Posted on 05/19/2009 8:32:32 AM PDT by library user
Sorry for the vanity, but received an unexpected check in the mail from "Bear Stearns Distribution Fund" today. The check and the letter are dated May 15, 2009.
Has anyone heard of this? They set up a web site at http://www.bearstearnsfairfundsettlement.com/ - just trying to make sense of it all, since the fund they mention (Credit Suisse Japan Equity Fund) is something I am not aware of, let alone ever purchased any shares of.
With the check is a letter which states
"CAUTION: Before you deposit or otherwise negotiate this check, it is very important that you understand the tax implications that may arise in connection with this payment. To this end you may access and review the Statement to Eligible Investors located at http://www.bearstearnsfairfundsettlement.com/."Apparently, Bear Stearns got busted for market timing and/or late trading, earlier this decade, and that's the reason for this distribution to investors.
From Wikipedia:
A scandal erupted in the United States in 2003 where some mutual funds "secretly" allowed select investors to rapidly trade the portfolio despite statements banning the practice in the prospectus. The scandal did not involve market timing per se, and market timing is not itself illegal. The scandal involved permitting selected investors to make frequent and repeated trades during the day while permitting general investors to trade only at the close of business, which permitted the favored investors to take advantage of market timing strategies. A double standard that favors one investor at the expense of another is illegal and undermines the credibility of the industry"[5] In this instance, the market timing frequently involved predictions of the performance of how international markets would respond to the day's trading in the US. This scandal also involved late trading.
You sure the check is genuine?
Remember, if you cash that check you are also giving up any claim on future litigation against them. Check w/ your attorney and/or accountant.
Pretty sure — it’s got a watermark and I googled the Fund Administrator’s name (Roger Krogman) and his name shows up on some Minnesota state web sites as being some sort of Treasurer. Although above my name on the letter is the word “presorted.” You wouldn’t think these things would be classified as presorted mail, would you?
I don't know, honestly. Scammers tend to be very good at making mail look legitimate. I always tend to be very, very suspicious of someone sending me checks in the mail.
OK, will do. Thanks. Think I will do some more googling on this as well. Might be some sort of class action thing I don't know about, and then, as you say, you cash the check and you can forget about getting on board, at that point.
Me too -- this is the first check I've gotten in the mail in at least 3-5 years. And all the one's prior were fakes.
I get checks from Household Bank all the time. The fine print on the back of the 9.99 check lets them sign me up for a buyers club for only $79.00 a year (virtually pennies a day!).
I always wonder, aside from shredding or burning it, what stops scammers from going through your junk mail and cash all of these checks at check cashers at your expense.
Checking with your attorney seems to me to be a very bad idea. You’re very likely to be billed more than the $20 you would get by cashing the check.
Read any fine or light-ink print that may be on the front or back.
Sometimes businesses print ‘conditions’ that could be a subscription or similar cost on the check. Then, if you endorse it, that becomes the signature for the product/service and period fee.
Presorted just means that they put them in proper zip code order and bundled them into regions for the post office. They get a discount from the now 44¢ postage for doing half of the post office's work for them. I just checked a brokerage envelope I had and it has "presorted" printed on the envelope instead of the part of my statement which shows through the envelope window.
Be sure to read all the fine print if you haven't already.
I just burn them in the fireplace. It is my way of contributing to global warming :)
Yes, got one of those yesterday myself. I believe it is a settlement from a mutual fund for trading practices; think I got some info on this in the past. I put it aside to go through my files and see. IIRC, it was a PBHG fund.
Might be a scam.
Much like the fake checks sent out by ‘secret shoppers’ scammers.
If you didn’t have dealings with Bear Stearns, doubly obvious there is something fishy.
Got a check from them for $85 reference Kinetics Internet Fund. No idea why. Probably should be for $85 million at least.
I think it’s part of Bambi’s free money.
LOL. Yeah, I'll keep that in mind. :O)
Yeah, I did have a 401(k) that I cashed in back in 2002 or so. Never thought about that. Thanks for the post.
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