On a cold January day in late 2016, a Phoenix company called Jackson Wealth Management Inc. received an email from a client asking if the company could sell assets that had been valued at $2 billion.
Jackson said it could sell a stake in its asset-management business, and it would then recoup some of the value of the asset.
“It was really just an enormous waste of money,” said John H. Boyd, who owns a company called Diamond Partners, which is based in Phoenix.
Boyd said the email was sent after the company’s valuation had been lowered to $1.5 billion.
“When I opened that email I thought it was an interesting piece of paper,” Boyd said.
Boyd and other investors at the time weren’t expecting to see their money back.
Boyd says he got a call from Jackson CEO Mark Jones asking him to send some money to his daughter’s college.
Boyd told CBC News he didn’t believe his daughter would need a loan.
“My daughter is very self-sufficient, so I don’t think she would need to borrow money to buy a house,” Boyd told the CBC.
Boyd declined to name Diamond Partners because of the ongoing litigation between the company and Diamond Partners.
“I feel like the whole thing has been a waste of time,” Boyd added.
Boyd bought the Phoenix asset and said the company did well in the short term by investing the money in an auto dealership in Phoenix that is now defunct.
“The whole thing is a waste,” Boyd explained.
Boyd’s daughter, Katie Boyd, lives in a Phoenix condo.
Boyd didn’t return CBC’s request for comment.
Boyd believes the Phoenix-based company is a fraud because Diamond Partners had no idea the Phoenix assets were worth so much and did nothing to warn investors.
“They did a lot of deals with banks, and all of those banks, they’re all in this same boat,” Boyd lamented.
“All they’re trying to do is to make a quick buck, and that’s not a very good business model.”
Boyd said he doesn’t think Diamond Partners was aware of the $1-billion price tag on the Phoenix properties until after the money had been paid off.
Boyd has filed a lawsuit against Diamond Partners and the Phoenix company in federal court in Phoenix, alleging that Diamond Partners misled investors in order to make more money.
The lawsuit seeks to recover $2-billion in damages, plus interest, for Diamond Partners for allegedly making a false statement about the Phoenix investments.
Boyd is also suing the Phoenix business for failing to inform investors about the company, and Diamond, for failing “to inform investors that the Phoenix portfolio had been sold and was subsequently resold, in violation of its duty to disclose to the investors that such sale had taken place.”
Boyd says his daughter was the only investor in the Phoenix condo who made the investment decision to buy the Phoenix condos.
Boyd added that Diamond has also had a negative effect on the local economy, which has been negatively affected by the Phoenix development.
Boyd did not respond to CBC’s requests for comment from Diamond Partners or Jackson.
Diamond Partners declined to answer CBC’s questions about the lawsuit and the case.
Boyd called the lawsuit “absolutely baseless.”
Boyd also said he believes the lawsuit was a publicity stunt by Diamond Partners to get publicity for Jackson, who was being sued by Boyd’s ex-wife.
“Jackson’s a fraud, and I think they have a lot to answer for,” Boyd wrote in a message to CBC.
Boyd’s lawsuit also includes a claim that Diamond is responsible for a $600,000 loss to Boyd’s former company, Phoenix-Crestwood Properties, when the Phoenix real estate market crashed. “
This is a very bad company and a bad company has got to go to jail.”
Boyd’s lawsuit also includes a claim that Diamond is responsible for a $600,000 loss to Boyd’s former company, Phoenix-Crestwood Properties, when the Phoenix real estate market crashed.
Boyd wants Diamond to pay Boyd’s attorney fees, and he also wants the company to provide a written statement from Boyd’s lawyer.
Boyd also wants to know if Diamond Partners has any responsibility for the Phoenix property sales.
Diamond and Jackson did not return CBC calls from CBC News.
Boyd claims Diamond has misled investors and investors should not take his business for granted.
“Diamond Partners is not responsible for any losses suffered by Jackson,” Boyd stated in a statement to CBC News, adding that he was the one who purchased the Phoenix residential property.
Boyd filed his lawsuit in federal Court in Phoenix in March 2017.
He is asking the court to recover a “significant amount” of money and other legal fees, including “an undisclosed amount” for Diamond’s role in Boyd’s death.
The suit also names Jackson as a defendant.
Boyd hired Boyd’s firm, Boyd’s Firm, in 2016.
Boyd was in the midst of a legal battle with his former employer, Diamond Partners LLC, which had also accused him of filing false claims in court documents.