Mississippi Ponzi Schemer Busted Scamming $100 Million From Hundreds Of Clients
A Mississippi Ponzi schemer Arthur Lamar Adams was busted for stealing more than $100 million from hundreds of victims.
The Department of Justice charged Arthur Lamar Adams with two counts of wire fraud and one count of bank fraud.
Investigators said the Mississippi Ponzi schemer fraudulently obtained over $100 million from more than 250 people who invested in Madison Timber Properties LLC.
Adams allegedly lied to his investors. He told them Madison Timber Properties was buying timber cheaply and then re-selling it to sawmills.
The Mississippi Ponzi schemer also created false documents supporting his claims. He would even have the false documents notarized to fool investors.
Investors would then loan Adams money at a guaranteed interest rate of 12 or 13%. Adams relied on new investors to pay the old investors.
Adams ran his scheme from 2011 to April 2018 in 14 states. He used the money to buy real estate and cars in his own name. The Feds also said he paid commission to investors who recruited other people to invest.
The US Attorney’s Office brought charges against Adams after the SEC filed legal action against Adams and Madison Timber Properties.
The United States Attorney for the Southern District of Mississippi Mike Hurst told the media:
Greed is not good. Greed drove this individual to lie, cheat and steal from fellow Mississippians. It led him to prey upon others outside our state, simply to personally benefit himself. This may be one of the largest Ponzi scheme ever committed in our state.
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