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Lottery winner indicted on 31 counts

Insider BuzzInsider Buzz: Lottery winner indicted on 31 counts
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Days after a Hampton Falls, New Hampshire, woman sought permission to subpoena Frederick "Rick" McMenimen's bank records, the former Exeter financial adviser sought Chapter 7 bankruptcy protection, court records show.

The bankruptcy claim essentially halted Susan Wagstaff's lawsuit seeking to recoup $900,000 that she claims McMenimen took from her under the ruse that he was investing the money.

It also stopped legal action connected to another $1.5 million civil judgment against McMenimen for duping his late uncle. The retired Revere public schools administrator bought death benefits that he later learned were worth much less than he was led to believe, according to court records.

He died before the case could be resolved.

Now at least one of those financial disputes — the one by Wagstaff — may be settled by federal prosecutors, who secured a 31-count indictment against McMenimen on charges of money laundering, tax evasion and interstate transportation of goods taken by fraud.

Prosecutors allege that McMenimen, who was arrested Oct. 4, used his reputation as a financial adviser to prey on at least two New Hampshire widows, taking more than $1 million from liquidated insurance annuities and life savings.

McMenimen allegedly put the stolen money into a bank account in Kittery, Maine, federal prosecutors said.

Federal prosecutors allege McMenimen's victims believed their money had been invested, and would provide high-yield returns.

A trustee in bankruptcy court is now asking a judge to issue a subpoena so McMenimen's bank records can be fully examined.

Public records say the money reaped from McMenimen's alleged fraud wasn't his first windfall.

McMenimen, a longtime Exeter High School hockey coach, won $1.4 million from the Tri-State Megabucks in 2005.

After claiming his jackpot, he told the New Hampshire Union Leader, he planned to "put the money in the bank."

"I own a financial planning firm, so I guess I know what to do with it," he added. "Save it."

But despite the jackpot, he continued to find himself in court over a variety of disputes from 2006 until early this year.

In September 2006, McMenimen filed a lawsuit seeking to dissolve a limited liability company that set out to help people sell merchandise online. McMenimen wanted to break free from the business, alleging that his partner "has used company funds to pay himself monies other than wages," according to a court petition.

The lawsuit was ultimately dropped after the partner filed a counterclaim alleging McMenimen decided to stop paying advertising and royalty fees, leaving a balance of $20,000 in unpaid expenses. McMenimen either "paid (the company's) bills late or not at all," his former partner claimed.

McMenimen and his wife also sought restraining orders against two women in November 2006 and March 2008.

The couple claimed that one of the women "has, over a period of time, exhibited an inappropriate attraction" to Frederick McMenimen. Days later, the McMenimens withdrew their request for the order.

In March 2008, Judge Tina Nadeau rejected McMenimen's request to issue a restraining order against a Newfields woman after hearing testimony and examining other evidence submitted in court.

Wagstaff's lawsuit was filed in Rockingham County Superior Court in January, and provided a glimpse of the federal investigation targeting McMenimen.

She said in a sworn affidavit that FBI and IRS agents arrived on her doorstep on Nov. 1 to question her about checks she wrote to McMenimen.

The agents showed her copies of her checks written to his defunct business, and discouraged her from telling McMenimen about their visit, according to court records.

"The agents then asked me not to call Rick after they left because it was a serious investigation," Wagstaff said in her affidavit. "I told them that Rick was as close as family to me and that I was going to call him after they left to ask him what was going on."

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27 comments. Last comment 2 years ago by NJJim.
Page 1 of 2

United States
Member #111446
May 25, 2011
6323 Posts
Offline
Posted: October 10, 2012, 7:53 am - IP Logged

Days after a Hampton Falls, New Hampshire, woman sought permission to subpoena Frederick "Rick" McMenimen's bank records, the former Exeter financial adviser sought Chapter 7 bankruptcy protection, court records show.

The bankruptcy claim essentially halted Susan Wagstaff's lawsuit seeking to recoup $900,000 that she claims McMenimen took from her under the ruse that he was investing the money.

It also stopped legal action connected to another $1.5 million civil judgment against McMenimen for duping his late uncle. The retired Revere public schools administrator bought death benefits that he later learned were worth much less than he was led to believe, according to court records.

He died before the case could be resolved.

Now at least one of those financial disputes — the one by Wagstaff — may be settled by federal prosecutors, who secured a 31-count indictment against McMenimen on charges of money laundering, tax evasion and interstate transportation of goods taken by fraud.

Prosecutors allege that McMenimen, who was arrested Oct. 4, used his reputation as a financial adviser to prey on at least two New Hampshire widows, taking more than $1 million from liquidated insurance annuities and life savings.

McMenimen allegedly put the stolen money into a bank account in Kittery, Maine, federal prosecutors said.

Federal prosecutors allege McMenimen's victims believed their money had been invested, and would provide high-yield returns.

A trustee in bankruptcy court is now asking a judge to issue a subpoena so McMenimen's bank records can be fully examined.

Public records say the money reaped from McMenimen's alleged fraud wasn't his first windfall.

McMenimen, a longtime Exeter High School hockey coach, won $1.4 million from the Tri-State Megabucks in 2005.

After claiming his jackpot, he told the New Hampshire Union Leader, he planned to "put the money in the bank."

"I own a financial planning firm, so I guess I know what to do with it," he added. "Save it."

But despite the jackpot, he continued to find himself in court over a variety of disputes from 2006 until early this year.

In September 2006, McMenimen filed a lawsuit seeking to dissolve a limited liability company that set out to help people sell merchandise online. McMenimen wanted to break free from the business, alleging that his partner "has used company funds to pay himself monies other than wages," according to a court petition.

The lawsuit was ultimately dropped after the partner filed a counterclaim alleging McMenimen decided to stop paying advertising and royalty fees, leaving a balance of $20,000 in unpaid expenses. McMenimen either "paid (the company's) bills late or not at all," his former partner claimed.

McMenimen and his wife also sought restraining orders against two women in November 2006 and March 2008.

The couple claimed that one of the women "has, over a period of time, exhibited an inappropriate attraction" to Frederick McMenimen. Days later, the McMenimens withdrew their request for the order.

In March 2008, Judge Tina Nadeau rejected McMenimen's request to issue a restraining order against a Newfields woman after hearing testimony and examining other evidence submitted in court.

Wagstaff's lawsuit was filed in Rockingham County Superior Court in January, and provided a glimpse of the federal investigation targeting McMenimen.

She said in a sworn affidavit that FBI and IRS agents arrived on her doorstep on Nov. 1 to question her about checks she wrote to McMenimen.

The agents showed her copies of her checks written to his defunct business, and discouraged her from telling McMenimen about their visit, according to court records.

"The agents then asked me not to call Rick after they left because it was a serious investigation," Wagstaff said in her affidavit. "I told them that Rick was as close as family to me and that I was going to call him after they left to ask him what was going on."

Winning the lottery always brings out the very best from our fellow man.  Blue Angel

    helpmewin's avatar - dandy
    u$a
    United States
    Member #106669
    February 22, 2011
    16407 Posts
    Offline
    Posted: October 10, 2012, 8:28 am - IP Logged

    Winning the lottery always brings out the very best from our fellow man.  Blue Angel

    I Agree! I Just won $65.00 last night Dance

                     

      sully16's avatar - sharan
      Listens to the wind

      United States
      Member #81740
      October 28, 2009
      18739 Posts
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      Posted: October 10, 2012, 8:46 am - IP Logged

      Curious to see how this plays out in court.

      There's only one US Flag


        United States
        Member #111446
        May 25, 2011
        6323 Posts
        Offline
        Posted: October 10, 2012, 8:48 am - IP Logged

        I Agree! I Just won $65.00 last night Dance

        No way!!! Your just a money machine helpmewin.    Party

        I'll bet your boss must be real pleased with your performance. That was for a pick 3?

          helpmewin's avatar - dandy
          u$a
          United States
          Member #106669
          February 22, 2011
          16407 Posts
          Offline
          Posted: October 10, 2012, 9:02 am - IP Logged

          no sir, it was Mix & Match

          my boss better not start harassing me Clown tryin to get change for the vending mach.LOL

                           

            hearsetrax's avatar - 78638c467ef281febf24383e126f74b6

            United States
            Member #52345
            May 21, 2007
            1788 Posts
            Offline
            Posted: October 10, 2012, 9:27 am - IP Logged

            Curious to see how this plays out in court.

            ditto


              United States
              Member #111446
              May 25, 2011
              6323 Posts
              Offline
              Posted: October 10, 2012, 10:36 am - IP Logged

              no sir, it was Mix & Match

              my boss better not start harassing me Clown tryin to get change for the vending mach.LOL

              Hey don't you be calling me sir!   No No

              What kind of a place you think this is?

                savagegoose's avatar - ProfilePho
                adelaide sa
                Australia
                Member #37136
                April 11, 2006
                2782 Posts
                Offline
                Posted: October 10, 2012, 11:44 am - IP Logged

                this type of dog has a special place in my heart,  full of hatred and loathing.

                2014 winnings

                JAN -$48.50;  FEB  -$77.5; MAR -$18.05;  APR -$96.05 MAY -$61.10; JUN $-85;

                  rdgrnr's avatar - walt
                  -Ridge Runner- Oracle of the Appalachians
                  Way back up in them dadgum hills, son!
                  United States
                  Member #73904
                  April 28, 2009
                  14903 Posts
                  Offline
                  Posted: October 10, 2012, 12:09 pm - IP Logged

                  "I own a financial planning firm, so I guess I know what to do with it..."

                  Yeah, he sure did.


                    United States
                    Member #124498
                    March 14, 2012
                    7024 Posts
                    Offline
                    Posted: October 10, 2012, 12:58 pm - IP Logged

                    This story was just plain weird.  Something Rod Sterling would have made up. He should have invested with Ronnie and hit that 5+1

                      helpmewin's avatar - dandy
                      u$a
                      United States
                      Member #106669
                      February 22, 2011
                      16407 Posts
                      Offline
                      Posted: October 10, 2012, 1:27 pm - IP Logged

                      Hey don't you be calling me sir!   No No

                      What kind of a place you think this is?

                                       


                        United States
                        Member #111446
                        May 25, 2011
                        6323 Posts
                        Offline
                        Posted: October 10, 2012, 1:48 pm - IP Logged

                        Your not thinking hard enough.......

                         

                          helpmewin's avatar - dandy
                          u$a
                          United States
                          Member #106669
                          February 22, 2011
                          16407 Posts
                          Offline
                          Posted: October 10, 2012, 6:24 pm - IP Logged

                          Your not thinking hard enough.......

                           

                          Laughing graphics

                                           


                            United States
                            Member #111446
                            May 25, 2011
                            6323 Posts
                            Offline
                            Posted: October 10, 2012, 6:33 pm - IP Logged

                            Laughing graphics

                            OK I can see your having difficulty understanding what kind of place this is. I was trying to give you a hint.

                            Here's the deal helpmewin, we are in a lotto asylum.  Crazy    Therefore there are no titles necesscary, particularly not the sir bit.

                             

                            Now that we have that straightened out, why don't you go to your vending machine and get some chips, to get your blood sugar back to normal.

                            Any more winning tickets to report today.  Banana