Provident Trustee, SEC Settle Ponzi Case For $2.4M

Law360, New York (July 21, 2011, 6:34 PM EDT) -- The U.S. Securities and Exchange Commission has reached a $2.4 million settlement with the receiver for defunct energy investment firm Provident Royalties LLC, which was accused of running a $485 million Ponzi scheme, according to court filings in Texas on Wednesday.

In a motion for partial final judgment, the SEC and receiver Dennis L. Roossien Jr. agreed to disgorgement of $260,000 from the company's broker-dealer Provident Asset Management LLC and of $2.16 million from entities run by Provident co-founder Joseph Blimline.

"The commission and the receiver...
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