msbulldog
05-03-2018, 06:29 PM
The ringleader in this is shown wearing a TSUN visor:
U.S. Senate Roger Wicker is one of the investors that a Madison businessman is accused of bilking in what authorities call a Ponzi scheme involving more than $100 million.
Arthur Lamar Adams, 58, is scheduled to enter a guilty plea Wednesday.
Adams is accused of defrauding at least 250 investors in at least 14 states. He is charged with two counts of wire fraud and one count of bank fraud.
"My wife and I are victims of this apparent fraud," Wicker said in a statement late Thursday. "Like many others who stand to lose money in this scheme, we are very surprised and disappointed. We are learning of this through news reports like everyone else. We are seeking answers as to how this happened and will continue to monitor this matter closely."
Adams' attorney, John Colette, said Thursday Adams will plead guilty to one count of wire fraud as part of a plea agreement.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
Authorities said the scheme worked by recruiting wealthy investors to invest at least $100,000 each in Adams' company, Madison Timber Properties.
The Associated Press on Thursday reported that Wicker invested through the Alexander Seawright Timber Fund LLC, incorporated by noted Jackson lobbyist Brent Alexander and attorney John Seawright, who both work for the Baker Donelson law firm. A firm spokeswoman told the AP that Baker Donelson did not represent Adams and the work was personal business of Alexander and Seawright.
Charges against Adams say he paid $4 million in commissions to two unnamed recruiters.
Adams' company bought timber rights from landowners and then sold the rights for higher prices to lumber mills. The investors were to provide their money for loans to purchase the timber rights.
Adams entered into investment contracts with investors, promising a 12 to 13 percent interest rate return over roughly a year.
But federal prosecutors and regulators say it was all a lie and nothing more than a Ponzi scheme.
Adams created false timber deeds and required investors not to file their timber deeds unless his company defaulted on the loan agreement by failing to make a payment.
Prosecutors say Adams was using money from investors to pay other investors or by obtaining bank loans. At one point, his company, Madison Timber Properties, had less than $1,000 in accounts.
The charges against Adams came after the U.S. Securities and Exchange Commission filed a legal complaint against Adams and his company.
The SEC said since approximately 2004 Adams has been directly or indirectly involved in the sales of securities by any means of transportation or communication, mail, or scheme to defraud.
More: Mississippi man charged in Ponzi scheme across multiple states
Contact Jimmie E. Gates at 601-961-7212 or jgates@gannett.com. Follow him on Facebook and Twitter.
U.S. Senate Roger Wicker is one of the investors that a Madison businessman is accused of bilking in what authorities call a Ponzi scheme involving more than $100 million.
Arthur Lamar Adams, 58, is scheduled to enter a guilty plea Wednesday.
Adams is accused of defrauding at least 250 investors in at least 14 states. He is charged with two counts of wire fraud and one count of bank fraud.
"My wife and I are victims of this apparent fraud," Wicker said in a statement late Thursday. "Like many others who stand to lose money in this scheme, we are very surprised and disappointed. We are learning of this through news reports like everyone else. We are seeking answers as to how this happened and will continue to monitor this matter closely."
Adams' attorney, John Colette, said Thursday Adams will plead guilty to one count of wire fraud as part of a plea agreement.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
Authorities said the scheme worked by recruiting wealthy investors to invest at least $100,000 each in Adams' company, Madison Timber Properties.
The Associated Press on Thursday reported that Wicker invested through the Alexander Seawright Timber Fund LLC, incorporated by noted Jackson lobbyist Brent Alexander and attorney John Seawright, who both work for the Baker Donelson law firm. A firm spokeswoman told the AP that Baker Donelson did not represent Adams and the work was personal business of Alexander and Seawright.
Charges against Adams say he paid $4 million in commissions to two unnamed recruiters.
Adams' company bought timber rights from landowners and then sold the rights for higher prices to lumber mills. The investors were to provide their money for loans to purchase the timber rights.
Adams entered into investment contracts with investors, promising a 12 to 13 percent interest rate return over roughly a year.
But federal prosecutors and regulators say it was all a lie and nothing more than a Ponzi scheme.
Adams created false timber deeds and required investors not to file their timber deeds unless his company defaulted on the loan agreement by failing to make a payment.
Prosecutors say Adams was using money from investors to pay other investors or by obtaining bank loans. At one point, his company, Madison Timber Properties, had less than $1,000 in accounts.
The charges against Adams came after the U.S. Securities and Exchange Commission filed a legal complaint against Adams and his company.
The SEC said since approximately 2004 Adams has been directly or indirectly involved in the sales of securities by any means of transportation or communication, mail, or scheme to defraud.
More: Mississippi man charged in Ponzi scheme across multiple states
Contact Jimmie E. Gates at 601-961-7212 or jgates@gannett.com. Follow him on Facebook and Twitter.