First Lawsuit against Worldco (worldcon)

Discussion in 'Prop Firms' started by bmwstox, Oct 23, 2003.

  1. bmwstox


    Ok, ok..I'm waiting to see who will file the first major lawsuit against the now defunct Worldco and it's conspirators. Perhaps Bernie Ebbers or Ken Lay can give Worldco some pointers.

    I liked AG by the way, I wonder how he managed to finagle his way into my old firm Schonfeld. I know PM is smiling from ear to ear!

  2. arnegr


    has worldcom gone out of business
  3. fraudulent conveyance
  4. zdreg


    filing lawsuits against worldco is a gurantee that prop traders will delay for a long time till they get their capital back. a panic reaction by worldco management brought firm down. panic reaction by prop traders- law suits will enrich lawyers and delay possibly for yrs. getting their money back.

    ag is a rofessional bureaucrat who has licenses and background to satisfy nasd when they push firms into having trading supervisor.

    pm can never laugh. flunked out as trader recently and as a risk manager is a required expense for a firm and will be always struggling
  5. jem


    zdreg - As a former lawyer I have to question your statement. You may be right but you should explain to all the people due money why it would be better for them to wait. What chance do they have to get paid?. Does Worldco have other creditors besides traders, are they going to line up in front of the traders?

    Like I said I do not know the answers but sitting on your rights against a debtor is rarely the way to go. I mean heck they are debtors not payers.
  6. The lawsuit will eventually come against the Bruans, not the firm, and the delay won't matter since the traders will likely get little to nothing back from this crooked ownership.
  7. I go with you JEM on this one. Traders need to make their "place in line" known to the firm and their other creditors. Negotiations can still go on during the interim. If it comes down to settling for 10 cents on the dollar or something, then those involved would likely go forward with the suit, attach assets, etc. If a reasonable settlement was in the mix, then perhaps a lawsuit could be dropped.


  8. Everyone is talking about lawsuits against Worldco. From a totally objective opinion, I almost went there and I'm happy that I didn't. From the lawsuit point, I can tell you that this was a LLC. People put up capital and there was no gaurentee to get it out. They should have known the risks. I saw the writting on the wall when I visited this place. There may be personal lawsuits for civil actions, but I really don't see any lawsuit goign anywhere against the LLC to recoup your money. Your money is gone and the only suit that will get you anywhere is a civil suit for actions that I wouldn't even want to imagine at that chop shop. And, then is you file an action against teh braun's, you will be asked, why aer you filing it against teh braun's and not the LLC??? That is when you will figure out that you really have no where to go with a lawsuit in this situation. Bascially, you guys are all screwed. Learn from it, move on, and never make the same mistake again.
  9. Not true. Assuming they haven't done anything illegal with the LLC money in the last several months (which many assume is already a very big assumption), they lied and misrepresented the situation right up until the shutdown. They solicited money from new and existing traders and made promises they new they couldn't keep right up through that final week. That is fraud. And even in an LLC the ownership does have fiduciary responsibilities (no, not the same responsibilities as with retail accounts, but fiduciary responsibilities nonetheless). Therefore, given what we know the ownership has done, not to mention what many suspect the ownership has done or is doing, a lawsuit against the Bruans might well go plenty far. And once the situation, deceit and all, is explained to a jury, you might be surprised with whom the jury sides (at least if you assume it would be with ownership).

    By the way Mr. Bright, you were recommending someone move to Las Vegas in another thread. Would you still recommend Las Vegas once the thousands of tons of nuclear waste is shipped to Nevada?
  10. zdreg


    real estate leases sunk co.
    worldco traders with capital contributions are at bottom of list and are not debtors in usual use of word.
    #10     Oct 27, 2003