Missing ACH Funds from a National Syndicator....

15 Replies

Hello,

I have been a LP with a popular national syndicator.  While I've been happy with his performance, this last month they have failed to pay me my preferred return.

I've reached out to them twice; they claim they have sent the money via ACH, case closed, and they are not taking responsibility in tracking down the money.

I've also reached out to my bank to open an investigation; my bank claims they never received the money and that it is the responsibility of the sending bank to resolve the issue.

The money is missing, Both sides are pointing fingers with me in the middle.....

What is the way forward when money simply goes missing in an ACH transaction?  And who's responsibility is this to resolve the issue?

I feel like I'm not getting the best ever service that I deserve...

Thanks, John

Will the national syndicator not give you proof that it was sent? 
You probably are going to have to become the squeaky wheel that gets noticed.

If its an ACH transaction, both sides should have a record.  I get those all the time for wire transfers to escrow.

The sender may have messed up on the send-to account, but gotta admit its troubling.

Originally posted by @Steve Morris :

If its an ACH transaction, both sides should have a record.  I get those all the time for wire transfers to escrow.

The sender may have messed up on the send-to account, but gotta admit its troubling.

WE get auto notices on wire transfers but not ACH we have to look at the account and see if they came in.. Not sure if there is an auto notification for ACH have to ask my bank.

 

WE get auto notices on wire transfers but not ACH we have to look at the account and see if they came in.. Not sure if there is an auto notification for ACH have to ask my bank.

There's a record for ALL wire transfers. I tell my title officers that I need them for any funds received. They give me the title company record, but it's got the bank transfer info.

In his case, he needs the sender to tell their banks to release it - Which should NOT be a problem in normal times.  Hence the "troubling" aspect of it.

A lot of syndicators are hitting their reserves hard due to non-pays since its kinda black swan event.

"Have you asked anyone at the SEC what to do?"

That's kinda way downstream and you'll need to build your case first.  

Besides, it'll take you 4 weeks to get a return call from a Fed agency.

Originally posted by @Steve Morris :

"Have you asked anyone at the SEC what to do?"

That's kinda way downstream and you'll need to build your case first.  

Besides, it'll take you 4 weeks to get a return call from a Fed agency

I've gotten much faster results than that in the past, plus just mentioning to the non compliant party that you've contacted the SEC often gets an automatic attitude adjustment and willingness to take steps to begin seriously addressing your issue from the other side.

@John Laney you are going to get the most traction via working with the syndicator and their bank. They will have all of the ACH details. Your bank (recipient) does not seem to have details of the transaction since you did not receive the funds. I would be the squeaky wheel until you start talking with someone who can assist.

Also, does your investment agreement stipulate any details about obligations on money transfers?

Good luck!

@John Laney Every transactions has tracking # and other information. All banks (syndicator and receiving banks/financial intermediaries) need to reconcile their accounts using the same information. This is the basis of bank reconciliation and double-entry bookkeeping. 

You should become the squeaky wheel and get info. Going to the SEC should be your last option because it will poison your relationship with the syndicator (not saying you should never do that). But it is surprising to me that the syndicator is treating you as poorly as you have described. 

FWIW, I am a syndicator and we confirm and double-confirm all banking information from our LPs, send the money, reconcile our books and send multiple emails both stating that the distributions have been made and for LPs to contact us if they have not received the distributions. 

@John Laney

Sorry to hear that John. I think you will need to be that squeaky wheel. I also think that you operators true colors when issues arise. Maybe it’s time to look at new syndicators. A lot or great smaller syndicators out there where you will get more that red carpet treatment. I can connect you with some if interested.

Thanks @Jay Hinrichs @Jonathan Barr @Connor Macon .

The money did go through. So after a week of back and forth ( ie. the money is in your account, no the money is in your account) I told them that it looks like some type of fraud had happened and asked if I should be notifying the SEC.

This got their attention...

They were able to track down the money (which takes a few days) found it, and then re-deposited into my account.

Talking with my banker it appears that this is one of those 1 per Million events...

Thanks for the help. 

Originally posted by @John Laney :

Thanks @Jay Hinrichs @Jonathan Barr @Connor Macon .

The money did go through. So after a week of back and forth ( ie. the money is in your account, no the money is in your account) I told them that it looks like some type of fraud had happened and asked if I should be notifying the SEC.

This got their attention...

They were able to track down the money (which takes a few days) found it, and then re-deposited into my account.

Talking with my banker it appears that this is one of those 1 per Million events...

Thanks for the help. 

Alls well that ends well then ..