Virginian and others:
I was at that hearing and posted detailed notes on the yahoo board and proboards. Many supporters of RA have said that I am: basher, work for the SEC, work for hedge fund, a NSS etc. All of which are untrue. I do have bias against RA. But I digress.
At the hearing, RA via Tifford offered the settlement plan of the greater of $10K a month or 20% of his monthly earnings (assuming his is working). As good faith, RA deposited $30K at the hearing.
Judge Lynch called that "rather modest" and like a "20 year mortgage". He asked what the SEC thought, and they responded that Mrs. RA just sold $500k of jewelry. They discussed the condo that they owned and how that may be sold or assigned to the SEC. Also as part of the plan, RA was trying to borrow $1.5MM which would go toward disgorgement. It ended with the SEC saying they dont have all of the Altomare account information.
Judge Lynch said if sounded as if RA needed more time to gather the money and sell the condo for disgorgement. He said that he hoped RA (and Gundy)and the SEC would have a settlement prior to the next contempt court date. He also said that the additional time would allow the SEC time to find additional accounts.
What you have is that RA and now Babs have not been cooperative in providing their financial status, instead taking the fifth. As Jane said in one of the deposition. Financial inability is a defense for contempt. But as RA and Babs were not forthcoming, this defense will not work and in fact will work against them. That is why RA will be continue to be held in contempt and possibly face jail.
since that hearing, RA has made an additional $10k payment in Dec. But missed November. My guess is he will try to use his misguided understanding of the settlement he mentioned in the deposition. But after missing November payments, that will be a tough sell IMO.
Interestingly, have not heard where Gundy stands on his settlement.
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