The New York Lawsuit

I thought some of you might be interested in seeing some of the documents from the lawsuit filed by a group of out-of-state investors against Gov. Charlie Crist, Atty. Gen. Bill McCollum, Danielle Brooks, Jerry McHale as well as Lou Pearlman and numerous others. It was filed in the U.S. District Court for the Southern District of New York and is so long that it is broken into parts.

Lawsuit and exhibits: Part 1, Part 2, Part 3, Part 4   

State's motion to dismiss filing

The investors have responded with numerous affidavits. Here is a sample. 

Most recently, Tatonka Capital filed motion to dismiss.

That should keep you busy reading for a while!

Comments

[Les Henderson]

Small world indeed. I was talking about my work exposing scams to relatives of relatives and they brought up a case in which they had been scammed in California.

A local attorney went to bat for those that signed up, taking on several banks and insurance companies that facilitated the crime, much like what I see hear.

They would show up with ten lawyers at court appearances while he would straggle in and fumble with his sole briefcase.

They would, over time, offer peanuts to settle and he just kept at it until finally he won a great victory that included all the fake promised interest plus costs.

Only those that signed on got to laugh all the way to the bank. The other victims, not so happy. The Hispanic lawyer went on to become the DA of San Diego if memory serves.

I didn't have a pen for taking notes but it would be an interesting case to investigate if anyone can dig it up.

[Kim]

I would have to disagree with the statement that the lawsuit is useless. If anything, it will set a precedence that people are not going to sit back and take any more crap from scam artist to politicians. If anything at all, it will focus attention on how sadly lacking our government is in protecting the people in this country. More power to them! Personally, I hope they do get something out of the whole process. They deserve it!

This lawsuit isn't going to result in anything useful for those who filed it. Ultimately, they're getting scammed again by the lawyers who CONvinced these people a lawsuit like this was a good idea. It's those investors who will be responsible for their lawyers' fees & court costs when their case isn't successful.

The OAG is a political office. If Florida put a check on AGs from entering politics for five years, for example, you wouldn't get so many abuses, negligence, etc.

Better still, ban every AG from running for Governor. That would shut down the crap and put the OAG on focus to prosecute anyone and everyone.

[Kim]

With all the publicity this case is getting, any judge would have to think twice about trying to brush these lawsuits under the rug. The main reason for the lawsuits are because elected government officials failed to do their job to begin with.

Serve a sitting Governor, expect the judges to get pressured. Politics 101.

The motion to dismiss is solid. The suit should not have been filed in NY. That was a decision of convenience, not legal intelligence. All that did was slow down an already slow process. They will have to start again in FL.

Meanwhile, if they can't overcome the 11th amendment liability argument, the case against all state employees will be shut down.

Florida has long established law that makes it virtually impossible to prosecute government employees in a civil court for various kinds of inappropriate conduct. You can't hardly separate the person from the office, and the office has immunity.

The only solution is criminal indictment against an individual, but this is a high bar, and the only valid prosecutor is another state office, not a private individual.

However, in this case, there is no smoking gun exposing corruption, so there will be no further lawsuits or indictments of any state employees from bottom to top.

The focus will return to The Fat Man.

[Helen Huntley]

To 7:32 am-
The documents in this case are available through the Pacer system (http://www.pacer.psc.uscourts.gov/) the same as the bankruptcy court documents. You just go to the site for the Southern District of NY. When I was reviewing it, I did not notice responses from defendants other than state officials, but the docket was rather confusing because of all the affidavits being filed by the plaintiffs.

[klaas]

Yes, very true and well-worded. Something to start your day with, rereading it.

I also recommend this article http://www.crimes-of-persuasion.com/Victims/victims.htm and subscribing to http://scammedbypearlman.com

[Kim]

To 11:45 those are great words of encouragement.

Helen,

Do we know if any or all of the co-defendants in the NY suit have responded to the summons? Specifically, the leadership at Pearlman's companies? Is there an online docket link you can give us? I sincerely doubt the counsel for Crist and his successor are representing any of Pearlman's henchmen.

To 11:23 pm I hope you will work "really hard" on forgiving yourself and even get counseling to speed that up, if necessary, and make it a priority, not "one day." It's a must if you are to get on with your life and still have happiness in your life. If you don't, you will waste it and really have something to regret later. I'm sure you've learned your lesson,as many often do - the hard way. You made a mistake in entrusting your life savings to a con artist.Don't let him and this experience rob you further of your happiness and your trust in people. Do not give him that satifaction and more power in your life. There are still decent people. Don't let anyone continue to make you feel bad about this, you've lost money, you're paying the "price", why punish yourself more;there is no point.As long as you are free (unlike lunatic lou) you have choices and you can give yourself permission to be happy and move on with your life. Corny but true.

[life savings lost]

New York would be a good venue for the suit but I think its a long shot a judge will keep it there. Expect it to go back to Florida and Lowy to refile along with all other creditors in Florida. Then after many many years over 10- 20 years of this going on expect a lot of legal mumbo jumbo but not anything actually being done. Unfortunately, I have come to the realization that I lost the bulk of my life savings but must continue my life the only one i have at least its not in jail.. Maybe if i work really hard I can make the money back and forgive myself one day. Lou will serve prison time but not life. he will get out one day and be reunited with the whatever portion of stolen money he has left.. i am more angry at myself for being taken by him and less trusting of others.. guess it is the way it is for now

[scammedbypearlman.com]

Thanks for making that clear Mike. I agree with much of Lowy's suit and wish him and his associates in New York the best of luck with it. I think we are all aware of my feelings regarding how the State of Florida handled (or rather didn't handle) the investigation of the EISA scam, going back over the last decade. I understand why Fiserve and other banks were named and I certainly agree that certain Trans Con employees have a financial responsibility to the victims.

I am also acutely aware of the fact that Lowy's suit may be the only avenue of recovery for many of us. I just have a problem with putting my name in as a plaintiff if Jerry is named as a defendant.

[Mike]

Scammed, let me clarify. I didn't mean I could see the reason Jerry is named. I meant that I can see the reason for the suit. I'm viewing it as a fact finding mission as 12:21 stated.

My use of the word "it" at the end of that sentence read the wrong way. I meant for that to read "in skimming the suit I cannot say that I really disagree with the lawsuit as a whole."

I read Jerry's comment the same way you did, he was trying to prevent people from becoming scammed again. I see no reason for him to be named.

[scammedbypearlman.com]

To Mike: you said..."Now I don't get why the whole thing about McHale is in there. However, in skimming the suit I cannot say that I really disagree with it. Seems to me they are trying to get everyone responsible to be responsible."

Jerry McHale is named in the suit NOT because he is responsible for anything. How could he be responsible for any wrong-doing when he didn't even come into the picture until after the State filed it's case against Trans Con?

Your comment is exactly the reason I feel his name should not be in this lawsuit. It is totally misleading. Jerry McHale is not responsible for any of us losing our money. Again, Jerry was merely trying to protect investors against unscrupulous people who may take advantage of us. Being sued is what he got for his trouble.

Apparently this Blog has been taken over by those who have no vested interest or you would understand what all the filings for discovery are for. First understand that the judge in NY granted the plaintiffs the right to secure information that would in turn support or not support the allegations against the State of Florida. Just like the tapes and conversations that fried Nixon , documents regarding all the past exchanges of information which occurred by the named defendants are being requested so that the information is preserved and not lost/destroyed....It is strongly believed that these documents which go back many years in time will beg to ask the question...Why did these oversights occur?, and are the amed defendents responsible. The 14th amendment may prevent any additional action, but if these potentially damaging documents become public you may see a case that sets a new precedent. Government in the future may be held responsible for blatant oversight or worse. The State of Florida is literally ignoring this request instead of providing what could expunge them from any wrong doing. I leave it up to the want to be lawyers on this post to explain why this should not happen.

Just someone who wants the truth

p.18

The State of Florida, as a sovereign entity, is immune from all liability unless waived.

Crist walks.

[Helen Huntley]

Charlie Crist since has been served, according to a filing July 10 by one of the plaintiff's lawyers.

p.15:

As noted above, Governor Crist has not yet been served, and thus makes no appearance. However, it is clear that the same analysis would be applicable to him. This Court has the
inherent power to address its jurisdiction and maintain its docket, and the State of Florida Defendants would urge the Court to order Crist’s dismissal from this action for lack of personal jurisdiction, as well.

lol!

p.2:

The Governor’s Office received a single summons directed to “State of Florida - Charlie Crist, Governor.” This summons was for the effectuation of service on the State of Florida. It did not seek to serve the Governor either in his official or individual capacity."

Is this a sign of desperation by the defense? If that isn't hair-splitting, what is!?

How was the new AG served?

> Florida’s Governor, Charles J. Crist, is also a named defendant but has not yet been properly served and therefore is not represented in this motion

??? Helen, what do you make of that? I mean if you're going to bother to sue the AG, you might as well serve him, right? Do you know if the service has been completed since the opposing counsel alleged in the motion to dismiss he was incorrectly served? Is there a special way to serve a Governor/AG?

[Helen Huntley]

To 7:45 p.m.--Investing for interest income is one type of investing. Any time you hand over your money with the expectation of earning a return on it, you become an investor. When you buy a CD at the bank, you are an investor because you do it to earn interest income. However, if you put cash in a safe deposit box at the same bank, you would not be an investor because you would not be expecting any return.

[James]

Even if typepad does keep the IP's of the posters, good luck to these guys in getting them and proving that it was indeed McHale who posted that. After all, it's been nearly 5 months since that was posted. How long are "blogs" required to keep that info? E-discovery is such a new area, there is no telling how a judge might rule.

It wouldn't surprise me to see a bunch more dismissal requests.

[Mike]

Whooo hoooo. I'm famous. I noticed one of my posts in the exhibit.

Now I don't get why the whole thing about McHale is in there. However, in skimming the suit I cannot say that I really disagree with it. Seems to me they are trying to get everyone responsible to be responsible.

Personally, I think the banks should be held responsible for their stupid decisions to give money to Pearlman. I also think anyone involved, especially agents and salespeople should pay the price for preying on the elderly. They should receive the maximum jail time and have all their assets liquidated and give the proceeds to the investors.

Pearlman is more than likely going to prison for a long time so he's taken care of. After all, the Feds win 95% of the cases they bring indictments in.

[ben]

07:45

If it walks like a duck, quacks like a duck its a duck. you INVESTED in what you thought was a CD. you are an investor. So am I

Looks like attorney Jim Lowry is suing everyone but the Pope.

[Kim]

Well, after reading the filings and motions to dismiss, I am completely amazed at how one's statements can be misconstrued (don't know if the spelling is correct). I didn't find anything wrong with McHale's posting. Nor could I find anything wrong with what Danielle had to say. I believe she is the one responsible for bringing about this scam finally. I don't see why or how some of these defendants can be charged when they are only agents with no authority to make decisions. They all have someone they have to answer to and get authorization from to make any kind of move. However I do believe that a majority of the defendants are responsible and should be held liable. I guess we just have to wait and see.

Helen, you keep referrig to the "investors". Most folks I have talked to did not consider themselvs "investors". We put our money into what was represented as FDIC money market funds. We did not want any risk that a typical investor would take on. We were fixed income, safety first people. The "invstors" bought stock, not EISA.

The bullying and intimidation are in full swing, apparantly. Dosn't someone need to be famous before you can defame him? If this thing turns into a legal circus, it's going to diffuse all efforts. On the other hand, maybe it's appropriate that it does, since Lou used the courts to get where he got-a jail cell.

[scammedbypearlman.com]

I agree with you, Helen. I think Jerry made that comment as a general warning and not as a response to a specific post. I think it was misconstrued merely because of his timing. It is a shame when a well-meaning person gets into a lawsuit just because he is trying to protect others. It is a deterrent to do-gooders.

[Helen Huntley]

James-
As I have said here before, I personally do not have any information about IP addresses used to post comments to the blog. If that information is available, I'm sure it would take a subpoena to get it and then I don't know how reliable it would be.

[James]

Helen, is there any way to prove that it was Mr. McHale that posted that? Do you have the IP and/or MAC address that was used to post?

If not, how is there any proof that it was Mr. McHale that actually posted that? I could put Jerry McHale in the name box with my t-con email address and post it from a WiFi at Starbucks or other restaurant or even outside a home/apartment with an unsecured access point. In that case, good luck to anyone trying to prove the identity of the poster.

With spoofing technology, there are so many ways around proving identity on the internet if you know what you're doing and really want to hide.

[Helen Huntley]

Jim Lowy accused Jerry McHale of defaming him in a comment made on this blog. See part 3, page 9. I read Jerry's comment as a general warning to investor victims not to get caught up in another scam, but apparently Jim read it differently.

[Donnie]

What does Jerry McHale have to do with this lawsuit?

About the volumnious filings, sounds like good reading for the local clerk or paralegal, seriously doubt a judge will read it. Not that these folks don't have something to say.