New restraining order granted in Jeffery and Wendy Gentry lawsuit
by Bobby Lee McCulley | April 20, 2017 6:04 am
Jeffery L. Gentry and Wendy Gentry, of Sparta, who have been the center of several lawsuits and a federal investigation, were served, on April 15, 2017, with a new restraining order.
The federal government is conducting a criminal investigation into reports that Jeffery L. Gentry and Wendy Gentry executed a Ponzi scheme to allegedly defraud investors.
According to previous legal filings, the FBI has been investigating reports that Jeffery L. Gentry and Wendy Gentry used their personal relationships and business relationships to criminally defraud investors, which has allegedly resulted in significant financial losses through a Ponzi-type scheme. Jeffery L. Gentry and Wendy Gentry have been working with the United States Attorney’s Office during this investigation, according to legal documents.
On Jan. 4, 2017, Donald Edward Gentry, of Sparta, filed a civil lawsuit against his brother and sister-in-law, Jeffery L. Gentry and Wendy Gentry. Donald Gentry alleges in the lawsuit that he was “induced” by his brother and sister-in-law to make investments of approximately $300,000, and these investments were allegedly not repaid or returned.
On Jan. 10, 2017, Scott A. Turney, of Sparta, and Mark Lindsey, of Nevada, also filed a lawsuit against Jeffery L. Gentry and Wendy Gentry. Turney and Lindsey allege that the couple defrauded them in total of $5.4 million. Their lawsuit claims that a Ponzi scheme acquired assets with funds taken as part of the fraudulent scheme.
From the period of Feb. 13, 2017, to March 17, 2017, the two separate lawsuits were combined for discovery purposes, and multiple temporary restraining orders were issued against Jeffery L. Gentry and Wendy Gentry and their businesses, Gentry Brothers Tractor Supply and Gentry Auto Sales. The purpose of the restraining orders was to prevent the pair from being able to sell, convey, borrow against, barter, move, dissipate, or hide vehicles from Gentry Auto. The last temporary restraining order was in effect until April 13, 2017, which was the next court hearing.
On April 12, 2017, Turney and Lindsey filed a new motion for a temporary restraining order and temporary injunction based on newly discovered undisclosed assets. According to a legal document filed by Turney, it was alleged that plaintiff Donald Edward Gentry is in possession and holding on his personal property a bulldozer and tractor-trailer that is allegedly owned by the defendants, Jeffery L. Gentry and Wendy Gentry.
Turney also alleges that Jeffery L. Gentry and Wendy Gentry, at least in the past, rented a storage facility from the White County Board of Education. It has also been alleged that there are over 4,000 line items of inventory owned by Jeffery L. Gentry and Wendy Gentry, including more than 90 pieces of large-scale heavy equipment, being housed at the White County Commission storage facility.
It has also been alleged that Jeffery L. Gentry and Wendy Gentry also have in their possession a large trailer, a recreational vehicle valued at $150,000- $200,000, multiple tractors, and a 2015 GMC Yukon that were not previously disclosed.
According to the court document, neither the existing restraining orders nor the U.S attorney’s protective order, which only covers Jeffery L. Gentry and Wendy Gentry’s bank accounts, protect the newly discovered assets.
The newly filed restraining order, which was granted on April 13, 2017, in the Circuit Court of White County, applies to not only Jeffery L. Gentry and Wendy Gentry and their businesses, but also includes Donald Edward Gentry, the White County Commission, and any landlord of any storage facility housing the defendants’ assets.
The restraining order prevents the selling, conveying, borrowing against, bartering, moving, dissipating, or hiding any and all assets belonging to the defendants. Additionally, a detailed inventory of all assets owned by Jeffery L. Gentry and Wendy Gentry and their businesses has been ordered, regardless where they are being housed.
The federal government is working toward cataloging all of Jeffery L. Gentry and Wendy Gentry’s property. The FBI, ordered by the U.S. Attorney’s Office, has seized seven vehicles from Jeffery L. Gentry and Wendy Gentry. The United States Marshal’s Service is in the process of selling:
- 2006 Cadillac DTS
- 2010 Chevy 2500
- 2011 Chevy Avalanche
- 2011 Chevy 2500
- 2010 Ford Ranger
- 2011 Ford F250
- 2005 Nissan Quest
The U.S. Marshal’s Office will hold onto the proceeds in an account maintained by the federal government, including a $38,000 cashier’s check that was seized by the FBI.
Reportedly, Assistant U.S. Attorney Debra Phillips informed Circuit Court Judge Jonathan Young that there is a herd of cattle that is jointly owned by an undisclosed party and Jeffery L. Gentry and Wendy Gentry. The federal government is negotiating with the party about the cattle, which are worth approximately $150,000, according to Phillips.
The civil cases will continue to move forward in the Circuit Court of White County. According to legal documentation, the U.S. Attorney’s Office will work with Jeffery L. Gentry and Wendy Gentry while the FBI continues its criminal investigation.