of the Interpublic Group of Companies Inc. 
 

During the early 90's, 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 targets. 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. Beginning in 1995 I reported, as mandated by Article 1.10d of the Texas Insurance Code, suspected fraud in the business of insurance and asked for help for policyholders to the Texas Department of Insurance and to Governor George W. Bush concerning the fraudulent financial statements of MONY, the looting of the company and the PONZI insurance contracts that were used to defraud the public. Mr. Pete Wassdorf, who was General Counsel to Governor Bush and later to Texas AG Greg Abbott, responded on behalf of Governor Bush that they could not help because it would be inappropriate for the governor of Texas to contact the governor of New York and interfere with the operation of a New York domiciled company.

During the same time that I was seeking help from Texas, I contacted Walter Ricciardi in the general counsel's office at Coopers & Lybrand and provided him with documentation including the Johnson affidavit and asked him to help resolve the matter. He informed me that he had checked it out and it was "no problem" selling bonds and financial instruments to MONY while acting as the independent accountant.  Coopers & Lybrand was later merged with Pricewaterhouse. He would later be appointed Deputy Director of Enforcement for the Securities and Exchange Commission.

During 1997 I provided Mr. Joseph Dimaria of the Securities and Exchange Commission with documentation of the false financial statements and later got his admission that MONY had in fact filed false financial statements with the SEC. He then said that he could no longer talk to me and hung up. In 1998 I asked Arthur Levitt, Chairman of the Securities and Exchange Commission, to help policyholders get an accurate financial statement for the company prior to their being asked to vote on demutualization. I received a response from the Northeastern District Administrator, Carmen J. Lawrence, who informed me that MONY did not file financial statements with the SEC and that they could not help me. She was lying! MONY had filed financial statements with the SEC since the early 70's.  The SEC then allowed MONY to go forward with an Initial Public Offering in excess of a billion dollars.  Shortly after the IPO I gave the SEC letters to Michael Schroeder at the WSJ.  Soon afterwards I received a call from SEC attorney Dorothy Heyl wanting to help me resolve the matter and asked me to work with her on the SEC investigation. The SEC then refused to talk to the media because of the confidentiality of their investigation. Three years later Mr. Frank Henderson, FOIA/Privacy Branch Chief, at the SEC admitted that there had never been any investigation. Ms. Lawrence resigned and became Harvey Pitt's co-partner at Fried Frank Harris Schriver and Jacobson and assumed his practice when President Bush appointed him chairman of the SEC.

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 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.

of the Interpublic Group of Companies Inc. 
 

During the early 90's, 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 targets. 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. Beginning in 1995 I reported, as mandated by Article 1.10d of the Texas Insurance Code, suspected fraud in the business of insurance and asked for help for policyholders to the Texas Department of Insurance and to Governor George W. Bush concerning the fraudulent financial statements of MONY, the looting of the company and the PONZI insurance contracts that were used to defraud the public. Mr. Pete Wassdorf, who was General Counsel to Governor Bush and later to Texas AG Greg Abbott, responded on behalf of Governor Bush that they could not help because it would be inappropriate for the governor of Texas to contact the governor of New York and interfere with the operation of a New York domiciled company.

During the same time that I was seeking help from Texas, I contacted Walter Ricciardi in the general counsel's office at Coopers & Lybrand and provided him with documentation including the Johnson affidavit and asked him to help resolve the matter. He informed me that he had checked it out and it was "no problem" selling bonds and financial instruments to MONY while acting as the independent accountant.  Coopers & Lybrand was later merged with Pricewaterhouse. He would later be appointed Deputy Director of Enforcement for the Securities and Exchange Commission.

During 1997 I provided Mr. Joseph Dimaria of the Securities and Exchange Commission with documentation of the false financial statements and later got his admission that MONY had in fact filed false financial statements with the SEC. He then said that he could no longer talk to me and hung up. In 1998 I asked Arthur Levitt, Chairman of the Securities and Exchange Commission, to help policyholders get an accurate financial statement for the company prior to their being asked to vote on demutualization. I received a response from the Northeastern District Administrator, Carmen J. Lawrence, who informed me that MONY did not file financial statements with the SEC and that they could not help me. She was lying! MONY had filed financial statements with the SEC since the early 70's.  The SEC then allowed MONY to go forward with an Initial Public Offering in excess of a billion dollars.  Shortly after the IPO I gave the SEC letters to Michael Schroeder at the WSJ.  Soon afterwards I received a call from SEC attorney Dorothy Heyl wanting to help me resolve the matter and asked me to work with her on the SEC investigation. The SEC then refused to talk to the media because of the confidentiality of their investigation. Three years later Mr. Frank Henderson, FOIA/Privacy Branch Chief, at the SEC admitted that there had never been any investigation. Ms. Lawrence resigned and became Harvey Pitt's co-partner at Fried Frank Harris Schriver and Jacobson and assumed his practice when President Bush appointed him chairman of the SEC.

Prior to the demutualization of MONY I contacted a substantial number of elected officials and asked for their help in obtaining "an accurate, concise and properly opined financial statements, like the law says that I am entitled too for MONY. I also contacted the Dallas office of the FBI and provided then with the sworn affidavit of MONY employee Alexis Daniels detailing the use of company funds by officers for home theaters and stereo systems and falsified expense vouchers to steal from the company. They sent me a letter saying they had transferred the case to their New York office.

After Senator Phil Gramm's office proclaimed him to be "powerless" to cause anyone to produce an accurate financial statement for MONY I contacted Senator Kay

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 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.