A Baker Donelson partner has filed a petition for Chapter 7 bankruptcy that would pause litigation contending that he aided a Ponzi schemer who was sentenced to 19.5 years in prison. The partner, Jon Darrell Seawright, said in the Nov. 3 filing that he has a net worth of $1.29 million but potentially owes creditors $166 million.
The filing lists $165 million in disputed and contingent debt as a result of a suit filed by a receiver for timber investment companies owned by convicted Ponzi schemer Arthur Lamar Adams. Adams had told investors that they were buying shares of timber tracts that, in reality, did not exist.
The receiver has sued the law firms Butler Snow and Baker Donelson, along with Seawright and Baker Donelson lobbyist Brent Alexander, for allegedly aiding and abetting the scheme. The litigation continues.