Friday, January 31, 2020

SEC Drops Hammer on Billings in Ponzi Scheme


The Securities and Exchange Commission issued the following statement.



The Securities and Exchange Commission today announced charges against a Texas company and its principal for unlawfully selling unregistered securities in connection with the previously charged Madison Timber Properties, LLC Ponzi scheme.

The SEC's complaint, filed in federal court in Jackson, Mississippi, alleges that Michael Douglas Billings and his company MDB Group, LLC, were among Madison Timber's top revenue producers, selling more than $80 million of its unregistered securities to at least 44 retail investors. The complaint also alleges that the defendants reaped millions of dollars in commissions and other payments on their sales of Madison Timber's securities even though the securities were not registered with the Commission and defendants were not registered as broker-dealers. According to the complaint, the defendants told investors that their money would be used to finance the right to harvest timber and promised annual returns of 12 to 15 percent. In truth, the complaint alleges, Madison Timber never obtained any harvesting rights. Instead, Madison Timber's principal, Arthur Lamar Adams, forged deeds and cutting agreements and used the investors' funds for personal expenses and to develop an unrelated real estate project.

The complaint charges Billings and MDB Group with violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act of 1933 and the broker-dealer registration provision of Section 15(a) of the Securities Exchange Act of 1934. The defendants have agreed to a bifurcated settlement where they will be permanently enjoined from violating the charged provisions and the court will determine the amount of disgorgement, prejudgment interest, and civil money penalties at a later date. Billings and MDG Group have also consented to industry and penny stock bars to be issued in an administrative proceeding.

Previously, in addition to charging Madison Timber and Adams, the SEC charged Terry Wayne Kelly and Kelly Management, LLC, for their role in the Madison Timber scheme.


The court overseeing the SEC's ongoing litigation against Madison Timber, Adams, Kelly, and Kelly Management appointed a receiver to marshal funds and distribute them to harmed investors. The receiver has established a website, which contains information on the receiver's progress and on relevant federal and state proceedings.

The SEC's continuing investigation is being conducted by Justin Delfino and Krysta Cannon of the SEC's Atlanta Regional Office and supervised by Peter Diskin. The SEC's litigation is being led by Shawn Murnahan and supervised by Graham Loomis. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of Mississippi and the Federal Bureau of Investigation.

Kingfish note: What does it all mean? It means the Receiver settled with him for clawbacks of $800,000.  Now the SEC is going after Billings for selling unregistered securities as an unlicensed broker.  Interesting.








22 comments:

Anonymous said...

This appears to be a civil complaint, not criminal, but it's all good.

Anonymous said...

I’ve asked previously but received no response. Is This the Mike Billings who attended Belhaven circa 1980 and involved in College Republicans?

Anonymous said...

Yes I believe he is. Billings attended Belhaven College where he received a bachelor of science in business administration degree.

She won’t survive if so said...

Is any jail time involved?

Anonymous said...

Yes 9:52, that is he. However he converted in later years to being a democrat as he began his career of deception and thievery.

Anonymous said...

The KF is single handedly keeping Jackson honest.

The fact that this went on for so long just proves that this is the tip of the iceberg and you can be sure other Lamar's are out there peddling their own brand of bullshit.

Anonymous said...

yet another in the long line of mississippi scam artists. bernie ebbers, chris epps, lamar adams, this list is 10 miles long. and also......ye gad! worst of all....... he went to a "christian" college.
'

Anonymous said...

"Michael Douglas Billings and his company MDB Group, LLC, were among Madison Timber's top revenue producers, selling more than $80 million of its unregistered securities to at least 44 retail investors."

Am I reading this correctly? That would be an average of a hair over $1.8 million per investor. Somebody would have to be some kind of slick to talk folks with that kind of money into buying a bogus security.

Anonymous said...

903 - go further with your 'long line of scam artists', would like to further see your misunderstanding of the term.

Epps wasn't a scam artist, he was a ctook. Plain and simple - crook. The world is full of them and Mississippi does have its share. But there was nothing about 'scamming' done by Epps unless you count the sell job he put on Musgrove to promote him to Commissioner, then on Barbour and Bryant to keep him there as being a scam.

And Ebbers wasn't a scam artist either. He was a basketball player who got into a small business he kinda understood but when it started growing it way outpaced his management ability. Some of the folks he brought in to manage it's growth were not much better (some were really good) but all those folks who bought stock weren't being scammed into buying something that was worthless. And except for the greedy and the fools who bought and never thought about selling, or those who invested everything they had into the one industry, née the one company, the rest invested and we're able to make money off a legitimate registered stock on the Exchange. Not a true scam.

There have been a couple of good cases of individuals selling 'stock' in non-existent companies to our fine citizens, but they never rose to the scale of having the 's' follow the word 'million'. But just like a critical disease, these were not 'major' deals unless you were one of the folks who bought their worthless paper.

In my view, the only other good scam we have had in recent years would be that one done by the Lane's on the folks who live in 'managed' Homeowners Associations. Now that is a good true scam.

Anonymous said...

Say Cheese!

Michael Douglas Billings yall!

http://onlinemadison.com/Content/Default/Local-News/Article/Jackson-Heart-Ball-in-January-to-benefit-American-Heart-Association/-3/1/27397

Anonymous said...

The reality is that no people of color were affected by this scheme, very few were offered a chance to get in. And does that were, were smart enough to stay away. And yes as we speak some of them rot in prison for other schemes.

Anonymous said...

Wonder how this effects Matt Thornton at Butler Snow Advisory Group?

Anonymous said...

So am I reading correctly that Billings and his company sold more than 80 million dollars in this timber scam and Billings received 3.5 million dollars in commission, but the receiver settled with him for 800.000.00? WOW unbelievable. By the time receiver gets her third, not a lot left for the investors to be paid back. Sounds like she will be the only one coming out with a pocket full of money. I guess I don't understand her math or connection with Billings. Makes absolutely no sense.







Anonymous said...

Ebbers and Bilings both attended a Christian college.

Adams never went to college. But he swindled a lot of people who did. Looking at you Mr. Wicker.

Anonymous said...

If McHenry managed to skate (with the help of one guilty witness), M.D.Billings will as well. All it will take is for Sgt. Schultz to say, "He din't no nuffin".

Anonymous said...

"Christian College"? What's the suggested value of that in the grande scheme of business? Consider Dr. Lewis Nobles, deposed, prior President of Mississippi College.

Anonymous said...

10:02 it's call Math for Dummies who think they are going to get their money back.

Anonymous said...

To 10:02.
Ms. Mills is doing a great job of clawing back money for those that were scammed. This cat could have let that amount go just to a prolonged legal battle. Putting $800k back to investors is better than $0. Plus, by the time she gets her teeth into BS and BD, they may see that 10% return they were promised. She is saving the big fish for last. Popcorn at the ready. Pucker factor for BS/BD remains at level 10.

Anonymous said...

I can assure you, BS isn’t losing any sleep over this.

Anonymous said...

4:54...What's the relative value of your assurance? Let me guess.

Anonymous said...

BS surely isn't losing sleep over this, between insurance and reserves this peril is no more than an ant bite.

Anonymous said...

@3:42, you know nothing about BS or BD. Motions to dismiss pending.

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.