Vms Realty Pays Out Just 7~ On The Dollar
It seems like a paltry return for the more than 20,000 people who invested $1.2 billion in limited partnerships managed by VMS Realty Partners and sold in large part by what was then called Prudential-Bache Securities. According to a settlement approved on July 2, investors will split a $24.6 million cash settlement, plus a small cut of future asset sales. That works out to perhaps 7~ on every $1 invested in the highly leveraged real estate investments that the Tax Reform Act of 1986 all but wiped out.
The payout breakdown is as follows: $20 million from Prudential, $1.1 million from VMS, and $3.5 million from Mutual Benefit Life Insurance. The former officers of VMS aren't required to contribute to the payout fund and are freed from personal liability for the VMS failures.
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