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5/6/2010

Lynch Flinches On Call For Release Of Ponzi Scheme Banking Documents

State Government In Chaos As Lynch Backs Off Disclosure Order

CONCORD – The New Hampshire Business Review (5/6/10) today reports that Governor Lynch has backed off his call for the release of all banking documents related to the collapse of the Financial Resources Mortgage (FRM) Ponzi Scheme.
 
“The Governor must honor his word and demand that his administration release the banking documents related to the FRM Ponzi scheme,” said NHGOP Communications Director Ryan Williams. “Governor Lynch has completely mismanaged his administration’s response to this massive fraud. For months, the Governor sat on his hands while state agencies engaged in shameful finger pointing and his administration slipped into chaos. This fiasco has reminded New Hampshire voters that it important to replace John Lynch with a competent Republican governor who can clean up his mess in Concord.”
 
On Tuesday, Governor Lynch finally broke his silence and told WMUR-TV that “All records related to the Ponzi scheme should be released to the public, whether it’s agency records, Securities, Banking – whatever.” (5/4/10).
 
Based on Governor Lynch’s order, Securities Bureau Director Mark Connolly was set to publicly release important financial documents yesterday relating to FRM’s collapse. But Director Connelly was blocked by Lynch’s appointed banking commissioner and prevented from discharging the records. Lynch backed off his disclosure order and backed up his banking commissioner’s decision.
 
“There are banking statues in place that limit what can and cannot be released,” said Governor Lynch’s spokesman (NHBR, 5/6/10).
 
A married couple who invested in FRM announced today that they plan to sue the Lynch Administration for “negligence and negligent misrepresentation.” They claim that Lynch’s banking department withheld important records from investors before the failed mortgage company collapsed (Concord Monitor, 5/6/10). Evidence to back up the couple’s claims may be included in the documents that Director Connolly attempted to release yesterday.