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Letter: State must support FRM scandal victims

The New Hampshire House must support Senate Bill 180 for the victims of the state’s multiple failures to enforce the law regarding FRM.

The New Hampshire Banking Department made mistake after mistake after mistake after mistake for nine consecutive years in six audits documenting 70 state and federal law violations and insolvency at FRM. Obviously this was more than a simple mistake. The banking commissioner’s brother was involved with FRM. Did banking turn a blind eye to FRM?

The New Hampshire Banking Department made another mistake by not requiring FRM to acquire and maintain a fidelity bond as required by law to cover employee theft. This failure cost victims significantly.

The second agency to make more than a simple mistake is the attorney general’s office, when its ex-white-collar crime attorney twice in a one-year period informed the office that FRM and Scott Farah were running a criminal scheme, while the same AG’s office had just received a similar report from a former FRM employee and another Farah company. There wasn’t a single investigation.

People with reasonable judgment or simple common sense must conclude the state is morally and financially responsible to the FRM victims.

Is the state setting a precedent by righting the wrongs it allowed to happen to the FRM victims? If it doesn’t, the state admits failure is the acceptable standard and is business as usual.

For more information, go to Thank you for your support.



Legacy Comments2

Who does Mr. Bean think the state is? The state, Mr. Bean, is the taxpayers. I don't know why the taxpayers of NH should be on the hook to repay those who invested in a get rich quick scam. Sure, state employees made mistakes. But the investors were the ones to do due diligence and assume the risks associated with high yield, private investments. The taxpayers aren't the ones to blame for your loss and shouldn't be responsible for covering your losses.

"You can't cheat an honest man." and "If it sounds too good to be true, it probably is." Are two quotes that come to mind when it comes to ponzi schemes.

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