Edward Adams
A University of Minnesota Law professor, Edward Adams, stands accused of embezzling millions of dollars from investors. The indictment alleges that over the course of eight years the professor took $4.38 million from investors in Apollo Diamond, Inc., and made payments of over $2.54 million to his own law firm.
Adams, who holds several positions in Apollo Diamond, allegedly took investor money that was intended for operational costs and instead deposited the money into his own accounts. The indictment also indicates that by 2010, this theft had put Apollo Diamond on the brink of bankruptcy. As reported by the Minnesota Star Tribune, it was at this point that things got really interesting:
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To keep the theft from being uncovered through bankruptcy litigation, Adams convinced shareholders to convert their worthless Apollo stock into stock in a new company — Scio Diamond Technology Corp. — that Adams secretly controlled, according to the indictment.
Federal officials allege Adams used the new company to raise $2 million and then funneled most of it into bank accounts that he controlled.
As one might imagine from this litany of alleged financial crimes, his legal expertise is on the corporate side of things, as per Minnesota Law’s website:
Professor Edward S. Adams specializes in commercial, bankruptcy, and corporate law. He teaches bankruptcy, creditors remedies/secured transactions, commercial paper, corporations, and corporate finance.
He began working at the law school in 1992 and has received numerous academic honors and written extensively on corporate structure, bankruptcy, and the legal profession.
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Adams is expected to make his first appearance in federal court this week.
University of Minnesota law professor indicted in fraud scheme [Minnesota Star Tribune]
Kathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).