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The state agency that administers the new $10 million compensation fund for victims of the Financial Resources Mortgage Ponzi scheme received 159 claims by the May 18 deadline. The claims administrator who oversees the fund at the attorney general’s office has not yet calculated how much plaintiffs will receive, spokesman Michael Garrity said.
The Legislature established the fund last year to compensate investors who were harmed not only by FRM, but also by several state agencies that a 2010 state audit found failed to investigate numerous complaints against the company, ignored conflicts of interest and failed to cooperate with each other. .
Read more: NH state budget allocates $10 million for victims of FRM, the Ponzi scheme that rocked state politics
The audit, which found about 150 people had been defrauded of almost $20 million, named the Justice Department, banking department and securities bureau.
Sen. Gary Daniels, a Republican from Milford, cited state culpability in June when he defended the creation of the fund during a legislative hearing.
“First, the economy is doing well,” he said then. “This situation is something that should never have happened. The fact that we got income like they did, it’s the state’s due diligence to deal with it.
The Claims Administrator reviews the 159 claims to ensure they are complete and accurate, and contacts claimants if further information is needed. Payments will be made on December 31, Garrity said.
Investors are eligible, as are their surviving spouses and children if deceased. Rewards are capped at 50% of the amount lost on the applicant’s initial investment, according to the attorney general’s office.
Some Democrats opposed the fund last year and introduced Bill 1509 to repeal it. The bill failed in the House.
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