Gina Champion-Cain wants reduction in restitution she owes her Ponzi scheme victims

Gina Champion-Cain, who remains in prison for masterminding San Diego’s largest Ponzi scheme, is seeking an adjustment in the more than $50 million in restitution she was ordered to pay by a federal judge two years ago.

While the judge noted at the time that the total sum, which can be paid over time, would likely be reduced substantially by still pending settlements and claims, Champion-Cain is saying in court papers that the time is now to make those adjustments.

“Although Defendant is currently fulfilling her federal obligation by paying monthly payments through the Bureau of Prisons while serving a term of imprisonment imposed by this Honorable Court at the Federal Prison Camp in Pekin, Illinois,” Champion-Cain wrote in her motion, “she seeks the relief of a revised and accurate Restitution Order to reflect her currently owed obligation since a significant amount has been paid to the victims of her case, as well as the fact there appears to be additional money coming into the Receiver’s bank account through the continuing sale of Defendant’s various assets and ‘clawback’ claims (for ill-gotten gains) still being litigated by the Receiver.”

A receiver appointed by the federal court not long after Champion-Cain was charged with securities fraud five years ago has estimated that nearly 300 investors suffered net losses of $183 million that they thought was going toward making high-interest loans to cash-strapped restaurant and bar owners who were purc...