Andersons' Trust Company pays $1.2 million

[IMPORTANT NOTE: This settlement was between the FTC and the TRUSTEE of the Andersons' Cook Islands Trust, and NOT between the FTC and the Andersons themselves. This settlement did NOT settle the case between the FTC and the Andersons, and the FTC is free to continue to pursue the Andersons on the judgment. In other words, the Andersons' trust paid out a significant amount of money, and it still didn't get the Andersons out of the case. If you don't believe us, contact the FTC at the number given below.]

from http://www.ftc.gov/opa/2002/12/fyi0265.htm

Federal Trade Commission approval of
settlement regarding the collection of offshore assets:

The Commission has approved a settlement regarding the collection of assets being held in an offshore trust in the Cook Islands on behalf of two defendants in Affordable Media, LLC. The settlement has been reached with AsiaTrust Limited (ATL), a non-party in this case and trustee of the offshore trust, with respect to the assets belonging to Michael and Denyse Anderson, defendants in this matter. The FTC brought this case in 1998 as part of "Project Risky Business," an investment fraud sweep. The Andersons ran one of several boiler rooms involved in a Ponzi scheme that induced consumers to buy a share of the profits from the sales of product advertised in TV spots placed by the defendants. In April 2000, the court granted the FTC's motion for a summary judgment against the Andersons, and entered a $20 million judgment against them.

In September 1999, the United States, on behalf of the FTC, filed a legal action in the Cook Islands against ATL to recover the Andersons' money. Through the settlement announced today, ATL has turned over to the FTC $1.2 million from the Andersons' trust, ending the litigation against it. As a result of this settlement and the underlying litigation in this case, the FTC collected and maintains approximately $1.4 million in a redress account. A plan to distribute that money to defrauded consumers currently is pending before the court. The Commission vote to approve the settlement was 5-0. (FTC File No. X980056; staff contact is Gregory A. Ashe, Bureau of Consumer Protection, 202-326-3719; see press releases dated April 28, June 19, and August 11, 1998.)

The Anderson Case
Review and analysis regarding FTC v Affordable Media, LLC

FTC v. Affordable Media, LLC (Anderson) -- Text of Actual Case
Yes, there was lots of theorizing about what would happen when "the rubber met the road" with regard to offshore trusts; now see for yourself what the U.S. Court of Appeals for the 9th Circuit says.

Other Professionals' Comments About Anderson
Letters to me from other asset protection planners discussing the Anderson decision.

Cook Islands Rule in Favor of Andersons
It didn't keep the Andersons out of jail in the United States, but at least the Andersons' assets are safe in the Cook Islands. An insightful glance at how the offshore courts view foreign asset protection trusts.

Andersons' Trust Company pays $1.2 million
AsiaTrust LImited has coughed up $1.2 million from the Andersons' Cook Islands trust to settle a lawsuit brought by the Federal Trade Commission against the Andersons' trust, while the FTC continues to pursue the Andersons on the $20 million judgment entered against them.