$1.54 Million Being Returned to Investors
Defrauded by Robert Brennan
NEWARK – Checks totaling $1.54 million are being mailed to 72 investors who were defrauded by Robert Brennan, the restitution coming after the New Jersey Bureau of Securities successfully sued the infamous financier and then tracked down assets he had hidden.
Additional investors who were defrauded by Brennan have until May 31 to submit a claim for restitution to the court-appointed receiver.
“This is the day that many investors have been waiting for. The dogged determination of our Bureau of Securities investigators and Deputy Attorneys General assigned to the Brennan case has brought us to this point,” Attorney General Paula T. Dow said.
The Bureau of Securities in August, 1995 filed suit against Brennan and L.C. Wegard, an investment firm that Brennan controlled, and other defendants, alleging violations of the New Jersey Securities Law and the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) Act. Brennan that same month filed a voluntary Chapter 11 bankruptcy petition. In June, 1999, the Bureau obtained a $45 million non-dischargeable judgment against Brennan and L.C. Wegard.
A protracted effort to find assets to satisfy the judgment then began, as Brennan claimed he did not have assets. Ultimately, Bureau investigators tracked down assets that Brennan had attempted to hide. A pension fund that Brennan had set up for himself was among the assets seized.
“Getting restitution for those who have been defrauded of their hard-earned money is a primary focus for us,” said Thomas R. Calcagni, Acting Director of the State Division of Consumer Affairs. “Investment scams remain out there and the Bureau of Securities is a resource that investors can turn to when performing their due diligence.”
L.C. Wegard customers during the period October 1, 1991 to September 30, 1994 may be qualified to file a claim if they purchased any of the following securities during this time period:
- Chefs International, Inc.
- Consolidated Technology Group, Ltd. (f/k/a Sequential Information Systems, Inc.)
- Diamond Entertainment Corp.
- Futurebiotics, Inc.
- Gates / FA Distributing, Inc.
- Gentner Communications Corp.
- Great American Recreation, Inc.
- Common Stock
- Zero Coupon Subordinated Debentures
- Subordinated Pay in Kind Debentures
- Immunotherapeutics Corp.
- Lafayette Industries, Inc.
- Linkon Corp.
- Metalclad Corp.
- Nacoma Consolidated Industries, Inc.
- Non-Invasive Monitoring Systems, Inc.
- Officeland, Inc.
- PDK Labs, Inc.
- Primedex Health Systems, Inc.
- Common Stock
- Subordinated Convertible Debentures
- Process Equipment, Inc.
- Sanyo Industries, Inc.
- Site Holdings, Inc. (f/k/a Site-Based Media, Inc.)
- US Transportation Systems, Inc.
If the above criteria are met, investors can obtain a “Proof of Claim” online at www.mercadienclaimsadministration.com or by writing to: Donald F. Conway, Receiver, P.O. Box 7648, Princeton, N.J. 08543-7648.
The deadline for submitting a claim has been extended by the State Superior Court to May 31.
L.C. Wegard had offices in a number of states including New Jersey, Pennsylvania, New York, Rhode Island and Illinois. The North American Securities Administrators Association has worked with regulators in these states in an effort to publicize information about the distribution plan to affected investors.
Deputy Attorney General Anna M. Lascurain, Chief of the Securities Fraud Prosecution Section, represented the Bureau in this matter.
The Bureau of Securities can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378), or from outside New Jersey at 973-504-3600. The Bureau's web site is located at www.njsecurities.gov.