Unlicensed securities broker pleads gulty to charges in $50M Ponzi scheme

A Lubbock businessman pleaded guilty Thursday to two charges related to his bilking $50 million from investors in a Ponzi scheme.
DEC 29, 2009
A Lubbock businessman pleaded guilty Thursday to two charges related to his bilking $50 million from investors in a Ponzi scheme. Benny Lee Judah pleaded guilty in federal court in Lubbock to one count each of money laundering and sale and delivery after sale of unregistered securities. Prosecutors say the Ponzi scheme involved the swindling of about 250 investors. Judah's attorney, Robert N. Nebb, declined to comment. Judah faces up to 20 years in prison on the money laundering count and five years on the securities count. Each count carries a $250,000 fine. A statement issued by the U.S. Attorney's Office in Dallas says he also must pay $48.4 million in restitution. No sentencing date has been set. Judah, who owned restaurants and developed land and real estate, was charged by a criminal information document Tuesday. It alleged that he devised a scheme that swindled investors by promising them 10 percent return on investments in Excel Lease Fund Inc. between October 2005 and April 2009. In April, the U.S. Securities and Exchange Commission filed a civil fraud complaint against Judah, which led to a judge freezing his assets and placing his business operations in receivership. The SEC complaint accused Judah of selling $40 million in unregistered securities between January 2006 and March and misusing the proceeds. Judah acknowledged no wrongdoing in consent agreements. Judah, an accountant, is not a licensed securities broker, court documents show. He has faced civil allegations before. In 2001, Judah was ordered to pay $50,000 in civil penalties after the SEC filed a complaint alleging he and his company, Excel Leasing, sold $32 million in unregistered securities to investors nationwide between 1987 and 2000. Judah did not admit to or deny the accusations in settling this case.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.