[M]cHenry falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither McHenry, Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.

McHenry and Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.

McHenry and Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors.

To further lull investors, Adams had many of the documents notarized to make the investments appear legitimate. McHenry and Adams also required the investors to agree not to record their timber deeds unless Madison Timber Properties defaulted on the loan agreement by failing to make a payment.

McHenry misled his investors to think that McHenry was a principal officer of Madison Timber Properties and was personally invested with his own funds in the enterprise. Instead, McHenry in fact only received a ten percent commission on all the investments he recruited, which McHenry failed to disclose.

Following the 2018 criminal prosecution of Arthur Lamar Adams, the United States District Court appointed a receiver, who is actively seeking to recover and maximize assets for restitution to investor victims. . .

In October 1991, Minor moved plan assets to Transamerica Life Insurance and Annuity Co., for which he registered as an insurance agent. Minor falsely represented to the rehabilitation center and plan trustees that Multi Financial would work in partnership with Transamerica Life to administer the plan, even though Transamerica had no partnership with Minor, and did not provide any administrative or record keeping services for the plan. As a result, Minor was able to exercise control of the plan.

Minor used that authority to direct one plan trustee to endorse benefit checks from Transamerica to Multi Financial, with the understanding that Minor would then issue payments to specified plan participants. In other instances, Minor forged the trustee's name on the checks.  Later in the scheme, Minor opened a bank account in the name of "Trustee for the Rehabilitation."  Since the checks were payable to the Trustee for the Rehabilitation, Minor could directly deposit the checks into this account without the endorsement of the plan trustee. 

Minor made at least 63 fraudulent requests to Transamerica for lump sum benefits checks for participants not entitled to plan benefits. Transamerica honored the requests and issued 63 checks payable to the Trustee for the Rehabilitation.  Minor deposited the first 15 checks into the Multi Financial account and the remaining 48 checks into the Trustee for the Rehabilitation account.  In total, he fraudulently transferred approximately $2 million from the plan's Transamerica account to his own accounts, using the plan's assets to benefit himself.