Ponzi Victims See $1M Settlement in Kingdom Trust Custodian Case

LOUISVILLE, KY – March 02, 2026 – Investors who lost millions in a sprawling Ponzi scheme orchestrated by California investment adviser William Jordan have been offered a measure of resolution, though one that underscores the devastating financial toll of the fraud. A proposed $1 million class action settlement has been reached, not with the scheme's architect, but with The Kingdom Trust Company, the financial institution that served as custodian for the fraudulent funds.

The settlement, if approved, would resolve the lawsuit Daniel McNally v. The Kingdom Trust Company, which alleged the custodian knowingly assisted and perpetuated the multi-million dollar fraud. For the roughly 100 investors who collectively lost over $71 million, the $1 million fund represents a starkly small fraction of their losses, highlighting a bitter victory in a long fight for accountability.

Anatomy of a $71 Million Fraud

The case stems from the elaborate Ponzi scheme operated by William M. Jordan from approximately 2011 to 2016. Through his firms, including William Jordan Investments, Inc. and WJA Asset Management, LLC, Jordan raised over $71 million from clients by funneling their money into a complex web of 16 private investment funds, collectively known as the “WJA Funds.”

According to findings from the U.S. Securities and Exchange Commission (SEC), Jordan’s operation was built on a foundation of deceit. He allegedly lied to investors about the performance of their investments, overstated the value of fund assets, and concealed his own disciplinary history. The SEC charged that Jordan used these inflated values to justify and pay himself excessive management fees and bonuses.

A core element of the fraud was the improper commingling of assets. Despite promising investors that their capital would be segregated within specific funds for distinct purposes, Jordan allegedly treated the WJA Funds as a single slush fund. He moved money between entities to cover shortfalls and, in a classic Ponzi scheme maneuver, used capital from new investors to make payments to earlier ones. None of the 16 funds were ever independently audited, contrary to Jordan's assurances.

The scheme began to unravel, leading to Jordan’s firms filing for Chapter 11 bankruptcy in May 2017. In 2018, Jordan settled the SEC’s fraud charges, agreeing to a permanent injunction without admitting or denying the allegations.

A Custodian's Role Under Scrutiny

While William Jordan was the architect of the fraud, the class action lawsuit turned its focus toward the role of the institutional gatekeeper: The Kingdom Trust Company. The lawsuit, led by plaintiff Daniel McNally who personally invested $450,000, alleged that Kingdom Trust provided “substantial assistance” to the Ponzi scheme by failing in its duties to safeguard investor assets.

As custodian, Kingdom Trust was responsible for holding and protecting the assets within the WJA Funds. The plaintiffs argued that the firm breached its own agreements, which required keeping each fund's money segregated. Instead, the lawsuit claimed Kingdom Trust allowed the funds to be commingled in a single account, executed improper fund transfers at Jordan’s direction, and facilitated the Ponzi payments that kept the scheme alive.

The allegations suggest Kingdom Trust was not merely a passive observer but an active, if unwitting, facilitator. This legal action taps into a broader debate about the responsibilities of custodians in preventing financial fraud. While custodians are not typically liable for investment performance, their role in ensuring assets are properly segregated and accounted for is a cornerstone of investor protection.

Adding weight to the plaintiffs' claims is Kingdom Trust's own recent regulatory history. In April 2023, the Financial Crimes Enforcement Network (FinCEN) assessed a $1.5 million civil money penalty against the company for “willful violations” of the Bank Secrecy Act. FinCEN found that Kingdom Trust had a “substantially inadequate” anti-money laundering program and had failed to identify and report hundreds of suspicious transactions, some of which were connected to other fraud schemes. This separate federal action painted a picture of a firm with significant deficiencies in its internal controls, lending credibility to the allegations that it overlooked the red flags in the William Jordan operation.

The Path Forward for Investors

The proposed $1 million settlement offers a conclusion to the legal battle against Kingdom Trust, but it represents a recovery of just over one cent for every dollar lost in the original $71 million scheme, before legal and administrative fees are deducted. The fund will be distributed among eligible class members who file a valid claim.

A fairness hearing is scheduled for April 28, 2026, at the United States District Court for the Western District of Kentucky. Judge Benjamin Beaton will determine whether to approve the settlement as fair and adequate, certify the settlement class, and rule on applications for attorneys' fees and expenses.

Investors affected by the William Jordan Fund Scheme face a critical deadline. To be eligible for a payment, they must submit a claim form to the designated Claims Administrator, Strategic Claims Services, by April 14, 2026. This is also the deadline for investors who wish to exclude themselves from the class or file an objection to the settlement terms. Those who do nothing will receive no payment but will still be bound by the court's judgment, forfeiting their right to pursue separate legal action against Kingdom Trust regarding this matter. Complete details and claim forms are available on the settlement website, managed by Strategic Claims Services.