By James Clark - email
LUBBOCK, TX (KCBD) - A well-known Lubbock company is no longer entangled in the Benny Judah Ponzi scheme. A federal judge on Monday approved a mediation agreement with August Foods Ltd, also known as August's Pies.
Judah and his companies were half-owners in August Foods, and like all of Judah's assets his half of the company was seized in April 2009 amid allegations that he cheated investors.
Part owner Tim Moeller agrees to buy out Judah's stake in August Pies for $44,000.00 and Moeller agrees to pay $26,800 for debt owed by August's Pies to one of Judah's holding companies.
While court records are complimentary of August's Pies for their quality product, there is no such compliment for the company's financial situation. If the full value of the debt were included in August's bottom line then the company would have a negative worth.
Court records say, "The Company's ... book value at the date of valuation was -$253,000."
Court records also say, "If long-term debt of about $275,000 is ignored, $22,000 would reflect the net asset value of the Company." Most of the debt is owed to Judah and in turn Judah's victims.
Judah has pleaded guilty and is serving a 25 year prison sentence. Judah's assets are being sold off to partially repay investors, mostly from Lubbock, who still stand to lose roughly 75% of the $36 million they invested with him.
Copyright 2011 KCBD NewsChannel 11. All rights reserved.