Securities and Exchange Commission v. Khanna, et al., CV-09-1784-BEN and Commodity Futures Trading Commission and California Department of Corporations v. Khanna, et al., CV-09-1783-BEN, both U.S. District Court, Southern District of California
The MAK 1 defendants ran a $35-40 million foreign exchange Ponzi scheme operation. After appointment, we took over the remaining operations of the company, seized assets and traced financial transactions worldwide. We sought and received contempt orders from the district court when the defendants failed to produce the company’s complete books and records. The defendants had no remaining assets, but we identified and pursued “clawback claims” as to all investors who received profits and a small group of commissioned sales personnel, ultimately making five distributions to investors for a 27% recovery of their losses.