Russell Erxleben: Receivership Action

Dec 14

On December 14, 2000 the Honorable Paul Davis of the 250th District Court of Travis County, Texas approved the first distribution of assets to investors defrauded by Russell Erxleben and Austin Forex International, Inc.

Janet Mortenson, the receiver appointed pursuant to an action brought at the request of the Texas Securities Commissioner,  recovered more tha $32 million.

Judge Davis found that if the Securities Commissioner had not filed a lawsuit "it is highly unlikely that the defrauded investors would have recovered any portion of their investments "and that "the intent of the Legislature to protect defrauded investors by providing for the appointment of a receiver under the Texas Securities Act has been fulfilled in this case and has led to the recovery of significant assets for the benefit of those investors. "

Russell Erxleben was previously sentenced to 84 months in prison in connection with the fraud.