ALBUQUERQUE, N.M. (AP) — The lawyer credited with giving Albuquerque real estate executive and admitted Ponzi schemer Doug Vaughan the idea for raising cash through promissory notes has reached a settlement in the case.
The Albuquerque Journal reports (http://bit.ly/xQJqN3 ) Tuesday that Sylvain Segal has agreed to have his professional liability insurance carrier pay $525,000 to the trustee in the bankruptcy case of Vaughan Company Realtors. The trustee is trying to recoup cash to pay victims.
In the settlement agreement, Segal denies any knowledge or liability in the Ponzi scheme that scammed about 600 investors out of $75 million. The scheme was based on Vaughan giving high interest promissory notes to investors in exchange for loans.
Vaughan pleaded guilty in December to charges in the case and faces 10 to 12 years in prison.