Who are the Real Criminals?
jaybeacham 17 Nov 2019 | : blog
11/17/2019
Seldom do people read what I write or listen to what I say,
but I feel I must write and talk about this.
A few years ago, I thought I should inverst in gold and silver.
Not having much in the way of funds, I choose to buy on options.
I infested in a company that seemed reputable.
Things went well and I started getting checks every month or so on earnings.
Then my broker was no longer with the company.
The new guy seemed very concerned that I not lose money, telling me when to sell
before the market dropped.
The company motto being “Buy, Sell, or Trade at any time.”
One Monday he called, “May need to sell”.
The next day, he called, “Don’t need to sell. Check on Friday.”
On Friday I called. He was at lunch not to return that day.
On Monday the market fell and I lost all unless I put in more money.
I did. Shortly after that, the owner of the firm was caught with his car trunk full
of gold bullion leaving the firm. He had priviosly withdrawn large sums from the
local Wachovia Bank on a daily basis over several months time. During that time,
he kept informing his reps to sell more.
It was learned he had stolen $29 million from the firm and investors.
He was caught, tried, sentenced to 12 years in a gentleman’s prison, replete
with a furlough system, and ordered to pay back $19 million to investors.
A law firm for the victims started the process of liquidating all holdings of the
company, obtaining judgement against every principle broker and advisor of the
company and any other means possible to raise the $19 million plus their fee.
What had this guy done with all the money?
Wachovia Bank was bought out by Wells Fargo, so they even went after Wells
Fargo for $3 million for allowing the improper withdrawing of monies by the owner
of the investment firm.
After liquidating every property, even the office furniture, the Wells Fargo money
was needed for investors to get paid back.
I was only out $21,400, but spoke to an Atlanta investor who was out $140,000.
One man even had lost $538,000.
Wells Fargo lost and made a payout of $1.3 million, with their attorneys and
the victims’ attorneys getting paid their time on the case out of that settlement.
After the victims attorneys had collected $650,000 wages(only by the hour the
judge said. $350 to $500 or more per hour. Wouldn’t that be a nice hourly wage?),
they determined there was no more for them to get from this case and made a
settlement among the victiims of a penny on the dollar.
My $21,400 became $214.00.
“Accept or get nothing.”
The guy with the $538,000 loss had died, his heirs got about $5,380.00,
not even enough to pay for his funeral.
Why bring this up?
Who were the crooks in this case? The owner of the investment firm?
Or the Judge and the attorneys?
You decide for yourself, but I tend to believe that the legal people were the real
criminals here.