Judah victims to get more money, still stand to lose millions - KCBD NewsChannel 11 Lubbock

Lubbock area Judah victims to get more money, still stand to lose millions

By James Clark - email

LUBBOCK, TX (KCBD) - Court records say Lubbock area victims of Benny Judah's Ponzi scheme will, for the second time, get a portion of their money back.  A court-appointed Receivership Trustee asked U.S. District Judge Sam Cummings on Tuesday for permission to send out a second payment to the victims.  Cummings approved.

The second payment is worth $3 million, and court records say, "This second interim distribution is largely derived from an auction sale of most of the estate's real estate holdings and the sale of the assets of Harrigan's Restaurants, LLP."

Back in September, the receiver sent more than $4 million and $1.9 million worth of PlainsCapital Corporation stock to the victims as a partial repayment of their losses.  

Court records say after this newest payment, "the Receiver will have paid to the investor victims twenty-six percent (26%) of their losses so far."  Typically victims of a Ponzi scheme get less than 10% of their money back. 

More than 250 investors, mostly from Lubbock, had put up $35,903,796.73 with Judah and his various companies.  Some of the companies were well known institutions in the community such as Zoo Kini's and Las Brisas restaurants. 

In April of 2009, at the request of federal regulators, the judge seized Judah's assets and put them into the hands of the Receiver to be sold.  Judah has since pleaded guilty and is currently serving a 25 year prison sentence. 

Copyright 2011 KCBD NewsChannel 11.  All rights reserved. 

  • Local News on KCBD.comNewsMore>>

  • Trump defends Confederate statues, berates his critics

    Trump defends Confederate statues, berates his critics

    Friday, August 18 2017 4:20 AM EDT2017-08-18 08:20:34 GMT
    Friday, August 18 2017 10:31 AM EDT2017-08-18 14:31:02 GMT

    Under fire over competence and moral leadership, Trump defends Confederate statues and attacks his critics.

    Under fire over competence and moral leadership, Trump defends Confederate statues and attacks his critics.

  • Spain manhunt deepens as Barcelona insists 'I am not afraid'

    Spain manhunt deepens as Barcelona insists 'I am not afraid'

    Friday, August 18 2017 2:30 AM EDT2017-08-18 06:30:03 GMT
    Friday, August 18 2017 10:30 AM EDT2017-08-18 14:30:52 GMT

    Spanish police kill five suspects connected to the Barcelona van attack that killed 13 people, as the manhunt intensified for the perpetrators of Europe's latest rampage claimed by the Islamic State group.

    Spanish police kill five suspects connected to the Barcelona van attack that killed 13 people, as the manhunt intensified for the perpetrators of Europe's latest rampage claimed by the Islamic State group.

  • After Charlottesville, colleges brace for more hate attacks

    After Charlottesville, colleges brace for more hate attacks

    Friday, August 18 2017 4:30 AM EDT2017-08-18 08:30:21 GMT
    Friday, August 18 2017 10:30 AM EDT2017-08-18 14:30:40 GMT

    Colleges are bracing for more violence on campus after a deadly attack at a white nationalist rally in Virginia became the latest example of hatred migrating from the internet to the streets.

    Colleges are bracing for more violence on campus after a deadly attack at a white nationalist rally in Virginia became the latest example of hatred migrating from the internet to the streets.

Powered by Frankly