BoddaH1994 Posted October 16, 2010 Share Posted October 16, 2010 Cedar Fair CEO Dick Kinzel and his wife, Judy Kinzel, have filed a $30 million federal lawsuit against Merrill Lynch and the brokerage company's new owner, Bank of America, accusing the companies of ripping them off. The Kinzels say the companies were failing financially and were desperate to raise cash in any possible way. The lawsuit, filed in recent weeks in U.S. District Court Northern District, alleges Merrill Lynch in March 2009 sold 167,900 Cedar Fair units the Kinzels owned in their private account. The sale disregarded explicit instructions the Kinzels gave not to sell the units. http://www.sanduskyr...ch-bank-america Quote Link to comment Share on other sites More sharing options...
Diamondback96 Posted October 16, 2010 Share Posted October 16, 2010 To be honest, I think it would be funny if they were sold to Q. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 16, 2010 Share Posted October 16, 2010 The Kinzels' units were sold due to a "margin call." They had been given time to pay back the loan. They had not. The collateral was sold. Too bad, so sad. If Mr. Kinzel had put as much effort into reaping unitholder value as he apparently did to reaping executive compensation, there may well have been no margin call. Integrity? Country club atmosphere? I'd be shocked if this lawsuit results in a judgment in favor of the plaintiffs... Litigious a bit, ain't they? Especially given, from the article: ...Brett Kinzel, the couple’s son, was a Merrill Lynch broker who handled his parents’ account at the firm.... I am quite sure the widows and elderly who depended on FUN's distributions for their income in their dotages feel very sorry for the Kinzels... Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted October 16, 2010 Share Posted October 16, 2010 The more and more I hear it seems that Kinzel`s time has come. He clearly is more interested in his worth and value than the long term welfare of the company or its parks. Kind of sad that his judgment is being clouded, but I definitely think it is time for him to move on for the best of the company. Quote Link to comment Share on other sites More sharing options...
faeriewench Posted October 17, 2010 Share Posted October 17, 2010 Oh boy Yep, I'm choosing to be vague. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 17, 2010 Share Posted October 17, 2010 Probably ain't seen the last of the litigation over that SEC filing.... Terpy who can be vague two Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted October 17, 2010 Share Posted October 17, 2010 The Kinzels say the companies were... desperate to raise cash in any possible way. That reminds me of another company... can't think of the name though. Hmm. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 18, 2010 Share Posted October 18, 2010 The lawsuit can be found here: http://www.sanduskyr...inzel.Suit_.pdf It should be noted that it claims at the time Mr. Kinzel had a net worth of "well in excess of" $16 million, that the sale of the collateral would have produced a $20,000 commission for the Kinzel son, and that the defendants deprived said Kinzel son of said commission, among other things. A Private Wealth Advisor at Goldman-Sachs is also a defendant. Few suits do I consider breath-taking...this is one of them. It will be interesting to see how and when it is resolved. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted October 18, 2010 Share Posted October 18, 2010 That is assuming we ever hear how it is resolved (if they settle before it goes to trial). Quote Link to comment Share on other sites More sharing options...
RailRider Posted October 18, 2010 Share Posted October 18, 2010 I think certain unitholders will begin to talk louder of the removal of Kinze or changes in the board. The grumblings will become much louder in the near future. Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted October 18, 2010 Share Posted October 18, 2010 While I don't have a whole lot of sympathy for Mr. Kinzel, from the article (I know, based on the lawsuit so only one side of the story) there does also seem to be some interesting dealings associated with this transaction Sold FUN units at a "historical low" unit price Sold to "BlackRock, a Merrill Lynch subsidiary" They then sold them "only weeks later at an enormous profit" Is this lawsuit another example of the operations guy at work? Quote Link to comment Share on other sites More sharing options...
BavarianBeatle Posted October 18, 2010 Share Posted October 18, 2010 Goldman and Bank of America vs.the Kinzels... Kinda like Bernie Madoff and Ken Lay suing each other ! Quote Link to comment Share on other sites More sharing options...
RingMaster Posted October 19, 2010 Share Posted October 19, 2010 To be honest, I think it would be funny if they were sold to Q. Speaking of Q.... http://www.sanduskyr...an-more-rewards Cedar Fair - (10/18/10) From the sound of this article Cedar Fair's new overlords, Q Funding, just kicked Dick Kinzel where it hurts… his power base. The chain's biggest investor is asking for some big changes, starting at the top, as they feel that the roles of Chairman of the Board and CEO need to be separated… which would leave the soon to depart Kinzel with only one finger in the pie. Even worse however, they are asking that for a new Chairman who would be an independent person who has never served as an officer in any form for Cedar Fair. In other words, it sounds like they want another over-paid exec on the payrole who is completely ignorant of not only Cedar Fair company culture, but possibly of the theme park industry entirely. Oh… and they want a bigger increase is cash distributions as well in addition to putting a new very high-dollar person on the company payroll. Funny, I don't think it was very long ago that Cedar Fair reinstated cash distributions in the first place after putting them on hold a couple of years ago when the economy started to sour. Plus Cedar Fair still has a huge debt issue to pay down, so much like a tick on a dog, it sounds like Q Funding may just be trying to load their pockets while they can before setting sail for greener pastures. I think this whole situation is going to get a lot worse before it gets better… Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 19, 2010 Share Posted October 19, 2010 Yep, 10/18 on Screamscape, or THREE DAYS earlier here! http://www.KICentral...showtopic=22900 Terp, who so far has seen at least three reasons he loves this place...and that's just this morning! (And Carowinds2005 posted the info first, with the SEC filing even!) Funny to watch Lance almost parrot some of what is said as opinion on other websites...and should this matter end differently than expected, watch his predictions for the future be edited, truncated or just quietly disappear over time! Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 24, 2010 Share Posted October 24, 2010 From Merrill Lynch's own website: WHAT ELSE SHOULD YOU KNOW ABOUT MARGIN? Consider the risks associated with margin Margin is not appropriate for all investors. Borrowing on margin and using securities as collateral involve certain risks. When considering a margin loan, you should take into account your individual requirements, portfolio composition and risk tolerance, as well as capital gains taxes, portfolio performance expectations and investment time horizon. The risks you should be aware of include: If the value of your securities declines, you may be required to deposit additional securities and/or cash into your account. Your securities may be sold to meet a "maintenance" call and we may do so without contacting you. You can lose more funds than you deposit in your margin account. We can increase our "maintenance" margin requirements at any time and we are not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call. You should read your account agreement carefully to be sure that you understand your risks and obligations. Seems someone thought the rules did not apply to them if their son was a broker at the firm... Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted October 24, 2010 Share Posted October 24, 2010 This is about one of three things. 1. Dumb 2. Hurting for money 3. Greed Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted October 24, 2010 Share Posted October 24, 2010 This is about one of three things. 1. Dumb 2. Hurting for money 3. Greed Or some combination thereof...(I vote for all three). Quote Link to comment Share on other sites More sharing options...
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