Judge Backs Injunction For Alleged $23M Scam Conspirators

A Texas federal judge has granted a preliminary injunction barring several alleged conspirators in a $23 million phony mortgage investment scheme from violating a receivership order against purported partners in the scheme, finding that the move was necessary to prevent further investor funds from being siphoned off.

“The evidence presented at the preliminary injunction hearing confirmed that the expansion of the receivership order to include the Wammel defendants was necessary to prevent the further dissipation of assets and to protect the receivership estate,” Timothy E. Hudson, an attorney for the receiver, told Law360 in an email. “The receiver will continue her efforts to locate, preserve and liquidate receivership assets for the benefit of the aggrieved investors.”

The receiver is represented by Timothy E. Hudson, Katharine Battaia Clark, Bill Banowsky and Mackenzie S. Wallace of Thompson & Knight LLP.

READ: Judge Backs Injunction For Alleged $23M Scam Conspirators