$10 Million Judgment In Investment Scheme

New developments in an investment scheme first exposed by WOWT6 Fact Finders several years ago. A federal judge in Omaha imposed more than $10 million in sanctions.

Elite Management Holdings,MJM Enterprises and two top company executives, John Arrington and Michael Kratville have been ordered to pay $4.3 million in restitution to about 130 investors.

An additional $5.7 million in civil penalties were also imposed by Judge Laurie Smith Camp. The judgment order stated that Arrington, Elite and MJM defrauded investors who thought their money would be going into foreign currency contracts.

Instead the order reveals about $700,000 of investors money went to country club memberships and trips to Europe. The judge’s findings also revealed an email from Kratville, an Omaha attorney, that implies an attempt to cover-up investor losses and protect his law license.

One investor, Dan Uhing of Omaha, tells Fact Finders he hopes the federal judgment will lead to a forensic accounting of the defendants and their companies to see if any money remains.

Uhing lost $250,000 and his mother $200,000 in retirement money. He hopes the civil order will add to pending criminal action.

WOWT6 hasn't be able to reach the defendants for comment. Arrington's attorney James Martin Davis who represents him in the criminal case maintains he didn't break any federal laws.

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