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Please be advised that on November 3, 2019, Defendant Jon Seawright filed a voluntary
petition for bankruptcy relief under Chapter 7 of the United States Bankruptcy Code, in the
United States Bankruptcy Court for the Southern District of Mississippi. Mr. Seawright’s
Pursuant to the United States Bankruptcy Code, the filing of a bankruptcy petition
operates as a stay of, among other things, the commencement or continuation of any judicial,
administrative, or other action or proceeding against the debtor that was or could have been
commenced before the petition was filed, or to recover a claim against the debtor that arose
before the petition was filed. All actions against Mr. Seawright, including this civil action,
should be stayed during the pendency of the bankruptcy case, or until further order of the
Bankruptcy Court. Any action taken against the debtor without obtaining the necessary relief
Case 3:18-cv-00866-CWR-FKB Document 56 Filed 11/04/19 Page 2 of 3
from the automatic stay from the Bankruptcy Court is void ab initio and may be subject to
findings of contempt and the assessment of penalties and fines. The debtor reserves and retains
his statutory right to seek relief in the Bankruptcy Court from any action by Plaintiff or any
In the event the Court or any party has any question regarding Mr. Seawright’s
R. Michael Bolen
Hood & Bolen, PLLC
370 Highway 80 West
Jackson, MS 39209
Telephone: (601) 923-0788
Facsimile: (601) 922-2968
Email: rmb@hoodbolen.com
Respectfully submitted,
OF COUNSEL:
2
Case 3:18-cv-00866-CWR-FKB Document 56 Filed 11/04/19 Page 3 of 3
CERTIFICATE OF SERVICE
I, Cody C. Bailey, hereby certify that I have this day caused the foregoing pleading to be
electronically filed with the Clerk of the Court using the CM/ECF system, which will send
3
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Chapter 7
Chapter 11
Chapter 12
Chapter 13 Check if this is an
amended filing
Be as complete and accurate as possible. If two married people are filing together, both are equally responsible for supplying correct information. If
more space is needed, attach a separate sheet to this form. On the top of any additional pages, write your name and case number (if known). Answer
every question.
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 1
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EINs EINs
Hinds
County County
If your mailing address is different from the one If Debtor 2's mailing address is different from yours, fill it
above, fill it in here. Note that the court will send any in here. Note that the court will send any notices to this
notices to you at this mailing address. mailing address.
Number, P.O. Box, Street, City, State & ZIP Code Number, P.O. Box, Street, City, State & ZIP Code
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 2
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7. The chapter of the Check one. (For a brief description of each, see Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy
Bankruptcy Code you are (Form 2010)). Also, go to the top of page 1 and check the appropriate box.
choosing to file under
Chapter 7
Chapter 11
Chapter 12
Chapter 13
8. How you will pay the fee I will pay the entire fee when I file my petition. Please check with the clerk’s office in your local court for more details
about how you may pay. Typically, if you are paying the fee yourself, you may pay with cash, cashier’s check, or money
order. If your attorney is submitting your payment on your behalf, your attorney may pay with a credit card or check with
a pre-printed address.
I need to pay the fee in installments. If you choose this option, sign and attach the Application for Individuals to Pay
The Filing Fee in Installments (Official Form 103A).
I request that my fee be waived (You may request this option only if you are filing for Chapter 7. By law, a judge may,
but is not required to, waive your fee, and may do so only if your income is less than 150% of the official poverty line that
applies to your family size and you are unable to pay the fee in installments). If you choose this option, you must fill out
the Application to Have the Chapter 7 Filing Fee Waived (Official Form 103B) and file it with your petition.
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 3
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13. Are you filing under If you are filing under Chapter 11, the court must know whether you are a small business debtor so that it can set appropriate
Chapter 11 of the deadlines. If you indicate that you are a small business debtor, you must attach your most recent balance sheet, statement of
Bankruptcy Code and are operations, cash-flow statement, and federal income tax return or if any of these documents do not exist, follow the procedure
you a small business in 11 U.S.C. 1116(1)(B).
debtor?
No. I am not filing under Chapter 11.
For a definition of small
business debtor, see 11
No. I am filing under Chapter 11, but I am NOT a small business debtor according to the definition in the Bankruptcy
U.S.C. § 101(51D).
Code.
Yes. I am filing under Chapter 11 and I am a small business debtor according to the definition in the Bankruptcy Code.
Part 4: Report if You Own or Have Any Hazardous Property or Any Property That Needs Immediate Attention
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 4
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Incapacity. Incapacity.
I have a mental illness or a mental deficiency I have a mental illness or a mental deficiency that
that makes me incapable of realizing or makes me incapable of realizing or making rational
making rational decisions about finances. decisions about finances.
Disability. Disability.
My physical disability causes me to be My physical disability causes me to be unable to
unable to participate in a briefing in person, participate in a briefing in person, by phone, or
by phone, or through the internet, even after I through the internet, even after I reasonably tried to
reasonably tried to do so. do so.
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 5
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16. What kind of debts do 16a. Are your debts primarily consumer debts? Consumer debts are defined in 11 U.S.C. § 101(8) as “incurred by an
you have? individual primarily for a personal, family, or household purpose.”
17. Are you filing under No. I am not filing under Chapter 7. Go to line 18.
Chapter 7?
Do you estimate that Yes. I am filing under Chapter 7. Do you estimate that after any exempt property is excluded and administrative expenses
after any exempt are paid that funds will be available to distribute to unsecured creditors?
property is excluded and
administrative expenses No
are paid that funds will
be available for Yes
distribution to unsecured
creditors?
19. How much do you $0 - $50,000 $1,000,001 - $10 million $500,000,001 - $1 billion
estimate your assets to $50,001 - $100,000 $1,000,000,001 - $10 billion
be worth? $10,000,001 - $50 million
$100,001 - $500,000 $50,000,001 - $100 million $10,000,000,001 - $50 billion
$500,001 - $1 million $100,000,001 - $500 million More than $50 billion
20. How much do you $0 - $50,000 $1,000,001 - $10 million $500,000,001 - $1 billion
estimate your liabilities $50,001 - $100,000 $10,000,001 - $50 million $1,000,000,001 - $10 billion
to be?
$100,001 - $500,000 $50,000,001 - $100 million $10,000,000,001 - $50 billion
$500,001 - $1 million $100,000,001 - $500 million More than $50 billion
For you I have examined this petition, and I declare under penalty of perjury that the information provided is true and correct.
If I have chosen to file under Chapter 7, I am aware that I may proceed, if eligible, under Chapter 7, 11,12, or 13 of title 11,
United States Code. I understand the relief available under each chapter, and I choose to proceed under Chapter 7.
If no attorney represents me and I did not pay or agree to pay someone who is not an attorney to help me fill out this
document, I have obtained and read the notice required by 11 U.S.C. § 342(b).
I request relief in accordance with the chapter of title 11, United States Code, specified in this petition.
I understand making a false statement, concealing property, or obtaining money or property by fraud in connection with a
bankruptcy case can result in fines up to $250,000, or imprisonment for up to 20 years, or both. 18 U.S.C. §§ 152, 1341, 1519,
and 3571.
/s/ Jon Darrell Seawright
Jon Darrell Seawright Signature of Debtor 2
Signature of Debtor 1
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 6
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For your attorney, if you are I, the attorney for the debtor(s) named in this petition, declare that I have informed the debtor(s) about eligibility to proceed
represented by one under Chapter 7, 11, 12, or 13 of title 11, United States Code, and have explained the relief available under each chapter
for which the person is eligible. I also certify that I have delivered to the debtor(s) the notice required by 11 U.S.C. § 342(b)
If you are not represented by and, in a case in which § 707(b)(4)(D) applies, certify that I have no knowledge after an inquiry that the information in the
an attorney, you do not need schedules filed with the petition is incorrect.
to file this page.
/s/ R. Michael Bolen Miss. Bar Date November 3, 2019
Signature of Attorney for Debtor MM / DD / YYYY
Attorneys at Law
3770 Highway 80 West
Jackson, MS 39209
Number, Street, City, State & ZIP Code
Official Form 101 Voluntary Petition for Individuals Filing for Bankruptcy page 7
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The above-named Debtor hereby verifies that the attached list of creditors is true and correct to the best of his/her knowledge.
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Your assets
Value of what you own
1b. Copy line 62, Total personal property, from Schedule A/B..................................................................................... $ 714,100.00
1c. Copy line 63, Total of all property on Schedule A/B............................................................................................... $ 1,289,100.00
Your liabilities
Amount you owe
2. Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D)
2a. Copy the total you listed in Column A, Amount of claim, at the bottom of the last page of Part 1 of Schedule D... $ 470,000.00
3. Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 106E/F)
3a. Copy the total claims from Part 1 (priority unsecured claims) from line 6e of Schedule E/F................................. $ 0.00
3b. Copy the total claims from Part 2 (nonpriority unsecured claims) from line 6j of Schedule E/F............................ $ 165,926,723.00
Yes
7. What kind of debt do you have?
Your debts are primarily consumer debts. Consumer debts are those “incurred by an individual primarily for a personal, family, or
household purpose.” 11 U.S.C. § 101(8). Fill out lines 8-9g for statistical purposes. 28 U.S.C. § 159.
Your debts are not primarily consumer debts. You have nothing to report on this part of the form. Check this box and submit this form to
the court with your other schedules.
Official Form 106Sum Summary of Your Assets and Liabilities and Certain Statistical Information page 1 of 2
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8. From the Statement of Your Current Monthly Income: Copy your total current monthly income from Official Form
122A-1 Line 11; OR, Form 122B Line 11; OR, Form 122C-1 Line 14. $
9. Copy the following special categories of claims from Part 4, line 6 of Schedule E/F:
Total claim
From Part 4 on Schedule E/F, copy the following:
9b. Taxes and certain other debts you owe the government. (Copy line 6b.) $ 0.00
9c. Claims for death or personal injury while you were intoxicated. (Copy line 6c.) $ 0.00
9e. Obligations arising out of a separation agreement or divorce that you did not report as
priority claims. (Copy line 6g.) $ 0.00
9f. Debts to pension or profit-sharing plans, and other similar debts. (Copy line 6h.) +$ 0.00
Official Form 106Sum Summary of Your Assets and Liabilities and Certain Statistical Information page 2 of 2
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Debtor 2
(Spouse, if filing) First Name Middle Name Last Name
Part 1: Describe Each Residence, Building, Land, or Other Real Estate You Own or Have an Interest In
1. Do you own or have any legal or equitable interest in any residence, building, land, or similar property?
No. Go to Part 2.
2. Add the dollar value of the portion you own for all of your entries from Part 1, including any entries for
pages you have attached for Part 1. Write that number here...........................................................................=> $575,000.00
Do you own, lease, or have legal or equitable interest in any vehicles, whether they are registered or not? Include any vehicles you own that
someone else drives. If you lease a vehicle, also report it on Schedule G: Executory Contracts and Unexpired Leases.
No
Yes
4. Watercraft, aircraft, motor homes, ATVs and other recreational vehicles, other vehicles, and accessories
Examples: Boats, trailers, motors, personal watercraft, fishing vessels, snowmobiles, motorcycle accessories
No
Yes
4.1 Make: Honda Who has an interest in the property? Check one
Do not deduct secured claims or exemptions. Put
the amount of any secured claims on Schedule D:
Model: Debtor 1 only Creditors Who Have Claims Secured by Property.
Year: 2004 Debtor 2 only Current value of the Current value of the
Debtor 1 and Debtor 2 only entire property? portion you own?
Other information: At least one of the debtors and another
Check if this is community property $250.00 $250.00
4 wheeler that doesn't run. (see instructions)
5 Add the dollar value of the portion you own for all of your entries from Part 2, including any entries for
.pages you have attached for Part 2. Write that number here.............................................................................=> $250.00
7. Electronics
Examples: Televisions and radios; audio, video, stereo, and digital equipment; computers, printers, scanners; music collections; electronic devices
including cell phones, cameras, media players, games
No
Yes. Describe.....
iPhone $200.00
8. Collectibles of value
Examples: Antiques and figurines; paintings, prints, or other artwork; books, pictures, or other art objects; stamp, coin, or baseball card collections;
other collections, memorabilia, collectibles
No
Yes. Describe.....
10. Firearms
Examples: Pistols, rifles, shotguns, ammunition, and related equipment
No
Yes. Describe.....
11. Clothes
Examples: Everyday clothes, furs, leather coats, designer wear, shoes, accessories
No
Yes. Describe.....
12. Jewelry
Examples: Everyday jewelry, costume jewelry, engagement rings, wedding rings, heirloom jewelry, watches, gems, gold, silver
No
Yes. Describe.....
14. Any other personal and household items you did not already list, including any health aids you did not list
No
Yes. Give specific information.....
15. Add the dollar value of all of your entries from Part 3, including any entries for pages you have attached
for Part 3. Write that number here .............................................................................. $4,600.00
16. Cash
Examples: Money you have in your wallet, in your home, in a safe deposit box, and on hand when you file your petition
No
Yes................................................................................................................
Cash $750.00
19. Non-publicly traded stock and interests in incorporated and unincorporated businesses, including an interest in an LLC, partnership, and
joint venture
No
Yes. Give specific information about them...................
Name of entity: % of ownership:
20. Government and corporate bonds and other negotiable and non-negotiable instruments
Negotiable instruments include personal checks, cashiers’ checks, promissory notes, and money orders.
Non-negotiable instruments are those you cannot transfer to someone by signing or delivering them.
No
Yes. Give specific information about them
Issuer name:
23. Annuities (A contract for a periodic payment of money to you, either for life or for a number of years)
No
Yes............. Issuer name and description.
24. Interests in an education IRA, in an account in a qualified ABLE program, or under a qualified state tuition program.
26 U.S.C. §§ 530(b)(1), 529A(b), and 529(b)(1).
No
Yes............. Institution name and description. Separately file the records of any interests.11 U.S.C. § 521(c):
25. Trusts, equitable or future interests in property (other than anything listed in line 1), and rights or powers exercisable for your benefit
No
Yes. Give specific information about them...
26. Patents, copyrights, trademarks, trade secrets, and other intellectual property
Examples: Internet domain names, websites, proceeds from royalties and licensing agreements
No
Yes. Give specific information about them...
32. Any interest in property that is due you from someone who has died
If you are the beneficiary of a living trust, expect proceeds from a life insurance policy, or are currently entitled to receive property because
someone has died.
No
Yes. Give specific information..
33. Claims against third parties, whether or not you have filed a lawsuit or made a demand for payment
Examples: Accidents, employment disputes, insurance claims, or rights to sue
No
Yes. Describe each claim.........
34. Other contingent and unliquidated claims of every nature, including counterclaims of the debtor and rights to set off claims
No
Yes. Describe each claim.........
36. Add the dollar value of all of your entries from Part 4, including any entries for pages you have attached
for Part 4. Write that number here..................................................................................................................... $709,250.00
Part 5: Describe Any Business-Related Property You Own or Have an Interest In. List any real estate in Part 1.
37. Do you own or have any legal or equitable interest in any business-related property?
No. Go to Part 6.
Yes. Go to line 38.
Part 6: Describe Any Farm- and Commercial Fishing-Related Property You Own or Have an Interest In.
If you own or have an interest in farmland, list it in Part 1.
46. Do you own or have any legal or equitable interest in any farm- or commercial fishing-related property?
No. Go to Part 7.
Yes. Go to line 47.
Part 7: Describe All Property You Own or Have an Interest in That You Did Not List Above
53. Do you have other property of any kind you did not already list?
Examples: Season tickets, country club membership
No
Yes. Give specific information.........
54. Add the dollar value of all of your entries from Part 7. Write that number here .................................... $0.00
62. Total personal property. Add lines 56 through 61... $714,100.00 Copy personal property total $714,100.00
63. Total of all property on Schedule A/B. Add line 55 + line 62 $1,289,100.00
Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Be as complete and accurate as possible. If two married people are filing together, both are equally responsible for supplying correct information. Using
the property you listed on Schedule A/B: Property (Official Form 106A/B) as your source, list the property that you claim as exempt. If more space is
needed, fill out and attach to this page as many copies of Part 2: Additional Page as necessary. On the top of any additional pages, write your name and
case number (if known).
For each item of property you claim as exempt, you must specify the amount of the exemption you claim. One way of doing so is to state a
specific dollar amount as exempt. Alternatively, you may claim the full fair market value of the property being exempted up to the amount of
any applicable statutory limit. Some exemptions—such as those for health aids, rights to receive certain benefits, and tax-exempt retirement
funds—may be unlimited in dollar amount. However, if you claim an exemption of 100% of fair market value under a law that limits the
exemption to a particular dollar amount and the value of the property is determined to exceed that amount, your exemption would be limited
to the applicable statutory amount.
1. Which set of exemptions are you claiming? Check one only, even if your spouse is filing with you.
You are claiming state and federal nonbankruptcy exemptions. 11 U.S.C. § 522(b)(3)
2. For any property you list on Schedule A/B that you claim as exempt, fill in the information below.
Brief description of the property and line on Current value of the Amount of the exemption you claim Specific laws that allow exemption
Schedule A/B that lists this property portion you own
Copy the value from Check only one box for each exemption.
Schedule A/B
4247 Crane Boulevard Jackson, MS $575,000.00 $75,000.00 Miss. Code Ann. § 85-3-21
39216 Hinds County Property is in tenancy by
Debtor and wife own as tentants by 100% of fair market value, up to entirety and cannot be
the entirety with full rights of any applicable statutory limit liquidated for debts of one
survivorship. party.
Line from Schedule A/B: 1.1
1/2 interest in standard household $2,500.00 $2,500.00 Miss. Code Ann. § 85-3-1(a)
goods for 6/4.5 house including
living room, dining room, and 100% of fair market value, up to
bedroom furniture, televisions, and any applicable statutory limit
kitchen appliances, etc.
Line from Schedule A/B: 6.1
Official Form 106C Schedule C: The Property You Claim as Exempt page 1 of 2
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Brief description of the property and line on Current value of the Amount of the exemption you claim Specific laws that allow exemption
Schedule A/B that lists this property portion you own
Copy the value from Check only one box for each exemption.
Schedule A/B
ERISA: 401k wih Mass Mutual $700,000.00 $700,000.00 Miss. Code Ann. § 85-3-1(e)
Line from Schedule A/B: 21.1
100% of fair market value, up to
any applicable statutory limit
ERISA: IRA with TD Ameritrde $8,000.00 $8,000.00 Miss. Code Ann. § 85-3-1(e)
Line from Schedule A/B: 21.2
100% of fair market value, up to
any applicable statutory limit
Federal: Potential tax refund. Unknown $5,000.00 Miss. Code Ann. § 85-3-1(j)
Line from Schedule A/B: 28.1
100% of fair market value, up to
any applicable statutory limit
State: Potential tax refund. Unknown $5,000.00 Miss. Code Ann. § 85-3-1(k)
Line from Schedule A/B: 28.2
100% of fair market value, up to
any applicable statutory limit
Potential earned income tax credit. Unknown $5,000.00 Miss. Code Ann. § 85-3-1(i)
Line from Schedule A/B: 28.3
100% of fair market value, up to
any applicable statutory limit
Official Form 106C Schedule C: The Property You Claim as Exempt page 2 of 2
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Add the dollar value of your entries in Column A on this page. Write that number here: $470,000.00
If this is the last page of your form, add the dollar value totals from all pages.
Write that number here: $470,000.00
Part 2: List Others to Be Notified for a Debt That You Already Listed
Use this page only if you have others to be notified about your bankruptcy for a debt that you already listed in Part 1. For example, if a collection agency is
trying to collect from you for a debt you owe to someone else, list the creditor in Part 1, and then list the collection agency here. Similarly, if you have more
than one creditor for any of the debts that you listed in Part 1, list the additional creditors here. If you do not have additional persons to be notified for any
debts in Part 1, do not fill out or submit this page.
Official Form 106D Schedule D: Creditors Who Have Claims Secured by Property page 1 of 1
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Yes.
2. List all of your priority unsecured claims. If a creditor has more than one priority unsecured claim, list the creditor separately for each claim. For each claim listed,
identify what type of claim it is. If a claim has both priority and nonpriority amounts, list that claim here and show both priority and nonpriority amounts. As much as
possible, list the claims in alphabetical order according to the creditor’s name. If you have more than two priority unsecured claims, fill out the Continuation Page of
Part 1. If more than one creditor holds a particular claim, list the other creditors in Part 3.
(For an explanation of each type of claim, see the instructions for this form in the instruction booklet.)
Total claim Priority Nonpriority
amount amount
2.1 IRS Last 4 digits of account number Unknown Unknown Unknown
Priority Creditor's Name
Centralized Insolvency When was the debt incurred?
P. O. Box 7346
Philadelphia, PA 19101-7346
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one. Contingent
Debtor 1 only Unliquidated
Debtor 2 only Disputed
Debtor 1 and Debtor 2 only Type of PRIORITY unsecured claim:
Check if this claim is for a community debt Taxes and certain other debts you owe the government
Is the claim subject to offset? Claims for death or personal injury while you were intoxicated
No Other. Specify
Yes
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 1 of 21
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2.2 Miss. DOR Last 4 digits of account number $0.00 $0.00 $0.00
Priority Creditor's Name
P. O. Box 22808 When was the debt incurred?
Bankruptcy Section
Jackson, MS 39225
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one. Contingent
Debtor 1 only Unliquidated
Debtor 2 only Disputed
Debtor 1 and Debtor 2 only Type of PRIORITY unsecured claim:
Check if this claim is for a community debt Taxes and certain other debts you owe the government
Is the claim subject to offset? Claims for death or personal injury while you were intoxicated
No Other. Specify
Yes
No. You have nothing to report in this part. Submit this form to the court with your other schedules.
Yes.
4. List all of your nonpriority unsecured claims in the alphabetical order of the creditor who holds each claim. If a creditor has more than one nonpriority
unsecured claim, list the creditor separately for each claim. For each claim listed, identify what type of claim it is. Do not list claims already included in Part 1. If more
than one creditor holds a particular claim, list the other creditors in Part 3.If you have more than three nonpriority unsecured claims fill out the Continuation Page of
Part 2.
Total claim
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 2 of 21
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Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 3 of 21
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Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 4 of 21
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4.1
0 Bradley S Clanton, Esq Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Clanton Law Firm When was the debt incurred?
P. O. Box 4781
Jackson, MS 39296
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 5 of 21
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4.1
1 Brent Alexander Last 4 digits of account number Unknown
Nonpriority Creditor's Name
1501 North State St. When was the debt incurred?
Jackson, MS 39202
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.1
2 Brent Barriere, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 4600 When was the debt incurred?
201 St. Charles Ave.
New Orleans, LA 70170-4600
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.1
3 Brunini Law Firm Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorneys at Law When was the debt incurred?
P. O. Box 119
Jackson, MS 39205
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 6 of 21
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4.1
4 Butler Snow Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorneys at Law When was the debt incurred?
P. O. Box 6010
Ridgeland, MS 39158-6010
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.1
5 Butler Snow Adv. Serv. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
T. E. Willaims, Agent When was the debt incurred?
1020 Highland Col 1400
Ridgeland, MS 39157
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.1
6 Butler Snow, LLP Last 4 digits of account number Unknown
Nonpriority Creditor's Name
T. E. Williams Agent When was the debt incurred?
1020 Highland Col 1400
Ridgeland, MS 39157
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 7 of 21
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4.1
7 Capital One Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 30285
Salt Lake City, UT 84130
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.1
8 Capital One/Bass Pro Last 4 digits of account number $2,884.00
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 30285
Salt Lake City, UT 84130
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.1
9 Chad J. Hammons, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Jones Walker When was the debt incurred?
P. O. Box 427
Jackson, MS 39205
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 8 of 21
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4.2
0 Chase Card Services Last 4 digits of account number $23,233.00
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 15298
Wilmington, DE 19850
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.2
1 Citibank Last 4 digits of account number Unknown
Nonpriority Creditor's Name
SD MC 425 When was the debt incurred?
5800 South Corp Place
Sioux Falls, SD 57108
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.2
2 Cody Bailey, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Drawer 119
Jackson, MS 39205-0119
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 9 of 21
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4.2
3 Craig Singer, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
725 Twelfth St., N.W.
Washington, DC 20005-5901
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.2
4 David Kaufman, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Drawer 119
Jackson, MS 39205-0119
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.2
5 Dell Financial Service Last 4 digits of account number Unknown
Nonpriority Creditor's Name
P. O. Box 81577 When was the debt incurred?
Austin, TX 78708
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 10 of 21
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4.2
6 Discover Financial Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 15316
Wilmington, DE 19850
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.2
7 Edgar H. Carby, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Carby & Carby Attorney When was the debt incurred?
513 State Street
Natchez, MS 39120
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.2
8 Edward Blackmon, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 105
Canton, MS 39046-0105
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 11 of 21
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4.2
9 Equlease, LLC Last 4 digits of account number $775,000.00
Nonpriority Creditor's Name
P. O. Box 12027 When was the debt incurred?
Jackson, MS 39236
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
0 Ford Motor Credit Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Center When was the debt incurred?
P. O. Box 62180
Colorado Springs, CO 80962
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.3
1 Hyde Carby, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorneys at Law When was the debt incurred?
P. O. Box 1047
Natchez, MS 39120
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 12 of 21
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4.3
2 James Crongeyer Jr Esq Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 650
Jackson, MS 39205-0650
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
3 Jason Burge, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 4600 When was the debt incurred?
201 St. Charles Ave.
New Orleans, LA 70170-4600
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
4 John A. Purvis, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 1789
Jackson, MS 39215-1789
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 13 of 21
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4.3
5 Kristen Amond, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 4600 When was the debt incurred?
201 St. Charles Ave.
New Orleans, LA 70170-4600
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
6 LaToya Jeter, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 22969
Jackson, MS 39225
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
7 Lilli Bass, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 22969
Jackson, MS 39225
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 14 of 21
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4.3
8 Matt Thornton Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 1400 When was the debt incurred?
1020 Highland Colony
Ridgeland, MS 39157
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.3
9 Michael Ulmer, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 650
Jackson, MS 39205-0650
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.4
0 Michael Williams, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 1789
Jackson, MS 39215-1789
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 15 of 21
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4.4
1 Navient Last 4 digits of account number $49,948.00
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 9640
Wilkes-Barre, PA 18773
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.4
2 Pemco Financial Corp. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
P. O. Box 19367 When was the debt incurred?
Kalamazoo, MI 49019-0357
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.4
3 PHH Mortgage Services Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 100 When was the debt incurred?
1661 Worthington Rd
West Palm Beach, FL 33409
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 16 of 21
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4.4
4 PHH Mortgage Servicing Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 5452
Mount Laurel, NJ 08054
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.4
5 Rebekka Veith, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Suite 4600 When was the debt incurred?
201 St. Charles Ave.
New Orleans, LA 70170-4600
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.4
6 Regions Bank Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 10063
Birmingham, AL 35202
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 17 of 21
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4.4
7 Regions Mortgage Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 18001
Hattiesburg, MS 39404
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.4
8 Simon Bailey, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 1789
Jackson, MS 39215-1789
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
4.4
9 Southern Insurance Last 4 digits of account number $32,000.00
Nonpriority Creditor's Name
591 Northpark Drive When was the debt incurred?
Ridgeland, MS 39157
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 18 of 21
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4.5
0 Southern States Utily. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
550 U. S. 49 When was the debt incurred?
Richland, MS 39218
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.5
1 Synchrony/Brook Bro. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 965060
Orlando, FL 32896
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.5
2 Tower Loan Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
P. O. Box 320001
Flowood, MS 39232
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 19 of 21
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4.5
3 USAA Fed. Savings Bank Last 4 digits of account number $35,000.00
Nonpriority Creditor's Name
Bankruptcy Dept. When was the debt incurred?
10750 McDermott Freewy
San Antonio, TX 78288
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.5
4 Walter Weems, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Brunini, Grantham When was the debt incurred?
P. O. Box 119
Jackson, MS 39205
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
4.5
5 Wayne Drinkwater, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 1789
Jackson, MS 39215-1789
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 20 of 21
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4.5
6 William Busching, Esq. Last 4 digits of account number Unknown
Nonpriority Creditor's Name
Attorney at Law When was the debt incurred?
P. O. Box 1510
Gulfport, MS 39502
Number Street City State Zip Code As of the date you file, the claim is: Check all that apply
Who incurred the debt? Check one.
Contingent
Debtor 1 only
Debtor 2 only Unliquidated
Part 3: List Others to Be Notified About a Debt That You Already Listed
5. Use this page only if you have others to be notified about your bankruptcy, for a debt that you already listed in Parts 1 or 2. For example, if a collection agency
is trying to collect from you for a debt you owe to someone else, list the original creditor in Parts 1 or 2, then list the collection agency here. Similarly, if you
have more than one creditor for any of the debts that you listed in Parts 1 or 2, list the additional creditors here. If you do not have additional persons to be
notified for any debts in Parts 1 or 2, do not fill out or submit this page.
Name and Address On which entry in Part 1 or Part 2 did you list the original creditor?
PEMCO Insurance Co. Line 4.42 of (Check one): Part 1: Creditors with Priority Unsecured Claims
P. O. Box 778 Part 2: Creditors with Nonpriority Unsecured Claims
Seattle, WA 98111-0778
Last 4 digits of account number
Name and Address On which entry in Part 1 or Part 2 did you list the original creditor?
U S Attorney/IRS Line 2.1 of (Check one): Part 1: Creditors with Priority Unsecured Claims
Suite 4.430 Part 2: Creditors with Nonpriority Unsecured Claims
501 East Court St.
Jackson, MS 39201
Last 4 digits of account number
Total Claim
6a. Domestic support obligations 6a. $ 0.00
Total
claims
from Part 1 6b. Taxes and certain other debts you owe the government 6b. $ 0.00
6c. Claims for death or personal injury while you were intoxicated 6c. $ 0.00
6d. Other. Add all other priority unsecured claims. Write that amount here. 6d. $ 0.00
Total Claim
6f. Student loans 6f. $ 49,948.00
Total
claims
from Part 2 6g. Obligations arising out of a separation agreement or divorce that
you did not report as priority claims 6g. $ 0.00
6h. Debts to pension or profit-sharing plans, and other similar debts 6h. $ 0.00
6i. Other. Add all other nonpriority unsecured claims. Write that amount 6i.
here. $ 165,876,775.00
Official Form 106 E/F Schedule E/F: Creditors Who Have Unsecured Claims Page 21 of 21
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
2. List separately each person or company with whom you have the contract or lease. Then state what each contract or lease is for (for
example, rent, vehicle lease, cell phone). See the instructions for this form in the instruction booklet for more examples of executory contracts
and unexpired leases.
Person or company with whom you have the contract or lease State what the contract or lease is for
Name, Number, Street, City, State and ZIP Code
2.1
Name
Number Street
Number Street
Number Street
Number Street
Number Street
Official Form 106G Schedule G: Executory Contracts and Unexpired Leases Page 1 of 1
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Codebtors are people or entities who are also liable for any debts you may have. Be as complete and accurate as possible. If two married
people are filing together, both are equally responsible for supplying correct information. If more space is needed, copy the Additional Page,
fill it out, and number the entries in the boxes on the left. Attach the Additional Page to this page. On the top of any Additional Pages, write
your name and case number (if known). Answer every question.
1. Do you have any codebtors? (If you are filing a joint case, do not list either spouse as a codebtor.
No
Yes
2. Within the last 8 years, have you lived in a community property state or territory? (Community property states and territories include
Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Puerto Rico, Texas, Washington, and Wisconsin.)
No. Go to line 3.
Yes. Did your spouse, former spouse, or legal equivalent live with you at the time?
3. In Column 1, list all of your codebtors. Do not include your spouse as a codebtor if your spouse is filing with you. List the person shown
in line 2 again as a codebtor only if that person is a guarantor or cosigner. Make sure you have listed the creditor on Schedule D (Official
Form 106D), Schedule E/F (Official Form 106E/F), or Schedule G (Official Form 106G). Use Schedule D, Schedule E/F, or Schedule G to fill
out Column 2.
Column 1: Your codebtor Column 2: The creditor to whom you owe the debt
Name, Number, Street, City, State and ZIP Code Check all schedules that apply:
Debtor 2
(Spouse, if filing)
Estimate monthly income as of the date you file this form. If you have nothing to report for any line, write $0 in the space. Include your non-filing
spouse unless you are separated.
If you or your non-filing spouse have more than one employer, combine the information for all employers for that person on the lines below. If you need
more space, attach a separate sheet to this form.
List monthly gross wages, salary, and commissions (before all payroll
2. deductions). If not paid monthly, calculate what the monthly wage would be. 2. $ 23,641.48 $ 9,750.00
10. Calculate monthly income. Add line 7 + line 9. 10. $ 15,367.36 + $ 5,375.00 = $ 20,742.36
Add the entries in line 10 for Debtor 1 and Debtor 2 or non-filing spouse.
11. State all other regular contributions to the expenses that you list in Schedule J.
Include contributions from an unmarried partner, members of your household, your dependents, your roommates, and
other friends or relatives.
Do not include any amounts already included in lines 2-10 or amounts that are not available to pay expenses listed in Schedule J.
Specify: 11. +$ 0.00
12. Add the amount in the last column of line 10 to the amount in line 11. The result is the combined monthly income.
Write that amount on the Summary of Schedules and Statistical Summary of Certain Liabilities and Related Data, if it
applies 12. $ 20,742.36
Combined
monthly income
13. Do you expect an increase or decrease within the year after you file this form?
No.
Yes. Explain:
United States Bankruptcy Court for the: SOUTHERN DISTRICT OF MISSISSIPPI MM / DD / YYYY
Case number
(If known)
Include expenses paid for with non-cash government assistance if you know
the value of such assistance and have included it on Schedule I: Your Income
(Official Form 106I.) Your expenses
4. The rental or home ownership expenses for your residence. Include first mortgage
payments and any rent for the ground or lot. 4. $ 4,045.37
6. Utilities:
6a. Electricity, heat, natural gas 6a. $ 450.00
6b. Water, sewer, garbage collection 6b. $ 200.00
6c. Telephone, cell phone, Internet, satellite, and cable services 6c. $ 400.00
6d. Other. Specify: 6d. $ 0.00
7. Food and housekeeping supplies 7. $ 1,250.00
8. Childcare and children’s education costs 8. $ 3,750.00
9. Clothing, laundry, and dry cleaning 9. $ 500.00
10. Personal care products and services 10. $ 150.00
11. Medical and dental expenses 11. $ 400.00
12. Transportation. Include gas, maintenance, bus or train fare.
Do not include car payments. 12. $ 750.00
13. Entertainment, clubs, recreation, newspapers, magazines, and books 13. $ 250.00
14. Charitable contributions and religious donations 14. $ 0.00
15. Insurance.
Do not include insurance deducted from your pay or included in lines 4 or 20.
15a. Life insurance 15a. $ 300.00
15b. Health insurance 15b. $ 0.00
15c. Vehicle insurance 15c. $ 300.00
15d. Other insurance. Specify: 15d. $ 0.00
16. Taxes. Do not include taxes deducted from your pay or included in lines 4 or 20.
Specify: Additional tax payment for under withholding 16. $ 1,000.00
17. Installment or lease payments:
17a. Car payments for Vehicle 1 17a. $ 400.00
17b. Car payments for Vehicle 2 17b. $ 0.00
17c. Other. Specify: Wife's credit cards 17c. $ 1,500.00
17d. Other. Specify: 17d. $ 0.00
18. Your payments of alimony, maintenance, and support that you did not report as
deducted from your pay on line 5, Schedule I, Your Income (Official Form 106I). 18. $ 0.00
19. Other payments you make to support others who do not live with you. $ 0.00
Specify: 19.
20. Other real property expenses not included in lines 4 or 5 of this form or on Schedule I: Your Income.
20a. Mortgages on other property 20a. $ 0.00
20b. Real estate taxes 20b. $ 0.00
20c. Property, homeowner’s, or renter’s insurance 20c. $ 0.00
20d. Maintenance, repair, and upkeep expenses 20d. $ 0.00
20e. Homeowner’s association or condominium dues 20e. $ 0.00
21. Other: Specify: Ongoing legal fees 21. +$ 2,500.00
22. Calculate your monthly expenses
22a. Add lines 4 through 21. $ 20,587.04
22b. Copy line 22 (monthly expenses for Debtor 2), if any, from Official Form 106J-2 $
22c. Add line 22a and 22b. The result is your monthly expenses. $ 20,587.04
23. Calculate your monthly net income.
23a. Copy line 12 (your combined monthly income) from Schedule I. 23a. $ 20,742.36
23b. Copy your monthly expenses from line 22c above. 23b. -$ 20,587.04
24. Do you expect an increase or decrease in your expenses within the year after you file this form?
For example, do you expect to finish paying for your car loan within the year or do you expect your mortgage payment to increase or decrease because of a
modification to the terms of your mortgage?
No.
Yes. Explain here:
Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
If two married people are filing together, both are equally responsible for supplying correct information.
You must file this form whenever you file bankruptcy schedules or amended schedules. Making a false statement, concealing property, or
obtaining money or property by fraud in connection with a bankruptcy case can result in fines up to $250,000, or imprisonment for up to 20
years, or both. 18 U.S.C. §§ 152, 1341, 1519, and 3571.
Sign Below
Did you pay or agree to pay someone who is NOT an attorney to help you fill out bankruptcy forms?
No
Under penalty of perjury, I declare that I have read the summary and schedules filed with this declaration and
that they are true and correct.
Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
Part 1: Give Details About Your Marital Status and Where You Lived Before
Married
Not married
2. During the last 3 years, have you lived anywhere other than where you live now?
No
Yes. List all of the places you lived in the last 3 years. Do not include where you live now.
Debtor 1 Prior Address: Dates Debtor 1 Debtor 2 Prior Address: Dates Debtor 2
lived there lived there
3. Within the last 8 years, did you ever live with a spouse or legal equivalent in a community property state or territory? (Community property
states and territories include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Puerto Rico, Texas, Washington and Wisconsin.)
No
Yes. Make sure you fill out Schedule H: Your Codebtors (Official Form 106H).
4. Did you have any income from employment or from operating a business during this year or the two previous calendar years?
Fill in the total amount of income you received from all jobs and all businesses, including part-time activities.
If you are filing a joint case and you have income that you receive together, list it only once under Debtor 1.
No
Yes. Fill in the details.
Debtor 1 Debtor 2
Sources of income Gross income Sources of income Gross income
Check all that apply. (before deductions and Check all that apply. (before deductions
exclusions) and exclusions)
From January 1 of current year until Wages, commissions, $297,982.51 Wages, commissions,
the date you filed for bankruptcy: bonuses, tips
bonuses, tips
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 1
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Debtor 1 Debtor 2
Sources of income Gross income Sources of income Gross income
Check all that apply. (before deductions and Check all that apply. (before deductions
exclusions) and exclusions)
For the calendar year before that: Wages, commissions, $336,737.26 Wages, commissions,
(January 1 to December 31, 2017 ) bonuses, tips
bonuses, tips
5. Did you receive any other income during this year or the two previous calendar years?
Include income regardless of whether that income is taxable. Examples of other income are alimony; child support; Social Security, unemployment,
and other public benefit payments; pensions; rental income; interest; dividends; money collected from lawsuits; royalties; and gambling and lottery
winnings. If you are filing a joint case and you have income that you received together, list it only once under Debtor 1.
List each source and the gross income from each source separately. Do not include income that you listed in line 4.
No
Yes. Fill in the details.
Debtor 1 Debtor 2
Sources of income Gross income from Sources of income Gross income
Describe below. each source Describe below. (before deductions
(before deductions and and exclusions)
exclusions)
Part 3: List Certain Payments You Made Before You Filed for Bankruptcy
6. Are either Debtor 1’s or Debtor 2’s debts primarily consumer debts?
No. Neither Debtor 1 nor Debtor 2 has primarily consumer debts. Consumer debts are defined in 11 U.S.C. § 101(8) as “incurred by an
individual primarily for a personal, family, or household purpose.”
During the 90 days before you filed for bankruptcy, did you pay any creditor a total of $6,825* or more?
No. Go to line 7.
Yes List below each creditor to whom you paid a total of $6,825* or more in one or more payments and the total amount you
paid that creditor. Do not include payments for domestic support obligations, such as child support and alimony. Also, do
not include payments to an attorney for this bankruptcy case.
* Subject to adjustment on 4/01/22 and every 3 years after that for cases filed on or after the date of adjustment.
No. Go to line 7.
Yes List below each creditor to whom you paid a total of $600 or more and the total amount you paid that creditor. Do not
include payments for domestic support obligations, such as child support and alimony. Also, do not include payments to an
attorney for this bankruptcy case.
Creditor's Name and Address Dates of payment Total amount Amount you Was this payment for ...
paid still owe
None, except ordinary $0.00 $0.00 Mortgage
course of business Car
See Schedule J Credit Card
Loan Repayment
Suppliers or vendors
Other
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 2
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7. Within 1 year before you filed for bankruptcy, did you make a payment on a debt you owed anyone who was an insider?
Insiders include your relatives; any general partners; relatives of any general partners; partnerships of which you are a general partner; corporations
of which you are an officer, director, person in control, or owner of 20% or more of their voting securities; and any managing agent, including one for
a business you operate as a sole proprietor. 11 U.S.C. § 101. Include payments for domestic support obligations, such as child support and
alimony.
No
Yes. List all payments to an insider.
Insider's Name and Address Dates of payment Total amount Amount you Reason for this payment
paid still owe
8. Within 1 year before you filed for bankruptcy, did you make any payments or transfer any property on account of a debt that benefited an
insider?
Include payments on debts guaranteed or cosigned by an insider.
No
Yes. List all payments to an insider
Insider's Name and Address Dates of payment Total amount Amount you Reason for this payment
paid still owe Include creditor's name
9. Within 1 year before you filed for bankruptcy, were you a party in any lawsuit, court action, or administrative proceeding?
List all such matters, including personal injury cases, small claims actions, divorces, collection suits, paternity actions, support or custody
modifications, and contract disputes.
No
Yes. Fill in the details.
Case title Nature of the case Court or agency Status of the case
Case number
Alysson Mills Receiver vs. Jon Civil U. S. District Court Pending
Darrell Seawright S. D. Mississippi On appeal
18-cv-866-CWR-FKB 501 E Court St # 2.500
Concluded
Jackson, MS 39201
Southern Insurance vs. Jon Darrell Civil Madison County Court Pending
Seawright P. O. Box 1626 On appeal
19-cv-01314 128 West North Street
Concluded
Canton, MS 39046
Equlease, LLC vs. Jon Darrell Civil Hinds Circuit Court Pending
Seawright P. O. Box 327 On appeal
19-cv-00026-WLK Jackson, MS 39205
Concluded
10. Within 1 year before you filed for bankruptcy, was any of your property repossessed, foreclosed, garnished, attached, seized, or levied?
Check all that apply and fill in the details below.
11. Within 90 days before you filed for bankruptcy, did any creditor, including a bank or financial institution, set off any amounts from your
accounts or refuse to make a payment because you owed a debt?
No
Yes. Fill in the details.
Creditor Name and Address Describe the action the creditor took Date action was Amount
taken
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 3
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12. Within 1 year before you filed for bankruptcy, was any of your property in the possession of an assignee for the benefit of creditors, a
court-appointed receiver, a custodian, or another official?
No
Yes
13. Within 2 years before you filed for bankruptcy, did you give any gifts with a total value of more than $600 per person?
No
Yes. Fill in the details for each gift.
Gifts with a total value of more than $600 Describe the gifts Dates you gave Value
per person the gifts
14. Within 2 years before you filed for bankruptcy, did you give any gifts or contributions with a total value of more than $600 to any charity?
No
Yes. Fill in the details for each gift or contribution.
Gifts or contributions to charities that total Describe what you contributed Dates you Value
more than $600 contributed
Charity's Name
Address (Number, Street, City, State and ZIP Code)
15. Within 1 year before you filed for bankruptcy or since you filed for bankruptcy, did you lose anything because of theft, fire, other disaster,
or gambling?
No
Yes. Fill in the details.
Describe the property you lost and Describe any insurance coverage for the loss Date of your Value of property
how the loss occurred loss lost
Include the amount that insurance has paid. List pending
insurance claims on line 33 of Schedule A/B: Property.
16. Within 1 year before you filed for bankruptcy, did you or anyone else acting on your behalf pay or transfer any property to anyone you
consulted about seeking bankruptcy or preparing a bankruptcy petition?
Include any attorneys, bankruptcy petition preparers, or credit counseling agencies for services required in your bankruptcy.
No
Yes. Fill in the details.
Person Who Was Paid Description and value of any property Date payment Amount of
Address transferred or transfer was payment
Email or website address made
Person Who Made the Payment, if Not You
Hood & Bolen, PLLC $2,500.00 that includes filing fee and November 1, $2,500.00
3770 Hwy. 80 West educational courses.. 2019.
Jackson, MS 39209
hoodbolen.com
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 4
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17. Within 1 year before you filed for bankruptcy, did you or anyone else acting on your behalf pay or transfer any property to anyone who
promised to help you deal with your creditors or to make payments to your creditors?
Do not include any payment or transfer that you listed on line 16.
No
Yes. Fill in the details.
Person Who Was Paid Description and value of any property Date payment Amount of
Address transferred or transfer was payment
made
18. Within 2 years before you filed for bankruptcy, did you sell, trade, or otherwise transfer any property to anyone, other than property
transferred in the ordinary course of your business or financial affairs?
Include both outright transfers and transfers made as security (such as the granting of a security interest or mortgage on your property). Do not
include gifts and transfers that you have already listed on this statement.
No
Yes. Fill in the details.
Person Who Received Transfer Description and value of Describe any property or Date transfer was
Address property transferred payments received or debts made
paid in exchange
Person's relationship to you
19. Within 10 years before you filed for bankruptcy, did you transfer any property to a self-settled trust or similar device of which you are a
beneficiary? (These are often called asset-protection devices.)
No
Yes. Fill in the details.
Name of trust Description and value of the property transferred Date Transfer was
made
Part 8: List of Certain Financial Accounts, Instruments, Safe Deposit Boxes, and Storage Units
20. Within 1 year before you filed for bankruptcy, were any financial accounts or instruments held in your name, or for your benefit, closed,
sold, moved, or transferred?
Include checking, savings, money market, or other financial accounts; certificates of deposit; shares in banks, credit unions, brokerage
houses, pension funds, cooperatives, associations, and other financial institutions.
No
Yes. Fill in the details.
Name of Financial Institution and Last 4 digits of Type of account or Date account was Last balance
Address (Number, Street, City, State and ZIP account number instrument closed, sold, before closing or
Code) moved, or transfer
transferred
21. Do you now have, or did you have within 1 year before you filed for bankruptcy, any safe deposit box or other depository for securities,
cash, or other valuables?
No
Yes. Fill in the details.
Name of Financial Institution Who else had access to it? Describe the contents Do you still
Address (Number, Street, City, State and ZIP Code) Address (Number, Street, City, have it?
State and ZIP Code)
22. Have you stored property in a storage unit or place other than your home within 1 year before you filed for bankruptcy?
No
Yes. Fill in the details.
Name of Storage Facility Who else has or had access Describe the contents Do you still
Address (Number, Street, City, State and ZIP Code) to it? have it?
Address (Number, Street, City,
State and ZIP Code)
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 5
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23. Do you hold or control any property that someone else owns? Include any property you borrowed from, are storing for, or hold in trust
for someone.
No
Yes. Fill in the details.
Owner's Name Where is the property? Describe the property Value
Address (Number, Street, City, State and ZIP Code) (Number, Street, City, State and ZIP
Code)
Environmental law means any federal, state, or local statute or regulation concerning pollution, contamination, releases of hazardous or
toxic substances, wastes, or material into the air, land, soil, surface water, groundwater, or other medium, including statutes or
regulations controlling the cleanup of these substances, wastes, or material.
Site means any location, facility, or property as defined under any environmental law, whether you now own, operate, or utilize it or used
to own, operate, or utilize it, including disposal sites.
Hazardous material means anything an environmental law defines as a hazardous waste, hazardous substance, toxic substance,
hazardous material, pollutant, contaminant, or similar term.
Report all notices, releases, and proceedings that you know about, regardless of when they occurred.
24. Has any governmental unit notified you that you may be liable or potentially liable under or in violation of an environmental law?
No
Yes. Fill in the details.
Name of site Governmental unit Environmental law, if you Date of notice
Address (Number, Street, City, State and ZIP Code) Address (Number, Street, City, State and know it
ZIP Code)
25. Have you notified any governmental unit of any release of hazardous material?
No
Yes. Fill in the details.
Name of site Governmental unit Environmental law, if you Date of notice
Address (Number, Street, City, State and ZIP Code) Address (Number, Street, City, State and know it
ZIP Code)
26. Have you been a party in any judicial or administrative proceeding under any environmental law? Include settlements and orders.
No
Yes. Fill in the details.
Case Title Court or agency Nature of the case Status of the
Case Number Name case
Address (Number, Street, City,
State and ZIP Code)
Part 11: Give Details About Your Business or Connections to Any Business
27. Within 4 years before you filed for bankruptcy, did you own a business or have any of the following connections to any business?
A sole proprietor or self-employed in a trade, profession, or other activity, either full-time or part-time
A partner in a partnership
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 6
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Yes. Check all that apply above and fill in the details below for each business.
Business Name Describe the nature of the business Employer Identification number
Address Do not include Social Security number or ITIN.
(Number, Street, City, State and ZIP Code) Name of accountant or bookkeeper
Dates business existed
Alexander Seawright Multiple businesses - see EIN:
Suite 400 Schedule A/B # 19.
100 Vision Drive From-To
Jackson, MS 39211
28. Within 2 years before you filed for bankruptcy, did you give a financial statement to anyone about your business? Include all financial
institutions, creditors, or other parties.
No
Yes. Fill in the details below.
Name Date Issued
Address
(Number, Street, City, State and ZIP Code)
I have read the answers on this Statement of Financial Affairs and any attachments, and I declare under penalty of perjury that the answers
are true and correct. I understand that making a false statement, concealing property, or obtaining money or property by fraud in connection
with a bankruptcy case can result in fines up to $250,000, or imprisonment for up to 20 years, or both.
18 U.S.C. §§ 152, 1341, 1519, and 3571.
Did you attach additional pages to Your Statement of Financial Affairs for Individuals Filing for Bankruptcy (Official Form 107)?
No
Yes
Did you pay or agree to pay someone who is not an attorney to help you fill out bankruptcy forms?
No
Yes. Name of Person . Attach the Bankruptcy Petition Preparer's Notice, Declaration, and Signature (Official Form 119).
Official Form 107 Statement of Financial Affairs for Individuals Filing for Bankruptcy page 7
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Debtor 2
(Spouse if, filing) First Name Middle Name Last Name
Case number
(if known) Check if this is an
amended filing
If you are an individual filing under chapter 7, you must fill out this form if:
creditors have claims secured by your property, or
you have leased personal property and the lease has not expired.
You must file this form with the court within 30 days after you file your bankruptcy petition or by the date set for the meeting of creditors,
whichever is earlier, unless the court extends the time for cause. You must also send copies to the creditors and lessors you list
on the form
If two married people are filing together in a joint case, both are equally responsible for supplying correct information. Both debtors must
sign and date the form.
Be as complete and accurate as possible. If more space is needed, attach a separate sheet to this form. On the top of any additional pages,
write your name and case number (if known).
1. For any creditors that you listed in Part 1 of Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D), fill in the
information below.
Identify the creditor and the property that is collateral What do you intend to do with the property that Did you claim the property
secures a debt? as exempt on Schedule C?
Describe your unexpired personal property leases Will the lease be assumed?
Lessor's name: No
Description of leased
Property: Yes
Lessor's name: No
Description of leased
Property: Yes
Official Form 108 Statement of Intention for Individuals Filing Under Chapter 7 page 1
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Lessor's name: No
Description of leased
Property: Yes
Lessor's name: No
Description of leased
Property: Yes
Lessor's name: No
Description of leased
Property: Yes
Lessor's name: No
Description of leased
Property: Yes
Lessor's name: No
Description of leased
Property: Yes
Under penalty of perjury, I declare that I have indicated my intention about any property of my estate that secures a debt and any personal
property that is subject to an unexpired lease.
Official Form 108 Statement of Intention for Individuals Filing Under Chapter 7 page 2
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Fill in this information to identify your case: Check one box only as directed in this form and in Form
122A-1Supp:
Debtor 1 Jon Darrell Seawright
Debtor 2 1. There is no presumption of abuse
(Spouse, if filing)
United States Bankruptcy Court for the: Southern District of Mississippi 2. The calculation to determine if a presumption of abuse
applies will be made under Chapter 7 Means Test
Calculation (Official Form 122A-2).
Case number
(if known)
3. The Means Test does not apply now because of
qualified military service but it could apply later.
Check if this is an amended filing
Official Form 122A - 1
Chapter 7 Statement of Your Current Monthly Income 10/19
Be as complete and accurate as possible. If two married people are filing together, both are equally responsible for being accurate. If more space is needed,
attach a separate sheet to this form. Include the line number to which the additional information applies. On the top of any additional pages, write your name and
case number (if known). If you believe that you are exempted from a presumption of abuse because you do not have primarily consumer debts or because of
qualifying military service, complete and file Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Official Form 122A-1Supp) with this form.
Official Form 122A-1 Chapter 7 Statement of Your Current Monthly Income page 1
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Column A Column B
Debtor 1 Debtor 2 or
non-filing spouse
8. Unemployment compensation $ $
Do not enter the amount if you contend that the amount received was a benefit under
the Social Security Act. Instead, list it here:
For you $
For your spouse $
9. Pension or retirement income. Do not include any amount received that was a
benefit under the Social Security Act. Also, except as stated in the next sentence, do
not include any compensation, pension, pay, annuity, or allowance paid by the
United States Government in connection with a disability, combat-related injury or
disability, or death of a member of the uniformed services. If you received any retired
pay paid under chapter 61 of title 10, then include that pay only to the extent that it
does not exceed the amount of retired pay to which you would otherwise be entitled
if retired under any provision of title 10 other than chapter 61 of that title. $ $
10. Income from all other sources not listed above. Specify the source and amount.
Do not include any benefits received under the Social Security Act; payments
received as a victim of a war crime, a crime against humanity, or international or
domestic terrorism; or compensation, pension, pay, annuity, or allowance paid by the
United States Government in connection with a disability, combat-related injury or
disability, or death of a member of the uniformed services. If necessary, list other
sources on a separate page and put the total below.
. $ $
$ $
Total amounts from separate pages, if any. + $ $
11. Calculate your total current monthly income. Add lines 2 through 10 for
each column. Then add the total for Column A to the total for Column B. $ + $ = $
12. Calculate your current monthly income for the year. Follow these steps:
12a. Copy your total current monthly income from line 11 Copy line 11 here=> $
13. Calculate the median family income that applies to you. Follow these steps:
Fill in the state in which you live.
Fill in the median family income for your state and size of household. 13. $
To find a list of applicable median income amounts, go online using the link specified in the separate instructions
for this form. This list may also be available at the bankruptcy clerk’s office.
14. How do the lines compare?
14a. Line 12b is less than or equal to line 13. On the top of page 1, check box 1, There is no presumption of abuse.
Go to Part 3.
14b. Line 12b is more than line 13. On the top of page 1, check box 2, The presumption of abuse is determined by Form 122A-2.
Go to Part 3 and fill out Form 122A-2.
Part 3: Sign Below
By signing here, I declare under penalty of perjury that the information on this statement and in any attachments is true and correct.
If you checked line 14a, do NOT fill out or file Form 122A-2.
If you checked line 14b, fill out Form 122A-2 and file it with this form.
Official Form 122A-1 Chapter 7 Statement of Your Current Monthly Income page 3
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Debtor 2
(Spouse, if filing)
File this supplement together with Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1), if you believe that you are
exempted from a presumption of abuse. Be as complete and accurate as possible. If two married people are filing together, and any of the
exclusions in this statement applies to only one of you, the other person should complete a separate Form 122A-1 If you believe that this is
required by 11 U.S.C. § 707(b)(2)(C).
1. Are your debts primarily consumer debts? Consumer debts are defined in 11 U.S.C. § 101(8) as "incurred by an individual primarily for a
personal, family, or household purpose." Make sure that your answer is consistent with the answer you gave at line 16 of the Voluntary Petition for
Individuals Filing for Bankruptcy (Official Form 1).
No. Go to Form 122A-1; on the top of page 1 of that form, check box 1, There is no presumption of abuse, and sign Part 3. Then submit this
supplement with the signed Form 122A-1.
Yes. Go to Part 2.
3. Are you or have you been a Reservist or member of the National Guard?
No. Complete Form 122A-1. Do not submit this supplement.
Yes. Were you called to active duty or did you perform a homeland defense activity? 10 U.S.C. § 101(d)(1); 32 U.S.C. § 901(1).
No. Complete Form 122A-1. Do not submit this supplement.
Yes. Check any one of the following categories that applies:
If you checked one of the categories to the left, go to Form
I was called to active duty after September 11, 2001, for at least 122A-1. On the top of page 1 of Form 122A-1, check box 3,
90 days and remain on active duty. The Means Test does not apply now, and sign Part 3. Then
submit this supplement with the signed Form 122A-1. You
I was called to active duty after September 11, 2001, for at least are not required to fill out the rest of Official Form 122A-1
90 days and was released from active duty on , during the exclusion period. The exclusion period means
which is fewer than 540 days before I file this bankruptcy case. the time you are on active duty or are performing a
homeland defense activity, and for 540 days afterward. 11
I am performing a homeland defense activity for at least 90 days. U.S.C. § 707(b)(2)(D)(ii).
Official Form 122A-1Supp Statement of Exemption from Presumption of Abuse Under § 707(b)(2) page 1
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Chapter 7: Liquidation
This notice is for you if:
$245 filing fee
You are an individual filing for bankruptcy,
and $75 administrative fee
Chapter 12 - Voluntary repayment plan However, if the court finds that you have committed
for family farmers or certain kinds of improper conduct described in the
fishermen Bankruptcy Code, the court may deny your
discharge.
Chapter 13 - Voluntary repayment plan
for individuals with regular You should know that even if you file chapter 7 and
income you receive a discharge, some debts are not
discharged under the law. Therefore, you may still
be responsible to pay:
You should have an attorney review your
decision to file for bankruptcy and the choice of most taxes;
chapter.
most student loans;
Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form 2010) page 1
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most fines, penalties, forfeitures, and criminal your income is more than the median income for your
restitution obligations; and state of residence and family size, depending on the
results of the Means Test, the U.S. trustee, bankruptcy
certain debts that are not listed in your bankruptcy administrator, or creditors can file a motion to dismiss
papers. your case under § 707(b) of the Bankruptcy Code. If a
motion is filed, the court will decide if your case should
You may also be required to pay debts arising from: be dismissed. To avoid dismissal, you may choose to
proceed under another chapter of the Bankruptcy
fraud or theft; Code.
fraud or defalcation while acting in breach of If you are an individual filing for chapter 7 bankruptcy,
fiduciary capacity; the trustee may sell your property to pay your debts,
subject to your right to exempt the property or a portion
intentional injuries that you inflicted; and of the proceeds from the sale of the property. The
property, and the proceeds from property that your
death or personal injury caused by operating a bankruptcy trustee sells or liquidates that you are
motor vehicle, vessel, or aircraft while intoxicated entitled to, is called exempt property. Exemptions may
from alcohol or drugs. enable you to keep your home, a car, clothing, and
household items or to receive some of the proceeds if
If your debts are primarily consumer debts, the court the property is sold.
can dismiss your chapter 7 case if it finds that you have
enough income to repay creditors a certain amount. Exemptions are not automatic. To exempt property,
You must file Chapter 7 Statement of Your Current you must list it on Schedule C: The Property You Claim
Monthly Income (Official Form 122A–1) if you are an as Exempt (Official Form 106C). If you do not list the
individual filing for bankruptcy under chapter 7. This property, the trustee may sell it and pay all of the
form will determine your current monthly income and proceeds to your creditors.
compare whether your income is more than the median
income that applies in your state.
Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form 2010) page 2
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Because bankruptcy can have serious long-term financial and legal consequences, including loss of
your property, you should hire an attorney and carefully consider all of your options before you file.
Only an attorney can give you legal advice about what can happen as a result of filing for bankruptcy
and what your options are. If you do file for bankruptcy, an attorney can help you fill out the forms
properly and protect you, your family, your home, and your possessions.
Although the law allows you to represent yourself in bankruptcy court, you should understand that
many people find it difficult to represent themselves successfully. The rules are technical, and a mistake
or inaction may harm you. If you file without an attorney, you are still responsible for knowing and
following all of the legal requirements.
You should not file for bankruptcy if you are not eligible to file or if you do not intend to file the
necessary documents.
Bankruptcy fraud is a serious crime; you could be fined and imprisoned if you commit fraud in your
bankruptcy case. Making a false statement, concealing property, or obtaining money or property by
fraud in connection with a bankruptcy case can result in fines up to $250,000, or imprisonment for up to
20 years, or both. 18 U.S.C. §§ 152, 1341, 1519, and 3571.
Under chapter 13, you must file with the court a plan
Chapter 12: Repayment plan for family to repay your creditors all or part of the money that
farmers or fishermen you owe them, usually using your future earnings. If
the court approves your plan, the court will allow you
to repay your debts, as adjusted by the plan, within 3
$200 filing fee years or 5 years, depending on your income and other
+ $75 administrative fee factors.
$275 total fee
After you make all the payments under your plan,
Similar to chapter 13, chapter 12 permits family farmers many of your debts are discharged. The debts that are
and fishermen to repay their debts over a period of time not discharged and that you may still be responsible to
using future earnings and to discharge some debts that pay include:
are not paid.
domestic support obligations,
Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form 2010) page 3
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For more information about the documents and The law generally requires that you receive a credit
their deadlines, go to: counseling briefing from an approved credit counseling
http://www.uscourts.gov/bkforms/bankruptcy_form agency. 11 U.S.C. § 109(h). If you are filing a joint
s.html#procedure. case, both spouses must receive the briefing. With
limited exceptions, you must receive it within the 180
days before you file your bankruptcy petition. This
Bankruptcy crimes have serious consequences briefing is usually conducted by telephone or on the
Internet.
If you knowingly and fraudulently conceal assets
or make a false oath or statement under penalty In addition, after filing a bankruptcy case, you generally
of perjury—either orally or in writing—in must complete a financial management instructional
connection with a bankruptcy case, you may be course before you can receive a discharge. If you are
fined, imprisoned, or both. filing a joint case, both spouses must complete the
course.
All information you supply in connection with a
bankruptcy case is subject to examination by the You can obtain the list of agencies approved to provide
Attorney General acting through the Office of the both the briefing and the instructional course from:
U.S. Trustee, the Office of the U.S. Attorney, and http://justice.gov/ust/eo/hapcpa/ccde/cc_approved.html
other offices and employees of the U.S. .
Department of Justice.
In Alabama and North Carolina, go to:
Make sure the court has your mailing address http://www.uscourts.gov/FederalCourts/Bankruptcy/
BankruptcyResources/ApprovedCredit
The bankruptcy court sends notices to the mailing AndDebtCounselors.aspx.
address you list on Voluntary Petition for Individuals
Filing for Bankruptcy (Official Form 101). To ensure If you do not have access to a computer, the clerk of
that you receive information about your case, the bankruptcy court may be able to help you obtain
Bankruptcy Rule 4002 requires that you notify the court the list.
of any changes in your address.
Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form 2010) page 4
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4. I have not agreed to share the above-disclosed compensation with any other person unless they are members and associates of my law firm.
I have agreed to share the above-disclosed compensation with a person or persons who are not members or associates of my law firm. A
copy of the agreement, together with a list of the names of the people sharing in the compensation is attached.
5. In return for the above-disclosed fee, I have agreed to render legal service for all aspects of the bankruptcy case, including:
a. Analysis of the debtor's financial situation, and rendering advice to the debtor in determining whether to file a petition in bankruptcy;
b. Preparation and filing of any petition, schedules, statement of affairs and plan which may be required;
c. Representation of the debtor at the meeting of creditors and confirmation hearing, and any adjourned hearings thereof;
d. [Other provisions as needed]
Negotiations with secured creditors to reduce to market value; exemption planning; preparation and filing of
reaffirmation agreements and applications as needed; preparation and filing of motions pursuant to 11 USC
522(f)(2)(A) for avoidance of liens on household goods.
6. By agreement with the debtor(s), the above-disclosed fee does not include the following service:
Representation of the debtors in any dischargeability actions, judicial lien avoidances, relief from stay actions or
any other adversary proceeding.
CERTIFICATION
I certify that the foregoing is a complete statement of any agreement or arrangement for payment to me for representation of the debtor(s) in
this bankruptcy proceeding.
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Fill in this information to identify your case: Check one box only as directed in this form and in Form
122A-1Supp:
Debtor 1 Jon Darrell Seawright
Debtor 2 1. There is no presumption of abuse
(Spouse, if filing)
United States Bankruptcy Court for the: Southern District of Mississippi 2. The calculation to determine if a presumption of abuse
applies will be made under Chapter 7 Means Test
Calculation (Official Form 122A-2).
Case number
(if known)
3. The Means Test does not apply now because of
qualified military service but it could apply later.
Check if this is an amended filing
Official Form 122A - 1
Chapter 7 Statement of Your Current Monthly Income 10/19
Be as complete and accurate as possible. If two married people are filing together, both are equally responsible for being accurate. If more space is needed,
attach a separate sheet to this form. Include the line number to which the additional information applies. On the top of any additional pages, write your name and
case number (if known). If you believe that you are exempted from a presumption of abuse because you do not have primarily consumer debts or because of
qualifying military service, complete and file Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Official Form 122A-1Supp) with this form.
Official Form 122A-1 Chapter 7 Statement of Your Current Monthly Income page 1
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Column A Column B
Debtor 1 Debtor 2 or
non-filing spouse
8. Unemployment compensation $ $
Do not enter the amount if you contend that the amount received was a benefit under
the Social Security Act. Instead, list it here:
For you $
For your spouse $
9. Pension or retirement income. Do not include any amount received that was a
benefit under the Social Security Act. Also, except as stated in the next sentence, do
not include any compensation, pension, pay, annuity, or allowance paid by the
United States Government in connection with a disability, combat-related injury or
disability, or death of a member of the uniformed services. If you received any retired
pay paid under chapter 61 of title 10, then include that pay only to the extent that it
does not exceed the amount of retired pay to which you would otherwise be entitled
if retired under any provision of title 10 other than chapter 61 of that title. $ $
10. Income from all other sources not listed above. Specify the source and amount.
Do not include any benefits received under the Social Security Act; payments
received as a victim of a war crime, a crime against humanity, or international or
domestic terrorism; or compensation, pension, pay, annuity, or allowance paid by the
United States Government in connection with a disability, combat-related injury or
disability, or death of a member of the uniformed services. If necessary, list other
sources on a separate page and put the total below.
. $ $
$ $
Total amounts from separate pages, if any. + $ $
11. Calculate your total current monthly income. Add lines 2 through 10 for
each column. Then add the total for Column A to the total for Column B. $ + $ = $
12. Calculate your current monthly income for the year. Follow these steps:
12a. Copy your total current monthly income from line 11 Copy line 11 here=> $
13. Calculate the median family income that applies to you. Follow these steps:
Fill in the state in which you live.
Fill in the median family income for your state and size of household. 13. $
To find a list of applicable median income amounts, go online using the link specified in the separate instructions
for this form. This list may also be available at the bankruptcy clerk’s office.
14. How do the lines compare?
14a. Line 12b is less than or equal to line 13. On the top of page 1, check box 1, There is no presumption of abuse.
Go to Part 3.
14b. Line 12b is more than line 13. On the top of page 1, check box 2, The presumption of abuse is determined by Form 122A-2.
Go to Part 3 and fill out Form 122A-2.
Part 3: Sign Below
By signing here, I declare under penalty of perjury that the information on this statement and in any attachments is true and correct.
If you checked line 14a, do NOT fill out or file Form 122A-2.
If you checked line 14b, fill out Form 122A-2 and file it with this form.
Official Form 122A-1 Chapter 7 Statement of Your Current Monthly Income page 3
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Debtor 2
(Spouse, if filing)
File this supplement together with Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1), if you believe that you are
exempted from a presumption of abuse. Be as complete and accurate as possible. If two married people are filing together, and any of the
exclusions in this statement applies to only one of you, the other person should complete a separate Form 122A-1 If you believe that this is
required by 11 U.S.C. § 707(b)(2)(C).
1. Are your debts primarily consumer debts? Consumer debts are defined in 11 U.S.C. § 101(8) as "incurred by an individual primarily for a
personal, family, or household purpose." Make sure that your answer is consistent with the answer you gave at line 16 of the Voluntary Petition for
Individuals Filing for Bankruptcy (Official Form 1).
No. Go to Form 122A-1; on the top of page 1 of that form, check box 1, There is no presumption of abuse, and sign Part 3. Then submit this
supplement with the signed Form 122A-1.
Yes. Go to Part 2.
3. Are you or have you been a Reservist or member of the National Guard?
No. Complete Form 122A-1. Do not submit this supplement.
Yes. Were you called to active duty or did you perform a homeland defense activity? 10 U.S.C. § 101(d)(1); 32 U.S.C. § 901(1).
No. Complete Form 122A-1. Do not submit this supplement.
Yes. Check any one of the following categories that applies:
If you checked one of the categories to the left, go to Form
I was called to active duty after September 11, 2001, for at least 122A-1. On the top of page 1 of Form 122A-1, check box 3,
90 days and remain on active duty. The Means Test does not apply now, and sign Part 3. Then
submit this supplement with the signed Form 122A-1. You
I was called to active duty after September 11, 2001, for at least are not required to fill out the rest of Official Form 122A-1
90 days and was released from active duty on , during the exclusion period. The exclusion period means
which is fewer than 540 days before I file this bankruptcy case. the time you are on active duty or are performing a
homeland defense activity, and for 540 days afterward. 11
I am performing a homeland defense activity for at least 90 days. U.S.C. § 707(b)(2)(D)(ii).
Official Form 122A-1Supp Statement of Exemption from Presumption of Abuse Under § 707(b)(2) page 1
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undersigned counsel, file this Answer and Affirmative Defenses in response to the Complaint
filed against them by Plaintiff Alysson Mills, in her capacity as Receiver for Arthur Lamar
ANSWER
Subject to and without waiving any of their affirmative defenses stated below, the
Alexander Seawright Defendants answer the specific allegations of the Receiver’s Complaint,
corresponding to those in the Complaint. For convenience, the Alexander Seawright Defendants
may answer several consecutive paragraphs of the Receiver’s Complaint with a single response,
Case 3:18-cv-00866-CWR-FKB Document 33 Filed 03/06/19 Page 2 of 33
identifying the paragraphs to which the response is directed. All allegations of the Receiver’s
Complaint that are not expressly admitted in this Answer are hereby denied. The Alexander
Seawright Defendants’ admissions are confined to the exact language in this Answer, and to the
extent that any response varies from the wording of the allegations of the Complaint, those
allegations are denied. The Alexander Seawright Defendants deny all allegations and inferences
INTRODUCTION
The Receiver’s allegations in her Introduction are not directed to the Alexander
Seawright Defendants and therefore do not require a response from them. To the extent a
response is required from the Alexander Seawright Defendants, they are without sufficient
knowledge and information to respond to all of the allegations in the Introduction and therefore
deny the same, except as follows. The Alexander Seawright Defendants admit: it is apparent that
Adams and Madison Timber operated a Ponzi scheme that defrauded hundreds of lenders,
including Alexander and Seawright; the Alexander Seawright Defendants believed that Madison
Timber used their money as well as other lenders’ money to purchase timber from landowners,
sold the timber to lumber mills at a higher price, and repaid lenders their principal plus interest
with the proceeds of those timber sales. The Alexander Seawright Defendants deny the
remaining allegations in the Introduction. All allegations not expressly admitted are denied. The
Alexander Seawright Defendants affirmatively state that they had no knowledge of Adams’s
response is required from the Alexander Seawright Defendants. To the extent a response is
required from the Alexander Seawright Defendants, they admit that this Court has jurisdiction
2
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over this action and the parties and that venue is proper in this Court. All allegations not
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit that this action is related to a
civil action pending before the Court styled Securities and Exchange Commission v. Arthur
Lamar Adams and Madison Timber Properties, LLC, No. 3:18-cv-252-CWR-FKB. The
pleadings in that action speak for themselves. All allegations not expressly admitted are denied.
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 3 attempt to state legal conclusions to which no response is required by the Alexander
Seawright Defendants. To the extent a response is required from the Alexander Seawright
Defendants, they deny that the Receiver is entitled to bring any suit or claim against them. All
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they state that the pleadings filed in
Securities and Exchange Commission v. Arthur Lamar Adams and Madison Timber Properties,
LLC, No. 3:18-cv-252-CWR-FKB, speak for themselves. All allegations not expressly admitted
are denied.
PARTIES
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 5 attempt to state legal conclusions to which no response is required by the Alexander
3
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Seawright Defendants. To the extent a response is required from the Alexander Seawright
Defendants, they admit that Plaintiff Alysson Mills has been appointed by the Court as Receiver
for the estates of Adams and Madison Timber. The Alexander Seawright Defendants deny the
remaining allegations of Paragraph 5 to the extent they are inconsistent with the Court’s order,
which speaks for itself. The Alexander Seawright Defendants deny that the Receiver has
standing to pursue claims against them. All allegations not expressly admitted are denied.
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit upon information and belief that
Butler Snow LLP is a limited liability partnership doing business in Mississippi. All allegations
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit upon information and belief that
Butler Snow Advisory Services, LLC is a Mississippi limited liability company doing business in
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny the allegations in Paragraph 8 and therefore deny the same. All
Defendants and therefore do not require a response from them. To the extent a response is
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required from the Alexander Seawright Defendants, they admit that Baker, Donelson, Bearman,
10. Admitted.
11. Admitted.
12. The Alexander Seawright Defendants admit that Jon Seawright is an adult
resident of Jackson, Mississippi, that he is a shareholder of Baker Donelson, and that he and
Brent Alexander are the sole members of Alexander Seawright, LLC. The Alexander Seawright
Defendants admit that Jon Seawright was previously a member of Baker Donelson’s national
governing Board of Directors, although he is not currently a member of the Board of Directors.
13. The allegations in Paragraph 13 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit that Adams, through Madison
Timber, operated a Ponzi scheme that purported to purchase timber from landowners and resell it
to lumber mills at higher prices. All allegations not expressly admitted are denied.
14. The allegations in Paragraph 14 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny the allegations in Paragraph 14 and therefore deny the same.
15. The allegations in Paragraph 15 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit that they believed Madison
5
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Timber would use the loans to acquire timber deeds and cutting agreements; that Madison
Timber would sell the timber to lumber mills at a higher price; and that Madison Timber would
use proceeds of those sales to repay the lenders principal plus interest. All allegations not
16. The allegations in Paragraph 16 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit that lenders received promissory
notes in the amount of their loans, payable in twelve monthly installments together with
promised interest. They admit that lenders received twelve pre-dated checks, each in the amount
of the installment due under the promissory note. They admit that lenders received a timber deed
and cutting agreement by which a named landowner purported to grant to Madison Timber the
rights to harvest timber on the land described in the deed and by which Madison Timber
purported to grant its rights to the lender. All allegations not expressly admitted are denied.
17. The allegations in Paragraph 17 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit upon information and belief that
most if not all of the timber deeds and cutting agreements have been deemed to be fraudulent.
The Alexander Seawright Defendants are without sufficient knowledge and information to admit
or deny the remaining allegations in Paragraph 17 and therefore deny the same. All allegations
18. The allegations in Paragraph 18 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
6
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required from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny the allegations in Paragraph 18 and therefore deny the same.
19. The allegations in Paragraph 19 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny the allegations in Paragraph 19 and therefore deny the same.
20. The allegations in Paragraph 20 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit that Adams turned himself into
authorities on or about April 19, 2018. The Alexander Seawright Defendants are without
sufficient knowledge and information to admit or deny the remaining allegations in Paragraph 20
and therefore deny the same. All allegations not expressly admitted are denied.
21. The allegations in Paragraph 21 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit the allegations in Paragraph 21,
22. The allegations in Paragraph 22 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they admit the allegations in Paragraph 22,
response is required by the Alexander Seawright Defendants. To the extent a response is required
7
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from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny the allegations in Paragraph 23 and therefore deny the same.
24. Some of the allegations in Paragraph 24 are not directed to the Alexander
Seawright Defendants and therefore do not require a response from them. Further, the allegations
Alexander Seawright Defendants. To the extent a response is required from the Alexander
response is required by the Alexander Seawright Defendants. To the extent a response is required
from the Alexander Seawright Defendants, they deny the allegations in Paragraph 25.
BUTLER SNOW
26. – 67. Paragraphs 26 through 67 of the Receiver’s Complaint are not directed to the
Alexander Seawright Defendants and therefore do not require a response from them. To the
extent a response is required from the Alexander Seawright Defendants, they are without
sufficient knowledge and information to admit or deny the allegations in Paragraphs 26 through
BAKER DONELSON
68. Denied.
69. Denied.
70. The Alexander Seawright Defendants deny that they formed a partnership with
Adams. The Alexander Seawright Defendants admit that Alexander Seawright, LLC worked in
good faith to coordinate loans from Alexander Seawright Timber Fund I, LLC (“Timber Fund
I”), of which Alexander Seawright, LLC was a member, to Madison Timber. In exchange for its
8
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work coordinating the loans, Madison Timber paid Alexander Seawright, LLC loan-origination
fees. The Alexander Seawright Defendants admit that they believed the loans were low risk. The
Alexander Seawright Defendants deny the allegedly quoted language set forth in Paragraph 70 to
the extent the same is inconsistent with the documents, emails, and text messages produced by
the Alexander Seawright Defendants to the Receiver. All allegations not expressly admitted are
denied.
71. The Alexander Seawright Defendants admit that they believed Madison Timber
was a legitimate business that presented an opportunity for lenders to earn interest on their loans.
The Alexander Seawright Defendants deny that they pitched the first loan opportunity to a client
of Baker Donelson. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 71 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
72. The Alexander Seawright Defendants admit that Madison Timber paid Alexander
Seawright, LLC loan-origination fees. The Alexander Seawright Defendants admit that Adams
sometimes referred to the fees as “birddog fees.” The Alexander Seawright Defendants deny the
allegedly quoted language set forth in Paragraph 72 to the extent the same is inconsistent with
the documents, emails, and text messages produced by the Alexander Seawright Defendants to
73. The Alexander Seawright Defendants admit that Madison Timber paid Alexander
Seawright, LLC loan-origination fees. The Alexander Seawright Defendants deny the remaining
9
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74. The Alexander Seawright Defendants admit that Alexander Seawright, LLC
prepared subscription agreements and accompanying documents for the loans to Madison
Timber from Timber Fund I, which was initially called Alewright Investments, LLC. The
Alexander Seawright Defendants admit that Alexander Seawright, LLC worked in good faith to
coordinate loans from Timber Fund I, of which Alexander Seawright, LLC was a member, to
Madison Timber. In exchange for its work coordinating the loans, Madison Timber paid
Alexander Seawright, LLC loan-origination fees. The Alexander Seawright Defendants deny the
75. The Alexander Seawright Defendants deny that they “pitched their fund to
potential investors, including Baker Donelson clients, as an exclusive ‘friends and family’ fund.”
The Alexander Seawright Defendants admit that Brent Alexander used the phrase “simple,
elegant and profitable” to describe the Timber Fund I loan model. The Alexander Seawright
Defendants deny that “neither Alexander nor Seawright invested their own money in the fund.”
The Alexander Seawright Defendants deny the other allegedly quoted language set forth in
Paragraph 75 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
76. The Alexander Seawright Defendants deny that “Alexander was a persistent
salesman.” The Alexander Seawright Defendants deny the allegedly quoted language set forth in
Paragraph 76 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
10
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77. The Alexander Seawright Defendants deny that “[i]f a potential investor was
noncommittal, Alexander applied pressure.” The Alexander Seawright Defendants deny the
allegedly quoted language set forth in Paragraph 77 to the extent the same is inconsistent with
the documents, emails, and text messages produced by the Alexander Seawright Defendants to
78. Denied.
response is required by the Alexander Seawright Defendants. To the extent a response is required
from the Alexander Seawright Defendants, they are without sufficient knowledge and
information to admit or deny allegations regarding what lenders might have “reasonably
believed” and therefore deny the same. All allegations not expressly admitted are denied.
80. Denied.
81. The Alexander Seawright Defendants deny the allegations of Paragraph 81 to the
extent they are inconsistent with the biographies of Jon Seawright and Brent Alexander on the
Baker Donelson website. All allegations not expressly admitted are denied.
82. Denied.
83. The Alexander Seawright Defendants admit that they occasionally used Baker
Donelson’s Jackson, Mississippi office address for business related to the loans by Timber Fund
I to Madison Timber. The Alexander Seawright Defendants deny the remaining allegations of
Paragraph 83.
84. The Alexander Seawright Defendants admit that they discussed the Timber Fund I
loans with Baker Donelson colleagues. The Alexander Seawright Defendants deny the allegedly
quoted language set forth in Paragraph 84 to the extent the same is inconsistent with the
11
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documents, emails, and text messages produced by the Alexander Seawright Defendants to the
85. The Alexander Seawright Defendants deny that that they undertook no
meaningful evaluations of the loans. The Alexander Seawright Defendants admit that they asked
about potential risks to the timber in the event of natural disasters, and they received assurances
from Adams that all tracts were covered by an umbrella insurance policy. The Alexander
Seawright Defendants deny the allegedly quoted language set forth in Paragraph 85 to the extent
the same is inconsistent with documents, emails, and text messages produced by the Alexander
Seawright Defendants to the Receiver. All allegations not expressly admitted are denied.
86. The Alexander Seawright Defendants admit that they gave lenders “Equity Term
Sheets” that described the terms of loans to be made from Timber Fund I to Madison Timber.
The Alexander Seawright Defendants deny that the March 5, 2017 Equity Term Sheet states that
the Alexander Seawright Defendants would personally inspect the property. The Alexander
Seawright Defendants deny the allegedly quoted language set forth in Paragraph 86 to the extent
the same is inconsistent with documents, emails, and text messages produced by the Alexander
Seawright Defendants to the Receiver. All allegations not expressly admitted are denied.
87. The Alexander Seawright Defendants admit that they prepared a loan closing
checklist that speaks for itself. The Alexander Seawright Defendants deny the remaining
88. The Alexander Seawright Defendants admit that they inspected tracts of land that
were the subjects of the property deeds. The Alexander Seawright Defendants deny the allegedly
quoted language set forth in Paragraph 88 to the extent the same is inconsistent with the
12
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documents, emails, and text messages produced by the Alexander Seawright Defendants to the
89. Denied.
90. Denied.
response is required by the Alexander Seawright Defendants. To the extent a response is required
from the Alexander Seawright Defendants, they deny all of the allegations in Paragraph 91.
92. The Alexander Seawright Defendants deny that they did not undertake
meaningful investigations of the loans. The Alexander Seawright Defendants deny the allegedly
quoted language set forth in Paragraph 92 to the extent the same is inconsistent with the
documents, emails, and text messages produced by the Alexander Seawright Defendants to the
93. Denied.
94. Denied.
95. The Alexander Seawright Defendants admit upon information and belief that the
majority of timber deeds and cutting agreements have been deemed to be fraudulent. The
Alexander Seawright Defendants deny that they should have recognized that the signatures were
forged by Adams, because the deeds were notarized. The Alexander Seawright Defendants deny
96. The Alexander Seawright Defendants lack sufficient knowledge and information
to admit or deny whether Madison Timber ever had any real contracts with mills and whether a
call to the mills would have “confirmed the truth,” and therefore deny those allegations. The
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Alexander Seawright Defendants admit that they never called a mill. All allegations not
97. The Alexander Seawright Defendants admit that Adams required lenders to agree
not to record the deeds unless Madison Timber failed to make a payment due under the
promissory note. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 97 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. The Alexander
98. The Alexander Seawright Defendants are without sufficient knowledge and
information to admit or deny the allegations in the first sentence of Paragraph 98 and therefore
deny the same. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 98 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. The Alexander
99. The Alexander Seawright Defendants are without sufficient knowledge and
information to admit or deny the allegations in the first two sentences of Paragraph 99 and
therefore deny the same. The Alexander Seawright Defendants deny that they never “evaluated
the investment in light of” market considerations. The Alexander Seawright Defendants deny the
allegedly quoted language set forth in Paragraph 99 to the extent the same is inconsistent with
the documents, emails, and text messages produced by the Alexander Seawright Defendants to
100. The Alexander Seawright Defendants admit that Adams told them that Madison
Timber would not issue checks in December going forward and that what had been a 12-month
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payoff would become a 13-month payoff, skipping the last month of the year. The Alexander
Seawright Defendants deny the allegedly quoted language set forth in Paragraph 100 to the
extent the same is inconsistent with the documents, emails, and text messages produced by the
Alexander Seawright Defendants to the Receiver. The Alexander Seawright Defendants deny the
101. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 101 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. The Alexander
Seawright Defendants affirmatively state that Alexander Seawright Timber Fund II, LLC
(“Timber Fund II”) was formed on April 23, 2018, the day before the Alexander Seawright
Defendants learned that Madison Timber was a sham. Timber Fund II never started operations, it
never accepted any members other than Alexander Seawright, LLC, and it never participated in
any loans to Madison Timber. All allegations not expressly admitted are denied.
102. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 102 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. The Alexander
Seawright Defendants admit that they used Baker Donelson’s Jackson, Mississippi office for
business related to Timber Fund I. Again, the Alexander Seawright Defendants affirmatively
state that Timber Fund II was formed on April 23, 2018, the day before the Alexander Seawright
Defendants learned that Madison Timber was a sham. Fund II never started operations, it never
accepted any members other than Alexander Seawright, LLC, and it never participated in any
loans to Madison Timber. All allegations not expressly admitted are denied.
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103. The Alexander Seawright Defendants admit that they formed Timber Fund II. The
Alexander Seawright Defendants admit that they compiled information regarding their proposal
for Timber Fund II to share with potential lenders, which speaks for itself. The Alexander
Seawright Defendants deny the allegedly quoted language set forth in Paragraph 103 to the
extent the same is inconsistent with the documents, emails, and text messages produced by the
Alexander Seawright Defendants to the Receiver. All allegations not expressly admitted are
denied.
104. The Alexander Seawright Defendants admit that they compiled information
regarding their proposal for Timber Fund II to share with potential lenders, which speaks for
itself. The Alexander Seawright Defendants deny the allegedly quoted language set forth in
Paragraph 104 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
105. The Alexander Seawright Defendants admit that they received feedback regarding
Timber Fund II that was “not all good.” The Alexander Seawright Defendants deny the allegedly
quoted language set forth in Paragraph 105 to the extent the same is inconsistent with the
documents, emails, and text messages produced by the Alexander Seawright Defendants to the
106. The Alexander Seawright Defendants deny that they did not stand to lose money
in Timber Fund I. The Alexander Seawright Defendants further deny that they would not have
stood to lose money in Timber Fund II, had it begun operations. The Alexander Seawright
Defendants deny the allegedly quoted language set forth in Paragraph 106 to the extent the same
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is inconsistent with the documents, emails, and text messages produced by the Alexander
Seawright Defendants to the Receiver. All allegations not expressly admitted are denied.
107. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 107 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
108. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 108 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
109. The Alexander Seawright Defendants admit that they identified an initial key
lender for Timber Fund II, but that loan was never made. The Alexander Seawright Defendants
deny the allegedly quoted language set forth in Paragraph 109 to the extent the same is
inconsistent with the documents, emails, and text messages produced by the Alexander
Seawright Defendants to the Receiver. All allegations not expressly admitted are denied.
110. The Alexander Seawright Defendants deny that the initial key lender for Timber
Fund II was a Baker Donelson client. The Alexander Seawright Defendants deny the allegedly
quoted language set forth in Paragraph 110 to the extent the same is inconsistent with the
documents, emails, and text messages produced by the Alexander Seawright Defendants to the
111. The Alexander Seawright Defendants admit that they opened a bank account for
Timber Fund II. The Alexander Seawright Defendants deny the allegedly quoted language set
forth in Paragraph 111 to the extent the same is inconsistent with the documents, emails, and text
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messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
112. The Alexander Seawright Defendants admit that Adams turned himself into
authorities and admitted the fraud before Timber Fund II began operations. The Alexander
Seawright Defendants admit that they told others that they were victims of Adams’s fraud, and
they are. The Alexander Seawright Defendants deny the allegedly quoted language set forth in
Paragraph 112 to the extent the same is inconsistent with the documents, emails, and text
messages produced by the Alexander Seawright Defendants to the Receiver. All allegations not
CAUSES OF ACTION
COUNT I
114. The allegations in Paragraph 114 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 114, they deny the same.
115. Denied.
116. Denied.
117. The Alexander Seawright Defendants admit that Madison Timber has been
determined to be a Ponzi scheme. The Alexander Seawright Defendants affirmatively state they
never knew Adams was a fraud, they never knew Madison Timber was a Ponzi scheme, and they
never acted with an unlawful purpose. All allegations not expressly admitted are denied.
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118. Denied.
119. Denied.
120. Denied.
121. Denied.
122. Denied.
123. Denied.
124. Denied.
125. Denied.
COUNT II
127. The allegations in Paragraph 127 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 127, they deny the same.
128. Denied.
129. Denied.
130. Denied.
131. Denied.
132. Denied.
133. Denied.
134. Denied.
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COUNT III
136. The allegations in Paragraph 136 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 136, they deny the same.
137. The allegations in Paragraph 137 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 137, they deny the same.
138. Denied.
139. Denied.
140. Denied.
141. Denied.
142. Denied.
143. Denied.
144. Denied.
COUNT IV
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146. The allegations in Paragraph 146 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 146, they deny the same.
147. The allegations in Paragraph 147 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 147, they deny the same.
148. The allegations in Paragraph 148 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 148, they deny the same.
149. The allegations in Paragraph 149 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 149, they deny the same.
COUNT V
151. The allegations in Paragraph 151 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 151, they deny the same.
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152. The allegations in Paragraph 152 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 152, they deny the same.
153. The allegations in Paragraph 153 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 153, they deny the same.
154. Denied.
155. Denied.
156. Denied.
157. Denied.
158. Denied.
COUNT VI
160. The allegations in Paragraph 160 attempt to state legal conclusions to which no
response is required by the Alexander Seawright Defendants. To the extent a response is required
by the Alexander Seawright Defendants to the allegations in Paragraph 160, they deny the same.
161. Denied.
162. Denied.
163. Denied.
164. Denied.
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COUNT VII
166. The allegations in Paragraph 166 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 166 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants, they deny the allegations in
Paragraph 166.
167. The allegations in Paragraph 167 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 167.
168. The allegations in Paragraph 168 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 168.
169. The allegations in Paragraph 169 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 169.
170. The allegations in Paragraph 170 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 170.
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171. The allegations in Paragraph 171 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 171.
172. The allegations in Paragraph 172 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 172.
173. The allegations in Paragraph 173 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 173.
174. The allegations in Paragraph 174 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 174.
175. The allegations in Paragraph 175 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 175.
176. The allegations in Paragraph 176 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 176.
COUNT VIII
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178. The allegations in Paragraph 178 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 178 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants, they deny the allegations in
Paragraph 178.
179. The allegations in Paragraph 179 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 179.
180. The allegations in Paragraph 180 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 180.
181. The allegations in Paragraph 181 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 181.
182. The allegations in Paragraph 182 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 182.
183. The allegations in Paragraph 183 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 183.
184. The allegations in Paragraph 184 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 184.
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185. The allegations in Paragraph 185 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 185.
186. The allegations in Paragraph 186 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 186.
187. The allegations in Paragraph 187 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 187 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants to the allegations in Paragraph
188. The allegations in Paragraph 188 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 188 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants to the allegations in Paragraph
189. The allegations in Paragraph 189 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 189 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants to the allegations in Paragraph
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190. The allegations in Paragraph 190 attempt to state legal conclusions to which no
response is required from the Alexander Seawright Defendants. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 190.
191. The allegations in Paragraph 191 attempt to state legal conclusions to which no
response is required from the Alexander Seawright Defendants. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 191.
192. The allegations in Paragraph 192 attempt to state legal conclusions to which no
response is required from the Alexander Seawright Defendants. To the extent a response is
required from the Alexander Seawright Defendants, they deny the allegations in Paragraph 192.
193. The allegations in Paragraph 193 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 193 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants to the allegations in Paragraph
194. The allegations in Paragraph 194 are not directed to the Alexander Seawright
Defendants and therefore do not require a response from them. Further, the allegations in
Paragraph 194 attempt to state legal conclusions to which no response is required. To the extent
a response is required from the Alexander Seawright Defendants to the allegations in Paragraph
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The Alexander Seawright Defendants deny the allegations contained in the unnumbered
paragraph on page 44 of the Complaint beginning “WHEREFORE” and in each of its numbered
subparagraphs. The Alexander Seawright Defendants deny that the Receiver is entitled to the
relief requested or to any relief whatsoever from the Alexander Seawright Defendants.
AFFIRMATIVE DEFENSES
The Receiver’s Complaint fails to state a claim against the Alexander Seawright
Defendants for which relief can be granted. Therefore, the Receiver’s claims against the
Procedure 12(b)(6).
The Receiver’s claims against Jon Seawright and Brent Alexander are barred because the
Receiver cannot pierce the limited liability veil of Alexander Seawright, LLC.
The Receiver’s claims against the Alexander Seawright Defendants are barred by the
doctrine of in pari delicto. The Receiver stands in the shoes of Adams and Madison Timber, the
primary wrongdoers who controlled the Ponzi scheme that duped hundreds of people, including
the Alexander Seawright Defendants. Accordingly, the Receiver cannot seek damages or
The Receiver’s claims against the Alexander Seawright Defendants are barred because
the Receiver lacks standing to pursue claims on behalf of anyone other than Adams and Madison
Timber.
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The Receiver’s claims against the Alexander Seawright Defendants are barred because
they did not owe any legal duty to Adams or Madison Timber, and they did not breach any legal
The Receiver’s claims against the Alexander Seawright Defendants are barred by the
good faith value defense. The Alexander Seawright Defendants operated at all times in good
faith and under a belief that they were doing business with a legitimate, legal business and not a
fraudulent scheme. Moreover, the Alexander Seawright Defendants contributed in good faith
significant amounts of time, money, services, and other value for which they were entitled to be
compensated.
The Receiver’s claims against the Alexander Seawright Defendants are barred by the acts
and omissions of Adams and Madison Timber; the acts and omissions of the representatives and
agents of Adams and Madison Timber; and the acts and omissions of others for whom the
Alexander Seawright Defendants are not responsible. The Alexander Seawright Defendants are
not directly or proximately responsible for any damages that Adams and Madison Timber might
have allegedly suffered. The Receiver’s claims against the Alexander Seawright Defendants are
barred because the Alexander Seawright Defendants complied at all times with all applicable
standards of care.
The Receiver’s claims against the Alexander Seawright Defendants are barred by the
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consideration, fraud, illegality, release, payment, accord and satisfaction, assumption of the risk,
unclean hands, and by the failure of Adams and Madison Timber to mitigate their damages.
The Receiver’s claims against the Alexander Seawright Defendants are barred because
the Receiver failed to plead items of special damage and alleged fraud with sufficient
particularity.
The Receiver’s claims against the Alexander Seawright Defendants for punitive damages
are barred: (a) By the Eighth Amendment to the United States Constitution and Section 28 of the
Mississippi Constitution; (b) By the Fifth and Fourteenth Amendments to the United States
Constitution prohibiting substantive and procedural due process violations; as well as by Section
14 of the Mississippi Constitution; (c) By the Fourteenth Amendment to the United States
Constitution guaranteeing equal protection under the laws; (d) By the Fourth, Fifth, Sixth and
Eighth Amendments to the United States Constitution and Sections 14, 17, 26, and 28 of the
Mississippi Constitution to the extent such sanctions are attempted to be imposed without
requiring the burden of proof to be beyond a reasonable doubt; (e) By the provisions of Miss.
Code Ann. § 11-1-65; and (f) By the holdings of United States Supreme Court in BMW v. Gore,
517 U.S. 559 (1996), Cooper Industries, Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424
(2001), and State Farm v. Campbell, 538 U.S. 408 (2003). Moreover, the Receiver’s Complaint
fails to state a claim against the Alexander Seawright Defendants upon which relief can be
granted for punitive damages, the Receiver cannot prove the facts necessary under applicable law
to substantiate an award of punitive damages, and therefore the Alexander Seawright Defendants
affirmatively deny that they are liable to Adams and Madison Timber for punitive damages.
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The Receiver’s claims against the Alexander Seawright Defendants are barred because
the Receiver has not alleged, and the Receiver cannot show, that the Alexander Seawright
Defendants knew of Adams’s fraud or that Madison Timber was a fraudulent scheme.
The Receiver’s claims against the Alexander Seawright Defendants are barred for the
reasons set forth in the Alexander Seawright Defendants’ Motion to Dismiss and Memorandum
in Support of the same, which are being filed simultaneously with this Answer and Affirmative
As discovery has not been completed in this matter, the Alexander Seawright Defendants
affirmatively plead all applicable defenses available under Rules 12(b) and 8(c) of the Federal
Rules of Civil Procedure, including but not limited to: insufficiency of process, insufficiency of
service of process, failure to join a party under Rule 19, arbitration and award, assumption of the
risk, coercion, duress, failure of consideration, fraud, illegality, injury by fellow servant, laches,
license, res judicata, collateral estoppel, business judgment rule, statute of frauds, statute of
limitations, offset, contribution, waiver, indemnity, failure to give full and proper notice, release,
The Alexander Seawright Defendants reserve the right to assert, and hereby give notice
that they intend to rely upon, any other defense that may become available or appear during
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discovery proceedings or otherwise in this action and hereby reserve the right to amend this
AND NOW, having fully answered each and every allegation of the Receiver’s
Complaint filed against them, the Alexander Seawright Defendants respectfully request that this
Court dismiss the Receiver’s claims against them with prejudice, taxing all costs against the
Receiver and awarding the Alexander Seawright Defendants their reasonable attorneys’ fees and
expenses incurred in defending this lawsuit. The Alexander Seawright Defendants also request
such other and further relief as this Court deems just and proper.
Respectfully submitted,
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CERTIFICATE OF SERVICE
I, R. David Kaufman, hereby certify that on March 6, 2019, I caused the foregoing
pleading to be electronically filed with the Clerk of the Court using the CM/ECF system, which
will send notification of such filing to all counsel of record and registered participants.
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Defendants.
COMPLAINT
Alysson Mills, in her capacity as the court-appointed receiver for Arthur Lamar Adams and
Madison Timber Properties, LLC (the “Receiver”), through undersigned counsel, files this
Complaint against Butler Snow LLP; Butler Snow Advisory Services, LLC; Matt Thornton;
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC; Alexander Seawright, LLC; Brent
INTRODUCTION
For more than ten years, Arthur Lamar Adams (“Adams”), through his companies Madison
Timber Company, LLC and Madison Timber Properties, LLC (“Madison Timber”), operated a
Ponzi scheme that defrauded hundreds of investors. Investors believed that Madison Timber used
investors’ money to purchase timber from Mississippi landowners; that Madison Timber sold the
timber to Mississippi lumber mills at a higher price; and that Madison Timber repaid investors
their principal plus interest with the proceeds of those sales. Investors received timber deeds that
purported to secure their investments—but the deeds were fake. There was no timber and no
proceeds from sales of timber. The money used to repay existing investors came solely from new
investors.
Madison Timber had to continuously grow to repay existing and new investors, and
continuously grow it did. In 2011, Madison Timber took in approximately $10 million from
investors. By 2018 that number had grown by a factor of 16. In the one-year period prior to April
19, 2018, the date Adams surrendered to federal authorities and confessed to the Ponzi scheme,
Madison Timber took in approximately $164.5 million. As of April 19, 2018, Madison Timber
had 501 outstanding promissory notes, reflecting debts to investors of more than $85 million.1
Madison Timber would not have grown without Defendants’ encouragement and
assistance. Defendants lent their influence, their professional expertise, and even their clients to
Adams. They made a fraudulent enterprise a fraternity. Defendants contributed to the success of
the Madison Timber Ponzi scheme, and therefore to the debts of the Receivership Estate to
1
The evidence at Adams’s sentencing established that of the $164.5 million that Madison Timber received in its last
year of operation, it paid back approximately $79.5 million, leaving an $85 million difference. The outstanding
principal and interest owed to investors is necessarily higher.
2
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1. The Court has jurisdiction over this action and its parties, and venue is proper in
this Court, pursuant to the Securities Act of 1933, 15 U.S.C. § 77v(a); the Securities & Exchange
2. This action arises in connection with and is ancillary to the civil action already
pending in this Court styled Securities & Exchange Commission v. Arthur Lamar Adams and
Madison Timber Properties, LLC, No. 3:18-cv-252-CWR-FKB. In that civil action, the Securities
& Exchange Commission (“S.E.C.”) alleges that “[b]eginning in approximately 2004,” Adams,
through Madison Timber, “committed securities fraud by operating a Ponzi scheme” in violation
of the Securities Act of 1933 and the Securities & Exchange Act of 1934.2
3. The S.E.C. requested that the Court appoint a receiver for the estates of Adams and
Madison Timber.3 As the Court that appointed the Receiver, this Court has jurisdiction over any
claim brought by the Receiver in the execution of her duties. “[I]t is well-settled that when an
initial suit results in the appointment of the receiver, any suit that the receiver thereafter brings in
the appointment court in order to execute h[er] duties is ancillary to the main suit.” U.S. Small Bus.
Admin. v. Integrated Envtl. Sols., Inc., No. 05-cv-3041, 2006 WL 2336446, at *2 (S.D. Tex. Aug.
10, 2006) (citing Haile v. Henderson Nat’l Bank, 657 F.2d 816, 822 (6th Cir. 1981)). See also 28
U.S.C. § 1692 (“In proceedings in a district court where a receiver is appointed for property, real,
personal, or mixed, situated in different districts, process may issue and be executed in any such
4. Consistent with that precedent, Chief U.S. District Judge Daniel P. Jordan III has
ordered that all “cases filed by the duly appointed Receiver . . . which . . . arise out of or relate to
2
Doc. 3, Securities & Exchange Commission vs. Adams, et al., No. 3:18-cv-00252 (S.D. Miss).
3
Docs. 11, 21, Securities & Exchange Commission vs. Adams, et al., No. 3:18-cv-00252 (S.D. Miss).
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[Securities & Exchange Commission v. Arthur Lamar Adams and Madison Timber Properties,
LLC, No. 3:18-cv-252-CWR-FKB] shall be directly assigned by the Clerk of Court to U.S. District
Judge Carlton W. Reeves and U.S. Magistrate Judge F. Keith Ball.”4 In compliance with Chief
Judge Jordan’s order, the Receiver shall separately file, contemporaneously with this complaint, a
notice of relatedness.
PARTIES
5. Plaintiff Alysson Mills is the Court-appointed Receiver for the estates of Adams and
Madison Timber. The Court’s order of appointment vests in her the power to, among other things:
The Receiver brings this civil action in her capacity as Receiver and pursuant to the powers vested
in her by the Court’s orders and applicable law. The Receiver has standing to pursue, inter alia,
claims against third parties whose actions contributed to the success of the Madison Timber Ponzi
6. Defendant Butler Snow LLP (with Butler Snow Advisory Services, LLC, “Butler
7. Defendant Butler Snow Advisory Services, LLC (with Butler Snow LLP, “Butler
4
Doc. 45, Securities & Exchange Commission vs. Adams, et al., No. 3:18-cv-00252 (S.D. Miss).
5
Doc. 33, Securities & Exchange Commission vs. Adams, et al., No. 3:18-cv-00252 (S.D. Miss). By order dated
August 22, 2018, the Court eliminated the requirement that the Receiver obtain “prior approval of this Court upon ex
parte request” before bringing any legal action. Doc. 38, Securities & Exchange Commission vs. Adams, et al., No.
3:18-cv-00252 (S.D. Miss).
4
Case 3:18-cv-00866-CWR-FKB Document 1 Filed 12/19/18 Page 5 of 45
“Senior Public Policy Advisor” for Baker Donelson. With Jon Seawright, he owns Alexander
Seawright, LLC.
shareholder of Baker Donelson and a member of its national governing Board of Directors. With
13. For more than ten years, Adams, through Madison Timber, operated a Ponzi
scheme that purported to purchase timber from Mississippi landowners and resell it to Mississippi
14. Investors in Madison Timber delivered to Madison Timber large sums of money,
typically in excess of $100,000 dollars, in reliance on the promise that Madison Timber would
repay them their principal plus interest of not less than 12% per annum, and sometimes as much as
20% per annum. The promised interest invariably far exceeded the interest any investor might
15. Investors believed that Madison Timber would use their money to acquire timber
deeds and cutting agreements from Mississippi landowners; that Madison Timber would then sell
the timber to Mississippi lumber mills at a higher price; and that with the proceeds of those sales
Madison Timber would repay investors their principal and promised interest.
5
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16. In exchange for their investments, investors in the Madison Timber Ponzi scheme
received a promissory note in the amount of their investment, payable in twelve monthly
installments together with the promised interest; twelve pre-dated checks, each in the amount of
the installment due under the promissory note; a timber deed and cutting agreement by which a
named landowner purported to grant to Madison Timber the rights to harvest timber on the land
described in the deed; and a timber deed and cutting agreement by which Madison Timber
17. In fact, the timber deeds and cutting agreements were fake. Madison Timber had
no rights to harvest timber and no timber to cut and sell. Because Madison Timber had no
revenues whatsoever, investors were being repaid with new investors’ money.
18. Each month, Madison Timber required more and more new investors to repay
existing investors. Like any Ponzi scheme, Madison Timber had to continuously grow. To grow
Madison Timber, Adams relied on recruiters, including Defendants, to attract new investors.
19. In 2011, Madison Timber took in approximately $10 million from investors. By
20. In April 19, 2018, on the heels of investigations of him by the F.B.I. and the U.S.
Attorney’s Office for the Southern District of Mississippi, Adams turned himself in. In the
one-year period prior to April 19, 2018, Madison Timber took in approximately $164.5 million.
As of April 19, 2018, Madison Timber had 501 outstanding promissory notes, reflecting debts to
6
The evidence at Adams’s sentencing established that of the $164.5 million that Madison Timber received in its last
year of operation, it paid back approximately $79.5 million, leaving an $85 million difference. The outstanding
principal and interest owed to investors is necessarily higher.
6
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21. Adams pleaded guilty to the federal crime of wire fraud and “admit[ted] to all of the
conduct of the entire scheme and artifice to defraud.”7 On October 30, 2018, he was sentenced to
22. The S.E.C. separately charged Adams with violations of the Securities Act of 1933
and Securities & Exchange Act of 1934, alleging in its complaint that “[b]eginning in
approximately 2004,” Adams, through Madison Timber, “committed securities fraud by operating
a Ponzi scheme.”9
23. The promissory notes sold by Madison Timber to investors were “securities,” as
that term is defined under 15 U.S.C.A. §78(c)(A)(10) and Miss. Code Ann. § 75-71-102(28).
24. As alleged in the complaint in the underlying action SEC v. Arthur Lamar Adams et
al., No. 3:18-cv-252 (S.D. Miss.), and in the bill of information filed against Adams in U.S. v.
Arthur Lamar Adams, No. 3:18-c-188 (S.D. Miss.), Adams, Madison Timber, and their affiliates,
misstatements and omissions; employed a device, scheme, or artifice to defraud; and engaged in
acts, practices, or courses of business that operated or would operate as a fraud or deceit, all in
violation of Section 17(a) of the Securities Act of 1933, 15 U.S.C. § 77q(A); Section 10(b) of the
Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5,
thereunder; as well as the Mississippi Securities Act, Miss. Code Ann. § 75-71-501.
25. The sales furthermore violated the Securities Act of 1933 and the Mississippi
Securities Act because there were no registration statements for the promissory notes, see Section
5 of the Securities Act of 1933, 15 U.S.C § 77e, and Miss. Code Ann. § 75-71-301; and the
7
Doc. 11, United States v. Adams, No. 3:18-cr-00088 (S.D. Miss).
8
Doc. 21, United States v. Adams, No. 3:18-cr-00088 (S.D. Miss).
9
Doc. 3, Securities & Exchange Commission vs. Adams, et al., No. 3:18-cv-00252 (S.D. Miss).
7
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promissory notes were not exempt from registration, see Section 5 of the Securities Act of 1933,
BUTLER SNOW
26. Adams and Madison Timber’s relationship with Butler Snow began in 2009 and
27. Adams had made a name for himself as someone who understood the timber
industry and made money brokering timber sales. For many years Adams brokered legitimate
timber sales—but by 2009 he had figured out that he could fake things, and he saw an opportunity
to go big.
28. Adams previously had done business with Pinnacle Trust, a financial services
company in Madison, Mississippi. He and Pinnacle Trust discussed ways to maximize Adams’s
business. They decided to form an investment fund and engaged Butler Snow law firm to draft the
29. The investment fund was named Madison Timber Fund, LLC. Its aim would be to
raise $10,000,000 by selling 100 units at $100,000 each. Lawyers at Butler Snow spent months
30. The resulting PPM, drafted by Butler Snow, described the fund as follows:
8
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31. The PPM identified Adams and Madison Timber Company, Inc. as the fund’s
“Manager” and advised that the fund’s “Business Strategy” depended on the Manager’s “network
of contacts”:
[T]he Fund purchases the standing timber directly from the landowner and
then sells or arranges for the sale of the tree harvest. The purchase is made by the
execution of a “Timber Deed,” which is consequently filed in the real estate records
of the county where the land is located. The Timber Deed commonly allows for a
24 to 36 month period to actually harvest the timber. . . .
***
Using its network of contacts cultivated over 20 years, the Manager
regularly receives opportunities to purchase land tracts with timber. Typically, the
Manager has the opportunity to purchase before these tracts go on the “market.”
This gives the Manager a first-look pricing advantage. . . .
***
The Manager also has a number of established relationships with various
lumber mills, which includes knowledge of the mills’ preferred specialty type of
lumber needs from hardwoods to pine. These mills also offer the Manager referrals
for timber purchases. The Manager’s Timber Deeds are designed to protect the
Fund from liability for cleanup, property damage, road repair and other harvesting
challenges.
***
[T]he Manager has developed a timber purchase format that allows the
Manager to control the cyclical aspects of the business. By securing various
term-length contracts, the Manager is able to even out its supplies of timber for its
mill purchasers. The Manager intentionally purchases short-term contracts (3 to 6
month harvest), mixed with mid-term (6 to 12 months) and longer-term tracts (24 to
36 months) to enable the Manager to have a steady three-year supply of harvestable
inventory.
In addition, the Manager tracks the needs of its regular mill customers to
better supply the type of product they need.
***
The Manager believes that its competitive advantage is its flexibility in
choosing both wood sources and wood processing mills. By not having an in-house
mill, the Manager is able to obtain raw timber from various locations and match it
to buyers and mills that are geographically compatible with the mill location. . . .
The Manager’s pricing philosophy is to offer its mills a highly competitive
product. The Manager can offer lower pricing in exchange for a contributing
stream of referrals from its mill customers. The Manager is able to maintain a
highly competitive pricing strategy because it operates with low overhead costs,
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outsources its harvesting operations with a network of loggers and owns very little
equipment.
32. The PPM identified several “Timber Investment Risks,” including “Timber Price
The Fund’s revenues will be affected by the cyclical nature of the forest
products industry. Prices for timber can experience significant variation and have
been historically volatile. The Fund will have little control over the timing and
extent of price changes for timber products. The demand for timber and wood
products is affected primarily by the level of new/residential construction activity,
the supply of manufactured timber products, including imported timber products,
and other uses of timber products. These activities are subject to variation because
of changes in economic conditions, interest and currency rates, population growth
and changing demographics and seasonal weather cycles and storm activity.
33. The PPM also identified several “General Investment Risks,” one of which was
“Reliance on the Manager.” The PPM explained that the fund’s success is “substantially
dependent on the Manager”—therefore the fund might fail if Adams quits or dies. The PPM
disclosed the fund “does not currently own key-person insurance on the life of Lamar Adams” but
34. Ultimately the fund itself did not attract any investors, and the PPM was shelved for
35. Adams, however, continued to broker purported timber sales and make money
entering “joint ventures” with individual investors to purchase purported stand-alone timber tracts
that he called “standing tracts.” In 2011, Madison Timber took in approximately $10 million from
investors.
36. By this time the Madison Timber Ponzi scheme had been perfected. The consistent,
uniform returns of 12% to 14% attracted dozens of investors with between $100,000 and $200,000
to invest—but like any Ponzi scheme, each month Madison Timber required more and more new
10
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investors to repay the old ones. Adams would have to continuously grow Madison Timber to keep
up.
37. To continuously grow Madison Timber, Adams turned again to Butler Snow.
38. Butler Snow markets itself to clients as “the only resource you need.” To provide
business services to its law firm’s clients, in 2011 Butler Snow launched Butler Snow Advisory
Services, “a wholly owned subsidiary that provides non-legal business advice.” Butler Snow’s
website boasts that Butler Snow Advisory provides “executive-level strategic guidance” to closely
held businesses:
Closely held businesses face many of the same challenges as large, public
companies without the advantage of strategic advisors. This can make it more
difficult to those business owners to make informed decisions regarding their
business strategy.
Butler Snow Advisory specializes in providing executive-level strategic guidance
to private, family owned and closely held companies. We’ve built a diverse,
experienced team of professionals that are uniquely positioned to leverage industry
knowledge and real-world experience to work for our clients from day one.
Members of the BSA team are dedicated to understanding the goals of your
company and crafting actionable strategies for success, all while identifying
opportunities and mitigating risks.
39. Butler Snow’s website boasts that Butler Snow Advisory “utilize[s] resources from
In addition to our team’s expertise, as a part of the larger Butler Snow family, BSA
has the advantage of access to resources and networks that put our company ahead
of the competition. Our team approach allows us to utilize resources from across
the Butler Snow network to match your business needs with the expertise required.
As a result, our clients benefit from strategic counsel, innovative solutions and
efficient execution – all from an extensive, reputable network of professionals.
A few of the Butler Snow advantages include access to a legal network that boasts:
x 325+ attorneys
x 24 offices across the United States and in Asia and the United Kingdom
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40. Under the leadership of Matt Thornton, its President and CEO, Butler Snow
Advisory sought to “fast-track” its own business by acquiring “top-level talent.” In April 2012,
Thornton announced that Mike Billings would join the team as a “strategic advisor”:
41. Butler Snow Advisory was young, and Billings was brand new, when in May 2012
the opportunity to “strategically advise” Madison Timber arose. Adams wanted assistance with a
“$30-50 million capital raise.” Thornton alerted Don Cannada and Barry Cannada, a senior
partner and the Vice Chair of Butler Snow, respectively, to the prospects of this new business.
42. A series of meetings followed at Butler Snow’s Ridgeland office. After, Thornton
told Adams “I have thoroughly enjoyed getting to know you and believe we could be a piece of the
puzzle in terms of strategic business growth and the associated financing/capital strategies to
accompany growth.” Thornton proposed that Adams engage Butler Snow Advisory to provide
advisory services” and, separately, engage Butler Snow law firm to update the preexisting PPM.
43. Internally Thornton and Billings discussed how Butler Snow Advisory would be
compensated. They proposed a monthly fee of $3,500 “to assist in strategic business
development” plus a “success fee” for “individual projects.” If Thornton and Billings succeeded
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in establishing a fund, they proposed to receive half of Madison Timber’s management fee plus
33% (later reduced to 25%) of Madison Timber’s carried interest. At the time, Billings wrote
As Lamar [Adams] has a seemingly insatiable appetite for cash, all the way up to a
couple hundred $ Million, in theory we would be engage[d] and be paid the $3,500
retainer until he says “uncle” and does not have the capacity to do any more
volume.
Thornton agreed that they should “lock that down for at least a year.”
44. In August 2012, at Thornton’s urging, Adams formally engaged Butler Snow
Advisory to “focus on strategic business development” and, separately, formally engaged Butler
The pitch
45. While lawyers at Butler Snow updated the preexisting PPM, Thornton and Billings
began pitching Madison Timber to high net-worth clients. During this time they often copied
46. They had early success with a high net-worth client in New Orleans. The investor
was not interested in investing in a fund, but he was willing to entertain a “joint venture” in a
“standing tract.” Billings and Adams made a presentation to the investor that falsely represented
that Madison Timber had “timber sales” of $9,576,252 in 2009; $8,087,072 in 2010; and
$10,034,024 in 2011. The impressed investor wired Madison Timber $450,000, and Madison
Timber delivered to Butler Snow an $8,000 “commission check.” One month later, after the same
10
The “BSA – Standard Terms and Conditions” that accompanied the August 8, 2012 engagement letter for the
“Engagement of Butler Snow Advisory” includes an arbitration clause, but the letter itself, signed by Lamar Adams
for Madison Timber and Martin Willoughby for Butler Snow Advisory, expressly states that “The state and federal
courts in Mississippi shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this
Engagement Contract and any matter arising from it. The parties hereto irrevocably waive any right they may have to
object to any action being brought in that Court, to claim that the action has been brought to an inconvenient forum or
to claim that that Court does not have jurisdiction.”
13
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investor wired Madison Timber another $1,050,000, Madison Timber delivered to Butler Snow a
47. Buoyed by this early success, Billings introduced Adams to two “billion-dollar”
“family offices” in Texas. Thornton gushed at this “tremendous ‘start.’” On the same day, eager
to please Adams, and worried his counterparts at Butler Snow law firm were not meeting Adams’s
needs, Thornton complained to Barry Cannada that an associate in Butler Snow’s Memphis office
had failed to return Adams’s call and caused Adams to submit a bid for a tract of land “without
legal review.” Thornton lamented that “we continue to have the same scenario occur
over-and-over again with respect to Advisory asking the law firm to assist in a timely, efficient &
48. While lawyers at Butler Snow continued to work on the updated PPM, Thornton
and Billings looked for other investors who, like the high net-worth client in New Orleans, might
prefer to invest in a “standing tract” only. They were aware that Madison Timber offered a
consistent, uniform return of 12% to 14%. They made a list of thirty-plus mostly local individuals
and families to target as “Small Investor Madison Timber Prospects.” Many of the individuals on
49. In February 2013 lawyers at Butler Snow finalized the updated PPM. The fund
would now aim to raise up to $100,000,000 by selling 1,000 units at $100,000 each. Notably, the
fund’s “Business Strategy” and “Timber Investment Risks”—reproduced above, both of which
“reread from a non-legal language standpoint and all business, market and organizational aspects
remain in-tact.”
14
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50. With the PPM in hand, Thornton made pitches to bigger, institutional clients. He
told them that “Madison Timber (Lamar Adams, President) is a very good client of ours” that “has
been vetted by several $1.5 billion family office(s) in Texas, encompassing a 75+ day due
diligence period [and] as you would imagine, Lamar passed with flying colors!” In fact, the two
51. One institutional client to whom Thornton pitched Madison Timber candidly
remarked that “First blush says there has been some inventory build over the last four years.” But
instead of addressing the question raised by the remark, Thornton continued his pitch: “‘Inventory
Build-Up’ . . . great question and one major topic we would like to discuss ‘face-to-face’ . . . we
Timber’s inability to provide requested information. He told one potential investor “we have had
entities sign NDA(s) prior to providing financial information . . . we certainly did this with the two
multi-billion $ family office entities in Dallas.” He told another potential investor, “As we
mills, financing structure and the like, we certainly appreciate very much your team’s treating
today’s discussion and information provided in the STRICTLY CONFIDENTIAL category under
the NDA umbrella.” These comments had the effect of impressing upon the potential investor that
53. Thornton told yet another potential investor who asked about mill contracts:
“Lamar [Adams] has an extremely stringent NDA with his mill partners [and] due to this
15
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extremely stringent NDA, we have not shared any mill names/profiles with any potential investors
to date.” Of course, this representation was false because Adams did not have any “mill partners”
therefore there was no “extremely stringent NDA” and no “mill names/profiles” to share. But
Additionally, as the investor has a contract with Madison Timber (and NOT with
the mill directly) via promissory note issued from Madison Timber that has
assigned timber deed worth twice as much as their invested dollars. So, investors
would be looking to Madison Timber for payment (not the mill), and in the event of
a default by Lamar, the investors simply file the deed / resell the timber.
Thornton thus assured the potential investor that he should not worry about the mills, because his
contract would be with Madison Timber—a company backed by Butler Snow’s reputation.
54. Ultimately, no investor chose to invest in the fund for which the PPM had been
updated and through which Butler Snow and Adams had hoped to raise $100,000,000. But many
individuals and institutional clients to whom Thornton and Billings made a pitch did invest in
purported “standing tracts” only, and for each of these investments, Madison Timber delivered to
55. For all of these transactions, Thornton, Billings, and Butler Snow acted as
unlicensed brokers, in violation of federal and state law. A broker is “any person engaged in the
business of effecting transactions in securities for the account of others.” See Section 3(4) of the
Securities Exchange Act of 1934, 15 U.S.C. § 78c. The S.E.C.’s public website states that the
recent search using the Financial Industry Regulatory Authority’s public online BrokerCheck
confirms that neither Thornton, Billings, nor Butler Snow have ever registered with the S.E.C.
11
Guide to Broker-Dealer Registration, U.S. SECURITIES & EXCHANGE COMMISSION, https://www.sec.gov/reports
pubs/investor-publications/divisionsmarketregbdguidehtm.html.
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56. Butler Snow knew or should have known what it was doing was unlawful. Among
the notes in Butler Snow’s Madison Timber files is this comment from Don Cannada in 2009:
“Very broad definition of what a broker is . . . Includes one who for a commission procures a
purchaser or prospect etc. See 73-35-31 for penalties. Says you can’t pay an unlicensed broker,
57. Investors might fairly question what Butler Snow did for them to earn their
commissions. The answer is not much. While they extolled Madison Timber’s “strategic
partnerships and forward-thinking supply/demand philosophy,” neither Thornton nor Billings, nor
anyone at Butler Snow, conducted an even cursory inspection of Madison Timber’s operations. If
they had, they would have been forced to face the reality that Madison Timber was nothing more
58. Instead, Butler Snow aided and abetted Madison Timber’s growth, lending Adams
and Madison Timber their influence, professional expertise, and clients. Butler Snow’s
imprimatur was powerful, and they knew it. They even agreed to serve as a “referral” for other
firms’ clients. In July 2013 “Baker Donelson” sought “a few referrals” to validate Madison
Timber. Thornton responded within minutes: “No problem by me – thanks!” Billings exclaimed:
“You are more than welcome to include me as a reference for anything at any time . . . highest
marks possible!!”
Red flags
59. Not only did Thornton, Billings, and Butler Snow broker Madison Timber
investments without a license and fail to independently confirm that the timber and rights in
question were real, they also recklessly ignored numerous red flags.
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60. Indeed, the timber deeds and cutting agreements between landowners and Madison
Timber were fake. The landowners’ signatures, forged by Adams, often looked the same. A call to
any one of the purported landowners, or a simple check of the title for any one of the purported
tracts of land, would have confirmed the truth. Neither Thornton nor Billings, nor anyone at Butler
61. Madison Timber also had no real contracts with any mills. A call to any one of the
mills for which Madison Timber purported to have contracts would have confirmed the truth.
Neither Thornton nor Billings, nor anyone at Butler Snow, ever called a mill. Worse, having
conducted no due diligence themselves, they falsely represented to potential investors that they
could not disclose Madison Timber’s “mill partners” due to an “extremely stringent NDA.”
62. Adams required that an investor agree that he or she would not record the deed by
which Madison Timber purported to grant its own rights to the investor unless and until Madison
Timber failed to make a payment due under the promissory note. Incredibly, notwithstanding the
suspicious “agreement not to record,” neither Thornton nor Billings, nor anyone at Butler Snow,
63. The “profit” that Adams promised was 300% to 400% better than that payable by
any other fully collateralized investment and was uniform and consistent. This fact should have
been a glaring warning sign standing alone, particularly for individuals such as Thornton and
Billings who touted decades of business experience. It is all the more incredible that neither
Thornton nor Billings, nor anyone at Butler Snow, ever questioned it, given that the PPM drafted
by Butler Snow, which Thornton professed to have read, expressly disclosed the risk of “Timber
Price Volatility.”
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Another engagement
64. By December 2013 Adams had grown tired of paying Butler Snow Advisory the
monthly fee of $3,500 plus travel expenses. Separately Billings saw potential to make more money
recruiting new investors to Madison Timber fulltime. Adams and Billings informed Thornton that
they would “proceed on a direct basis,” meaning Billings would leave Butler Snow Advisory to
work for Adams fulltime, effective January 1, 2014. Thornton told Adams he had “thoroughly
enjoyed” Madison Timber” and to “please let me know if I or BSAS can ever be of service again.”
65. Butler Snow, however, did not cease servicing Adams. In 2015 Adams engaged
Butler Snow to assist Oxford Springs, LLC, of which he effectively was the managing member,
with “regulatory permitting and compliance matters.” Butler Snow thus continued to lend its
influence to Adams, this time with government bodies. Indeed, Butler Snow was still sending
66. Notwithstanding its attorney-client relationships with Adams and Madison Timber,
not to mention its own role in perpetuating the Ponzi scheme, after Adams turned himself in Butler
Snow purported to represent investors in their demands of Madison Timber. These investors were
led to believe that Butler Snow could and would represent their best interests. At the same time,
however, Butler Snow also purported to represent Billings—whose interests clearly were adverse
to investors.
67. On May 11, 2018, Butler Snow sent Adams a letter titled “Disengagement”
advising that “recent events” made it “appropriate for us to withdraw from the representation.”
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BAKER DONELSON
68. Adams and Madison Timber’s relationship with Baker Donelson began in 2011 and
A joint venture
69. In 2011, Brent Alexander and Jon Seawright, a lawyer and lobbyist at the Baker
Donelson law firm in Jackson, were looking to start a new investment fund.
70. Alexander and Seawright made acquaintances with Adams and a partnership
quickly formed. Alexander and Seawright would create an LLC that would pool other people’s
money to invest in Madison Timber, and Adams would share the returns with Alexander and
I feel pretty good about this . . . Please explain to me why this is not a virtually risk
free deal. There is no pricing risk – everything is tied down on the front end. The
only risk I see is (i) mill defaults, but you still own the land, (ii) Lamar is a fraud,
but no evidence of that, or (iii) such a fundamental collapse of the timber industry
that mill defaults and uncut timber is less than purchase price, but investor is
oversecured almost 2:1, so there would have to be catastrophic collapse. Jds
71. Alexander and Seawright saw a big opportunity in Madison Timber, but to raise
“significant capital” for Adams, they needed to do some “smaller investments to prove out the
income earning potential.” They pitched the first investment to a client of Baker Donelson.
Seawright told the client that Alexander and Seawright would be responsible for everything:
Seawright told the client that “[r]unning funds through us or BD [Baker Donelson] escrow is not a
problem,” and all “legal and other admin expenses” would “come out of our share.”
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72. Alexander and Seawright’s “share” would include a portion of each investment’s
return, what Adams called a “birddog fee.” Adams told Alexander and Seawright that he could
ensure a 14% “profit” with a 2% “birddog fee” built-in, but Alexander and Seawright could decide
73. Seawright proposed instead that each investment’s promissory note bear 13%
interest, of which investors would receive 10% and Alexander and Seawright would keep 3%.
a result, Alexander and Seawright’s “share” of each investment’s return included the 3% they
disclosed to investors, plus an extra undisclosed 3% that Adams paid them directly.
74. Seawright drafted subscription agreements and accompanying documents for the
sales of units in what was then called Alewright Investments, LLC, later renamed Alexander
Seawright Timber Fund I, LLC. From 2011 until April 2018, Alexander and Seawright used their
fund to invest other people’s money in Madison Timber and split the “profits” with Adams.
The pitch
75. Throughout this time period Alexander and Seawright pitched their fund to
potential investors, including Baker Donelson clients, as an exclusive “friends and family” fund.
Alexander often used the phrase “simple, elegant and profitable” to describe the fund. He told
investors that “we are in it”— a lie; neither Alexander nor Seawright invested their own money in
the fund—“our neighbors, lots of physicians, many of the attorneys at Baker Donelson and other
76. Alexander was a persistent salesman. His pitch varied slightly depending on his
audience—for some investors the minimum was $25,000; for others, $50,000—but he always
promised a “rock stable” and “oversecured” 10% return, in a fund “safe enough for friends and
21
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family.” If an investor said he could invest “either 25k or 30,” Alexander responded “$50k would
be better for you . . . The more you get in circulation, the more you can compound each quarter.”
investors the fund “sells out quick” and “is moving fast.” To one such person he texted: “[You]
need to invest in the timber fund. We have figured the math and can get you 14 percent fully
secured if you reinvest your principle [sic] and interest every quarter. It compounds like you
would not believe,” followed by, “Are you going to invest in this timber round? You need to put
your money to work. No pressure at all, just smart advice in this climate.”
78. Alexander and Seawright specifically targeted individuals who had recently sold
assets because they knew those individuals had money to invest. Such individuals included clients
79. Investors reasonably believed that their investment in Madison Timber, through
Alexander Seawright Timber Fund I, LLC, was backed and promoted by, and had been vetted by,
Baker Donelson.
80. Alexander and Seawright relied heavily on their affiliation with Baker Donelson in
securing investments. Alexander and Seawright described the fund to potential investors who were
clients of Baker Donelson as a fund for preferred Baker Donelson clients and partners.
81. Alexander and Seawright referred potential investors to Baker Donelson’s website,
which shows that Jon Seawright is not merely a shareholder in Baker Donelson’s Jackson office
but an elected member of the firm’s national governing Board of Directors. Baker Donelson is a
law firm, not an investment advisory firm, but its website touts Jon Seawright’s advanced degree
in taxation and “extensive experience” in business development and capital formation. Its website
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presents Brent Alexander as a “Senior Public Policy Advisor” who is qualified by regulators to
serve as a principal in, or advisor to, hedge funds and who has a “rapidly growing” practice in
82. Baker Donelson knew Alexander and Seawright relied on their affiliation with
83. Alexander and Seawright used Baker Donelson’s Jackson office’s address for
official business. They and Adams held “closings” at Baker Donelson’s Jackson office. They used
84. Alexander and Seawright enlisted their colleagues at Baker Donelson, including in
offices in other states, to introduce them to potential investors. They asked their colleagues to
“[h]elp us get a meeting if you’re able,” adding “[i]f you can get us in the door, it would mean a
Easy money
85. Investors were led to believe that they could rely on Alexander and Seawright to
evaluate each investment using their professional expertise and judgment, which was backed by
evaluation of the investments they pushed on unwitting persons, including Baker Donelson’s
clients. At the beginning of their partnership with Adams, Seawright asked questions such as
“Who bears the loss with respect to the destruction of timber? For example, if there is fire, beetles,
hurricane, whatever, who is on the hook? Is it an insured risk?” But he accepted Adams’s answers
to his questions without follow-up. Adams told Seawright that Madison Timber had “umbrella
[insurance] on all tracts” (he added, “Expensive, don’t need it but have it”). Seawright never asked
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86. Investors were led to believe that Alexander and Seawright personally inspected
the timber underlying each investment. Of course they did not. Alexander and Seawright gave
investors “Equity Term Sheets” that described each upcoming investment opportunity. An
“Equity Term Sheet” dated March 5, 2017, for instance, explained that for the “minimum
investment” of $25,000, an investor would share in the “cutting rights on tracts of land in various
counties (the ‘Timber Rights’).” Like all of Alexander and Seawright’s “Equity Term Sheets,” the
“Equity Term Sheet” dated March 5, 2017, expressly represented that Alexander and Seawright
Company [Alexander and Seawright] will inspect the property related to the
Timber Rights, must receive the original, executed Note and timber deed and will
inspect the executed agreement(s) with the timber mill(s).
Alexander and Seawright could not and did not inspect the property in question—nor “the
executed agreement(s) with the timber mill(s)”—because such did not exist. These representations
87. Alexander and Seawright even devised a “Timber Rights Investment Closing
Checklist” that included among its list of things to do “Review Mill Contract” and “Review Land
re Timber.” Alexander and Seawright could not and did not review any “Mill Contract” or “Land
timber tract only once or twice, at the very inception of their partnership with Adams. The
“inspection” was hardly professional. Email traffic indicates “inspection” meant “[grab] a cooler
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89. Between 2011 and April 2018, Alexander and Seawright withdrew over $980,000
from the Alexander Seawright Timber Fund I, representing their “shares” of investors’ returns. In
addition Adams separately paid them over $600,000 representing undisclosed “birddog fees.”
90. On information and belief, Adams also sometimes paid Alexander and Seawright
bonuses, including Christmas bonuses in cash that he had delivered to Alexander and Seawright at
91. For all this time, Alexander and Seawright acted as unlicensed brokers, in violation
of federal and state law. A broker is “any person engaged in the business of effecting transactions
in securities for the account of others.” See Section 3(4) of the Securities Exchange Act of 1934, 15
U.S.C. § 78c. The S.E.C.’s public website states that the receipt of transaction-related
commissions is a key indicator that a broker must be registered.12 A recent search using the
Financial Industry Regulatory Authority’s public online BrokerCheck confirms that neither
92. Investors might fairly question what Alexander and Seawright did to investigate the
investment. The reality is not much. In October 2017, Alexander bragged to a potential investor
that “to our surprise, we have now financed the purchase of about $60 million in timber . . . It has
worked so well that we simply send out an email on the 15th of each month and some hours later
93. Neither Alexander nor Seawright, nor anyone at Baker Donelson, conducted an
even cursory inspection of Madison Timber’s operations. If they had, they would have realized
what should have been obvious—that the money was too good to be true because Madison Timber
12
Guide to Broker-Dealer Registration, U.S. SECURITIES & EXCHANGE COMMISSION https://www.sec.gov/reports
pubs/investor-publications/divisionsmarketregbdguidehtm.html
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was nothing more than a Ponzi scheme. Instead, they aided and abetted Madison Timber’s growth,
providing Adams and Madison Timber their influence and their clients.
Red flags
94. Not only did Alexander and Seawright and Baker Donelson fail to independently
confirm that the timber and rights in question were real, they recklessly ignored numerous red
flags.
95. The timber deeds and cutting agreements between landowners and Madison
Timber were fake. The landowners’ signatures, forged by Adams, often looked the same. A call to
any one of the hundreds of purported landowners, or a simple check of the title for any one of the
hundreds of purported tracts of land, would have confirmed the truth. Neither Alexander nor
Seawright, nor anyone at Baker Donelson, ever called a landowner or checked a tract’s title.
96. Madison Timber also had no real contracts with any mills. A call to any one of the
mills for which Madison Timber purported to have contracts would have confirmed the truth.
Neither Alexander nor Seawright, nor anyone at Baker Donelson, ever called a mill.
97. Adams required that an investor agree that he or she would not record the deed by
which Madison Timber purported to grant its own rights to the investor unless and until Madison
Timber failed to make a payment due under the promissory note. Seawright quipped that “I have
been clear that I am no timber expert”—but he is unquestionably a lawyer to whom his clients and
investors looked to evaluate the investment’s risks. Incredibly, notwithstanding the suspicious
“agreement not to record,” neither Alexander nor Seawright, nor anyone at Baker Donelson,
98. The “profit” that Adams promised was 300% to 400% better than that payable by
any other fully collateralized investment and was uniform and consistent. This fact should have
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been a glaring warning sign but Alexander, who Baker Donelson presents as a qualified and
experienced advisor, turned this warning sign into a selling point. Alexander bragged about his
“six year perfect track record” of consistent uniform returns under his “beautiful, albeit simple,
financial model.”
99. Adams purported to have identified mills with an insatiable demand for timber at
uniform prices. The market price for timber is readily available from multiple sources, and any one
of those sources would have confirmed that the market price for timber actually rises and falls,
sometimes dramatically, over short periods of time. Neither Alexander nor Seawright, nor anyone
at Baker Donelson, ever evaluated the investment in light of such information. To the contrary,
Seawright gloated that “[Adams] has stated that volume is not problem and indicates there are
100. In 2014 Adams decided that he did not want to have to manage Madison Timber
during the month of December. He told his “bird dogs,” including Alexander and Seawright, that
Madison Timber would not issue checks in December going forward; what had been a 12-month
payoff would become a 13-month payoff, skipping the last month of the year. Seawright blindly
passed on to investors the dubious explanation that mills shut down in December for OSHA
inspections:
In December 2014, we were notified that the mills intended to shut down
operations in December to allow a break for the holidays and complete OSHA
required inspections. With their operations down, they requested that no payment
be made in December. The broker we worked with agreed to this, but on the
condition that the interest rate is increased by 1%, which they agreed to. This
increase is passed on to investors, so now all rounds pay out in 12 payments over 13
months, with a total interest of 13%. The result is the annual effective interest rate
increased to 10.15%, so while the payments are stretched out by a month, the
interest rate is better.
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Neither Alexander nor Seawright, nor anyone at Baker Donelson, did anything to verify this false
information.
101. In 2015 Alexander and Seawright had an idea. They had been making monthly
investments with Adams of between $100,000 and $500,000 using other people’s money.
Alexander proposed that “[we] systemize this a little and take it to the next level.” Over the next
two years Alexander and Seawright would brainstorm a new model that could make Alexander
and Seawright rich. Alexander estimated that if a fund put $1 million in Madison Timber and then
reinvested the principal and interest each month for ten years it would make $17 to $18 million.
102. The idea consumed Alexander. He texted Seawright, “Woke at [sic] at 2 thinking
about the structure of the timber pool. We pull this off, we get rich.” Using Baker Donelson’s
conference rooms and resources, he hosted meetings with and made presentations to accountants,
investors, and advisors to push his idea and debate the merits of a five-year versus ten-year model.
He reported the models gave people “much more level headed” than he “an orgasm as to its
potential.” Fearing that “now that they have seen up our skirts” people will “try to cut us out,” he
103. Alexander and Seawright gave their new model a new company and named it
Alexander Seawright Timber Fund II, LLC. They made a pitchbook for prospective investors. As
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104. The 15-page pitchbook extolled the “elegant, simple and highly profitable” model
by which Alexander and Seawright had already “invest[ed] more than $20 million to facilitate the
purchase of over $50 million in timber.” The pitchbook falsely represented that an investment
would be “over-secured” and the timber would be “insured.” The pitchbook called the opportunity
to compound both principal and interest in the new fund “a nice trick indeed”:
105. The feedback was not all good. One prospective investor observed that Alexander
and Seawright could count “the respect we have for Baker” “to the good”—but the investment
presented at least ten concrete concerns, the first of which he called the “John Grisham novel
problem”:
To the concerning . . .
1. The structure seems very difficult – bordering on uninvestable in its current form
– for institutional managers, which is to say those managing money for others. Were
this to go bad in any way, there’s a beginning to a John Grisham novel problem here:
two lawyers drove up from Jackson, MS, to Memphis, TN, to pitch yield hungry
investors on a double digit, nearly riskless opportunity. The opportunity was
unaudited, and the lawyers did the tax work. . . .
But Alexander brushed off the criticism. (“I’m not sure he is a particularly artful or cogent writer,”
he told Seawright.)
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106. The same prospective investor questioned why Alexander and Seawright
themselves were not invested in their own fund. “Your interest in the incentive is noteworthy, but,
it is derived from sweat, not money you stand to lose,” he wrote. Alexander replied, “We do have
We do have skin in the game, at least in the way we characterize it, in that we have
fronted the expenses for the design, implementation, operation and management of
Alexander Timber Fund I, with little direct compensation because we knew that if
we were successful in building a track record, the opportunity to create a larger fund
would follow. . . . [O]ur incentives under this model are perfectly aligned with our
investors. If they don’t make money, we really don’t make money. That’s about the
best we can do.
What Alexander’s reply did not acknowledge was the obvious: Investors stood to lose their own
107. The same prospective investor pressed Alexander and Seawright on the question of
“margin”—that is, how did their broker (Adams) guarantee such uniform and consistent profits?
He asked “what are we missing to understand here that a broker exists which [sic] such large
spreads/ margins?”:
Gents – in doing some research on this strategy, I spoke to a friend who is more
familiar with timber. I described the model this opportunity works under, which
was foreign to him. What he is used to seeing is the forester working as an agent of
the landowner, where the forester is incented by receiving (if they are really good)
5-10% of the sales price. In this model, the forester markets the timber directly to
the mills and, in some cases, literally opens the bids up in front of everyone. Both
the concept of a broker and the 30ish % margins discussed seemed unfamiliar (and
this is a very experienced guy).
Notwithstanding this meaningful input, neither Alexander nor Seawright, nor anyone at Baker
Donelson, did anything to slow things down, nor even made a cursory analysis of their and
Adams’s business.
108. Instead Alexander and Seawright speeded things up with more forceful
presentations. They now argued Alexander Seawright Timber Fund II, LLC was for investors
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“with brains and balls.” Meanwhile they continued to invest other people’s money in Alexander
109. In late 2017, Alexander and Seawright finally secured a “key investor” to “seed”
Alexander Seawright Timber Fund II, LLC with $6 million. Alexander wanted $12 million to start
but figured he would raise the remaining $6 million by “bootstrapping.” Eventually he hoped “to
raise an additional $36 [million] over the life of the fund and let it roll for ten years.”
110. The “key investor” was a Baker Donelson client who would fund his investment
with the proceeds from the sale of a major asset. Seawright represented him in the sale. Alexander
told him, “I think you know us well enough to trust us, and if anything were ever go wrong, the
As you know, we are extremely confident in the model which is why we are
investing and reinvesting our earnings along with you under the same conditions.
Every deal has risk, but the only way that the numbers would be affected would be
if we for some reason could not close the rounds on a monthly basis (and I am very
confident we will). . . .
The purchase from the timber owner and the sale to the mill are executed
simultaneously Remember on the sale, we are over-secured by 50 percent. We put
up half the money, but have rights to the entire tract of timber. So, that gives us a
lot of margin to sell to someone else should there be a default. We have never
experienced a default, but we have a lot of wiggle room should one occur.
111. Anticipating their launch, Alexander and Seawright opened a new bank account for
Alexander Seawright Timber Fund II, LLC. Alexander wrote Adams to advise that starting May 1,
2018, they would “start deploying at $1 million a month beginning May 1”:
[W]e have a signed commitment for $6 million that we plan to start deploying at $1
million a month beginning May 1. . . . [I]t is safe to assume that we will invest $1
million an month increasing to $1.5 million a month. . . . Also, this investment,
which will be made under Alexander Seawright Timber Fund II, will be in addition
to the on-going investment in Alexander Seawright Timber Fund I, so plan on an
average of about $350,000 -$500,000 per month in Alexander Seawright Timber
Fund I. We are excited about the opportunity to provide a regular, consistent and
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112. Just days before Alexander and Seawright would have deployed their “key
investor” and client’s money, Adams turned himself in. As news spread, the investor sought
information from Alexander. Alexander told the investor that Alexander and Seawright were
victims:
CAUSES OF ACTION
COUNT I
FOR CIVIL CONSPIRACY
AGAINST ALL DEFENDANTS
113. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
114. Mississippi law defines a civil conspiracy as a “combination of persons for the
115. Defendants conspired with Adams to commit the tortious acts alleged in this
complaint.
116. Defendants agreed to assist Adams by recruiting new investors to Madison Timber.
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117. Madison Timber was a Ponzi scheme; therefore Defendants and Adams’s purpose
was unlawful.
securities, in violation of federal and state law. The securities that Defendants sold were not
exempt from registration but were unregistered, in violation of federal and state law.
119. In furtherance of their unlawful purpose, among other overt acts, Defendants
pitched Madison Timber to potential investors, including their clients; consummated sales of
Madison Timber to investors; and received commissions from Adams for their assistance in
120. Defendants need not have known that Madison Timber was a Ponzi scheme to
unlawfully conspire with Adams. Nevertheless, in view of the numerous red flags described in this
complaint, Defendants knew or should have known that Madison Timber was a Ponzi scheme.
121. Numerous red flags notwithstanding, Defendants lent their influence, their
professional expertise, and even their clients to Adams. They made a fraudulent enterprise a
fraternity. Madison Timber grew from an approximately $10 million-a-year Ponzi scheme in 2011
122. Defendants were essential to the growth of the Madison Timber Ponzi scheme. But
for Defendants’ encouragement and assistance, Madison Timber would not have continuously
grown—it would have failed before ensnaring hundreds of new unwitting investors.
123. Defendants contributed to Madison Timber’s success over time, and therefore to
the Receivership Estate’s liabilities today. Defendants and Adams’s civil conspiracy is a
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124. Defendants are jointly and severally liable for the debts of the Receivership Estate,
125. Because Defendants acted with reckless disregard of the wellbeing of others, and in
specific instances described in this complaint committed actual fraud, punitive damages are
appropriate.
COUNT II
FOR AIDING AND ABETTING
AGAINST ALL DEFENDANTS
126. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
127. The Restatement (Second) of Torts § 876(b) (1979) provides that a defendant is
liable if he “knows that the other’s conduct constitutes a breach of duty and gives substantial
128. Defendants aided and abetted Adams in committing breaches of duties owed by
Adams to Madison Timber and in other tortious conduct alleged in this complaint.
129. In view of the numerous red flags described in this complaint, Defendants knew or
130. Numerous red flags notwithstanding, Defendants gave substantial assistance and
encouragement to Adams. Defendants lent their influence, their professional expertise, and even
their clients to Adams. They made a fraudulent enterprise a fraternity. Madison Timber grew from
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131. Defendants were essential to the growth of the Madison Timber Ponzi scheme. But
for Defendants’ substantial assistance and encouragement, Madison Timber would not have
continuously grown—it would have failed before ensnaring hundreds of new unwitting investors.
132. Defendants contributed to Madison Timber’s success over time, and therefore to
the Receivership Estate’s liabilities today. Defendants’ substantial assistance and encouragement
133. Defendants are jointly and severally liable for the debts of the Receivership Estate,
134. Because Defendants acted with reckless disregard of the wellbeing of others, and in
specific instances described in this complaint committed actual fraud, punitive damages are
appropriate.
COUNT III
FOR RECKLESSNESS, GROSS NEGLIGENCE, AND AT A MINIMUM NEGLIGENCE
AGAINST ALL DEFENDANTS
135. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
136. “Negligence is a failure to do what the reasonable person would do under the same
or similar circumstances.” Estate of St. Martin v. Hixson, 145 So. 3d 1124, 1128 (Miss. 2014).
137. While negligence is the failure to exercise due care, recklessness “is a failure or
refusal to exercise any care.” Maldonado v. Kelly, 768 So. 2d 906, 910 (Miss. 2000).
the numerous red flags described in this complaint, a reasonable person in the same or similar
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139. Defendants not only failed to exercise due care, they failed or refused to exercise
continuously grow. Madison Timber grew from an approximately $10 million-a-year Ponzi
scheme in 2011 to an approximately $164.5 million-a-year Ponzi scheme as of April 19, 2018.
would not have continuously grown—it would have failed before ensnaring hundreds of new
unwitting investors.
Madison Timber’s success over time, and therefore to the Receivership Estate’s liabilities today.
Receivership Estate.
143. Defendants are liable for the debts of the Receivership Estate, which their
144. Because Defendants acted with gross negligence evincing a reckless disregard of
COUNT IV
FOR VIOLATIONS OF MISSISSIPPI’S FRAUDULENT TRANSFER ACT
AGAINST BUTLER SNOW ADVISORY, THORNTON,
ALEXANDER SEAWRIGHT, ALEXANDER, AND SEAWRIGHT
145. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
146. The Receiver may avoid any transfer made in violation of the Mississippi Uniform
Fraudulent Transfer Act (the “Act”), MISS. CODE ANN. §15-3-101, et seq.
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147. Pursuant to § 107 of the Act, the Receiver may recover from any party any funds
that Madison Timber transferred with the actual intent to hinder, delay, or defraud any of its
creditors. Because Madison Timber was a Ponzi scheme, by definition all transfers by Madison
Timber were made with the actual intent to hinder, delay, or defraud its creditors.
148. The Receiver is entitled to avoid all “commissions,” fees, and other such payments
paid by Adams or Madison Timber to Defendants Butler Snow Advisory, Thornton, Alexander
Seawright, Alexander, and Seawright, and to the entry of a judgment against Defendants Butler
Snow Advisory, Thornton, Alexander Seawright, Alexander, and Seawright for the amount of all
149. Alternatively, the Receiver is entitled to recover all monies paid to Defendants
Butler Snow Advisory, Thornton, Alexander Seawright, Alexander, and Seawright because
(i) Madison Timber was insolvent when it paid those commissions because its net liabilities far
exceeded the value of its (nonexistent) assets and (ii) Madison Timber received no value for the
COUNT V
FOR VIOLATIONS OF MISSISSIPPI’S RACKETEER INFLUENCED
AND CORRUPT ORGANIZATION ACT
AGAINST BUTLER SNOW ADVISORY, THORNTON,
ALEXANDER SEAWRIGHT, ALEXANDER, AND SEAWRIGHT
150. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
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151. Mississippi’s RICO statute provides: “It shall be unlawful for any person to
152. Madison Timber was a “fraud enterprise” within the meaning of Mississippi’s
RICO statute because “fraud enterprise” includes one conducted by “mail or other means of
communication,” MISS. CODE ANN. § 97-43-3.1, and Adams was convicted of wire fraud.
153. Mississippi’s RICO statute further provides: “It is unlawful for any person
employed by, or associated with, any enterprise to conduct or participate, directly or indirectly, in
such enterprise through a pattern of racketeering activity. . . .” MISS. CODE ANN. § 97-43-5
commit . . . any crime which is chargeable under [Mississippi’s RICO statute],” MISS. CODE ANN.
and Seawright participated, directly or indirectly, in the Madison Timber “fraud enterprise.”
155. Their participation allowed the Madison Timber “fraud enterprise” to continuously
grow. Madison Timber grew from an approximately $10 million-a-year Ponzi scheme in 2011 to
156. But for their participation, the Madison Timber “fraud enterprise” would not have
continuously grown—it would have failed before ensnaring hundreds of new unwitting investors.
157. By their participation, they contributed to Madison Timber’s success over time, and
therefore to the Receivership Estate’s liabilities today. Their participation is a proximate cause of
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and Seawright therefore are liable for “threefold the actual damages sustained” by the
COUNT VI
FOR JOINT VENTURE LIABILITY
AGAINST ALEXANDER SEAWRIGHT, ALEXANDER, AND SEAWRIGHT
159. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
160. “[A] joint venture can be defined as a single purpose partnership.” Duggins v.
Guardianship of Washington ex rel. Huntley, 632 So. 2d 420, 427 (Miss. 1993). “Profit sharing is
the most important factor in determining whether a joint venture exists.” Walker v. Williamson,
131 F. Supp. 3d 580, 591 (S.D. Miss. 2015). “Where a joint venture exists, its members are bound
by the acts of the other members acting in the course and scope of the joint venture.” Braddock
Law Firm, PLLC v. Becnel, 949 So. 2d 38, 50 (Miss. Ct. App. 2006).
161. Defendants Alexander Seawright, Alexander, and Seawright formed a joint venture
with Adams and Madison Timber, as evidenced by their stated intent to form a fund to invest other
people’s money in Madison Timber and to split the “profits” with Adams.
162. Defendants Alexander Seawright, Alexander, and Seawright did invest other
people’s money in Madison Timber and did split the “profits” with Adams.
Seawright, Alexander, and Seawright are liable for debts incurred within the scope of their joint
venture, which was still ongoing on April 19, 2018, the date Adams turned himself in.
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164. Defendants Alexander Seawright, Alexander, and Seawright therefore are jointly
COUNT VII
FOR ATTORNEY MALPRACTICE
AGAINST BUTLER SNOW
165. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
166. “Lawyers owe their clients a duty to protect them from liability in every possible
way.” Official Stanford Inv’rs Comm. v. Greenberg Traurig, LLP, No. 3:12-cv-4641, 2014 WL
167. Adams and Madison Timber had a lawyer-client relationship with Defendant
Butler Snow. Adams twice engaged Defendant Butler Snow to draft a private placement
168. The PPMs drafted by Defendant Butler Snow contained numerous false and
misleading statements, including but not limited to those described in this complaint, regarding
169. In view of the numerous red flags described in this complaint, a reasonable lawyer
170. Defendant Butler Snow not only failed to exercise due care, it failed or refused to
exercise any care at all in its dealings with Adams. Defendant Butler Snow was not merely
negligent, but reckless, in its handling of legal affairs to which it was entrusted.
171. Although no investor chose to invest in the funds for which the PPMs were drafted,
many relied on the PPMs in choosing to invest in purported “standing tracts” only.
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Madison Timber to continuously grow. Madison Timber grew from an approximately $10
Madison Timber would not have continuously grown—it would have failed before ensnaring
contributed to Madison Timber’s success over time, and therefore to the Receivership Estate’s
175. Defendant Butler Snow is liable for the debts of the Receivership Estate, which its
176. Because Defendant Butler Snow acted with gross negligence evincing a reckless
COUNT VIII
FOR NEGLIGENT RETENTION AND SUPERVISION
AGAINST BUTLER SNOW AND BAKER DONELSON
177. The Receiver re-alleges each of the foregoing paragraphs as though stated fully
herein.
178. “[A]n employer will be liable for negligent hiring or retention of his employee
when an employee injures a third party if the employer knew or should have known of the
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employee’s incompetence or unfitness.” Backstrom v. Briar Hill Baptist Church, Inc., 184 So. 3d
179. Agents of Defendants Butler Snow and Baker Donelson agreed to assist Adams by
recruiting new investors to Madison Timber, thereby acting as unlicensed brokers of securities, in
180. In view of the numerous red flags described in this complaint, Defendants Butler
Snow and Baker Donelson knew or should have known of their agents’ incompetence or unfitness.
181. Defendants Butler Snow and Baker Donelson were reckless, or at a minimum
negligent, in retaining their agents and failing to supervise their agents’ dealings.
negligence, allowed Madison Timber to continuously grow. Madison Timber grew from an
approximately $10 million Ponzi scheme in 2011 to an approximately $164.5 million Ponzi
183. But for Defendants Butler Snow and Baker Donelson’s recklessness, or at a
minimum negligence, Madison Timber would not have continuously grown—it would have failed
minimum negligence, contributed to Madison Timber’s success over time, and therefore to the
Receivership Estate’s liabilities today. Defendants Butler Snow and Baker Donelson’s
Estate.
185. Defendants Butler Snow and Baker Donelson are liable for the debts of the
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186. Because Defendants Butler Snow and Baker Donelson acted with gross negligence
evincing a reckless disregard of the wellbeing of others, punitive damages are appropriate.
187. Defendant Butler Snow is liable for the acts of Butler Snow Advisory, and
therefore the acts of Thornton and Billings, because Defendant Butler Snow authorized or directed
those acts; had knowledge of, or gave consent to, those acts; or acquiesced in those acts when it
knew or should have known that it should have taken steps to prevent them.
188. Defendant Butler Snow is liable for the acts of Butler Snow Advisory because the
two effectively operate as a single business enterprise, and Butler Snow and Butler Snow Advisory
189. The Receiver is entitled to a declaratory judgment holding, inter alia, that
Defendant Butler Snow is liable for payment of all damages or other relief awarded in favor of the
190. Defendants Alexander and Seawright are liable for the acts of Alexander Seawright
191. Defendants Alexander and Seawright are liable for the acts of Alexander Seawright
192. The Receiver is entitled to a declaratory judgment holding, inter alia, that
Defendants Alexander and Seawright are personally liable for payment of all damages or other
relief awarded in favor of the Receiver and against Defendant Alexander Seawright.
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193. The apparent backing of Defendants Butler Snow and Baker Donelson enabled
Thornton and Billings, and separately Alexander and Seawright, respectively, to recruit new
investors to Madison Timber. Defendants Butler Snow and Baker Donelson are liable for the
negligent and reckless acts of their agents, including but not limited to Thornton and Billings, and
194. The Receiver is entitled to a declaratory judgment holding, inter alia, that
Defendant Butler Snow is liable for payment of all damages or other relief awarded in favor of the
Receiver and against Defendants Butler Snow Advisory and Thornton, and that Defendant Baker
Donelson is liable for payment of all damages or other relief awarded in favor of the Receiver and
___________________
WHEREFORE, the Receiver respectfully requests that, after due proceedings, the Court
enter judgments:
3. awarding any and all other relief as may be just and equitable.
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