Contact Us

Fraud Victims Get Relief From Special Fund [AUDIO]

Fraud
photo courtesy of photodisc

Commissioner of Securities and Insurance Monica  Lindeen  announced this week the first beneficiary of the state’s new securities restitution fund, a pool of money set up to help victims of investment fraud. Reece Cobeen of Plains, Mont., a victim of a hurricane relief investment scam, will receive $13,750.

Montana’s 2011 Legislature created the Securities Restitution Assistance Fund to aid victims who will never recover their stolen money. The fund, which is made of court-ordered contributions from white collar criminals, is the second of its kind in the nation. Already, Lindeen’s office has collected more than $250,000 for the fund from brokers and firms who have violated state securities law.

 

Cobeen had invested $55,000 in phony promissory notes advertised and sold by Terry Parks in 2007. Parks told Cobeen his investment would help rebuild homes in Louisiana that were destroyed by Hurricane Katrina. Parks promised Cobeen a 24 percent annual return on the investment. Parks is currently serving time in at the Montana State Prison in Deer Lodge.

Victims of securities fraud who have no opportunity to receive restitution, like Cobeen, can apply to receive 25 percent of the money they lost or $25,000, whichever is lesser, from the Securities Restitution Assistance Fund. Additional restrictions on the maximum payment from the fund apply when the fund’s balance falls below $1 million.

 

The Commissioner’s office expects many more applications for assistance in the coming weeks from victims of the Cornerstone Financial Ponzi scheme in Kalispell. That scam robbed Montana investors of more than $14 million.

For more information about the securities restitution assistance fund, call 800-332-6148 or visit the Commissioner’s website at csi.mt.gov/securities/restitution.asp.

State Insurance Commissioner Monica Lindeen

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

More From News Talk KGVO

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://newstalkkgvo.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on News Talk KGVO Radio quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on News Talk KGVO Radio quickly by logging in with your Facebook account. It's just as secure, and no password to remember!