Replies to post #232776 on Sulja Bros. Building Supplies, Ltd (SLJB)

[janniebgood]

FYI for those who lost money here, this tax relief information may apply to many of us in the event fraud allegations are proven:

JK Harris 165 Services Says Investment Fraud Victims Find Relief in Little Known Tax Law
March 02, 2004 11:39 AM US Eastern Timezone

TAMPA, Fla.--(BUSINESS WIRE)--March 2, 2004--All too often, victims of investment fraud fail to receive the full tax benefits permitted by the IRS, according to JK Harris 165 Services, LLC, a subsidiary of JK Harris & Company that specializes in assisting investment fraud victims.

If they treat the loss as a capital loss, it can only be used to reduce ordinary income by $3,000 per year. The remainder may only be used to offset capital gains, at a rate that is generally lower than their income tax bracket. In this case, if an individual has no capital gains, a $100,000 investment loss would take more than 33 years to recover. But if the loss qualifies as theft under long-standing IRS code Section 165 (c)(2), injured investors may receive substantially larger tax benefits.

Richard Kess, vice president of client services for JK Harris 165 Services said, "Most investors don't know about Section 165." Kess said that many CPAs apply Section 165 to theft of property, "but don't seem to know it also pertains to investment theft."

A 1999 Law Enforcement Bulletin by the U.S. Department of Justice estimated seven percent of all investors are targeted for investment fraud. In 2002, securities regulators at the White Collar Crime Center estimated that securities and commodities fraud totaled about $40 billion per year. Kess said that while most of these losses are institutional losses, individual investors are still highly exposed.

Bart Siegel, CPA, an independent investment and tax expert and part of JK Harris 165 Services' network of attorneys, CPAs and other professionals, said this often overlooked benefit is not just for the wealthy few.

"If a married couple in the 28 percent tax bracket filing jointly, with a net taxable income of $160,000, has an investment loss of $240,000 that qualifies for a Section 165 (c) 2 deduction, their taxable income could be reduced to zero," said Seigel. "This would save them approximately $34,000 in taxes versus taking the standard $3,000 capital loss deduction (based on 2003 tax tables). He said they may also carry forward the additional $80,000 in unused deductions to minimize taxes due in future years, or carry back to receive refunds for previously paid taxes. "The benefits can be enormous," he said. "Victims of investment fraud owe it to themselves to find out if they qualify for this important tax relief."

Kess said that his company, the nation's leader in substantiating Section 165 claims, stays busy educating injured investors. "Not all investment losses qualify for a Section 165 (c)2 deduction," said Kess. "Our specialists complete a detailed documentation process to determine which losses meet IRS guidelines." He recommends that anyone who thinks their losses may qualify review the following qualifications, all of which must be met:

-- Your investment loss was the result of an intention to defraud.

-- Your investment was illegal in the state where the theft took place.

-- You have no reasonable prospect of recovering your investment loss.

-- Your investment was not purchased with monies within a qualified, tax-deferred retirement account.

Kess said that his company's specialists consult with individuals and their tax professionals at no cost or obligation to evaluate whether a Section 165 deduction would be of benefit. Additional information is available at the company's web site at http://www.165services.com, or by calling 800-830-7617.

Contacts

JK Harris 165 Services, LLC, Tampa
Richard A. Kess, 813-258-1636
or
The Xposure Group, Inc.
Steve Holub, 813-657-1363

[janniebgood]

tryin - the following was posted earlier by Jim Bishop, concerning the possibility of recovery from a claims fund relating to money recovered by the SEC:


http://www.sec.gov/divisions/enforce/claims.htm

Investors Claims Funds

This page lists the SEC enforcement cases in which a Receiver, Disbursement Agent, or Claims Administrator has been appointed. Funds that are recovered and available for investors will be distributed according to an approved plan.

In addition to seeing whether a claims fund has been established, you may want to find out whether a private class action has been filed against the company you invested in. If you're aware of violations of the securities laws, please tell us by using our online complaint form.

If your broker-dealer has gone out of business, you can visit the website of the Securities Investor Protection Corporation to find out whether your firm is the subject of a liquidation proceeding and how you can obtain a claim form.