TITLE XXXI
TRADE AND COMMERCE
Chapter 359-P
FRM VICTIMS' CONTRIBUTION RECOVERY FUND
Section 359-P:1
359-P:1 Definitions. –
In this chapter:
I. "Claimant" means a person who is a victim of the Financial Resources Mortgage fraud and who has filed a complete application for recovery assistance under this chapter.
II. "Director" means the director of charitable trusts, department of justice.
III. "Financial Resources Mortgage" means Financial Resources Mortgage, Inc., C L and M, Inc., and any predecessor, successor, or affiliated entities, and any entities established by, through, or with Scott Farah or Donald Dodge, through which moneys of Financial Resources Mortgage, Inc., C L and M, Inc., and any predecessor, successor, or affiliated entities passed.
IV. "Financial Resources Mortgage fraud" means fraudulent acts committed by Financial Resources Mortgage or its principals where loans were brokered by or serviced by Financial Resources Mortgage.
V. "Fund" means the FRM victims' contribution recovery fund established in RSA 359-P:2.
VI. "Person" means an individual, corporation, partnership, association, joint stock company, unincorporated organization, or any other entity.
VII. "Qualifying claimant" means a person who suffered financial losses as a result of the Financial Resources Mortgage fraud and is a claimant eligible for recovery assistance under this chapter. Qualifying claimant shall not include a borrower under any loan transaction borrowed or serviced by Financial Resources Mortgage.
VIII. "Recovery assistance" means payments from the fund to persons who suffered financial losses as a result of the Financial Resources Mortgage fraud.
IX. "Victim" means a person who suffered monetary injury as a result of the Financial Resources Mortgage fraud.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:2
359-P:2 FRM Victims' Contribution Recovery Fund Established. –
I. There is hereby established the FRM victims' contribution recovery fund. The fund shall be nonlapsing and continually appropriated to the director. The fund shall be capped at $10,000,000 and shall consist of gifts and contributions of any kind.
II. The fund shall be used for awarding recovery assistance pursuant to this chapter.
III. The total amount in the fund less costs of administration shall be distributed on a pro rata basis to qualifying claimants annually on December 31 until all such claims are satisfied.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:3
359-P:3 Eligibility for Recovery Assistance. –
I. Except as otherwise provided in this chapter, a claimant shall be eligible for recovery assistance at the rate of 50 cents on each dollar lost by the claimant under this chapter if the claimant:
(a) Submits all supplemental documents as requested by the attorney or administrator.
(b) Can demonstrate loss due to the Financial Resources Mortgage fraud.
(c) Meets all other requirements of this chapter.
II. In addition to a qualifying claimant and except as otherwise provided in this chapter, a surviving spouse or surviving child of a qualifying claimant shall be eligible for recovery assistance under this chapter.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:4
359-P:4 Attorney/Administrator. –
The director shall hire an attorney or administrator who shall review applications for assistance submitted pursuant to this chapter, make awards of assistance in accordance with the procedures of this chapter, and report annually to the director commencing on February 1, 2022 and each February 1 thereafter. The director shall negotiate the attorney's or administrator's salary and benefit level in accordance with similar levels within the department.
Source. 2016, 293:2, eff. Aug. 20, 2016. 2021, 91:84, eff. July 1, 2021.
Section 359-P:5
359-P:5 Recovery Assistance. –
I. A victim eligible for recovery assistance under RSA 359-P:3 may file an application for recovery assistance with the attorney or administrator on the following form:
Financial Resources Mortgage, Inc and CL__ampersand__M, Inc. Victims Indemnification Application
Name
Address
Phone
E-mail
Social Security No.
I.) Proof of Claim Federal Bankruptcy Court Case 09-14565-JMD and 09-14566-JMD date filed ____________________
Loans or Mortgages claimed (copy attached)
1.______________________________ Amount $ __________
2.______________________________ Amount $ __________
3.______________________________ Amount $ __________
4.______________________________ Amount $ __________
5.______________________________ Amount $ __________
6.______________________________ Amount $ __________
7.______________________________ Amount $ __________
8.______________________________ Amount $ __________
9.______________________________ Amount $ __________
10.______________________________ Amount $ __________
Total Proof of Claim Amount $ ___________
II.) Were you a defendant in case no. 09-1184-JMD? Yes No
Were you dismissed from the case? Yes No
III.) Did you settle with the Trustee? Yes No
Did you make a payment to the Trustee for the benefit of the bankruptcy estates to settle with the Trustee? Yes No Amount $ ___________
IV.) List any additional payments to the trustee as a result of any mortgage foreclosed, sold, or repaid as a condition of your settlement. Example: Agreed to split proceeds 80/20 with Trustee.
1.______________________________ Amount $ __________
2.______________________________ Amount $ __________
3.______________________________ Amount $ __________
4.______________________________ Amount $ __________
5.______________________________ Amount $ __________
Post settlement payments to Trustee Amount $ _____________
V.) Did you retain 100% ownership of any mortgages as a result of settlement? Yes (list below) No
1.______________________________ Amount $ __________
2.______________________________ Amount $ __________
3.______________________________ Amount $ __________
4.______________________________ Amount $ __________
5.______________________________ Amount $ __________
Total Retained 100% ownership $ __________
VI.) List any payment from the Trustee on any mortgage he or she foreclosed on, sold, or received repayment of principal and from which proceeds were agreed to be split with you as a result of settlement.
1.______________________________ Amount $ __________
2.______________________________ Amount $ __________
3.______________________________ Amount $ __________
4.______________________________ Amount $ __________
5.______________________________ Amount $ __________
Total Split Proceeds received from Trustee post settlement $ __________
VII.) Final Distribution of Bankruptcy Estate by Trustee received by you $ ___________
VIII.) Total Interest received from FRM or CL__ampersand__M January 2006 through November 2009 $ ___________
(attach form 1040 and Schedule B, Interest and Dividends, for 2006-2009)
Calculate Loss:
A. Total Section I. Proof of Claim $ _____________
Total Section III. Settlement Payment $ _____________
Total Section IV. Proceed split payment to Trustee $ _____________
Total A. $ _____________
B. Total Section V. 00% Retained Mortgages $ _____________
Total Section VI. Proceed Split receipt from Trustee $ _____________
Total Section VII. Final Distribution from Trustee $ _____________
Total Section VIII. Interest Received $ _____________
Total of any other awards not otherwise accounted for $ _____________
Total B. $ _____________
C. Total A minus Total B. Allowable Loss $ _____________
Signature ____________________________
Date _____________________
Signed under penalty of perjury
For administration purposes only
Grand Total All Losses submitted $ _____________
(name) ___________________ allowable loss submitted $ __________
Percent of Grand Total submitted _______________ %
II. The complete application shall be received not more than 180 days after the appointment of a private attorney or administrator pursuant to RSA 359-P:4. An extension of time may be granted for good cause shown by the claimant. However, an application that is received more than 270 days after the appointment of a private attorney or administrator shall not be accepted. The attorney or administrator shall send a notice regarding the process for recovery under this chapter to the last known address of potential claimants.
III. All applications filed in compliance with this chapter shall be accepted. Processing of an application shall begin upon receipt of a complete application. All applications shall be reviewed by the attorney or administrator to ensure that the applications are complete. If an application is not complete, it shall be returned to the claimant with a brief statement of the additional information required. The application shall be denied if the applicant does not furnish additional information or additional time is not granted for good cause. Once an application is accepted as complete, the applicant shall be so notified.
IV. The attorney or administrator shall determine the amount of loss of original investments, if any, of each claimant and the pro rata share to be distributed to a claim demonstrating loss.
V. Recovery assistance shall be limited to 50 cents on each dollar lost on the amount of the claimant's original investment.
VI. The attorney or administrator may consider individual claims filed by persons owning a joint interest that was subject to loss due to the Financial Resources Mortgage fraud, but any recovery awarded shall only be to the extent of each individual claimant's original investment.
Source. 2016, 293:2, eff. Aug. 20, 2016. 2017, 109:2, eff. June 8, 2017.
Section 359-P:6
359-P:6 Awards Under This Chapter Set Off Against Any Other Recovery. –
I. The amount of any award made under this chapter shall be set off against any other recovery sources, including, but not limited to awards from private suits, arbitration, bankruptcy court awards or settlements, or other sources of recovery.
II. In the event a qualifying claimant receives an award from a recovery source listed in paragraph I subsequent to the filing of a claim under this chapter, the claimant shall immediately notify the attorney or administrator of the award. The attorney or administrator shall then modify the claimant's award and pro rata share by offsetting such award against the claimant's award under this chapter.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:7
359-P:7 Recovery Assistance Prohibited. –
Recovery assistance shall not be awarded if the attorney or administrator for the attorney or administrator determines the claimant:
I. Sustained the monetary injury as a result of participating or assisting in or attempting to commit or committing financial fraud with Financial Resources Mortgage; or
II. Profited or would have profited from the financial fraud of Financial Resources Mortgage.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:8
359-P:8 Award Not Subject to Other Processes. –
An award made under this chapter shall not be subject to execution, attachment, garnishment, or other process. A claimant convicted of forgery, fraud, or deception in connection with a claim under this chapter shall forfeit an award paid to the claimant under this chapter.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:9
359-P:9 Liability of State. –
The state shall be under no obligation or liability under this chapter except to make payments to claimants to whom the recovery fund attorney or administrator has made awards of assistance, but only to the extent there is money available in the fund.
Source. 2016, 293:2, eff. Aug. 20, 2016.
Section 359-P:10
359-P:10 Claims Prior to January 1, 2006. –
Claims for restitution assistance shall not be accepted for any losses that occurred prior to January 1, 2006 due to financial fraud.
Source. 2016, 293:2, eff. Aug. 20, 2016.