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Pro Rata Share in a Ponzi Scheme?
I was wondering there was this ponzi scheme that was stopped by the FBI and now we are getting to restitution time. There is currently $6.5 million in the fund. The total scheme loss was $26.5 million. They are doing restitution on a pro rata basis, doesnt that mean that in this case each victim should recieve approximately 25% of there original loss?
This was not class action, this was carried out by a distribution agent in cooperation with the Justice Department and the amount I said is available is already less the cost of the agent and other fees associated with it.
There were no shares, it was certificates showing a certain amount you deposited. In this case I deposited 10,000 with this man and $6.5 has been recovered and is available for distribution.
There were no shares, it was certificates showing a certain amount you deposited. In this case I deposited 10,000 with this man and $6.5 has been recovered and is available for distribution.
2 Answers
- ?Lv 79 years agoFavorite Answer
To me Pro Rata means the distribution is based on the number of shares you have in the scheme.
for example let us say there was a simpler fund which was worth currently $10,000 but lost $50,000 overall. You had 50 shares, another person had 100 shares and another had 350 shares.
The total shares in this scheme are 500 shares....so each share is worth $10,000/500 = $20 each
So on a pro rata basis you would get 50x20 = $1000.00...person #2 gets 100 x $20 = $2000.00 and person #3 gets 350x$20 = $7000.00
The loss in the ponzi scheme is not relevant...it is the amount of money that is recovered that is....the scheme could have lost $1million ....there is only $10,000 recovered....the amount you get will be based on your % of the shares in the scheme and the amount of money recovered.
- Steve DLv 79 years ago
Depends on whether there were lawyers involved and was it a class action suit. If there were lawyers involved, expect to get about 25% of your loss less 33% for lawyer fees...or only about 16% - and that assumes the entire $6.5 million is available.
