Defrauded Investors Getting Refunds After 16 Years

It's rare that victims of investment fraud ever get their money back. In most cases, the perp has spent the money, or hidden it very well.

But in New Jersey, the state Bureau of Securities has completed a 16-year odyssey in which they painstakingly pursued leads and uncovered assets. As a result, 72 investors who were defrauded by Robert Brennan will get checks totaling $1.54 million, according to New Jersey Attorney General Paula Dow.

"This is the day that many investors have been waiting for," Dow said. "The dogged determination of our Bureau of Securities investigators and Deputy Attorneys General assigned to the Brennan case has brought us to this point."

1995 lawsuit

It all started in the summer of 1995, when the state filed suit against Brennan and L.C. Wegard, an investment firm that Brennan controlled, and other defendants, alleging violations of the New Jersey Securities Law and the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) Act.

Brennan responded by filing a voluntary Chapter 11 bankruptcy petition. The game was on. In June, 1999, the Bureau obtained a $45 million non-dischargeable judgment against Brennan and L.C. Wegard. But the real battle had just begun.

What assets?

Brennan claimed he didn't have any assets. Unwilling to take his word for it, the state began a protracted effort to find them - at least enough to satisfy the judgment.

Ultimately, Bureau investigators tracked down assets that the state says Brennan had attempted to hide. A pension fund that Brennan had set up for himself was among the assets seized.

"Getting restitution for those who have been defrauded of their hard-earned money is a primary focus for us," said Thomas R. Calcagni, Acting Director of the State Division of Consumer Affairs. "Investment scams remain out there and the Bureau of Securities is a resource that investors can turn to when performing their due diligence."

How to get restitution

L.C. Wegard customers during the period October 1, 1991 to September 30, 1994 may be qualified to file a claim if they purchased any of the following securities during this time period:

• AGP&Co.
• Chefs International, Inc.
• Consolidated Technology Group, Ltd. (f/k/a Sequential Information Systems, Inc.)
• Diamond Entertainment Corp.
• Futurebiotics, Inc.
• Gates / FA Distributing, Inc.
• Gentner Communications Corp.
• Great American Recreation, Inc.
• Immunotherapeutics Corp.
• Lafayette Industries, Inc.
• Linkon Corp.
• Metalclad Corp.
• Nacoma Consolidated Industries, Inc.
• Non-Invasive Monitoring Systems, Inc
• Officeland, Inc.
• PDK Labs, Inc.
• Primedex Health Systems, Inc.
• Process Equipment, Inc.
• Sanyo Industries, Inc.
• Site Holdings, Inc. (f/k/a Site-Based Media, Inc.)
• US Transportation Systems, Inc.

If the above criteria are met, investors can obtain a "Proof of Claim" online at or by writing to: Donald F. Conway, Receiver, P.O. Box 7648, Princeton, N.J. 08543-7648.

The deadline for submitting a claim has been extended by the State Superior Court to May 31, 2011.