2nd Circ. Won't Touch Plan In WexTrust Ponzi Suit

Law360, New York (November 17, 2010, 6:45 PM EST) -- A federal appeals court on Wednesday declined to dismantle a distribution plan set up to return some of the $250 million stolen through WexTrust Capital LLC's giant Ponzi scheme.

The U.S. Court of Appeals for the Second Circuit ruled that the U.S. District Court for the Southern District of New York was within its discretion when it decided to disburse the funds through a receiver rather than typical bankruptcy proceedings.

“Both the receiver and the district court made detailed findings, with the aid of experts, that...
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