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.
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.
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.
Vincent B. Lynch
Lynch & Robbins PA
2639 Dr. MLK Jr. St. N
St. Petersburg, FL 33704