A Jackson man has pleaded guilty to his role in a massive multi-state Ponzi scheme that involved over one hundred million dollars and hundreds of victims.
Arthur Lamar Adams, 58, of Jackson, entered a guilty plea before U.S. District Judge Carlton Reeves to one count of wire fraud for his involvement in the large-scale Ponzi scheme.
According to the U.S. Attorney’s Office, Adams used Madison Timber Properties, LLC, a company he wholly owned, to execute the sophisticated scheme. Over a period of at least 7 years, Adams defrauded investors by soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to his own benefit without their knowledge.
As part of his scheme, Adams falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and selling them to lumber mills at a higher price. However, neither Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months.
Under federal law, restitution is mandatory, and Adams has agreed to forfeiture of all funds and assets related to the Ponzi scheme. He will be sentenced by Judge Reeves on August 21, 2018 and faces a maximum penalty of 20 years in federal prison and a $250,000 fine.
Key Facts
- State: Mississippi
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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