A federal court has been asked to OK a Chattanooga Lookouts request to buy the share of the team owned by a Georgia man accused in a massive Ponzi scheme for $1.87 million.
The court-appointed receiver in the U.S. Securities and Exchange Commission’s action against businessman John J. Woods sought an order relative to the 20.1% interest he owns in the minor league baseball team.
A. Cotten Wright, the receiver, said in court papers that payment of the price in connection with Woods’ removal as a member of the Lookouts conforms with the team’s operating agreement.
“While this case is in its early stages, the receiver is of the view that liquidating the Woods interest at this juncture would serve to capture the value of that asset,” she said.
Jason Freier, managing owner and CEO of the Lookouts, said Friday that Woods told him to “do what you need to do that’s in the best interest of the team and investors.”
“John and I had a conversation about this. He was gracious,” Freier said.
He said he spoke to the receiver and the SEC about obtaining Woods’ shares, which are “in limbo in a sense.”
Freier said the receiver recognized the team’s right to obtain the share and the SEC has no objection. He said the next step is gaining the court’s approval and he believes there’s “a good chance” that will happen.
The Lookouts CEO said he then plans to bring multiple people into ownership of the team.
“The plan is … to bring in local owners,” Freier said. “I’m…