Legal news for Florida business litigation lawyers.
South Dakota federal judge issues $42 million default judgment in Ponzi scheme.
West Palm Beach, FL–On Thursday, a South Dakota federal court judge issued a $42 million default judgment in favor of 199 plaintiffs. The lawsuit was filed against, Jeff Lowrence, the currency trader who has failed to respond to allegations of stealing from 199 people in a highly orchestrated Ponzi scheme involving his New Zealand based First Capital Sanvings and Loan. The suit accuses Lowrance and his savings and loan of fraud, breach of contract, and fraudulent mismanagement of offshore foreign currency exchange accounts as reported by the Fort Worth Star-Telegram.
Federal Judge Karen Schreier entered the verbal ruling and stated she would enter a written ruling after Lowrance failed to appear for the afternoon hearing. Lowrance is believed to have left the country and may be in Panama. The currency trader has not responded in court to any of the allegations after he was served with court documents pertaining to the lawsuit in Houston in March of this year. Business litigation lawyers, for the 199 plaintiffs, filed the legal action accusing Lowrence of using money for personal gain and other business ventures. Court documents filed by the civil trial attorneys also claim the finance man transferred money from one client’s account to another to maintain the appearance of profits, failed to make live market trades, and numerous other fraud allegations. Other named defendants in the litigation by plaintiff’s attorneys are Mentor Investing Inc., Swiss Providence, Logos Publishing Group, Marketwise Trading, First Capital Savings & Loan Ltd., and USA Tomorrow, Lowrance’s alternative newspaper.
Legal news reports for Florida business litigation lawyers.