SEC Sues New Jersey for Fraud (or What Happens When the Regulators Break the Law)

by Brian Mahany

Many investors believe the government will watch their back and protect them from investment frauds. While most will admit that the government can’t stop every fraud from occurring, few believe that the government itself can be charged with fraud.  Think again. Federal regulators from the SEC brought the first ever complaint against a state government, the State of New Jersey.

In August, Regulators charged New Jersey with misleading investors about the health of its two largest pensions; the $34 billion teachers pension and the $28 billion public employment retirement system.  Like many states, NJ has inadequately funded its pension funds. In recent years, NJ sought to sell bonds in order to bolster the funds. Unfortunately, in selling the bonds, the state failed to disclose that it had not been keeping up with its pension funding obligations in recent years. According to a Wall Street Journal report, the state made no contribution last year.

The case has been settled and although New Jersey admitted no wrongdoing, they also promised to not violate the law again.

This case highlights what many savvy investors already know - anyone can find themselves a victim of investment fraud. Always do your own due diligence before investing.  As folks who purchased New Jersey government issued bonds just learned, sometimes you can’t even always trust the government.

MahanyLaw helps victims of investment frauds recover their hard-earned monies. Whether you were defrauded by an individual, broker, accountant, business or lawyer, the fraud recovery and asset recovery lawyers at MahanyLaw can help you. We are located in Portland and Milwaukee and have helped fraud victims throughout the United States.

Founder Brian Mahany, a former assistant attorney general and law enforcement officer, welcomes your call. Brian can be at (414) 704-6731 (direct) or at brian@mahanylaw.com


Fraudsters Beware - Homestead Exemptions Don’t Always Work

(Asset Protection and Asset Recovery blog post)
by Brian Mahany
Why do so many fraudsters live in Florida? Some would say its the climate but more probably, it’s Florida’s unlimited homestead exemption.  Under Florida law, creditors cannot force the sale of one’s primary residence to satisfy claims and judgments.  Many lawyers and creditors believe that protection is


Tax Evasion in China Could Put You in Front of a Firing Squad!

by Brian Mahany
It’s a rainy day in Macau, a former Portuguese island colony off the coast of China.  My work as an asset protection and asset (fraud) recovery lawyer frequently takes me to interesting spots in the world.  This week is no exception.
Many nations are popular for Americans seeking to diversify their banking risks and


Are Your Assets Safe in the Isle of Man? Yes.

by Brian Mahany
Situated mid-way between England and the Republic of Ireland sits the small, 227 square mile nation of the Isle of Man. With a population of just 80,000 residents, the Isle of Man is a popular destination for offshore asset protection. A recent statement by the chief executive of the Isle of Man Financial


Thousands of New Tax Cops Hit the Streets!

by Brian H. Mahany
A just released report shows the IRS collected $400,000,000,000 less in 2009 than in 2008. (Yes, that is 400 billion.) No surprise there - the economy remains in a slump and placing food on the table occupies a higher importance than paying taxes for many families.
The same report, released by the Treasury


Business Owners Beware - Here Comes Another Whistleblower Program

by Brian Mahany
They say the devil is always in the details and that certainly applies to much of the recent financial reform legislation coming from Capitol Hill these days.  Jilted lovers and disgruntled employees have reported billions of dollars of unpaid taxes since the IRS revamped it’s whistleblower program. Why have they done so? Congress


When It Comes To Banking, “Don’t Ask, Don’t Tell” Is The Best Policy (offshore accounts)

by Brian Mahany
Government tax authorities asking banks and credit card companies for information on foreign account holders is hardly news these days. The I.R.S. does it, so do Germany, Britain and many other countries. Officials want to know when their citizens transfer wealth overseas or open foreign accounts. Generally the practice is legal if the


How Stupid Can They Be? Plenty! (Fraudulent Conveyance Post)

How Stupid Can They Get? Plenty Stupid!
(A discussion of fraudulent conveyances)
by Brian Mahany
It was inevitable - massive fraud in the government’s bailout program from 2008. The U.S. Troubled Assets Relief Program (or “TARP”) had it’s first major arrest. Charles Antonucci, former head of New York’s Park Avenue Bank, was indicted for fraud, embezzlement and misappropriation.


Clawbacks - Latest Tool in Fraud and Asset Recovery

Clawbacks! Friend or Foe - you decide.
by Brian Mahany
The term “clawback” is relatively new. In fact, you won’t find it in most dictionaries and even the on-line Wiktionary is quite vague in its definition; “Any recovery of a performance related payment based on discovery that the performance was not genuine.”  But ask the victim or


Send In the Clowns (Asset Recovery & Protection)

by Brian Mahany
In January I wrote a piece titled “Do You Know Who Is Handling Your Money?”  That piece discussed how TV star Willie Adams (star of reality television show “Broke and Famous”) was now licensed to be a financial planner. Willie isn’t alone.
The newest entrant in my personal “Hall of Shame” is Kevin Trudeau.
Trudeau