What I'm hearing doesn't make any sense. If they are filing for bankruptcy, but paying out 20 cents on the dollar before doing so, they may be making "a preferential transfer for the benefit of certain creditors." You could be forced by a bankruptcy court to pay the money back into the bankruptcy estate. If they are really paying out 20 cents on the dollar, several traders need to get together (I believe it takes 3 creditors owed more than $1500 each) and talk to an attorney about forcing an involuntary bankruptcy filing. You definitely need competent counsel. If they have already filed, they wouldn't be paying anything out this soon. The whole story is lacking key elements. Can someone fill me in?
I find it odd this story isn't getting press. I guess the reporters haven't heard of it. It affects every prop trader out there to a big degree, and the rest of the investing public albeit in lessor fashion.
Walter is not yet in Thailand. The deal at schonfeld was their standard deal (except that worldco traders going to Brooklyn could keep their existing deal for a few months). However, Schonfeld not only has some good things to offer, but it will give back to traders a piece of the profits of all former Worldco traders at Schonfeld to help resore the capital balances looted by the scummy, lying, fraudulent Bruin family.
No, offices are not totally shut down. Traders are still allowed to use the internet But yes, all trading is shut down, now that they probably have the money moved off shore and have worked out how to manage the legal affairs to come.
Walter wasn't actually the one responsible, at least not principally. It was the rest of the criminal family and management.
No, they paid October earnings. They paid nothing of capital balances from before October, not even checks that had previously been promised. Thus, the $5k out of 25k referred to had nothing to do with the primary capital balance money (the guy apparently had a 20k capital requirement). Rumor had it traders would get around half or so, and they got squat except a bunch of excuses).
*** Schonfeld is simply trying to BUY the top commission generating Traders. Restore my ass... Its all about the Benjamins. ***
??? Judging Worldco or any firm by the cover will get you in trouble eventually. Like a game of Hot Potato or Russian Roullette. (Actually, a few Traders of Russian Jewish descent did get burned) Some Worldco traders were smart enough to beat the market but not smart enough overall...TO BEAT THE FIRM. Penny wise... pound foolish.