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Receiver Seeks Money from Ponzi Scam

ATLANTA (CN) - Puritan Securities sold securities for Coadum Capital Fund's $38 million Ponzi scheme, the court-appointed receiver claims in Federal Court.

The receiver for Coadum Advisers, Mansell Capital Partners, Coadum Capital Fund and related entities says Puritan, a broker-dealer, and its president Nathan Lapkin received fraudulent referral fees for finding new investors for Coadum.

The receiver says Puritan and Lapkin got at least $174,320 in fees, and he wants $159,779, after recovering some from a Puritan salesman.

"Referral frees were only to be paid to Puritan if and when investor accounts made profits," according to the complaint. "Coadum was never profitable and, as a Ponzi scheme, it was insolvent from its inception."

The receiver says the defendants should have known the Coadum offerings were bogus.

"For example, the presentation stated that Coadum 2 had a 'risk-less arbitrage investment strategy.' Defendants should have known there is no such thing as a 'risk-less' investment strategy."

Jennifer Snow of The Huddleston Firm represents the receiver.

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