Florida Lawyer News Services | Robbins Equitas

Brooke Corporation Ponzi Scheme Fallout: Lynch & Robbins Law Firm Succeeds in Dismissing Case Against Franchisee

St. Petersburg, FL, July 20, 2011/PR Newswire / — The law firm of Lynch & Robbins (www.FloridaLawyer.com) has succeeded in dismissing the first of many cases filed against former Brooke franchisees.

The U.S. Trustee voluntarily agreed to Dismiss with Prejudice all claims against “Brooke” franchisee L&L Financial Solutions Inc. — but one major question remains.

Trustee of the Brooke Corporation, Brooke Capital and Brooke Investments herein referred to as Brooke (a Kansas City based company) fails to collect funds from its franchisee injured by Brooke’s  “unscrupulous massive scheme to conceal the company’s deteriorating financial condition” (SEC / Securities and Exchange Commission’s allegations),  and “Brooke’s” resulting Chapter 11 Bankruptcy.

Brief History of the Unscrupulous Scheme:
Brooke sold hundreds of insurance agency franchises, funeral home franchises, and backed loans to fund all through a subsidiary of Brooke. Allegations within the SEC and the United States Bankruptcy Court, District of Kansas, Case Number: 08-22-22786-DLS include: hiding critical information from investors and conducting a financial fraud, reporting inflated asset values, double-pledging collateral, diverting funds for improper uses, engaging in various schemes to meet almost weekly liquidity crises, failure to provide for loan loss allowances, illegal franchise fees not in compliance with SEC regulations, using closed business locations in its asset portfolio, and more.

Landmark Motion:
Adding insult to injury, Albert A. Riederer, Plaintiff, Trustee for the Estate of the Brooke Corporation, files hundreds of lawsuits to recoup funds to repay Brooke’s loans.  The suits are against hundreds of former Brooke franchisees which were already severely injured by Brooke’s deceptive practices, of which Lynch and Robbins Law successfully represented L&L Financial Solutions, Inc. Patricia Fitzgerald, of Lynch & Robbins PA, argued that “the Trustee completely ignored the fact that these Defendants have been the subject of fraud, paid millions of dollars to cover losses and are struggling to maintain their livelihood.”  This case is an example of franchisee beware, things are not always as they appear.

One Question Remains…
The SEC did file a civil fraud case against six (6) top former Brooke executives.  However, why hasn’t the U.S. Attorney filed any actions against the Brooke insiders? The rapid collapse of Brooke impacted hundreds of franchisees and regional banks of which many are now out of business.

Company Overview:
Headquartered in Florida, Lynch & Robbins is a full-service law firm representing individuals, businesses and large corporations in civil litigation. They have offices in St. Petersburg, Tampa, Orlando, Jacksonville, and Miami. The firm’s attorneys defend and prosecute civil cases in State and Federal Courts, Bankruptcy Courts, Administrative Agencies, and Arbitration Forums.  More information is available at:  www.floridalawyer.com.

Contact:
Vincent B. Lynch
Attorney/Managing Partner
Lynch & Robbins PA
2639 Dr. MLK Jr. St. N
St. Petersburg, FL   33704
800-934-5999

Lynch and Robbins Sponsors WUSF Public Radio

The Firm is delighted to announce sponsorship of WUSF 89.7. Listeners may tune to hear our mention between 6-9AM for The Morning Edition and 4-7PM for All Things Considered. Excellent programming which we are pleased to support.

Liverpool RICO Announcement

On January 6, 2011,  Lynch & Robbins PA on behalf of Mainsail Development, LLC and Austin Park Development, LLC  filed  a fifteen count lawsuit  against Aldwyn and Ruth Liverpool, Julie Holden, Rusco Investments Inc., Pinnacle Mutual Inc., and Lass Accounting and Business Services Inc.    Counts alleged within the suit include violations of the Racketeer Influenced and Corrupt Organizations Act, conspiracy, and fraud result from a ponzi or three card monti style scheme  orchestrated  by an alleged “overseas” investor referred to on the internet as “Ms. No Close.”    This individual is  known to be Ruth Liverpool who is  also known or suspected to be either an owner, affiliate and/or associated  party with many other entities perpetrating the same or similar frauds.

We have received many calls and are pleased that other victims of Mrs. Liverpool and her associates are willing to come forth.  However, due to the call volume, we are unable to answer all such calls immediately.  Potential witnesses or victims who wish to speak to  to the attorney on this file , should complete our inquiry form at www.floridalawyer.com and reference “Ruth Liverpool RICO case” so that we may respond to you accordingly.

The following entities are considered of interest to many following our client’s case. The Firm has no involvement in matters involving these entities at this time:

1. RA Holding, Inc.;
2. ARCC Investments and Trust, Inc.;
3. APEX Global Funding, Inc.;
4. The Ruth Foundation, Inc.;
5. R.A.H. International, Corp.;
6. BEBBA Investments, Inc.;
7. TBKT Investments, Inc.;
8. OMB International Investments, Inc.;
9. Davidson/Roberts Investments, Inc.;
10. A. L. Masonry, Inc.;
11. Venture Global, Inc.;
12. Myers Investments, Inc.;
13. First Colonial, Inc.;
14. Destiny Title, Inc.;
15. Vee Global Investment Limited, Inc.;
16. Chisolm Investments, Inc.;
17. DK & KD Investments, Inc.;
18. Natrualle Investments, Inc.;
19. Jomatt Investments, Inc.;
20. Florida Housing & Investors, Inc.;
21. Bebba Investments, Inc.;
22. Manifold Investments, Inc.;
23. Assured Capital Consultants, LLC; and
24. Hastings Investments, LLC

Congratulations Oliver J. Janney

We here at Lynch and Robbins are proud to announce that our very own Of Counsel attorney, Oliver J. Janney was chosen by Tampa Bay Magazine as a Tampa Bay Top Lawyer in the practice area of Intellectual Property. Mr. Janney has practiced law for nearly 40 years after receiving his B.A. from Yale, and his law degree from Harvard Law. Over the years, his practice has included intellectual property law, aviation, private equity, and corporate law.