scammedbypearlman.com

[Tess]

Good questions.

I can only guess about number 1, but I would say because getting sued like that was extremely scary & threatening. Maybe they thought people would just hand the money over out of fear. Perhaps they thought they would win legally because the law was on their side, however, the sense of fairness was not.

For question 2, we don't. That was the first thing I asked. The court does not allow for reimbursement of attorney's fees in this case. You do hear about some cases where the loser pays the winner's legal fees. Apparently, this is not one of them.

[Ray]

Thanks Tess, I received the letter. It does beg a few questions:
1- Why did they spend all the legal fees to file the adversary motions only to excuse them after 5 or 6 months?
2- How do those adversaries that engaged attorneys to defend their position recover those fees?

[Tess]

It was dated Oct 30, 2009. Did anyone else get one too? This is only a portion of the letter that I found to be the most important for our interests:

Quote:
"On October 29, 2009, the Bankruptcy Court approved a settlement and compromise between me, as chapter 11 trustee, and the Eligible Defendants in numerous of the EISA Cases and the TCTS Stock Cases, which settlement and compromise includes efficient and streamlined omnibus procedures to implement such settlement and compromise. As part of such procedures, I, as chapter 11 trustee, have agreed to dismiss certain of such lawsuits in exchange for the Eligible Defendants therein agreeing to a procedure for determining the allowed amount of each such Eligible Defendant's claim in these bankruptcy cases and the manner in which distributions will be made on those allowed claims (if and to the extent that there are any assets available for distribution). As an Eligible Defendant in either an EISA Case and/or a TCTS Stock Case, you may elect, but are not required, to participate in these procedures and have the lawsuit against you (or a portion of that lawsuit) dismissed.

As provided by law, in the adversary proceedings, I have been seeking recovery of both fictitious profits and what may be considered a return of the principal invested. The dismissal procedures will allow dismissal of certain claims with respect to what may be considered a return of the principal invested in the EISA Program and the TCTS Stock Program. Specifically, absent the receipt of the Opt-Out Notice, I, as chapter 11 trustee, will file a notice of dismissal of such adversary proceeding in accordance with the following criteria:

a. If the EISA Case or TCTS Stock Case in question sought only the recovery of transfers that constituted the return of principal, then I, as the chapter 11 trustee, will dismiss the entire adversary proceeding as to that Eligible Defendant.

b. If the EISA Case or TCS Stock Case in question sought the recovery of transfers which constituted both the return of principal and fictitious profits, then I, as the chapter 11 trustee, will file an amended complaint to withdraw allegations seeking the recovery of transfers which constituted the return of principal as to that Eligible Defendant. (For avoidance of doubt, I, as chapter 11 trustee, am not waiving any claim for profit through these procedures) .

c. If the EISA Case or TCTS Stock Case in question sought only the recovery of transfers that constituted the return of fictitious profits, then such EISA Case or TCTS Stock Case would proceed in its entirety."
End Quote

Good Luck Everyone!

[Ray]

Has anyone heard about the outcme of the settlement offers?