Sunday, January 22, 2023

Receiver Complains of Foot-Dragging in Madison Timber Recovery

The receiver's clawback lawsuit continues to wind (or is it wither) away in U.S. District Court.  

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.   Receiver Alysson Mills represents the SEC. She recovers assets, distributes them among the victims, and provide progress reports to the court every 90 days to the court. Adams is currently incarcerated in federal prison after he pleaded guilty to one count of wire fraud.   The case is assigned to Judge Carlton Reeves.

Judge Reeves appointed Ms. Mills in June 2018.  The Receiver said she has managed to recover and distribute $17.5 million to victims.   However, receivers efforts to recover against such prominent businesses as Trustmark, Bankplus,UPS,  and the Baker Donelson law firm continue to drag on in federal court.  However, Ms. Mills has an excuse: 

The Court already denied or otherwise resolved every motion to dismiss filed by every defendant in the Receivership Estate’s four biggest cases. Ordinarily, a case would proceed to discovery and, finally, trial. Typically, the court gives the parties a trial date, and they work backwards from it to prepare.

But not here. Here, the parties continue to exchange written discovery only. I filed the first of the Receivership Estate’s four biggest cases in December 2018. Soon four years will have passed without a single deposition.

Magistrate Judge Keith Ball consolidated all four cases for discovery, and that has slowed things almost to a halt. Defendants have asked to postpone non-written discovery (i.e., depositions) indefinitely, and so far, they have had their way. Rather than address the allegations against them, defendants have attempted to subpoena numerous government agencies—in addition to the S.E.C., the IRS, the U.S. Postal Service, the Department of Justice, FinCEN, even the United States Secret Service!—for the apparent purpose of passing blame and creating more trial-delaying litigation.

Of course, I strongly oppose the continued delay of trial of these cases. I have repeatedly asked for a trial date for each of the four cases. Without a trial date, there is little pressure on any defendant to either meaningfully prepare for trial or resolve the case against it.

She mentions Bill McHenry.  The Justice Department took a swing at the Lamar Adams cohort but struck out in federal court when he was acquitted.  The Receiver attempted to collect $3.5 million from him but the defendant predictably filed bankruptcy: 

I continue to attempt to collect on the Receivership Estate’s $3,473,320 judgment against Bill McHenry. As previously reported, I have moved to hold McHenry in contempt for, among other things, perjuring himself during his judgment debtor exam. The Court appointed criminal counsel to represent him in those proceedings. A hearing, which had been set for August 18, 2022 but was postponed to permit McHenry’s counsel an opportunity to collect information, is now postponed indefinitely because McHenry filed for bankruptcy again.

The report contains updates on other cases but the information is more of what is already posted above. 



17 comments:

Anonymous said...

Nothing is ever her fault it seems. Maybe time for a new receiver.

Anonymous said...

Welcome to litigation, sweetheart.

These lawyers are not going to lay down because Daddy is a judge...

Anonymous said...

Longer the foot-dragging = more billable hour$.

Anonymous said...

Judge Reeves needs to issue a scheduling order that includes a trial date, plus a separation of the parties.

Anonymous said...

If she this this is slow, just think if it was Judge Wingate.

Anonymous said...

Most “victims” will be dead and gone before this mess is over.
Lamar will be back on the steets.

Anonymous said...

A total miscarriage of justice was/is McHenry skating. Skating all the way to his back yard where 300 coffee cans full of money are buried. How do you have over 3 million one day and file for bankruptcy the next? The money went somewhere and if it went into assets, won't those assets be somehow held by the bankruptcy court?

Anonymous said...

Alysson is a phenomenal attorney and legal mind. Any implication that she doesn’t understand litigation is likely coming from someone who couldn’t get an LSAT score that would merit consideration from Cooley.

Anonymous said...

11:23 - she seems to be an forensic investigator rather than a litigator. I don't know anything about her...that's why I said 'seems'.

Anonymous said...

all she has to do is claw back the investor profits. why hasn't she? who is she hiding?

Anonymous said...

I was talking to a friend who claims he made $50k in the early days of the deal. Then he got suspicious and pulled his money out about a year before it blew up. He claims he hasn't heard a word from anyone about having to give his profits back.

Anonymous said...

@11:23 - Cooley (and every other law firm) doesn't care about LSAT scores. But you don't know that because you don't know what you're talking about.

Anonymous said...

Attn 12:19 I don’t believe you because anyone who is still holding profits from this scheme certainly wouldn’t tell a blabbermouth like 12:19 who would blast it on this internet site.

Anonymous said...

Hey Mr. “don’t know what you’re talking about” at 1:35 pm, Cooley is a law school, thus they would be interested in LSAT scores. Better to remain silent and be thought a fool than to open your mouth and remove all doubt.

Anonymous said...

12:19, its b/c of who would have the $ pulled back. politicians, "important" people, etc. As always, it's about who you know. Somebody needs to pull that curtain back but it will never happen. Unequal justice for all.

Anonymous said...

I know a handful of the investors who made a profit. I just don’t see how it would be fair to take from Peter and pay Paul. These folks were simply investing their retirement money and had zero idea it was a scam. Most of the folks who lost money, made profits long before the scam was brought to light and their current checks were no good. Looking back, WillBob Mchenry, gave a whole lotta money to people who were down on their luck. He’s a kind of a Robin Hood for some of the good deeds he did. I don’t have a dog in the fight, but the moralities of this whole scam are like a sparkler. The real winners are the lawyers. The losers probably had equal gains before they lost.

Anonymous said...

12:37, I suspect just about everyone came out ahead except for the last few that couldn't find a seat when the music stopped. The cure here may be worse than the disease, but we'll never know b/c its all hidden



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
.