Basket case for sure. 
In another post (way back when) someone said that pensions are kinda set. Something about government regulations which prevent pension monies exceeding a set amount. Without the governmental limitations and without the crooks our retirement future would be really healthy.
The regulations limiting retirement income, plays right into these bad investments and those who line their pocket with them. How do we begin to change that? How do we ensure every penny thats contributed has the potential to come back at retirement?
CCWIPP & Case Financial: Great investment or basket case?
Here's another recent investment courtesy of the Trustees of the Canadian Commerical Workers Industry Pension Fund. There are a few things about this deal that I think raise some questions.
quote:
SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Dec. 17, 2002--Case Financial, Inc. (OTCBB:CSEF) announced today that the Company has closed $2 million in long-term financing from I.F. Propco Holdings (Ontario) 32 Ltd, an investment company associated with the Canadian Commercial Workers Industry Pension Plan (CCWIPP). The investment is in the form of four-year debentures bearing interest at 12% along with warrants to purchase two million shares of common stock at $0.50 and one million common shares at $0.80. Both warrants have a four-year term.
Eric A. Alden, co-chairman and CEO, said that, "I.F. Propco and CCWIPP looked very closely at our Company and the emerging markets we serve, agreed with our vision, and decided to invest in us to help accelerate our growth. Source
CCWIPP sunk $2 million into this California outfit that is in the business of giving people money so that they can sue other people. Notice that I said "giving" and not "loaning"? That's because the money isn't a loan (which has to be paid back). The company, called Case Financial, only gets its money back if the plaintiff wins or settles. That seems to be a risky proposition. In fact, Case Financial'sweb site acknowledges how risky it really is.
quote:
Cash Advance Program
CASE FINANCIAL provides cash advances to personal injury plaintiffs. The company was formed to offer personal injury clients the ability to pay their bills while their cases are ongoing. We provide cash advances to plaintiffs awaiting trial or settlement.
Who is eligible?
Over 95% of personal injury plaintiffs are eligible for a cash advance. The only requirements are (a) the plaintiff must be represented by an attorney (b) the attorney has established that there is insurance coverage for the accident; and (c) there is proof of liability and damages.
Are there credit checks or other time consuming procedures?
No. Case Financial makes cash advances to personal injury plaintiffs on the merits of the case only.
There is no application fee
No credit check is required
No employment verification
No monthly payments
No re-payment until the case is won or settled!
Do I have to pay back my cash advance if I lose my case?
No. Case Financial advances are non-recourse. This means that if you lose the case, the advance made to you by Case Financial is yours to keep.
Doesn't Case Financial face a great risk by advancing plaintiffs money?
Yes! Our risk is the plaintiffs reward. We do not get repaid if the plaintiff loses his or her case.
OK, this might be a great idea for people who want to file a personal injury lawsuit, but is it a great investment for CCWIPP members?
From itssecurities filing we also learn that Case Financial is the latest incarnation of Asia Web, which was an incarnation of Acubid which was an incarnation of Web Galaxy which was a company owned by an ex-UFCW big shot named Tom McNutt. CCWIPP pumped about a half mil into McNutt's enterprise and lost it all. What they're doing funding some California-based offshoot is a mystery.
Elsewhere in the filing, we learn that the $2 million dollar loan is "uncollateralized" which I take to mean "unsecured".
CCWIPP owns 21% of the biz too, I guess that's enough reason to loan it unsecured millions.
The financial statements included in the filing show that Case posted a $2.5 million loss for the first 9 months of 2002 and a loss of about 2 mil the previous year.
In addition, the company boasts of its non-union status. I wonder if that one of the things that the CCWIPP boys considered when they made their decision to invest.
What did they consider? Well we don't know. But if you go to the section of the 2002 filing you'll see a section called Factors that May Affect Future Results. It would be worth asking them if they considered each one and what they concluded.
quote:
Exactly.
What I want to know is where are all the PO'd UFCW members?
Time for a good ole' bloodletting in the CCWIPP methinks.