Worldco Going Out of Business

thetraderprofit · Oct 17, 2003

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?

spyderman · Oct 17, 2003

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.

I Missed Boat · Oct 17, 2003

Quote from Maverick74:

Walter is in Thailand. He moved there with his wife 4 months ago.
I think he wanted to open a Worldco office there believe it or not.

As far as the Worldco traders, word has it that Schonfeld is scooping them up. I heard the deal wasn't that great though.

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.

I Missed Boat · Oct 17, 2003

Quote from Bluedog:

So what is the latest on Worldco?

Are Worldco traders still trading there waiting for an official announcement or are the offices totally shut down?

There seems to be no official statement or press release yet and the Worldco website seems to be down now!

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.

I Missed Boat · Oct 17, 2003

Quote from theShadow:

Cannot extradite for white collar crimes.

Walter wasn't actually the one responsible, at least not principally. It was the rest of the criminal family and management.

I Missed Boat · Oct 17, 2003

Quote from Maverick74:

So they are paying back 20 cents on the dollar? Is that to everyone or just him. I know somebody that has 750k in the firm.
Are any of the guys talking about getting together to form a class action lawsuit?

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).

I Missed Boat · Oct 17, 2003

Quote from SethArb:

is this as bad a situation as at Harbor , where traders
had problems getting anything out of the firm?
sorry to ask as this prob was mentioned somewhere
in the thread , but what caused the demise of the firm?

Also ... does this again point to the risk of having money
in an LLC prop trading firm?

We don't know if it is as bad a situation as Harbor yet. We will find out before long I hope.

MVP · Oct 17, 2003

Quote from I Missed Boat:

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.

*** Schonfeld is simply trying to BUY the top commission generating Traders. Restore my ass... Its all about the Benjamins. ***

MVP · Oct 17, 2003

???

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.

wercurna · Oct 17, 2003

Quote from zdreg:

100% payout is not allowed for prop trader violation of reg. t. some firms firms like worldco paid out 95 to 99% to skirt rule.

At Bright Trading you get 100 % payout.