More Sanctions Ordered in Alleged Neb. Ponzi Scheme

Posted 7 months ago

By Associated Press

ponzi-schemes(AP) — A federal judge has ordered the people behind an alleged Ponzi scheme that cost investors about $4.7 million to pay roughly $10 million in penalties.

U.S. District Judge Laurie Smith Camp imposed the penalties against Elite Management Holdings, MJM Enterprises and two individuals who ran them: Michael Kratville and Jonathan Arrington.

The penalties are part of a 2011 lawsuit filed by the federal Commodity Futures Trading Commission.

The commission says investors lost $3 million in participants’ funds and more than $1.5 million in investments was misappropriate. The companies involved closed in 2007.

Kratville and Arrington are both facing federal criminal charges related to the case.