Posted at: 12/03/2012 8:12 AM
By: The Associated Press
Photo: Doug Vaughn
ALBUQUERQUE, N.M. (AP) - A bankruptcy trustee seeking to regain funds to help repay people who were swindled out of millions of dollars by a New Mexico real estate executive is fighting a legal maneuver to oust her from her court-appointed post.
The Albuquerque Journal reports that a request to convert the Vaughan Company Realtors bankruptcy case from a Chapter 11 business reorganization to a Chapter 7 liquidation would effectively lead to Judith Wagner's removal as trustee in charge of the company's bankruptcy estate.
Investors thought they were loaning Doug Vaughan money for real estate, but he was using it to pay promised profits to earlier investors and support his lavish lifestyle.
The scheme collapsed in February 2010. Vaughan was sentenced 12 years in prison after pleading guilty to fraud charges.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)