Ponzi Scheme Distribution Plans: Rising Tide Method Upheld by Seventh Circuit

One of the most hotly contested issues in Ponzi scheme cases is how to distribute to the defrauded investors the funds that are ultimately recovered. It often seems that no two investors are created equal, so their interests are pitted against one another in the pursuit of "equity." Designing...

Six Years Later, Boy Band Founder's Ponzi Scheme Victims Set For 4% Payout

More than six years after his $300 million Ponzi scheme collapsed, victims of former boy band mogul Lou Pearlman's scheme are set to receive an initial payout of just four cents on the dollar. In a distribution plan (the "Plan") filed by the bankruptcy trustee appointed to recover funds...