Following notice of a provisional settlement filed last November, Troy Sutton’s Profit Connect settlement has been approved.

While we know Sutton was part of a group of Profit Connect net-winners, who together stole over $3 million, how much Sutton personally stole remains unclear.

Through their promotion of Profit Connect, the Texas Lawsuit alleged Sutton and [Jeffrey] Nicholas convinced approximately forty investors to put at least $2,112,400 into Profit Connect resulting in subsequent compensation for Sutton and Nicholas.

Jeffrey Nicholas was in Troy Sutton’s downline. Prior to appointment of the Receiver, Nicholas sued Sutton in an attempt to recuperate claimed losses.

As per the terms of Sutton’s Profit Connect settlement, he’ll pay $15,000 to the Receivership.

Sutton has provided financial records demonstrating his inability to pay a settlement amount greater than the amount agreed upon.

As of January 31st, the outcome of clawback litigation against Jeffrey Nicholas remains pending.

In related news, on January 4th the Profit Connect Receiver received permission to “pursue clawback actions”.

As per the Receiver’s January 10th filed Tenth Status Report;

The Receiver has determined that there are potential claims against employees who received funds or gifts in excess of their W-2 wages, and against promoters and agents who raised funds for Profit Connect’s investment fraud and who benefitted from it.

The Receiver has identified approximately eleven former employees who received funds or gifts from Profit Connect in excess of their W-2 wages and with whom the Receiver has not already settled.

The Receiver sent these employees demand letters requesting the return of the funds or the value of the gifts in excess of their wages and has either resolved the claims or is in settlement discussions with the former employees.

The Received has been able to resolve issues with one former employee and is in discussion with five former employees to discuss resolution but will move forward with action if they cannot be resolved soon.

The Receiver is evaluating potential claims against agents/promoters and sent demand letters to 70 individuals seeking the return of false profits related to the investment scheme.

In doing so, the Receiver was able to resolve issues with 18 of the agents/promoters.

The Receiver is in conversations with 14 agents/promoters to discuss resolution but will move forward with action if they cannot be resolved soon.

There are also claims against credit card companies that received payments from Profit Connect for debts that it did not owe.

The Receiver anticipates finalizing settlements with several key institutions and third parties in the next quarter consistent with the same.

In addition to targeting several net-winners already, proceedings against Profit Connect’s former counsel for malpractice have been initiated.

The Receiver continues to evaluate additional avenues to recover funds for the Estate and anticipates filing additional clawback actions.

The Receiver continues to investigate potential targets.

To date the Profit Connect Receivership has received 482 claims totalling $31 million.

As of January 31st, the Profit Connect Receivership is sitting on $9.1 million in cash with a total asset valuation of $18 million.