SEC Wins $328M Ponzi Judgment Against Credit Bancorp

Law360, New York (February 3, 2012, 9:15 PM EST) -- A New York federal judge on Friday ordered Credit Bancorp Ltd. to pay $328 million in disgorgement and prejudgment interest in the U.S. Securities and Exchange Commission's case over a Ponzi scheme that brought down the bank.

The penalty assessed by U.S. District Judge Robert W. Sweet — $218,068,241 in disgorgement of profits made in the scheme and $110,596,496 in prejudgment interest — comes on top of $56 million already assessed against Credit Bancorp's CEO Richard J. Blech and former executive Thomas Rittweger.

Blech, who also...
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Case Information

Case Title

S.E.C. v. Credit Bancorp, Ltd., et al


Case Number

1:99-cv-11395

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

Robert W. Sweet

Date Filed

November 16, 1999

Government Agencies

UK Financial Services

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