Lubbock area Ponzi scheme victims are protesting last week's sale of Benny Judah's accounts receivable.
Judah is serving a 25-year prison sentence. Meanwhile a court-appointed Receivership Trustee took possession of Judah's assets and has been selling them. Proceeds will go toward partially reimbursing his 250 or so victims.
The sale of accounts receivable worth a little less than $3 million were auctioned off for $30,001.
Five copies of the same letter were sent to U.S. District Judge Sam Cummings from the investors. The letter accuses the Receiver of starting the auction with a lowball offer.
"It is my opinion that these assets ... were not sold in a manner in the best interest of the investors," the letter says.
It continues, "I hold this court ultimately responsible for the final decisions made to satisfy the loss of these investors."
The five copies of the same letter were signed by Thressa Harp, Bill and Movelda Harp, Tim and Edwina Pettyjohn, Morris and Bonnie Tyler and Barry Weaver.
The Receiver, Fernando Bustos, responded Thursday in court records. He said, "Approximately $2 million of the approximately $3 million in auction assets consisted of judgments against former Excel Lease Fund lessees. In Texas, judgment debt typically sells for between one to three cents per face dollar valuation."
Bustos says the rest was "very distressed commercial paper" which he was unable to sell on the CMAX nationwide auction site.
Bustos also says prior to last weeks' auction, "the Receiver also published notice of the auction for 4 consecutive weeks with the Idalou Beacon newspaper, a newspaper of general circulation in Lubbock County."
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