Madison Timber Receiver Alysson Mills submitted her required 90 day status report to U.S. District Judge Carlton Reeves on March 31. The report 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. There is little new information in the report as there are only two remaining lawsuits against UPS and Baker Donelson, Jon Seawright, and Brent Alexander. Alexander is a former Baker Donelson employee while Seawright was a partner at the law firm.Mills stated she was unable to settle the Baker Donelson lawsuit. The case goes to trial on April 20. The Receiver said the trial is "expected to last weeks."
The settlement conference with UPS was more fruitful. Ms. Mills said UPS agreed to a settlement in principle but it has not been finalized.
The report provided an update on criminal cases:
* Jon Seawright served a 366-day sentence.
* Alexander is serving a 60 month probation term and is on house arrest for two years.
* William McHenry: Although he was acquitted of fraud in the Madison Timber prosecution, a federal jury found him guilty of lying to a grand jury after he got caught selling a large collection of firearms during bankruptcy and hiding it from the Court. He will be sentenced on May 28 before U.S. District Judge Dan Jordan, III.
Mills obtained a $3.47 million judgment against McHenry for his role in the Ponzi scheme. However, she only collected $48,178 from McHenry.
JJ estimates the amount Mills collected from various defendants such as those mentioned above to be approximately $42 million.
Ms. Mills still has not filed any clawback lawsuits against investors who received profits from the Ponzi scheme.
12 comments:
I must be overlooking the Baker-Donelson war machine at the ready.
many big white shoe law firms involved in this. where is the mississippi state bar association ?
probably busy trying to decide on where to go to lunch.
I wonder if William McHenry sold any cool/interesting guns, or was it just lever actions and revolvers?
Mills has done little more than set herself up for a life of luxury & leisure on this thanks to her daddy's connections. Until she goes after the greedy "investors" who profited from this scam, she's nothing more than a pawn.
As to our esteemed MS Bar, the fact that the Butler Snow attorneys joking about the fines being less than the commissions and that BS and Baker have received proverbial slaps on the wrist for RUNNING A PONZI SCHEME shows what a joke lawyers being able to regulate themselves truly is.
Could someone explain the notary angle? As I appreciate notaries, they don't claim that the underlying documents are true and correct. A notary is there to verify that a person's signature is genuine. I can see a lawsuit if someone is notarizing false signatures. But how is a notary liable if the documents have authentic signatures?
@10:32 - I imagine Seawright’s license has been revoked or will be by the time his sentence is up.
My guess is they real are not liabile, but UPS has enough insurance to warrant the Administrator trying to get something out of them.
12:33
Hit up @3YearLetterman on Twitter.
This is going to be good. Mills v. Baker Donelson. I don't think a lot of lawyers would take on Baker, Butler, UPS, the Banks, etc and Mills has been successful thus far.
But, I'm sure the Baker lawyers are billing this file to oblivion and have plenty of arrows in their quiver. Enjoying reading about this.
@12:25
BS, who settled, received commissions. BD, who has not settled , received no comissions. Facts matter.
Everyone who made a dime should have been sued….
They notarized paperwork without witnessing signatures. It's just that simple.
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