CLEVELAND, April 25, 2014 /PRNewswire/ -- On Wednesday, April 24, 2014, following an 8-year long battle, 105 victims of a Ponzi Scheme, perpetrated by David Dadante, learned that they would recover more than 100 percent of the money they invested, plus an additional 10 percent.
Receiver Mark Dottore, represented by Rob Glickman of McCarthy Lebit Crystal & Liffman Co., LPA and co-counsel Bob Rapp was charged with attempting to recover the more than $28 million stolen from investors of the IPOF Fund, L.P., a defunct private equity fund that was actually a Ponzi scheme operated by David Dadante.
Over the past eight years, the Receiver and his legal team brought legal action against numerous brokerage firms, a law firm, a commercial bank and others to recover money that was lost due to their actions or inactions involving Dadante. They also negotiated terms with a publically traded company whose stock was held in the Receivership and had been manipulated as part of the Dadante fraud.
To date, the Receiver and his legal team have recovered $47 million in cash and negotiated the release of $12 million in margin debt that was owed by the IPOF Fund. This approximate $59 million recovery in a Ponzi scheme that cost the investors $28 million is unprecedented in cases of this type. Even after all fees, costs, and expenses are paid the investors will receive or have received distributions that total 110% of their original investment with additional distributions to be made in the future. Further, the Receiver continues to prosecute an action against a commercial bank and expects to obtain another recovery for the benefit of the victims of the Dadante fraud.
The case is remarkable in that most people who are victimized in such situations rarely recover their investments, let alone actually receive a profit.
About Robert T. Glickman: Prior to joining McCarthy, Lebit, Crystal & Liffman, Rob served as an Assistant Cuyahoga County Prosecutor in the Major Trial Unit wherein he was responsible for handling aggravated murder, white collar crime, and other high profile cases. He tried one of the first cases in the community that was televised on Court TV and received a subsequent featurette on Dateline NBC. Mr. Glickman has been recognized by Ohio Super Lawyers since 2009, and as one of the Top 100 Trial Lawyers in Ohio by the National Trial Lawyers Organization. Since 2010, Rob has been selected by his peers for inclusion in The Best Lawyers in America© in the fields of Bet-The-Company Litigation, Mergers and Acquisitions Litigation, Labor and Employment Litigation, Criminal Defense, and Commercial Litigation.
About McCarthy, Lebit: Daniel R. McCarthy founded McCarthy, Lebit, Crystal & Liffman Co., L.P.A., in 1959 to serve clients in matters involving tax consulting, compliance and litigation. At McCarthy, Lebit, Crystal & Liffman Co., L.P.A., we help our clients navigate their most challenging obstacles. Our clients enjoy unparalleled access to skilled professionals whose focus is to obtain outstanding results through a superior level of dedication and client service.
SOURCE McCarthy, Lebit, Crystal & Liffman, Co., L.P.A.