Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (61550)	10/26/2000 4:36:21 PM
From: StockDung	Read Replies (1) \| Respond to of 122087

Ex-Stock Promoter Brennan May Keep Assets Offshore, Court Says New York, Oct. 26 (Bloomberg) -- Former stock promoter Robert E. Brennan has won a ruling from a federal appeals court that will allow him to keep millions of dollars in an offshore trust. The U.S. 2nd Circuit Court of Appeals in New York said today that a lower court judge erred in April when he ordered Brennan to repatriate the assets from a trust in the Caribbean island of Nevis. Brennan, who filed for bankruptcy in 1995, convinced the appeals court that only a bankruptcy judge -- and not a district court judge -- can order him to return the assets to the U.S. The Cardinal Trust was funded with $5 million in securities sometime in 1994, the appeals court said. ``Brennan contends that the (district court judge's) order violates'' the bankruptcy code, the appeals court wrote. ``We conclude that the order of the district court must be vacated.'' The Securities and Exchange Commission convinced a federal court judge in 1995 that Brennan duped small investors in a notorious penny stock scam during the early and mid-1980s. U.S. District Judge Richard Owen ordered Brennan to disgorge $75 million. Three weeks later, Brennan filed for bankruptcy. In reversing Owen's April repatriation order, the appeals court said the SEC could seek a similar order from the New Jersey bankruptcy judge presiding over Brennan's bankruptcy case. A bankruptcy judge there, however, denied a repatriation request in 1998. Earlier this year, Brennan, of Colts Neck, New Jersey, was indicted by federal and state authorities in New Jersey for bankruptcy fraud. Prosecutors said Brennan tried to hide from creditors more than $500,000 in Las Vegas casino chips that he amassed before filing for bankruptcy protection. Authorities say Brennan has maintained a lavish lifestyle despite the $75 million judgment against him. Besides his New Jersey home, he owns a 4-bedroom, 7 1/2-bath oceanfront home in Juno Beach, Florida, equipped with a pool, spa, exercise room, and climate-controlled wine cellar, prosecutors said. Brennan owned First Jersey Securities, Inc. and was chairman of International Thoroughbred Breeders, which owned and operated race tracks throughout New Jersey. Oct/26/2000 15:48 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.