Proposal reaching out to Judah's investors - KCBD NewsChannel 11 Lubbock

5/26/09

Proposal reaching out to Judah's investors

Posted:
Benny Judah Benny Judah
John Beakley (Photo courtesy mcleanllc.com) John Beakley (Photo courtesy mcleanllc.com)

By Katie Bauer  - bio | email

LUBBOCK, TX (KCBD) - There's a proposal reaching out to Benny Judah's former investors.

Judah is accused in court records of investor fraud with up to $40 million at risk. There are 240 investors, who are primarily from Lubbock. 

According to documents that NewsChannel 11 obtained Tuesday afternoon a local CPA tried to convince Judah's investors to join him instead of relying upon a federal court receivership trustee.

The trustee was appointed by a judge to freeze Judah's assets including some Lubbock businesses, like Las Brisas restaurant.

On Tuesday, Lubbock CPA John Beakley, with offices in Lubbock and Dallas, wrapped up a meeting with former Judah investors at the Holiday Inn.

We talked to Beakley and tried to attend the meeting Tuesday afternoon. Beakley politely asked us to leave the private meeting. 

Beakley recently sent letters to Benny Judah investors. Over the weekend, a man who would not give his name dropped off the letters to NewsChannel 11.

Here's a quick summary of Beakley's statement to the investors.  He says his only tie to Judah is through some of his clients, but he wants to start a new venture with Judah investors. Instead of having the receivership trustee sell all of Judah's businesses, Beakley wants to become the general partner.

Right now the plan is to liquidate Judah's assets and return as much money as possible to the investors, but trustees often don't get the full value returned in liquidation.

So Beakley wants to keep the businesses and run them for a profit and therefore preserving investor value. He says he would charge $275 per hour for his services, which he says is cheaper than a receiver.

NewsChannel 11 did contact the trustee Fernando Bustos. Bustos acknowledged he was aware of the Beakley documents but said he could not comment by order of the federal judge.

The meeting lasted more than two hours. We did talk to some investors afterwards, but no one wanted to go on camera. One man told us Tuesday's meeting was informational and a time to ask questions, but no definite decisions were made.

©2009 KCBD NewsChannel 11. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

get more -- Web Enhanced 5/26/09
Beakley Letters To Judah Investors
These are copies of letters from CPA John Beakley, obtained by NewsChannel 11.

 

 

 

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