Trustmark to Pay $6.5 Million to Settle Alleged Ponzi Scheme Fraud Claims

By Sabela Ojea

Trustmark has agreed to pay $6.5 million to the federal receiver Alysson Mills in benefit of investors who were allegedly defrauded by the Ponzi scheme operated by Arthur Lamar Adams and Madison Timber Properties.

The bank holding company made no admission of liability or wrongdoing in connection with Adams and Madison Timber, according to a U.S. Securities and Exchange Commission filing on Friday.

Trustmark has, however, determined "it is in the best interest" of the company and shareholders to enter into the settlement, to eliminate risks and costs of continuing litigation.

The settlement includes the parties' agreement to seek the Court's entry of bar orders prohibiting any continued or future claims by anyone against Trustmark and its related parties relating to Adams and Madison Timber.

Write to Sabela Ojea at [e-mail]

(END) Dow Jones Newswires

09-01-23 1731ET