By James Clark - email
LUBBOCK, TX (KCBD) - Court records reveal new details in Benny Judah's Ponzi scheme. Judah is serving 25 years in prison for charges related to that scheme, which defrauded about 250 Lubbock area investors.
A court appointed Receivership Trustee says, just as recently as September, the victims received a "potentially fraudulent solicitation" by mail. The Receiver says it's common that investor victims are targeted by persons who seek to further victimize them with false promises of assistance in recovering their losses.
It's estimated the local investors stand to lose $38 million.
The Receiver also says he is trying to learn more about businesses that were co-owned by Judah, including National Travel Services, August Foods, and Retail Ready Foods.
Court records says "The Receiver has served subpoenas for books and records on National Travel Services in an attempt to value the assets of that entity."
Back in April of 2009 when Judah was first accused of running a Ponzi scheme, officials said he lost $5 million in day trading. Now the Receiver says it's more like $15 million.
And one of Judah's businesses, Excel Leasing Fund, is worth less than previously thought. "The Receiver made the decision to write down over two million dollars in accounts receivable which are uncollectible."
And Judah may have violated more laws than previously thought. "The Receiver became aware that Defendant Judah's operation of this business [Excel] violated several state and federal fair debt collection practice laws and fair credit reporting laws." The Receiver says all debt collection is now done legally.
The Receiver thinks most of his work on the Judah case will be done by the end of this year.
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