There is good news for many of the victims bilked in a fraudulent liquor license investment scheme by former San Diego restaurateur Gina Champion-Cain.
The federal court overseeing the receivership of Champion-Cain and her various entities recently approved a settlement between court-appointed receiver Krista Frietag, Chicago Title, and a number of other victims.
“When combined with the receiver’s other recoveries, as well as settlements of other victims’ lawsuits against Chicago Title, it appears that most of the victims will recoup approximately 90% to 95% of their net losses, if not more,” said attorney Mark Cramer, chair of the class action practice group of Buchalter, which represented about 80 of the victims of Champion-Cain’s Ponzi scheme.
Noting there were roughly a dozen lawsuits filed against Chicago Title, Cramer pointed out: “In most cases involving Ponzi schemes, the victims are lucky to get pennies on the dollar. The recovery for the victims of Champion-Cain’s scheme is a remarkable result in an otherwise tragic situation.”
Cramer added almost all of the investment victims have reached settlements with Chicago Title. In addition, he said the court-appointed receiver has spent years marshaling the assets of Champion-Cain and her various entities. “The receiver’s job is to try to identify, locate, and safeguard what was left when the scheme collapsed,” Cramer said adding, “The receiver is trying to put Humpty Dumpty back…
