Some 105 victims of a private equity Ponzi scheme are to recover more than 100 per cent of the money they invested, plus an additional 10 per cent.
Receiver Mark Dottore, represented by Rob Glickman of McCarthy Lebit Crystal & Liffman Co, LPA and co-counsel Bob Rapp, was charged with attempting to recover the more than USD28 million stolen from investors of the IPOF Fund, a defunct private equity fund that was actually a Ponzi scheme operated by David Dadante.
Over the past eight years, the Receiver and his legal team brought legal action against numerous brokerage firms, a law firm, a commercial bank and others to recover money that was lost due to their actions or inactions involving Dadante.
They also negotiated terms with a publicly traded company whose stock was held in the Receivership and had been manipulated as part of the Dadante fraud.
To date, the Receiver and his legal team have recovered USD47 million in cash and negotiated the release of USD12 million in margin debt that was owed by the IPOF Fund. This approximate USD59 million recovery in a Ponzi scheme that cost the investors USD28 million is unprecedented in cases of this type.
Even after all fees, costs, and expenses are paid the investors will receive or have received distributions that total 110 per cent of their original investment with additional distributions to be made in the future.
Further, the Receiver continues to prosecute an action against a commercial bank and expects to obtain another recovery for the benefit of the victims of the Dadante fraud.
