Home Scam/Fraud Chattanooga firm accused in Ponzi scheme denies wrongdoing

Chattanooga firm accused in Ponzi scheme denies wrongdoing

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A Chattanooga-based investment company, named in a Ponzi scheme along with former chief executive John J. Woods, is denying allegations of wrongdoing made by federal regulators.

Attorneys for Livingston Group Asset Management Co., which does business as Southport Capital, also said in court papers that the firm denies any liability related to investors in a fund used in the alleged Ponzi scheme.

They said the regulators’ asserted claims and damages were caused, if at all, “by intervening events over which Southport had no control in, was not involved in and for which it is not responsible.”

In August, the U.S. Securities and Exchange Commission accused Woods, 56, and Southport Capital of six counts of securities fraud in “a massive Ponzi scheme.” The complaint said the scheme went by the name Horizon Private Equity and collected more than $110 million from over 400 investors with promises of 6-7% rates of…

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