JACKSON, Miss. – Two more men have been formally accused of taking part in the $100 million Ponzi scheme that was exposed in 2018.
Lobbyist Ted Alexander and lawyer Jon Darrell Seawright have been charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and four counts of wire fraud involving a scheme to defraud investors.
The two have been accused of promising “guaranteed” returns to investors in a complex scam involving timber deals with a fictitious lumber company.
Three years ago, 58-year-old Arthur Lamar Adams was sentenced to 19 and a half years in federal prison for creating and directing the scheme. Prosecutors said that Adams, in as early as 2004, lied to investors by telling them that their money would be used by his company, Madison Timber Properties, to secure harvest timber rights from various landowners in Alabama, Florida, and Mississippi. Adams claimed he would cut lumber cheaply and sell it for higher prices to sawmills. He promised annual returns of 12-15 percent.
But Madison Timber never obtained any harvesting rights. Instead, Adams allegedly forged deeds and cutting agreements as well as documents reflecting the value of the timber on the land. Adams allegedly paid early investors with later investors’ funds and convinced investors to roll over their investments – keeping the investments going in a classic Ponzi scheme. Prosecutors say Adams used investors’ money for personal expenses and to…