A new Bernie Madoff in the Lakes Region?

[Meredith Resident]

The Federal Bureau of Investigation is now reviewing the alleged financial wrongdoings of Meredith resident Scott David Farah and his business partner, Donald E. Dodge of Belmont. Farah and Dodge, the principals of Financial Resources Mortgage, Inc., and CL&M, Inc., respectively, both of 15 Northview Drive in Meredith, abruptly closed their doors last week, leaving investors, contractors and mortgagees in the dark as to their whereabouts and, more importantly, the whereabouts of millions of investment dollars. Scott Farah is rumored to be in Africa where he apparently has a "religious retreat camp." His dad, Robert Farah, a priest was interviewed by News 9 yesterday and I have to say I have never been more outraged in my life. The father knows where his son is but won't tell anyone where. Give me a break. What happened to the good Christian that you are preaching to be? The guy thinks it is funny, as he smirks during the interview making comments about "his son needs to get his mental health fixed first." Your church members should shut you down immediately Mr. Farah. Don't BS people with your "god will take care of everything" talk. We don't care about your son’s mental health; we care about the people that want their money back. Here is the interview on WMUR.

http://www.wmur.com/news/21632470/detail.html

More on the story from other news reports.

http://www.citizen.com/apps/pbcs.dll...894/-1/CITIZEN

http://www.unionleader.com/article.a...5-f6eefde89cfd

I am outraged…..

[Lakesrider]

I saw where the one guy just built his house through them. then when the Mortgage place closed one of the investors wrote to the guy that just built, and told him to give his money back. "Immediately". He has no legal right to the guys house. I would have called the cops and had him arrested for harassment. I understand his frustration, but to take it out on the guy that just built his house....Seriously. I would also get a Court ordered injunction against the investors to stay away and make no contact. Sorry to say this, but those investors would not be the first, and certainly won't be the last, to get the shaft on a company that went belly up. Investors knowingly hand over their money. It's not like someone held a gun to their heads. It's called gambling. Just like the stock market. But, yeah I feel bad for them, and hopefully the State will find something.

[Mr. V]

It sounds like a classic Ponzi scheme.

Guaranteed thirteen percent return on investment?

In THIS economy?

C'mon, people, what were you thinking?

[Steveo]

Does anyone know...

There was/is a company named DAK Financial Group that was at the same address as this company - 15 Northview Drive. Is there any connection between the two.

[Meredith Resident]

Good question. I haven't heard anything about DAK, but I know that DAK is big into the annuity's that "guarantee" high returns without any risk. A lot of people invested in them.

[dpg]

Originally Posted by Meredith Resident

Good question. I haven't heard anything about DAK, but I know that DAK is big into the annuity's that "guarantee" high returns without any risk. A lot of people invested in them.

High returns without risk? Shouldn't that raise red flags to any common Joe? Some people it's just too hard to feel sorry for.

[jmen24]

Aren't annuities a low risk, low return venture, mostly used to protect your retirement as it gets closer to being needed?

[donnamatrix]

From what I've heard about Rev. Farah, who has quite a sketchy background evidently- and the ability to separate rich, old folks from their money, even the Dane family, these people are crooks. Why does Rev Farah live in waterfront house on Winni? I didn't realize that being a man of the cloth paid so well. He drives a new Prius. Half of his membership walked out over the snafu with the Dane family property in Center Harbor. And the "food pantry" that is in the basement of the church on Bean Road ... well, that's a little questtionable as well from what I hear. Look at the WMUR site, and read the posts from local folks. Good grief.

[twoplustwo]

They've been swindling people for years. I'd much rather see the father in prison. The son is a scumbag. The father is a scumbag hiding behind God.

[donnamatrix]

From 2006:
http://www.concordmonitor.com/apps/p...50315/0/NEWS03

[Tiger Lilly]

Originally Posted by jmen24

Aren't annuities a low risk, low return venture, mostly used to protect your retirement as it gets closer to being needed?

http://www.mainstreet.com/article/re...hind-annuities

[BlackCatIslander]

I just finished "Too Good to Be True" by Erin Arvedlund. It is the story of Bernie Madoff and is a good read. It is hard to believe that we have scam artists in the lakes region but as the book title implies if it seems too good to be true, then hang on to your checkbook.

[Irish mist]

Two things: everyone should learn to invest their own money. It's not that difficult. When someone offers you 14% in this economy run away. I've heard a lot of things about this crowd over the years, and I feel sorry for anyone who fell in with these guys.

[Kamper]

Originally Posted by Irish mist

... When someone offers you 14% in this economy run away. ...

Maybe but my mutual funds went up 25% in the 2nd quarter and nearly the same dollar value in the 3rd quarter. I'm almost back to where I was when the slide started in August '08. Much faster than when the "Asian Tiger" stumbled in the late 90's.

I hope they catch up with these two people quickly. Some of those investors may be greedy opportunists but there's always are a few who stand to lose their life's savings trying to play catch-up.

[weim2]

Please tell me the story of the Rev. and the Dane Family. Thank you

[Irish mist]

Originally Posted by Kamper

Maybe but my mutual funds went up 25% in the 2nd quarter and nearly the same dollar value in the 3rd quarter. I'm almost back to where I was when the slide started in August '08. Much faster than when the "Asian Tiger" stumbled in the late 90's.

I hope they catch up with these two people quickly. Some of those investors may be greedy opportunists but there's always are a few who stand to lose their life's savings trying to play catch-up.

What I was talking about was when someone offers you a deal, not stock market mutual funds from companies like Vanguard or good bond funds which you can buy yourself. These folks were put into private investments that were questionable.

[Pineedles]

Originally Posted by weim2

Please tell me the story of the Rev. and the Dane Family. Thank you

I second that request. Please tell us of about the "snafu with the Dane family property".

I can't find any follow up to your 2006 Concord Monitor link posting of an article about the father being investigated. I know he hasn't been in jail, because I see him every summer. What happened witht he investigation?

I thought the issue is with his son? Is the father being accused of something? If the FBI asks him where his son is and he refuses to tell them, he's is aiding and abetting, provided the son is charged.

Although I have been in his church for a funeral for a friend and neighbor, I am not a member of his church.

[ARV]

There is no relation between the defunct (if that's even a good word to use) company and DAK. It was just office space and they have moved according to their website. www.dakfinancialgroup.com but I'm not 100% sure.

[upthesaukee]

Originally Posted by Steveo

Does anyone know...

There was/is a company named DAK Financial Group that was at the same address as this company - 15 Northview Drive. Is there any connection between the two.

David A Kutcher, owner of DAK financial. He has not been mentioned in anything I have read on this mortgage company...at least not yet.

[donnamatrix]

My understanding is the Rev Farah has (more than once) persuaded an elderly member of his church to either make donation of cash/money to him, or he has persuaded elderly person to make him executor of their estate, very close to their time of death. One of these cases was settled out of court-so sealed documents. The son was/is an "elder" of the church, before becoming a financial "adviser" ... keep in mind that anybody can form their own church in this country - and it's a tax exempt entity. As long as certain guidelines are met regarding regular meetings, etc., as defined by the IRS. It can be a perfect environment for an unscrupulous character. Who out there has been around Lakes Region since about 1988 that can speak more knowledgeably than I can about Farah??

[Newbiesaukee]

We donated cash to the Center Harbor Food Bank on Bean Road...did this not get to the hungry of our community?

[Bob2]

One of the Dane family members was an early member of the church in its founding days and as a result allowed the church to initially move into a building on the old Red Hill Inn property. Eventually the church signed a long term (99 years I believe) lease on a building closer to town owned at least in part by the Dane family. Gradually, "Pastor Bob" provided more and more 'neighborly' support to this Dane family member in particular. She could be a bit manipulative herself, but was no match for the pastor. Over the years he gained more and more control of at least portions of her vast wealth. A few of the elders learned that some of the money had been misused and that, in addition to issues related to a growing chasm in spiritual beliefs/teachings, caused them to resign and leave the church along with half the church members on a single day. The Dane family was incredibly generous to the church, but when the extended family members learned of the pastor's increasing control over their local relative and her funds they began to make a stink. I'm not sure what the outcome was, but my understanding is that it never made it to the courts so I'm guessing there may have been some type of out of court settlement.

Pastor Bob was notorious for 'counseling' people--couples, families, etc...--and telling each party what they wanted to hear. In doing so, each side fully expected the pastor to tell the other that they were in the wrong and needed to apologize and make amends. However, when that didn't happen it only caused more friction and further problems. Communication problems between individuals counseled by him only became worse and in my case it took years to find out the truth. Why he has ANY congregation left is beyond my comprehension.

[Redwing]

I am just a tad confused here. You write about "Pastor Bob" in your post, and your forum user name is also "Pastor Bob"? Please clarify this mysterious connection. Welcome to the forum!

[Bob2]

To clear things up re: my user name...it's called sarcasm....

[eillac@dow]

Originally Posted by PastorBob

To clear things up re: my user name...it's called sarcasm....

Thank you for the clarification, but it confused me as well. You might want to think of coming up with a new name. I would hate for people to think that "you" are the actual Pastor.

Welcome to the forum.

[weim2]

What? I do not understand your answer.

[Yosemite Sam]

Originally Posted by Meredith Resident

His dad, Robert Farah, a priest was interviewed by News 9 yesterday and I have to say I have never been more outraged in my life.

Is he a "priest" or a pastor?

I keep reading "Pastor Bob" in other posts and newspaper articles.

[Redwing]

And is he a "real" minister, who has actually gone to Divinity School for an advanced degree in theology, and subsequently ordained, or is he a "self-proclaimed" minister?

[weim2]

That is a great question Redwing!

[VtSteve]

Originally Posted by Redwing

And is he a "real" minister, who has actually gone to Divinity School for an advanced degree in theology, and subsequently ordained, or is he a "self-proclaimed" minister?

Generally I don't care whether a crook has credentials. I see what you mean though.

[CGI3]

This has been going on for over 100 years. Nothing new. New investors, pay old. And it can, and does in many cases go on for quite some time. All the cards come crashing down when 20-30% or more of the investors ask for ALL their money back at the same time. Google Charles Ponzi, believe me, he was not the first, and certainly won't be the last.

[SumoDog]

I forget who once said it - but if we do not learn from past mistakes we will continue to repeat them - how many times does greed have to take over common sense and people lose everything - whatever happen to strong, sound investments with solid returns - General Electric, IBM, Intel Microsoft et al - we see what they make - how can supposedly intelligent people keep getting trapped by fly by night 15% returns - I love money - but if someone said they could get me 15% - I would run - it makes no sense - but keeps happening over and over again. My heart goes out to those who lost out - but sit back and take your lumps - it was your decision.

[donnamatrix]

First, Bob2-thanks for the background on Farah and the Dane family. I thought it went to court- but have been wrong in the past!! He is definitely of questionable character.

Newbie: The Center Harbor Food Bank run out of the church on Bean Road is NOT like the Meredith Food Pantry or the Center Harbor Soup Kitchen. It is not a 501C-3 or any other kind of non-profit, do good group. The Center Harbor Soup Kitchen is not a registered nonprofit either, but the 3 women who founded and run it are all salt-of-the-earth. My understanding regarding the Farah/Bean Road church group is that Farah, who also collects "unwanted" food from Hannaford in Meredith, provides for the members of his congregation - not necessarily the needy of the CH area. I would be leery of donating money to them.

Anybody can form a "religious group" ... it can be a terrific IRS scam if you are savvy enough to work it and not get caught. Look at Jim Baker, et al.

[Newbiesaukee]

I knew it was not a 501 c 3; but I had hoped to help the community. Fortunately it was a relatively small sum

[Bob2]

A pastor does not technically need any formal or official designation ...anyone can call themselves a pastor. I'm not sure how much theological education Bob Farah has under his belt, but I can assure you that most of what he teaches comes from his own interpretation of the bible. A "priest" is a catholic term I believe, while "minister" is typically used in most Protestant religions.

Center Harbor Christian Church (and Center Harbor Christian Fellowship before that) is considered a non-denominational church--meaning the church congregation and its leaders are not accountable to anyone. In my opinion, this is one of the biggest problems with this church and others like it. They set their own rules (structurally as well as morally). Anytime you see the word 'pastor' used it is often safe to assume that person has been elevated or put on a pedestal by his/her 'flock'. It's kind of ironic how non-denominational churches refer to the relationship between their leaders and the congregation as the "shepherds" and the "flock". Sheep are not leaders...they are followers. If it is too painful for you to think for yourself then by all means you should join a non-denominational church (or most other organized religious institutions for that matter). Without someone leading/directing them and telling them what to do and how to do it they would literally die. The root of the problem here lies with handing over complete control to any one individual. In this case the pastor has been "ordained by god" as they say in the church world. In reality he/she has been "ordained" by man and man alone.

Careful who you put your faith in and how much of it you give them...regardless of whether it's money or your soul you're dealing with. Not to mention, take ownership of your own life...if we are all truly "created in the image of God" as the bible proclaims then you don't give God or yourself enough credit if you think that you weren't created with enough common sense and knowledge to make daily decisions without checking with a church 'leader' first.

and to the comments related to "not getting" my answer to questions about my original user name ("PastorBob")...if you really don't understand sarcasm then I'm not sure what to tell you. In all the news reports surrounding this story and "Pastor Bob's" replies I have yet to see anyone come to his rescue or that of the Farah family--I think that speaks volumes. Maybe the Lakes Region community finally sees them for who they really are. That said, the two other Farah sons have lived outside the area for many years so I can't speak to their characters other than to say that the middle son, Paul, was seen as the black sheep for most of his life. I would venture a guess that from the little I know of him now he is probably the most upstanding member of that family and that being the 'black sheep' has worked in his favor.

[Pineedles]

Are there any folks here who were part of the earlier exodus from the church and could provide first hand accounts? I am guessing that Bob2 wasn't, as he seems to be telling the story from a third party point of view. BTW, he has some good advice regarding putting your faith in people in his last post, but I am still wondering why we are directing the attention towards the father, rather than the son. I'm guessing that some think that he is directly involved?

Pastor Bob as opposed to the former Pastor Bob aka Bob2 is a neighbor of mine and I have never had any reason to distrust him. We are not close, and we have only spoken a few times but I would have thought I would have picked up on some defect in his character. In converations with my relatives, whom may know Bob better than me, they also have not related any negatives about the man.

I'm not coming to his rescue, but I wanted to insert my 2 cents into the conversation of what I directly know.

[wifi]

Originally Posted by Bob2

.... Anytime you see the word 'pastor' used it is often safe to assume that person has been elevated or put on a pedestal by his/her 'flock'. It's kind of ironic how non-denominational churches refer to the relationship between their leaders and the congregation as the "shepherds" and the "flock"......

I disagree, the word 'flock' appears in the Bible (Lk 12:32, for example). Because a church is non-denominational or does NOT belong to a 'major' religion does not imply absolutely its 'wrong'. I do believe the person in question had a home study course, but please don't paint everyone with such a broad brush.

Originally Posted by Bob2

.......if we are all truly "created in the image of God" as the bible proclaims then you don't give God or yourself enough credit if you think that you weren't created with enough common sense and knowledge to make daily decisions........

WOW!, Wonder how Hitler or Stalin, (or some such) would use this statement to their advantage?

I've hit delete a bunch creating this post, trying to skate on thin ice. Please don't make one bad apple spoil the many who are really doing good

[Bob2]

Quote: "I disagree, the word 'flock' appears in the Bible (Lk 12:32, for example). Because a church is non-denominational or does NOT belong to a 'major' religion does not imply absolutely its 'wrong'. I do believe the person in question had a home study course, but please don't paint everyone with such a broad brush."

I never said it was 'wrong' I said that those churches are not accountable to any standard but their own. I've been a member of many non-denominational churches and that was the one thing that was consistent with each one. I also never said the word "flock" did not appear in the Bible. It has simply become an overused term in the lingo of "Christianese".

Quote:
Originally Posted by Bob2 View Post
.......if we are all truly "created in the image of God" as the bible proclaims then you don't give God or yourself enough credit if you think that you weren't created with enough common sense and knowledge to make daily decisions........
WOW!, Wonder how Hitler or Stalin, (or some such) would use this statement to their advantage?

...I have no earthly idea why Hitler and Stalin were brought into this thread. I never said every human being is perfect or that ANY of us are perfect for that matter. What I was alluding to is that if that scripture is true (and remember...you can't pick and choose what you want to believe from the Bible if the rest of us can't do the same)...we are all born with the 'tools' needed to make good decisions. This does not mean that everyone chooses to use those tools. Honestly, I don't see how Hitler or Stalin could use that statement without shooting themselves in the foot.

Lastly...no need for anyone to walk on "thin ice" for my benefit (unless you're afraid you're going to fall in). I'm not angry at all, just voicing my opinion which I think gets to the heart of the Scott Farah issue (and yes...in my mind, chances are very good his father is involved on some level).

To Mr. Farah's neighbor: you and your relatives/friends have had very limited interactions with him. He has been able to base his pastoral career on the fact that he can be charming and friendly when he wants/needs to be. As a person you might run into on the street I don't doubt he is friendly, I never said he wasn't a friendly person. He is just not a trustworthy one and he is an expert of a hypocrite.

[Pineedles]

Originally Posted by Bob2

To Mr. Farah's neighbor: you and your relatives/friends have had very limited interactions with him. He has been able to base his pastoral career on the fact that he can be charming and friendly when he wants/needs to be. As a person you might run into on the street I don't doubt he is friendly, I never said he wasn't a friendly person. He is just not a trustworthy one and he is an expert of a hypocrite.

Bob2,

First of all my screen name is Pineedles, but you can call me Pine if it is easier.

It appears to me that you have been wronged by either the son or the father. It's OK if you have a beef with either. Let's get to what you know or what has happened to you out in the open.

As far as what you seem to want to credit me with saying. I don't doubt he is friendly, I never said anything about friendly.

I said, in my previous post "I have never had any reason to distrust him. We are not close, and we have only spoken a few times but I would have thought I would have picked up on some defect in his character. In converations with my relatives, whom may know Bob better than me, they also have not related any negatives about the man."

As far as your assumption that my relatives have had limited interaction with him, that is an assumption on your part that is incorrect. I never said they had the same limited interaction with him, I said I did.

But once again it appears that the father is the target rather than the son. Is pastor Bob the guy that wronged you?

[SAMIAM]

Why are you guys being so hard on Bernie and Scott???.....Nothing wrong with a little Ponzi. Your government has been doing it for years, legally. There is not a dime in the SS account. It's all been transferred to the general account and spent. All social security payments are made by "new investors" just like Bernie Madoff.....only he's in jail.

[Pineedles]

I assume when you say Your government, you haven't figured a way of being governed by some other entity? Unfortunately it is Our govenment, and when enough people realize it is not their government we might see some meaningfull change. Not the false "hope for change" that they have elected.

[fatlazyless]

Today's www.Citizen.com says the NH attorney general has filed a petition to place Financial Resources into federal bankruptcy court as an involuntary bankruptcy. The lawyer for the principal says his client has been away, under a doctor's care, and will return.


When the Bernie Madoff scheme first came to light, a couple europeans who were duped into investing their client's millions & billions with Madoff went to the slow and painfull extreme of suicide by slitting their wrists while seated, fully clothed, in a bathtub without water. That could be a French traditional manner for expressing one's personal regret ......so sorry about the mess & bon voyage!.....

Gee whiz...why not have the State of NH jump in, & bail out Financial Resources with a big injection of 23-million dollars of state cash, just like the feds did for AIG, Citi, Bank of America, GM, Fannie & Freddie.....but not Lehman Brothers or Washington Mutual who are now pending in bankruptcy court.

...and how much risk is too much risk? ...and if the decision-maker did not have a go-to backer behind them, would they have taken on so much risk? So, where do investors go to get their money back?

So, what exactly happened to Financial Resources, and where exactly is the presumably lost money now? Where did it go? Where is the money? Was it accidentally thrown out with the morning trash? Was it secretly buried up the hill, behind the big pine tree? Was it loaned out to people who can no longer repay their loans for some unknown reason and now Financial Resources cannot make its' monthly payouts to its' investors? Like, what happened? Where's the money, and where did it go, and how did it get there?

Hey, the Sunday Nov 22 www.concordmonitor.com has a long article on this. It is longer than 1/2 of a newspaper page.....that's long for a NH paper....and full of info.

[trfour]

now reads, 149 years +.

Somewhere in the United States Constitution, you will find the words, "and I quote", "We The People"... If we all ever needed to get involved, that day in time is Now! Summer vacations are Over!

"WE, and only WE", are resposible for our future!
I would strongly suggest at this time, everyones involement and support!

Todays issues in the Lakes Region,
Terry

[twoplustwo]

A pastor does not technically need any formal or official designation ...anyone can call themselves a pastor. I'm not sure how much theological education Bob Farah has under his belt, but I can assure you that most of what he teaches comes from his own interpretation of the bible. A "priest" is a catholic term I believe, while "minister" is typically used in most Protestant religions.

Catholics do have priests, as do Episcopalians, although the term priest is straight from the Bible and is certainly not owned by any one denomination.

Protestant churches do have ministers, many of whom are referred to as pastor or reverend depending on the church and sometimes the geographic location (I've heard pastor used far more in the south, reverend from the mid coast on up). They gained their ordination through schooling and not a self-titled attempt at screwing people over. While *this* pastor is a scumbag, assuming "pastor" = evil is way off base.

[donnamatrix]

I just read that St. Charles Church, after supporting the Meredith Food Pantry for 31 years (which is a registered non-profit organization), has now rescinded its support -and will be giving ALL of their contributions to Rev. Bob Farah at the church on Bean Road. Does Rev. Audet have his head wedged somewhere ?? I am stunned by this turn of events, and if you are a member of this church, you should find a way to stop this. It has been going on since October ... unconscionable.

[twoplustwo]

I saw that in the La Da Sun, Donnamatrix, and it made me sick to my stomach. That guy is an amazing con artist.

[Pineedles]

Certain facts have been brought to my attention that leads me to the same conclusion that some have expressed here about Bob Farah. He is not the person I thought he was.

[Pineedles]

Owner of closed mortgage company returns to NH
(AP) – 3 hours ago

MEREDITH, N.H. — A lawyer for the owner of a closed mortgage company being investigated by the state says his client is back in New Hampshire.

Company owner Scott Farah, Financial Resources Mortgage and its partners are at the center of an FBI and state investigation after the company closed suddenly this month.

Since then, dozens of investors and borrowers have claimed that Farah and Donald Dodge are holding at least $23 million in investments.

This week, a U.S. bankruptcy court judge granted the state's request to force Financial Resources and a related business, CL&M, into voluntary bankruptcy. An interim trustee has been appointed to take control of any property, records, money and payments and communications belonging to the two companies.

A hearing has been scheduled for Dec. 3 at the U.S. Bankruptcy Court in Manchester.

[SteveA]

Originally Posted by donnamatrix

Anybody can form a "religious group" ... it can be a terrific IRS scam if you are savvy enough to work it and not get caught. Look at Jim Baker, et al.

Interesting... Frankly, fair or not, my "what the heck is this really all about" alarm went off after spending a little time on my-pastore.com


http://www.my-pastor.com/pastor-robert-farah.html

I don't find any answer to the questions raised here on his pastoral training and education. Maybe I just missed it.

[fatlazyless]

....well....to answer the question....where did the 31-million go....here is reportedly where one 12-million dollar chunk of it went....

Financed with a 12-million dollar construction loan from Financial Resources Management of Meredith, NH..... After... " nearly four years since construction began at Abbott Village, the luxury condo developement on North State Street, Concord NH, that has no residents, no prospective buyers and no promise of swift rebound from a stagnant housing market......"

article by Daniel Barrick, www.concordmonitor.com, Sunday Nov 29

....this article does not sound too encouraging for the FRM investors looking to get their money back..

31-12=19-mil....so what happened with the rest of the money? So, what's the big boss driv'n for a car.....probably not a Geo Tracker?
........

...some of the comments from the Concord Monitor email peanut gallery...

"The guy made a bad business decision thinking that some of that Massachusetts money would be spent on property NOT on a lake." by DZ


"Who would spend 500,000 on any property with the view across North State Street?" by littlecitygirl

[Meredith lady]

As a resident of Meredith for 27years, and a member of St. Charles Church for just as long (I was married in the original church)..and baptised both my children there (and Sunday school..confession, first communion)..I was shocked to see that St.Charles has now decided to support the Center Harbor Food Pantry vs the Meredith Community Action Program and the food pantry there. St. Charles is in Meredith, for goodness sake! I know Meredith has more population than Center Harbor, and probably more resources..but what ever happened to taking care of your own? This whole thing has made me livid...when I drop off a donation, or food, or volunteer my time, I expect it to go back to my community. CAP in Meredith has been there for 35 years does an awesome job to help our citizens who need assistance...why the change??

[Just Sold]

From the Union Leader this morning......

By DENIS PAISTE
New Hampshire Union Leader Staff

MANCHESTER – Attorney Chris Carter, who is representing a Texas couple in a suit against Financial Resources Mortgage Inc. -- the shuttered Meredith company under investigation by state and federal officials -- says his only surprise is that authorities didn't take action sooner against the company and its principal, Scott Farah.
Carter said he communicated his concerns to authorities at least three years ago.
Since Financial Resources Mortgage and related entities closed abruptly Nov. 9, state and federal investigations have begun.
Civil suits have been filed in both Belknap and Merrimack superior courts seeking to recover more than $23 million on behalf of people who say they invested with Farah.
"I've dealt with this company for seven years, and during that period I've been involved in four separate lawsuits with them," Carter, of HinckleyAllenSnyder LLP in Concord, said in a telephone interview.
Each of those prior suits was settled out of court, he said.
"During that period of time, I have personally seen objective, documented proof of fraud being committed by Scott Farah, Financial Resources Mortgage and other individuals involved with him," Carter said.
"Therefore it is not surprising to me that this most recent disaster has occurred," he said.
►Mortgage firm's investors head to court tomorrow
►Investors wonder: Where did all the mortgage firm's money go? (2)
►Troubled mortgage firm under water
►FBI looking into mortgage firm's closure (9)
Attorney Michael D. Ramsdell, of Orr and Reno in Concord, who represents Farah, did not immediately return a phone call yesterday.
"The full extent of the fraud in the case of my client is not yet known and cannot be until we obtain further information during discovery," Carter, who is a former New Hampshire prosecutor, said. "At this point given the claims filed by other individuals, we have serious concerns about the legitimacy of any of these transactions."
Carter served in the New Hampshire Attorney General's Office from 1997 through 2001, leaving as a senior assistant attorney general in the homicide unit. He also prosecuted white collar crime.
Carter is currently representing Chris and Robert B. Furgerson of Houston, Texas, in a civil suit filed in Belknap County Superior Court to recover $1.6 million.
Among previous cases in which he represented clients against Farah were National Inspection and Repair of Topeka, Kansas, and Ronnie Stone, Carter said.
"I've seen numerous instances where Scott Farah induced people, including members of his church, to invest money in what he claimed were legitimate investment opportunities with Financial Resources," he said.
Farah "provided the individuals with paperwork identifying those alleged opportunities by name when in fact the so-called investment vehicles did not exist," Carter said. For example, Farah solicited funds on behalf of National Inspection and Repair after it had gone bankrupt, Carter said.
"Scott Farah and Financial Resources were fully aware of the fact that National Inspection and Repair was no longer a viable functioning business and in fact had hundreds of thousands of dollars of debts," he said.
Write to New Hampshire Union Leader Business Reporter Denis Paiste at dpaiste@unionleader.com

[fatlazyless]

FRM is/was located close to the roundabout, way up top of the hill and sort of overlook'n Meredith Bay, and the mountains to the north.

Where-o-where-o-where is the money? Could be a good time to nose around behind the building with a metal detector. Check for suspicious looking disturbed grass and soil? Maybe check the space above the suspended ceilng? Check under the cowl of the Merc 150 on the Whaler? Check in the attic of the boat house? Look in the sock drawer? Check under the spare tire on the Escalade?

Some lawyerly look'n guy on Channel 9 said it could be as much as 75 million, as opposed to just the reported 31 million.

This is a big NH news media story.....top of the front page.....lead story 6pm tv news.......and it happened right here in Meredith!

Could be they shopped the new Hannaford's and thought it was priced ok........ok..........$88.00 for groceries.........no problemo.....strictly small potatos!

Lots-o-luck to anyone look'n to get their invested money back....where did it go and why is it now maybe non-existant?

Were the incoming "investments" used to pay the high interest out to prior "investors" and to cover any redemptions? It sort of explains how such high interest could be paid...

FDIC......$250,000 insured........not here buddy....

[trfour]

Testimony herd on Morgage company's missing funds.
In todays Citizen.

http://citizen.com/apps/pbcs.dll/art...918/-1/CITIZEN

[fatlazyless]

Here's a legal defense for the principal at FRM in case he has to go to criminal court vs either the US attorney or the NH attorney general.

He can legitimately claim that over exposure to a cell phone tower......the transmission of multiple cell phone signals....from a distance of 50' or less...is what made him engage in a massive 100-millon dollar ponzi scheme.

The cell phone tower made him do it! This can be called the cell tower alibi!

What the H am I talking about?

The office building that is home to FRM is located up on top of a Meredith hilltop called either Ladd HIll or Sunset Hill, and is close to the Meredith roundabout and Energysavers.

A large and very powerfull looking cell phone tower, crawling with wires, transmitters, and a large multitude of various communication gear sits literally 13' away from a corner of the FRM building.

The perfect alibi....the cell tower made him do it.....is totally believable if you could see the installation. It's just totally amazing what long term, up close and personal exposure to a cell phone tower can do to one's sense of critical thinking. Like, is offering loans out at 20% and offering investors a return of 15% a good idea? You know it is! This idea came while under the infuence of that high-powered cell phone tower.


In the words of the immortal African American musician & singer, Scream'n Jay Hawkins, "It cast a spell on me, and now I'm yours!" 'So, that's my story and I'm stick'n to it.....Mr U.S. Attorney for N.H.' !

....yeah......the cell phone tower defense.....that is highly believable after you see the tower installation so close to the building....how close is it.....so close!

bbbbbzzzzzz-bbbbbzzzzzz-bbbbzzzzz

[VitaBene]

Originally Posted by fatlazyless

. Like, is offering loans out at 20% and offering investors a return of 15% a good idea? You know it is!

If that is what they were doing, that is fine- that's how it was in the 70s and early 80s- remember those 10% CDs? A 5% spread is good business.

Please don't equate capitalism with greed and theft.

[twoplustwo]

http://www.citizen.com/apps/pbcs.dll...7/-1/citnews04

Pastor linked to mortgage schemeLaconia:

By GAIL OBER
Saturday, December 5, 2009

A superior court judge has ordered all of Pastor Robert Farah's assets, including his three properties, frozen despite his personal pleas to release them.

Farah, who represented himself before Judge Kathleen McGuire in Belknap County Superior Court Friday, had been named as a respondent in a suit filed by Robert Furgerson, one of the alleged victims of his son, Scott David Farah's alleged Ponzi scheme. After the suit was filed, McGuire ordered that all of the respondents' assets be temporarily frozen until Friday's hearing.

"Everything I own is attached," said Robert Farah. "Me and my wife. We can't pay for anything."

Furgerson came from Arizona to testify and said he was enticed by Robert Farah to invest the proceeds of a real estate sale into some investments coordinated by Scott David Farah.

Represented by attorney Chris Carter, Furgerson needed to show that Robert Farah substantially influenced Furgerson's decision to invest through Financial Resources Mortgage, Inc. and that his finances were linked to that of his son.

Furgerson said he first became aware of Financial Resources Mortgage, Inc. when he received a postcard solicitation and, after some investigation, he made a $60,000 investment. He said after that he often received phone calls from Scott Farah but, when Scott Farah learned of his real estate sale, the frequency of the calls increased.

He testified that Robert Farah called him once or twice, a claim Robert Farah denied.

Furgerson said he continued to demure on the larger investment and Scott David Farah invited him to visit New Hampshire and offered him his father's cottage on Lake Winnipesaukee to stay.

"It was kind of like Beaver Cleaver," said Furgerson as he described how both Farahs and their wives and children made him dinner during his visit.

"We held hands and prayed and part of that prayer was that [his son's] business continued to prosper," Furgerson said. "It was like a movie set."

He said it was just before the meal that Robert Farah encouraged him to invest, adding, in retrospect, he thinks he must have "checked his brain somewhere."

As Robert Farah continued to deny he had any active role in his son's business, Carter provided document after document that he said proved just the opposite — including one that listed Robert Farah as one of the incorporators of Financial Resources Mortgage, Inc., in 1989 when the company was formed.

Robert Farah admitted to lending his son the money to start FRM but said he withdrew his interests once the company got going.

Carter also stated that one parcel of land that was sold to Furgerson through a realty trust was once owned by the Center Harbor Christian Church.

Robert Farah replied that the Center Harbor Christian Fellowship once owned the land while the church he ministers is the Center Harbor Christian Church.

He denied that either he or his son used the pulpit to solicit investors. "We are a poor church. Many of my parishioners are unemployed," Robert Farah said.

Carter also called on Oskar Klenert, the owner Earth Protection Systems, who claimed Scott David Farah raised $2.5 million, allegedly for his company, and Furgerson was a supposed investor.

Klenert said he had not planned to testify, coming to Laconia from his home on Cape Cod like many other erstwhile investors to see the proceedings and to try and learn what was happening. He said he had known Robert Farah for nearly 40 years and Farah encouraged by him to go see Scott David Farah to raise money for his invention, the Earth Cell Module.

"Do you know [Robert Farah]?" McGuire asked him.

"Yes," said Klenert.

"Is what is represented by Mr. Carter true?" she continued.

"Yes," he answered.

"Did he induce you?" she asked.

"No," replied Klenert. "It was some kind of plan and after the loans were paid I agreed to give him part of the business."

Following the hearing, Klenert and Farah spoke briefly though it is not known what the two longtime acquaintances said to each other.

In the hallway, Robert Farah acknowledged the hearing did not go the way he had hoped but he declined to say more.

Klenert said he was completely taken aback by what he heard in court about Scott David Farah's dealings and the number of people he allegedly defrauded. He said he hoped the Farahs live the rest of their lives with some element of remorse.

"I say, let the truth prevail," said Klenert.



They're a poor church? Then why is he living large?

[Rattlesnake Guy]

Originally Posted by fatlazyless

What the H am I talking about?

Thank you, I thought it was just me......

[fatlazyless]

Originally Posted by Rattlesnake Guy

Thank you, I thought it was just me......

Reading the NH newspapers told me that 75-100-mil of local investors money was turned into dust by Financial Resource Management. Not having anything better to do, I drove up the little side road next to Energysavers just to look at the FRM building. No, I honestly did not expect to find any plastic wrapped bricks of hundred dollar bills protruding through the mulch under the bushes, or anything, but I was surprised to see the cell phone tower so very close to the office building. It just struck me as odd and unusual to have this very powerfull looking cell tower so immediately close to the building. No doubt, it is not relevant to the ponzi scheme, but it seems to me like a somewhat interesting side note.

Usually, cell towers are placed way off by themselves, either on a distant hilltop, or in a septic treatment facility, but here was one only 13' from a building with people inside. Just seemed very weird!

[wifi]

The FCC has a very well known set of rules regarding emissions, this will not be an issue.

As many know, BHG used to transmit from that very tower, and when I was servicing the transmitter (many years ago), it was well within FCC guidlines, and that was thousands of watts into the antenna array.

[fatlazyless]

Originally Posted by wifi

The FCC has a very well known set of rules regarding emissions, this will not be an issue.

...well...that certainly is reassuring...because another close & nearby neighbor to the cell tower is the newly constructed Meredith Bay rehabilitation center....and every time the cell tower transmits out, the transmissions must pass directly through the walls of the large rehabilitation center & nursing home...

Seeing the tower up close with all its' numerous thick wiring, transmitters, & heavy duty electronic gear.....it sort of resembles a giant tazer gun from an old James Bond movie that belongs to Financial Resources Management.......like.....ZAP!......take that.......(you lse your money........too bad......Mr Richy Rich)................bbzzz......bzzzzz.....bbzzz ......ZAP.....got another one......15% - Guaranteed Return.....oh yeah.....way-to-go.....let's aim this baby at Wolfeboro...there's plenty rich people over there!!

[Yosemite Sam]

Originally Posted by fatlazyless

...well...that certainly is reassuring...because another close & nearby neighbor to the cell tower is the newly constructed Meredith Bay rehabilitation center....and every time the cell tower transmits out, the transmissions must pass directly through the walls of the large rehabilitation center & nursing home...

So if Johnnie Cochran was still alive and handling this case, he might say: If the cell tower emits, you must acquit.

[Pineedles]

Sam that is too funny! FLL, I'd get down there and start selling tin foil hats asap.

[Mr. V]

Originally Posted by Yosemite Sam

So if Johnnie Cochran was still alive and handling this case, he might say: If the cell tower emits, you must acquit.

To which the DA will respond: "No defense is that tower, in jail he must cower."

[jmen24]

FLL, cell tower sites are treated as a boundary line in respect to setbacks. The town regulated how close an accessory structure or your house can be to the front, sides and back of your property line (these can be breached with proper filing of a variance and receiving approval), this allows the owner of the property that the tower sits on to build ANY structure within setback distances from the cell site. I am guessing that the 13 foot number is a WAG, just seems really odd for a setback, typically in 5 foot increments.

With that in mind, FLL, hope you have a really good relationship with your neighbors, you could be the next person with a cell tower within 15 ft of your property line.

I would think you would want to be directly under the cell tower. I do not know if anyone else notices this but the closer you are to a tower the worse your service is. I was told at one point that it has to do with the broadcast cone, who knows could have been smoke.

[gravy boat]

What a surprise! From today's Union Leader...

http://www.unionleader.com/article.a...b-3bfb9734bcbc

Reminds me of a saying -- something about a nut not falling far from the tree...

[twoplustwo]

Apparently no one at the Union Leader has seen that place.

[Just Sold]

List of those suing over mortgage scheme gets longer:

http://www.fosters.com/apps/pbcs.dll...=2009712099874

[robmac]

A developer in Nashua has listed both companies as lenders who defaulted on loans to him as well. This isn't his only problem but certainly adds to the list.

[BlackCatIslander]

We are curious. We do attend St. Charles when we are at the lake but it has been some time since we have been up on a week end. Has the church made any response or explaination to why their change in support of the Meredith Food Pantry?

[fatlazyless]

Yesterday's Dec 12 www.citizen.com had another article about the Financial Resources Mgmt of Meredith ponzi scheme and spoke about clawbacks.

What is a clawback? That's where the US bankruptcy court that's now in charge of cleaning up this financial mess seeks to get FRM investors to give back their interest payments received.

And, how do you like them apples....just imagine that. First as a trusting investor you find out that your principal money invested is gonzo, and now the court says for you to repay your old high 15% interest received.

Not a happy ending in sight here, except of course, for the attorneys, as it is all billable hours to them.......what's a good lawerly phrase here for how they work.....litigate & collect.....churn & burn....file a motion & buy a Volvo.....adjudicate & think waterfront.....'listen to your client sing & go buy girlfriend a big fat diamond ring'.......hmmmm.....got to be some better phrases out there than these......? ...

[fatlazyless]

Talking about clawbacks, according to this here list of political contributions http://www.city-data.com/elec2/elec-MEREDITH-NH.html that I found on google, the principal at Financial Resources Management, Scott Farah, made a $250 contribution to the National Republican Congressional Commttee back in 2001. Hopefully, the Republicans will not have to return the money because those Republicans seem to be needing all the help they can get for right now at least.

[Greene's Basin Girl]

Originally Posted by fatlazyless

Talking about clawbacks, according to this here list of political contributions http://www.city-data.com/elec2/elec-MEREDITH-NH.html that I found on google, the principal at Financial Resources Management, Scott Farah, made a $250 contribution to the National Republican Congressional Commttee back in 2001. Hopefully, the Republicans will not have to return the money because those Republicans seem to be needing all the help they can get for right now at least.

I wonder how you voted in the last election? I hoped your pleased with all the stimulus. Maybe some of that should help pay back the people that were robbed by Farah. Why not? There is plenty of pork to go around.

[fatlazyless]

Originally Posted by Green's Basin Girl

I wonder how you voted in the last election? I hoped your pleased with all the stimulus. Maybe some of that should help pay back the people that were robbed by Farah. Why not? There is plenty of pork to go around.

In the January 6, 2008 NH presidential primary, I voted Mitt Romney. In August 2008, I switched from going with McCain to Obama, and voted Obama on November 4, 2008. Having a president on the lake up in Wolfeboro would have been really something!

One big difference between the bailed out banks and investing with Financial Resources Mgmt is that bank depositors have bank failure insurance with the FDIC.

For a much safer investment the FMR investors could have bought McDonald's stock which also has no insurance other than the power of their hamburger & french fries. You know, the Meredith McDonald's is actually located just about 100 yards downhill, through the woods, from the Financial Resources Mgmt building. Probably, some of those who lost big money with FRM probably stopped at McDonald's enroute to FRM, like maybe at their take-out window. Hindsight is 20/20, but to think they could have invested in MCD which pays a 3% div & stock price appreciation or loss. How many people eat at McDonald's every day? Who you gonna trust?


And, is there a personal story out there about one's money lost with Financial Management Resources, and how it has effected you financially, and what it has done to your life?

[trfour]

Bankruptcy trustee asks for 3 months to sort things out...

http://citizen.com/apps/pbcs.dll/art...918/-1/CITIZEN

[fatlazyless]

While the US Bankruptcy Court in Manchester freezes for three months the pending lawsuits between a number of investors and Financial Resources Mortgage of Meredith, it looks like we'll get to see a face-off out on center ice between the NH Bureau of Securities and the NH Banking Department.
........

"I have reason to believe that the Bank Department failed to fulfill its regulatory duties and that is why we are asking for the records as well as to confirm that this is not a state securities matter."

Mark Connolly, director of the N.H. Bureau of Securities Regulation
.......

"This is a securities matter."

Peter Hildreth, N.H. Bank Commissioner
.......

www.laconiadailysun.com, Dec 18, starting on the front page, article by Michael Kitch

.......

"When the firms closed officials found what several have called a Ponzi scheme costing more than 500 investors as much as $100-million."

[no-engine]

For years, I have known people to say that cell phone towers and cell phone next to one's ear will cause many issues to us all!

[Sue Doe-Nym]

Amazing now that the "you know what" has hit the fan, how fast every regulatory body around claims that the FRM mess was someone else's responsibility. From what I've read, it appears that they were all caught with their pants down.

[angela4design]

I think maybe Pastor Farah will be changing his Prius' vanity license plates soon, so no one recognizes the car by the "FARAH" plates! (I think I would!)

[Meredith Resident]

Is there any update on the two state regulator agencies and the "blame game" they have been playing?

[fatlazyless]

Yesterdays Friday or Thursday LaDaSun had an article about how the landlord who owns the land containing the Weirs water slide w/ the big volcanoe got into a huge mess of financial trouble directly related to the Financial Resources Mortgage meltdown-Ponzi brohaha, and the waterslide directly across Rt 3 from the Lobster Pound is scheduled to be aucioned at a foreclosure sale. Do not have access to the LaDaSun article.

It sounded like some poor guy from Laconia lost his shirt, trousers, and coat in the FRM meltdown.

Wonder what will happen? For example, will the nearby Dunkin Donuts step up to the plate and purchase the land to build a new Dunkin Donuts in its quest to cover each & every town in the area with a Dunkin Donuts. Must have something to do with the English wanting to get even with the American colonies for revolting back in 1776. Dunkin Donuts is now an English owned company.

[Winni-Retired]

I guess I missed the sale of Dunkin Donuts by our Winni neighbor .. Mr Romney .

At one point a few years back, I heard that Bain Capital was the owner of Dunkin Donuts .

Guess they liked the meat / pizza business better and stayed with Burger King and Dominoes Pizza.

[Lucky1]

Originally Posted by SAMIAM

Why are you guys being so hard on Bernie and Scott???.....Nothing wrong with a little Ponzi. Your government has been doing it for years, legally. There is not a dime in the SS account. It's all been transferred to the general account and spent. All social security payments are made by "new investors" just like Bernie Madoff.....only he's in jail.

I guess I do not believe that the United States Government is doing a Ponzi Scheme. Didn't the current citizens on SS have to pay into social security? Not sure.

Are you saying that you do not think the Government will be there to pay for new people as they retire? The Government seems to be wanting to pay more benefits (Health Care etc) not less? I agree that it is hard to know where the money is going to come from though.

Of course we do not have a choice in paying into the Government like one has in a Ponzi Scheme. The Government takes it out of our pay in tax.

This is a bit off topic anyway. Hope anyone who is dishonest has a punishment to pay. Don't know the people who are being discussed or the circumstances so cannot make an intelligent comment on guilt.

[fatlazyless]

If you've any interest in this FRM story that's been going on since Nov 9, and covered with a lot of newspaper reports then you definately want to read the lengthy article on an inside page of yesterday's Jan 15 www.LaconiaDailySun.com

The reporter interviews the NH banking commissioner and it's a great newspaper article and definately worth a read. Probably, the reader will come away thinking that FRM, just like Bernie Madoff, was able to get away with it due to a lack of regulation by the agency assigned to be regulat'n. It's a key piece in this Ponzi puzzle!

[trfour]

Documents show pastor's role in mortgage deals.

http://citizen.com/apps/pbcs.dll/art...896/-1/CITIZEN

[fatlazyless]

Today's February 6 www.laconiadailysun.com has a follow-up article with a Meredith resident who has some strong opinions on the New Hampshire Banking Commission for not doing their job of regulating.

...some excerpted quotes...


Likening their conduct to Tony Soprano who did business from phone booths, he asked "This is the way the state's banking office operates? Like the Mafia?"

"...it's obvious that the Banking Department dropped the ball - complete and utter incompetence. They did more to protect the criminal than the citizen."

[Just Sold]

In court Tuesday, lawyers revealed new documents that they claim are proof that the Rev. Robert Farah was involved with his son Scott's now defunct mortgage company.
http://www.wmur.com/money/22514444/detail.html

[trfour]

Judge keeps curb on pastor's assets...

http://citizen.com/apps/pbcs.dll/art...849/-1/CITIZEN

[fatlazyless]

Lots of newpaper stories in NH papers now that the legislature seems to be taking a strong interest in this FRM 'Ponzi' saga. If any of the 424 NH legislators happen to read this, then kindly go take a look at the January 15 www.laconiadailysun.com interview conducted with the NH Banking Commissioner. It might be a little bit of an eye-opener.

One other item; everyone has seen photos of Bernie Madoff, but no one has seen a photo of the FRM principle. Why is that? Because, not a single photo has been published in any newspaper. So, why the photo mystery on this $80-mil+, alleged 'Ponzi' scheme?

[fatlazyless]

New newspaper article on the FRM guy who in today's Feb 20 www.concordmonitor.com bankruptcy proceedings report claims that he is down to just 68-dollars in cash, 538-dollars in his checking account, $145,000 in credit card debt, and $82,000 in unpaid car loans for a VW, Audi & BMW.

Considering all the money that so many people have lost in home mortgages, homes, and bank stocks, he has not picked a sympathetic time in U.S. history to get caught.

[fatlazyless]

Anyone see last week's WMUR news short where the WMUR cameraman couldn't get a photo of the FRM principal. He took off, running down the street, away from the camera, after leaving the federal bankruptcy hearing in Manchester.

Anyone have a clue why he doesn't want any public photos? Maybe he's planning on running away anonymously, and living incognito down in Rye by the ocean, and just blending in.

[angela4design]

... with Whitey Bulger

[fatlazyless]

If you missed yesterday's April 11, Sunday, www.cmonitor.com story on the victims of Financial Resources Mortgage Co, suggest you read it. There's been so many stories in the papers, but this one was all about the victims, and did brief interviews with a number of locals. It seems like many of the locals are regular types who lost their savings. Truly a big loss, and the NH Banking Commission apparently was aware on FRM starting back in the year 2000.

[Pineedles]

The Citizen details the indictment here.

http://www.citizen.com/apps/pbcs.dll...957/-1/CITIZEN

[fatlazyless]

Scott Farah is scheduled to get sentenced today in a federal courtroom down in Manchester, NH. It will be interesting to see what happens with that. Will his sentence be the talked about 9 1/2 years as negotiated, or will the judge crank down with a longer sentence or what? Mr Farah is about 48 years old.

[Steveo]

Originally Posted by fatlazyless

Scott Farah is scheduled to get sentenced today in a federal courtroom down in Manchester, NH. It will be interesting to see what happens with that. Will his sentence be the talked about 9 1/2 years as negotiated, or will the judge crank down with a longer sentence or what? Mr Farah is about 48 years old.

15 years, Judge made it longer because he felt too many people hurt

[ronc4424]

http://www.wmur.com/news/26539653/detail.html

[tis]

Does anyone know Dodge's history? Did he used to be an accountant or financial advisor or something like that? And if so where was his office located?

[fatlazyless]

Believe Dodge is an attorney experienced with writing up complex mortgage loans, and his office used to be up the hill, just above the FRM building that is attached to the large cell phone/radio antenna on the hill top, Sunset Hill, up above the Meredith McDonald's and Energysaver's. The big hilltop antenna is easily seen from Route 104 or from Meredith Bay.

And you know what they like to say in the mortgage business......"Here's some great news for you today.......YOU ARE APPROVED!"

[Pineedles]

"Dodge said his greatest worry is that his wife will not have enough money to live on."

And some couples will not even be able to afford 1 can of spaghetti-O's per day; And he asks for this, what arrogance!