Tuco distributions "best case scenario is the end of May"

Discussion in 'Prop Firms' started by Daal, May 5, 2008.

  1. Daal


    "Our best case scenario for an interim distribution is the end of May.

    The forensic accounting of Tuco Trading takes considerable time due to
    the volume of information to gather and reconcile, and the fact that
    Tuco's books and records were not kept up to date. Mr. Lennon's
    forensic accountant and his staff have been working diligently on this
    substantial project. We will present a report to the court at the end
    of May.

    It takes GLB time to reconcile the Tuco accounts and produce statements.
    The information we have yet to receive from GLB pertains to trading
    activity and commissions earned in March 2008. We are in regular
    communication with GLB and expect to have the information very soon."

    i guess they changed their strategy, they will just flat out lie and then disappoint everybody instead of telling the truth and getting everybody pissed
  2. Only giving the best case scenario, they are bound to disappoint.

  3. what percentage of money do you think we will get back? Any guesses out there?
  4. ...YOU should start by banking on Zero and anything that does get paid out will be a surprise....sorry for the glum news but really you should not expect anything...the accounting shoudl not take this long IMO
  5. jazzsax


    This is *nothing*.... I've been watching the distributions from a labour sponsored investment fund that many were involved in from my home province, and the trustee has dragged that out for YEARS without making a single distribution (and they';ve taken the trustee to court multiple times).... this can go on forever if they really want it to.
  6. briana


    Interesting that you say "percentage". Is that how it is going to work?

    I would be irritated if I was the largest investor/membor and pick up the majority of the tab vs. paying a std fee per investor/member.

    Is there any info out there regarding how the distribution will be allocated?
  7. If Tuco has 10 Mill in Assets, I suspect it will be something along the lines of:

    Forensic Accounting: $5.6 Million
    SEC Lawyers: $3.1 Million
    Traders: $700,000

    Tuco may not have done anything wrong, but their assets have been looted.
  8. jazzsax


    your math is brilliant! (5.6 + 3.1 + .7 = 10???) LOL!

    Secured creditors if any will get paid first. Anything left will then get split up between the unsecured creditors on a percentage basis.... if there's 10 mill in unsecured, and 1 mill left to distribute, they'll all get 10% of what they're owed.

    That's the risk you take with anything.
  9. don't forget, the whole premise of the SEC raiding the firm was to protect the traders. then look what happens... i am just in shock at how well the tuco traders are handling their fleecing.
  10. briana


    How do you know it is on a percentage basis? Is there a law or is that the custom and practice in a situation like this? Or, are you speculating?

    And, didn't the order say that Tuco AND Fredrick would be liable? How does that get divided up? He is obviously not destitute if he is buying 20k of furniture.(I realize it may or may not be his money) Wonder if he will/can declare BK bcause of this.
    #10     May 7, 2008