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Court-appointed receiver recovers $312 million

Court News     updated  2013/03/04 11:33


Hundreds of millions of dollars have been recovered so far in a massive North Carolina-based Ponzi scheme that authorities say attracted more than 1 million investors.

The case involves Rex Venture Group, which operated several online projects. The Securities and Exchange Commission froze the company's assets in August.

Court-appointed receiver Kenneth Bell has filed a document in federal court in Charlotte detailing his expenses. As of Dec. 31, Bell says he has recovered $312 million and has incurred $1.6 million in fees and services for the investigation.

The SEC says the company, operated by Paul Burks of Lexington, ran a $600 million Ponzi scam, where money from new investors is used to pay out old ones.

Burks is paying a $4 million penalty and cooperating with the SEC.

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