UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF MISSISSIPPI NORTHERN DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. ARTHUR LAMAR ADAMS AND MADISON TIMBER PROPERTIES, LLC, Defendants. Case No. 3:18-cv-252 Hon. Carlton W. Reeves, District Judge Hon. F. Keith Ball, Magistrate Judge MOTION FOR APPROVAL OF SETTLEMENT Alysson Mills, in her capacity as the court-appointed receiver (the “Receiver”) for Arthur Lamar Adams and Madison Timber Properties, LLC, through undersigned counsel, respectfully moves the Court to enter the attached proposed Order Approving Settlement, 1 which approves the Receiver’s Settlement Agreement with Century Club Charities, Inc. (“Century Club Charities”) [Exhibit A]. In support, she states as follows: 1. The Receiver does not allege any wrongdoing by Century Club Charities. The Receiver and Century Club Charities have determined, however, that Century Club Charities received cash contributions from Arthur Lamar Adams and Terry Wayne Kelly that were proceeds of the Madison Timber Ponzi scheme. Upon information and belief, the total amount of those contributions is approximately $137,450. 1 Pursuant to the Court’s Administrative Procedures for Electronic Case Filing, Sec.5.B, the proposed Order Approving Settlement is being transmitted via e-mail to Judge Reeves’s chambers simultaneous with the filing of this motion. Case 3:18-cv-00252-CWR-FKB Document 158 Filed 06/28/19 Page 1 of 4
Transcript
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF MISSISSIPPI
NORTHERN DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.
ARTHUR LAMAR ADAMS AND
MADISON TIMBER PROPERTIES, LLC,
Defendants.
Case No. 3:18-cv-252
Hon. Carlton W. Reeves, District Judge
Hon. F. Keith Ball, Magistrate Judge
MOTION FOR APPROVAL OF SETTLEMENT
Alysson Mills, in her capacity as the court-appointed receiver (the “Receiver”) for Arthur
Lamar Adams and Madison Timber Properties, LLC, through undersigned counsel, respectfully
moves the Court to enter the attached proposed Order Approving Settlement,1 which approves
the Receiver’s Settlement Agreement with Century Club Charities, Inc. (“Century Club
Charities”) [Exhibit A]. In support, she states as follows:
1.
The Receiver does not allege any wrongdoing by Century Club Charities. The Receiver
and Century Club Charities have determined, however, that Century Club Charities received cash
contributions from Arthur Lamar Adams and Terry Wayne Kelly that were proceeds of the
Madison Timber Ponzi scheme. Upon information and belief, the total amount of those
contributions is approximately $137,450.
1 Pursuant to the Court’s Administrative Procedures for Electronic Case Filing, Sec.5.B, the proposed Order
Approving Settlement is being transmitted via e-mail to Judge Reeves’s chambers simultaneous with the filing of
this motion.
Case 3:18-cv-00252-CWR-FKB Document 158 Filed 06/28/19 Page 1 of 4
2.
The Receiver and Century Club Charities have agreed to amicably resolve the
Receivership Estate’s claims to the cash contributions by Adams and Kelly.
3.
Century Club Charities previously returned to Kelly funds in the amount of $28,000
reflecting contributions made by Kelly in 2018. These funds were part of funds returned to the
Receivership Estate via the Receiver’s settlement with Kelly.
4.
Century Club Charities agrees to return to the Receivership Estate additional funds in the
amount of $56,944, reflecting the remaining amount of contributions Century Club Charities
received from Adams and Kelly, minus the value of tangible benefits received by Adams or
Kelly for those contributions. In turn the Receiver shall release all claims the Receivership Estate
has or may have against Century Club Charities for contributions by Adams and Kelly to
Century Club Charities.
5.
As the accompanying memorandum shows, the proposed settlement reflects the full
amount of cash contributions to Century Club Charities minus the value of tangible benefits that
Adams or Kelly received for those contributions. The Receiver believes this is fair and
reasonable consideration for the avoidance of the time and expense that would have
accompanied any litigation.
6.
The proposed settlement follows meaningful, informed, arm’s-length negotiations
between the Receiver and Century Club Charities, both represented by highly capable counsel.
Case 3:18-cv-00252-CWR-FKB Document 158 Filed 06/28/19 Page 2 of 4
7.
The Receiver appreciates Century Club Charities’ willingness to return the full amount of
contributions that it received from Adams and Kelly, minus the value of tangible benefits that
Adams or Kelly received for those contributions, and hopes that its example may encourage
others in the same position to do the same.
8.
The Receiver believes settlement on the proposed terms without litigation unquestionably
is in the Receivership Estate’s best interests. The Receiver thus recommends that the Court
approve the Settlement Agreement by entering the proposed Order Approving Settlement.
WHEREFORE the Receiver asks that after due consideration the Court enter the
proposed Order Approving Settlement.
________________________
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