But if assets other than securities were sold, there was no
way for the Trust Company to know, because that didn't go through the
brokerage firm's computer, so the assets wouldn't be removed from the
SEI account; and if anything was bought outside of the brokerage
account, including mutual funds that kept their own accounts, the
brokerage firm's computer would report the pay-out of funds, and the SEI
account would track that, but whatever assets were bought with the funds
would never appear in either account, so according to our records part
of the trust's value would have simply disappeared.
3: Paragraph 30 The important point is that there never were any
assets at the Trust Company. All the assets were in the brokerage
accounts at Hutton & Co., and all the Trust Company ever had was the
phantom SEI accounts supposedly reflecting whatever happened in the
brokerage accounts. The companies the trusts belonged to got monthly
statements from the brokerage firm and monthly statements from the Trust
Company, and if they didn't match, the customers were likely to complain
to their AEs, who would usually complain to the Trust Company.
3: Paragraph 31 The monthly statements from SEI were printed in bulk
by SEI and delivered to us in boxes, and Hutton & Co. sent us copies of
the monthly brokerage statement in each account that was coded as a
trust account.
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