Cook receivership settles with broker-dealer for $1.5 million

Article by: Star Tribune
Updated: January 13, 2012 - 8:27 PM

The agreement still requires approval of a federal judge.

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The agreement with Western International Securities stems from the fact that it employed Jason "Bo" Beckman, a Minneapolis money manager and associate of Cook's who's awaiting trial in April.

Photo: Glen Stubbe, Star Tribune

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A California-based broker-dealer associated with a defendant facing charges in the mammoth Ponzi scheme run by Trevor Cook has agreed to a $1.5 million settlement with the receiver rounding up assets for defrauded investors.

The receiver, R.J. Zayed, filed a motion Friday in a Minneapolis federal court seeking its approval.

The agreement with Western International Securities stems from the fact that it employed Jason "Bo" Beckman, a Minneapolis money manager and associate of Cook's who's awaiting trial in April. Beckman, the owner of the Oxford Private Client Group, was an independent contractor and registered rep for Western from March 2008 to May 2009.

Western admitted no wrongdoing but agreed to settle the matter to avoid a lawsuit. Under the agreement, Western would pay the receiver $410,000 in cash and assign its rights to what remains of its $1 million insurance policy, plus any rights it would have to $495,500 held in an escrow account on behalf of some victims of the scheme who had previously settled a complaint with the company.

Zayed has filed motions seeking to pool the funds for distribution among all of the defrauded investors.

The settlement is valued at about $1.5 million overall. Although the cash component is relatively small, it represents nearly three-fourths of Western's $553,000 in excess net capital, the receiver noted.

Chief U.S. District Judge Michael Davis, who's overseeing the receivership, is scheduled to hear motions on the settlement next Friday.

DAN BROWNING