'Death Put' Hedge Fund Trial Starts Today

Will share more over the weekend. Very interesting case.The SEC started saying I made 6.5million in ill-gotten gains. Settled for Less than I paid for my f-250 pickup truck.
 
selpats51 said:
Will share more over the weekend. Very interesting case.The SEC started saying I made 6.5million in ill-gotten gains. Settled for Less than I paid for my f-250 pickup truck.
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Well, you can bet those Survivor Option terms and conditions are going to be revised in a hurry.

IMO, since he's registered with FINRA with a Series 7 and a Principals Cert he's going to have tough sledding for commingling HF customer funds and personal funds regardless what his representations to his clients were. Private agreements that are illegal are null and void. Just my take.
 
a few issuers have changed the verbiage to the fact that one must be the "original" purchaser, not a secondary market purchaser. Surprisingly many have chosen to make NO change. There is nothing about his private agreement that renders it illegal. Additionally, it wasn't private.
 
I can't address the agreement errors as mentioned yet. As to the comingling, yes the SEC is citing a violation of the custody rule, but, their focus is on section 17 a(1) of the 33 ACT and rule 10 b(5) of the 34 act both of which are scienter based fraud allegations.
 
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