The SEC alleged that the defendants fraudulently raised more than several hundred million dollars, purportedly to purchase assignments of equipment leases and promissory notes.
On April 18, 1996, the Bankruptcy Court of the Northern District of New York appointed Richard C. Breeden as Trustee.
[1] Funds from the company were invested in such things as the Vernon Downs racetrack, gambling boats called the Speculator and the Gold Shore Casino, the Hotel Syracuse, a 70' yacht named Lady Kathleen, and Harold's Club casino in Reno, Nevada.
Patrick R Bennett's first criminal trial ended in jury deadlock on all fraud and money laundering allegations.
A criminal forfeiture order was also entered against Patrick R. Bennett in favor of the government based on the financial transactions underlying the money laundering allegations, funds never received personally by Patrick R. Bennett [8] At the conclusion of the second trial, the alleged 'ponzi' scheme counts were dismissed on motion by the government.