Wednesday, May 23, 2018

McHenry sues Lamar Adams for $10 million, claims he was duped.

William McHenry sued Lamar Adams for $10 million on May 16 in Madison County Circuit Court. Adams pleaded guilty last week in federal court to one count of wire fraud as he admitted to defrauding 250 investors out of more than $100 million by selling them phony timber investments. A victim sued Adams and McHenry earlier this month. McHenry answered the lawsuit and included a cross-claim against Adams in the response.
Highway 22 invested $169,500 in an investment plan sold by Madison Timber Properties. Adams was the sole owner of MTP. The complaint claims that McHenry sold the bogus investment to Highway 22. McHenry had known the agent of the trust, Sherri Hughes, and her family for years. The lawsuit claims that he exploited the friendship to gain her trust and sell her the investments. Ms. Hughes discovered when a check bounced on May 1 that the deed was bogus and the property that was the collateral for the investment did not exist.

McHenry claimed he was a victim as well. His cross-claim states:

2. Prior to the last days in April 2018, McHenry had an amicable business and personal relationship with Adams. On several occasions, McHenry and Adams, along with other investors, purchased real estate for investment. McHenry was aware of Adams’ successful business dealings with a number of sophisticated, successful businessmen and financial and investment advisors. From these business and personal dealings, Adams gained McHenry’s trust. McHenry’s experience with and observations of Adams dealings with others gave McHenry the belief that Adams was a sophisticated, highly competent businessman who was reliable, honest and had integrity. Unbeknownst to McHenry, Adams exploited McHenry’s trust and confidence in his business acumen.

3. Adams’ scheme to defraud included representing to McHenry, H-22, Eddie Abdeen and others “that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price.” As part of the scheme, Adams created “false documents to lull” McHenry, H-22, Eddie Abdeen and numerous others to believe participation in the timber financing was safe and secure. In that respect, Adams “created false timber deeds” and “forged the signatures of landowners” in order to make the financing arrangement “appear legitimate.” To aid his deception, Adams had “documents  notarized  to  make  the  investments  appear  legitimate”  to  McHenry,  H-22,  Eddie Abdeen and others.....

6. Adams betrayed and duped McHenry into believing the timber financing loans were secure while providing an attractive rate of return. In short, McHenry had no idea or inkling Adams was a crook.

7. As a direct result of Adams’ fraudulent ponzi scheme, McHenry was named a defendant in this lawsuit and has suffered injury to his good reputation and name in the community  and  with  the  people  who  he  introduced  to  Adams  and  MTP  through  adverse publicity and his being unfairly associated with Adams’ fraudulent scheme.  Adams and MTP’s fraudulent ponzi scheme has exposed McHenry to this legal action and other potential claims as well as costs of defending himself and his good reputation....

The case is assigned to Judge John Emfinger.  Attorney Frank Trapp represents McHenry.

Earlier Posts
A look into how the timber scheme worked.
SEC opposes Delbert's opposition.  
 SEC wants receiver in Ponzi scheme case, Delbert opposes.
Victim sues Timber Trolls 
Lamar Adams pleads guilty.  
SEC: Ponzi scheme began in 2004. 
Flashback Friday
Clearcutting the timber. 
Wicker wobbed in Ponzi scheme.
Pinnacle Trust issues statement on Ponzi scheme
Lamar Adams waives indictment.
Feds: Lamar Adams took over $100 million in Ponzi scheme.


Anonymous said...

Well...what the hell do we expect McHenry to say? "Wudden nunna me!"

There's a lawyer on every street corner.

Anonymous said...

I'm sure Adams will clear all of this up. Good luck collecting Bill.

Anonymous said...

If you think Frank Trapp is just some "lawyer on a street corner," you're sadly mistaken.

Anonymous said...

This is so funny! The most arrogant think they know more than everyone else and are smarter than everyone else and this guy played to their ego! They get what they deserve. Had they not won the vaginal lottery, they wouldn't even be involved! Rock on HWY 22!

Anonymous said...

Lawyers suing lawyers, salesmen suing salesmen?

Anonymous said...

The banker is the third leg. When is his name going to be included?

Anonymous said...

Good luck getting even 1% of that, pal.

Oh, wait! I heard his wife has "plenty" of her own family money. Maybe people should sue her.

Five Star Duck Club said...

All these people that were 45 degrees into this thing with Lamar - partnering with him, vouching for him, selling his futures, accepting lots of money from him - and not a single one knew about the fraud.

William dindu nuffins
Brent dindu nuffins
Jon dindu nuffins
Mike dindu nuffins
Vickie Lynn dindu nuffins

Yeah, sure.

Anonymous said...

I thought I saw some family members carrying very heavy Halliburton cases boarding a Gulfstream V jet that was heading to the Cayman Islands, but I could be mistaken (maybe it was Switzerland or Barbados).

Posting for a friend.

Anonymous said...

4:18 may be on to something.

Anonymous said...

All it will take is production of one single email from McHenry dated a year or so ago, sorta like...."Fuck 'em. They deserve what they're gettin'. I gotcho timber. See ya at the 19th hole!"

Anonymous said...

This is just the latest episode of "Days of our Lives"....

Just wait till Stefano DiMera's name is brought into this

Anonymous said...

@7:03 the Dimearo don would be laughing his evil butt off at this. And wishing he had been in central MS instead of Salem.

Anonymous said...

I bet they all voted for Phil, Tater and Tweeter.

Anonymous said...

People do not hire Frank Trapp because things are going well for them. He believes the best defense starts with a strong offense. Mc Henry is trying to confuse the issues.

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