ALBUQUERQUE (KRQE) - A new lawsuit has been filed in the Doug Vaughan ponzi scheme against his former company's accountant who trustees said should have known what was going on and since she didn't blow the whistle she needs to pay up.
The suit claims that the accountant, Patti Maddox, should have known that Vaughan Company Realtor's financial information reflected that of a ponzi scheme.
The Doug Vaughan ponzi scheme bilked hundreds of investors out of more than $70-million dollars.
Maddox worked for VCR from 1993 to 2010 and was in charge of closing the monthly books and preparing year end balances. During that time VCR issued promissory notes to hundreds of investors, guaranteeing unusually high returns, saying the notes were secured by real estate and Vaughan's personal wealth.
The suit said Maddox should have known VCR only had a fraction of the revenue and real estate holdings needed to back the notes. It said she had access to financial information that revealed the promissory note program had tripled in just 5 years.
Investors, like Ronald Frank, his wife and mother-in-law invested nearly half a million dollars total and lost it all.
"I'm 61 we're retired, my wife is disabled and we depended on that income," Frank said.
Frank said if Maddox knew she should have said something and agreed with the suit, fied by the government-appointed trustee of VCR's bankruptcy estate. The suit does not say how much Maddox should have to pay or if she profited from the scheme.
Frank said if she has any money he doesn't' think he will see any of it.
"I don't think there will be a dime left after attorney fees and court fees," Frank said. "I don't think there will be a dime left."
Since Maddox worked for VCR, which was not solely owned by Vaughan, the suit states she had a legal obligation to tell other people in the company what was going on.
Vaughanpled guilty to wire and mail fraud back in December. As part of the deal he's looking at 12 years in prison instead of the maximum 475.
No sentencing date has been set.
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