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. 

Powered by Frankly