That is unbelievable. Consider the facts.
According to the liquidators, the vast majority of the 100+ companies that Corey lent money to are totally worthless. They are not functioning as companies on any level. They don't even file paperwork with the SEC. 16 more aren't trading, have no value, but they have kept up with the SEC filings. Only 9 are still trading, but they didn't say for how much. Some of those 9 may be trading for a thousandth of a cent- or some such thing.
In other words, the totality of the NIR funds are practically worthless.
At this point in time, they can't sell enough securities to pay the incidental expenses for a lawsuit against the accountants and other service providers who helped Corey- even though the lawyers would presumably defer payment and work on a contingency basis. That's how little value there is in NIR paper.
But, as recently as January 2011, Corey issued account values for year-end 2010, and they were mighty high- within 10% of the all-time high.
How could that have been? Things had already collapsed. How could they get away with that?
And even after that, I would call NIR and talk to Bobby Cohen and others and get- not glowing reports- but definitely the impression that things were improving.
But now there is the realization that the whole thing is practically worthless, $700 million gone like the wind. He handed hundreds of millions to scammers and criminals but kept a lot for himself. How does anybody get away with that?
AI
