Judah assets worth nearly $3 million sell for almost nothing - KCBD NewsChannel 11 Lubbock

Judah assets worth nearly $3 million sell for almost nothing

LUBBOCK, TX (KCBD) -

Once again, those who put their trust in former Lubbock businessman Benny Judah have reason to be disappointed.

Judah is serving a 25-year prison sentence for a Ponzi scheme involving roughly 250 investors, mostly from the Lubbock area. He's accused of cheating them out of roughly $40 million.

On Thursday, $2.7 million worth of accounts receivable and court judgments once owned by Judah were auctioned at the Lubbock County courthouse. The proceeds are to help partially reimburse his victims, however, the auction netted only $30,001.

The winning bidder was Scarlet Matador Fund LLC, which specializes in buying, rehabilitating, and selling apartment complexes.

Before Judah was arrested, a federal judge seized everything he owned and put the property into the hands of a Receivership Trustee. The Receiver believes he'll be able to make another small payment to Judah's victims later this year. The Receiver believes his job will be done by early 2012.

Earlier this month court records said, "The Receiver recovered 26% of the victims' principal investment. The final distribution will add to this recovery."

Those same court records say the victims of a Ponzi scheme typically only get 5% of their money back.

Copyright 2011 KCBD NewsChannel 11

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