07 May Barry Bekkedam Accused of Securities Fraud in Connection with Scott Rothstein’s Ponzi Scheme
Barry R. Bekkedam, the former owner, Chairman, and CEO of Ballamor Capital Management, LLC, is accused of committing securities fraud by the Securities and Exchange Commission (“SEC”).
From April through October 2009, Bekkedam encouraged his clients and others to invest approximately $100 million in a fund that purportedly purchased lawsuit settlements from now-convicted Ponzi-schemer Scott Rothstein, according to a complaint filed by the SEC.
The Rothstein Ponzi-scheme involved the sale of fake legal settlements to investors that offered a return of 15% or more.
In early 2009, Bekkedam met George Levin, a Rothstein investor who had been raising capital from investors to purchase settlements from Rothstein since 2007, according to the SEC. In April 2009, Levin and Bekkedam formed a private fund called Banyon Income Fund, LP to enable Bekkedam to raise funds from clients and others to be invested exclusively in Rothstein’s settlements.
When soliciting his clients and other prospective investors to invest in the Banyon Fund, Bekkedam made material misrepresentations and omissions regarding the level of due diligence he and Ballamor had performed, including their access to information confirming the existence of the settlement funds, the authenticity of Rothstein’s investment program, and the overall safety of investing in the Rothstein settlements, according to the complaint.
When the Rothstein scheme collapsed, Banyon Fund investors had received approximately $2 million in interest payments and had lost approximately $100 million of their principal investments to the Ponzi scheme, according to the SEC.
The Peiffer securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with Barry Bekkedam, Ballamor Capital Management, and the Banyon Income Fund, LP. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they may have lost money as a result of the alleged fraud perpetrated by Barry Bekkedam and Ballamor Capital Management may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.
