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Sunday, July 14, 2024 | Back issues
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$328 Million Judgment in Credit Bancorp Ponzi

MANHATTAN (CN) - A federal judge issued final judgment of $328.6 million against Credit Bancorp and three of its top executives for a Ponzi scheme.

Final judgment in the SEC complaint was issued Friday by U.S. District Judge Robert Sweet.

The SEC sued Credit Bancorp, its chairman and CEO Richard Blech, 48; Thomas Rittweger, 54, managing director of the company's North American operations; and Douglas Brandon, 70, a Lexington, Ky. Attorney for the firm.

Blech pleaded guilty in 2003 before trial. Rittweger and Brandon were convicted that of defrauding clients of $210 million.

Sweet ordered the defendants to disgorge $218.1 million in profits and $110.6 million in interest, for a total of $328,664,737.30.

Blech was released from federal prison in August 2007. Rittweger and Brandon are scheduled for released in November 2015, according to court records.

The court-appointed receiver has distributed $212 million of the disgorged money so far, the SEC said in a statement.

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