PCT/Endowment diversification

All topics about cryopreservation costs, membership dues, etc.
advancedatheist
Posts: 22
Joined: Thu Sep 08, 2011 11:42 am
Relationship with Alcor: Member

Re: PCT/Endowment diversification

Post by advancedatheist » Wed Feb 08, 2012 11:56 pm

Kaminsky wrote:Given that Alcor must survive decades, or even centuries, I see the financial risks (in highest-to-lowest likelihood order) as:

1) Embezzlement/theft
This has already happened twice to Alcor that I know of. Back in the late 1980's, Alcor's board gave $100,000 to someone who called himself "Mr. Gemini," who then disappeared with the money; apparently Alcor never recovered it. I don't know why the board members at the time authorized this transaction, and just describing it makes it sound like the plot of a bad TV show. You can find references to both an account receivable and a debt to the patient care fund in the amount of $100,000 simply labeled "Gemini," on this page:

http://www.alcor.org/cryonics/cryonics9006.txt

A few years ago Alcor's book keeper at the time, Tim Reeves, also stole some money from a member's account:

http://www.azcentral.com/arizonarepubli ... cor08.html

Kaminsky
Posts: 13
Joined: Wed Sep 21, 2011 11:19 am
Relationship with Alcor: Member
Location: Boston, MA

Re: PCT/Endowment diversification

Post by Kaminsky » Thu Feb 09, 2012 11:15 am

advancedatheist wrote:
Kaminsky wrote:Given that Alcor must survive decades, or even centuries, I see the financial risks (in highest-to-lowest likelihood order) as:

1) Embezzlement/theft
This has already happened twice to Alcor that I know of. Back in the late 1980's, Alcor's board gave $100,000 to someone who called himself "Mr. Gemini," who then disappeared with the money; apparently Alcor never recovered it. I don't know why the board members at the time authorized this transaction, and just describing it makes it sound like the plot of a bad TV show. You can find references to both an account receivable and a debt to the patient care fund in the amount of $100,000 simply labeled "Gemini," on this page:

http://www.alcor.org/cryonics/cryonics9006.txt

A few years ago Alcor's book keeper at the time, Tim Reeves, also stole some money from a member's account:

http://www.azcentral.com/arizonarepubli ... cor08.html
Interesting! I was thinking of the Larry Johnson incident (even though it didn't involve money - it's an example of a breech of trust). I see that the bookkeeper referred to above was convicted, but I can't find any word of restitution made to Alcor. Inside Cryonics: Former Alcor Bookkeeper Incarcerated. Anybody know about what happened? What about Mr Gemini?

BTW, when I did some consulting for a large financial institution a number of years back, I (and I assume this applied to everyone who worked there) had to be "Bonded" by the insurance company Chubb - which included some sort of background check. This protects somewhat against these sort of things - at a price.

Chubb Specialty Insurance:
Chubb website wrote:FFP Crime - Not-for-Profit Orgs Chubb Specialty Insurance

From “trusted” employees to cunning criminals, an organization’s assets are exposed to threats of embezzlement, fraudulent electronic funds transfer, forgery, robbery, safe burglary, or credit card forgery. These schemes involve every possible angle, taking advantage of any potential weakness in an organization’s financial controls. From fictitious employees, dummy accounts payable, and non-existent suppliers to outright theft of money, securities, and property, these frauds can go on for years and, when discovered, the ultimate impact can be enormous. Smaller organizations are especially vulnerable to such crimes.
...

bwowk
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Relationship with Alcor: Board Member

Re: PCT/Endowment diversification

Post by bwowk » Thu Feb 09, 2012 2:21 pm

In the Reeve's incident, the individual member's prepaid account was immediately replenished by Alcor general funds. Restitution to Alcor has been getting made by time payments from Reeves. I don't know the disposition of the late 1980s incident.

Alcor has made changes to require multiple signatures on more accounts than it used to, and in some cases even changed financial institutions when institutions couldn't accommodate the need for multiple signatures.

paulwakfer

Re: PCT/Endowment diversification

Post by paulwakfer » Thu Feb 09, 2012 2:45 pm

bwowk wrote:I don't know the disposition of the late 1980s incident.

Alcor has made changes to require multiple signatures on more accounts than it used to, and in some cases even changed financial institutions when institutions couldn't accommodate the need for multiple signatures.
I learned about the late 1980s incident from Mike Darwin (who certainly knew the correct details). As I recall "multiple signatures" would not have helped here. The amount was $50k given to a person trusted by Jerry Leaf to invest off-shore (diversification and not $US based) with the full approval of the Alcor Board. AFAIK, this person has never been heard of again.

This was one of many Alcor actions which caused me to give up on them at that time and work with several other ex-Alcor devotees to form CryoCare.

criley
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Location: US

Re: PCT/Endowment diversification

Post by criley » Mon Feb 13, 2012 5:40 pm

Moody's Investors Service is expected to announce downgrades to large global banks that play an outsized role in the capital markets ... The agency alluded to possible two- to three- notch negative impacts for all these players, but more particularly to the pure-play capital market players such as Goldman Sachs and Morgan Stanley ," the report states, citing comments made on a Feb. 1 conference call.
http://finance.yahoo.com/news/Bank-Amer ... 8.html?x=0
While it should not impact client funds at Morgan Stanley, it just shows that no one is immune. ;-)

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