The defendants allegedly falsely promised investors that they will earn a 12.5% quarterly return on their investments. They raised $449 million from more than 600 investors from at least 2017 to March 2022.
J&J Consulting Services was supposed to provide advance funds to tort plaintiffs who reached settlements with insurance companies. The company will make money from tort plaintiffs as they are willing to pay a premium to receive a portion of their settlement in advance instead of waiting for payments from insurance companies.
However, the defendants did not use investors’ money for its purpose. Instead, they used a bulk of investors’ funds for personal benefits including buying luxury homes, cars, boats, and private jets.
The defendants paid the promised made-up quarterly returns to earlier investors to continue their Ponzi scheme.
On March 3, 2022, agents from the Federal Bureau of Investigation (FBI) executed search warrants at the homes of Beasley, Judd, and Humpries.
Beasley brandished a pistol when FBI agents arrived at his home. Agents shot Beasley twice. The defendant then locked himself inside his home for almost four hours. During the standoff, he repeatedly admitted to an FBI negotiator that the J&J Entities’ are actually running a Ponzi scheme that started in 2017 or 2017.
