The Justice Department finally got former Lamar Adams associate William McHenry. While the feds were not able to convict him for his role in the Madison Timber Ponzi scheme years ago, a jury found him guilty of lying to a grand jury this week.
Lamar Adams pleaded guilty in U.S. District Court to one count of wire fraud in 2018. The Justice Department said in that case Adams defrauded 320 investors of more than $164 million in a ponzi scheme that sold phony timber investments. The Court sentenced Adams to serve 235 months in prison. Adams operated a Ponzi scheme that defrauded 150 investors out of more than $85 million since 2005. The SEC said Adams sold bogus timber rights, deeds, and promissory notes guaranteeing 13% interest rates. Enter William McHenry.
The Justice Department accused McHenry of recruiting investors for Lamar Adams. A federal indictment for securities and wire fraud alleged he "fraudulently obtained" well in excess of $18 million from more than 25 investors in multiple states. However, the case went to trial and the jury found McHenry not guilty. Earlier post.
McHenry's troubles continued despite the acquittal. Madison Timber Receiver Alysson Mills filed a motion for contempt in 2023 against McHenry in federal court. The Receiver had obtained a $3.5 million judgment against McHenry in her clawback lawsuits. The Court found McHenry in contempt and threw him in jail in September 2023 after he failed to pay $31,450 to the Receiver as ordered. Earlier post.
U.S. District Judge Carlton Reeves ordered his release after he paid $31,450 as week later.
McHenry filed a Chapter 7 bankruptcy petition in 2021. Mills objected to the bankruptcy, arguing McHenry lied in his bankruptcy filings. The Receiver "examined" the defendant under oath at a debtor's exam in 2021. McHenry did not provide all of the records requested and "could not identify the source of any deposit into his bank accounts and could not explain how he covers his monthly expenses."
The bankruptcy was discharged in 2023 but the federal grand jury indicted McHenry for making false statements to the grand jury.
McHenry told the grand jury he did not sell any firearms before his bankruptcy was discharged even though he sold them to Van's Outdoors.
The case went through the usual paces and finally went to trial this week. The jury found McHenry guilty of one count of making false statements to the grand jury after deliberating for 20 minutes.
McHenry faces a maximum penalty of 5 years in prison and/or a $250,000 fine.
The case is assigned to U.S. District Judge Daniel P. Jordan, III. Judge Jordan will sentence the defendant on May 28 at 9.
5 comments:
Give him the max, Judge Jordan.
He looks judge like my daddy. Judge, please please don't put my daddy in jail. He has grandkids. I'll have to take my kids to prison to see him or lie & say he on a secret mission with the CIA for 5 years. The latter is the best approach.
zy because why didn’t this guy think the feds couldn’t instantly check the illegal ATF/FBI parallel construction firearms database that shouldn’t exist but does because the FBI creates a permanent log entry when a background check is performed?
He looks like the scary neighbor in Home Alone.
"McHenry told the grand jury he did not sell any firearms before his bankruptcy was discharged even though he sold them to Van's Outdoors."
And it was around this time that Van's Outdoors went through a thorough ATF enema and got slapped on the wrist about their record keeping. There was a pretty good period of time they couldn't sell guns or suppressors while the AFT was in there. I'm curious to know if they went to digging into McHenry and found some other things...The timing aligns.
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