Now investors are complaining that the securities agency, the court, and the receiver are moving too slowly and not getting money back to investors. Through March 31, receiver Donell had taken in $2.6 million, spent $409,000 for lawyers, forensic accountants, and the like, leaving $2.2 million. That’s not much out of a total of $30 million, but tracing and recovering scam money is a tedious process. And there is always the big question: can either La Madrid or Lopez actually pay? Has the money vanished because of putrid investing — or is it reposing elsewhere? Donell may not have recovered much money because it is gone.
“I don’t know what these legal people do,” says San Diegan Ron Nieraeth. “The receiver has $2.2 million. Why can’t he start distributing it, even if it’s only 20 cents on the dollar?” Donell says much depends on funds due from Lopez. Claims processing will have to wait until the Lopez criminal trial is over. “There will be no initial distribution [of money to investors] before six months at the very earliest,” says Donell.
“I can’t believe the courts have taken so long to do something about it,” says Diana O’Grady of Menifee in southwest Riverside County. “They are as bad as Beau is.” When she got in, “It sounded too good to be true. My husband [now deceased] said to be careful, but I needed the monthly income.”
That’s an old and sad San Diego story.
Listen to Don Bauder discuss this further on Reader Radio.