Judge Denies Motion by Cook, Still in Contempt
A motion filed by convicted Ponzi schemer Trevor Cook that sought to lift the court's contempt order was denied Monday by U.S. District Court Judge Michael Davis.
Cook was found in contempt of court and jailed in January following his repeated refusal to help a receiver locate and liquidate more than $35 million in cash and assets.
According to documents filed Monday in U.S. District Court, Cook has not provided that assistance or shown that he is unable to comply with the order-which is why Davis didn't approve his request.
According to the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC), Cook may still be in possession of information that will assist in the recovery of additional investor assets.
Cook, 37, was charged in March and pleaded guilty in April to one count of mail fraud and one count of tax evasion for his involvement in a $190 million Ponzi scheme. In August, he received the maximum sentence of 25 years in prison.
The denied motion means that Cook will not officially begin serving his criminal sentence until he complies with the court's orders to help the receiver recover assets and his contempt status is officially cleared.
Davis said that the SEC, the CFTC, and the court-appointed receiver-R.J. Zayed-should continue to meet with Cook for purposes of recovering additional investor assets. The parties are due to appear in court for a status meeting on December 6.
Also on Monday, Davis approved $2.25 million that was recovered by Zayed to pay back investors who were defrauded by Cook. Davis also approved the sale of two properties owned by Cook-one in Burnsville and another in Ontario, Canada-which will be used in asset recovery for victims.
A Tuesday morning phone call to Cook's attorney, William Mauzy, seeking comment on Monday's news was not immediately returned.