A spokesperson for candidate Dan Hynes Comptroller running for Illinois Governor responded to my blog Post today about the way the Comptroller handled the Illinois Funeral Directors Association (IFDA)Ponzi Scheme. In an E-Mail Carol Knowles revealed significant Information.
THE ILLINOIS FUNERAL DIRECTORS ASSOCIATION HAD 2 SETS OF BOOKS.
PART OF THE BLAME FOR NON -REGULATION OF THE PONZI SCAM SHOULD GO TO THE ILLINOIS DEPARTMENT OF INSURANCE.
THE IFDA “AWARDED INTEREST BASED ON A WHIM NOT ACTUAL EARNINGS”
I think you may have missed the point.
The IFDA issue is about the regulation of insurance policies and trusts.
Those regulatory matters are in the hands of the Illinois Department of Professional Regulation — NOT the Comptroller’s Office.
The regulation of the IFDA trust was no longer under the regulatory authority of the Comptroller’s Office beginning in the mid 1990s when the state law was changed.
The “license” the IFDA Trust had was to SELL preneed and it had been issued DECADES earlier. It was irrelevant because the IFDA DID NOT SELL preneed.
The Comptroller’s Office uncovered the problem, stopped the bad guys and moved to protect the trust by alerting the IDFPR.
The IDFPR could have and should have frozen the fund in 2006 when they were advised of the problem, but instead they chose let the IFDA try to qualify as a proper trustee. When that failed they told them to find an appropriate trustee. The IFDA fought regulators at every step of the way.
The “earnings” they reported to their members and/or consumers were fantasy numbers. They awarded interest based on a whim, not actual earnings. They paid various members off with $25,000 personal insurance policies. They essentially had 2 sets of books.
The IFDA began purchasing these policies in the mid 1980s — where was the Department of Insurance (part of the IDFPR)?
The IFDA was advised by their own lawyers in the mid 1990s that they needed to be regulated by IDFPR but they ignored it and operated without a proper trustee.
Bruce Rushton was given all of these documents but chose not to report all of the facts.
THIS IS VERY INTERESTING, SHE IS ACCUSING THE STATE JOURNAL REGISTER A SPRINGFIELD ILLINOIS NEWSPAPER AND REPORTER BRUCE RUSHTON OF NOT REPORTING THE FACTS.
Note: THE IFDA SOLD PRENEED POLICY|IES THROUGH MEMBER FUNERAL HOMES.
The spokesman is shifting blame to other Illinois Governmental Agencies.
This is all revealing and somewhat shocking.
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