Corporate & Securities Law

Scott Farah, the president and founder of New Hampshire-based Financial Resources Mortgage, Inc. , recently plead guilty to fraud and was sentence to fifteen years in prison.

The SEC alleged that, beginning in 2005, Farah conducted what is believed to be the largest Ponzi scheme in New Hampshire history, defrauding some 250 investors out of $33 million.  Farah made false statements and mislead investors to believe that their money would be used for funding specific private mortgages when it in fact was used for numerous other undisclosed purposes, including to pay personal expenses and to make Ponzi payments to earlier investors.

Scott Farah was allegedly a registered representative of the broker-dealer Franklin Financial Services Corporation (now known as American General Equity Services Corporation) from March 1999 through October 2002.   From October 2002 through December 2002, Farah was a registered representative of American General Securities, Inc., a registered broker-dealer and investment advisor. 

Eccleston Law represents individual and institutional investors to recover their investment losses caused by securities and investment fraud. Our attorneys also help victims of Ponzi schemes pursue recovery by submitting claims with receiverships established by the SEC or by assisting victims with the filing of a Theft Loss Tax Deduction with the IRS.

If you have lost money investing with Scott Farah or in Financial Resources Mortgage, you may be eligible for an immediate theft loss tax deduction.  Under a new IRS safe harbor rule, you may be eligible for an immediate theft loss tax deduction of 95% of your losses, or 75% of your losses if you pursue third-party recovery. Please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000 for more details.