Madison Timber Receiver Alysson Mills submitted her required 90 day status report to U.S. District Judge Carlton Reeves recently. There is no new news in the report as Ms. Mills documents her slog to recover funds for the victims of Lamar Adams.
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. Adams is incarcerated in federal prison after he pleaded guilty to one count of wire fraud. 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. Butler Snow settled for $9.5 million. Mills and Baker Donelson are still slugging it out in federal court. However, Ms. Mills went after several banks as well.
The Receiver sued Trustmark, Bankplus, River Hills Bank, and their employees in federal court, alleging they made it easier for Lamar Adams to carry out his Ponzi scheme as their customer even though Trustmark and Bankplus submitted suspicious activity reports about Adams to the federal government. The Court approved the settlements in October.
Mills stated in the September status report she also collected $21,631,082 from other sources such as Butler Snow, the Adams family, and various LLC's. The total collected will be $40,831,082. A nice sum of money but only unfortunately 25% of what was stolen through fraud.
The new status report states there are only two major outstanding lawsuits. The defendants are Baker Donelson (including Jon Seawright and Brent Alexander) and the UPS Store Madison.
Both corporate defendants filed motions to subpoena all 218 victims in the Madison Timber fraud. Mills opposes the motion, arguing there is no precedent for such discovery.
The status report is posted below. It should be noted that Ms. Mills has not sued any investors who enjoyed profits in the scheme.
20 comments:
"It should be noted that Ms. Mills has not sued any investors who enjoyed profits in the scheme." and that my friends is where the rest of the recovery would lie.
Does anyone know the amount needed to recover what was outstanding to investors, the moment it fell apart? If she recovered all of what was “fraudulent unearned interest income”, who would be the beneficiary? The investors would probably just get it all back. I wish I would have had some cash to invest. I would imagine those who lost some in the end, probably made a fortune while it was good.
How does the Madison UPS Store get mixed up in this?
The low hanging fruit was picked a while back.
Given the effect of inflation, together with lost investment opportunities, the actual recovery to the victims will be about 10 cents on the dollar, if that.
Were many elderly and vulnerable people financially ruined as a result of the fraud?
The minimum to invest was $100,000.00. The investors were not short on cash and as vulnerable as the heirs would like you to believe. That would make a great news story, but you now know that the so called investors that lost, probably made bank in earlier investments. They aren’t raising hell because they scared they’ll lose the profits they made before Lamar ran out of new money.
It’s probably a wash to most who lost.
UPS employees allegedly notarized bogus documents Lamar asked them to notarize. They knew his name and obviously knew his name wasn’t on the signature line. You know why lawmakers pass laws to force people to buy E&O insurance? If the attorney gets hungry, it can sue and a lot of people just settle for whatever their insurance will pay. Most attorneys start out good people, but they become greedy slime balls.
Notaries have to be bonded for potential mistakes. UPS is holding the cash.
I am very interested to see how this individual discovery to the claimants issue gets resolved by the court. That is an interesting issue and very relevant to my practice.
@3:41 PM Their notary public was notarizing documents.
What's a slog and it used here as a cheap shot?
There was NOT a $100k minimum investment.
I made 8 mm ….he paid me in bitcoin
Fools the rest
11:08. How much did you invest and how much did you make? What was the minimum?
I know a notary has to verify identity.
But notaries do not have to read documents.
So the lawsuit against the notaries alleges the notaries did not verify identities and/or knew the person signing was not the actual person?
If a notary has to verify the truth of documents, who in their right mind would want to be a notary?
Somebody chime in.
As long as McHenry, now a millionaire (bankrupt - wink wink), is allowed by this woman to skate, nobody has a grain of confidence in the justice system or her personal, money-making scheme.
I know McHenry. This was not his first rodeo!!!!!
O5:41 A notary only has to verify the identity of the person signing the documents and must be in person. Bank officers, along with others were notorious for trying to hand deliver documents to be signed but without a notary present. After the fact would blame errors on the notary or bank clerk, which was a lie & they knew it from the get go! A notary does not have to read the entire document, just the part requiring the signature. The notaries should have know better & more than likely were being paid by Lamar Adams for doing this.UPS Store should have had a supervisor present at these times and is accountable also.
Should the people that profited from the scheme be considered “victims?”
Federal inmate search shows Seawright is now serving time.
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