Judge Ross's Order implementing his memorandum decision that Boham operated a Ponzi scheme from 1989 to 1995.
JUDGE HERB ROSS
UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ALASKA
605 West 4th Avenue, Room 138, Anchorage, AK 99501-2296
(Phone 907/271-2655 - Fax 907/271-2692 - Website: www.akb.uscourts.gov)
|In re RAEJEAN BONHAM, aka Jean Bonham, aka Jeannie Bonham, dba World Plus; WORLD PLUS, INC., an Alaska corporation; and ATLANTIC PACIFIC FUNDING CORP., a Nevada corporation,
|Case No. F95-00897-HAR
In Chapter 7
|In re BONHAM RECOVERY ACTIONS, a proceeding to jointly administer certain pre-trial issues in numerous related adversary proceedings.||ADV PROC NO F95-00897-168-HAR
(BANCAP No. 96-4281)
ORDER DETERMINING THAT THE TRUSTEE HAS ESTABLISHED THAT DEBTORS OPERATED A PONZI SCHEME FROM 1989
Pursuant to the Memorandum Decision Determining That the Trustee Has Established That Debtors Operated a Ponzi Scheme From 1989, filed April 7, 2000.
IT IS ORDERED that,
1. ESTABLISHMENT OF FACT THAT PONZI SCHEME EXISTED- The plaintiff-trustee has established, in all the pending individual adversary proceedings being administered in this lead proceeding where he is seeking relief for a fraudulent transfer regarding debtors investment contracts, all the material facts necessary to prove that debtors operated a Ponzi scheme from at least December 19, 1989, until December 19, 1995. For this purpose, a "Ponzi scheme" is one as described by the 9th Circuit Court of Appeals as:
. . . an arrangement whereby an enterprise makes payments to investors from the proceeds of a later investment rather than from profits of the underlying business venture, as the investors expected. The fraud consists of transferring proceeds received from the new investors to previous investors, thereby giving other investors the impression that a legitimate profit making business opportunity exists, where in fact no such opportunity exists.
The trustee, as plaintiff in the individual adversary proceedings being administered in this lead proceeding, shall not be required to prove the existence of a Ponzi scheme from December 19, 1989, at trial or any other pre-trial proceeding.
2. SERVICE; NON-FINAL ORDER- The trustee shall promptly serve a copy of this order and the memorandum decision on any defendants who have joined in the opposition to the trustees motion to establish that a Ponzi scheme exists. He need not serve any party who has not specifically joined in. This is a non-final order.
Dated: April 7, 2000
/s/ HERBERT A. ROSS
U.S. Bankruptcy Judge
Cabot Christianson, Esq., for Trustee
Larry D. Compton, Trustee
John Burns, Esq., for Joint Defense Committee
Rebecca Copeland, Esq., for Joint Defense Committee
Brad E. Ambarian, Esq., for s
Grant E. Courtney, Esq., for s
Ronald Goss, Esq., for s
Pamela Scott, Esq., for Kenneth Wooten,
Shulkin Hutton, for s
Janet Stafford, Adversary Proceeding Manager
Maia Weber, Deputy Clerk, Fairbanks
Back to Unofficial World Plus Home Page