If the damage done by CEF wasn’t bad enough, there was a self-named “dissident” group that was a thorn in the side of CEF’s CCAA process. This group filed various legal actions and lobbied the depositors in an absolutely futile attempt to change the direction of the decisions being made by the Monitor, depositors, and other people.
Where they were successful was in creating months of delay and significant costs that the Monitor and other agencies had to bear. The legal costs to defend themselves from the group’s various filings and other shenanigans (including adjourning the meeting where voting on the plan of arrangement was happening before voting could be completed) are all paid from the depositor funds. So guess who ended up picking up the tab for all of this?
You guessed it – the depositors.
Georg Beinert was one of these people and at one point his actions attracted some allegations of improper behavior based in part on a call a fellow CEF depositor made to Sage Management.
The Monitor page has two updates –
290. Affidavit of Karen Bell – filed March 22, 2018
291. Affidavit of Georg Beinert – filed March 22, 2018
that dispute that allegation. You can read more details about what this kerfluffle is all about in the Monitor’s 28th and 29th reports.
Keep in mind that all allegations are unproven until confirmed in a court of law.
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