SEC Charges Arthur Lamar Adams With Operating $85 Million Dollar Ponzi Scheme, Obtains Asset Freeze
Arthur Adams allegedly ran an $85 million Ponzi scheme out of Jackson, Mississippi which involved 150 investors, according to an SEC Complaint under review by attorney Paul Scarlato.
Attorney Paul Scarlato, of the Goldman, Scarlato & Penny law firm, is investigating activity related to Arthur Lamar Adams’ alleged Ponzi scheme. Investors who believe they may have lost money in activity related to Arthur Lamar Adams are encouraged to contact attorney Paul Scarlato with any useful information or for a free, no obligation discussion about their options.
According to the SEC complaint, Adams made false statements to investors by telling them that their money would be used by his company, Madison Timber Properties, LLC, to secure harvest timber rights from various land owners located in Alabama, Florida, and Mississippi, and promised annual returns of 12-15%.
In reality, however, Madison Timber never obtained any harvesting rights, and Adams instead made forged deeds and made deals with documents purportedly reflecting the value of the timber on the land, the SEC Complaint notes.
Adams, of Jackson, Mississippi, has also agreed to permanent injunctions, an asset freeze, and expedited discovery, according to the SEC Complaint.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Mississippi announced criminal charges against Adams.
Adams Allegedly Paid Earlier Investors with Later Investors’ Funds, a Telltale Sign of Ponzi Scheme, and Used Investors’ Money for Personal Expenses
Adams’s scheme paid early investors with later investors’ funds and convinced investors to roll over their investments, according to the SEC Complaint under review by Paul Scarlato.
Adams also used investors’ money for personal expenses and to develop an unrelated real estate project, the Complaint notes.
Finally, the SEC’s Complaint charges Adams with violating the antifraud provisions of the Securities Act of 1933.
Securities Lawyer Investigating
The Goldman, Scarlato & Penny law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Arthur Lamar Adams’ alleged Ponzi scheme and would like to talk to investors. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Paul Scarlato, a securities lawyer, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.
Investors who believe they lost money as a result of Arthur Lamar Adams’ alleged Ponzi scheme and would like to talk to investors may contact attorney Paul Scarlato for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.