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twoplustwo · 12-06-2009, 08:12 AM

http://www.citizen.com/apps/pbcs.dll...7/-1/citnews04

Pastor linked to mortgage schemeLaconia:

By GAIL OBER
Saturday, December 5, 2009

A superior court judge has ordered all of Pastor Robert Farah's assets, including his three properties, frozen despite his personal pleas to release them.

Farah, who represented himself before Judge Kathleen McGuire in Belknap County Superior Court Friday, had been named as a respondent in a suit filed by Robert Furgerson, one of the alleged victims of his son, Scott David Farah's alleged Ponzi scheme. After the suit was filed, McGuire ordered that all of the respondents' assets be temporarily frozen until Friday's hearing.

"Everything I own is attached," said Robert Farah. "Me and my wife. We can't pay for anything."

Furgerson came from Arizona to testify and said he was enticed by Robert Farah to invest the proceeds of a real estate sale into some investments coordinated by Scott David Farah.

Represented by attorney Chris Carter, Furgerson needed to show that Robert Farah substantially influenced Furgerson's decision to invest through Financial Resources Mortgage, Inc. and that his finances were linked to that of his son.

Furgerson said he first became aware of Financial Resources Mortgage, Inc. when he received a postcard solicitation and, after some investigation, he made a $60,000 investment. He said after that he often received phone calls from Scott Farah but, when Scott Farah learned of his real estate sale, the frequency of the calls increased.

He testified that Robert Farah called him once or twice, a claim Robert Farah denied.

Furgerson said he continued to demure on the larger investment and Scott David Farah invited him to visit New Hampshire and offered him his father's cottage on Lake Winnipesaukee to stay.

"It was kind of like Beaver Cleaver," said Furgerson as he described how both Farahs and their wives and children made him dinner during his visit.

"We held hands and prayed and part of that prayer was that [his son's] business continued to prosper," Furgerson said. "It was like a movie set."

He said it was just before the meal that Robert Farah encouraged him to invest, adding, in retrospect, he thinks he must have "checked his brain somewhere."

As Robert Farah continued to deny he had any active role in his son's business, Carter provided document after document that he said proved just the opposite — including one that listed Robert Farah as one of the incorporators of Financial Resources Mortgage, Inc., in 1989 when the company was formed.

Robert Farah admitted to lending his son the money to start FRM but said he withdrew his interests once the company got going.

Carter also stated that one parcel of land that was sold to Furgerson through a realty trust was once owned by the Center Harbor Christian Church.

Robert Farah replied that the Center Harbor Christian Fellowship once owned the land while the church he ministers is the Center Harbor Christian Church.

He denied that either he or his son used the pulpit to solicit investors. "We are a poor church. Many of my parishioners are unemployed," Robert Farah said.

Carter also called on Oskar Klenert, the owner Earth Protection Systems, who claimed Scott David Farah raised $2.5 million, allegedly for his company, and Furgerson was a supposed investor.

Klenert said he had not planned to testify, coming to Laconia from his home on Cape Cod like many other erstwhile investors to see the proceedings and to try and learn what was happening. He said he had known Robert Farah for nearly 40 years and Farah encouraged by him to go see Scott David Farah to raise money for his invention, the Earth Cell Module.

"Do you know [Robert Farah]?" McGuire asked him.

"Yes," said Klenert.

"Is what is represented by Mr. Carter true?" she continued.

"Yes," he answered.

"Did he induce you?" she asked.

"No," replied Klenert. "It was some kind of plan and after the loans were paid I agreed to give him part of the business."

Following the hearing, Klenert and Farah spoke briefly though it is not known what the two longtime acquaintances said to each other.

In the hallway, Robert Farah acknowledged the hearing did not go the way he had hoped but he declined to say more.

Klenert said he was completely taken aback by what he heard in court about Scott David Farah's dealings and the number of people he allegedly defrauded. He said he hoped the Farahs live the rest of their lives with some element of remorse.

"I say, let the truth prevail," said Klenert.

They're a poor church? Then why is he living large?

12-06-2009, 08:12 AM	#58
twoplustwo Senior Member Join Date: Dec 2007 Location: Moultonborough Posts: 456 Thanks: 51 Thanked 39 Times in 21 Posts	karma? http://www.citizen.com/apps/pbcs.dll...7/-1/citnews04 Pastor linked to mortgage schemeLaconia: By GAIL OBER Saturday, December 5, 2009 A superior court judge has ordered all of Pastor Robert Farah's assets, including his three properties, frozen despite his personal pleas to release them. Farah, who represented himself before Judge Kathleen McGuire in Belknap County Superior Court Friday, had been named as a respondent in a suit filed by Robert Furgerson, one of the alleged victims of his son, Scott David Farah's alleged Ponzi scheme. After the suit was filed, McGuire ordered that all of the respondents' assets be temporarily frozen until Friday's hearing. "Everything I own is attached," said Robert Farah. "Me and my wife. We can't pay for anything." Furgerson came from Arizona to testify and said he was enticed by Robert Farah to invest the proceeds of a real estate sale into some investments coordinated by Scott David Farah. Represented by attorney Chris Carter, Furgerson needed to show that Robert Farah substantially influenced Furgerson's decision to invest through Financial Resources Mortgage, Inc. and that his finances were linked to that of his son. Furgerson said he first became aware of Financial Resources Mortgage, Inc. when he received a postcard solicitation and, after some investigation, he made a $60,000 investment. He said after that he often received phone calls from Scott Farah but, when Scott Farah learned of his real estate sale, the frequency of the calls increased. He testified that Robert Farah called him once or twice, a claim Robert Farah denied. Furgerson said he continued to demure on the larger investment and Scott David Farah invited him to visit New Hampshire and offered him his father's cottage on Lake Winnipesaukee to stay. "It was kind of like Beaver Cleaver," said Furgerson as he described how both Farahs and their wives and children made him dinner during his visit. "We held hands and prayed and part of that prayer was that [his son's] business continued to prosper," Furgerson said. "It was like a movie set." He said it was just before the meal that Robert Farah encouraged him to invest, adding, in retrospect, he thinks he must have "checked his brain somewhere." As Robert Farah continued to deny he had any active role in his son's business, Carter provided document after document that he said proved just the opposite — including one that listed Robert Farah as one of the incorporators of Financial Resources Mortgage, Inc., in 1989 when the company was formed. Robert Farah admitted to lending his son the money to start FRM but said he withdrew his interests once the company got going. Carter also stated that one parcel of land that was sold to Furgerson through a realty trust was once owned by the Center Harbor Christian Church. Robert Farah replied that the Center Harbor Christian Fellowship once owned the land while the church he ministers is the Center Harbor Christian Church. He denied that either he or his son used the pulpit to solicit investors. "We are a poor church. Many of my parishioners are unemployed," Robert Farah said. Carter also called on Oskar Klenert, the owner Earth Protection Systems, who claimed Scott David Farah raised $2.5 million, allegedly for his company, and Furgerson was a supposed investor. Klenert said he had not planned to testify, coming to Laconia from his home on Cape Cod like many other erstwhile investors to see the proceedings and to try and learn what was happening. He said he had known Robert Farah for nearly 40 years and Farah encouraged by him to go see Scott David Farah to raise money for his invention, the Earth Cell Module. "Do you know [Robert Farah]?" McGuire asked him. "Yes," said Klenert. "Is what is represented by Mr. Carter true?" she continued. "Yes," he answered. "Did he induce you?" she asked. "No," replied Klenert. "It was some kind of plan and after the loans were paid I agreed to give him part of the business." Following the hearing, Klenert and Farah spoke briefly though it is not known what the two longtime acquaintances said to each other. In the hallway, Robert Farah acknowledged the hearing did not go the way he had hoped but he declined to say more. Klenert said he was completely taken aback by what he heard in court about Scott David Farah's dealings and the number of people he allegedly defrauded. He said he hoped the Farahs live the rest of their lives with some element of remorse. "I say, let the truth prevail," said Klenert. They're a poor church? Then why is he living large?