More delays in fraud case for ex Neb. brokers

AP News
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Posted: Dec 14, 2009 2:40 PM

A Sarpy County judge has removed himself from the securities-fraud cases of two former Nebraska City brokers because of concerns about possible conflicts.

Rebecca Engle and Brian Schuster are accused of defrauding more than 130 investors in southeast Nebraska out of more than $20 million. Prosecutors say the brokers sold improperly risky investments

District Judge David Arterburn removed himself because several of his fellow Sarpy County judges know people who lost money invested with the brokers.

Engle's and Schuster's cases had already been transferred to Sarpy County because many lawyers and judges in Otoe County had conflicts of interest.

A new judge, likely from a third county, will be appointed, but the case will be delayed.