Tuesday, December 3, 2019

Madison Timber Update: Receiver Calls Bluff

SEC Receiver Allyson Mills asked victims of Lamar Adams' phony timber investment scheme to assign to her their rights to recover against parties such as Butler Snow and Baker Donelson.  A copy of a letter sent to the victims is posted below.

The SEC is trying to claw back illegal profits earned by Lamar Adams and  promoters of a $164 million Ponzi scheme based on phony timber investments.   Receiver Alysson Mills represents the SEC in recovering assets for later distribution to the victims.  Her efforts include suing promoters who received commissions as well as the Butler Snow and Baker Donelson law firms.  Adams is incarcerated in federal prison after he pleaded guilty to one count of wire fraud.

 Lord Snow asked the Court to dismiss her lawsuit and order both parties to submit to arbitration.  U.S. District .  The Ridgeland law firm posited the Receiver stood in the shoes of Lamar Adams instead of the victims.  Thus the arbitration agreement applied to her since she did not represent the defrauded investors.   Judge Carlton Reeves said nice try and dismissed Lord Snow's motion to dismiss.  The powerhouse law firm appealed to the Fifth Circuit Court of Appeals.  Baker Donelson as well as other defendants made similar arguments in their responses.

Ms. Mills stated in her letter:

I have discussed the issue with many of you already and thank you for your input and support. The consensu is that, to avoid the continued litigation of the issue in this and other lawsuits, investors who choose to do so will execute an assignment. The assignment states that, in aid of the Receivership Estate's recovery, the investor assigns his or her rights against the defendants to the Receivership Estate, whose purpose is to recover money for defrauded investors. I have already received assignments from investors representing more than half of the total principal due under outstanding Madison Timber promissory notes (more than $43 million worth) and I expect more.

Ms. Mills wrote she amended her complaint against Baker Donelson to state that she had standing to sue the law firm or any other parties to recover Madison Timber money because she is the court-appointed receiver and investors executed assignments giving her the right to sue on their behalf.

Kingfish note: By now, some of you are getting tired of eating the same microwave popcorn.  Here is a tip.  Go to the grocery store.  Buy coconut oil, Ghee clarified butter, and a bag of yellow popcorn.  Popcorn salt wouldn't be a bad idea although the Flavocal available online is much better and is what is used in theatres.  Might as well do it right if you're going to keep up with this mess.


Anonymous said...

She's wearing down. I knew it would happen.

Anonymous said...

Thanks for the popcorn tip, KF. I have tried (unsuccessfully) for years to come close to picture-show popcorn. I sure wish these places had drive-thru popcorn purchases.

Anonymous said...

It doesn't look like she's wearing down to me.

It is a common tactic for big law firms, with all of their limitless resources, to stretch out the case and run down the clock. They count on the lack of patience on the part of the plaintiff. It looks like Ms. Mills is simply hitting whatever is served back across the net. With the significant number of investor's assignments she has in hand, I would read that to indicate that she plans to be in this for the long haul.

Anonymous said...

The investors should wake up every morning and thank their lucky stars that a Mississippi based attorney wasn't appointed Receiver. The Mississippi good old boy network would of rolled all over them.

Anonymous said...

Mills' claims against all these firms are precision nuclear missiles. I suppose we are seeing so little activity on the litigation side because the insurers (ALAS and others) are trying to decide how much each has to pay for BS, BD, Banks, etc. I would love to see a few depositions to be honest....so many unanswered questions.

Anonymous said...

Huh? She's not wearing out, she's gaining momentum.

Anonymous said...

beware the universal law of unintended consequences. now all the names come out and defenses of due diligence (i.e. you're an idiot, investor), reasonable reliance on unrecorded deeds, etc. She just opened herself up.

Anonymous said...

This case will go to the World Court in The Hague before BD and BS will pay anything.

Anonymous said...

There is something Mills has that could make BS and BD a distant memory and our children will have only heard of them? This could be huge? Anyone heard if the jury made a decision on McHenry?

Anonymous said...

I applaud her and Judge Reeves for their honor and courage. Mills is not backing down as far asI see it. Anyone who played a part in defrauding anyone deserves a jury trial if they so choose by not being forthright whether a bank, law firm, insurance or whomever!

Anonymous said...

McHenry is hanging his hat on the 'snitch' nail. Ain't no jury involved in his fate.

Anonymous said...

Good for her. It really had to be a "her" too. The lazy ass good ole boy attorneys would have folded already at the mention of Butler Snow. This woman has balls and I wish her success in recovering funds from these dirt bags.

Anonymous said...

Did she include Ole Miss in this? Cause he gave some money to them....and would that be to help pay for the “Coach Formerly Know and Culturally Sensibility Luke” and his staff? I know, I know...I stepped in a pile of crap and didn’t mean to...just wantin to know fellers. Alright, Roger. Wilco aaaannnnnd OUT

Anonymous said...

7:09, Ole Miss has already returned the money. It was some time ago. Nice try though.

Anonymous said...

The KF hisownself wrote, "By now, some of you are getting tired of eating the same microwave popcorn. Here is a tip. Go to the grocery store. Buy coconut oil, Ghee clarified butter, and a bag of yellow popcorn. Popcorn salt wouldn't be a bad idea although the Flavocal available online is much better and is what is used in theatres. Might as well do it right if you're going to keep up with this mess."

I am REALLY getting tired of having to explain the obvious to a bunch of amateurs. Just head to the nearest theater and offer to trade the kid working the counter a grand or two in timber deeds (or elegantly simple and risk-free concert tickets - be creative!) for a supersack of the actual movie theater popcorn. It's simple (and elegant!), it obvious works in the Jackson region even on - ahem - savvy folks, and clearly, totally apropos to the situation. Sure, the kid may lose his job, but isn't screwing those looking to get a dollar out for a dime in what this whole film noir is about? Plus, it might even teach the mark, er, investor, er, victim a good life lesson.

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