Nobullshit Network Forum at View Single Post

okosh · 08-27-2008, 04:08 AM

Quote:

August 18, 2008
Notice of Settlements

I have posted in the Documents section a notice and motion requesting the Court’s approval of settlements reached in several lawsuits filed against various investors with profits or preferential transfers.

The amounts listed in the motion described as “gross demand amount” represent all transfers to the defendant and were the total amount of each lawsuit’s claim. However, this amount includes all return of “principal” as well as any profits. For example, one defendant is listed with a gross demand amount of $37,500 with a $20,000 settlement. This individual invested $25,000 and received back $37,500, for a profit of $12,500. This settlement represents the full return of their profits of $12,500 plus $7,500 to resolve preferential payments he received.

A preferential payment generally is one received within 90 days of CEP filing bankruptcy. Under certain circumstances described by the Bankruptcy Code, CEP may recover those transfers that are assumed to give preference to certain investor creditors over others so that CEP may make a more fair distribution to all creditors. Investors against which I have asserted a preference claim, by definition, have lost money (or have after returning their profits). There are numerous lawsuits of this sort, so these settlements do not only represent people who have profited.

The financial circumstances of these defendants vary greatly and in many cases have deteriorated since CEP was shut down. In probably 95% of our settlements we review background information, personal financial statements, tax returns, credit reports and supporting documents such as bank statements and liability statements before settling with an individual at a substantial discount.

SEC v. Colon End Parenthesis Trust LLC