72: The Ponzi Drag

SPONSOR: Fixed Cost Financial, Inc. Outline 00:00:00 - 1: Ponzi Schemes Galone 00:00:24 - 2: Disclaimer 00:00:33 - 3: The Rip-Off Goes Like This 00:01:22 - 4: Impressed Without Proof 00:01:54 - 5: Fake Returns 00:02:45 - 6: Civil Drag & Clawbacks 00:03:34 - 7: Following Trash The quick criminal process doesn’t apply to the civil process of getting money back. Billing and expenses for the professionals unwinding the case can often eat up a lot of what is recovered. Many Ponzi schemes unwind under the supervision of a federal judge. The judge appoints a trustee. If a trustee becomes distracted with other cases, a judge can set progress-report hearings or delay the trustee’s compensation to speed things up. However, it is not uncommon to have a disinterested or passive judge who can slow things down to a crawl. Remember, this is a gravy train for those involved, and everyone has protection against civil litigation because of court immunity. Disclaimer Connecting Dots is a production of Fixed Cost Financial, the home of fixed cost investing. All rights reserved. Re-broadcast or distribution prohibited without express written authorization. Connecting dots is for educational use only. Investment Performance Is Not Guaranteed. Past performance is not indicative of future results. This broadcast does not take into account your particular investment objectives, financial situation or needs. Nothing should be construed as an individual recommendation. Always read and all applicable information carefully before making an investment decision. Investments are not bank guaranteed, not FDIC insured. and may lose value. Due to our extensive holdings and that of our clients, you should assume that we have a position in all companies discussed and thus a conflict of interest should be assumed. Visit DOTS.fm for additional items of interest.