A federal judge has denied a motion by Jabari Edwards and Antwann Richardson to dismiss asset forfeiture claims against Edwards’ businesses.
Edwards and his business partner, Antwann Richardson, were arrested in June for multiple charges relating to allegedly misusing more than $2 million in Paycheck Protection Plan and Economic Injury Disaster Loan program loans. The loan programs were intended to help maintain employment rates and assist businesses recovering from hardships as a result of the COVID-19 pandemic.
The FBI, as well as other state and federal agencies, raided J5’s headquarters in downtown Columbus on June 16.
Edwards and Richardson were charged with wire fraud, conspiracy to commit wire fraud and money laundering. Edwards was also charged with making false statements.
Federal Judge Sharion Aycock, in a Nov. 1 ruling, denied Columbus attorney Wilbur Colom’s motion to dismiss a restraining order against assets held by J5 GBL, J5 Solutions, Edwards Enterprises, The Bridge Group, BH Properties and Build Development Group. All of those companies are owned by Edwards, and Colom was writing on behalf of the business entities, not on behalf of Edwards and Richardson personally.
Aycock wrote that the law precludes the companies — which are not themselves being prosecuted — from asking for relief. She also said that the assets had not yet been forfeited.
“At this stage in the criminal prosecution, the Court has not entered an order of forfeiture,” she wrote. “Rather, the court has only entered a post-indictment restraining order which froze certain bank accounts and prohibited the disposition of certain real property.”
Aycock emphasized that the companies Colom represented were not themselves involved in the criminal charges.
“… none of the entities have been indicted, and this court has not entered an order of forfeiture in this case,” she wrote. “Instead, the court has … simply frozen specific assets which appear likely to be subject to forfeiture in the event of a conviction.”
In his motion to dismiss, Colom attacked the facts of the indictment itself. Aycock was not amused.
“The (companies) have not been indicted, and counsel for the (companies) does not represent (Edwards and Rickardson),” Aycock wrote. “This Court therefore views the (companies’) arguments regarding the underlying allegations of the indictment as procedurally improper.”
Prosecutor’s motion to dismiss
On Oct. 24 prosecutors filed a response to Colom’s original motion, arguing that it “improperly seeks dismissal of the forfeiture notices based on numerous questions of fact.”
Assistant United States Attorney Samuel D. Wright raised the argument that Edwards’ businesses were “third parties attempting to intervene in a criminal case,” and that the law barred the court from granting the motion to dismiss.
He also argued that Colom’s motion “… appears to simply be a factual challenge to the substantive criminal allegations made against Edwards and Richardson that must be left to trial.”
Investigators allege Edwards and Richardson filed false claims for pandemic relief funding on behalf of North Atlantic Security in January 2021, but that the company was sold to American Sentry Security Services in March 2021. The money they got on NAS’s behalf was allegedly used for personal real estate transactions, including buying Court Square Tower, political contributions, charitable donations, buying vehicles and lump sum payments to friends, family members and other companies.
Colom, in his motion, had argued against a forfeiture claim against 12 bank accounts at Cadence Bank and Bank of Vernon, as well as two pieces of real property, one of which is Court Square Tower.
Court Square Tower, located at 605 Second Avenue North, was formerly owned by Court Square Tower LLC, a company controlled by Colom. Edwards bought it for $1.2 million in January 2021.
Brian Jones is the local government reporter for Columbus and Lowndes County.
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