4 ms·
There seems to be a sweet spot for fraud: small enough to not be worth chasing down Given the high cost of investigation and the limited potential return,
by w10-1 2y ago
There seems to be a sweet spot for fraud: small enough to not be worth chasing down
Given the high cost of investigation and the limited potential return,
it would not be accretive to the estates for the Debtors’ counsel or the Examiner
to investigate the circumstances surrounding each of the hundreds
of small and medium-sized Venture Book investments
I wonder, though, if having hundreds of investments that are lacking in due diligence is itself evidence of fraud that could justify some recapture.
- dmurray 2y agoNobody needs any more evidence of fraud at the large scale: SBF is already in prison. To claw back individual investments (some as low as $1,000, which can't justify much DD) you'll need more evidence than "this was made without sufficient diligence".
- helsinkiandrew 2y ago> I wonder, though, if having hundreds of investments that are lacking in due diligence is itself evidence of fraud that could justify some recapture. I just think the Quinn Emanuel law firm just charge a too high hourly rate to justify investigating each investment that was less than $5M. I wonder if they open sourced the data (with a bounty) someone would find some returns. "Finally, Quinn Emanuel worked with Alvarez & Marsal to summarize basic information regarding the remaining, smaller Venture Book investments, i.e., those under $5 million. Quinn Emanuel did not investigate each of these investments, reasoning that the cost of such investigations relative to their limited value would not be accretive to the bankruptcy estates. These investments totaled approximately $286 million, making up approximately 4.8% of the Venture Book’s total value."