Southport Capital (Horizon Private Equity) Ponzi Scam Update

John J. was the recipient of the Ponzi scheme. Woods will liquidate the assets as quickly as possible. This includes more than $ 55 million of entities in the Chattanooga area.

The receiver, however, stated in court documents that he did not know how long it would be before he sold assets and distributed the funds to more than 400 investors allegedly charged under the scheme.

A. Cotten Wright has been appointed as the attorney for North Carolina to act in the capacity of receiver. In her first quarterly report, she told a federal judge overseeing the U.S Securities and Exchange Commission’s action against Woods, that she did not know whether there were any net winners.

Woods, who was arrested in August by the Federal authorities for running a Ponzi A scheme that has defrauded more than 10 years of investors.

According to the complaint the scheme was based on Horizon Private Equity and raised over $110 million in investment. It also promised returns of 6-7%.

The complaint claimed that the investment was too small to really be able repay the principal to the existing investors.

SEC charged Woods de Marietta Georgia and Southport Capital in Chattanooga with six securities frauds.

The receiver had created a case website that indicated the case was ongoing. “very likely” Investors would receive their principal investment in full. The receiver has stated that they will maximize their return to investors.

Website stated that Horizon would liquidate its assets to make sure as much investor money was as possible.

David Chaiken Woods Atlanta lawyer stated that “SEC allegations only one side” The story.

“We look forward to presenting Mr. Woods’ side in court through the judicial procedure,” Chaiken Stated.

Woods was a native from East Ridge and heavily involved with Chattanooga-based entities. The Chattanooga Lookouts, a minor baseball team, and real estate projects that included former Sears and Penney stores at Northgate Mall were among them.

The receiver reported that Woods had a 66% interest in Livingston Group Asset Management. The same company runs Southport Capital, a financial advisory firm with an annual budget of $ 34 million.

Woods has invested in 13 projects in Chattanooga Fort Oglethorpe and other areas for $21.2 Million, according to the recipient.

The receiver has already asked U.S. district judge Steven J. Grimberg to approve Chattanooga Lookouts application for the purchase of the Woods owned portion of the staff for $1.87million. Woods held a 20,1% stake according to court documents.

Woods also has assets of $ 14,9 million in cash. The receiver said that it is reviewing and evaluating potential claims. She stated that she would submit a proposal for court approval regarding a claim allowance and deadline. “at the appropriate time”.

Wright announced that distributions are to be made by court order.

She has set up a special telephone line for Horizon investors. The receiver reported that these calls were received daily. Wright also stated that in order to be able to communicate with the investors, he had created an email for the receivership.

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