Pearlman Victims To Get 4% Of Losses Under Ch. 11 Plan

Law360, New York (June 14, 2013, 7:49 PM EDT) -- The court-appointed trustee in the bankruptcy case of boy-band impresario Lou Pearlman filed a Chapter 11 liquidation plan Wednesday that would pay victims of Pearlman's $300 million Ponzi scheme 4 percent of their claims in the next few months if it is approved.

Trustee Soneet R. Kapila of Kapila & Company told Law360 on Friday that while the recovery may seem small, he considers it a success from the standpoint that it previously looked as though the mostly “mom and pop” victims wouldn't get back any...
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