Bernie Madoff Requests Transfer to Tennessee
A bill is making its way through the Tennessee State Legislature that would allow the perpetrators of ponzi schemes to get away with a slap on the wrist. Ken Whitehouse out with the scuttlebutt in the Nashville City Paper:
The House bill in question, as introduced, declares the statutory remedies and sanctions that apply to certain acts by an insurer, person, or entity licensed, permitted, or authorized by the division of insurance under title 56 of Tennessee law. The bill would amend Title 56 to — according to Tennessee Citizen Action Executive Director Mary Mancini — “chip away at the strength of the Tennessee Consumer Protection Act” by saying insurance policyholders are no longer considered consumers.
“It would prevent policyholders from filing suit against insurers who refuse to pay claims or an unlicensed agent who stole from them,” Mancini said. “Our concern is that this bill, by taking all insurance cases out from under the jurisdiction of the TCPA, is just the beginning of the state legislature chipping away at the TCPA, a law that is specifically in place to protect the hardworking people of Tennessee.”
Mancini pointed to the case of Franklin-based National Foundation of America, which went under in 2007. Before the venture was declared insolvent, the company and its founders, Richard and Susan Olive, had received control of more than $31 million in assets from customers in exchange for issuing at least 327 illegal annuities, according to allegations in a lawsuit filed in Davidson County Chancery Court.
The Tennessee Department of Commerce and Insurance was able to work with banks and insurance producers in returning nearly 78% of the lost funds in that case, or $15.4 million, to Tennessee victims, according to IFwebnews.com. The company and its leaders were indicted in 2010 by Tennessee Attorney General’s Office and Williamson County District Attorney’s Office.