CONCORD #x2014; A former Exeter businessman and ex-high school hockey coach accused of financial fraud has pleaded guilty to federal charges and will be sentenced in February.
Frederick V. McMenimen, III, 53, of Bow, entered guilty pleas in US District Court in Concord to one count of mail fraud, one count of money laundering and three counts of federal income tax evasion, US Attorney John P. Kacavas announced this week.
McMenimen was an assistant hockey coach at Exeter High School for 17 years and one of the original founders of The Rinks at Exeter. He also made headlines in 2005 when he won a $1.4 million cash jackpot in Megabucks.
In the federal case, prosecutors said McMenimen admitted that from approximately September 2008 to about October 2011 he fraudulently solicited more than $1 million in purported investments from some of his financial advisory clients.
Each of the clients was an elderly widow whose family had long-standing personal relationships with McMenimen#x2019;s family.
McMenimen advised each client to liquidate existing annuities or other investments, to deposit the proceeds in their checking accounts and to then write checks payable to #x201c;PSB,#x201d; according to prosecutors.
In most instances, McMenimen got the clients to write those checks by falsely leading them to believe that PSB was another
investment vehicle that was better for them than their existing annuities, prosecutors said.
However, prosecutors said, PSB was a shorthand reference to a defunct retail sporting goods business, PSB Sports LLC that McMenimen had once owned and operated.
Between approximately Sept. 8, 2008, and October 2011, prosecutors said, McMenimen fraudulently induced the clients to write 23 checks payable to PSB, amounting to an estimated $1.3 million.
McMenimen deposited the checks into a bank account he maintained in the name of PSB. He then used those funds to purchase official bank checks which he directly or indirectly deposited into a checking account maintained in a relative#x2019;s name at an FDIC-insured financial institution.
According to prosecutors, the relative in whose name the account was maintained provided McMenimen with several books of pre-signed but otherwise blank checks, thereby affording McMenimen complete access to the fraudulently obtained funds.
Despite expending all of the proceeds on personal expenses, McMenimen did not record any of the fraudulently obtained funds as income on the tax returns he filed for tax years 2008, 2009 and 2010, prosecutors said.
Because McMenimen underreported his income for those tax years, his tax returns reflected a tax due and owing that was substantially less than his true tax liability.
McMenimen is scheduled to be sentenced on Feb. 11.
Assistant US Attorney Bill Morse prosecuted the case, which was investigated by the Bedford field of the Federal Bureau of Investigation, the Portsmouth field office of the IRS#x2019;s Criminal Investigation Division and the Department of Education.


Lincoln Financial Group will break a b-to-c and b-to-b campaign Nov. 10 called Give Thanks, which is timed to coincide with Thanksgiving and the holidays.

The integrated campaign, created by Gyro, New York, includes TV, radio, print and online ads. The budget was undisclosed.

Give Thanks is an extension of Lincolns Youre In Charge/Chief Life Officer campaign, which was launched in November 2011 during a broadcast of the Macys Thanksgiving Day Parade. The campaign was also created by Gyro.

The overall campaign is designed to build awareness, familiarity and engagement with Lincoln Financial, said Jamie DePeau, corporate chief marketing officer at Lincoln Financial Group.

Thanksgiving is a perfect time to create an emotional connection with our audiences, she said. There is great alignment between being the boss of your own life and pausing for a moment to give thanks to the people who have helped you become a chief life officer.

The Youre in Charge/Chief Life Officer campaign shows how Lincoln Financial Group offers financial services to help consumers and businesses be in charge of their lives and finances.

Lincoln offers financial services including life insurance, group benefits, retirement planning and financial advisory services.

Last week, Lincoln Financial Group reported record operating revenue of $3.4 billion for the third quarter, up 9% over the same period last year.

This holiday effort is a natural evolution of Lincoln Financials Youre in Charge campaign platform, said Paul Hackett, creative director at Gyro.

Its very hard to achieve success in life without the help of others. The goal of this campaign was to give credit to the people who helped make us who we are today. And theres no better time than Thanksgiving to say thanks to the people that mean the most to us.

In addition to running during the Macys Thanksgiving Day Parade broadcast on NBC, the TV spot will run on NBCs Today Show, CBSs 60 Minutes, and cable networks including DIY, Food Network and HGTV.

Print and online ads will run in publications including Investment News, USA Today and The Wall Street Journal.

The campaign also includes a Man on the Street online video, in which Americans talk about who they are thankful for.



ALLEN PARK, MI -- The US Securities and Exchange Commission on Thursday announced fraud charges against Allen Park, a former mayor and a former administrator in relation to a failed movie studio project the saddled the city with millions in bond debt.

Federal investigators found that the city gave investors misleading information and made unrealistic claims when it sold $31 million in bonds in 2009 and 2010 to purchase a 104-acre former Visteon Corp. property on Southfield Road.

The city, former mayor Gary Burtka and former city administrator Eric Waidelich each agreed to settlement deals with the SEC, the federal financial regulatory agency announced.

The city, according to SEC investigators, begin planning for the movie studio project in 2008 -- after the state approved film industry tax credits, pitching to bond buyers an economic development plan that would create a $146-million facility with eight sound stages and a Hollywood executive director at the helm.

Annual revenue from leasing the site would bring the city $1.6 million a year that could go toward repaying the bond debt, officials projected.

But by the time the bonds were issued in Nov. 2009, and June 2010, plans for the site had been dramatically downsized to the development a vocational school.

City officials, according to federal investigators, never told borrowers about the smaller, less lucrative plan, nor about the fact that the citys budget deficit had ballooned to $2 million in 2010.

Debt payments on the bonds amounted to about 10 percent of the citys budget.

The state appointed an emergency manager to take over Allen Park government in 2012, citing the failed Unity Studios project as a factor.

Municipal bond disclosures must provide investors with an accurate portrayal of a projects prospects and the municipalitys ability to repay those who invest, said SEC Enforcement Division Director Andrew Ceresney. Allen Park solicited investors with an unrealistic and untruthful pitch, and used outdated budget information in offering documents to avoid revealing its budget deficit.

Waidelich, without admitting or denying the allegations, agreed to settle the case against him with a judgment barring him from ever participating in municipal bond offerings, according to the SEC.

Burtka, charged because he was an active champion of the project and in a position to control the actions of the city and Waidelich, according to the SEC, also agreed to being banned from involvement in future municipal bond offerings, plus a $10,000 penalty.

The city agreed only to to cease and desist from future violations of SEC provisions.

The SEC considered certain remedial measures taken by the city, which settled the enforcement action without admitting or denying the findings, the agency announced.

The city earlier this year cut its losses on the failed project, selling the site for $12 million in a deal that then-Emergency Manager Joyce Parker said would save $1.2 million a year in maintenance, tax, insurance and utility costs.

A New York firm plans to develop a hotel on the site.

The state in September announced an end to emergency management in Allen Park and the establishment of a financial advisory board to continue oversight over the downriver Detroit suburbs finances.



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