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Bankruptcy Plan to Repay Ponzi Scheme Victims Wins Court Approval

May 27, 2021, 8:50 PM

Victims of Kenneth Casey’s multimillion dollar Ponzi scheme are a step closer to getting some of their money back after a bankruptcy court approved a Chapter 11 restructuring plan for the late real estate mogul’s companies.

The plan, approved Thursday, will pool the assets of the companies’ bankruptcy estates and appoint a trustee to distribute proceeds equally among all investors.

More than 2,000 investors in Casey’s bankrupt companies—Professional Financial Investors Inc. and Professional Investors Security Fund Inc.—voted in favor of the plan. Only five voted against it, the companies’ attorney, Ori Katz of Sheppard Mullin, said at a hearing ...

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