Judge OKs $110 Million Distribution Plan in Securities Scheme

A court-appointed officer’s plan to distribute more than $110 million to investors who were defrauded in a scheme to fund a “merchant cash advance” firm was approved by a federal judge in a Monday order.

Judge Rodolfo A. Ruiz II of the US District Court for the Southern District of Florida approved the receiver’s recommendations and authorized him to distribute funds on a pro rata basis. The court also instructed the receiver to hold back roughly $60 million due to potential appeals and anticipated costs of administering the receivership estate.

The US Securities and Exchange Commission in 2020 sued ...