Retireby45ish
Recycles dryer sheets
- Joined
- Dec 8, 2018
- Messages
- 209
A few years ago before finding this board I invested in a fund that did lending to small businesses.
Long and sad story short it went south after a few years of nice returns. it was a 900M fund that turned into a Ponzi scheme by the greedy founder.
My question is a bit complex.
I had invested taxable funds. Let’s call the amt 200k to make the math easy.
I then withdrew those funds and deposited the same amount through an IRA. So withdrew 300k (100k gain after 5 years) and put in 300k of different IRA money account I had. These were not same funds but I did the swap at the same time.
So now, a month later, the fund goes under and loses like 80%. They are trying to get more back for investors.
So now I get a letter saying “hey you banked a 100k profit so we want 50% of that back if you pay us in 30 days or else we will litigate for the full amt”. They said they treat IRA and my other account as separate entities (which is insane) so they do not offset even though they said tax id numbers would be used to aggregate those with multiple accounts. I’ve reached out to see why these accounts aren’t treated as offsetting since I’m the holder of both. They are clawing back money from me to pay me in my other account. Thought of the 50k I’ll probably get less than a penny of that back on the other IRA side.
What should I do?
I worry that paying an attorney to fight it might cost me enough where it’s worth just sending in 50k. I might ask for 25k settlement instead to see if they come down. But I doubt it.
Anyone know any lawyer that might give me some thoughts?
Thanks in advance for any help.
Lesson on diversification learned. This has been the saddest financial decision of my life. I didn’t get to write off losses in IRA and I paid taxes on all gains.
Long and sad story short it went south after a few years of nice returns. it was a 900M fund that turned into a Ponzi scheme by the greedy founder.
My question is a bit complex.
I had invested taxable funds. Let’s call the amt 200k to make the math easy.
I then withdrew those funds and deposited the same amount through an IRA. So withdrew 300k (100k gain after 5 years) and put in 300k of different IRA money account I had. These were not same funds but I did the swap at the same time.
So now, a month later, the fund goes under and loses like 80%. They are trying to get more back for investors.
So now I get a letter saying “hey you banked a 100k profit so we want 50% of that back if you pay us in 30 days or else we will litigate for the full amt”. They said they treat IRA and my other account as separate entities (which is insane) so they do not offset even though they said tax id numbers would be used to aggregate those with multiple accounts. I’ve reached out to see why these accounts aren’t treated as offsetting since I’m the holder of both. They are clawing back money from me to pay me in my other account. Thought of the 50k I’ll probably get less than a penny of that back on the other IRA side.
What should I do?
I worry that paying an attorney to fight it might cost me enough where it’s worth just sending in 50k. I might ask for 25k settlement instead to see if they come down. But I doubt it.
Anyone know any lawyer that might give me some thoughts?
Thanks in advance for any help.
Lesson on diversification learned. This has been the saddest financial decision of my life. I didn’t get to write off losses in IRA and I paid taxes on all gains.
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