Judah case, new allegations of illegal debt collection - KCBD NewsChannel 11 Lubbock

Judah case, new allegations of illegal debt collection

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.

Copyright 2010 KCBD. All rights reserved.

  • Local News on KCBD.comNewsMore>>

  • Manhunt underway for gunman in Maryland office park shooting

    Manhunt underway for gunman in Maryland office park shooting

    Wednesday, October 18 2017 10:51 AM EDT2017-10-18 14:51:04 GMT
    Wednesday, October 18 2017 4:14 PM EDT2017-10-18 20:14:43 GMT

    A sheriff's office in northeastern Maryland says it is on the scene of a shooting at an office park.

    A sheriff's office in northeastern Maryland says it is on the scene of a shooting at an office park.

  • Trump gives more mixed signals in bipartisan health deal

    Trump gives more mixed signals in bipartisan health deal

    Wednesday, October 18 2017 4:01 AM EDT2017-10-18 08:01:13 GMT
    Wednesday, October 18 2017 4:13 PM EDT2017-10-18 20:13:17 GMT

    Under the lawmakers' agreement, the payments would continue for two years while states were given more leeway to let insurers sidestep some coverage requirements imposed by President Barack Obama's health care law.

    Under the lawmakers' agreement, the payments would continue for two years while states were given more leeway to let insurers sidestep some coverage requirements imposed by President Barack Obama's health care law.

  • Collins: Trump should back effort to resume health subsidy

    Collins: Trump should back effort to resume health subsidy

    Monday, October 16 2017 3:47 AM EDT2017-10-16 07:47:39 GMT
    Wednesday, October 18 2017 4:13 PM EDT2017-10-18 20:13:09 GMT

    In his decision last week, Trump derided the $7 billion in subsidies as bailouts to insurers and indicated he was trying to pressure Democrats into negotiating an Obamacare repeal.

    In his decision last week, Trump derided the $7 billion in subsidies as bailouts to insurers and indicated he was trying to pressure Democrats into negotiating an Obamacare repeal.

Powered by Frankly