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

November 20, 2008

According to newly filed court documents, the sentencing of Four Star executive Ronald I. Anson has been postponed to January of 2009. The new sentencing date and time: Monday January 26, 2009 at 11:00 a.m. before U.S. District Court Judge George H. King, Courtroom 650, Roybal Federal Building, 255 East Temple Street, Los Angeles.

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October 08, 2008

Four Star executive Ronald I. Anson is scheduled to be sentenced for his role in a tax evasion scheme on December 8, 2008 at 11 am before U.S. District Court Judge George H. King, Courtroom 650, Roybal Federal Building, 255 East Temple Street, Los Angeles.

Court records filed in May show federal prosecutors charged 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.

Anson recently pleaded guilty to the federal charges.

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September 30, 2008

Four Star executive Mark F. Cohn has been sentenced to five years probation and two years home detention for his role in defrauding investors in the multi-million dollar Four Star Ponzi scheme.

According to one news report, before being sentenced on Monday, Cohn told Los Angeles U.S. District Judge Philip Gutierrez: "I wish I could erase all the bad things I did. No amount of apologies can correct or take away the pain I caused others. I will work hard to pay back the victims I have harmed."

Cohn, who now resides in Arizona, was charged with conspiracy and wire fraud last October. He pleaded guilty to the charges and faced a maximum of 10 years in federal prison.

Several victims spoke at Monday's sentencing hearing, describing how Cohn had ruined their financial lives, and urged the Court to impose a ten year maximum sentence.

Instead, Judge Gutierrez gave Cohn five years probation, two years home detention and ordered him to perform 2,500 hours of community service. He was also ordered to attend mental health and substance abuse counseling, and pay $23 million in restitution to victims. However, prosecutors have acknowledged in court filings that in light of existing judgments against Cohn totaling at least $100 million, the Four Star executive is unlikely to "substantially" pay the restitution.

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September 23, 2008

According to newly filed court papers, the sentencing of Four Star executive Mark F. Cohn has now been rescheduled to Monday September 29th 10 am before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal Building, 255 E. Temple Street, Los Angeles.

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September 17, 2008

The September 22nd sentencing of Four Star executive Mark Cohn has been postponed -- possibly to Monday September 29th. The rescheduled date will be posted once it's finalized, so please keep checking back.

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September 04, 2008

According to newly filed court papers, the Los Angeles U.S. Attorney’s Office has reached a sentencing agreement with Mark F. Cohn that would preclude the Four Star executive from serving additional prison time for his role in the Four Star Ponzi. Instead, the sentencing agreement (if approved by the court) would require “home detention” for Cohn for a period of two years, as well as place the Four Star executive on five years probation. Cohn’s sentencing hearing is scheduled for September 22nd at 10 am in Los Angeles.

According to the sentencing recommendation, Four Star executives Jack Garrett and Ronald Anson have also pleaded guilty to federal felony charges stemming from a tax evasion scheme.

To read the sentencing agreement, please click here.

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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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