LUBBOCK, TX (KCBD) - Dozens of Lubbockites still stand to lose millions of dollars if the civil charges against a local businessman are true. NewsChannel 11 revisits the case because there are striking similarities between the allegations Benny Judah faces now and what he was accused of doing back in 2001.
Eight years ago the Securities and Exchange Commission accused Judah of defrauding his investors and now the SEC is investigating him for doing the exact same thing again.
On January 31, 2001 the SEC filed suit against Lubbock businessman Benny Judah and his business, Excel Lease Fund Inc. for offering and selling $32 million worth of securities that did not exist. The first suit claims from 1987 to 2000 Judah funded Excel by selling millions of promissory notes to investors across the country and some of the money was used to fund some of his other holdings. Judah, without admitting or denying allegations of the complaint, was ordered to pay $50,000 in civil penalties.
Flash forward eight years and just last week the SEC filed another suit against Judah. This time the SEC alleges Judah and Excel issued $40 million worth of fraudulent securities held by about 240 people mostly from the Lubbock area. Authorities say Judah engaged in a fraudulent offering of debenture securities, telling folks they were investing in one thing, when in fact they were funding others.
According to SEC documents, Judah violated the anti-fraud provisions of Section 17A of the Securities Act of 1933 both in 2001 and 2009. According to the federal court docket there are no criminal charges in relation to this most recent lawsuit. These are civil allegations only.
NewsChannel 11 will continue to follow this story and bring you the latest as it develops.
Website available for Judah investors
Lubbock businessman Benny Judah is accused of investor fraud and 240 investors stand to lose money. A website to help those investors is now up and running.