Articles Posted in Clawback

(December 17) Two former Zeek Rewards affiliates are mounting the first plausible legal challenge to the receiver in the case, hoping to avoid the receiver’s Ponzi clawback action that would force them to pay back their profits. Former affiliates Trudy Gilmond and Kellie King have engaged Ira Sorkin, a notable former federal prosecutor in Manhattan…

(December 7) An auction of the corporate vehicles, furniture and other assets belonging to disgraced commodity trader Russell Wasendorf of Cedar Falls, Iowa netted $1M. Although considered successful by the court-appointed receiver and the bankruptcy trustee, it’s half of one percent of the $190M shortfall still owed to 25,000 investors of Wasendorf’s Peregrine Financial Group,…

FOR IMMEDIATE RELEASE “ZEEK REWARDS” PONZI SCHEME WILL BREAK NEW GROUND IN CLAWBACK LITIGATION The collapse of the online Ponzi scheme called “Zeek Rewards” this past August threatens to break new ground in the area of Ponzi clawback litigation. With an estimated 800,000 victims identified, another 100,000 former affiliates are being targeted by the receiver…

(December 3) Judith A. Wagner, the trustee who filed 161 controversial clawback complaints in the ongoing Vaughan Realtors Ponzi / bankruptcy case in Albuquerque, is fighting a legal tactic that would remove her. In February 2010 it was found that real estate executive Doug Vaughan had defrauded 600 victims out of $75M. He’s been sentenced…

(November 14) A U.S. District Court Judge in Austin, Texas has ruled that the officers of a corporation may have their bonuses, stock options and stock profits “clawed back” (ordered repaid) when their corporation violated securities laws — even when those officers were not directly involved in the violation. The ruling is consistent with previous…

Forbes Magazine recently reported that many of the so called “net winners” in the ZeekRewards (“Zeek”) Ponzi Scheme will almost certainly be targeted for “clawback” lawsuits seeking the return on their profits. Our firm represents good faith investors who have been sued by trustees and receivers in clawback actions. Our senior attorney at Banks Law,…

Investors are reporting to our office that they continue to receive calls and correspondence from the Meridian trustee, Mark Calvert, and his law firm K&L Gates, pressuring investors to pay his settlement demands before June 12. Our clients report that Mr. Calvert continues to refuse to settle for anything less than 100% of the interest…

For Immediate Release Meridian Mortgage investors were unpleasantly surprised to receive a letter from the K&L Gates law firm demanding that they repay interest and dividends they may have received from their Meridian Mortgage investments (Seattle Times on the web 29 April 2012). A Banks Law Office client received such a letter, which threatened to…

Innocent Meridian Mortgage investors were unpleasantly surprised to receive a letter from the K&L Gates law firm demanding that they repay interest and dividends they may have received from their Meridian investments as long ago as 2004. One of our clients received such a letter, which threatened to sue him for the amount of his…