Tuesday, February 5, 2008

I think I may have finally found some answers.

Over the past eleven months, I have had the opportunity to communicate with hundreds of MBC Investors from all over the world. While we may have been separated by thousands of miles and different languages, one basic theme emerged. The receivership did not provide enough facts for the investor to make informed decisions, and the receivership is negligent in the manner in which investors’ premium payments and policy benefits are processed, accounted for, and disbursed.

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Steve Mead, JKH 165 said...

JK Harris 165 Services, LLC would like to thank Larry Scartz for giving us permission to post on this website.

The purpose of this post is to alert you to a potential tax deduction/benefit which has likely been overlooked by your tax professional on your 2007 tax return.

The tax deduction/benefit to which I refer is for those who, for whatever reason, no longer have a prospect of recovery (ceased premium payments, sold contracts, etc.)

This tax benefit is called a Section 165 (c) 2 Casualty Theft Deduction. JK Harris 165 Services, LLC has a specialization with Section 165 of the IRS tax code and would be pleased to discuss the potential benefits with you and your tax professional at no cost or obligation for you.

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Simply put, we support the amendment/re-filing of your 2007 individual tax return(s) lowering your reported income by the amount of your uncollected loss from Mutual Benefits the net effect is a refund of taxes paid on the loss by reporting the loss as a theft of your investment.

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Mark Wayman said...

Hi I have two clients who invested substantial amounts in MBC and like your parents elected to keep the policies and pay premiums and service charges. One of them has taken up additional premium shares increasing his holding in some of the policies. Yesterday both clients received MBC Receivership Claim Forms for each one of their policies.
I have been unable to ascertain from the Receivers website sufficient details but from what I have seen it appears that all investors, whether they elected to forego,sell or keep policies are likely to be treated in exactly the same way. This means those that elected to keep the policies which entailed paying premiums and fees and in some cases increasing their holdings will receive no additional benefit for the extra money spent. In effect by paying premiums and maintaining the policies for longer they must have an increased sale value which will subsidise returns for those investors that paid nothing.
It appears to be totally unfair and the Receiver should not be allowed to get away with this. There must be thousands of other investors that feel the same way - but I am not sure what can be done about it.
I would be interested in you thoughts.
Regards

Anonymous said...

Mark, what you explain as the process for distributing funds seems totally unfair to me. Why did we pay these additional fees? We have two policies. As per majority choice, one has beeb kept, and one "sold". For the kept one, we have already paid 5,400 in premiums last year, and we have another bill here that we have to send in for 3,400. This is a lot of money to be putting out if we will get back the same amount as in the one that was"sold" and for which we have only paid the maintenance fee.

I didn't see that information in the forms we received, I hope it will be handled more fairly.

Maria

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Anonymous said...

Hey Larry. I don't know what to think or say about the investor situation.I do feel bad. And I do feel that the investors are just throwing away more money by paying these premiums. The only people that are making or collecting any money is the receiver. Please don't think the worst of me, but I used to be an employee for Mutual Benefits. I wasn't a salesman, or anyone of power. I was under the impression that I was working for a regular company. Thinking it was a typical office job. I was there in 2004 when the U.S. Marshall's raided the building. www.mutualbenefitscorp.blogspot.com
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