Look how much he took- since 2008
This is from Long Island Business News, Feb 2012
PwC’s initial cash flow reports show Ribotsky’s firm charged at least $52 million in fees and expenses for running the funds since the fall of 2008, although the investments did not provide a meaningful return during that time. PwC wrote that since the cash-out freeze, NIR charged $24.5 million in management fees and another $1.5 million in general administrative expenses. Most hedge funds take expenses, like rent and staff salaries, out of the 2 percent management fees charged to investors, but it appears Ribotsky billed extra for that.
Ribotsky also owns a collateral management firm called First Street that billed investors another $25.83 million in management fees and listed those fees as a creditor’s claim. There is also a creditor’s claim on the funds of $1.77 million listed as an “introducing fee” to Crawford Ventures Inc., a Manhattan-based investment partnership.
NIR spokesman Brad Gerstman said he couldn’t verify the liquidator’s numbers.
“We do not confirm nor deny them as we have not independently verified same,” he said. PwC’s letter states the liquidators got the numbers from NIR’s books after NIR provided access to them. Some of the numbers, such as the $14 million of investor funds spent on legal fees, were self-reported by NIR to the liquidators.
