We receive lots of asset protection pitches in our email. Most are pretty scary - today’s was no exception.

The pitch today comes from a guy named “Big A.”  Presumably Big A has to keep identity secret because the IRS and lawyers are “scared” of what he has to say.  Thankfully, however, he is willing to share all his secrets with us for just $97.

According to the pitch, for just 97 bucks he can help you and I can live like the “big guys.” After all, Warren Buffet only pays 3% in taxes and the wealthy have long ago stopped worrying about taxes and lawsuits. At least that is what we are told.

Big A spent a decade researching these secrets. We know he isn’t a lawyer, however we are never told what he does or his background.  The spokesperson only says that the information in his plan would could cost thousands if you could find it anywhere else.  There is a warning, however, not to consult with lawyers.

Why? Because we lawyers are part of the problem and don’t have your best interest in mind.

If you are worried about how effective Big A’s secret asset protection plan is, don’t. Big A assures us that it is based on IRS codes and “legal precedent.”  You won’t go to jail using this system and still save thousands and keep Uncle Sam from getting your hard earned money.

If this sounds to good to be true, sign up today.  If it backfires; if you find yourself in the middle of an IRS audit (or worse, under indictment) or if you are being sued and the plan isn’t working give us a call. The lawyers at our sister firm Mahany & Ertl can defend you.

One size fits all asset protection plans don’t work.  Although I haven’t purchased Big A’s plan and thus can’t speak to it, most every plan that I have seen on the Internet doesn’t work.  If they did, they wouldn’t stay secret for long.  We aren’t saying the Big A plan is a scam. Some are and some are not but the one-size-all plans rarely work for most people.  It’s hard to get a good night’s sleep knowing that everything you worked hard to create - home, car, business - is protected by a $97 plan offered by some guy who won’t even tell you his name.

Asset protection plans can protect you from vexatious litigation but trying to evade taxes is a non-starter.  A competent asset protection attorney can help you develop a plan that will protect you from many financial risks. A good accountant or tax attorney can help you minimize taxes too. But no one can protect you from every risk and all taxes.

If you are serious about asset protection, give us a call. The asset protection lawyers at MahanyLaw can help you minimize risk in a safe, understandable way. Our experience is rather unique - because our sister firm Mahany & Ertl helps victims of fraud dismantle and pierce phony plans, we know what works and what doesn’t. We possess a skill set unmatched by most lawyers.

For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or at brian@mahanylaw.com

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Huguette Clark was a reclusive woman. And evidently quite wealthy too. When she died her estate was worth approximately $400 million. She also left two wills dated just a couple weeks apart -  one leaving everything to her family and the other leaving nothing.

The first will left her valuable estate mostly to her family. The second will left $34 million to her hospital nurse, $500,000 to her accountant and $500,000 to her lawyer. Where did the rest go? To a charitable institute conveniently run by her lawyer and accountant.

This case is interesting because of the size of the estate - $400 million is enough to make anyone who feels unfairly excluded fight. It’s also interesting because of the unique facts:

* Her accountant is a convicted felon according to an expose by an MSNBC investigative reporter.

* Most states prohibit lawyers from being the beneficiary of a will they prepared.

* The court must determine if there was any undue influence during the six week period between wills.  A finding of undue influence could nullify one or both wills.

* Did she have the mental capacity to sign either will? Both wills were signed from Clark’s hospital room when she was almost 100 years old.

Lest you jump to any early conclusion, both sides have made compelling arguments in court. Legally, however, the lawyer has problems for preparing a will in which he was both the executor and a beneficiary.  (As an executor, the attorney could be entitled to millions more in fees.)

If the court battle isn’t enough, the district attorney has now stepped in and is investigating both the lawyer and accountant.

Hats off to MSNBC which did some great investigative reporting.  They claim that Clark’s accountant, Irving Kamsler, is a registered sex offender and felon. Apparently Kamsler, 64, was convicted of sending porn to 13 year old girls.

The attorney, Wally Bock, may not be much better. MSNBC reports he inherited a New York City apartment from a client - a client who suffered dementia according to neighbors. Who drew the client’s will? Bock did, of course

If you think the story can’t get any worse, it does. An accounting of her finances reportedly revealed that Kamsler and Bock spent $123 million of her money over the last 15 years. That amounts to $1 million per month for a woman who chose to live in a hospital during most of that time.

Will contests are quite common. Most families have a horror story of a relative with two wills, no will or a will that was signed long after the person was no longer competent to sign. How can this be prevented? First - find an honest lawyer. Any lawyer that takes gifts and writes himself into the will is not acting ethically. (Someone will challenge me and contrive some sort of bizarre set of facts to the contrary, of course, but we stand by our opinion.)

Next, the will should be witnessed by one or more disinterested people, people that have had the opportunity to observe the person signing and opine on his or her mental health. If a will is contested, it is helpful to have witnesses who spent more than 30 seconds in he room when the will was signed.

MahanyLaw helps successful people with asset protection and estate planning. Our sister firm, Mahany & Ertl (http://www.mahanyertl.com) concentrates in asset recovery and fraud including will contests. Either way, if you have a question about drafting a will or contesting one, give us a call. For more information contact attorney Brian Mahany or Bethany Kroes at (262) 970-8500 or by email at brian@mahanyertl.com

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Good asset protection usually starts with good insurance. Offshore bank accounts, asset protection trusts and the like have their place but one of the easiest ways to protect your assets is to have proper insurance. That includes making sure your coverage is broad enough to cover all conceivable losses and that you have sufficient coverage. Sound obvious? It isn’t.

New York Islanders star Matt Moulson recently slammed his Cadillac into the rear end of another car injuring the driver. No big deal, right?

Wrong. Moulson has a $9 million dollar contract as a hockey player. He had just $25,000 in insurance on his car, however. Moulson may well be sending his paychecks to the other driver for quite some time depending on her injuries.

Insurance is a no brainer and the start of most good asset protection plans. A few hundred more bucks would have saved him much grief.  According to a published report in the New York Post, $1500 would have purchased a $1 million policy in New York covering all his vehicles.

We are amazed how many people - people with homes and businesses - have minimum coverages for their automobiles and business liability. Many do not even know what type of coverage they have or how much.

For example, does your automobile insurance cover rental cars? Rentals of SUVs or luxury cars? Trips abroad? Don’t be caught facing the loss of everything you worked so hard to earn simply because you don’t fully understand your insurance.

Before you plunk down thousands of dollars for a “fool proof” asset protection plan marketed on the Internet or at some type of dinner seminar, consider an asset protection attorney who takes time to understand your needs, your assets and lifestyle. Contrary to advertisements by some promoters, one size does not fit all. A good asset protection plan should always consider both insurance and estate planning and consider the special needs of the client.

For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at brian@mahanyertl.com. The call is free and without obligation.

MahanyLaw - Trusted Advisers to the Highly Successful. Offices in Milwaukee, Wisconsin; Portland, Maine and Detroit, Michigan.

[Hat tip to Jeffrey A. Landers, a divorce financial strategist, for the tips in this blog post.  According to the info found on Huff Post's Divorce blog, Jeff can be contacted at landers@BedrockDivorce.com]

MahanyLaw and Mahany & Ertl law firms do not practice family law.  We often help high wealth individuals with asset protection in order to protect against frivolous lawsuits. Sometimes we assist divorce lawyers with finding and recovering assets hidden by a spouse in contemplation of divorce. In other words, to the extent we have any involvement in family law, its on the back end of a divorce gone bad.  The advice in this blog post, however, contains several simple steps to help prevent such problems.

According to a divorce financial strategist Jeffrey Landers, women contemplating leaving an abusive marriage can take 7 easy steps to protect themselves economically and have a better chance of getting what is rightfully theirs after divorce.  Although I haven’t met Landers or worked with him, his advice certainly rings true.  A couple comments first about abusive relationships before we get to his 7 steps.

The abusive partner in a relationship - frequently the husband - wants control. All of it.  They believe by keeping complete control of  all finances they can prevent their spouse from leaving. Unfortunately, the tactic sometimes works.

As a former domestic violence prosecutor and board member of the Family Violence Project, I have seen some monsterous behavior in my prior career. If I learned anything, it’s to never underestimate the men behind abusive relationships. Threats of physical violence, actual beatings, threats of kidnapping the children and in one instance, torching the family house to “punish” the wife are all things I have seen. It is nothing, then, for men who are control freaks to attempt to keep total control of all finances.

So what can a woman do who is contemplating leaving such a relationship? According to Landers, there are 7 steps:

1. Establish private communications. Get a post office box or have mail delivered to a family member. Consider getting a new email account and only using public computers such as those at a library or one belonging to a trusted friend.  Keystroke software is a common tool used by abusive partners. Such programs quickly give the abuser access to all your passwords and ultimately your mail, bank accounts, etc. Landers also wisely recommends a new cell phone with a pay as you go account. (These have no bills and thus no trail of the numbers you called.)

2. Open your own  bank account. Try to set aside as much money as you can for the day you leave.  Divorces and relocation can obviously get expensive so begin saving as early as possible.  One tip that I would add is to open the account in a different bank from your partner’s or family accounts.

3. Keep copies of all important paperwork. Tax returns, pay stubs, pension plans, bank statements, etc.  Be on the look out to for a paper left out from a bank or brokerage account you don’t recognize.  Although most spouses truthfully disclose where their assets are, we have seen many instances of hidden trusts, offshore accounts, etc. According to Landers, these copies should be stored outside the house with a trusted friend or family member.

4. Obtain a credit card. Obvious but good advice. The account should be in your name only.

5. Remove your name from all joint debts. This advice is easier said then done but is useful with open credit lines, home equity lines and credit cards. Often this will be the last step you take before you move out - closing these lines of credits doesn’t get you off the debt but it keeps you from becoming responsible for even more debt once you leave.

Sometimes we are asked by the spouse planning on leaving if she should “clean out” the accounts and draw down all the credit. That is tough question and varies by jurisdiction. Before you consider something like that, talk to a divorce lawyer first.

6. Change all your PIN codes.

7. Acquire a one-time-use prepaid debit card.

Not included in the numbered steps is getting help. Most police agencies and family physicians can guide you to domestic abuse programs.  The staff and volunteers - many of them survivors themselves - offer phenomenal assistance. From actual shelter to a friendly ear always willing to listen.

We sincerely hope that none of our readers ever have to carry out these steps. Unfortunately, many women (and sometimes men) suffer daily in abusive relationships.  If you are facing a divorce and many hidden assets, have your family lawyer contact us. The asset recovery and fraud lawyers at our sister firm Mahany & Ertl have helped many people recover their hard earned money. Attorney Brian Mahany can be reached at (414) 704-6731 or by email at brian@mahanyertl.com.  All calls are kept strictly confidential.

MahanyLaw - Trusted Advisors to the Highly Successful

by Brian Mahany

Yesterday the court unsealed the indictment of Peter Rogan and his attorney, Frederick Cuppy.  Rogan is the former owner and CEO of Edgewater Hospital in Chicago. Although Rogan sold the hospital years ago, prosecutors say he continued to manage and run the facility. Ultimately the hospital closed in 2001 after a number of doctors and administrators were indicted for federal health care fraud.  Prosecutors back then accused the hospital of paying kickbacks for patient referrals and ordering unnecessary tests and procedures.

The government and a lender sued Rogan civilly after the collapse of the hospital. The United States recovered a judgment of $64 million and Dexia Credit Local bank obtained a $124 million judgment. Neither of those judgments were paid.

The story might have ended there, however, the FBI says that Rogan and his attorney Cuppy obstructed justice by lying about and concealing Rogan’s interest in an offshore Bahamian trust. The indictment quotes Cuppy as telling the trustee, “Also it would be helpful if you can orally tell [Chicago lawyer] that no documents will be sent to anyone and that no information will be given out about the matter. That will allow him to disclose that he is unable to get any information about the trust…”

They also say that Cuppy and another lawyer formed a constellation of other entities including some international business corporations or IBC’s to  further conceal the true beneficial ownership of the trust.

The indictment charges Cuppy and Rogan with lying to the court. Rogan is charged with conspiracy to obstruct justice. Cuppy is charged with an additional 3 counts of perjury.  Conspiracy to obstruct justice carries a possible sentence of 20 years prison while each count of perjury carries up to 5 years in prison.

Creating offshore trusts to protect one’s assets is not illegal. Lying in court documents, concealing the trusts and falsely claiming to have no control over a trust is illegal.  The government says that Cuppy and Rogan used the complex constellation of other entities related to the trust to make it appear that Rogan did not have control of the assets and to prevent the creditors from learning the true ownership and control of the trust.  That’s where prosecutors say Rogan crossed the line from asset protection to criminal obstruction of justice.

Although Rogan’s offshore trust was created long before he was sued and prior to the demise of his hospital, his efforts to conceal the trust assets may earn him a lengthy prison stay.  Cuppy will likely never practice law again and also receive a lengthy prison stay. Courts are especially hard on lawyers who obstruct justice.

–

Brian Mahany is a lawyer concentrating in asset recovery and asset protection. He welcomes comments and questions, contact him by telephone at (414) 704-6731 (direct) or by email at brian@mahanylaw.com.  All calls are completely confidential.

(Asset recovery and fraud cases are primarily handled by the Mahany & Ertl, LLC law firm of Milwaukee. Attorney Brian Mahany is a principal in both law firms.)

It’s no secret that most people who seek asset protection do so after they are facing a claim.  So many clients come to us after they have been sued or receive a threatening letter from a lawyer.  There isn’t much we can do and a now a recent decision from a federal judge in Illinois suggests we might not be able to do anything.

Until now, the biggest risk of post claim asset protection was that the plan simply wouldn’t work.  Courts think that people who try to move assets or shelter income after they are in trouble are deadbeats.  At least one court has said that lawyers that assist debtors with post claim asset protection may face civil racketeering charges.

In the recent Illinois case, the court said that Illinois attorney Frederick Cuppy helped his client transfer assets after the client knew he was facing potential healthcare fraud charges. The court allowed charges to go forward against both the debtor and the lawyer. The case isn’t over and how Cuppy and his client will ultimately fair is unknown.

The facts in Cuppy suggest that the attorney not only helped his client transfer assets into a trust but also ignored subpoenas. Does this mean that every client with potential claims against him isn’t entitled to representation? Of course not. But the case does suggest that lawyers will be reluctant to help with any type of asset protection short of a bankruptcy .

The lesson here is one we have been saying for years. The best time to implement a meaningful asset protection plan is before you are in trouble. For many law firms, ours included, the things we can do for you post claim are now more limited.

If you are in a high litigation risk occupation or have significant wealth, consider an asset protection plan before you are sued. There are many fraudsters and shady people that thrive on the wealthy or make a living by suing people. Don’t give an inch of ground  - call an experienced asset protection lawyer before its too late.

MahanyLaw is a boutique law firm with offices in New England and Milwaukee.  We can help you protect your hard earned wealth from frivolous lawsuits and protect your legacy for future generations or your own retirement.  For a no obligation, confidential consultation, contact attorney Brian Mahany at (414) 704-6731 or by email at brian@mahanylaw.com

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The role of government is to keep the masses content, correct? Apparently not in Virginia.  Earlier this year, lawmakers introduced a joint resolution (HJ 557) to “establish a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by Federal Reserve System in the event of a major breakdown of the Federal Reserve System.”

The bill stated that the failure of the federal reserve system would have dire consequences: “Virginia’s private economy will be thrown into chaos, with gravely detrimental effects upon the lives, health, and property of Virginia’s citizens, and with consequences fatal to the preservation of good order throughout the Commonwealth.”

While the study commission bill died a quietly, such legislation would have been unheard of just a few years ago.  Although publicly the Obama administration, Federal Reserve System and Wall Street keep a generally upbeat prognosis of the future, many Americans are starting to worry.

Governments are getting more aggressive against attempts to shelter money offshore, tax audits are increasing and desperate litigants are more willing to sue.

The good news is that asset protection, including offshore asset protection, is effective and completely legal if done correctly. Unfortunately, most people wait until they are in trouble before considering an asset protection plan.

While Virginia is not presently considering printing its own currency, more and more Americans are realizing we are in a pretty deep mess.

If you wish to discuss an affordable, effective asset protection program, call us.  The consultation is completely confidential. For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at brian@mahanylaw.com.

MahanyLaw - Trusted Advisors to the Highly Successful

by Brian Mahany

Let’s start this post by me saying we are a firm of plaintiff’s lawyers and proud of it. We don’t bring frivolous lawsuits and strive for justice in everything we do. Not all lawyers can say that, however.  I personally know several physicians who are so afraid of being sued that they have much of their money offshore.  The fear is justified but simply moving one’s money doesn’t solve any problems and if done incorrectly, can land you in jail.

There is a place for offshore asset protection if done correctly. An effective asset protection plan need not be complex. It should be drafted by a lawyer specializing in both estate planning and asset protection, however.

Let me share a story from the City of New York and I think you will understand why so many doctors are worried about frivolous lawsuits.

Nancy DiGeronimo is a Jehovah’s Witness. Because of her religious convictions, she does not believe in receiving blood transfusions. Unfortunately, during childbirth DiGeronimo had severe complications and almost died in the delivery room. Her doctor, Allen Fuchs, ultimately had to transfuse blood to save her and the child. He says she consented and her husband signed a consent form. She doesn’t remember (probably because she was near dead).

Ultimately, she sued her doctor for saving her life and the that of the baby. It took 5 long years of litigation before the judge finally through out her suit. In doing so he said, “The plaintiff’s argument, taken to its logical conclusion, is that the doctor should have allowed her to die rather than give her an ‘allogenic’ blood transfusion. Since the plaintiff’s transfusion saved her life, this action is analogous to one for ‘wrongful life’ against the doctor. However, there is no cause of action for ‘wrongful life’ in the State of New York.”  Amen to logic, unfortunately Dr. Fuchs’ defense fees were probably well into the 6 figures.

The point of this story has nothing to do with wrongful life suits and whether the judge was right or wrong. It’s that people in high risk occupations need to worry about lawsuits.  One can only obtain so much insurance and try to anticipate so many risks.

Smart professionals have a well thought out asset protection plan that includes insurance and legal structures to hedge against runaway jury awards and frivolous claims. Simply moving one’s money offshore or purchasing an “off the shelf” trust from an Internet huckster isn’t the way to go.

The time to establish an asset protection plan is before there are any claims or potential claims. Once again, human nature is such that many callers to our firm contact us after they have been sued. Simply trying to hide assets during a lawsuit is often illegal and usually ineffective.

If you have questions about offshore and domestic asset protection, give us a call. The call is without obligation and completely confidential.  For more information contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at brian@mahanyertl.com

MahanyLaw - Trusted Advisors to the Highly Successful

[Depending on your location, services may be performed by MahanyLaw or Mahany & Ertl, LLC. Hat tip to silive.com, the Internet edition of the Staten Island Real TIme News for the story.]

Millions of Americans think of IRA’s and company 401 plans as a means of retirement planning and reducing taxes. When used as part of a comprehensive asset protection and estate planning program, they are great for protecting assets from creditors too.

If an account is a “qualified retirement plan,” it is protected by federal law, the Employee Retirement Income Security Act or ERISA for short. Congress passed the ERISA statute in 1974. It’s purpose is to insure that when workers go to retire, their pensions and retirement funds will be available. Under the law, qualified plans are protected from civil judgments and even bankruptcy. The rules get tricky with IRA’s, especially rollover IRA’s.

Many people think that IRA’s are always exempt from creditors. That’s not true. While traditional IRAs are normally pretty safe, there is a list of prohibited transactions that can open up exposure to creditors.  Purchasing not traditional investments with your IRA is especially risky.

The bottom line? Putting your retirement money in an IRA, a 403 plan or a 401(k) plan often makes sense from both a tax planning and asset protection standpoint. Before you do this, however, spend some time getting some professional advice. Creditors are getting more aggressive. If you are in an occupation with high litigation risks, the need for professional planning is even greater.

For more information, contact attorney Bethany Kroes. The asset protection lawyers at MahanyLaw can help you protect your hard earned money and insure a legacy for your family. From our offices in Milwaukee, Detroit, Portland & San Francisco, we have helped people across the United States. An ounce of prevention now is worth tens of thousands of dollars of legal fees and years of hassle later.

Bethany can be reached at (262) 970-8500 or at bckroes@mahanyertl.com.

Very few people sign a prenup prior to marriage. Even fewer know that most states also allow you to execute one after marriage. Those that enter into one of these agreements - often called marital settlement agreements - frequently do so after speaking with a divorce lawyer.

While most divorce lawyers are competent to draft a prenup agreement, the better option is to hire an experienced estate planning and asset protection attorney. Lawyers who concentrate in this area of work can not only protect your interests in the event of a future divorce, they can help you and your spouse protect yourself from vexatious litigation, runaway jury awards and help plan for your child’s education.

Another benefit of proper prenup planning is that it can make the marriage more successful. When all the players know their rights and obligations, much of the stress and guesswork is removed from the divorce process. That alone often eliminates the desire of the parties to separate.

Preparing a prenup costs much less than most people realize. Very often it can be handled on a flat fee.

To be successful, there must be full disclosure. If you hide assets from your spouse, the agreement stands a high chance of being voided. Although one lawyer can prepare the document for signature by both parties, the lawyer can only represent one of the parties. If just one lawyer is used, the other spouse should be cautioned to have an independent review by a lawyer of their choosing.

Finally, in most states a prenup can’t be used to bind the couple on many issues regarding  children including child support. Courts use a “best interest of the child” standard and that may or not be what the parties agreed to in a contract.

If you are planning on getting married or if you are married and want to create a prenup which divides assets and addressees spousal support (alimony), call us. The asset protection lawyers at MahanyLaw can help. For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at brian@mahanylaw.com

Our offices are in Milwaukee, Wisconsin and Portland. Services can be performed anywhere in the U.S.