baseball managers – Timo Thompson http://timothompson.com/ Tue, 10 May 2022 04:13:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://timothompson.com/wp-content/uploads/2021/10/icon-60-120x120.png baseball managers – Timo Thompson http://timothompson.com/ 32 32 Venezuela settles $1.2 billion creditor claim to protect Citgo https://timothompson.com/venezuela-settles-1-2-billion-creditor-claim-to-protect-citgo/ Fri, 07 May 2021 04:38:40 +0000 https://timothompson.com/venezuela-settles-1-2-billion-creditor-claim-to-protect-citgo/ (Reuters) – Cash-strapped Venezuela has settled a $1.2 billion arbitration claim that will prevent a creditor from stripping its foreign asset, the crown jewel, U.S. refiner Citgo Petroleum Corp, according to Canadian court documents. FILE PHOTO: PDVSA’s Citgo Petroleum U.S. refinery is pictured in Sulfur, Louisiana, U.S. June 12, 2018. REUTERS/Jonathan Bachman/File Photo The deal […]]]>

(Reuters) – Cash-strapped Venezuela has settled a $1.2 billion arbitration claim that will prevent a creditor from stripping its foreign asset, the crown jewel, U.S. refiner Citgo Petroleum Corp, according to Canadian court documents.

FILE PHOTO: PDVSA’s Citgo Petroleum U.S. refinery is pictured in Sulfur, Louisiana, U.S. June 12, 2018. REUTERS/Jonathan Bachman/File Photo

The deal with Crystallex International Corp suspends the Canadian mining company’s efforts for a court-ordered auction of Citgo control as a way to collect an arbitration award against Venezuela that has reached more than $1.4 billion with interests. Citgo is based in Houston, Texas.

Venezuela made initial payment of $425 million, mostly in the form of ‘cash securities’, on November 23, according to a filing in the Ontario Court of Justice, where Crystallex sought creditor protection. in 2011.

Part of the payment was made in bonds issued by Venezuela and its state oil company, PDVSA, according to a source in the Venezuelan financial sector with knowledge of the matter.

Venezuela has agreed to pay the remainder in installments by early 2021. If Venezuela fails to post security by January 10 for the remaining payments, Crystallex may resume legal action.

A U.S. judge in Delaware was scheduled to hear Crystallex’s arguments for a Citgo court-ordered auction on December 20. The company’s three U.S. refineries are a key destination for crude exports from Venezuela, and Citgo has been valued in the billions of dollars.

Venezuela managed to protect Citgo even though the country was crippled by an economic crisis and US sanctions, and halted payment of tens of billions of dollars in debt. Caracas made payments last month to investors who hold bonds secured by Citgo shares.

Venezuela expropriated a Crystallex gold mining project in 2011, leading to the 2016 arbitration award. Crystallex and Venezuela reached an agreement last year, but Caracas failed to maintain payments after transferring $75 million.

As Venezuela’s defaults piled up and U.S. sanctions isolated the country, creditors moved closer to PDVSA’s foreign assets.

ConocoPhillips said in October it received $345 million in the third quarter from PDVSA as part of a four-year deal to settle a $2 billion arbitration award stemming from the loss of assets in a nationalization drive. in 2007.

Rusoro Mining Ltd reached an agreement with Venezuela in October. The Canadian mining company began suing Citgo this year to collect a $1.3 billion arbitration award over the nationalization of its gold assets in the country.

Reporting by Tom Hals in Wilmington, Delaware; Additional reporting by Corina Pons in Caracas; Editing by David Gregorio

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Leggings Company LuLaRoe Settles Pyramid Scheme Allegations – https://timothompson.com/leggings-company-lularoe-settles-pyramid-scheme-allegations/ Fri, 07 May 2021 04:38:40 +0000 https://timothompson.com/leggings-company-lularoe-settles-pyramid-scheme-allegations/ LuLaRoe settles his lawsuit with the Washington Attorney General. LuLaRoe, a California-based leggings company — perhaps better known as the multi-level marketing firm — has paid $4.75 million to settle the case of the Washington state attorney general, Bob Ferguson. allegations it worked like a pyramid scheme. LuLaRoe sells its wares through a network of […]]]>

LuLaRoe settles his lawsuit with the Washington Attorney General.


LuLaRoe, a California-based leggings company — perhaps better known as the multi-level marketing firm — has paid $4.75 million to settle the case of the Washington state attorney general, Bob Ferguson. allegations it worked like a pyramid scheme. LuLaRoe sells its wares through a network of independent retailers who are able to directly recruit others to sell the products.

Ferguson filed a lawsuit against the company and its executives, including co-founders Deanne and Mark Stidham, two years ago, claiming LuLaRoe’s business plan was misleading in that it returned work as an independent retailer selling leggings far more profitable than it really was. In reality, ICs earned next to nothing, while two executives at the top of the chain pocketed millions over the three-year period from 2016 to 2019. Many more who invested found themselves with significant debt and unsold inventory that was unredeemable due to what he called a “misleading refund policy”.

Photo by Aexandra Tran on Unsplash

Ferguson revealed that $4 million of the settlement will be distributed to approximately 3,000 state residents who were recruited under the guise of starting their own profitable businesses. “LuLaRoe tricked Washingtonians into signing up to his pyramid scheme with misleading claims and false promises,” Ferguson said. “As a result, thousands of people lost money and two people made millions through their scheme. Washingtonians deserve fairness and honesty, and accountability for those who break the rules.

He added: “While we thought we would eventually win the case – whether at trial or on a subsequent appeal – the expense would be enormous and the time senior management would have had to spend on litigation during the trial would have been a distraction from our business.

In a statement following the regulation, the AG’s office said, “Every Washington retailer who lost money under LuLaRoe’s pyramid structure will receive restitution.” And, Ferguson said, “LuLaRoe’s structure violated the state’s anti-pyramid law, which defines companies as pyramid schemes if they offer the opportunity to earn compensation primarily through recruitment, rather than sales.” by retail”.

In A Business Woman’s Tale, Katie Willis shares her journey as a LuLaRoe consultant. She paid $10,000 to join in April 2016, estimating she had around $80,000 in inventory when she was fully focused on the business and was making around $12,000 to $18,000 in sales. each month. However, just two years later, in 2018, Willis said she had about $50,000 in credit card debt with her company and was forced to cash in her 401(k) for the refund. She ended up with 3,000 pairs of LuLaRoe leggings in her house and had to sell her last 500 pieces for a dollar each just to get rid of them.

The company denied any wrongdoing in a consent decree. However, the settlement prohibits LuLaRoe from operating a pyramid scheme in the future and requires the retailer to be more transparent about its business practices, including mandatory publication of a tax return detailing specifically how independent contractors could earn income. the money and the risks involved.

Sources:

LuLaRoe to pay $4.75 million to settle pyramid scheme lawsuit

LuLaRoe pays over $4 million to settle a lawsuit that alleged he ran a pyramid scheme

Millennial women have made billions from LuLaRoe. Then they paid the price.

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Bayer: 3 ways to rate the company (OTCMKTS: BAYRY) https://timothompson.com/bayer-3-ways-to-rate-the-company-otcmkts-bayry/ Fri, 07 May 2021 04:38:38 +0000 https://timothompson.com/bayer-3-ways-to-rate-the-company-otcmkts-bayry/ A few notes on Bayer modeling As my readers know, I don’t believe much in role models. Still, I do a lot of modeling to improve my understanding of the dynamics involved and the key issues. While many investors look at the last row of their spreadsheet to inform their decisions, I primarily look at […]]]>

A few notes on Bayer modeling

  1. As my readers know, I don’t believe much in role models. Still, I do a lot of modeling to improve my understanding of the dynamics involved and the key issues. While many investors look at the last row of their spreadsheet to inform their decisions, I primarily look at the structure of the spreadsheet to understand what the last row depends on.
  2. Bayer (OTCPK:BAYRY, OTCPK:BAYZF) does not indicate exactly how much it has already spent on each restructuring initiative and what savings these initiatives have already generated. What we know is only how much was spent in each quarter on all the restructuring initiatives combined, and we still get clues about the overall good progress of the most important program (started following the acquisition of Monsanto). Therefore, we cannot project an accurate flow of expenses and savings.

Adjusted EPS projection

This is the “quick and dirty” method. We take the original Bayer projection Investor Day 2018 drag and apply some tweaks:

We now know what the company told us last week, i.e. the recently adjusted outlook for 2020 is confirmed, but 2021 sales are expected to be around 2020 levels, while 2021 basic earnings per share are expected to be slightly below 2020 levels. of 2020 at constant exchange rates. Thus, we can adapt the projection, include two flat years, and simply shift the achievement of the €10 EPS target by two years to the right (or by three years, to be more cautious).

While this would clearly provide a great argument to buy the stock, it would be seriously flawed:

  1. These are adjusted numbers. Whether Bayer pays €10 billion or €80 billion for Roundup settlements has no effect on these numbers.
  2. Watching EPS just ignores the debt and the related risks.
  3. Ironing your shirts and then putting them in the washing machine produces a different result than washing your shirts first and then ironing them. Thus, the exact sequence of cash flows is important. Will Bayer go into debt first before it can recover money? Our model tells us nothing about this.

One thing the slide actually tells us is that the synergies will simply offset the projected cost inflation. Thus, the objective of the restructuring program is to maintain costs close to stability despite growth. This, however, should be part of every leadership’s daily routine. The announcement of a “restructuring programme” is often just a fancy way of shifting attention to savingswhile announcing other costs – which immediately disappear from the “adjusted” result.

Sum of parts

The SOTP valuation has always represented the “pie-in-the-sky” scenario for Bayer, since all of its individual business units deserve a premium multiple. However, that would assume there is a chance of Bayer splitting into three companies – which I think is highly unlikely.

That said, we can still do a SOTP with modest multiples to find a valuation at the bottom for a breakout scenario, where Bayer must separate in order to stay alive.

millions of euros

Adj. EBITDA (last 12 months)

Many

Value

Medications

5,979

8

47,832

The science of crops

5,408

ten

54,080

Consumer health

1,070

12

12,840

Business

(360)

ten

(3,600)

Total

12,097

9.2

111 152

Less: net debt

(36,000)

Net value

75 152

Per share (€)

76.45

This exercise tells us that even taking into account a steep patent cliff and, therefore, applying a very low multiple for the pharmaceutical business, we still obtain around 50 billion euros of value for this segment. An equally modest multiple for the Consumer Health unit adds another ~13 billion euros. Thus, Bayer without CropScience still worth ~€24/share (€60 billion EV minus €36 billion net debt, divided by 983 million shares outstanding). Therefore, we only need the Crop Science business worth around 22 billion euros to justify the current share price of 46 euros. This represents a multiple of 4x EBITDA. While the company certainly has its risks, I suspect that for such a multiple it would find a private buyer tomorrow.

This exercise therefore highlights how cheap Bayer is relative to private market valuations. Again, this tells us nothing about the path to realizing value. Until then comes a tough time where cash flow is tied up in settlements and Bayer needs to save every penny. In theory, once the company crosses the river, they’ll be fine, but it’s unclear if they have a boat, a life jacket, or know how to swim at all.

Finally, in an emergency, Bayer could be forced to use Pharmaceuticals’ cash flow to save Crop Science, which would reduce the value of the Pharmaceuticals segment just to keep Crop Science’s value from going negative.

Cash flow model

The apparent accuracy of these models can easily deceive us, so we must bear in mind how many different assumptions they are being built on and that reversing just one of them could bring down our case. investment as a cookie. I will explain my main assumptions below.

In addition, Bayer has already announced further divestments and its intention to proceed with small-scale mergers and acquisitions. This means that the model is necessarily very imprecise. And it will certainly be denied.

That said, it can still tell us some key conditions for Bayer to find a path to real cash generation (not “before special items”) and debt reduction.

Hypotheses:

  • Xarelto patent cliff: Xarelto will represent more than 50% of EBITDA in 2023, and two-thirds of it will disappear within 2 years, partially offset by the growth of other drugs.
  • Overall pharmaceuticals will grow by 10% per year from 2020 to 2023. The company forecasts a V-shaped recovery from the pandemic. (Key assumption: very little impact from COVID in 2021.)
  • Crop Science will be so down in 2021 that despite the growth of the other two segments, total EBITDA in 2021 will be stable, after which it will increase by 10% per year.
  • Consumer Health is growing by 4% per year.
  • Capex remains stable.
  • The large Roundup settlement will remain around 12 billion euros in total and will be paid over three years.
  • Other special items that affect cash flow are significant restructuring expenses. I do not take into account the additions to EBITDA of these restructurings, only the fixed costs. I also expect restructuring to continue beyond 2023, albeit at lesser levels.
  • No one can guess how all of this will affect taxation. To be on the safe side, I have included the growth in tax payments over the forecast period.
  • Free cash flow after special items and dividends is provided to assess what is left for growth initiatives or debt repayment. Until 2023, it will be very little.
  • However, my model shows around €13 billion of total available cash in 2023-2025, which will likely be used to buy some growth, which could more than offset the Xarelto patent cliff. Assuming Bayer manages to acquire ~€500m of FCF, 2025 FCF could indeed be stable relative to 2024. So far my model not included any additional income from these growth expenses.

Overall, I think realistic expectations for 2025 could be around €8/FCF share, with very sustainable leverage around 2x Adj. EBITDA and earnings growth in the low to mid range thereafter. This would probably be worth a trading multiple of 16x-20x FCF. Thus, in 2025, a share should be worth between €128 and €160 (~3x compared to the current price). At mid-term, this would represent an EV of ~€170 billion, for an EV/EBITDA multiple of around 12.

Bayer would be past its Xarelto patent cliff and close to losing Eylea’s exclusivity (which, however, shouldn’t result in a significant and immediate loss of revenue, as an injection into the eye creates probably greater brand loyalty).

Acquiring Monsanto would outgrow its primary risks and begin to deliver its benefits.

Obviously, the whole projection depends on the Roundup settlement: how much will be paid, when and if it will also resolve all future cases – these are the key questions.

A higher than expected settlement could have a serious impact on growth investments or even cripple the business. On the other hand, even a slightly higher amount combined with a much slower payment schedule could actually be very helpful.

At the end of the line

Bayer is cheap without a doubt, but there are significant risks. Although I usually manage a concentrated portfolio, I will not make Bayer a large position. Since lawyers and plaintiffs have no interest in putting the company out of business, on a probabilistic basis, it’s a smart bet. However, size your position carefully.

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Mark Rothko’s son takes a stand at Knoedler trial https://timothompson.com/mark-rothkos-son-takes-a-stand-at-knoedler-trial/ Fri, 07 May 2021 04:38:37 +0000 https://timothompson.com/mark-rothkos-son-takes-a-stand-at-knoedler-trial/ When Christopher Rothko, the son of Mark Rothko, appeared in United States District Court in Manhattan on Monday to testify in the Knoedler & Co. fraud trial, he was presented with a document claiming he had “recognized” a painting as a work. By his father. It was a document that the gallery had used to […]]]>

When Christopher Rothko, the son of Mark Rothko, appeared in United States District Court in Manhattan on Monday to testify in the Knoedler & Co. fraud trial, he was presented with a document claiming he had “recognized” a painting as a work. By his father. It was a document that the gallery had used to convince potential buyers of the authenticity of the work. Rothko rejected the document, saying he never authenticates artwork.

Rothko, along with art historian David Anfam (author of the catalog raisonné Mark Rothko) and plaintiff Eleanore De Sole, were the three witnesses who appeared at trial on Monday in the lawsuit brought by Domenico De Sole and his wife Eleanore against Knoedler & Company and its former director and president Ann Freedman for selling them a fake artwork allegedly by Mark Rothko.

The lawsuit is the only one in a series of fraud suits brought against a trove of Abstract Expressionist works the gallery sold after buying them from Long Island dealer Glafira Rosales. They supposedly came from the son of a secret Swiss collector. The gallery settled out of court with other defrauded buyers.

While Rothko conceded that he described an alleged work by Mark Rothko that the gallery offered as “beautiful”, he said he described it that way because “I didn’t want to go any further than that because I didn’t want to not be sitting here today. The courtroom erupted in laughter.

Like other witnesses, Rothko insisted that he never gave the gallery his permission to state that he authenticated the work and never discussed it. its authenticity with Freedman.

Other gallery memos claimed that Christopher Rothko had “expressed a debt of gratitude” to the gallery for its research and that he had been so impressed with a supposed painting by his father that he had recommended it for a catalog. of exposure. Rothko denied making either statement.

David Anfam.Photo: Patrick McMullan.

David Anfam.
Photo: Patrick McMullan.

Lawyers for the defendants pointed out that the Rothko heirs gave permission for one of the alleged Rothkos to be included in a calendar under their copyright. They also referenced a letter Christopher Rothko sent to Freedman, conceding that catalogs raisonnés are not necessarily complete and that other works by an artist may later be revealed.

Anfam, for its part, showed its outrage on the stand by describing what appeared to be Freedman’s efforts to exploit his expertise without his permission.

A leading expert on the artist, Anfam compiled a catalog raisonné of Rothko’s paintings in 1998. Gallery documents showed that Anfam had approved the work as authentic; he testified that he had never even seen him in person.

According to a document discussed in court, the gallery told buyers that the Rothko sold to the De Soles was to appear in a later catalog compiled by Anfam, and that another work, which was sold to the Michelle Rosenfeld Gallery for $325,000 , was should appear in an Anfam catalog of works on paper.

“It’s scandalous,” said Anfam, stressing that no such catalog was in preparation.

Anfam further pointed out that had he known the full history of the works Freedman was offering, he would have doubted their authenticity. Had he known that Rosales was supposedly selling up to thirty Abstract Expressionist paintings, he said, “it would have raised alarm bells”.

On cross-examination, Anfam admitted that it had recommended that a painting by Barnett Newman by Knoedler be acquired by the Albright-Knox Art Gallery, in Buffalo, NY, and included it in an exhibition that he had organised. He also asked for a fee to lobby the museum to acquire the canvas.

He maintained that he was not informed that IFAR had refused to authenticate any of Rosales’ works. Had he known, he testified, “it would have introduced an element of doubt into the whole matter”.

Anfam also recounted a conversation with Freedman in late 2011, after the accusations of fraud appeared in the press. Freedman tried to get him to approve a fragment of a Clyfford Still painting from the Rosales hoard for inclusion in the collection of the Clyfford Still Museum, in Denver, Colorado, where Anfam is senior consulting curator. (The painting had been burned in a vehicle fire while in transit, Freedman told Anfam.) This would have constituted proxy authentication of the work, Anfam said.

Describing his incredulous reaction, he said: “I don’t know if you have a similar expression in America: ‘That’s kinda rich’.”

Earlier in the day, Eleanore De Sole had completed her testimony.

Testimony continues on Tuesday.

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IQST- iQSTEL expects continued rapid growth in 2021 with increasing profits https://timothompson.com/iqst-iqstel-expects-continued-rapid-growth-in-2021-with-increasing-profits/ Fri, 07 May 2021 04:38:37 +0000 https://timothompson.com/iqst-iqstel-expects-continued-rapid-growth-in-2021-with-increasing-profits/ NEW YORK, April 8, 2021 /PRNewswire/ — iQSTEL, Inc. (USOTC: IQST) today released a management update highlighting the company’s fiscal 2021 operating plan. iQSTEL, is an innovative, high-growth American company providing cutting-edge telecommunications, technology, fintech and blockchain services for global markets, with a presence in 15 countries. Building on a history of providing wholesale and […]]]>

NEW YORK, April 8, 2021 /PRNewswire/ — iQSTEL, Inc. (USOTC: IQST) today released a management update highlighting the company’s fiscal 2021 operating plan.

iQSTEL, is an innovative, high-growth American company providing cutting-edge telecommunications, technology, fintech and blockchain services for global markets, with a presence in 15 countries. Building on a history of providing wholesale and enhanced telecom services to Tier 1 and Tier 2 branded telecom service providers, iQSTEL has now expanded its technology expertise to also provide high-tech solutions to the electric vehicle. (VE), liquid fuel distribution, chemical and financial services industries. Today, iQSTEL has 4 Business Divisions: Telecom, Technology, Fintech and Blockchain.

iQSTEL’s revenue more than doubled between 2019 and 2020. The company reported revenue of $18 million for fiscal 2019 and expects to soon report more than $44 million in revenue for fiscal 2020 in the forthcoming publication of the company’s audited annual financial report.

iQSTEL has forecast revenue of $60.5 million for fiscal 2021.

In addition to continued rapid revenue growth in fiscal 2021, management expects increased earnings.

iQSTEL ended the first quarter with over $2 million in cash, which puts the company in an ideal position to continue its expansion plans in fiscal 2021.

A key element of iQSTEL’s operating plan for fiscal 2021 is to invest in our current operating subsidiaries, improve their respective balance sheets, increase working capital and facilitate organic growth.

We have already increased the working capital of our subsidiary SwissLink from CHF 500,000 to CHF 1 million (CHF 1 equals USD 1.07), providing a solid foundation for SwissLink’s growth this year.

iQSTEL recently announced the deletion of all promissory notes and warrants. Dramatic debt reduction and the cost of the debt burden are contributing substantially to the improved earnings.

iQSTEL also recently announced the operational consolidation of its telecommunications operations in order to build both a unified marketing brand name (www.IQSTelecom.com), and achieve operational efficiencies, which in turn contribute to improved profits.

iQSTEL has grown both organically and through mergers and acquisitions (M&A). The company’s mergers and acquisitions campaign continues and could push revenue growth beyond current guidance of $60.5 million in fiscal 2021t. The consolidation of future acquired businesses could also contribute further to improving profit margins.

About iQSTEL Inc.:

iQSTEL Inc (OTC: IQST) (www.iQSTEL.com) is an American publicly traded company that provides advanced telecommunications, technology and fintech services for global markets, with a presence in 13 countries. The company provides services to the telecommunications, electric vehicle (EV), liquid fuel distribution, chemical and financial services industries. iQSTEL has 4 Business Divisions: Telecom, Technology, Fintech and Blockchain, with worldwide B2B and B2C customer relationships operating through its subsidiaries: Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, Global Money One and itsBchain. The Company has an extensive portfolio of products and services for its customers: SMS, VoIP, 4G and 5G international infrastructure connectivity, Cloud-PBX, OmniChannel Marketing, IoT Smart Electric Vehicle Platform, iQ Batteries for Electric Vehicles, IoT Smart Gas Platform, IoT Smart Tank Platform, Visa Debit Card, Cash Back, MNPA Mobile Number Portability App (Blockchain Platform) and Settlement and Payment Market (Blockchain Platform).

Safe Harbor Statement: Statements in this press release may be “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or other statements regarding our future business or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results could and do differ materially from what is expressed or anticipated in the forward-looking statements due to numerous factors. All forward-looking statements speak only as of the date of this press release and iQSTEL Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

iQSTEL inc.

IR US Phone: +1-646-740-0907, IR Email: [email protected] www.iqstel.com

Show original content:http://www.prnewswire.com/news-releases/iqst–iqstel-expects-continued-rapid-growth-in-2021-with-increased-profits-301265060.html

SOURCE iQSTEL, Inc.

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$1.2 Billion in Robotic Debt Settlement Issues Raised | the islander https://timothompson.com/1-2-billion-in-robotic-debt-settlement-issues-raised-the-islander/ Fri, 07 May 2021 04:38:37 +0000 https://timothompson.com/1-2-billion-in-robotic-debt-settlement-issues-raised-the-islander/ Robodebt victims have spoken out against class action lawyers, amid objections to the federal government’s offer to settle $1.2 billion without admitting legal liability. The Federal Court has heard ‘heartbreaking accounts’ of victims of the Commonwealth’s illegal automated scheme matching tax data and Centrelink to claw back social benefits which the government says were overpaid. […]]]>

Robodebt victims have spoken out against class action lawyers, amid objections to the federal government’s offer to settle $1.2 billion without admitting legal liability.

The Federal Court has heard ‘heartbreaking accounts’ of victims of the Commonwealth’s illegal automated scheme matching tax data and Centrelink to claw back social benefits which the government says were overpaid.

“If the settlement is approved, there are a large number of people who will not receive money but who will have waived their rights … and there are people here who have lost their children,” Judge Bernard said Thursday. Murphy.

Dubbed robodebt, the scheme was deemed illegal in 2019 after the Federal Court found Centrelink could not have been satisfied that the automatically calculated debts were correct.

One man, Jeremy, detailed his experience with the “targeted, punitive” program. He expressed concern that the previously proposed Commonwealth settlement allowed politicians to avoid publicly admitting that robotic debt was illegal.

He also raised concerns that Gordon Legal, the firm behind the class action lawsuit, would be the primary beneficiary.

“The government will have used the power of the state to persecute the weakest members of society and then used public funds to prevent them from being held accountable,” Jeremy said.

“In contrast, the victims will have endured tremendous stress and anxiety, which a wealthy law firm benefits from.”

Others have raised concerns about the transparency of the law firm’s costs, some details of which have not been released.

Judge Murphy said there must be “a good reason why the costs are not open for reading”.

“Having said that, I don’t see anything embarrassing,” added the judge.

Acting for Gordon Legal, Bernie Quinn QC said that while some people would not be compensated as part of the settlement, they would receive “closure”.

Jennifer Miller says robodebt played a “very big” role in her son Rhys Cauzzo killing himself about four years ago after being sued by Centrelink and debt collectors.

Ms Miller said she was pleased the money had been returned, but opposed the settlement because no one in power had been held accountable.

“The only thing I ever got was platitudes – I was shown no respect,” she told the court.

“My objection is that there was no accountability. It turned out to be an illegal process early in the play.”

Ms Miller said Centrelink sued her son despite knowing he had mental health issues and also gave private information about him to the media.

More than 500 people had objected to the settlement and many had “heartbreaking stories”, Judge Murphy said.

Another woman told the court her partner and father killed themselves after being chased by debt collectors.

“The emotional toll is absolutely ridiculous,” she said.

A man said his debt was reduced by more than $3,000 to $400 after spending six months supplying materials to authorities, but the stress he endured left him unable to work.

He said the settlement as it stood meant he would not receive compensation for his mental suffering.

“It’s shocking, isn’t it?” the man said.

“I think that’s totally wrong – I run around and they don’t believe me at all.”

Another man, 45, said he had spent a tenth of his life worrying about and dealing with his robodebt case.

It was previously revealed that the victims would receive $112 million in compensation, be reimbursed $720 million and have $400 million in illegal debt erased.

Income averaging is no longer used as the sole proof of possible debt.

The hearing to help determine the final form of the settlement is scheduled to continue Friday.

Australian Associated Press

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8 things banks need to know about Gen Z https://timothompson.com/8-things-banks-need-to-know-about-gen-z/ Fri, 07 May 2021 04:38:36 +0000 https://timothompson.com/8-things-banks-need-to-know-about-gen-z/ You might think that Gen Z — starting with people born around the turn of the current century and now between the ages of 14 and 22 — are too young to know what they really want. But recent surveys show that members of this group have strong opinions, habits and preferences that stand in […]]]>
You might think that Gen Z — starting with people born around the turn of the current century and now between the ages of 14 and 22 — are too young to know what they really want. But recent surveys show that members of this group have strong opinions, habits and preferences that stand in stark contrast to the millennials who came before them and bring them closer to their parents, grandparents and even their great-grandfathers. -parents, who grew up during the Depression.

One of the reasons for the backsliding in attitudes is that people’s views on financial matters tend to be shaped by economic events that occurred during their childhood. And the not too distant economic slump is etched in the minds of young consumers.

“The defining things in life are the things that happen in the early formative years, early adolescence and mid-adolescence,” said Bill Handel, vice president of research at Raddon Research. . “For Gen Z, that event was the financial crisis – they were 9 or 10 years old.”

The experience left them pragmatic and farsighted.

“The notion of the American dream, which was a baby boomer notion, kinda disappeared with Gen X, but came back strong with Millennials,” Handel said. “Gen Z doesn’t think this notion of the American dream is something you can count on.”

As a result, they are hardworking, debt averse, thrifty, and already saving for retirement.

Here’s a look at eight important facts about their business philosophy, banking habits, and financial service options available to them.

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Hope you didn’t throw that class action settlement check in your junk mail. https://timothompson.com/hope-you-didnt-throw-that-class-action-settlement-check-in-your-junk-mail/ Fri, 07 May 2021 04:38:34 +0000 https://timothompson.com/hope-you-didnt-throw-that-class-action-settlement-check-in-your-junk-mail/ Jacob Davies on Flickr More than 10 million consumers will receive checks in the mail as part of a multibillion-dollar lawsuit against credit card companies that allegedly overcharged travelers for overseas transactions. Just make sure you don’t throw your check away with the rest of your junk mail, Credit.com’s Gerry Detweiler warns. The settlement was […]]]>

littering


Jacob Davies on Flickr


More than 10 million consumers will receive checks in the mail as part of a multibillion-dollar lawsuit against credit card companies that allegedly overcharged travelers for overseas transactions.

Just make sure you don’t throw your check away with the rest of your junk mail, Credit.com’s Gerry Detweiler warns.

The settlement was rewarded by Visa, MasterCard and Diners Club customers who transacted in foreign currencies between February 1, 1996 and November 8, 2006.

Why this long wait? There was at least 11 appeals filed after the settlement was approved in 2009.

In the lawsuit, consumers claimed that the companies conspired to increase “currency conversion fees” for foreign travelers and that Visa and MasterCard inflated their base exchange rates before applying the fees.

This is the fifth settlement in the case, with lawsuits against Citibank and Discover still ongoing.

There is a useful site dedicated to keeping complainants informed of events surrounding the case: http://www.ccfsettlement.com.

Lengthy class action settlements are the norm for these types of massive disputes.

A Settlement Claims Administrator is appointed to handle plaintiffs’ claims and it can take years to work out the details and share the settlement pie.

Last month, eight states announced a $553 million settlement with seven tech companies accused of conspiring to drive up the prices of LCD screens used in popular electronics.

Due to the overwhelming number of plaintiffs involved in class action lawsuits, scammers like to take advantage of unwitting consumers by mailing or emailing fraudulent settlement notices.

Just be aware that unless you have actually filed a claim for a lawsuit, you should not receive any mail regarding a paycheck in the mail. Claims for the currency conversion lawsuit were due to return in 2008 and are no longer accepted.

Paychecks are like any other junk mail that’s probably piling up on your kitchen counter.

The “from” address will most likely list the name of the lawsuit – in this case, “Currency Conversion Fee Antitrust Litigation” – as well as Settlement Claims Administrator as the sender.

Discover Detweiler Publish for screenshots of what currency conversion fee paychecks look like.

If you are a claimant and have changed your address since filing your claim, contact the Settlement Administrator here:

Currency conversion fees Antitrust litigation

Settlement administrator

Box 290

Philadelphia, PA 19105-0290

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Millennials Make This Major 401(k) Mistake https://timothompson.com/millennials-make-this-major-401k-mistake/ Fri, 07 May 2021 04:38:33 +0000 https://timothompson.com/millennials-make-this-major-401k-mistake/ Participating in an employer’s 401(k) plan is a good way to set aside funds for the future, especially if your company offers generous match that helps you increase your savings. But new data from investment bank Natixis reveals that a large portion of young workers are making a major mistake on the 401(k) front: withdrawing […]]]>

Participating in an employer’s 401(k) plan is a good way to set aside funds for the future, especially if your company offers generous match that helps you increase your savings. But new data from investment bank Natixis reveals that a large portion of young workers are making a major mistake on the 401(k) front: withdrawing funds from their plans.

Specifically, 30% of millennials have taken out a 401(k) loan, while 26% have made an early withdrawal. And the reason for doing so largely comes down to personal debt, with 40% of young workers using their 401(k) to meet their ongoing obligations. If you’re considering cashing out part of your 401(k) or borrowing to deal with financial problems you’re having, you need to understand the consequences involved before you make a move you’ll end up regretting.

IMAGE SOURCE: GETTY IMAGES.

The Problem With Touching Your 401(k)

The purpose of a 401(k) is to provide you with income in retirement. Therefore, any funds you withdraw from this account during your working years won’t be available during your golden years.

Not only will you lose the principal amount that you withdraw from your account, but you will also lose the potential growth that this sum could have achieved. Imagine that your 401(k) typically generates an annual return on investment of 7% and you take out $10,000 from it at age 32. Let’s also assume that you plan to retire at age 67. Over those 35 years, that $10,000 could’ve grown to $107,000 based on that 7% growth rate, and that’s a substantial amount of money to do without.

The other problem with a 401(k) early withdrawal is that you will have to pay a 10% penalty to withdraw funds from your account before age 59½. And while there are a few exceptions to this rule make it quite difficult to qualify (and having too much personal debt is certainly not one of them). Also, unless you are saving in a Roth 401(k), your prepayment will also be subject to taxes, the exact amount of which will depend on your ordinary tax bracket. Granted, withdrawals in retirement are also taxable, but at that time you don’t have to worry about the 10% penalty.

Now, if you want to withdraw funds sooner from your 401(k), you better do it in the form of a loan. This way, you’ll avoid the aforementioned penalty and end up (ideally) replenishing those funds so you don’t run out of money in retirement.

But there are also downsides to going this route, namely that if you are unable to repay your loan on time, the amount you borrow will be treated as an early withdrawal, meaning you will be face that 10% penalty after all. Not only that, but if you borrow from your 401(k) and subsequently lose your job, you’ll only have 90 days to replenish those funds or face that dreaded 10% penalty. Therefore, while a 401(k) loan is preferable to an early withdrawal, it is certainly not without risk.

A better solution

A 401(k) is not intended to act as a bank account, so don’t treat yours as such. Instead, make an effort to build a few emergency savings so when you need cash on the fly, you don’t have to raid your retirement plan. You can do this by cutting expenses from your budget, getting a side job and cashing in your income, or both. Ideally, your emergency fund should contain enough money to cover three to six months of essential expenses. That way, it’ll probably be enough to get you through the tough times so you’re not tempted to tap into your 401(k).

Now, if you’re already in debt and looking to withdraw funds from your 401(k) to deal with it, it’s worth exploring other options. First, try refinancing some of that debt, because getting a lower interest rate could lower your monthly payments. You can also try to negotiate with your creditors to make the repayment process more manageable. You can even consider hiring a debt settlement professional if you’ve really lost your mind. Either way, try to find a way out of this mess before you rush out to dump some of your 401(k). Not only will plundering your retirement plan potentially put you at risk of penalties, it will put you at risk of running out of savings later in life.

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The tax administration recovers 28 billion pesos from corporate tax evaders https://timothompson.com/the-tax-administration-recovers-28-billion-pesos-from-corporate-tax-evaders/ Fri, 07 May 2021 04:38:33 +0000 https://timothompson.com/the-tax-administration-recovers-28-billion-pesos-from-corporate-tax-evaders/ Federal tax authorities have recovered 27.83 billion pesos (US$1.3 billion) from corporate tax evaders this year. Among the companies that have paid their debts to the Federal Tax Administration (SAT) are América Móvil, a telecommunications company owned by billionaire businessman Carlos Slim, Walmart, IBM and Femsa, the largest bottler of Coca-Cola in the world and […]]]>

Federal tax authorities have recovered 27.83 billion pesos (US$1.3 billion) from corporate tax evaders this year.

Among the companies that have paid their debts to the Federal Tax Administration (SAT) are América Móvil, a telecommunications company owned by billionaire businessman Carlos Slim, Walmart, IBM and Femsa, the largest bottler of Coca-Cola in the world and the operator of the OXXO convenience store. chain.

América Movil paid 8.29 billion pesos in tax debt it accrued between 2016 and 2019, while Walmart coughed up 8.08 billion pesos it owed in connection with the sale of the Vips restaurant chain.

Femsa settled a tax bill of 8.79 billion pesos while IBM reached an agreement with SAT to reimburse 669 million pesos.

Another two billion have been poured into government coffers by smaller, lesser-known companies that are not listed on the Mexican Stock Exchange. Under agreements with federal authorities, companies were required to publicly announce that they were guilty of tax evasion, according to the newspaper. the universal reported.

Simec Inernational, a steelmaker, admitted his guilt in a notice published earlier this year in a national daily. He also urged other businesses to comply with their tax obligations and approach the authorities to dispel any doubts they may have.

Other companies that have done the same include steelmakers Orege and Siderúrgicos Noroeste and manufacturing company Sigosa.

President López Obrador last week credit requested to recover tax debts owed by large companies.

“The [economic] model we are applying is delivering results and benefiting everyone,” he said.

Data from the Department of Finance shows government tax revenue was above 2019 levels in January, February and March.

However, it fell below 2019 revenue in April, the first full month of federally mandated social distancing to limit the spread of the coronavirus.

Source: the universal (sp)

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