Could 16% Of AmTrust Outstanding Shares Hit The Bid?
- The Karfunkel brothers, board members and majority shareholders of Amtrust stock, used their foundations to place high-risk bets on financial institutions in 2008 that ultimately resulted in significant losses.
- Michael Karfunkel has been using a GRAT (a form of a trust) in violation of both SEC and IRS rules.
- Stock donated to the brothers’ foundations was valued higher than it should have been, presumably for a larger tax write off.
- In order to comply with IRS rules, 16% of AmTrust outstanding shares appear to need to be either donated to an “unaffiliated charity” or outright sold.