ALBUQUERQUE, N.M. (AP ) — A federal bankruptcy judge has rejected an attempt to remove the trustee seeking clawbacks against investors in a Ponzi scheme that bilked hundreds of investors out of $75 million.
The Albuquerque Journal reports (http://bit.ly/Z441Ut ) that U.S. Bankruptcy Court Judge Robert Jacobvitz this week rejected a motion to convert the bankruptcy case of Vaughan Company Realtors from Chapter 11 to Chapter 7. The move that would have effectively removed Judith Wagner as trustee.
The motion to convert was seen as an attempt to short-circuit the roughly 100 so-called clawback lawsuits seeking repayment from investors who appear to have profited from the investment scheme run by former Albuquerque real estate executive Doug Vaughan, who is serving 12 years in prison.
The motion was filed by retired Albuquerque lawyer Julius Wollen, who is contesting allegations he made more than $400,000 in the scheme.