SOWPub Small Business Forums  
 

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Ordinary housewife makes $500,000+ a year in her spare time, using a simple idea, and her driveway!"

NO BLATANT ADS PLEASE
Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here

 

Go Back   SOWPub Small Business Forums > Main Category > SOWPub Business Forum
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

SOWPub Business Forum Seeds of Wisdom Forum

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #7  
Old September 21, 2013, 11:20 PM
Dien Rice Dien Rice is offline
Onwards and upwards!
 
Join Date: Aug 2006
Posts: 2,526
Default Re: Jim Straw passed away on Dec. 3, 2012

Quote:
Originally Posted by axis99 View Post
Readers might want to look at this, don't know if legitimate look at third paragraph under civil proceedings.

http://www.sec.gov/news/digest/1992/dig031792.pdf
Of course, Jim Straw is not here any more to speak for himself...

I had a look into this, to the degree I can...

The main claim by the SEC against First American Bank Limited (FABL), which Jim Straw was part of at the time, seems to be the claim that information given to investors was false or misleading ("misrepresentations and omissions"). [1]

There is a journal called the Blue Sky Law Reporter, which comments on state securities law cases. They reported on this case. Unfortunately, I can only see snippets of their report (via Google Books).

The Blue Sky Law Reporter reported the following.

"Mr. Straw also answered the Security Bureau's allegations of fraud arguing that no investor has lost money and that he had pledged his own assets to guarantee his depositors' accounts." [2]

Another sentence says...

"Mr. Straw produced a document of trust placing all his assets, present and future, in trust for the benefit of depositors of FABL upon his death; upon the voluntary liquidation of the bank; or upon the governing body regulating the bank entering an order of insolvency against the bank." [2]

Another interesting passage from the Blue Sky Law Reporter is the following.

"In this particular instance, this Administrative Law Judge must agree with Mr. Straw. The analysis would be different if these savings accounts or certificates of deposit were valued in gold or a foreign currency whose value could fluctuate with the market, but here it is evident that these securities do not have a value beyond that of the money the depositor places in them and the steady accumulation of interest. The securities by their nature are not subject to resale at a quick profit due to some increase in value for reasons other than further deposits of the investor. To adhere to Mr. Long's test would be to sacrifice substance to form." [2]

Anyhow, this complicated comment (which I don't fully understand) suggests that this is may possibly not have been a cut-and-dried case, at least not in all its aspects.

Since there were no monetary damages awarded against him (as the damages were waived) [1][3], it probably made no sense to appeal, since that would have cost a lot of money in itself (even if he ended up winning).

It sounds like no investors lost any money, and maybe that's also partly why there seems to have been no effective penalty either, as far as I can see (except that they had to close down the bank).

I prefer to give the benefit of the doubt, and perhaps put it down to a venture that didn't quite go as planned.

Just some thoughts.

Best wishes,

Dien

[1] http://www.sec.gov/news/digest/1994/dig032494.pdf - see under "Civil Action Filed Against Harry Hone"

[2] http://books.google.com.au/books?id=...ed=0CC4Q6AEwAA

[3] http://www.legalmetric.com/cases/sec...92cv00056.html

Last edited by Dien Rice : September 21, 2013 at 11:42 PM.
Reply With Quote
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Other recent posts on the forum...


Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | The Great Ideas Letter on CD | Hotsheet Profits | The Art of Leverage | The Success Report | Persuade via Remote Influence | Writer's Friend (software) | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine) | The Fly Low Collect Dough Update Hotline

Get the report on Harvey Brody's Answers to a Question-Oriented-Person


All times are GMT -4. The time now is 09:25 AM.


Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.