New Hampshire Senate Bill 180

State government failed to perform their duties as obligated by law to protect citizens . 

  • Chandler Report, Findings of Fact in the Financial Resources Mortgage, Inc. MatterApril 11, 2011

" ...mistakes that rose to the level of failure of state government. The state had the necessary tools and resources at its disposal to perform their statutory duty and adequately protect the consumer, and failed to do so. When needed to reach out and take responsible action, agencies of the state with direct oversight responsibility became timid, hid behind technicalities, and failed to exercise their full statutory authority.   ...our citizens who have every right to expect exemplary conduct at every level and of every level of our state government.”          

Read more of Mr. Chandler's report at (copy and paste into your web browser)

In testimony before the Governor and Executive Council, Bank Commissioner Peter Hildreth Removal Hearing:

  • Associate Attorney General Richard Head testified on December 1, 2010, "...There were in this case red flags popping up everywhere...........all of the agencies had sufficient information to take action within their jurisdiction and simply failed to do that......"  
 Dec. 1, 2010 audio tape 3:25:30


  • Governor Lynch to Associate Attorney General Richard Head on December 1, 2010, "Then, certainly by the 2003, 2004 audit which showed repetitive deficiencies, false information was being given, etc., etc., that was ample basis for pulling the license." Richard Head responded "Yes."

​ ​Dec. 1, 2010 audio tape, 5:01:17

  • Banking Department Director of Consumer Credit Mary Jurta testified on November 30, 2010 "...their license should have been taken in 2006, ..." ​ Nov. 30, 2010 audio tape, 4:47:42


Banking failed in its defined obligation by law to ensure FRM/CLM had fidelity insurance to cover theft.


  • ​"RSA 383:14,I. Each Institution under the supervision of the commissioner shall purchase fidelity bond coverage for protection or indemnity against losses from dishonest or criminal acts of officers, employees, and agents of the institution, and acts as such robbery, burglary, or forgery by persons not associated with the institution."  (........eff. June 18, 1997.)

  • FRM/CL&M did not have a fidelity bond.  Had a fidelity bond been in place, the proceeds would have been payable to the bankruptcy estate for distribution to the victims.

State Revenue Administration and Banking Department file claims against the FRM/CLM bankruptcy estates.   

  • Banking Department claim approved for a $55,000 fine and $45,324 audit expense, for a total of $100,324.

  • Department of Revenue Administration priority claim approved for $73,872.33 business tax liability plus interest and a subordinated claim of $20,512.10, for a total of $94,384.43

Additionally the Banking Department filed claim against a $100,000 surety bond.

SB 180 is funded by "fine monies".  Currently, the state profits from fine monies collected from violators in regulated financial industries rather than the victims who suffered at the hand of these regulated financial industries.


Right the Wrong

  •  ".... it's important for all of us here to recognize our job is to right the wrong."  Senator Lou D'Allesandro speaking before the Senate, March 28, 2013, afternoon session, media content at 33:45


​​State Assistance should be Considered


  •  "When a person suffers a financial loss at the hands of a state-licensed and state-regulated entity who was in a clear violation of state laws and rules, the regulating agency fails to act on those violations, then I think we've crossed the line where state assistance should be considered"  Senate President Peter Bragdon.  


  •  "The state knew something was going on there, the state chose to do nothing about it, the state chose to be self insured."  Senate President Peter Bragdon speaking before the Senate, March 28, 2013, afternoon session, media content 33:45.

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Background Info

SB 180 is a Recovery Fund for the victims of the Financial Resources Mortgage, Inc. (FRM) fraud with the intent to return a "percentage" of losses to the lender/victims. 

This website provides the necessary facts to understand the regulatory enforcement failures that occurred over a 10 year period.  

With this understanding, state legislators can make an informed decision to support SB180.