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PONZI POINTS: Notable from the charging document

Allegations from the criminal information filing against Arthur Lamar Adams:

» Adams ran the Ponzi scheme from early 2011 through April of this year, prosecutors say.

» Adams kept the scheme going by paying earlier investors with money collected from new investors, prosecutors say. “Adams lulled and persuaded investors to maintain their investments and to invest additional funds by timely paying investors with money fraudulently obtained by Adams from other investors,” U.S. Attorney Michael Hurst Jr. said.

» On Nov. 21, 2017, Adams’ had more than $34,000 in an account at the First National Bank of Clarksdale representing funds from earlier investors. Adams wire transferred various amounts of money from this account to several other banks to make payments to other investors that were due on Dec. 1, 2017, Hurst said.

» READ MORE: U.S. Attorney charges Jackson man in $100 million Ponzi scheme

» At other times, Adams had less than $1,000 in the accounts of Madison Timber and was only able to perpetuate the scheme by fraudulently obtaining investor funds or by obtaining loans form banks, Hurst said.

» Adams paid commissions to recruiters who referred investors to Adams. He paid the commissions from investors’ money. For example, Adams paid one recruiter, a Mississippi lawyer, approximately $2.4 million in commissions in 2017 alone, Hurst said. Another recruiter received abut $1.6 million, Hurst added.

» Federal authorities will seek to forfeit property and other assets controlled by Adams.

— Ted Carter

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