Felony Justice
Former Baker Donelson lobbyist pleads responsible for position in timber funding scheme
A former Baker, Donelson, Bearman, Caldwell & Berkowitz lobbyist pleaded responsible Wednesday to conspiracy to commit wire fraud for collaborating in a scheme to defraud traders in timber investments.
Former lobbyist Ted Brent Alexander admitted collaborating in a scheme that solicited tens of millions of {dollars} from traders who had been led to suppose that he was personally inspecting tracts of timber that had been the idea for his or her investments, in keeping with an April 27 press release from the Division of Justice.
Law360 has protection.
Alexander pleaded responsible in federal court docket in Jackson, Mississippi.
Former Baker Donelson associate Jon D. Seawright pleaded guilty in July 2022 to a conspiracy to defraud traders in the identical scheme. He was accused of soliciting the traders together with Alexander and misrepresenting their due diligence in vetting the timber contracts.
Traders had been advised that rights to the timber had been offered to a timber dealer, who then offered the timber rights to lumber mills at a better value. Alexander stated he loaned funds to the timber dealer, and traders might reap a return of 10% or extra on their funding, in keeping with the press launch.
Alexander represented that he was not solely inspecting the timberland but additionally reviewing documentation supporting the investments.
“If Alexander and his co-conspirator had made such inquiries,” the press launch stated, “they might have found that the timber deeds, lumber mill agreements, and associated paperwork had been falsified and weren’t legitimate.”
Alexander additionally gave the deceptive impression that he would revenue provided that the investments carried out as promised, in keeping with the press launch. He did not disclose, nevertheless, that he additionally made cash by acquiring investments.
Baker Donelson has beforehand stated it has no involvement within the scheme. The agency advised Law360 in an announcement that Alexander’s plea considerations entities that had no affiliation with Baker Donelson. The legislation agency by no means represented the timber dealer or entities concerned within the scheme “and by no means profited in any method” from the entities, the assertion stated.
Law360 spoke with Alexander’s lawyer, Matthew Eichelberger, following the responsible plea.
“Brent apologizes to the court docket, to his household, his buddies, his colleagues and particularly his traders for embroiling them on this controversy,” Eichelberger advised Law360. “He’ll do all the things he can to assist make his traders complete. Lastly, he expresses his profound appreciation for the many individuals who’ve stood by him via this ordeal and supplied solace and assist as he navigated his method via this course of.”
