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Asset Protection Scam - Pukke Case

By Rob Lambert - Email Editor

Date: Sept 22, 2005

Pukke (appropriate name) joins the ranks of Anderson and Lawrence as a scammer seeking to protect his ill-gotten gains using legitimate Asset Protection technology. Watch for this case to be pointed to by the folks out there seeking to discredit legitimate Asset Protection Planning. Remember, one of the points I am always driving home is that solid, Kinetic Asset Protection Planning depends on funding the plan when the financial seas are calm. Now, check out these facts.

In the Pukke case, the Federal Trade Commission (FTC) sought and obtained a freezing order, an order to repatriate assets and the appointment of a receiver to marshal assets of Mr. Pukke.

The court order's basis was the appearance of the defendant's "substantial de facto control" over his offshore trust. I am certain from the tone that Mr. Pukke will be rooming with “Bubba” if he fails to return the assets.

This was no small-time fraud. Mr. Pukke and his related companies (Ameridebt, Inc. and DebtWorks, Inc.) were accused of defrauding consumers having debt problems by structuring repayment plans that included undisclosed lucrative deductions for the owners of the business. The profits were quite substantial because the FTC requested the court to order the defendants to make restitution of over $170 million to injured consumers.

What makes the facts in the case even more outrageous was that the Asset Protection was implemented AFTER Pukke realized he was under FTC investigation. Pukke and his band of thieves were able to transfer close to $24 million.

What really upsets me about this case isn't just the deliberate challenge to the legal system by the defendants' reckless transfer of assets after the FTC investigation began, but the fact that Pukke found counsel to assist him in these obviously fraudulent transfers. I wouldn't touch them with a ten-foot pole and nobody with any sense should either. It is my hope that the “experts”, who implemented this fraud on creditors and our system, are held responsible for this obvious fraud.

I suspect that the planning will hold up even though it was fraudulent, if Pukke is willing to take his risks with Bubba. Remember, even improperly done Asset Protection Trusts are powerful tools and often work even when fraudulently settled.

Let's see if Pukke goes to jail (I heard a rumor that the money was, or is, being returned), and if his advisors pay any price for their overt action and advice in assisting in what has all the traits of a blatantly fraudulent transfer.

Remember: No matter what happens with this case, it is NOT an indictment of Asset Protection. It will hopefully be a condemnation of fraudulently done Asset Protection and the experts who allow this to happen.

Cases like this give Asset Protection Planning a bad name. Worse still, there is a greater likelihood of bias against those who carry out fair and legitimate Asset Protection Planning.

Bottom line: Make sure you do your planning when the financial seas are calm.

 

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