The hearing-which lasted nearly three hours-was held to give creditors and their lawyers a chance to put questions to Harkay about what he had done with their money. More than $11 million loaned to Harkay by 450 people is listed as liabilities on Harkay Corp.'s Chapter 7 bankruptcy filing.

Harkay told many investors that their money was being used to purchase inventory for International Marketing, which sells stereos and televisions to servicemen on credit. Harkay has continued to operate the firm after the bankruptcy of the Harkay Corp., leading many lenders to hope that it is a viable corporation with assets that might ultimately be used to repay them.

"[Bill Harkay], do you see any light at the end of the tunnel?" one man asked Harkay during a break in the nearly three-hour proceedings. "Yeah, I do," Harkay answered.