The purpose of this website is to educate and empower Four Star’s investors. The site has been created as a resource and communication tool that will enable the sharing and reviewing of information.

The legal documents posted here are publicly available as court records. Documents are published as PDF files, and require the free Adobe Acrobat Reader to read. Click here to download the free Adobe Acrobat Reader.

Four Star is a complex case. To help victims fully understand its intricacies and to stay informed, it is hoped that a centralized place with access to relevant information will allow investors to uncover the truth.

Please keep checking back for updates.

If you have any information such as documents, tips or leads that might help in the investigation of Four Star, please contact info@fourstarfraud.com.

News

July 08, 2008

According to court papers, federal prosecutors have filed charges against Ronald I. Anson and Jack E. Garrett accusing the Four Star executives of participating in an illegal hotel partnership tax scheme.

Court records filed in May show prosecutors charging Anson with “conspiracy to defraud the United States” in an alleged scheme that resulted in a tax loss to the U.S. Treasury of approximately $9 million. The U.S. Attorney’s Office accused Garrett of “aiding and assisting preparation of false tax return.” In its filing, federal prosecutors asserted that the total amount of government tax loss from Garrett’s “preparation and signing of these false returns is $357,906.”

Both Anson and Garrett initially pleaded not guilty to the government allegations, but recent court filings indicate the two Four Star executives may be in the process of changing those pleas to guilty.

In addition to serving as Four Star executives, Anson and Garrett were both certified public accountants.

Prosecutors filed the charges in U.S. District Court for the Central District California. To read the charges against Anson, please click here. To read the charges against Garrett, please click here.

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June 12, 2008

The sentencing date for Four Star executive Mark F. Cohn has been moved again. It's now scheduled for September 22 at 10 am before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.

Reasons for the postponement were spelled out in newly filed court papers. Here’s an extended excerpt:

“… (rescheduled) to permit the parties to fully review recently obtained trial transcripts, trial exhibits, and financial records, to determine whether to object to the Pre-Sentence Report (“PSR”). The parties anticipate that the additional time will permit the parties to limit issues for the Court’s determination, including related-conduct issues of first impression.

In the period since the Court granted the first continuance, the government has obtained hundreds of pages amounting to a partial transcript of defendant’s 20-day Maryland trial, plus trial exhibits. In addition, an IRS Special Agent has recently completed a weeks-long analysis of financial records. Defense counsel and government counsel met with the agent on June 6, 2008 and identified further possible financial analyses, which may necessitate obtaining additional exhibits from the Maryland trial.”

For more information, please contact:
Evan J. Davis, AUSA
phone: (213) 894-4850
email: Evan.Davis@usdoj.gov

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March 30, 2008

Government prosecutors have requested and been granted another postponement in the sentencing of Four Star Executive Mark F. Cohn. According to papers filed in Los Angeles U.S. District Court, the government sought a delay on the heels of concern about a pre-sentence report for Cohn. Here’s an excerpt from the court filing:

“.. the sentencing of defendant be moved from May 12, 2008 to July 21, 2008, to permit the government sufficient time to gather evidence to determine whether to object to the Pre-Sentence Report (“PSR”).

Government counsel has a week-long trial scheduled to begin on March 25, 2008, and an oral argument before the Ninth Circuit on April 8,2008. Given the press of these matters and the difficulty in obtaining required information with which to evaluate the PSR, the government is requesting additional time in which to file objections to the PSR. In so doing, to allow parties the full time allowed in which to file sentencing positions, the parties are also requesting that defendant’s sentencing date be moved.”

The new date for sentencing Cohn on fraud and conspiracy charges stemming from the Four Star Ponzi case will now take place July 21, 2008 at 10 am before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.

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March 22, 2008

Newly filed court documents show that the bankruptcy Trustee for Jack Garrett recently sold the Four Star President’s Calabasas, California home for $1,255,000. The proceeds will be divided among creditors of Garrett’s. Since 2004, Garrett has claimed residency in Boca Raton, Florida.

In other developments, the bankruptcy Trustee for Four Star has filed a motion seeking “partial summary judgment” against Four Star insider David Roberts. The Trustee alleges that “intentionally fraudulent transfers” (payments)from Four Star to Roberts totaling $12.9 million dollars were made between 2000 and 2002. The Trustee is seeking full recovery of the $12.9 million. A hearing has been scheduled to consider the motion on April 30th.

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March 05, 2008

Newly filed papers in federal court show that government prosecutors intend to call Four Star executive Mark Cohn as a witness in the wiretapping trial of Los Angeles private investigator Anthony Pellicano. To read the court filing (posted on the Smoking Gun website), please click here.

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February 14, 2008

According to newly filed court papers, the sentencing of Four Star executive Mark Cohn has been postponed until May. The sentencing (which had been scheduled for March 17th) will now take place at 10 a.m. on May 12th before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.

The Four Star executive entered a guilty plea to fraud and conspiracy charges in late 2007. He faces up to ten years in federal prison for his role in the Four Star case.

According to papers filed in U.S. District Court-Central District California, the government and Cohn agreed to postpone the sentencing "... until after the government has resolved how to proceed with other targets in this action, which resolution should occur by April 2008."

Cohn remains under “supervised release” in Arizona after serving a four year prison term on a separate conviction of telemarketing fraud.

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December 03, 2007

According to newly filed court records, a federal judge has agreed to postpone the sentencing of Mark F. Cohn until March 17, 2008. Originally, Cohn’s sentencing was scheduled for January 28, 2008.

The postponement comes after Cohn’s attorney filed a motion stating, “…(Cohn) has had difficulty obtaining and requires additional time in which to obtain documents relevant to his sentencing from the Federal Bureau of prisons and various medical professionals … “

Medical issues were a point of controversy in 2004 during Cohn’s last criminal sentencing. In January 2004, Cohn was sentenced to more than four years imprisonment after being convicted of telemarketing fraud and money laundering.

To learn more about Cohn's 2004 sentencing (including the dispute over his medical issues), please click here to read a court transcript of the 2004 sentence proceeding.

Cohn’s current sentencing on conspiracy and wire fraud charges, stemming from the Four Star Ponzi case, will now take place on March 17, 2008 at 10 a.m. before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.

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November 19, 2007

According to a letter recently written and sent by the U.S. Attorney’s Office in Los Angeles to investors in the Four Star case, prosecutors plan to request that the federal court impose a victim “restitution obligation” of $19 million as part of the judgment against Four Star executive Mark F. Cohn. Cohn recently pleaded guilty to criminal charges of conspiracy and wire fraud. He faces up to ten years in prison.

However, according to the letter, the $19 million in restitution will be limited to the approximately 100 victims who invested in the so-called “arbitrage” deals. Even so, the letter goes on to say that the U.S. Attorney doubts the government can collect on the $19 million because of numerous existing civil judgments against Cohn.

The U.S. Attorney letter states that victims of Four Star interested in expressing their feelings to the federal court about the sentencing of Mark F. Cohn (which is scheduled for March 17, 2008) can submit correspondence to the following contact and address:

Elizabeth Morony
U.S. Probation Officer
600 U.S. Courthouse
312 North Spring Street
Los Angeles, CA 90012

To read the U.S. Attorney’s full letter, please click here.

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November 07, 2007

According to newly filed papers in federal court, Four Star executive Mark Cohn has pleaded guilty to fraud and conspiracy charges. Cohn had previously entered a not guilty plea to criminal charges filed against him by the U.S. Attorney's Office. Cohn faces up to ten years in prison and will be sentenced on January 28, 2008 at 10 a.m. before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.

To read the change of plea filing, please click here.

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November 05, 2007

According to papers filed in federal court, the trial date for Four Star executive Mark Cohn has been scheduled for December 18, 2007 at 9:00 am, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles. Cohn's trial will be presided over by Judge Philip S. Gutierrez. Cohn faces charges of conspiracy and fraud. According to court papers, Cohn has pleaded not guilty.

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October 17, 2007

A copy of the criminal charges filed in federal court by the U.S. Attorney against Four Star executive Mark Cohn is now posted on this web site. Cohn is accused of conspiracy and wire fraud in the Four Star case, and faces a possible 10-year prison term if convicted. He's scheduled to appear in a Los Angeles courtroom on October 22nd to hear the criminal charges against him. To read the U.S. Attorney’s court filing, please click here.

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October 04, 2007

Federal authorities have charged Four Star executive Mark F. Cohn with conspiracy and wire fraud in the alleged Four Star Ponzi scheme.

According to a press release issued by the U.S. Attorney's Office Central District California, authorities filed criminal charges against Cohn on Monday in U.S. District Court Los Angeles. The release states Cohn is accused of "a scheme in which Cohn and his co-conspirators raised approximately $45 million from investors in Cohn's company, Four Star Financial Services. According to the information, victim-investors were told their money would be placed in 'telephone arbitrage' investments, when in fact Cohn knew that none of the funds would be used for that purpose. If convicted of the two charges, Cohn faces a maximum statutory penalty of 10 years in federal prison."

To read the Department of Justice press release, please click here.

In news interviews following announcement of the charges against Cohn, Assistant U.S. Attorney Evan Davis made the following comments about the Four Star case and its many victims:

"This case may not make whole the scores of victims who have been devastated by this fraud, but should reassure them and the public that the government will relentlessly pursue and bring fraudsters to account.”

"This case reinforces that fraud doesn't pay. Through the tireless efforts of FBI and IRS agents, the government is working to bring some measure of justice to the many victims of this fraud."

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July 28, 2007

According to the federal Bureau of Prisons website:

- On July 24th, authorities transferred Four Star executive Mark Cohn to Phoenix, Arizona where he’s now being supervised by a community corrections program. Cohn had been housed at The Federal Correctional Institution Terminal Island (San Pedro), California. In 2003, Cohn was convicted of telemarketing fraud and sentenced to nearly five years imprisonment. The Four Star executive's release date had originally been projected for January 18, 2008. Cohn has family in Arizona. His brother is a business partner and manager of a hotel in downtown Phoenix.

According to state and federal court records:

- Jack Garrett’s bankruptcy Trustee plans to put the Four Star President's California home up for sale later this year. The Trustee cut a deal with one of Garrett’s largest creditors – BizNiz, LLC – to divide the proceeds.

- The San Diego home of Four Star CFO Ronald Anson was foreclosed on and sold recently by Comerica bank. Comerica was Anson's mortgage lender. Anson’s bankruptcy estate abandoned a financial claim on the home because of numerous outstanding creditor liens on the property.

- Four Star President Jack Garrett and his wife recently settled with Garrett's bankruptcy Trustee over fraudulent avoidance claims asserted by the Trustee against the couple. Garrett and his wife agreed to pay more than $700,000 in the settlement.

- Anson and the Trustee in his bankruptcy case have ended a dispute over release of tax records of the Four Star CFO. Under a deal, an accountant hired by the Trustee will be allowed to review previously undisclosed tax records of Anson's.

- Several key defendants in the Four Star investor class action case have settled claims against them. Former Four Star exec Steven Wade and several banks caught up in the Four Star case reached a $2 million settlement with investor plaintiffs. However several members of the class action are objecting to the settlement deal. A “fairness” hearing to consider arguments has been scheduled October 12th.

- Four Star business partner and insider Robert H. Lipp of Georgina Asset Management reached a settlement agreement over claims against him in the investor class action case. Lipp has agreed to pay $155,000 to class members. Separately, Lipp also reached a settlement deal with several former clients (so-called "privity" plaintiffs Jeffrey Simon and Stuart Simon) over Four Star claims. The amount of the settlement was not disclosed in court papers.

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May 20, 2007

Newly filed court papers by the Trustee in the bankruptcy case of Ronald Anson show the Four Star Chief Financial Officer failed once again to appear at a scheduled creditor's hearing. The filing by Trustee Heide Kurtz states that Anson was a "no show" and failed to produce requested tax records at the May 10th 341(a) meeting of creditors. Trustee Kurtz has re-scheduled the meeting for July 3rd in Los Angeles. This is the second time since April that Anson has not appeared at his scheduled meeting of creditors and produced tax records sought by Trustee Kurtz. In recent court filings, Anson has stated that he remains under investigation by the U.S. Attorney's Office over alleged tax violations. In April, Anson's attorney notified the bankruptcy court that the former Four Star CFO intended to invoke his Fifth Amendment right against disclosure of some tax records.

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May 12, 2007

According to recently filed papers in Los Angeles Superior Court, investor plaintiffs in the Four Star class action have formalized a settlement agreement in their complaint against several bank defendants, and Four Star Vice-President Steven Wade. The amount of the settlement is $2 million.

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April 27, 2007

According to a notice filed by the Trustee in Ronald Anson’s bankruptcy case, the former Four Star principal failed to appear and produce tax documents at a meeting of creditor’s scheduled on April 11th. Trustee Heide Kurtz has now rescheduled the 341(a) Creditors meeting for May 10th. Kurtz’s filing states that if Anson does not produce tax records by the scheduled May meeting a motion will be filed to block Anson from seeking protection from creditors through bankruptcy. Anson recently filed an objection to release of tax returns in his bankruptcy case. Anson's attorney notified the bankruptcy court that the former Four Star CFO intends to invoke his Fifth Amendment right against disclosure of certain tax records.

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April 13, 2007

Ronald Anson has filed legal papers objecting to release of tax returns in his bankruptcy case.

Anson’s motion comes as bankruptcy Trustee Heide Kurtz is seeking to hire an accountant to review and analyze the former Four Star CFO’s tax records. Anson’s motion reads:

"Debtor (Anson) objects to Trustee’s acquisition of his tax returns through the office of Menchaca on privacy and confidentiality grounds … and additionally asserts his Fifth-Amendment Privilege against self-incrimination against disclosure of the returns and the information contained therein. If the Court allows the Trustee and Menchaca to obtain the tax returns, the Debtor requests that the Court restrict disclosure of the returns and the information contained therein to Trustee and Menchaca and further requests that the Court prohibit the Trustee and Menchaca from disseminating the returns and any information contained therein to any creditors or third parties absent further Court order based upon prior notice to the Debtor and an opportunity to be heard...

“The United States attorney’s office continues to investigate his (Anson's) financial affairs related to alleged tax violations and possible gambling activities related to information which may possibly exist on his computers in the possession of the U.S. Marshall (sic). Additionally, the Debtor faces possible criminal contempt charges. The information contained in the Debtor’s tax returns may be privileged from compelled disclosure under the Fifth Amendment.”

Anson has requested a hearing to consider his motion. No date has been scheduled yet.

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April 10, 2007

Attorneys and accountants for Four Star bankruptcy Trustee Richard Marshack have submitted requests with the court for expense reimbursements totaling more than $3 million for services related to the Four Star case. The applications for compensation include status reports updating recovery actions in the Four Star matter. The filings state that Trustee accountants determined Four Star was operating a Ponzi scheme and that “ investors funneled in more than $218 million to Debtor (Four Star) from January 1997 through October 2003 and that investor losses exceed $61 million.” To read more, please click here.

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April 04, 2007

- In newly filed court documents, the Trustee for the Four Star Financial Services bankruptcy Estate reports $5,296,856.37 of funds on hand. The money represents funds collected through settlement and lawsuit efforts by the Trustee.

- Attorneys for the Trustee in Jack Garrett’s bankruptcy have filed a lawsuit against the Los Angeles law firm of Bird, Marella, Boxer, Wolpert, Nessim, Drooks & Lincenberg. The complaint seeks recovery of funds “in the hundreds of thousands of dollars” that Garrett allegedly transferred to the law firm. The Trustee alleges some of the transfers were “preferential” and therefore, under bankruptcy rules, belong to the Garrett bankruptcy Estate. The Bird, Marella, Boxer, et al. law firm has represented both Jack Garrett and Ronald Anson as counsel in criminal and civil matters related to Four Star.

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March 17, 2007

According to legal papers, Four Star insider and business partner Robert H. Lipp of Georgina Asset Management (a Securities and Exchange Commission registered investment adviser) recently settled with plaintiffs in two lawsuits related to the Four Star case.

Los Angeles Superior Court records show Lipp and his Santa Monica based firm settled for an undisclosed sum of money in a complaint (Ferrara v. Lipp/GAM, Los Angeles Superior Court, Case No. BC 304180) filed against him in late 2003 by several former clients. The suit accused Lipp of fraud, deceit, negligence, and breach of fiduciary duty for his role in the alleged Four Star Ponzi. Court records show the Ferrara case settled last September.

The complaint alleged Lipp defrauded his clients of more than $11 million. Court Exhibits cited in the lawsuit included an email that allegedly showed Four Star Chief Financial Officer Ronald I. Anson and Lipp “setting aside” more than half a million dollars of “incoming” Georgina Asset client funds as “payback” to another Four Star investor.

Plaintiffs asserted the email (as well as other internal Four Star emails and company documents submitted as Court Exhibits) offered evidence of Lipp’s involvement in the alleged Four Star fraud. According to the complaint, Plaintiffs further alleged Lipp: falsely represented Four Star as highly safe and not presenting any risk to investment principal; failed to disclose and actively concealed from Plaintiffs Four Star's criminal activities; negotiated and signed secret incentive contracts with Four Star in which he agreed to use “best efforts” and “super best efforts” to raise millions of dollars selling Four Star securities in exchange for secretly earning huge commissions and other compensation.

In court filings, attorneys for Lipp have denied any wrongdoing by their client and describe Lipp himself as a victim of the alleged Four Star fraud.

Court papers from November of 2005 in the Ferrara matter show Lipp and his firm Georgina Asset Management under investigation by the Los Angeles U.S. Attorney’s Office in connection with the Four Star case. Lipp, in turn, has sought the help of someone who knows that office intimately -- he hired a defense attorney who briefly served as the U.S. Attorney for the Central District of California Los Angeles and who also formerly served as Chief of the Criminal Division for that office.

Also, recently filed papers in federal court show Lipp settling with the Four Star Bankruptcy Trustee for $125,000. The Trustee had filed suit in late 2005 accusing the Four Star insider of earning more than $600,000 in “commissions” or “finders fees” and “preference payments” in furtherance of the alleged Four Star Ponzi -- a charge rejected by an attorney for Lipp in legal papers.

Lipp remains a named defendant in a class action lawsuit (Gilbert et al. v. Cohn, Anson, Garrett, Cato, Lipp/GAM, et al., Los Angeles Superior Court, Case No. BC 310846) filed by Four Star investors. The class action complaint included the following allegations:

"Defendant Robert Lipp ("Lipp"), a registered investment adviser, conspired with Anson, Garrett and Cohn to defraud Plaintiffs. Lipp boasted to Plaintiffs that he was 'intimately' involved in Four Star and that he would eventually be named President of Four Star. Despite holding himself out as an independent investment adviser, Lipp operated out of Four Star's offices and claimed to spend half of every day working on Four Star business. Lipp solicited funds for Four Star with full knowledge of the fraud in order to prop up the enterprise. In return, Lipp received kickbacks and commissions from Four Star on the funds he solicited. Lipp also assisted Defendants in maintaining the appearance of normalcy at Four Star, by, for instance, untruthfully telling Plaintiffs in 2002 that 'things are going great with the company, things could not be better.' Lipp also executed the Ponzi scheme by ordering incoming capital from Plaintiffs to be converted into payments to other, unknowing members and note-holders of Four Star. Lipp knew that Four Star was not profitable and needed continued infusions of capital to stay 'alive', i.e. to stay current on its obligations to investors."

In a court filing in July of 2005, Lipp denied any wrongdoing in the investor class action case.

Lipp was the target of another Four Star related lawsuit filed by a former client (Los Angeles entertainment attorney Donald Passman) in May of 2003. According to L.A. Superior Court records that case settled in May of 2005.

For more filings by plaintiffs, please click here.

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March 14, 2007

Recent legal filings in federal bankruptcy court related to the Four Star matter include the following updates:

- The Trustee for the Four Star Bankruptcy issued a report updating the status of lawsuits filed to recover funds. To read, please click here.

- The Four Star Trustee reported an account balance of $3.4 million representing funds recovered through a number of adversarial proceedings and settlements.

- Federal Bankruptcy Judge Thomas Donovan denied a motion by former Four Star principal Jack Garrett to have his bankruptcy case discharged. The ruling allows the Trustee in Garrett’s bankruptcy to continue legal efforts at recovering assets (including homes in California and Florida) of the former Four Star principal.

- A hearing to resolve a dispute between Credit Suisse First Boston and former Four Star principal Ronald Anson has been postponed until May 2007. Anson is challenging efforts by the banking giant to sell items it seized at his home as part of an effort to collect on a $16 million judgment obtained against him. Anson is also challenging Credit Suisse’s access to financial information contained on five computers seized in the collection effort.

- Anson asserted his Fifth Amendment right against self-incrimination at a meeting of creditors earlier this year. Anson took the Fifth over questions related to alleged gambling activities and his tax returns. According to papers filed by an attorney for the Trustee in Anson’s bankruptcy case, Anson has yet to produce tax returns for 2003, 2004 and 2005.

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Federal and state court records contain numerous cases involving alleged shady and fraudulent business dealings of Four Star/900Capital managers and partners. Posted on the FourStarFraud.com website are Securities & Exchange Commission documents, news articles, and other court filings on convicted felon David Namer and Namer/900 Capital/Four Star related entities.

Namer was a Memphis financial advisor and one-time key business crony of Four Star/900 Capital.

In 2002, Namer was convicted on 93 counts of conspiracy, federal securities fraud, mail fraud, wire fraud, money laundering and tax evasion. He's now serving a 29-year prison sentence. Federal prosecutors charged Namer with engineering a $35 million scam that swindled unsuspecting investors around the country. The scheme involved the sale of bogus corporate securities related to Ray & Ross Transport and Tri-Star Financial Corporation – companies in which both Namer and 900 Capital/Four Star shared ownership interest.

For reasons that remain unanswered, federal authorities never criminally charged Four Star/900 Capital in the Namer scam. However, according to bankruptcy court records,in April of 2000 a Nevada federal judge determined that 900 Capital/Four Star helped facilitate and perpetrate Namer’s securities fraud in the Ray & Ross deal. The judge issued his ruling in a “Findings of Fact and Conclusions of Law” during an adversarial bankruptcy proceeding over Ray & Ross -- a proceeding in which a company named Sentinel Trust had filed suit against 900 Capital Services. The judge awarded a judgment in favor of Sentinel Trust and holders of the bogus securities. The judgment amount against 900 Capital/Four Star totaled more than $3 million.

Namer's relationship with Four Star/900 Capital is also detailed in an amended complaint of the Four Star investor class action plaintiffs.

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February 25, 2007

According to recently filed papers in federal bankruptcy court, former Four Star principal Ronald I. Anson is seeking to prevent one of his largest creditors from accessing and releasing information from several personal computers. The former Four Star principal claims the computers contain sensitive communications protected by attorney- client and privacy privileges.

Anson’s computers were seized at his home last year by the U.S. Marshal’s office after Credit Suisse First Boston Mortgage Capital was granted a court order to collect on a $16 million judgment it obtained against the former Four Star Chief Financial Officer. The dispute stems from a real estate loan the banking giant made to Anson and other Four Star principals.

The computer hard drives (containing more than 6,000 pages of documents) are being analyzed by a federal mediation judge. Credit Suisse recently struck an agreement (subject to court approval) with the Trustee in Anson’s bankruptcy case to proceed with selling personal property recovered at Anson’s home. The deal would also allow CSFB to proceed with obtaining and sharing data with the Trustee from five computers that were among the seized items.

In a brief to the court, Anson’s attorney wrote: “Debtor (Anson) has a valid Fifth-Amendment privilege against disclosure of the information on his computers. The United States attorney’s office continues to investigate his financial affairs related to alleged tax violations and possible gambling activities on said computers.”

Credit Suisse attorneys assert that they’re being protective of possible privileged information on Anson’s computers and point out they obtained the help of a mediation judge to review the computers to determine what information might in fact be privileged.

In a declaration filed with the court, CSFB attorney Peter Csato emphasized that the federal mediation judge’s work was put on hold after Anson filed for bankruptcy in August of 2006. CSFB now wants the court to allow the mediation judge to resume his review of the computers in order to establish Anson’s “assets and liabilities, the transfer of assets, business and financial transactions and gambling activities on said computers.”

Credit Suisse attorneys also maintain that Anson gave false testimony about his assets at a judgment debtor’s exam and cite an appraisers report valuing some of Anson’s art collection at up to $200,000. According to a hearing transcript, Anson had characterized the value of his art collection as "insignificant."

A hearing on the dispute between Credit Suisse and Anson has been scheduled for March 7th.

In other news, according to court filings the Trustee in Anson’s bankruptcy is seeking to abandon interest in Anson’s Del Mar California home. Trustee Heide Kurtz had planned to sell the home on behalf of Anson’s bankruptcy estate to help satisfy creditors. The expected sale price was more than $2.6 million.

But in a newly filed motion, the Trustee says the home is over encumbered by creditor liens and is therefore of "inconsequential value and benefit" to Anson’s bankruptcy estate. Court records show more than $30 million in creditor liens encumber Anson’s Del Mar property.

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February 18, 2007

Federal court records show that the wife of former Four Star principal Mark F. Cohn filed for personal bankruptcy in 2004. Susan F. Cohn (aka Susan Farkas) filed for Chapter 7 bankruptcy on August 3, 2004 in U.S. Bankruptcy Court Northern District of California (San Francisco Division, Case No: 04-32218 STC). Cohn’s Woodside, California home was sold in late 2004 to pay off creditors. According to court documents, the home sold for $2.56 million.

Both Four Star and Mark Cohn were convicted of telemarketing fraud in 2003. Cohn is now imprisoned at The Federal Correctional Institution Terminal Island (San Pedro), California. He had been housed at the Taft Correctional Institution near Bakersfield, California. The Bureau of Prison web site describes the Terminal Island facility as “low security.” Cohn’s projected release date is January 18, 2008.

According to bankruptcy court records, Cohn and other former Four Star executives remain the subject of an on-going criminal investigation by the U.S. Justice Department. Federal authorities are reportedly looking into possible tax violations as well as allegations that Four Star was a Ponzi scheme.

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February 11, 2007

According to court records, Four Star Bankruptcy Trustee Richard Marshack has hired special counsel to pursue litigation against a Four Star insider. The Trustee alleges David Roberts received fraudulent transfers of funds and earned commissions in excess of $13 million. According to the Trustee’s complaint: “David Roberts (“Roberts”) solicited and obtained investors on behalf of the Debtor (Four Star Financial Services) and Roberts knew or should have known that the Debtor was not a legitimate business, that the Debtor was operating a Ponzi-type scheme…”

In a recent filing, attorneys for Roberts denied allegations asserted by the Four Star Trustee.

The name of the Los Angeles law firm hired for the Roberts case by the Four Star Trustee is Frandzel, Robins, Bloom, and Csato.

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