funny thing is, this act may bite him faster than the Ponzi. Does this give BD the out to actually kick him now.

Anonymous said...

In-house company lawyer here.

One thing I've noticed about Jackson big-firm lawyers, much more so than other markets we operate in, is their tendency to have side hustles.

I'm not talking about passive shares in businesses, which many lawyers have. I'm talking about active businesses that they're spending significant time managing, and sometimes subtly trying to interest you in.

You just don't see it with nearly the same frequency in places like Birmingham or Nashville, in my experience.

If a guy is so disinterested/mediocre at his legal job that he needs to spend half the workweek trying to hustle up money in another field, that tells me I need another guy.

Anonymous said...

4:41 put into words what I've been thinking for some time now. I don't know how anyone can be a competent, full-time attorney and (competently) do anything else.

3:31, The idea of firing Seawright as a subsequent remedial measure made me actually laugh out loud. I don't see why that argument wouldn't hold up in court. Maybe an evidence professor can shed some light . . .

Anonymous said...

I thought I'd been reading on this blog-site that all the local talent is LEAVING Mississippi in a giant sucking brain-drain. Stories like this blow that shit-theory out of the water.

Anonymous said...

407 is irrelevant to this discussion

It’s likely not a subsequent remedial measure but....the larger point is he is still at BD because he knows more information.

BD has to keep him employed....I imagine their ALAS insurer is quite interested in lots of details and Seawrong might be the guy who could defeat coverage for the real equity partners....

So Seawrong stays at BD but his comp is cut to damn near zero.

What would Perry Mason Say? said...

Due to the negative publicity, they may be changing their name to Dewey, Cheatham, & Howe.

Posting for a friend.

Anonymous said...

Does Seawright have to sell that big ole home near William Winter's home?

Anonymous said...

My experience with Judge Olack: he will cut through this crap very quickly.

Macy Hanson said...

Give Seawright a break. The BK Petition was only filed 4-6 hours before he signed the loan contract...

And to think of the number of times Baker attorneys have threatened me with sanctions motions for merely suing one of their clients, like poor, innocent Wells Fargo. Great folks. Worth $300-$600 an hour.

Been there, done that said...

Judge Olack will drop kick him out of the courthouse. Does anyone know who the bankruptcy trustee is? We have good Trustees who will do the right thing, too.

Macy Hansen - I'm a retired attorney who has been threatened repeatedly by arrogant, shitty attorneys at BD and BSOSC with bogus motions, too. I started filing sanctions motions against them for filing frivolous sanctions motions against my clients. LMAO because what goes around, comes around. Those two firms have bad karma which is finally catching up to them.

Anonymous said...

Macy with no due respect you deserve to be sanctioned for your antics....I notice you don't act like an ass in Federal court....

Anonymous said...

According to court records, Wells Fargo was not represented by Baker in your cases. Is that correct?

Macy Hanson said...

When you post your names, I'll give you full answers. I promise. Fair enough? (I have my guesses).

Anonymous said...

I do not understand why Alexander and Seawright are not being criminally indicted by the feds. I’m loosing all faith in the legal system at this point. What more do we need to glean about their criminal activities to put them behind bars? Are white collar criminals exempt from punishment? Furthermore, Baked Donelson should have immediately terminated these two criminals. The fact that they haven’t yet makes one suspicious of the law firms involvement.

Anonymous said...

Perhaps because neither committed a crime.

Anonymous said...

"Perhaps because neither committed a crime."

Perhaps, but don't bet on the lack of arrests being solid evidence of the lack of crimes. The Fed often move with seemingly slow deliberation on things like this because there is little danger of either of them pulling a (successful) disappearing act and little chance of making a markedly more-substantive recovery of funds for "investors" in this mess by acting sooner rather than later. Further, since those who "invested" via Alexander and Seawright were, at least in large part, better-off people looking for above-average and unrealistic returns on "investments" (rather than, for example, a bunch of elderly _victims_ of meager means barely surviving on SS and cat food), your average Fed or USA isn't likely be so sympathetic to the alleged "victims" so as to rush down to pop one cow when they can walk down and nail them all.

Anonymous said...

Perhaps but all of the other promoters have been charged.

Anonymous said...

"Perhaps but all of the other promoters have been charged."

A couple of points. Depending on what you mean by "charged," not all of the publicly-disclosed direct promoters of Adams' scheme have been "charged" in the sense the word is most-often used and understood by laypeople. Wayne Kelly, for example, was "charged" by the SEC but that was a civil action in which he paid money, etc. and settled it. But more importantly to the Alexander and Seawright situation, from what I've seen the only promoters of that "investment opportunity" (which was, as I understand it, basically a derivative based upon underlying Adams'/Madison Timber "investments") were Alexander and Seawright. It is at least theoretically possible they were just mindbogglingly stupid, negligent, and not actually aware the underlying basis of their derivative "investment opportunity" was a Ponzi scheme. If there is enough evidence to convince a USA that either or neither of them had intent of criminality, it would be the duty of that USA to refrain from charging or seeking indictment(s). It is also possible, and I'd suggest reasonably likely, that not every shoe has dropped in the entire situation.

Anonymous said...

No reasons for the feds to be waiting if there were proof of a crime.

Anonymous said...

"No reasons for the feds to be waiting if there were proof of a crime."

Put in very simple terms, in the US criminal system the finder of fact - a jury or a judge acting as the fact-finder - decide what is or isn't "proof" of a crime, just as they determine guilty or not guilty. Federal agents, cops, prosecutors, defense attorneys, judges other than in a fact-finding role, etc. deal with alleged facts and evidence. In the US system both terms only mean what the evidence proved to that particular fact-finder beyond a reasonable doubt, and "not guilty" does not mean the same thing as "innocent."

Anonymous said...

Ok, evidence of a crime.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

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
.