Judge Signs Off On $1.2M Deal With Securities Fraud Conduits

Law360, New York (February 7, 2012, 7:43 PM EST) -- A Texas federal judge on Tuesday approved a $1.2 million settlement between the receiver of the now-defunct Kaleta Capital Management Inc. and the owners of an investment firm that allegedly helped perpetrate a $10 million fraudulent securities offering, over the objections of certain investors.

U.S. District Judge Nancy F. Atlas overturned the objections of investors who had become victims of the scheme, finding that the proposed settlement was “sufficient, fair and necessary,” despite claims that it did not adequately compensate for losses suffered by the investors....
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