A federal judge has ruled that investors who lost money in a fraud scheme will receive most of their money back.
The Connecticut Post reports (http://bit.ly/1wMS3yW ) that John J. Carney, court-appointed receiver for the estate of Michael Kenwood Capital Management in Stamford and related entities, says Judge Janet Bond Arterton in U.S. District Court in Bridgeport approved his proposed distribution plan. He is authorized to make initial payments to claimants of about $264 million.
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Carney says the initial distribution will pay general creditors 82 percent of what they are owed and they'll receive additional distributions totaling 92 percent of allowed claims.
The hedge funds of the Michael Kenwood Group were operated by Francisco Illarramendi who ran unregistered hedge funds out of Stamford. He pleaded guilty in 2011 to fraud and conspiracy to obstruct justice.
Information from: Connecticut Post, http://www.connpost.com