Corey just sent a letter to all investors
It's too long for me to post here, but he defended his past valuations, in fact, he claimed to use lower valuations than he legally and rightfully could have. He didn't deny that the funds are worth substantially less today, but he claims that the criminal investigations, the civil lawsuits, and the bad publicity have had a lot to do with bringing that about, along with the terrible economy. But, it doesn't mean he was lying at the time, says he.
And he went on to make the case that investors suing him is not the answer because even if they won, and he doesn't think they would, that the most they would get is two cents on the dollar. But, if they lost, then there would be their legal fees, plus his legal fees which he would sue for, plus the fact that the very existence of the suit would further damage the fund and make it more difficult to liquidate the assets.
He thinks that the liquidators, though well intentioned, are not trained in this PIPE investment space, and are unlikely to generate attractive offers. He says the only liquidation that has gone through so far was generated by him, not them. He thinks the most important thing now is to bring in a new investment manager with competence in this area to lead the process. I'm sure he meant someone like himself but it seems that he knows full well that it is not going to be him.
Anyway, I would like to hear the reaction of other investors to his letter. There is food for thought in it. We don't want to cut off our nose to spite our face.
