Ex-business partner of $100M Ponzi scheme mastermind found not guilty

The ex-business partner of the man behind the largest Ponzi scheme in Mississippi history was found not guilty Thursday in federal court in Jackson.

William "Bill" McHenry Jr., 72, of Canton had been charged with one count of securities and commodities fraud and two counts of wire fraud in the case. But a federal jury acquitted him after about two hours of deliberation.

"Justice was served," McHenry said after walking out of the courtroom. "This thing tore up my life for two years."

McHenry had faced up to 60 years in prison if convicted on all charges.

Prosecutors said McHenry recruited investors for Arthur Lamar Adams  who was sentenced to 19½ years in prison for the $100 million scam in October of 2018.

Only Adams and McHenry have been charged criminally so far in the case.

McHenry recruited investors for Adams' business, Madison Timber Properties, but he said he didn't know the business was a Ponzi scheme. A Ponzi scheme is where someone takes investors' money and uses it to seed other investments while pocketing proceeds.

Assistant Federal Public Defender Abby Brumley, one of the attorneys representing McHenry, said the jury got it right. She said the scheme was all Adams' doing.

Investors were duped by Adams, who promised approximately 300 investors a return of 13% interest. 

Adams testified in his sentencing hearing that he didn't personally know 95 percent of the investors.

Investors included:

• A Hollywood producer.
• The Los Angeles-based Booth Foundation, which provides funding for a host of causes from religious and educational to the prevention of cruelty to children or animals.
• A doctor and his wife.
• A police officer.
• U.S. Sen. Roger Wicker and his wife.

Mills received a $3.4 million judgment against McHenry.

The criminal case the U.S. Attorney’s Office tried was narrow, Mills said.

"There are dozens of victims, many elderly, who entrusted their life savings to Bill McHenry," Mills said. "Today’s verdict is not a rebuke of their stories, which were not told at this trial.  This verdict should not discourage victims of McHenry or anyone. Victims should reasonably expect that criminal authorities, whether federal or state, will pursue justice."

McHenry is  president of Ridgeland-based First South Investment company. The company's website says it specializes in oil and gas, land, timber and private equity investments. Also, McHenry is listed on the Secretary of State's business registry as once owning a company, now dissolved, at the same Madison address as Adams' company.

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