Brokers In $23M Cobalt Scam Ordered To Pay Restitution

Law360, New York (October 3, 2011, 11:17 PM EDT) -- A New York federal judge on Friday ordered four brokers to pay back commissions they allegedly earned from their involvement in a $23 million investment scam run by Cobalt Capital Funding LLC, but declined to put them on the hook for other claims.

U.S. District Judge Kimba M. Wood granted summary judgment against Arthur Landsman, Michael Eisemann, Susan Kagan and John Dundon, ordering them to pay disgorgement of their commissions from unregistered securities to a court-appointed receiver acting on behalf of investors.

But the judge declined...
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