A U.S. District Court judge in Atlanta has appointed a receiver to oversee assets in the alleged Ponzi scheme of John J. Woods, including millions of dollars invested in Chattanooga.
Also, the U.S. Securities and Exchange Commission has proposed that Woods be limited to transfer $20,000 to a bank account with the right to seek added funds in 90 days for his expenses. The SEC said in a court document that it’s highly likely there will be a substantial shortfall between the amount Woods raised from investors and the money available to be paid back to them.
Judge Steven J. Grimberg ordered that a Charlotte, North Carolina, attorney be named as receiver in Woods’ case. A. Cotton Wright of the law firm Grier, Wright and Martinez was recommended by the SEC.
Wright will have the power to determine the value of Woods’ assets, which include a stake in the Chattanooga Lookouts baseball team, and take control and manage them, according to court documents.
The judge said that “the appointment of a receiver in this action is necessary and appropriate for the purposes of marshaling and preserving all assets…”