Paying back the victims
Those who got money out early may be out of luck
By Schuyler Kropf
Investors ripped off by imprisoned economist Al Parish are getting their first look at how officials plan to distribute the cash and assets they've been able to recover, and this much is clear: Not everyone is going to be happy with it.
The Post and Courier
Al Parish
Under the plan — dubbed the "Rising Tide" — investors who withdrew or received little or nothing from Parish during the 15 years of his Ponzi scam will be first in line for a share of the $8 million to $9 million accountants expect ultimately will be recovered.
For them the news is good: each could get back as much as 25 percent of their principal investment.
On the flip side, those who received or withdrew money early, or got regular payouts from Parish during the life of his scheme, could receive nothing additional.
The logic, advocates said, is they've already received some degree of benefit and aren't entitled to more in the aftermath.
Officials who put together the proposal, filed Thursday in U.S. District Court in Charleston, know their recommendation is certain to disappoint many caught up in the Parish fiasco, especially as victims have been waiting months to see a settlement plan.
But supporters of the "Rising Tide" plan say it is the most fair because the majority of his 600 investors — as many as two-thirds to three-fourths — never withdrew or received any cash or payout from Parish after entrusting him sometimes with tens of thousands of retirement dollars.
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"Clearly, those investors who received prior payments from Parish are, in relative terms, in a better position than those who did not," court papers say.
The recommendation comes as just over two years have passed since Parish, 51, a former Charleston Southern University economist, was charged in what likely is Charleston's largest case of investor fraud. He is currently serving a 24-year prison term.
Parish also received some bad news last week when the 4th Circuit Court of Appeals denied his appeal of his sentence, saying his arguments had "no meritorious issues." Parish had argued that a term of about six years was more appropriate when compared with other white collar crimes. The next step would be an appeal to the U.S. Supreme Court.
David Dantzler, the attorney for the receiver that collected Parish's assets, said the "Rising Tide" plan is the most fair since anyone who received earlier payments likely did so from money that Parish collected from later investors, which is the key formula behind a Ponzi scheme.
Dantzler said officials feel pretty secure about the distribution because banking records are considered to be generally good from the year 2000 to when the scam fell apart in the spring of 2007.
One highlight in the filing is that investors will be given the opportunity to challenge the payout proposal and the amount that someone is owed. "It will be the claimant's burden to show that the receiver team's determination is not correct," court papers say.
Even as the distribution plan is expected to draw controversy, the money recovered to date represents a fraction of the estimated $66 million lost by Parish in his private investment pools.
So far, the total dollar amount from the minimal cash recovered and the proceeds from selling Parish's homes, property and odd assortment of collectibles, is expected to run between $8 million and $9 million.
That's approximately 13 percent to 15 percent of the net amount lost by all of the claimants in the Parish Ponzi scheme, though the calculations are changing regularly.
No timetable has been set on when reimbursement checks will be available. It depends on challenges to the plan, collecting assets that are still being pursued and tax issues that need to be settled.
Investors will be mailed letters detailing the proposal probably next week. They have until June 1 to file objections, and a hearing on the proposal is scheduled for early July.
Reach Schuyler Kropf at 937-5551, or skropf@postandcourier.com.
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lillycollette (anonymous) says...
It's amazing the amount of time that has been devoted to this fraud case while this paper refuses to touch a clear case of fraud by officers of the (family) court. Hmmm, go figure.
May 1, 2009 at 4:36 a.m. ( permalink | suggest removal )
Tides (anonymous) says...
Just 25%? And yes, the P&C will never touch anything to do with bad circuit court judges (which we do have). Just Magistrates. Hence, bawk! bawk! bawk! lol
May 1, 2009 at 6:28 a.m. ( permalink | suggest removal )
spengler (anonymous) says...
Why is Big Al in jail when Obama does the same thing every day and gets to be President? Life is so unfair. Al should have become a politician and run for office. He'd still be living large.
May 1, 2009 at 6:36 a.m. ( permalink | suggest removal )
postman01 (anonymous) says...
I went to PG with Al. Then we move on to college. We knew soething about him wasn't right once we were in college at the C of C. Now, all these years later, it's intersting to realize how acute our sense of him really was. He was way worse than we had any way of knowing.
May 1, 2009 at 6:44 a.m. ( permalink | suggest removal )
AMAZING (anonymous) says...
SC Retirement System HAS LOST OVER TEN BILLION $10,000,000,000.00
FOLLOW THE MONEY
11-12-2007
Bob Borden, chief investment officer of the South Carolina Retirement Systems Investment, overseeing the state's $30 billion in public retirement assets are now investing in roughly a dozen new asset classes - and moving more than $20 billion into a combination of portable alpha, derivative overlay...
http://www.accessmylibrary.com/coms2/...
8-14-2008
"SC adopted a plan in February to invest as much as 45 percent of its $29 billion in hedge funds, private equity, real estate and other alternatives, from nothing 18 months ago".
http://www.bloomberg.com/apps/news?pi...
8-18-2008
COLUMBIA -" SC state pension managers see a chance for their $29 billion fund to profit from the real estate collapse that has affected much of the country."
The managers see commercial real estate as a good value, saying it could return double-digit profits for the state's current and future retirees...
But critics worry the commercial real estate market, including office buildings, malls and shopping centers, could suffer the same drop in prices that has hit home- owners, threatening money meant to pay for the retirements of tens of thousands of state workers.
Borden ...said because real estate has lost so much value in the past two years, now is the time to buy.
http://www.postandcourier.com/news/20...
10-18-2008
Officials say state pensions healthy Despite losing $2 billion in value this year as the stock market has sunk ...said the state's pension system is healthy enough to weather the storm. Pension systems, said SCRS director Peggy Boykin, are designed to withstand short-term problems with the stock market. With $23 billion in value, she said, the fund is able to meet its commitment to retirees...
12-7-2008
While state employees watch for furloughs and pink slips from St. Nick, one man is getting a $176,000 stocking stuffer. Bob Borden already makes $353,500 a year as CIO ...Now, he's getting a six-figure bonus check, which is 50% of his salary. Even though Borden's buds claim he's doing a really, really good job...
http://www.indigojournal.com/tag/Bonus
4/15/2009
"The state might be forced to look at cutting future benefits to its retirees or increasing the amount of general-fund budget dollars flowing into the fund."
...the fund has shrunk dramatically from its $29 billion high last fall to where it resides today, close to $19.5 billion. That nearly 30 percent decline was spiked last September when the fund saw a $2 billion single-day drop as the stock market collapse began in earnest.
http://www.free-times.com/index.php?c...
May 1, 2009 at 6:58 a.m. ( permalink | suggest removal )
SuzieQJones (anonymous) says...
Finally, the investors (initial source of the money) might receive some sort of return. It seems as though the attorneys and/or the receivership are the only ones making any money. I understand that the receivership is how this must be handled legally, but why is it taking so long? The people who put up the money are the last on the list. This has gone on for a long time and the money recovered is disappearing quickly.
May 1, 2009 at 7:02 a.m. ( permalink | suggest removal )
babeegurl (anonymous) says...
AMAZING is just a little bundle of news aren't you!?!?!
May 1, 2009 at 7:28 a.m. ( permalink | suggest removal )
tc2 (anonymous) says...
It is past time that "white collar" crime stop being treated as non-violent. Ask those who saved and did the right thing all their lives and are now destitute how "non violent" they feel it is.
As to the settlement proposal and having no interests in it I can objectivly say it seems fair and logical.
May 1, 2009 at 7:41 a.m. ( permalink | suggest removal )
sdr35hw (anonymous) says...
Once the lawyers get involved, everyone loses.
May 1, 2009 at 8:08 a.m. ( permalink | suggest removal )
GAL2000 (anonymous) says...
"Quote: Parish, 51, a former Charleston Southern University economist, was charged in what likely is Charleston's largest case of investor fraud. He is currently serving a 24-year prison term".
So many people were hurt by this man, but I'd like to add one very small opinion for what it's worth. How about some or all the students who had to tolerate him when he taught his classes at "CSU", and the educational teachings this man taught his students who attended his classes. I would hope that his teachings did not adversely affect some students who would attempt to use his menthods in business to try his teachings on other people out there. I went to "CSU", and learned some great teachings from some very good professors at "CSU", but there are always some professors who can be not-so-good, and have a certain impact on a student. I do recall avoiding Mr. Parish's classes when I did attend many years ago. In my opinion, I believe that "CSU" should take some responsibility also, since this school also supported him, and from what I've read over the years, also did some investments with him. If I'm incorrect on the schools involvement, please correct me on this, if I've been mis-informed...
May 1, 2009 at 8:13 a.m. ( permalink | suggest removal )
R_U_Kidding_Me (anonymous) says...
Big Al should spend a little time on "Survivor Island" with his 600 investors. What's left of him could then serve his jail sentence.
May 1, 2009 at 8:16 a.m. ( permalink | suggest removal )
hotchick (anonymous) says...
What has come to light since the initial story is that so many of the things that Parish invested in were fakes. He forked out tens of thousands of dollars on Tiffany lamps that were reproductions! He spent over one hundred thousand on a fake Renoir! Not only were investors being taken in by HIM, but HE was being taken in by a bunch of unethical New York antiques dealers. If they have the sales records from these sellers of fakes, then THE DEALERS should have to pay restitution to those people who lost their life savings. If Parish had not been caught and if he found out that they were fakes, then he would be able to file suit against the charlatans, so why wouldn't those who were managing his "estate" be able to do the same thing?
May 1, 2009 at 8:30 a.m. ( permalink | suggest removal )
BootstrapRed (anonymous) says...
And I thought my comment was mild! Guess sense of humor doesn't exist at the P&C.
May 1, 2009 at 8:36 a.m. ( permalink | suggest removal )
stephaniem (anonymous) says...
hotchick, I believe his money went overseas and as he suspected that he was going to get caught starting making fake receipts to fakes that he knew to be fake....
most of the stuff at that auction was nowhere near the worth he stated it was.....
he still has the money...
I am glad I never trusted anyone to my money although the S&P index looks interesting
May 1, 2009 at 10:55 a.m. ( permalink | suggest removal )
Lazy2009 (anonymous) says...
I want the custom Jag.
May 1, 2009 at 11:56 a.m. ( permalink | suggest removal )
postman01 (anonymous) says...
Lazy2009, wanting a material object grossly weakens your complaint. The losses people have suffered are mostly permanent. Don't forget that Al preyed on people's greed, short term thinking, and tendency to be LAZY, especially where attention to detail and DUE DILIGENCE are concerned. The speculation about he and the Mrs having a aotn of money soemwhere are pathetic. Even if true (its almost certainly not), it isn't doing Al or his wife a damn bit of good.
Think, people!!!
My punch line. Al was and is a sack of s__t. The people he duped behaved stupidly. That is how this kind of scam works.
May 1, 2009 at 12:18 p.m. ( permalink | suggest removal )
ccfromsc (anonymous) says...
Why has not the Charleston Southern University stepped and paid some of these people? After all it is the "Christian" thing to do! How many years did Al work there and the school knew about this? The school just made their president the highest paid sitting school president in the whole USA, if they can afford that then they should step up and help out pay for those that were ripped off using the schools name.
May 1, 2009 at 12:55 p.m. ( permalink | suggest removal )
eyfigueroa (anonymous) says...
{...and blacks only see the word "free" but never hear "just pay the shipping and handling"}
Thank you Harold for telling me what I do/can or don't/can't see.
*rolls eyes @ the jack*ss poster with the porn star nom de plume*
Those who lost money with Mr. Parish took a not-so-calculated risk and lost.
Sometimes you win sometimes you lose.
Now as for Mr. Parish's lack of integrity, he is serving a prison sentence and some of his assets were liquidated.
I say hopefully everyone has learned a lesson and let's move on.
May 1, 2009 at 1:47 p.m. ( permalink | suggest removal )
Lazy2009 (anonymous) says...
Postman, I just want the custom Jaguar. Can't a person want a used faux exotic car every once in a while?
May 1, 2009 at 4:15 p.m. ( permalink | suggest removal )
i1455 (anonymous) says...
When are they going to hear the case on Mr. savage?
He's the real kook!
May 1, 2009 at 5:32 p.m. ( permalink | suggest removal )
stephaniem (anonymous) says...
haroldreem,
actually some countries like switzerland allow foreign bank accounts so long as you pay the IRS.....the money is protected from civil litigation only
I suspect people like OJ simpson and other rich people have money there.
I know a couple of old timers who still remember 1930's stories of the bank crash and they buy gold and bury it in their backyard.
I admire people who can save money period...I have yet to learn that skill
May 1, 2009 at 7:05 p.m. ( permalink | suggest removal )
abitskeptical (anonymous) says...
I wouldn't mind the jag either, but I'd have to wear blinders getting in & out of it..he deserved jail time just for what he did to 'customize' that car...
May 2, 2009 at midnight ( permalink | suggest removal )
hooveryankee (anonymous) says...
Show me the money...
May 2, 2009 at 1:41 a.m. ( permalink | suggest removal )
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