– 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.
investors who were defrauded by Brennan
have until May 31 to submit a claim for
restitution to the court-appointed receiver.
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.
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.
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.
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.”
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
Chefs International, Inc.
Consolidated Technology Group, Ltd. (f/k/a
Sequential Information Systems, Inc.)
Diamond Entertainment Corp.
¤ Common stock
Gates / FA Distributing, Inc.
Gentner Communications Corp.
Great American Recreation, Inc.
¤ Common stock
¤ Zero Coupon Subordinated Debentures
¤ Subordinated Pay in Kind Debentures
Lafayette Industries, Inc.
Nacoma Consolidated Industries, Inc.
Non-Invasive Monitoring Systems, 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
US Transportation Systems, Inc.
the above criteria are met, investors can
obtain a “Proof of Claim” online
or by writing to: Donald F. Conway, Receiver,
P.O. Box 7648, Princeton, N.J. 08543-7648.
deadline for submitting a claim has been
extended by the State Superior Court to
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.
Attorney General Anna M. Lascurain, Chief
of the Securities Fraud Prosecution Section,
represented the Bureau in this matter.
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.