> */If the CEO admits the fund has gone bust, then all those
> wealthy members of the Jewish community get nothing ...
If you invest in a private fund or a publically traded instrument and you suffer a loss (whether through fraud, incompetence, or external market conditions), you have a tax event. There are some cases where you'll be able to reach back to previous years, but in general, the loss will carry forward.
Note that many of the investors in such a fund are loong-term investors and might not have significant
> but if the CEO admits to fraud they get their money back as
> compensation from the US tax payer ...
This is just a fundamental misunderstanding of the way investments are taxed.
/jordan