Brooke Corporation Ponzi Scheme Fallout: Lynch & Robbins Law Firm Succeeds in Dismissing Case Against Franchisee
ST. PETERSBURG, Fla., July 20, 2011 /PRNewswire/ -- 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
SOURCE Lynch & Robbins
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