LUBBOCK, TX (KCBD) – Lubbock businessman Benny Judah could face more than 20 years in prison and owe more than $500,000 in fines if he is convicted of new criminal charges filed Tuesday.
It is a story NewsChannel 11 broke Tuesday at ten. Before now, Judah only faced a lawsuit from federal regulators.
Prosecutors say Judah was running a Ponzi scheme. They charged him with two felonies, money laundering and selling unregistered securities. The 15 page document filed in the Federal Clerk’s Office reveals Judah sent balance sheets, income and interest statements through the mail to his nearly 240 investors which gave them the impression of a successful business endeavor.
The documents indicate that at no point was Judah ever a licensed securities broker. He didn’t have certificates and was not registered with the SEC. The maximum penalty for money laundering is 20 years in prison and a fine of up to $500,000.
The unregistered securities charge has a maximum of five years in prison. At some point Judah will have to go before a federal judge or federal magistrate and plead guilty or not guilty. Either way there could be another hearing to determine if he will go to jail or stay out on bond.
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10/11/09Two quick updates on Benny Judah case
We have two quick updates on the Benny Judah case. He's the Lubbock man accused of making false statements to investors, causing them to lose up to $40 million dollars.