Jackson Jambalaya

How is Seawright still with BD even after filing Chapter 7?

It appears to me that she is collecting no “new” money. There was a $100,000.00 collection which was a pre determined payment from Kelly. Since it looks like that is drying up, she appears to be perpetuating her income by filing numerous (in some case frivolous) lawsuits. Give these people their 6 or 7 cents on their dollars and move on. P.S., one avenue of investigation might be looking into McHenry’s gun and Rolex watch collections.

I realize McHenry managed acquittal; however, would it be unusual for her to 'claw back' some of the profits he realized for his involvement?

"I realize McHenry managed acquittal; however, would it be unusual for her to 'claw back' some of the profits he realized for his involvement?"

It would not be "unusual." An acquittal of criminal conduct is not a release of civil liability. In this case, McHenry being acquitted does not prevent civil actions against him under the same basic fact set of the criminal matter. In matters like this, one can easily be acquitted - even actually innocent - of criminal conduct and yet still have civil liability for monetary damage(s).

Broadly and generally, the standard for criminal conviction is "beyond a reasonable doubt" whereas the civil standard is "preponderance of the evidence" or 50.1%. If someone is criminally convicted of something that has a component of monetary damage, the criminal conviction is a strong indication supporting civil liability. However, a criminal acquittal does not foreclose civil liabillity - see the OJ Simpson situation with Nicole and the Goldman family - nor does a criminal conviction automatically "create" a civil judgment. Criminal and civil would be separate matters and regardless of what happens in the criminal or civil action, on any given(different) day, a particular judge or jury may or may not do what is expected, appropriate or even "required."

Let me tell you where the real low hanging fruit money is-
Claw back the interest income paid to early investors who never had a loss.
Why should they be able to keep a profit paid them by money taken from victims

3:34 is spot on. I know three people that made money on this early on, and then became suspicious and got out while they were ahead.

Any update on Brent Alexander? He seems to be flying under the radar.

claw back 10 years of 12% profits and the last round gets their $ back. too simple and not enough legal work

Seeing where the scheme was able to borrow $164 million over the years, how much money was owed to the victims when the shit hit the fan?

Hate to say it, but most (85%) of the early investors are also victims. They were giving him money to be able to cash their own check. Kinda funny. Dumb for old investors to have to pay. You must be jealous of a buddy who had money saved to invest and you kissed yours away on toys.

@2:18 - Thank you for that very reasoned and understandable reply to my question. I'm obviously no attorney. Again...thanks.

@2:18 PM - exactly. A very notable example is OJ Simpson. He was acquitted on the murder charge, but received a huge civil judgement, which I don't think much has been paid because his Florida mansion is homesteaded, and his NFL retirement is also protected.

Who got Michael Billings black velvet Gucci loafers?

Has the 500 acre development in Oxford been sold?

What about the 30-1A?

I am seriously dismayed that Seawright and Alexander continue to be employed by Baker Donelson.

I'm sorry to see McHenry skate, if indeed he has. He got off on the criminal charge and the only thing he had in his favor, which is apparently all he needed, was for the Chief Fraudster to testify that McHenry didn't know it was a scam. Of course he did. And he profited handsomely.

FWIW, while it seems fair to allege that a hypothetical reasonable and prudent person in McHenry's position should have been dubious, a prosecutor was unable to convince a jury that McHenry knew _beyond a reasonable doubt based upon the evidence presented_ that it was a scam. I would suggest that it will/would be much easier to convince a jury that he was negligent and has civil liability.

I would again point to the OJ situation. I don't recall the reasons now, but I remember thinking at the time that I agreed with both juries, i.e., the evidence _at the time and as presented to the jury_ and NOT with the benefit of hindsight or later information, did not convince me beyond a reasonable doubt he was criminally guilty but it certainly convinced me that it was more likely than not that he responsible and therefore had civil liability.

The real question is, "does he have the money or assets to satisfy a judgment should one be entered against him?" If he does not have it, it cannot be collected from him.

A competent forensic CPA can find the money these fraudsters have hidden away. There are certified forensic CPAs around.I know because I have used one.

"A competent forensic CPA can find the money these fraudsters have hidden away."

A few points: 1. It appears that the only source of income for some parties, and a significant source for other parties, was from the scam. 2. If the only person who truly KNEW it was a scam was Adams, there would have been little reason for anyone else to "hide away" any monies received. 3. I'll accept that many of those receiving monies didn't actually KNOW it was a scam (which doesn't excuse their negligence, civil liability, or blind & stupid greed). 4. It appears all those who got anything out of the scam lived relatively "large," i.e., at the limit of, or even in excess of, their income, whatever the source(s). 5. Lawyers, especially criminal defense attorneys, are expensive (see, for example, the various filings of Seawright and Alexander).

Now, is it possible that some of those involved have relatively small amounts "hidden away" or in portable, off-the-books assets like guns, jewelry/watches, bullion, etc.? Sure, not only possible, it would not surprise me if one or more of the parties do have minor amounts ($10-100K kinds of amounts) in such things. But do I think McHenry or any of the others put the bulk of what they allegedly received as a result of Adams' scam into offshore accounts or "portable assets" and that spending 10s of thousands of dollars on attorney's and forensic accountants' fees _per party_ would uncover 100s of thousands or millions of dollars _per party_? Nope, and in fact, I think the fees could easily exceed any recovery of "hidden" assets; admittedly, primarily because, as above, I just don't think the recipients ever had significant amounts left to "hide" after lifestyle funding.

"A competent forensic CPA can find the money these fraudsters have hidden away."

A few points: 1. It appears that the only source of income for some parties, and a significant source for other parties, was from the scam. 2. If the only person who truly KNEW it was a scam was Adams, there would have been little reason for anyone else to "hide away" any monies received. 3. I'll accept that many of those receiving monies didn't actually KNOW it was a scam (which doesn't excuse their negligence, civil liability, or blind & stupid greed). 4. It appears all those who got anything out of the scam lived relatively "large," i.e., at the limit of, or even in excess of, their income, whatever the source(s). 5. Lawyers, especially criminal defense attorneys, are expensive (see, for example, the various filings of Seawright and Alexander).

Now, is it possible that some of those involved have relatively small amounts "hidden away" or in portable, off-the-books assets like guns, jewelry/watches, bullion, etc.? Sure, not only possible, it would not surprise me if one or more of the parties do have minor amounts ($10-100K kinds of amounts) in such things. But do I think McHenry or any of the others put the bulk of what they allegedly received as a result of Adams' scam into offshore accounts or "portable assets" and that spending 10s of thousands of dollars on attorney's and forensic accountants' fees _per party_ would uncover 100s of thousands or millions of dollars _per party_? Nope, and in fact, I think the fees could easily exceed any recovery of "hidden" assets; admittedly, primarily because, as above, I just don't think the recipients ever had significant amounts left to "hide" after lifestyle funding.

Attn 8:31. Well written Mr. McHenry.

"Attn 8:31. Well written Mr. McHenry."

1:10PM, Jan 9, responding:

I'm not Mr. McHenry so I have no idea why he copied my post...(smirk).

That said, I have no problem with Mills (or anyone else) leaving Adams, McHenry, Seawright, Alexander, and the other folks involved in this scam standing on a corner (or in prison) with nothing but the clothes on their backs, but I also know it won't help the "investors," especially those who are less-sophisticated victims actually conned by these douchebags, to eat into the recovery amount by spending dollars to chase dimes. Fortunately, I suspect that Mills and the other recovery attorneys know that. Plus, I'm not going to track down and review fee agreement but I'd hope it disincentivized doing such things.