I just got an email response from Jonathan Cox of the News and Observer that sentencing has been postponed again, until June, for the ex-CFO of The Castleton Group, Jay McLamb. He also said that no specific date had been set.
I hate to speculate, but since this is a blog and full of my opinions, I will. I would guess that Jay’s sentencing is probably taking a while for various reasons: The investigators are probably digging though a web of financials only he can help untangle as they work to build a case against Suzanne Clifton and potentially her son. Jay’s lawyers could still be negotiating his sentence based upon the amount and quality of information he’s provided. If I were Clifton I would be more and more weary of the case being built the longer Jay’s sentencing is postponed. There are lots of Internet comment rumors about the funds transferred between Castleton and The Executive staffing group. If there is any truth to these accusations then the investigators could be taking their time to build an air tight federal case to avoid defense loopholes.
The Trustee suing Clifton and her mortgage companies could step up efforts to recover from her personal assets despite her supposed insolvency through bankruptcy. I read somewhere that she didn’t not even file some of the papers for her bankruptcy within the required time frame.
There are a lot of people who don’t want Clifton to just walk away from this with millions in bankruptcy protected personal assets while there are so many small businesses still suffering from the ramifications of her companies criminal activity. I also think it’s a great addition to the argument surrounding why 2nd and 3rd homes qualify for bankruptcy protection when primary residences do not. Clifton should not be allowed to keep these home regardless of her criminal involvement (because of her companies debts to former customers). They should be seized by US Marshals the same way Madoff’s yacht and Florida vacation home were.
Truth is generally the best vindication against slander. Remember…If you don’t read the newspaper, you are uninformed; if you do read the newspaper, YOU ARE MISINFORMED.
Am I to assume the comment above was posted by a Clifton supporter? Am I correct that you are asserting that Jonathan Cox is providing misinformation in his reporting of this case? Are you accusing the News & Observer of slander?
If so, be prepared to make your perceived discretion’s public or don’t make such an accusation. Otherwise you’ve done nothing but make a highly debatable, smart-ass remark as an anonymous coward.
I have an inclination to delete the comment and may very well do so in the near future. I can’t really tell if the comment is even related to my original topic.
(BTW – It’s libel, not slander, if it’s in print.)
Todd – I know what you’re saying. As I read all of these blogs, it’s disappointing to know that people have so much to say, but can’t tell the world who they are. Would they say these things if they had to state their real name? Were blogs created to be an anonymous opinion forum? What happened to substance, taking a stand for something, but being man or woman enough to debate it openly?
Any update on Jay’s sentencing? Seems odd that it has gone so quiet.
Heard on WRAL this morning that sentencing was today in New Bern? Can’t find any info though on WRAL.com anyone know what is going on?
Apparently this did happen today @ 9:30 AM in the U.S. District Court in New Bern, Hon. Louise W. Flanagan, Chief U.S. District Judge presiding. It was the only case on her calendar today. There’s no information available on the actual sentence that I can find. It’s possible there’s a reason it’s not available yet.
Jay’s sentencing was held this am. He was sentenced to 30 months. He will not be asked to report any earlier than January 15, 2010. He has not yet been given the credit for his cooperation because the ongoing investigation is not far enough along. We are hopeful the prosecution will ask for a downward departure prior to his report date due to his ongoing full cooperation.
See related article:
http://toddsingleton.net/chronicle/?p=314
Okay, the 30 months is one thing. But why is he being held personally responsible for the entire $8 million owed by CGI? We already know that $3 million of it was withdrawn by Suzanne and I think I read somewhere that their self-insured health plan had been in big trouble. I’ll bet a good bit of the money went there. Bottom line, Jay very likely DID NOT personally benefit from it. (And before someone tells me I’m naive – if he did, then where are the embezzlement charges?) The $8 million part of the verdict seems an awful lot like scapegoating.
When it comes to taxes, especially payroll taxes, the government doesn’t mess around. As both a CPA, and a Corporate Executive (CFO), he can be held personally liable. It probably depends on the details of the situation. Who signed what, who had control of what. I don’t know. But it’s hard to think he didn’t embezzle money, because one would think – to risk his freedom, his reputation, his career, pain his family has to be enduring – that he would have risked it for something for himself. And I don’t buy the whole theory about doing it for the employees crap. They are the ones who got screwed the most.
But I honestly don’t think he took any money. I think he just closed his eyes, clicked the heels of his red ruby slippers together and said “It’ll be okay.. It’ll be okay.. It’ll be okay..” Idiot.
Anyone know where Jay is and what Jay is doing is he doesn’t have to report until January (at the earliest)?
Spending time with his family you idiot – what were you expecting???
Looks like James is getting out of jail! I wonder if he will come after ESG and the boys…
Name Register # Age-Race-Sex Release Date
Location
1. JAMES O MCLAMB JR 25796-056 45-White-M 10-11-2011 RALEIGH CCM