|
|
| |
During the early 80s, The Mutual Life Insurance Company of New York (MONY) suffered
heavy losses due to a failed attempt at expansion. The New York Department of Insurance led by a former MONY employee
and the NAIC allowed MONY to violate state insurance laws and invest policyholders' funds in high-risk real estate and junk
bonds in an effort to recoup the losses. The illegal plan by The National Association of Insurance Commissioners and
the New York Department of Insurance met Karma with the S&L failure and the real estate crash in the late 80s. MONY was insolvent and should have been placed in receivership. Policyholders would have been able to make decisions
about the future of the "investment-grade life insurance contracts" that the NAIC had allowed on the market. The
policies illustrated dividends based on 12% returns on overvalued and non-existent assets. The NAIC knew that the company
had little chance of ever surviving little lone paying the illustrated dividends. They failed to protect the Public in order
to hide their own criminal involvement. Receivership would
have exposed the criminal conspiracy by the NAIC, New York, Coopers & Lybrand, and MONY's officers and no doubt led to
a RICO charge and Civil Rights violations. The R. Larry Johnson CPA affidavit at http://pwcsucks.com/id7.html deals with the fraudulent financials that Coopers & Lybrand and MONY produced and filed with state governments and
the NAIC. In 1992 the NAIC, Georgia, Oklahoma and
Nevada Departments of Insurance conducted a regularly scheduled examination of MONY. I obtained a copy of the exam and
met with the Oklahoma Department of Insurance. They were less than honest, to say the least. I then contacted the Georgia
Department of Insurance and spoke with Heather Staley and Mr. Reed who explained that they were working with the NAIC and
the New York Department of Insurance to save MONY from receivership as it would be a great embarrassment to the industry.
He said, "We are trying to help the most people." Example
of the help Georgia and the NAIC gave to the Public: In 1986 Policyholder 1 age 35 purchased a
MONYCONOMIZER /IRAA retirement plan for $2026.00 per year. At age 65 he would be able to receive a benefit of $ 31,117.00
for 15 years at which time he would still have $99,000 in cash value. Policyholder 1 paid the premiums to age 65 when he was
informed that he would only receive payments for one (1) year. In 1994 the Florida Department
of Insurance reviewed MONY's 1993 audited (Coopers & Lybrand) financial statement and found the company had submitted
statements claiming $600,174,622 in surplus. After disallowing non-admitted assets they were minus $748,106,483 in surplus!
There was no mention of the millions of dollars paid to officers from the secret Phantom Stock Plan that was based on profits
that never happened. By 1996 Coopers & Lybrand L.L.P.
had lost their independence by selling financial instruments to MONY on the side. They had also been placed on two years
probation by the USDOJ for bid-rigging of government contracts in Arizona. They were merged with Pricewaterhouse L.L.P.
to become PricewaterhouseCoopers. The Texas Board of Public Accountancy confirmed that PwC would not be independent on MONY's
statements until someone else audits them. The NAIC invited
the Securities & Exchange and PricewaterhouseCoopers to join in the massive MONY fraud by taking MONY Public and raising
more than a billion dollars with the fraudulent financial statements. In early 1998 SEC Chairman Arthur Levitt was asked
to help MONY policyholders get an accurate, concise, and properly opined financial statement for MONY before policyholders
were asked to vote on demutualization. PWC Chairman Robert Moritz led the US Assurance practice for the New York
Region during the time that PWC took MONY public with the fraudulent financial statements. Chairman Levitt had NY Regional
Director Carmen J. Lawrence respond to the request. She lied about MONY filing financial reports with the SEC. Letters
posted http://pwcsucks.com/id24.html
The IPO raised enough money to keep MONY afloat for five years at which time PricewaterhouseCoopers could
stand on both sides of the sale to AXA for less than book value. PwC would later handle the sale to Protective Life which
was then purchased by Dia-Ichi Life in Japan for final burial. All of this is without meeting the independence
rules required in all 50 states for over 30 years. The only losers in all this were the policyholders
in the closed block! More than 900,000 policyholders were the victims of Organized Crime!
HONESTY AND INTEGRITY ARE ALWAYS NEGOTIABLE!
SHAZAM!!! Ben Lewis gets new gig! Director, Office
of General Counsel PwC Ben Lewis Senior
Counsel PCAOB
Dear
Mr. Lewis,
It has now been 6 months since we last talked
about the massive accounting fraud and Ponzi by PricewaterhouseCoopers LLP. I can not find anything that you or the
PCAOB did! I am now assuming that you were being less than truthful about all that integrity of you and your organization.
R. Dale Abshire 2606 Twelve Oaks Colleyville, TX 76034
Melissa Handrigan | Senior Counsel, Division
of Enforcement and Investigations
Public Company Accounting Oversight Board
1666 K Street NW, Suite 1024, Washington, DC
20006
Office: 202.591.4442 | Mobile:
202.257-7574 | handriganm@pcaobus.org Info Sent to PCAOB that caused the
current investigation! Gregory K. Palm You may recall that I contacted your office during
1998 concerning the fraudulent financial statements that PricewaterhouseCoopers LLP had prepared for the IPO of the Mutual
of New York (MONY). Your office reviewed the information and told me Goldman Sachs had no concerns and were
relying on PricewaterhouseCoopers LLP unqualified opinions of the financials and actuarial reports. GS had no problem
with PricewaterhouseCoopers LLP standing on both sides of the transaction and was fully aware of MONY's failure to disclose
the massive Ponzi against policyholders of the company. The Ponzi is ongoing. I want to give you an opportunity to clarify any misinformation
that I may have posted on the http://www.pwcsucks.com/ and http://www.monybush.com/ web sites. Please review them and let me know of any changes that you feel need to be made.
If I do not hear from you, I will assume you are in agreement with the content. You may want to review the 3700 Buffalo Speedway
transaction and the Florida / Bill Nelson letter cited below. Enclosed is the letter to the TSBPA and the AICPA concerning
their part in this cabal. Please do not hesitate to contact me with any questions or documentation. Colleyville, TX 76034
817 946-8097 During 1998 I provided you, Paul Gavia and AICPA
President and CEO Barry Melancon information concerning the lack of independence by Coopers & Lybrand / PricewaterhouseCoopers
LLP on the financial statements of the Mutual Life Insurance Company of New York, commonly and hereafter referred to
as MONY. I also provided the sworn affidavit of CPA R. Larry Johnson detailing the results of NAIC examinations of MONY's
financial statements. You also later received the December 2, 1998 letter from the Arizona Department of Insurance detailing
the non-audit related financial transactions between Coopers & Lybrand and MONY that ....... according to your own Enforcement
Office.... resulted in the loss of "Independence". You also have the April 21, 1994 letter from the Florida
Office of the Treasurer Bill Nelson to MONY Chairman Michael I. Roth detailing illegal investments and violations of over
1.3 billion dollars. You may find a copy of this letter on my http://www.monybush.com/ web site along with other information on the http://www.pwcsucks.com/ site.. I also confirmed with TSBPA Enforcement that MONY's
financial statements lack of the certification of an "Independent Auditor" will continue until they are
audited by someone other than PricewaterhouseCoopers LLP. MONY was taken public in 1998 by PricewaterhouseCoopers
LLP with the fraudulent financials and actuarial reports. Five years later PricewaterhouseCoopers LLP stood on both
side of the MONY/AXA sale that resulted in the comingling of assets that in turn caused AXA's financial statements
to be conflicted and lack the proper certification which would later cause the same problem with Protective Life's financials
and possibly the Japanese company that now owns Protective Life. I have noted that Paris-based AXA aims to raise billions
of dollars in the first half of next year by selling a minority stake in the combined life-insurance and asset-management
company in the U.S. Your failure to adhere to the most basic standards of
conduct as set forth by the AICPA and the TSBPA are astounding! You have knowingly sheltered what is possibly the longest
(35yrs) and largest accounting fraud in American history. Enron and Madoff ............ Please
tell me what you plan to do about this matter. I would like to tell my children what happened to their money. Office of the Treasurer
(now US Senator Bill Nelson)
Department of Insurance
State of Florida
April 21, 1994
Mr. Michael Isor Roth, President,
Chairman of the Board and CEO
The Mutual Life
Insurance Company of New York
1740 Broadway New York, NY 10019
Dear Mr. Roth:
Based upon a review
of Mutual Life Insurance Company of New York's 1993 Annual Statement, it appears that the company is in non-compliance with
the following Florida Statutes:
1. Pursuant to Section 625.333(2)(a), Florida Statutes, an insurer's limitation
in real estate for investment purposes (including joint ventures and participations) is 5% of admitted assets. The company's
investment of $1,636,633,686, which included joint ventures, exceeds the company's limitation of $484,879,721 by $1,151,753,965,
which is therefore non-admitted.
2. Pursuant to Section 625.031(2), Florida Statutes, loans to officers and directors
are not allowed. Therefore, the company's loans of $75,382, General Interrogatories, item 17b., is non-admitted.
3. Pursuant to Section 625.305(4)(d), Florida Statutes, the company's limitation in bond obligations which have been given
a rating of 6 by the Securities Valuation Office (SVO) of the NAIC is 1/2% of the insurer's admitted assets. The company's
investment of $62,281,579 exceeds the company's limitation of $48,487,972 by $13,793,607.
4. Pursuant to Section
625.327(3)(a), Florida Statutes, an insurer's limitation in a mortgage loan (other than mortgages on dwellings not intended
for occupancy by not more than four families, if it is Insured up to 95%) shall not exceed 75% of the value of the property.
Schedule B-Part 2-Sections 1A and 1B reports 44 mortgages which exceed the loan to value limitation by an aggregate amount
of $37,426,073, which is non-admitted.
5. Section 625.141(2), Florida Statutes, requires methods valuing bonds
to be consistent with the method formulated or approved by the National Association of Insurance Commissioners (NAIC) or its
successor organization, and as set forth in the latest edition of its publication "Valuation of Securities." The
company has reported bonds acquired prior to 1993 in the aggregate amount of $14,227,655 with a designation of "Z"
which indicates an obligation with a designation not such bonds is a standard industry practice and is required in Florida
under Rule 4-137.001(4), F.A.C. These bonds have been non-admitted. Provide to the Department evidence of submission to the
NAIC Securities Valuation Office of all bonds designated as Z.
6. Pursuant to Section 625.031(6), Florida Statutes,
an insurer may not allow as assets, securities which are in default. The company's investment of $31,004,423 in mortgages
of which interest is overdue more than 1 year, per Item 2(a), Notes to Financial Statements, is non-admitted.
7.
Pursuant to Section 624.408(4), Florida Statutes, the company's required policyholder surplus is $100,000,000. The company's
adjusted surplus after non-admitting the amounts in items 1 through 6 above is negative $648,106,483, which is deficient of
the above stated requirement by $748,106,483.
A summary of surplus as to policyholders is as follows:
Reported
Surplus: $600,174,622
Less Adjustments:
Item
1-Investment Real Estate:
Section 625.333(2)(a) -1,151,753,965
Item
2-Loans to Officers & Directors:
Section 625.031(2) -75,382
tem 3-Investment in Bonds Rated 6:
Section 625.305(4)(d) -13,793,607
Item 4-Investment in Mortgages:
Section 625.327(3)(a) -37,426,073
Item 5-Investment Non-Designated Bonds:
Section 625.141(2) -14,227,655
Item 6-Investment in Mortgages in Default.
Section 625.031(6) -31,004,423
Adjusted Surplus: $-648,106,483
Less Required Surplus as to Policyholders: -100,000,000
Total Surplus Deficiency: $-748,106,483
Please provide to the Department within fifteen (15) days, the company's
plan to attain compliance with Florida Statutes. Failure to respond within a timely manner will result in administrative action
by the Department.
Your response may be forwarded to my attention.
Sincerely,
Leslie Blank
Financial Examiner
cc: John C. Woods, CFE, Financial Examiner / Analyst Supervisor
Subj: att: William J. McDonoughDate: 04/29/2003To: info@pcaobus.orgCC: CutlerS@sec.gov, CarlinW@sec.gov, RashkoverB@sec.gov, foia/pa@sec.govWilliam J. McDonough, ChairmanPublic Company
Accounting Oversight Board1666 K Street, NWWashington, DC 20006-2803Dear Mr. McDonough:As a 30+ year member of the insurance and securities industry I was pleased to see your appointment as Chair of the
PCAOB and applaud your willingness to accept the job of cleaning up the accounting industry. Restoring consumer confidence
in our markets and the folks that regulate it are a most important factor in restarting the economy.I would like to call your attention to a matter involving PricewaterhouseCoopers
and the fraudulent financial statements of MONY Group, Inc. and ask your help in obtaining information that the SEC has refused
under Freedom of Information. I am a former 19 yr employee that successfully sued MONY in the early 90s over my termination.
As a result of discovery in that case I became aware of serious criminal acts by MONY's Senior Officers and BoD members. I
obtained a copy of an N.A.I.C. examination of the company that revealed over $600,000,000 in illegal transactions on their
financial statements. I later obtained a copy of an investigation by the Florida Department of Insurance that revealed a $1.3
billion discrepancy in the surplus account. I also obtained a copy of the "Secret Phantom Stock Plan" that paid
10s of millions of dollars to officers of the company as a result of the false claims on the financial statements. Those false
statements were also used to illustrate dividends on the ponzi contracts that were sold to the public as "investment
grade" life insurance contracts.According
to the sworn affidavit of "Bush Team" endorsed CPA, R. Larry Johnson, MONY first started cooking their books in
1982. Coopers & Lybrand / PricewaterhouseCoopers has issued unqualified opinions falsely claiming to be independent on
financial statements with hundreds of millions of dollars in illegal transactions. MONY's Chairman, Michael I. Roth, is a
former Coopers & Lybrand partner. Mr. Johnson, whose affidavit is available on the http://www.PWCSUCKS.com/ site, was unaware of the Florida Department of Insurance
letter to Mr. Roth at the time of his affidavit and did not know of the outside financial dealings between MONY and Coopers
& Lybrand that violated the auditor independence rules.Prior to MONY's IPO in November of 1998 the SEC first confirmed (Joseph Dimaria) that MONY had filed fraudulent financial
statements with the SEC and then denied that they ever filed any statements with the SEC (Carmen J. Lawrence). MONY has filed
with the SEC since at least the early 70s! You may read the SEC letters on the http://www.MONYINTERNATIONAL.com/ site along with the WSJ article that was written after MONY's
IPO. The SEC claimed they were investigating MONY and couldn't talk about it. Three years later they admitted that there had
never been an investigation and now refuses to answer FOI requests.Attached below are copies of a couple of FOI requests that the SEC has refused to answer. Can you help me obtain
these documents along with a copy of an accurate financial statement that contains the opinion of an independent accountant?Your help will be greatly appreciated. Please do not hesitate
to contact me at 817 267-2020 if you have any questions or need documentation.Respectfully,R. Dale
Abshire3308 Pin Oak Ln.Bedford, Texas 76021
During 1998 I provided you, Paul Gavia and AICPA
President and CEO Barry Melancon information concerning the lack of independence by Coopers & Lybrand / PricewaterhouseCoopers
LLP on the financial statements of the Mutual Life Insurance Company of New York, commonly and hereafter referred to
as MONY. I also provided the sworn affidavit of CPA R. Larry Johnson detailing the results of NAIC examinations of MONY's
financial statements. You also later received the December 2, 1998 letter from the Arizona Department of Insurance detailing
the non-audit related financial transactions between Coopers & Lybrand and MONY that ....... according to your own Enforcement
Office.... resulted in the loss of "Independence". You also have the April 21, 1994 letter from the Florida Office of the Treasurer Bill Nelson to MONY Chairman
Michael I. Roth detailing illegal investments and violations of over 1.3 billion dollars. You may find a copy of this
letter on my www.MONYBUSH.com web site along with other information on the www.pwcsucks.com site.. I also confirmed with TSBPA Enforcement that MONY's financial statements lack of the certification of
an "Independent Auditor" will continue until they are audited by someone other than PricewaterhouseCoopers
LLP. MONY was taken
public in 1998 by PricewaterhouseCoopers LLP with the fraudulent financials and actuarial reports. Five years later
PricewaterhouseCoopers LLP stood on both side of the MONY/AXA sale that resulted in the comingling of assets that in
turn caused AXA's financial statements to be conflicted and lack the proper certification which would later cause
the same problem with Protective Life's financials and possibly the Japanese company that now owns Protective Life. I have noted that Paris-based AXA aims to raise billions
of dollars in the first half of next year by selling a minority stake in the combined life-insurance and asset-management
company in the U.S. Your
failure to adhere to the most basic standards of conduct as set forth by the AICPA and the TSBPA are astounding! You
have knowingly sheltered what is possibly the longest (35yrs) and largest accounting fraud in American history. Enron
and Madoff ............ Please
tell me what you plan to do about this matter. I would like to tell my children what happened to their money. Respectfully R. Dale Abshire 2606 Twelve Oaks Colleyville, TX 76034 content here
Enter supporting content here
|
|
