Attorney/investor pleased business must pay for Hudgins' deals - KTRE.com | Lufkin and Nacogdoches, Texas

Attorney/investor pleased business must pay for Hudgins' deals

George Hudgins George Hudgins
Jeff Badders Jeff Badders
BEAUMONT, TX (News Release) -

By Donna McCollum - email

NACOGDOCHES, TX (KTRE) - Investor Jeff Badders is pleased Rosenthall Collins will pay back over $600,000 in commissions. It's a fraction of what investors lost in illegal deals handled by George Hudgins. The Nacogdoches attorney is getting more satisfaction knowing the huge Chicago firm must admit they weren't taking care of business.

"And to see the comments that were made in there about the wrongdoing and that Rosenthal Collins agreed with that and signed off on that was pretty amazing, really," Badders said.

The commission said Rosenthal Collins, ignored "red flags." Violations included a duty to "know their customer," such as Hudgins' background and investment objectives.

"Their actions were clearly illegal," Badders said.

Furthermore, the commission states RCG's employees failed to investigate and report activity that should have been recognized as suspicious.

"He showed a $7 million net worth and he lost over $35 million in 3 years," Badders said. "They said their people who are in charge of that did not know him. Did not maintain what they should have done."

All of this is ammunition for a civil lawsuit. Recently, a judge denied its certification for a class-action suit. In three weeks' time hundreds of plaintiffs have joined the original three plaintiffs.

"That knife cuts both ways because we have a lot more plaintiffs, but the defendants have a lot more plaintiffs to defend against," Badders said. "The best part of that ruling was the judge overruled their motion to dismiss. So the judges are saying our cases have merit and we're entitled to a trial."

Badders is working to regain losses. Other investors, many whom are elderly, have lost their life savings. Today original plaintiff, Barbara Carey said, "when you're 75 it's not easy to go out and replenish what has been stolen."

Depositions for the upcoming civil lawsuit are being scheduled. The actual trial is scheduled for next year. Cases like this one are often eventually settled out of court.

Copyright 2010 KTRE. All rights reserved.

  • East Texas NewsMore>>

  • Affidavit: 2 women pepper-sprayed, cut Lufkin woman in gym parking lot

    Affidavit: 2 women pepper-sprayed, cut Lufkin woman in gym parking lot

    Friday, July 21 2017 12:40 PM EDT2017-07-21 16:40:06 GMT

    Officers with the Lufkin Police Department arrested a 19-year-old woman Thursday in connection to allegations that she and another suspect ambushed a woman at Planet Fitness and then pepper-sprayed and cut her.

    More >>

    Officers with the Lufkin Police Department arrested a 19-year-old woman Thursday in connection to allegations that she and another suspect ambushed a woman at Planet Fitness and then pepper-sprayed and cut her.

    More >>
  • Dez Bryant comes home, throws BBQ party, kick ball game before leaving to camp

    Dez Bryant comes home, throws BBQ party, kick ball game before leaving to camp

    Thursday, July 20 2017 11:07 PM EDT2017-07-21 03:07:57 GMT

    With just a day's notice, former Lufkin Panther and NFL superstar Dez Bryant arrived at Lufkin's Kit McConnico Park in grand fashion for his announced "Family Fun Day."

    More >>

    With just a day's notice, former Lufkin Panther and NFL superstar Dez Bryant arrived at Lufkin's Kit McConnico Park in grand fashion for his announced "Family Fun Day."

    More >>
  • Restaurant Report - Nacogdoches - 07/20/17

    Restaurant Report - Nacogdoches - 07/20/17

    Thursday, July 20 2017 5:04 PM EDT2017-07-20 21:04:26 GMT

    Long John Silver’s, Church's. China Star, Ken's No. 4, Taqueria El 21, Texas Sports Bar and Grill, Jalapeno Tree, Papa John's, Pizza Hut-South Street, Sinc Drive-In on North Street, Subway-North Street, Newk's, and Nacogdochs Medical Center Cafeteria.

    More >>

    Long John Silver’s, Church's. China Star, Ken's No. 4, Taqueria El 21, Texas Sports Bar and Grill, Jalapeno Tree, Papa John's, Pizza Hut-South Street, Sonic Drive-In on North Street, Subway-North Street, Newk's, and Nacogdochs Medical Center Cafeteria.

    More >>
Powered by Frankly