U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Benny L. Judah and Excel Lease Fund, Inc.

On April 21, 2009, the SEC obtained an asset freeze and the appointment of a Receiver against Benny L. Judah and his company, Excel Lease Fund, Inc., in connection with an alleged fraudulent securities offering. According to the complaint, Judah and Excel raised approximately $40 million from hundreds of investors through a high-yield debenture offering that started in January 2006. Among other things, the SEC alleged that Judah and Excel represented investors’ funds would be used to retire an earlier series of debentures and for certain other legitimate business purposes. In fact, the SEC alleged that Judah lost at least $5 million of the offering proceeds in undisclosed “day-trading” securities transactions. The SEC also alleged that Judah and Excel failed to disclose approximately $20 million in related-party loans to other companies Judah controlled and overstated Excel’s assets using approximately $15 million in fictitious lease contracts.

The Court appointed Fernando M. Bustos as Receiver to, among other things, marshal and preserve the assets of the defendants for an eventual distribution to harmed investors. For more information about the SEC’s action, you can read Litigation Release No. 21009 (Apr. 22, 2009).

On the same day, the Court entered agreed permanent injunctions against the defendants. The SEC’s monetary claims remain unresolved pending further litigation.

Investors who have questions about the Receivership should visit the Receiver's website.


Modified: 04/27/2009