Glenn A.
Fine. OIG / USDOJWelcome to: www.: GONZALESAG..com
Glenn A.
Fine. OIG / USDOJ
Alberto Gonzales
U.S. Attorney General / Minion to corruption
Subj:
Attention: Glenn A. Fine, add Paul G. Rogers to complaint
Date: 08/04/2005
To:
Glenn.A.Fine@usdoj.gov
CC:
Barbara.B.Salazar@usdoj.gov,
pefeagles@hhlaw.com,
hiflack@hhlaw.com,
Roger.M.Williams@usdoj.gov,
DDopp@oag.state.ny.us,
mike.geeslin@tdi.state.tx.us,
jdilg@velaw.com,
greg.abbott@oag.state.tx.us,
Glenn A.
Fine
August 4, 2005
Inspector General USDOJ
950 Pennsylvania Avenue, N.W., Suite 4706
Washington, DC 20530-0001
Dear Mr. Fine:
On June 6, 2005, I filed a complaint with you concerning Attorney General
Alberto Gonzales' refusal to act on a complaint I filed with him on March 7,
2005, (copy enclosed). Your Mr. Roger M. Williams responded on June 23, 2005,
that the matter was more appropriate for review by another agency and referred
the matter to the Criminal Division Fraud Section. I have heard nothing to date
from anyone. This appears to be the same path that the Dallas office of the FBI
took in 1997 when they were given documentation and court records to support the
claims. They referred the matter to the New York office and supplied a bogus
phone number for my future contact. The letter dated April 22, 1997, is signed
by Peter A. Galbraith and James F. Adams. On 2/19/1998 the New York office
stated they had no records and knew nothing of the complaint.
I ask that you reconsider my original request as Mr. Gonzales has since 1995
known of the fraudulent financial statements and fraud on the public by MONY. As
General Counsel to Governor George W. Bush from 1995 to 1998 his staff worked
feverishly to cover-up MONY's fraudulent activities and the involvement of his
own personal friends that were involved in the looting of the company. I have
the letters they wrote to me and a tape of the conversations. What I don't have
is an accurate, concise and properly opined financial statement for my insurance
company for any time since Mr. Gonzales graduated from law school.
I would also like to further add to the complaint the name of Paul Grant Rogers
of the Hogan & Hartson law firm who was on MONY's Board of Trustees with Angie
Frank Smith of the Vinson & Elkins law firm from the early 80s. Mr. Rogers was a
24 year Congressman from Florida with close ties to U.S. Senator Bill Nelson.
Prior to winning the senate seat that he now holds Senator Nelson was the
Commissioner of Insurance in Florida and a former Congressman 79 to 91. During
1995 he investigated MONY and found the massive fraud. You can read the letter
concerning the $1.3 billion fraud on the
MONYBUSH.com site. Mr. Nelson very quietly closed the case and fined the
company a whopping two thousand dollars and refused to answer freedom of
information requests concerning the matter. Quite possibly the same type
influence was used with New York AG Eliot
Spitzer who also investigated MONY found massive fraud and eased out the
door without finishing the job.
I have notice that the New York, Arkansas, Indiana and Texas Insurance
Commissioners, who were all involved in the cabal, resigned their positions
earlier this year.
Your prompt response to my request is requested and will be appreciated. Please
do not hesitate to contact me at 817 545-8961 for any information or
documentation.
Respectfully,
R. Dale Abshire
3308 Pin Oak Lane
Bedford, Tx 76021
|
Alberto
Gonzales
March 7, 2005
Attorney General
U.S. Department of Justice
950 Pennsylvania Avenue
NW Washington, DC 20530-0001
Dear Mr. Gonzales:
I'm sure you recall Angie Frank Smith Jr. who retired as the Managing Partner of
Vinson & Elkins about the time you joined the firm in 1982. That was when he
joined the board of directors at the The Mutual Life Insurance Company of New
York (commonly referred to as MONY) where I was employed in a sales and
management position.
You may also recall that starting in 1995 I reported, as mandated by Article
1.10d of the Texas Insurance Code, suspected fraud in the business of insurance
and asked for help for policyholders to both the Texas Department of Insurance
and to Governor George W. Bush concerning the fraudulent financial statements of
MONY, the looting of the company and the PONZI insurance contracts that were
used to defraud the public. Your office (Pete Wassdorf, Donna Garcia Davidson
and James Hines) responded on behalf of Governor Bush that they could not help
and according to Mr. Wassdorf it would be inappropriate for the Governor of
Texas to contact the governor of New York and interfere with the operation of a
New York domiciled company. I was shocked by his comments in light of theTravis
County Grand Jury Letter (page
2) to Governor-elect George W. Bush imploring him to clean-up the fraud and
corruption within the Texas Department of Insurance.
While employed by MONY as a sales agent and Manager of the Ft. Worth Agency I
not only sold millions of dollars in business but recruited and trained many
other agents to sell MONY products to the public. Beginning in 1983 MONY
introduced a series of products designed for retirement and high increasing
death benefits based upon dividends that the company claimed were conservatively
illustrated at a 7 to 7.5% return on the company's investments. The products
were used in many different ways to illustrate educational savings plans,
guaranteed retirement funding, pension maximization and elimination of the
survivorship benefit for members of the military as well as replacement of IRA
accounts. These policies were widely marketed as sound "investment grade" life
insurance contracts accompanied by an array of company furnished sales
literature and materials.
Simply put, the products were a PONZI and the literature used to defraud the
public was false. The dividends had been illustrated based on a 11 to 12% return
on assets with inflated values as well as nonexistent assets.
You may also recall that during the Florida election trials the "Bush Team"
named one of America's foremost accountants, Mr. R. Larry Johnson CPA, to
testify as an expert witness. Coincidentally, Mr. Johnson had previously been
called upon in 1995 to render an opinion on MONY's financial statements and
review the N.A.I.C. examinations of the company. His sworn affidavit is posted
@http://monybush.com/LarryJohnson.html
for your review. It should be noted that he did not know that Coopers & Lybrand
had been violating the auditor independence rules by selling financial
instruments to the company on the side while issuing false opinion letters
certifying MONY's financial statements that contained 100s of millions of
dollars in fraudulent transactions nor was he aware of the Florida Department of
Insurance investigation by current U.S. Senator Bill Nelson that revealed more
than a billion dollar surplus shortage on the statements filed in Florida. The
Florida letter to MONY's Chairman, Michael I. Roth is posted @http://pwcsucks.com/_wsn/page3.html
. Mr. Roth is a former Coopers and Lybrand partner and is currently Chairman of
the Interpublic Group of Companies Inc.
During the same time that I was seeking help from Texas, I contacted Walter
Ricciardi in the general counsel's office at Coopers & Lybrand and provided him
with documentation including the Johnson affidavit and asked him to help resolve
the matter. He informed me that he had checked it out and it was "no problem"
selling bonds and financial instruments to MONY while acting as the independent
accountant. Coopers & Lybrand was then merged with Pricewaterhouse.
PricewaterhouseCoopers (PWC) then preceded to take MONY Public with the false
financial statements and false acturial opinions in November of 1998 with the
help of Goldman Sachs and DEWEY BALLANTINE LLP a New York law firm whose
managing partner became a MONY board member when Claude M. Ballard the Goldman
Sachs rep was found guilty of fraud by the Tax Courts.
Today, Walter Ricciardi is the SEC Boston District Administrator responsible for
prosecuting individuals who commit crimes less than his own.
During 1997 I provided Mr. Joseph Dimaria of the Securities and Exchange
Commission with documentation of the false financial statements and later got
his admission that MONY had in fact filed false financial statements with the
SEC. He then said that he could no longer talk to me and hung up. In 1998 I
asked Arthur Levitt, Chairman of the Securities and Exchange Commission, to
help policyholders get an accurate financial statement for the company prior to
their being asked to vote on demutualization. I received a response from the
Northeastern District Administrator, Carmen J. Lawrence, who informed me that
MONY did not file financial statements with the SEC and that they could not help
me. She was lying! MONY had filed financial statements with the SEC since the
early 70s. The SEC then allowed MONY to go public with an Initial Public
Offering in excess of a billion dollars. Shortly after the IPO I gave the SEC
letters to Michael Schroeder at the WSJ. Soon afterwards I received a call from
SEC attorney Dorothy Heyl wanting to help me resolve the matter and asked me to
work with her on the investigation. The SEC then refused to talk to the media
because of the confidentiality of their investigation. The WSJ story is
available on thewww.MONYINTERNATIONAL.com
site along with the SEC letters. Three years later Mr. Frank Henderson at the
SEC admitted that there had never been any investigation. Ms. Lawrence resigned
and became Harvey Pitt's co-partner at Fried Frank Harris Schriver and Jacobson
and assumed his practice when he became chairman of the SEC.
Prior to the demutualization of MONY I contacted a substantial number of elected
officials and asked for their help in obtaining "an accurate, concise and
properly opined financial statements, like the law says that I am entitled too,
for MONY". I also contacted the Dallas office of the FBI and provided then with
the sworn affidavit of MONY employee Alexis Daniels detailing the use of company
funds by officers for home theaters and stereo systems and falsified expense
vouchers to steal from the company. They sent me a letter saying they had
transferred the case to their New York office.
After Senator Phil Gramm's office proclaimed him to be "powerless" to cause
anyone to produce an accurate financial statement for MONY I contacted Senator
Kay Bailey Hutchison and asked for her help with the financial statements and in
moving the FBI along. I provided the Senator's office with a copy of the
N.A.I.C. audit of the company and the letter from the FBI. Her office said they
could help. Five months later the best they could do was provided me with
another copy of the same N.A.I.C examination of the company that contained over
$600,000,000 in illegal transactions and claimed the FBI could find no record
of the letter they sent me or any investigation. Senator Hutchison was unable to
explain the $687,000 MONY paid to her husband's law firm (Vinson & Elkins) that
MONY failed to disclose on the financial statements as required by law.
Senators Kay Bailey Hutchison and Fred Thompson both refused help with a Freedom
of Information request for the orphan child of a dead fireman that held the Navy
Cross. The request pertained to falsified expense vouchers being used to get
money for illegal campaign contributions that I learned about while working as a
case consultant on a suit by another MONY manager. I witnessed his admission to
an attorney that he had done it with the blessing of two officers of the
company. Vinson & Elkins was defending many of the lawsuits brought by MONY
agency managers and employees. I obtained a number of sworn affidavits from
court records alleging misconduct by 3 of V&E's attorneys. In Wassell v MONY
V&E attorney
Douglas Hamel named a dead man (John McCole) as a witness and V&E attorney
Shadow Sloan then billed the policyholders of the company for a conference
call with the corpse! You may recall that Webster Hubbell went to prison for
fraudulent billings. The Texas Department of Insurance saw nothing wrong with
the fraudulent billings. Jose Montemayor, the current Texas Commissioner of
Insurance, previously told me he saw nothing wrong with MONY's management using
falsified expense vouchers to get money for gambling. His response is typical of
the activities cited by the previously mentioned Travis County Grand Jury letter
that your own office claimed the Governor of Texas did not bother to save.
New York and Connecticut Attorneys General Spitzer and Blumenthal both
investigated MONY's sale of the fraudulent PONZI contracts and extracted
millions of dollars for the benefit of their respective states and then closed
their cases without considering the 100s of thousands of us that had also been
victims of the same fraud. As a matter of fact, those of us with the same
contracts actually paid the money Spitzer / Blumenthal collected for their
constituents. You can review the information and news articles on thewww.SPITZERAG.com
and
http://pwcsucks.com/_wsn/page10.html web sites.
This fraud which started with Angie Frank Smith jr. on MONY's board and James
P. Corcoran (MONY's former assistant general counsel) as the New York
Superintendent of Insurance from 1983 to 1991, could not have happened without
Cooper & Lybrand / PricewaterhouseCoopers and a regulatory system willing to
support corruption.
Example: MONY's Board installed a "Phantom Stock Plan" for selected
officers of the company that was based on profits over a rolling three year time
frame. The plan had a minimum profit requirement of $350m for there to be any
payment. The fraudulent statements were then used to steal 10s of millions of
dollars. There were never any profits, the company was insolvent. The General
Counsel of the New York Department of Insurance ( Paul F. Altruda) in responding
to a FOIL request first denied the department had any knowledge of the Phantom
Stock Plan..... then when it was proven that not only did they know of it but
had reviewed it, they granted Trade Secret status to the plan to hide their own
involvement. The New York Department of Insurance also engineered a false and
fraudulent exam of the company prior to the demutualization of the company.
Details are included in theMcNenny
Fraud Report.
During 2004 PricewaterhouseCoopers stood on both side of the hostile takeover of
MONY by AXA , a French company, for less that 75% of the stated book value of
the company instead of the normal 2 to 2.5 times that is currently being argued
in courts. Prior to the takeover I provided AXA with the information on MONY and
received no response.
I think I heard you say that as the U.S. Attorney General you would be working
for the public and in the interest of citizens. Can you help me resolve this
situation? I own insurance policies purchased for retirement like those that Mr.
Spitzer and Blumenthal claimed were fraudulent and forced MONY to make good on.
Can you get AXA / MONY to make good on my policies? If not, can you help me
obtain an accurate, concise and properly opined financial statement for MONY as
there hasn't been one since you graduated from law school in 1982.
Your help will be greatly appreciated and will allow me to move on to other less
time consuming activities in my retirement. I stand ready to answer any
questions or provide documentation at your request. I can be reached at 817
545-8961 or e-mail RAbshire@AOL.com.
Verification of your receipt of this letter is requested.
Please consider this request as a report of suspected fraud as mandated by 1.10d
of the Texas insurance code.
Respectfully,
R. Dale Abshire
3308 Pin Oak Lane
Bedford, TX 76021
Grand Jury Letter to Gov. Bush
299th District Court Grand Jury
State of Texas
County of Travis
December 21, 1994
The Honorable George W. Bush
Governor-Elect of Texas
Austin, Texas 78768
Dear Governor-Elect Bush:
We, the Grand Jury for the July 1994 Term of the 299th District Court, Travis
County, are writing to share with you observations and conclusions reached
during a recent inquiry into the Texas Department of Insurance and its handling
of criminal insurance fraud matters.
Following many hours of witness testimony ranging from field examiners to upper
level management, and the review of numerous department records, we have
determined that there exists a significant reluctance on the part of Department
personnel to investigate and report fraudulent occurrences in the insurance
industry. Such a reluctance constitutes action contrary to the mandates of
Article 1.10D of the Texas Insurance Code, which requires the
reporting of all suspected fraud to authorized governmental entities, including
law enforcement.
The April 1990 Special Grand Jury, 147th District Court, Travis County, Texas
issued a written report after completing their investigation of allegations of
fraud and other criminal misconduct within the Texas insurance industry.
Page fourteen of their written report states "In closing, Your
Honor, we are obliged to offer our negative observations of the State Board of
Insurance. During our investigation we found closed minds, lack of cooperation,
a tendency to overlook and wink at blatant misapplication of funds, filing of
false financial statements, and apparent undue influence by outside lobbyists
and lawyers,"... "We feel that the State Board of Insurance has become stagnant,
content to sit back and allow the insurance companies to regulate themselves
without proper supervision or control.
Generally, the chain of command at the State Board is such that fraud and theft
is sheltered rather than exposed due to the layers of inert management. We found
that the management hesitates to make decisions and allows companies to be
plundered of all assets while they waste time and money trying to find band aid
solutions. This must cease. All suspected violators should be investigated and
prosecuted without delay." (emphasis added)
It is our unanimous conclusion that little progress has been made by the Texas
Department of Insurance since 1990. We find continuing failure to investigate
and report fraud at all levels of regulatory administration, lax regulatory
oversight, undue influence from the industry, and political pressure on the
regulators. Of great concern to us is the lack of an independent board or other
means of ensuring public accountability.
As you determine priorities for your new administration, we implore you to make
the Texas Department of Insurance, and the Texas insurance industry a high
priority. We have reason to believe that the following statement of the April
1990 Special Grand Jury remains true today:
"We hereby warn the legislature and citizens of our State that the insurance
industry is plagued by egregious conduct amounting to a breach of trust with
policyholders and by bold embezzlement."
The Travis County District Attorney's Insurance Fraud Unit has been diligent in
prosecuting reported insurance fraud and we applaud their efforts. We urge you
to consider the problem of insurance fraud as deserving of attention and action,
and to convey the public's concerns regarding this matter to the newly appointed
Commissioner of Insurance for the State of Texas.
Respectfully,
Penny Dear, Foreman Socorro Leos
O. Kay Anderson Thomas G. Martin
Texana Conn Errol Mortland
Kay D. Arezzo Irene Pena-Miller
Hazel Hatch Nelson Poldrack
Jack Kirfman Lorenzo Sweeney
cc: The Honorable Ann Richards
The Honorable Bob Bullock
The Honorable Pete Laney
The Honorable Judge Jon Wisser
Excerpts from "HONOR THE WARRIOR" by William L. Myers:
......"On the first approach Corporal Abshire and I poured out the lead at Viet
Cong positions. The first man I saw on the ground was dead, shot thru the head.
The fire was so heavy that, after one man jumped aboard, we lifted out and
headed for G-4. This man drew me a makeshift map on the stretcher of where the
Viet Cong were located. We returned to the zone. On this touch down we took hits
in the bird. One hit the armor and I heard the Captain say he was hit. A round
also came within inches of Corporal Abshire. This load we picked up two more
wounded, Corporal Abshire and myself getting out to retrieve them. The fire from
the enemy was intense. We made two more pickups under heavy fire. Corporal
Abshire fired the M-79, and knocked out a machine gun while going in. I shot at
VCs and can only hope I got them. I really never knew nor do I care to; however,
they weren't firing back after I started shooting. Corporal Abshire retrieved
one marine who was hit again while Corporal Abshire was running back with him on
his shoulders about 20 yards from the helo. I already had one head injury aboard
from a trench by a small pond as well as one other guy. We took these to G-4.
The next trip we took on more men which cleared the wounded in this particular
zone. We made two more pickups for wounded after changing aircraft because of
low fuel and battle damage. Corporal Abshire was really hustling to be"
"While we were in the med evac zone Bob Abshire was firing an M-79 grenade
launcher when a bullet hit it and split the stock."
"Bob Abshire left the Marine Corps after about 10 years of service. By that
time, he was a SSgt., and I think he had been awarded a Distinguished Flying
Cross on his third tour in Viet Nam. On his first tour, he was a recon Marine.
On the second tour, he was in VMO-2. On the third tour he was in an HML
squadron. After he left the Marine Corps, Bob went to work with the fire
department in or near Ft. Worth or Arlington, Texas. Shortly after he joined the
fire department, he received an award for reviving a little girl who had almost
drowned in a swimming pool. Bob usually called me on the anniversary of that med
evac action. One Friday night he called me from the fire station and we talked
for a long time. On Sunday morning his wife called me and told me that Bob had
gotten off work early Saturday morning. While driving home he stopped to help a
stranded motorist. A drunk driver came over the top of a nearby hill, headed
straight for them. Bob pushed the other guy out of the way and was struck and
killed by the drunk driver. The guy was always a hero. Bob left a wife and
little girl."
Bobby W. Abshire was awarded the Navy Cross, our country's second highest
medal for meritorious combat service! His child was denied help with a "FREEDOM
OF INFORMATION REQUEST" by members of the US Senate and was cheated out of 100s
of thousands of dollars. Please take the time to review the information at
www.MONYBUSH.com and
www.PWCSUCKS.com to see just how corrupt America has become.
Senator Bill Nelson
716 HART SENATE OFFICE
BUILDING
WASHINGTON DC 20510 October 5, 2005
Sent via e-mail to: Barton_Vaughan@billnelson.senate.gov
Dear Senator Nelson:
I am preparing to publish "The MONY Story" and am including information
concerning your involvement in sheltering wrongdoers during your tenure as head
of the Florida Department of Insurance. In a since of fair play I want to give
you an opportunity to correct any of the information prior to publication. I am
not and have never been politically motivated in my efforts to correct the
wrongs that were done to more than a million Americans including a large number
of military personnel. Please do not hesitate to contact me ASAP with any and
all corrections or explanations that you deem necessary to tell the full story.
During 1995 you investigated The Mutual Life Insurance Company of New York,
commonly and hereafter referred to as MONY, and issued an order to show cause
for the "Suspension of Certification of Authority" on July 7, 1995 (case no.:
10079-94-C-RAP) detailing more than a billion dollars in illegal transactions on
MONY's 1993 financial statements filed in Florida.
Your investigation of MONY came during the same time period that you were
investigating MET Life's sale of life insurance policies as retirement plans to
nurses and other citizens of your state. News reports quoted you as threatening
to fine MET as much as ONE BILLION dollars for their actions in falsely
illustrating dividends on those policies. The policies were the same as the ones
MONY was also selling in Florida with the exception that MONY was illustrating
double digit returns on nonexistent assets. You took no action against MONY and
settled with MET for $25,000,000. Members of your staff told me they were
shocked by the paltry amount of the fine and could not understand why you
settled for such a small number.
Even more shocking was the $2,000 (TWO THOUSAND Dollars) fine that you levied
against MONY for the massive fraud uncovered in the Florida investigation and
blind eye to MONY's GUARANTEED RETIREMENT PLAN featuring the MONYCONOMIZER
policy. That is the same contract that the New York and Connecticut Attorney
Generals investigated in 1999 and found to be fraudulent. That information is
available at www.SpitzerAG.com with additional info at www.GonzalesAG.com. It
appears that Mr. Spitzer also pulled up due to the Mario Cuomo / James P.
Corcoran connection that was responsible for the initiation of the fraud in
1983.
The enclosed copies of communications that you ignored and refused to answer
were reviewed by members of your current staff shortly after I featured you on
my www.PWCSUCKS.com web site. There was no request for corrections. I was
confused for a long time as to why you refused to answer the Freedom of
Information requests and to cover-up the massive fraud by MONY until I recently
discover your long relationship with Mr. Paul Grant Rogers who was a MONY Board
Member. I have now opined that you knowingly violated your oath of office and
entered into a criminal conspiracy to cover-up and conceal the criminal acts of
MONY and PricewaterhouseCoopers along with MONY's officers and board members.
Shortly before your settlement with MET on the above mentioned case I had the
opportunity to share the information on MONY with an attorney from MET Life and
was wondering if you could share with me the names of any MET representative
that might have mentioned MONY to you during the settlement talks?
Please do not hesitate to contact me at 817 545 8961 or e-mail RAbshire@aol.com
for additional information or confirmation. If I do not hear from you I will
assume that you are in agreement with the above statements and that you have no
corrections.
Respectfully,
R. Dale Abshire
3308 Pin Oak Lane
Bedford, TX 76021
Subj: Arkansas Dept.of Ins. vs David Hale
Date: 04/25/98
To: cabaff@doi.state.fl.us
CC: walter.ricciardi@us.coopers.com, mike.pickens@mail.state.ar.us, tmrozek@usdoj.gov
Mr. Bill Nelson
Commissioner of Insurance
State of Florida
Dear Mr. Nelson:
My offer to provide Mr. Hale's attorney, David O. Bowden, with copies of
documents that I had provided to former Arkansas Insurance Commissioner Lee
Douglas seems to have hit a nerve in Arkansas.
As you are no doubt aware, Mr. Hale has been charged with lying about the
financial condition of his insurance company and was scheduled for trial this
week. It is my understanding that the charges relate to the improper valuation
of certain assets and the amount of money involved does not exceed $150,000. The
events giving rise to the charges are alleged to have taken place in the early
90's leading to the charges in mid 1996. Mr. Hale's attorney has claimed that
the charges are politically motivated and designed to discredit Mr. Hale's
testimony in the Starr investigation and that the Arkansas Department of
Insurance has treated Mr. Hale differently than others similarly situated with
regard to his alleged violations of Arkansas Law.
As you are aware, I have been in the insurance business for almost 27 years in
Texas with the first 19+ with The Mutual Life Insurance Company of New York,
commonly referred to as MONY. After my departure in Jan. 1991 I became aware
of information about the company and officers that caused me concern for the
safety of my pension and "investment grade" life insurance policies. From court
records and documents on file in the various state departments of insurance
along with interviews with present and past employees I became more concerned.
During late 1994 I obtained a copy of the 1992 New York Department of Insurance
"Audit". It contained $100s of millions of dollars in illegal transactions. As
required by Article 1.10D of the Texas Insurance Code, I reported the "suspected
fraud" to the Texas Department of Insurance. I then learned of the Travis County
Grand Jury investigations and letter to Gov. George W. Bush concerning the
corruption in the Texas Department of Insurance. I was then called to Austin for
a meeting with the head of the Fraud Unit who said they were not interested in
investigating insurance executives who only steal $500 per month and they were
not interested in investigating a $55,000,000 false entry on MONY's financial
statements. The Texas Department of Insurance also told me to rely on the
"unqualified opinion" letters issued by Coopers & Lybrand L.L.P. I was also
informed that submitting falsified expense vouchers for "gambling money" was OK
as long as a contest was involved.
I also made known my concerns for the integrity of the values being placed on
real estate and even verified with the Dallas County Appraisal District that
MONY had submitted an appraisal showing the value of the Turtle Creek property
as $2,707,000 which was less than the $18,080,000 that is shown on the annual
filings. The Texas Department of Insurance has been insistent that the 1994
financial statement filed by MONY is correct and taken absolutely no action to
protect the citizens of Texas.
As you are aware, I made a simple Freedom of Information request for "an
accurate, concise and complete financial statement (as required by law )" to a
substantial number of the State Insurance Regulators. I also obtained a number
of sworn affidavits and depositions from court records that leave little doubt
as to why the New York Department of Insurance made the decision in the fall of
1992 to hide the "audit" and initiate a cover-up that included granting "Trade
Secret" status to the "Secret Phantom Stock" plan, lying to the public and
refusing to answer F.O.I.L. requests in violation of New York Law.
You are also aware that I have asked a number of elected officials including
four United States Senators, several state governors, my congressman, my state
senator and my state representative for help in obtaining the accurate financial
statement and/or help in getting Freedom of Information requests answered. As
required by law, I took the documents to the FBI in Dallas and explained the
situation. A few months later I received a letter saying that the case had been
transferred to the New York office. Having already asked one of my Senators for
help in getting the statements (his office reported back that he was "POWERLESS"
). I showed the other senators office the New York audit along with the
"Daniels" affidavit and asked for help moving the FBI along. I also ask for help
in getting the accurate financial statements. After many months they were able
to provide me with a copy of the same audit I had shown them. In early 1998 the
FBI could not find any records.
On July 17, 1996, I wrote to The Honorable Senator Alphonse D'Amato regarding
the arrest warrant that had been issued for Mr. David Hale for lying to state
regulators about the financial condition of his burial insurance company. The
letter
contained 12 exhibits including the New York audit and sworn affidavits by a CPA
and former employee. I sent a copy to the Arkansas Commissioner of insurance,
Mr. Lee Douglas at the request of Mr. Ridgeway in their law department. In a
conference call on Friday, April 24, 1998, with Arkansas Commissioner Mike
Pickens and other department officials Mr. Ridgeway finally admitted that he did
remember our conversation back in 1996 but they can't seem to find any of the
documents. Mr. Pickens has given me his assurance that he will throughly
investigate and protect the public interest by the equitable enforcement of the
State's laws and regulations affecting the insurance industry.
He has afforded me the opportunity to step forward with the evidence for him to
investigate. This brings us to the Freedom of Information request that I made to
you on March 17, 1998, which covers the early 90's and in particular the 1994
financial statement that the Florida Department of Insurance audited and found
violations of Florida Law in the $1,500,000,000 range per the Consent Order
(CASE NO; 10079-94-C-DMM) filed with the 1996 statement in Florida. I believe
that the information I requested is of grave importance to achieving fair and
equitable enforcement of the law in Arkansas.
In the conference call on Friday, Mr. Pickens was quick to point out that the
Arkansas Department of Insurance didn't rely on "unqualified opinions" of
outside accountants but relied on their in-house people for the accuracy of
financial statements. As you are now aware, Coopers & Lybrand L.L.P. (currently
on two years probation / per U.S. Attorney's Office) acted as the vendor on the
sale of a financial instrument to MONY in 1994 while acting as "Independent"
auditor for MONY. The New York audit with $600,000,000 in illegal transactions
coupled with the $1,500,000,000 you found in 1994 which resulted in a total of
$44,000 in fines being paid by the company while no one was charged with a
crime. The $44,000 is less than half of the cost of the Officers Stereo and Home
Theater project described in the Alexis Daniels affidavit that I sent Mr.
Douglas. It's about half the cost of the illegal yacht cruise shown in the New
York audit that occurred in your state.
In trying to compare the equitable enforcement of the law in Arkansas to Mr.
Hale, it appears that the alleged amount of $150,000 is about 20% of the
$687,000 payment to a law firm (that as I recall had defended the Rose Law Firm)
that is not disclosed on the Schedule "J" as required. The same firm claimed to
have had a conference call at $204 an hour with a man they named as a witness in
the Wassell vs MONY case. Seeing how the man had been dead for several years
when he was named, it surely will mandate an accounting of all those millions of
dollars in billings. The $150,000 is about 1% of the $15M overstatement of the
value of the Turtle Creek property mentioned above.
While Mr. Pickens may have the greatest intentions for the future of the
Arkansas Department of Insurance and may in fact follow through with everything
he said he would, the simple fact is his predecessor and the Arkansas Department
of Ins. knew of MONY's falsified financial statements and took absolutely no
action to protect the citizens of their own state. I'm sure when Mr. Pickens
gets the documents from the Texas Department of Insurance he will pay close
attention to
the actual dividend histories and the 10's of millions of dollars that the
children in Arkansas will never see from dividends that were illustrated based
on income from assets that did not exist.
I do want to give Mr. Pickens an opportunity to distinguish himself among his
peers by meeting his and the Arkansas Department of Insurance goals established
in their Mission Statement. Your prompt attention to my Freedom of Information
request will allow me to properly submit to Mr. Pickens the evidence he has said
he will act on.
I thank you in advance for your assistance.
R. Dale Abshire
4316 Pembrooke Pkwy N.
Colleyville, Texas 76034 817 267-2020 Fax 817 267-5055
Subj: MONY
Date: 03/17/98 modified 6/30/98
To: cabaff@doi.state.fl.us
Mr. Bill Nelson PUBLIC RECORDS REQUEST
Insurance Commissioner
State of Florida
Dear Mr. Nelson,
The documents you sent pursuant to my Freedom of Information request included a
Consent Order ( Case No: 10079-94-C-DMM ) dated Feb 16, 1996 that indicates the
Florida Department of Insurance conducted an investigation of MONY's 1994
financial statements. Under Freedom of Information / Public Records request, I
request a copy of the investigation and any details regarding the loans to
officers and directors as mentioned in 4.c. of the Consent Order.
Schedule A - Part 1( page 33.15 item 271 ) of the 1996 filing continues to show
the last year of Appraisal as 1986 for this property. According to the Dallas
Appraisal District, MONY provided them with an appraisal stating the property
was only worth $2,707,000 during 1994. Can you tell me why this property
continues to be carried on the books at $18,080,000 which is well over $100 per
sq. ft.
The documents that you sent make no mention of the "Home Theater" and "stereo
systems" for the three company officers that are mentioned in the "Alexis
Daniels" affidavit that I sent with my request. As I understand it,
policyholders are now having to pay to defend a whistleblower law suit by MS.
Daniels against the company. I have reviewed the 1994 Schedule G ( page 7.7 )
filed in New York and discovered a payment of $69,898 to Mr. Steve Peloquin who
Ms. Daniels has named in her affidavit. Mr. Peloquin was an employee of
Contemporary Personnel Service and according to Ms. Daniels he received his
paychecks from Contemporary Personnel / not MONY. It is believed that the
$69,898 was a consulting fee used to pay for the components for Mr. Foti's "Home
Theater". I would like to know about this issue and assume that the Florida
Department of Insurance "jumped on" the Alexis Daniels affidavit and should have
documentation regarding this matter. Please send the entire file under Freedom
of Information / Public Records Request.
As you are aware, the 1992 Audit of MONY revealed $600,000,000 in illegal
transactions that resulted in outragous bonus's to top officers of the company
under the secret "Phantom Stock Plan". The "Audit" which was suppressed until
June 7, 1994 by the New York Department made no mention of the "Phantom Stock
Plan" or the $4,500,000 scam in the Los Angeles agency during 1991. The New York
Department of Insurance lied about any knowledge of the "Phantom Stock Plan" and
then granted "Trade Secret" status to the plan to hide what they had done.
There was no mention of the millions of dollars in compensation not shown on the
Schedule G as required by New York Law. Amazingly, there was no mention of the
"unqualified opinions" that Coopers and Lybrand LLP had issued before and after
the "bad audit" was resolved in 1994. I would assume that the Florida Department
of Insurance audit during 1995 was the result of the prior audit showing its
ugly head in the courts. Your auditors and investigators should have found the
Anthony Crane Rental L.P. transaction on page 62.1 of the 1994 Schedule D - Part
3. The transaction of $8,500,000 on 9/29/94 lists Coopers and Lybrand as the
vendor on this sale. This transaction constitutes a "Conflict of Interest" and a
violation of the Rules of Professional Conduct. Your auditors will have found
this and have made notes as well as reporting it. Under Freedom of Information /
Public Records Request, I request that you send me copies of all documents
relating to this matter.
MONY's 1996 financial statement lists $319,000,000 in series A notes from AUSA
Life. In reviewing AUSA Life's financial statements for 1996, I noticed that
AUSA had apparently written down the value of the assets that had been
transfered by $151,000,000 per MONY's indemnification agreement that is tied to
the series A notes.. It also appears the the $319,000,000 is not available for
paying claims until 2002. Will you verify the true value of the Series A notes
and let me know?
Your prompt consideration of this request will be greatly appreciated. If you
have any questions please do not hesitate to contact me at 817 267 2020, fax 817
267 5055 or e-mail RAbshire@aol.com.
Respectfully,
R. Dale Abshire
4316 Pembrooke Pkwy N.
Colleyville, Texas 76034
|
|||
