CNC Trading Company, Inc.
On September 24, 1996, the SEC filed a civil action against CNC Trading Company, its principals, and other defendants in connection with a Ponzi scheme. The SEC alleged that the defendants fraudulently raised approximately $70 million from more than 2,000 investors, purportedly to purchase food products and then resell them to food distributors or retailers. For more information about the SEC's action, you can read Litigation Release No. 15085 (Sept. 27, 1996).
The SEC collected $632,484 from the defendants and paid that money to the Court for distribution to CNC investors. On April 28, 2000, the Court appointed Justin P. Klein, Esq., as Receiver to prepare a plan of distribution of the recovered funds. On February 22, 2001, Mr. Klein submitted to the Court a plan to distribute $615,000 to 880 CNC investors who had submitted claim forms before February 16, 2001. As these claimants lost more than $19 million in the Ponzi scheme, the plan of distribution called for investors to be reimbursed at approximately three cents on the dollar. Under the plan, the Receiver also held $17,848 of the recovered funds in reserve for claims of CNC investors made in the future.
The Court approved the plan of distribution on March 20, 2001. Reimbursements were sent to all previously qualified claimants in accordance with the plan. Twenty-five additional CNC investors submitted new claims during the claim period and reimbursements were made for losses incurred by the additional claimants. The Court also approved reimbursements to two CNC investors whose claim forms were received just after the close of the claim period.
The Receiver filed a Final Accounting of Investor Funds with the Court on October 17, 2001. The Court approved the Final Accounting on November 20, 2001. No further claims can be considered.
If you have questions, you can contact the Receiver at:
Justin P. Klein, Esq.