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Hello,
If you know anyone who is affected by the Intrust debacle, this course of
action is something you may want to consider. Please share it with
investment advisors, clients, friends, etc. Please have them contact
government officials immediately. A list of government contacts is at the
bottom of this letter.
These are just a few personal thoughts with regard to the Intrust situation
that I thought you might be interested in. I encourage you to seek competent
legal counsel to protect your interests or explain what is going on. I am
not an attorney so please do not consider this legal advice. I am simply
discussing what someone I know is doing to protect her interests.
In addition, PLEASE CONTACT YOUR government officials and explain the
situation to them. Media may help as well. There are 20,000 account holders
at Intrust. I am just contacting the few I know. That is why your ACTION is
VERY important. Very few people seem to be aware of what is going on. I am
including a personal letter someone is sending to her congressman, senators,
governor, senate and house banking committes, and media. Please correct any
mistakes she or I have made and use any information if it can help you or
your clients.
If these officials can contact the judge before he makes a decision, it
might help. I don't think you should call the judge yourself (personal
opinion). Let your elected officials do what they do best. It seems to me
the State of Illinois should pick up the tab on this since they knew about
this for a very long time.
$68 million is not much for the state of Illinois to pay. Price Waterhouse
is hired by the State of Illinois. They don't want to offend the people who
hired them - the state of Illinois. Lets see if our political system will
protect its citizens.
This is not professional advice. Please act ASAP. This is YOUR money. If you
never acted politically before now is the time !
Dear Congressman,
I desperately need your help. My savings were placed through a money manager
who uses Intrust Corporation as a trust company. Intrust has a website at
www.intrust.com
On April 14th, 2000, the Illinois Commissioner of Banks and Real Estate took
control of Intrust and placed it in receivership. The Commissioner appointed
PricewaterhouseCoopers as receiver for the purpose of liquidating Intrust
through receivership.
PricewaterhouseCoopers filed a lawsuit against the owners of Intrust. The 39
pages of the lawsuit are posted on the internet at
http://www.intrust.com/pdforms/adcivil.pdf
Please download the 39 page lawsuit from the civil litigation section on the
www.intrust.com website for your records.
According to the information presented in the lawsuit, it is very apparent
that the State of Illinois and its Office of Banking and Real Estate should
be responsible for the missing funds and not a retiree !
This was not a one time theft of money, but rather something perpetrated
over ten years ! If the State of Illinois had been doing its job properly,
NONE of this would have happened !
1990 - OBRE auditors(Illinois Office of Banking and Real Estate) Allowed
owner of Intrust to own the bogus Intercounty Title Company of Illinois.
This is a major conflict of fiduciary responsibility to allow the company
who is making the deposits to also own the escrow company ! (Jack Hargrove,
owner, lives in Florida)
1994 - Item 22 on lawsuit - OBRE did nothing to stop the commingling of
funds.
In its report, the OBRE stated "commingling trust assets with that of an
affiliate violates trust common law principles " THEY STILL DID NOTHING!
1995 - Item 24 on lawsuit - OBRE auditors allowed homemade spreadsheets from
Intercounty Title to show that Intrust money was safe instead of actual bank
statements from LaSalle National Bank. Would you let a bank employee give
you a statement off their spreadsheet to show you your money was safe at the
bank or would you want an official bank statement? THEY DID NO CHECKS OR
VERIFICATION ! THEY STILL ALLOWED THIS COMPANY TO OPERATE !
1996 - Item 26 on lawsuit - OBRE still noticed there was no segregation.
THEY STILL DID NOTHING !
1997 - Item 35 on lawsuit - OBRE did not notice the fraudulent LaSalle Bank
statement sent to Intrust manufactured by the escrow company. WHAT TYPE OF
AUDITING DOES NOT VERIFY BANK STATEMENTS? AGAIN, THE OWNER OF THE ESCROW
COMPANY OWNED INTRUST. This is like the fox watching the chickens.
The Illinois Office of Banking and Real Estate did nothing for ten years. If
the audits were done properly, none of this would have happened. In
addition, much of the information was known as far back as 1990. In 1994,
OBRE noticed and reported that there were problems but did absolutely
nothing except issue reports. They waited until the patient was dead April
14, 2000 before they shut them down. If they had properly done their jobs in
1990, a simple stitching would have solved the problem.
It is reprehensible that retired investors on a fixed income be charged for
the missing $68 million when our taxdollars are paying for proper
supervision by the government of Illinois (OBRE) to supervise their trust
companies. Because of their inept mismanagement, I do not feel that I should
have to pay for the government's mistakes. This was not a question of a bad
investment on my part but rather a failure of proper supervision by the
people we trust. I would like you to contact the Governor of Illinois, the
Senators of Illinois, and Judge Sidney Jones III at 312-603-7996 to tell
them that the State of Illinois should pay for their mistakes and not me.
The Judge is making his decision in a week or two how much I have to pay.
The receiver PricewaterhouseCoopers is in a conflict of interest to help the
small person like me. They were hired by the State of Illinois ! I need
someone on my side!
Thank you for your time and consideration.
Sincerely,
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Contact Information for government
Member and Committee Information of the 106th Congress:
http://clerkweb.house.gov/mbrcmtee/mbrcmtee.htm
How to find out who your representative is:
http://www.house.gov/writerep/
Senators telephone numbers:
http://clerkweb.house.gov/106/mbrcmtee/members/teledir/members/SenFrame.htm
Representatives telephone numbers:
http://clerkweb.house.gov/106/mbrcmtee/members/teledir/members/CDFrame.htm
HOUSE COMMITTEES AND SUBCOMMITTEES Telephone numbers:
http://clerkweb.house.gov/106/mbrcmtee/members/teledir/members/ComDir.htm
Governor of Illinois
http://www.state.il.us/gov/
List of 10,000 newspapers:
http://www.onlinenewspapers.com/
List of media:
http://ebsinternational.com/explore.html
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