Two men have been charged in relation to what the U.S. Attorney’s Office referred to as the largest Ponzi scheme in the state’s history in 2018.
Ted Alexander, 55, and Jon Seawright, 49, each face charges for their role in the ‘Madison Timber Properties’ Ponzi scheme that promised guaranteed returns to investors who thought they were lending money to a “broker enterprise” purchasing timber that was then marketed to multiple lumber mills.
The indictment alleges that Alexander and Seawright solicited over $20 million from more than 50 investors throughout the course of the scheme from January 2011 through December 2018 by lying about inspecting nonexistent lumber mills and misrepresenting that they had invested their own funds in the venture.
Both men have been formally charged with one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and four counts of wire fraud involving a scheme to defraud investors. The case is currently scheduled to go to trial on July 6, 2021.
The mastermind behind the scheme and owner of Madison Timber Properties, Arthur Lamar Adams, was sentenced to 20 years in prison in 2018. In total, the scheme is said to have swindled more than 320 people out of more than $165 million across 14 states.
Following Adams’ conviction, the United States District Court appointed a receiver, who is actively seeking to recover and maximize assets for restitution to investor victims. Information regarding the Receiver’s activities can be found at the receiver’s website, madisontimberreceiver.com.
