Investors Lose Challenge to Receiver’s Fees in Ponzi Suit

Investors who took issue with a court-appointed receiver’s payment for work on an SEC Ponzi scheme suit lost their challenge to a district court order ending the case, after the Tenth Circuit affirmed the judgment Wednesday.

The intervening investors, who were among the approximately 225 investors who collectively lost more than $200 million to the scheme, argued that the receiver should have done a cost-benefit analysis before the suit’s end. But the district court didn’t abuse its discretion when it closed the case without receiving one, the U.S. Court of Appeals for the Tenth Circuit’s unpublished opinion said.

Intervenors Eric ...