N.J. AG says $1.54 million in checks being mailed to defrauded investors
NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Paula Dow announced on Wednesday that checks totaling $1.54 million are being mailed to 72 investors who were defrauded by Robert Brennan.
The New Jersey Bureau of Securities successfully sued the infamous investor and then proceeded to track down assets that Brennan had hidden. Additional investors defrauded by Brennan have until May 31 to submit a claim for restitution.
"This is the day that many investors have been waiting for," Dow said. "The dogged determination of our Bureau of Securities investigators and deputy attorneys general assigned to the Brennan case has brought us to this point."
The Bureau of Securities filed suit against Brennan, L.C. Wegard, an investment firm Brennan controlled and other defendants in August 1995, alleging violations of the New Jersey Racketeer Influenced and Corrupt Organizations Act and the New Jersey Securities Law. Brennan filed a voluntary Chapter 11 bankruptcy petition that same month.
The Bureau obtained a $45 million non-dischargeable judgment against Brennan and L.C. Wegard in June 1999. The Bureau then made effort to find assets to satisfy the judgment, eventually finding a pension fund Brennan had allegedly secretly set up for himself.
"Getting restitution for those who have been defrauded of their hard-earned money is a primary focus for us," Thomas Calcagni, the acting director of the State Division of Consumer Affairs, said. "Investment scams remain out there and the Bureau of Securities is a resource that investors can turn to when performing their due diligence."