Wednesday, September 23, 2009

Steadivest update: Investlinc files Motion to Dismiss

The Steadivest scrum heats up as Investlinc filed a Motion to Dismiss the Plaintiff's Complaint Friday in Rankin County Circuit Court. Several individuals who invested in Steadivest sued Marshall Wolfe, Jack Harrington, Joel Travelstead, Justin Adcock, the Steadivest companies, and Investlinc/TFS Investment Fund. Their lawsuit claims the defendants induced the plaintiffs to invest in Steadivest while hiding the true financial condition of the company as the defendants sold them worthless promissory notes. While the motion seeks to knock the complaint out of the court, it aims a withering barrage of fraud accusations against Mr. Wolfe and his fellow defendants. Earlier post on lawsuit, Motion to Dismiss

The Motion states Marshall Wolfe owned and managed the Steadivest Companies and worked for the company that "managed and invested monies for the Investlinc Fund - which is a distinct and separate entity from the Steadivest Companies." Investlinc then throws Mr. Wolfe under the bus: "As he did with the Steadivest Companies, Wolfe deceived, betrayed, and victimized the Investlinc Fund and its investors. Investlinc accuses the Plaintiffs of trying to hold Investlinc responsible for Mr. Wolfe's actions even though they invested their money in Steadivest, not Investlinc. Investlinc states Mr. Wolfe was never an officer or director of the Investlinc Fund and that the Plaintiffs are "mistaken" about this fact. Wolfe is accused of defrauding Investlinc:

"As losses mounted, Wolfe was not able to find enough new lenders/investors for the Steadivest Companies to fund interest and dividend payments. Wolfe's solution was to start fleecing the Investlinc Fund and its investors.... (p.9)
Once Wolfe cheated the Investlinc Fund of its money, the Steadivest companies could no longer make interest and dividend payments to their lenders/investors. His scheme collapsed and the companies imploded. The Steadivest Companies filed bankruptcy and the Investlinc Fund was stuck holding illiquid, non-income producing and defaulted junk loans and properties it purchases from the Steadivest Companies at grossly inflated prices."

One question to ask is exactly what was Mr. Wolfe's role in the Investlinc/TFS Income Fund LLC. According to the fund's SEC filing, the address is 4 Country Place in Pearl, the same as the address for the Steadivest companies. Tactical Financial Solutions is listed as the General/managing partner. Mr. Wolfe is listed as the sole member of TFS (Business ID# 902236), with Wolfe, Harrington, and McRaney listed as Executive Officers. Lee Paris is described as a promoter. Harrington signed the forms as Chief Financial Officer of TFS. It should be pointed out Investlinc is a broker/dealer company and Investlinc/TFS Income Fund is a hedge fund (therefore the Reg D filing), and that there are several other companies in Mississippi carrying the Investlinc name. However, it should be noted that the promoter of the Fund, Lee Paris, is listed as President of Investlinc Securities, LLC (Business ID#711010) on the Secretary of State's website. SEC filing for Investlinc/TFS Income Fund. Mr. Wolfe managed the fund but did not work for Investlinc Securities. It is rather confusing at times when there are soooo many companies with such similar names run out of the same office with the same managers and members.

Regardless of whether Wolfe worked for Investlinc, Investlinc didn't mince any words in its Motion in accusing Wolfe of "fleecing" Investlinc. If Investlinc does indeed think Wolfe committed fraud and is making these allegations in good faith, it should sue Mr. Wolfe if the Motion is denied.

Note: One interesting little fact is the day before Investlinc/TFS placed liens (Earlier post) on Steadivest properties (and signed for both companies in many cases), Mr. Paris set up Meadowbrook Capital, LLC and is listed as the sole member and CEO, according to its filing with the SOS and FINRA. According to FINRA, Meadowbrook and Investlinc Securities have the same address, 4266 I-55N, Suite 106 in Jackson. FINRA lists Meadowbrook Capital as the majority owner of Investlinc Securities. Thus, Mr. Paris is the majority owner of Investlinc Securities through Meadowbrook Capital. FINRA filing

Earlier post on Steadivest:
Steadivest: snakes or snake-bitten?
Steadivest defendants were disciplined in 2005


Anonymous said...

Wolfe needs to be in a band. He is one of the best I have ever seen at playing musical chairs. I bet these corporate veils will be eaisly pierced. Was his wife in charge of the one he had nothing to do with?

Kaptain Kangaroo said...

Kapt here...

So I've tested the waters to see if my ID will post.

Did you block me? Why?

I'm a mid 30s professional who happens to enjoy your blog.

I just happened to agree with Mr. C's assessment of your post.

I certainly hope that my opinion has not brought out the hands of censorship...

I get it, its your blog, but you are starting to make a loyal poster question your tactics.

Had to post anonymous....hmmmm.

Kingfish said...

In fact, now that I think more about it, why isn't Butler Snow asking in the alternate that if motion is denied, that they seek damages from other defendants for the alleged "fleecing".

Also interesting how they say Wolfe was not an officer of the fund yet their SEC filing has him down as an Executive Officer and the managing partner is the company completely owned by Wolfe. Not to mention all those deeds of trust were Wolfe signed his name as manager of investlinc/TFS when creating those questionable liens.

Kingfish said...

Nope. wasn't me. keep posting. Blogger has its share of hiccups.

Kaptain CAAAveMAAAn said...

Dag! I was hoping I was banned, then I would get a pulpit. But unfortunately the great powers of Blogger do not feel I am entitled listing under my name. However, I do find the new posting under name and URL quite fun. It adds a new dimension to my post.


Captain CAAAAAAVVVE MAAAAAAAN! That was my other choice of ID.

Anonymous said...

If what they say is true, then if they don't win their motion to dismiss I bet they file a whopping counterclaim against wolf and the plaintiffs

Powerful Firm said...

Funny, I just skipped to the end. Saw Butler, Snow, yada, yada, yada...and thought, where is this money coming from to defend the two corporations???

Kingfish said...

Who said anything about defending both of them? Seems like one of them just threw the other to the wolves. two things will tell us if their argument was made in good faith: they jump in on the BK and sue the other defendants for their "fleecing" as they called it in their motion.

Anonymous said...

My head is spinning from all this mess. I need a diagram to understand the players involved. Why would investlink sue the plaintiffs????

Anonymous said...

The InvestLincITFS Income Fund, LLC (the "InvestLinc Fund") and The InvestLinc
Group, LLC (the "InvestLinc Group") (collectively, the "InvestLinc")

This would be the two corporations I was referencing.

Anonymous said...

The old shell game. Guess which one the ball is under? Nursing homes have been getting away with it for years. Those Type A's at butler snow will do their best to confuse the shit out of the circuit court judge. The goal at the end of the day is to have Wolfe as the lone standing plaintiff and his pockets will long be empty. Plaintiffs should file a simultaneous chancery court petition for an accounting of all these companies.

Anonymous said...

Is there a criminal investigation going on at this point?

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