Anwar et al v. Fairfield Greenwich Limited et al

Filing 1041

ENDORSED LETTER addressed to Judge Victor Marrero, from Alan H. Rolnick, dated 2/7/2013, re: I write on behalf of Headway Investment Corp. In accordance with the December 17, 2012 Notice of Proposed Partial Settlement of Class Action and Settlement Fairness Hearing, and Motion for Attorneys' Fees and Reimbursement of Expenses, Headway objects to the proposed Settlement between the named Plaintiffs and the Fairfield Settling Defendants in the action styled Anwar v. Fairfield Greenwich Limited, et. al., Case No. 09-CV-118 (VM). ENDORSEMENT: The Clerk of Court is directed to enter into the public record of this action the letter herein submitted to the Court by Headway Investment Corp. (Signed by Judge Victor Marrero on 2/13/2013) (ja)

RIVERO MESTRE

February 7,2013

By Overnight Delivery and CMIECF
Honorable Victor Marrero
United States District Judge
Daniel Patrick Moynihan U.S. Courthouse
500 Pearl Street
New York, New York 10007-1312

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Re: Standard Chartered Cases - Anwar v. Fairfield Greenwich Limited, et aI., Case
No. 09-CV-118 (VM), United States District Court, Southern District of New York
Dear Judge Marrero:
I write on behalf of Headway Investment Corp ("Headway"). In accordance with the
December 17, 2012 Notice of Proposed Partial Settlement of Class Action and Settlement
Fairness Hearing, and Motion for Attorneys' Fees and Reimbursement of Expenses, Headway
objects to the proposed Settlement between the named Plaintiffs and the Fairfield Settling
Defendants in the action styled Anwar v. Fairfield Greenwich Limited, et al., Case No. 09-CV­
118 (VM).
The proposed Settlement Fund, including the maximum amount of potential future
funding, would represent no more than 6% of the estimated $1.33 billion of reported losses. The
amount proposed to be made available now, on a claims-made basis, would represent less than
3% of those losses after deduction for payment of the fees and expenses requested by Plaintiffs
counsel. This is a paltry recovery from the issuers, sellers (and control persons of the issuers and
sellers) of the bogus securities in question.
Headway is well aware of the risks that attend class-action securities litigation in general,
and ponzi-scheme cases in particular. However, as a result of issuing and selling the bogus
securities in question, the Fairfield Defendants received in excess of $ 748 million in purported
"performance" and "management" fees from 2002 through June 2008. The record demonstrates
that those "fees" were paid for nothing more than funneling investor money into a ponzi scheme.
Consequently, and quite apart from their potential legal liability for the total losses suffered by

Rivero Mestre LLP
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putative class members, the Fairfield Defendants are profiteers, from whom equity requires
disgorgement of all profits they made on the ponzi scheme. See, e.g., Anwar v. Fairfield
Greenwich Ltd., 728 F. Supp. 2d 372,421 (S.D.N.Y. 2010). The proposed total Settlement Fund
(including the contingent, speculative future amount), represents a mere 10.7% of the profits the
Fairfield Defendants made from the ponzi scheme, even before deductions for counsel fees and
expenses. Consequently, Headway objects to the proposed Settlement.
Headway purchased and redeemed the following shares:
Fairfield Sentry:
Date ofInvestment: January 31, 2003
Amount (cost) ofInvestment: US $ 4,000,000
Number of Shares in the Sentry Fund acquired: 4000 shares
Date ofInvestment: November 1,2003
Amount (cost) ofInvestment: US $ 2,500,000
Number of Shares in the Sentry Fund acquired: 2,324.81 shares
Date ofInvestment: July 1,2005
Amount (cost) of Investment: US $ 2,000,000
Number of Shares in the Sentry Fund acquired: 1,893.29 shares
Date of Redemption: July 25, 2005
Amount (cost) ofInvestment: US $ 7,474,273.76 (redeemed to purchase Fairfield Sigma. See
below.)
Number of Shares in Sentry Fund redeemed: 7066.27 shares
Fairfield Sigma:
Date of Investment: July 25, 2005
Amount (cost) of Investment: EUR 6,200,000
Number of Shares in the Sigma Fund acquired: 38,825.22 shares
Date of Investment: August 25, 2005
Amount (cost) ofInvestment: Eur 1,749,828
Number of Shares in Sigma Fund acquired: 10,955.60 shares

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Attached as Composite Appendix A is documentary proof, which demonstrate
Headway's standing as a putative member of the proposed Settlement Class. Headway reserves
all rights as a putative member of the proposed Settlement Class, including the rights to modify,
supplement or withdraw this objection, or to opt-out of the proposed Settlement Class.
Yours truly,

ForAlan H. Rolnick
Counsel for Headway Investment
Corporation
Enclosure
cc:
All counsel in Anwar (by email)

The Clerk of Court is directed to enter into the public record
otis ac 'on the letter above Jubmitted to the Court by

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SOORDERED.

;)..-/3-13
DATE

1460.0I\CORRES\LTR J. MARRERO 02.07.13

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