Tuesday, February 9, 2010

GETTING TO KNOW THE RECEIVERSHIP

It took me a long time to develop any trust in the receivership. My primary problem was that I didn’t understand and wasn’t willing to accept that the receiver answered to the court first and the investor last. I felt that without me and the other investors, the receivership wouldn’t have the opportunity to earn a $10 million dollar fee and that the investors were not given enough information or consideration. Quite possibly, everything that the investors needed to know were in the court documents on the web site. But many investors didn’t have access to computers and documents prepared by lawyers for court use tend to be hard for the average person to understand. Another problem is that the receiver has never provided enough documentation to allow verification of any financial information provided. In my opinion, the lack of verifiable financial information continues with this distribution. For example, why didn’t the receivership show a summary of the monies that comprised the recovery pool? Was the recovery fund held in an interest bearing account, and if so, was the earned interest income added to the recovery account? Also, why didn’t the receiver state the actual return percentage? My parents received 18 checks so I was able to compute the return to be 13.51574%. If you had only one policy, would you have been able to verify your check amount? Hopefully, there will be an audit of this receivership in the future and some of these questions will be answered.

3 comments:

rickie said...

larry I'm helping a few investors in wayne county NY what is the 13% return is this the return on your parents investment for that group of policies or is that the % of money paid back? erik Brown

Anonymous said...

I also received 13.5% of the original investment a few months ago. This is the distribution from the class action settlement with MBC lawyers.

Anonymous said...

We had two policies; one was sold by the investors, one was kept.
From the sold policy we received two checks for about 15 percent of the initial investment.

The other policy matured and we received a check for the amount we were vested. We had paid an additional 13,000 dollars in premiums, so we basically broke even. We were lucky. Somone however will make a bundle from all those sell policies bought at a fraction of the cost. I agree, not enough information was given to the investors as to the long term implications of the this fiasco. Did all the policies really exist? Was it a Ponzi scheme?
I read all the info on the website, it is difficult to know what really took place, and how many people made a lot of money on the investors.