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."
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...