Assets Still Frozen in First Pension Case : Investment: A judge keeps injunction in effect until federal fraud investigation is concluded.

A federal judge Monday left in place a preliminary injunction filed by the Securities and Exchange Commission on May 26 freezing the assets of all three principals in failed First Pension Corp.

At a hearing in U.S. District Court in Los Angeles, Judge Harry Hupp ruled that the assets of William E. Cooper, Robert E. Lindley and Valerie Jensen, all former prinicpals of the now-defunct Irvine pension management company, will remain frozen until a federal investigation is concluded.

As much as $124 million of 8,000 investors’ money may have been lost to fraud and outright theft, investigators say. The Securities and Exchange Commission alleges that First Pension’s owners operated an elaborate pyramid scheme, leading clients to invest in mortgages that did not exist.

The three principals are reportedly in settlement discussion with the SEC, and those talks could conclude at any time, said Lisa Gok, assistant regional director with the SEC.

Cooper, Jensen and Lindley recently signed cooperation and plea agreements with the U.S. attorney’s office and are cooperating with an investigation by the FBI.