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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
 6 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
In the ordinary course of its business operations, the Company has sponsored and manages investment entities.  Additionally, it has ongoing relationships with several related entities.  The following table details these receivables and payables (in thousands):
 
March 31,
2013
 
September 30,
2012
Receivables from managed entities and related parties, net:
 
 
 
Real estate investment entities
$
20,504

 
$
18,247

Commercial finance investment entities (1) 
7,531

 
13,904

Financial fund management investment entities
1,845

 
2,193

RSO
2,327

 
6,555

Other
121

 
152

Receivables from managed entities and related parties
$
32,328

 
$
41,051

 
 
 
 
Payables due to managed entities and related parties, net:
 

 
 

Real estate investment entities (2) 
$
2,917

 
$
3,900

Other
243

 
480

Payables to managed entities and related parties
$
3,160

 
$
4,380

 
(1)
Includes $32.4 million of reserves for credit losses related to management fees owed from three commercial finance investment entities that, based on changes in the estimated cash distributions, are not expected to be collectible.
(2)
Includes $2.6 million in funds provided by the real estate investment entities, which are held by the Company to self insure the properties held by those entities.
The Company receives fees, dividends and reimbursed expenses from several related/managed entities.  In addition, the Company reimburses related entities for certain operating expenses.  The following table details those activities (in thousands):
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Fees from unconsolidated investment entities:
 
 
 
 
 
 
 
Real estate (1) 
$
4,252

 
$
4,689

 
$
8,269

 
$
8,457

Financial fund management 
748

 
853

 
1,508

 
1,703

Commercial finance (2) 
—

 
—

 
—

 
—

RSO:
 

 
 

 
 

 
 
Management, incentive and other fees
2,746

 
3,510

 
7,595

 
7,340

Dividends paid
556

 
505

 
1,090

 
1,136

Reimbursement of costs and expenses
1,214

 
892

 
2,374

 
1,597

CVC Credit Partners – reimbursement of costs and expenses
377

 
—

 
593

 
—

RRE Opportunity REIT:
 
 
 
 
 
 
 
Reimbursement of costs and expenses
204

 
530

 
279

 
635

Dividends paid
33

 
—

 
33

 
—

LEAF:
 
 
 
 
 
 
 
Payment for sub-servicing the commercial finance investment
    partnerships
(303
)
 
(706
)
 
(685
)
 
(1,111
)
Payment for rent and related expenses
(199
)
 
(184
)
 
(396
)
 
(304
)
Reimbursement of costs and expenses
57

 
82

 
116

 
142

1845 Walnut Associates Ltd. – payment of rent and operating expenses
(157
)
 
(208
)
 
(311
)
 
(314
)
Brandywine Construction & Management, Inc. – payment for
    property management fees for the hotel property
(43
)
 
(39
)
 
(97
)
 
(98
)
Atlas Energy, L.P. – reimbursement of costs and expenses
141

 
149

 
285

 
318

Ledgewood P.C. – payment for legal services 
(61
)
 
(114
)
 
(114
)
 
(269
)
Graphic Images, LLC – payment for printing services
(24
)
 
(94
)
 
(51
)
 
(102
)
The Bancorp, Inc. – reimbursement of costs and expenses
28

 
29

 
56

 
74

9 Henmar, LLC – payment of broker/consulting fees 
(3
)
 
(4
)
 
(22
)
 
(22
)
 
(1)
Includes discounts recorded by the Company of $133,000 and $614,000 recorded in the three months and six month ended March 31, 2013, respectively, and $52,000 and $128,000 in the three and six months ended March 31, 2012, in connection with management fees from its real estate investment entities that are expected to be received in future periods.
(2)
During the three and six months ended March 31, 2013, the Company waived $618,000 and $1.4 million, respectively, and $1.2 million and $2.7 million during the three and six months ended March 31, 2012 , respectively, of fund management fees from its commercial finance investment entities.
Purchases of related party trading securities. The Company engages in structured finance security trading, both as an agent, through the Company's registered broker-dealer subsidiary, Resource Securities, Inc. ("Resource Securities"), and for the Company. During the six months ended March 31, 2013, the Company purchased and sold $5.9 million notional value of notes of Alesco Financial, Inc. ("Alesco") for $239,000 and recognized gain of $121,000. Alesco merged with Cohen & Company, Inc. in December 2009 and subsequently changed its name to Institutional Financial Markets, Inc. ("IFMI"). Mr. Daniel G. Cohen, the brother of the Company's Chief Executive Officer, Mr. Jonathan Z. Cohen, and the son of Mr. E. Cohen, the Company's Chairman, is the Chief Executive Officer and Chief Investment Officer of IFMI.
Relationship with Brandywine Construction & Management, Inc. (“BCMI”).  BCMI manages the property underlying one of the Company’s real estate investments.  Mr. E. Cohen is the chairman of BCMI.
In November 2012, the Company paid a $95,000 fee to BCMI in connection with the negotiations, for and ultimate sale of, a property in which the Company had a loan investment.
Advances to Affiliated Real Estate Limited Partnership. During fiscal 2012, the Company agreed to advance up to $3 million to an affiliated real estate limited partnership under a revolving note, bearing interest at the prime rate.  Amounts drawn, which are due upon demand, were $2.5 million and $2.4 million as of March 31, 2013 and September 30, 2012, respectively, and are included in Receivables from managed entities and related parties. The Company recorded $18,000 and $36,000 of interest income on this loan during the three and six months ended March 31, 2013, respectively, and $16,000 and $32,000 during the three and six months ended March 31, 2012, respectively.