The Mutual Life Insurance Company of New York, commonly and hereafter referred to as MONY, was founded in 1843 and recognized as the oldest mutual life insurance company in America. From its inception, MONY was a mutual company, owned by its policyholders and run for their benefit with dividends paid to policyholders. MONY's principal regulator was the New York Department of Insurance.  In 1970 MONY established an investment fund, MONY Fund, which required additional reporting to the Securities and Exchange Commission.

I was employed by MONY from September 01, 1971, thru February 01, 1991, as a Field Underwriter in the Dallas and Richardson Texas Agencies, as a sales manager in the Fort Worth agency in 1982, and as Agency Manager from January of 1986 until February 01, 1991.  From 1982 thru 1990 my duties included the recruiting and training of new Field Underwriters to market MONY life & health insurance products along with securities registered through the Securities and Exchange Commission. I also marketed the products as a dual capacity employee of MONY and a Registered Representative of MONY Securities Corp.

In 1983 Governor Mario Cuomo appointed MONY's former assistant general counsel James P. Corcoran as Superintendent of the New York Department of Insurance.  At the same time, MONY's board of directors led by Vinson & Elkins managing partner, A. Frank Smith Jr., went outside to hire James Attwood as its new Chairman.

MONY introduced a series of new products designed for retirement and high increasing death benefits based upon dividends that the company's actuaries ( Jesse M. Swartz and Rich Tucker ) claimed were conservatively illustrated at a 7 to 7.5% return on the company's invested assets. The products were used in many different ways to illustrate educational savings plans, guaranteed retirement funding, pension maximization, and elimination of the survivorship benefit for members of the military as well as replacement of IRA accounts. These policies were widely marketed as sound "investment grade" life insurance contracts accompanied by an array of the company furnished sales literature and materials claiming dividend histories that exceeded 155% of illustrated dividends. These products and sales materials were approved by Superintendent Corcoran and the New York Department of Insurance.

During the early 1980s, MONY sustained heavy financial losses as the result of a failed attempt at expansion into the financial services industry. In an effort to recoup the losses, MONY's management team concocted a number of schemes to circumvent state insurance laws and adopted a "shoot it all" attitude with policyholder's funds. Those laws were designed to protect policyholders by limiting investments in risky investments such as real estate and junk bonds. Management also introduced ill-conceived insurance products designed to provide immediate cash flow to the company while encouraging current policyholders to roll their existing policies into the new "investment grade" contracts that would yield greater future dividends. This allowed for the shifting of current dividend obligations to later years. These "investment grade" life insurance policies were a "PONZI" scam approved by the New York Department of Insurance and Superintendent Corcoran.

Simply put, the products were a PONZI, and the literature used to defraud the public was false. The dividends had been illustrated based on 11 to 12% return on assets with inflated values as well as nonexistent assets. The company's financial statements were fraudulent, the company was insolvent and had no way of paying the dividends that had been illustrated. At least one million Americans were the victims of this fraud which is ongoing and worsens over time.

Effective February 1, 1991, MONY terminated my contract without cause. As a result of discovery in the ensuing litigation, which was settled to my satisfaction on the eve of trial in 1993, I became concerned for the safety of my pension and investments held by MONY.  In an effort to assuage those concerns I obtained additional documentation from the New York Department of Insurance and agreed to work as a case consultant on several suits against MONY by other employees and policyholders that helped me secure additional information concerning serious criminal activity and massive fraud on the public. The 1991 NAIC examination of the company (released in 1993) revealed more than $600,000,000 in illegal transactions. You may recall that during the Florida election trials the "Bush Team" named one of America's foremost accountants, Mr. R. Larry Johnson CPA, to testify as an expert witness. Coincidentally, Mr. Johnson had previously been called upon in 1995 to render an opinion on MONY's financial statements and review the N.A.I.C. examinations of the company.  His sworn affidavit is posted at http://pwcsucks.com/id7.html for your review. It should be noted that he did not know that Coopers & Lybrand had been violating the auditor independence rules by selling financial instruments to the company on the side while issuing false opinion letters certifying MONY's financial statements that contained 100s of millions of dollars in fraudulent transactions nor was he aware of the Florida Department of Insurance investigation by Bill Nelson (who soon thereafter became U.S. Senator) that revealed more than a billion-dollar surplus shortage on the statements filed in Florida.  The Florida letter to MONY's Chairman, Michael I. Roth is posted @http://www.MONYBUSH.com/. Mr. Roth who signed MONY's fraudulent financial statements is a former Coopers and Lybrand partner and is currently Chairman of the Interpublic Group of Companies Inc. 
 

During the early '90s, I became aware of a secret "Phantom Stock Plan" for officers of the company that was not disclosed on the financial statements. The plan provided payments from profits on a rolling 3-year profit target. There were never any profits.... but they took millions anyway!  I also learned that the Schedule G filings to the state of New York had been intentionally falsified to hide millions of dollars in compensation paid to individuals and to cover up a multimillion-dollar money-laundering scam in the Los Angeles agency during 1991. An officer of the company admitted in March of 1995 that the scam was for a "War Chest" and that the President of the company, Samuel J. Foti, had given the order to "take" the money. I also learned that Mr. Foti had falsified his credentials upon his arrival at MONY and that he did not have a degree from Oxford nor did he have an MBA from the Wharton School of Business as published in the company newspaper. 

In late 1994 I obtained a copy of the 1992 audit of the company by the New York, Georgia, Oklahoma, and Nevada Departments of Insurance which was done in accordance with N.A.I.C. guidelines. The audit, which revealed hundreds of millions of dollars in illegal transactions and erroneous accounting practices, made no mention of the Secret Phantom Stock Plan and the millions of dollars that had been "looted" from the company as a result of the illegal activities. The New York Department of Insurance (Paul F. Altruda) first denied any knowledge of the Phantom Stock Plan and denied having any documents relating to the plan. Mr. William Tardogno of the New York Department of Insurance later admitted that the examiners had audited the plan and that it was a "sweetheart deal" for the officers and involved lots of money. He also confirmed that MONY's financial statements were definitely false and that they had not filed proper amendments as required. The New York Department of Insurance then granted "Trade Secret" status to the Phantom Stock Plan and refused to produce any information.  I later tricked V&E into giving the plan up in another case.