An Indianola native was arrested last week in what some call “Mississippi’s largest Ponzi scheme ever.”
Madison businessman and Jackson resident, 58-year-old Arthur Lamar Adams, was scheduled to appear before Judge Carlton Reeves on Wednesday and enter a plea of guilty in answer to at least one of the charges levied against him.
According to a document signed by U.S. Attorney D. Michael Hurst, Adams is charged with two counts of wire fraud involving a scheme to defraud investors, and one count of bank fraud.
The charges are all in connection with an alleged Ponzi scheme using Madison Timber Properties, LLC, a company that Adams owns.
According to Jackson attorney John Colette, who is representing Adams, the hearing is an opportunity for Adams to address the three charges pending against him. He is only expected to plead guilty to a one-count bill of information for wire fraud.
In documents filed May 1, in U.S. District Court, southern district, officials alleged that Adams used fraudulently deeded timberland to trick over 250 investors from 14 states, including Mississippi, out of well over $100 million beginning in 2011 and continuing through last month. The U.S. Attorney called Adams’ artifice “a sophisticated Ponzi scheme.”
In addition to Madison Timber Properties, LLC, which was established in 2012, the documents indicate that Adams also formed and was sole owner of Madison Timber Fund, LLC, established in 2009 and Madison Timber, LLC, formed in 2011.
The U.S. Attorney alleges that using those names, Adams knowingly and intentionally formulated a conspiracy and pretense to fleece investors by soliciting millions of dollars under false pretenses.
Adams purportedly made promises but failed to use the investors' funds as promised, plus misappropriated and converted investors' funds to his own benefit and the benefit of others without the knowledge or authorization of the investors.
The court document also lays claim that Adams was aided and abetted by others and used investor’s money to pay commissions to recruiters who referred investors to him. One such recruiter was allegedly paid $2,445,449 and another $1,628,100 in commissions in 2017 alone. However, there is no mention of whether charges will be filed against anyone else.
