Table of Contents
Name them, or describe them as specifically as you can: who they were and what they lost. I took commissions on money from investors I never met, and for years I couldn't have told you one of their names.
June 16, 2002
One year to the day after we moved to UBS, my phone rang. It was Keith.
"I think I'm going to leave Bear Stearns. Can I transfer my $6 million hedge fund to you?"
I knew Keith from Crowell Weedon. I'd heard how he closed deals on the phone. If a client was unsure about a stock, Keith would tell him he was the only one hearing this, that there was talk of a merger. Whatever got the trade.
I told myself, who am I to judge him? I'd made my own bad decisions. My job was to bring in money and execute trades, and UBS wanted production for that bonus.
I went over that night to sign the paperwork.
The first month he did $100,000 in commissions. The second, $200,000. The third, $300,000. Six months in, he had lost all $6 million. Then he raised another $6 million.
No one hands money to a manager who just lost every dollar unless someone lies to them. We knew that. So we told ourselves other things. Every ticket said unsolicited. They were his investors, not ours. Who were we to police our own client?
Judge Bough told Michael that what moves him is a defendant's own words showing he understands who he hurt.
I couldn't have told you one of their names.
What to do this week
Write down everyone who lost something because of what you did, including people you never met. A name if you know it. A description if you don't. Keep it for yourself. You'll come back to this list.
Questions people ask
What if I never met the people who lost money?
Describe them as specifically as you can: who they were, what they trusted, what they lost. Your lawyer can help you learn more from the case file.
Should I contact the victims before sentencing?
Not without your lawyer's advice. Contact can create legal problems. Write about them, and let your lawyer decide what goes where.
Related: Our free courses on government investigations, probation reports, character reference letters, and RDAP are at whitecollaradvice.com. Each one is built from questions people in your position have asked us.
Read next: Part 8: Can Compliance Approval Protect You From Fraud Charges?
Written by
Justin Paperny
Founder White Collar Advice
