Creditors In $485M Ponzi Scheme Want Broker Fees Returned

Law360, Dallas (November 19, 2012, 5:02 PM EST) -- A Texas federal judge on Monday said he's “reluctant” to award summary judgment to creditors for defunct Provident Royalties LLC who want to recoup about $13.1 million in fees from 15 broker-dealers who sold securities as part of the company's alleged $485 million Ponzi scheme.

U.S. District Judge Royal Furgeson said he’s equally reluctant to grant summary judgment to the broker-dealers, who say the recovery claims are barred by U.S. Bankruptcy Code, but would review the filings and arguments further before issuing a ruling.

The PR...
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