Aug 21, 2014
Aug 14, 2014
Jul 24, 2014
Jul 16, 2014
Ponzi scheme victims may recoup some of their losses
The Senate Thursday approved Senate Bill 180, which establishes a fund from access revenues from several state regulatory agencies and settlements to repay the 150 lenders who lost at least $33 million when FRM closed abruptly in 2009.
Co-sponsored by Senate President Peter Bragdon, R-Milford, the fund would be in place until all the claims are satisfied.
"This was a complete failure of state government. There were over 70 violations (of state laws) over nine years," Bragdon said. "The state did see something wrong and the state chose not to do anything."
In the FRM case, investors and others contacted state regulators at the Bureau of Securities, the Attorney General's Office and the Banking Department and those complaints and concerns were ignored.
"I think we have crossed the line where state recovery of assistance should be considered," Bragdon told his colleagues.
Senate Minority Leader Sylvia Larsen, D-Concord, expressed concern the bill would set a precedent which would open the state up to others seeking reimbursement when the state does not live up to its duties.
She also noted the state is not likely to fully reimburse the victims of FRM, while the bill would lead them to believe that.
And she said the money going into the fund would go into the state's general fund where it would be used for a higher priority. But bill co-sponsor Sen. Lou D'Allesandro, D-Manchester, called the bill a reasonable way to help people who were severely damaged.
He said lawmakers need to stand by their convictions and if that sets a precedent, so be it.
"It is important for us to recognize it is our job to right wrongs," D'Allesandro said.
The FRM scandal was investigated by a legislative committee, as well as the state agencies involved and by the secretary of state's office.
Numerous bills have been introduced in the last three or four years concerning the FRM scandal, including bills to establish a restitution fund for the victims.
Attempts to establish funds in the past have been unsuccessful.
Scott Farah, the former president of FRM of Meredith, is serving 15 years in federal prison on wire and mail fraud charges, and his co-conspirator, Donald Dodge, who was president of CL&M, a mortgage servicing company, is serving six years for wire fraud.
READER COMMENTS: 2
- Former city restaurateur gets jail sentence for sex assault - 0
- Former high school art teacher gets suspended sentence in drug case - 0
- Fugitive in Manchester shooting, stabbing cases caught by Marshals, police - 0
- Hampton Falls standoff suspect linked to burglaries, fake-cop ploy - 0
- Woman charged in fatal Hampton crash wants blood-test thrown out of court - 1
- Home confinement rejected for ex-Derry town employee - 1
- Manchester man arrested for aggravated drunk driving - 0
- Manchester Crime Watch: Fugitive in shooting, stabbing cases brought to court - 0
- Homeless man faces DWI charges in Dover - 0
READER COMMENTS: 0
- Betsy McCaughey: Congress should take the lead on Iraq - 2
- Another View - Rick Santorum: When Israel needs our help, we have to be there - 0
- Man killed in Pelham motorcycle accident wasn't wearing helmet - 0
- Dan Tuohy's Granite Status: Garcia to air her first TV ad - 0
- Boston Red Sox hammer Jays for seven runs in 11th, win 11-7 - 0
- NH Motor Speedway to again host two Sprint Cup Series weekends in 2015 - 0
- St. Anselm football players practice ini August heat - 0
- White, Glenn lift Fisher Cats over Harrisburg, 6-4 - 0
- KSC field hockey first in coaches poll - 0
Backyard boulder kills Raymond homeowner
Reports: Market Basket doomsday plan would shutter 61 of 71 stores if deal not struck soon
GOP for legal pot? Hemignway's high help
Ohio's Rob Portman: GOP can win back Senate
- Total Votes: 917