Please take notice that Old Hill Partners, Inc. and John C. Howe (“Plaintiffs”) initiated an action in Florida’s Fourth Judicial Circuit Court (Duval County), case number 16-2014-CA-008673, due to allegedly false statements made on Ripoff Report and other websites.  In the Action, Plaintiffs seek to subpoena the records of Xcentric Ventures, LLC for contact information and any other messages that “geraldford” has posted on Ripoff Report under this pseudonym, or any other pseudonyms, about Plaintiffs, to Vorys, Sater, Seymour and Pease, LLP at: 301 E. Fourth Street, Suite 3500, Great American Tower, Cincinnati, OH 45202.

Plaintiffs have served a subpoena on Xcentric Ventures, LLC, the company that owns and operates this website, to reveal your identity.

You may have a right to file and serve a response to the subpoena anonymously. If you intend to file and serve a response, please do so, or notify us of your intent to do so, on or before June 17, 2015, by emailing us at DefLaw@vorys.com.  

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POWER TO THE PEOPLE

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WELCOME TO AMERICA- OUR GOVERNMENT IS ULTIMATELY BEING CONTROLLED BY A CARTEL OF CORRUPT AND GREEDY BANKERS WHO ALSO CONTROL WALL STREET, AND THEY ARE BEING EXPOSED ALL OVER THE WORLDWIDE WEB

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WELCOME TO AMERICA- IN FRAUD WE TRUST

FRAUD REPORT:

PETER BERGSCHNEIDER’S FAMILY DISSUADES  

PETER NOT TO MARRY FRAUDSTER JACQUELINE HOWE

Fiancé Jacqueline Howe’s Theft of Client Funds Could Ruin Peter Bergschneider’s Career and Reputation

The upcoming wedding of Park Hill Group’s Peter Bergschneider to Westport, Connecticut’s Jacqueline Howe looks more like a Greek tragedy than an exciting celebratory event in Mexico scheduled in February 2015.

While the Bergschneider and Howe families should be melding with the anticipation of young Peter Bergscheider marrying Jacqueline Howe,  there is a disturbing reality to this union.  The Bergschneiders do not want their son, Peter, to marry Jacqueline, and into the disgraced and tainted Howe family.

Says  Jacob Reinstein of Fraud Report, “Our sources indicate that  the Bergschneiders are quite disturbed that Peter marrying Jacqueline is toxic for Peter’s career in the investment field. Right now, the Howe family is fraught with their perpetrated frauds against the IRS and investors.”

The story behind Westport’s Howe family demise began when Howe family patriarch, John C. Howe, and his investment group, Old Hill Partners of Darien, Connecticut, were reported to the IRS and SEC by a Boston whistleblower accusing them of committing tax and securities fraud.  Those filings were expanded recently when a second whistleblower, a former associate of Mr. Howe, announced that he had evidence that Mr. Howe, Old Hill Partners, and others, acted in concert to “siphon” client funds for Mr. Howe’s personal benefit.  This is the second time in the past decade that Mr. Howe has been charged with stealing client funds. The second whistleblower’s announcement was reported by Whistleblowers International, a European whistleblower advocacy group.

To add to this saga,  the second whistleblower also states that he has evidence that Mr. Bergschneider’s fiancé, Jacqueline Howe, and her mother,  Sarah Y. Howe,  received funds stolen from private investors through Old Hill Partners. Those funds were ultimately handed over to John Howe.

A friend of the Bergschneider family  told Fraud Report that the Bergschneiders are also worried about the negative influence Jacqueline Howe and her father, John C. Howe, might have on Peter’s reputation and career. 

Fraud Report’s Jacob Reinstein, who has followed the Howe fraud case since its inception notes, “The Bergschneiders have to be concerned about Peter being part of the Howe family and what it means to his future career and reputation within the investment community.  Even if he has no direct link to any of the Howe frauds, he will be known by his clients and colleagues as being a member of that family.”

Says John Bune, an E.U. legal correspondent, “Peter will be like Carlo,  the son-in-law in the Godfather movie.  Once he is in the “family” the stench cannot be washed off.”

 Fraud Report and other media have previously reported that John Howe and Old Hill Partners may be headed toward bankruptcy to ward off potential claims by creditors and investors.  In bankruptcy,  Jacqueline Howe and her mother, Sarah Howe, could be targets of sizeable claims for repayment of millions of dollars they fraudulently received.

Says John Bune,  “The legal risks to Mr. Bergschneider in light of possible legal claims against his future wife, Jaqueline Howe, have to be seriously considered.”   

Alie Hemingway, an investment advisor and consultant to the Fraud Report says, “We have heard that Mr. Bergschneider’s career at Park Hill Group is at risk, and that a principal in that firm has told him that the negative publicity of being part of the Howe family is of great concern to the firm.”

Continues Ms. Hemingway, “The investment community does not forgive or forget those who have tarnished reputations.  In today’s Wall Street environment,  once you lose your reputation,  you cannot retrieve it.”

Says Jacob Reinstein, “Who can’t feel badly for Peter Bergschneider.  He thinks he is marrying into a nice upper-class Howe family only to find he is marrying into a family of fraudsters.  I have no idea how he reconciles his feelings for his fiancé, Jacqueline, with the risk that marrying into the Howe family has on his future career.” 

In the meantime,  Mr. Bergschneider has quite a bit of soul searching to do. He must decide between protecting his future career without Jacqueline, and living with her within a disgraced and possibly bankruptcy Howe family.

An investigation into tax and securities fraud committed by John Howe's Connecticut private hedge funds should concern investors as they are exposed to loss of millions in additional taxes,  interest and fines.

Private hedge funds attract millions of dollars from savvy investors who seek unusually high returns that typically exceed 20 percent. 

The fund managers also receive sizeable fees from the funds, in the form of fixed fees and a percentage of fund profits.  Private hedge funds offer selected investors the opportunity to receive returns that usually are far greater than those they can obtain through investing in the traditional stock markets.  In most instances,  the average investor does not have the minimum $1 million net worth required or  personal contacts to be invited to participate in such private equity funds.

Fairfield County,  Connecticut, is a magnet for private hedge funds,  and is commonly  known as one of the country's private hedge fund havens,  with many hedge fund executives and principals living in the county's exclusive towns such as Westport and Greenwich.

Generally, private hedge fund investors rely on fund managers to direct the operations of the funds and for distributing the share of taxable income that each investor includes on his individual income tax return.

But what is the impact on the investors when a private hedge fund is subject to an IRS investigation for alleged tax fraud?

A pending IRS fraud investigation offers a case in point.  It involves several private hedge funds located in Darien Connecticut and run by fund manager and principal John C. Howe through Old Hill Partners, Inc, a Registered Investment Adviser.  Howe happens to live in Westport Connecticut and is listed by the SEC as not only the fund manager of several private equity funds (through an affiliated entity), but is also a major investor in those same funds.

Based on information submitted to a U.S. Bankruptcy Court in Boston, Howe, and his funds and their affiliates, identified as Patriot Group LLC, Old Hill Partners Inc., Washington Special Opportunity LLC, PFM credit Recovery I, LLC, and certain offshore funds controlled by John Howe,  are under IRS investigation for alleged tax fraud.  There is also a pending Securities and Exchange Commission (SEC) investigation into allegations that Howe and his funds committed U.S. securities fraud.   

Howe also has several offshore funds that include Washington Special Opportunity Fund, Inc., (Cayman Islands), and OHP Opportunity Limited Trust (Bermuda).

Assuming Mr. Howe's tax fraud investigation results in significant adjustments to each fund's taxable income,  investors should be concerned about the impact that those changes will have on their individual tax filings, and, possibly being the target of their own IRS examinations.

Those adjustments could also include assessments of interest and severe penalties against not only the funds, but also each fund's investors, managers and officers.  As Ralph Daniels, a tax accountant familiar with the taxation of private hedge funds notes,  "Investors in private hedge funds need to be concerned when a hedge fund is audited by the IRS.  Any adjustment made by the IRS, including additional interest and penalties, will be allocated to each investor's taxable income."  There is also concern that an examination of a fund will trigger an audit of each investor's individual income tax return.  

Says Daniels,  "Once a tax fraud examination is conducted on any one of Mr. Howe's funds that is a pass-through entity,  the investors of that fund could be exposed to adjustments of other unrelated tax return items.  The IRS has the power to expand its examination to each individual investor." 

Another concern that Mr. Howe's private hedge fund investors have to consider is the penalties that the IRS can assess against Mr. Howe as the  manager for negligence and tax fraud.  Daniels observes, "Mr. Howe might try to pass along those penalties to the fund investors as normal operating expenses, even though the penalties may have been created due Mr. Howe's own negligence." 

The pending IRS investigation of Howe and his hedge funds is happening at a time at which the IRS is investigating offshore investments and foreign bank accounts.  Two of Howe's off-shore funds could be the target of that investigation.  SEC records identify that Howe's Washington Special Opportunity Fund, is located in Grand Cayman Island, while its OHP Opportunity Limited Trust is located in Bermuda.

Having offshore private hedge funds can be dangerous and ill-advised in the current IRS audit climate.  Recently, U.S. taxpayers have been the focus of IRS investigations for having undisclosed offshore investments and bank accounts that has lead to the voluntary program that exists under the Foreign Bank Account Rules (FBAR).

In addition,  on July 1, 2014, new rules found in the Foreign Account Tax Compliance Act (FATCA) went into effect that require foreign banks to disclose U.S. citizens who have foreign bank accounts with balances over $50,000. 

Ralph Daniels explains, "Investors should be weary of investing in off-shore private hedge funds such as Mr. Howe's funds, which may make them more susceptible to greater IRS scrutiny."

Private hedge funds, such as John Howe's funds, are also being investigated as part of Congressional hearings that began in July of this year. Those hearings focus on  the continued tax evasion schemes perpetrated by hedge funds.  In particular,  Congress has focused on tax schemes, such as use of "basket options" and "carried interest" to qualify hedge fund income for lower long-term capital gain rates.  In July of this year, Senator Carl Levin (D- Michigan) published a 93-page report that addresses some of the abuses of private hedge funds. 

Senator Levin's subcommittee also is focused on increasing the IRS audit rate of hedge funds and private equity funds stating "..over 99% of the hedge funds, private equity funds, master limited partnerships and publicly traded partnerships in this country, some of which earn tens of billions each year, are audit free... We literally cannot afford to allow these entities to go unaudited."

It looks like John Howe and his private equity funds are going to get an early IRS investigation and its investors should be concerned.

Ongoing IRS and SEC Investigations into Tax Cheat Father, John C. Howe Calls into Question Daughter Jacqueline Howe’s Involvement in His Fraud Scheme

 Jacqueline Ryan Howe was born on (((Redacted))) 1986.  At age 28, she must be excited in planning her wedding to Peter Bergschneider, scheduled on February 15, 2015 in Cabo San Lucas, Mexico.

 But that wedding might have to wait.

 Jacqueline and her mother, Sarah Y. Howe, may be directly involved in receiving funds stolen from private investors by Jacqueline’s father, John C. Howe.

 Her father, John Howe, has been exposed by not one, but two whistleblowers, for committing heinous frauds against the IRS, SEC and Mr. Howe’s coveted private hedge fund investors.  Those whistleblowers have accused Mr. Howe and his funds of committing tax fraud, securities fraud, and of stealing client funds for his own benefit. 

 Even worse is the present predicament that Jacqueline Howe and her mother, Sarah Howe find themselves in.  After all, this is the second time Jacqueline Howe has been humiliated by her father stealing client funds. Eight years ago, Jacqueline Howe had to withstand the horrible publicity and  humiliation when father John  Howe was accused of taking client funds for his personal benefit.  That case was investigated by the SEC, and reported on by the  New York Post and other publications

 Not only is Jacqueline’s father implicated in certain frauds some of which could send him to prison, but Jacqueline and her mother, Sarah, are accused of cooperating with John Howe in perpetrating the frauds. 

 Says Jacob Reinstein of Fraud Report, “If this case goes in the typical direction,  both Jacqueline and her mother, Sarah Howe, will most likely be charged with receiving fraudulent assets from father and husband, John C. Howe.”

 A second whistleblower, who is a former associate of John Howe,   has specifically identified both Jacqueline Howe, and mother Sarah Howe, as recipients of funds “siphoning” from private investor accounts.

 Whistleblowers International, an international whistleblower advocacy group, has interviewed the second whistleblower and has told this Fraud Report that the whistleblower has written documents supporting the receipt of investor funds by Jacqueline and Sarah Howe.

 Says E.U legal correspondence John Bune,  “Regardless of whether Jacqueline and mother Sarah knew that the transfers were fraudulent,  they are likely to have to go through an exhaustive legal ordeal that will entail their being sued to return the funds. Legal fees alone are likely to be extensive.”

  What if Jacqueline and Sarah Howe do not have the money to pay back the stolen funds or to pay expensive lawyers to defend them? 

 Says a bankruptcy attorney close to the case  “If Sarah and Jacqueline cannot pay back the funds,  their assets will be attached and possibly liquidated.” 

 At front and center as a prime asset is the home that Sarah and John Howe live in at (((Redacted))) in Westport.  Public records and an on-line appraisal service place a value on that home at not less than $2 million.   That home is in the name of Sarah Howe and could be used to liquidate and repay investors and other creditors.

 As Jacob Reinstein of Fraud Report notes, “Based on the overall lifestyle of the Howe family, and the allegations that these frauds and transfers occurred over many years,  the $2 million from liquidating the Westport home is likely to be insignificant when compared with the total amount of funds fraudulently transferred to Jacqueline and Sarah.”

 Says an attorney who knows the Howe family, Sarah and Jacqueline have most likely received tens of millions of dollars over a span of many years, that will have to be repaid.  

 Says John Bune, “If they received the funds and knew of John’s fraudulent activities,  this case could be elevated to a criminal one with Sarah and Jacqueline as defendants.” 

 Another concern that Jacqueline and mother Sarah should have is whether John Howe and possibly they might be forced into bankruptcy by other creditors.  If so, a bankruptcy trustee will seek recovery of those fraudulent transfers made over at least the past four years.

 “Says Fraud Report’s Jacob Reinstein,  “When Bernie Madoff committed fraud, the bankruptcy trustee sued wife Ruth Madoff and recovered most of her assets.  Now, I hear Mrs. Madoff is living off of cat food.”

 Could the same fate happen to Jacqueline Howe and her mother, Sarah?

 Peter Bergschneider May Inherit Bride-to-be Jacqueline Howe’s Massive Legal Obligations

 Peter’s Wedding to Jacqueline Howe May Expose Peter to Repayment of Millions of Fraudulent Transfers from her Father, Tax Cheat John C. Howe

It is common for gushy newlyweds to say “everything I do,  I do it for you.”  Or,  “what’s mine is yours.”

 We have heard those statements made amidst the eternal bliss of marriage.

 For Peter Bergschneider,    he may have to consider these statements to be literal.   That’s because his sweet,  bride-to-be,  Jacqueline Howe, Age 28, is likely to come into their marriage with some baggage- not baggage such as bags that are packed for an exciting honeymoon.  Rather, it is baggage in the form of significant legal obligations and exposure to tens of millions of dollars of liabilities due, primarily, to one simple fact.  Jacqueline is the beloved daughter of tax cheat,  John C. Howe.  Mr. Howe is in the middle of investigations into his tax and securities frauds, as well as pending investigations into Mr. Howe’s “siphoning” of millions of dollars of client private funds.  The tax and securities fraud charges were initiated by a Boston whistleblower.

 It is the “siphoning” of funds that poses the greatest risk for Jacqueline Howe and, ultimately to Peter Bergschneider.    A second whistleblower and former associated of Mr. Howe, alleges he has concrete evidence that Jacqueline was a direct participant in father John Howe’s siphoning campaign. 

 “That means she benefited from using stolen investor funds to subsidize her Westport lifestyle as the daughter of a wealthy private hedge fund owner,” says Fraud Report’s Jacob Reinstein.

 But,  father John Howe apparently took money that did not belong to him,  not once, but twice.  A few years ago,  the New York Post reported on an SEC investigation into Mr. Howe’s movement of client funds into his own personal accounts. 

 Now,  Mr. Howe has done it again, except on a much larger scale involving the theft from several private investors who, up to now, have been oblivious to the fact that Mr. Howe has cheated them out of their life savings.

 As to Jacqueline Howe,  evidence is mounting that she was a direct beneficiary of funds she received from Mr. Howe’s investors.  Those funds do not belong to her, and certainly do not belong to her father. 

 Says Fraud Report’s Editor Jacob Reinstein, “Jacqueline cannot receive ownership of funds that do not legitimately belong to the donor, her father, John Howe. That includes all of the money used to pay for Jacqueline’s wedding and her gifts.”

 Jacqueline’s mother, Sarah Howe,  is also accused of receiving stolen funds.  The chronology of Sarah Howe’s fate will be addressed in another article by this Editor.

 Peter Bergschneider has a real problem.  He must have assumed that he was marrying into a very upper-class Howe family in Westport.  What Peter could not have known is that Jacqueline is now debt ridden and comes to their marriage at a very steep and painful price. 

 Says John Bune, an E.U legal correspondent, “Consider the traditional concept whereby a bride bringing a dowry of assets to the marriage.  In Jacqueline’s case, she has what is tantamount to a negative dowry, consisting of massive future legal obligations due to her father’s creditors.”

 There are also the challenges Peter faces in marrying Jacqueline and inheriting her financial debts.

 Continues Bune, “I hope that Peter’s attorneys have advised him well. If, during the marriage, Peter purchases any assets jointly with Jacqueline,  those assets could be attached by creditors and possibly a bankruptcy trustee.  If Peter benefits from any of Jacqueline’s money, he too may be the target of litigation to repay the assets he receives.”

 Fraud Report’s Jacob Reinstein adds, “Typically you see a marriage where one person may have some bad credit and few small credit card balances outstanding- certainly nothing that is insurmountable.  In this case, Jacqueline joins her marriage owing tens of millions of dollars of obligations due to the funds she fraudulently received from her father’s investors.

What a sad way to start a marriage.”

 The next question is whether Peter is being advised to postpone the marriage while Jacqueline sorts out her financial troubles.   But that will take some time and require millions for her to settle potential claims with creditors.

 Says Reinstein, “If I were Peter Bergschneider,  I would postpone the wedding until Jacqueline’s financial affairs are straightened out. Peter could lose everything if he is not careful.” 

 Little did Peter Bergschneider think that Jacqueline Howe is marrying him for “his” money and not the other way around. 

Peter Bergschneider May Inherit Bride-to-be Jacqueline Howe’s Massive Legal Obligations

 Peter’s Wedding to Jacqueline Howe May Expose Peter to Repayment of Millions of Fraudulent Transfers from her Father, Tax Cheat John C. Howe

It is common for gushy newlyweds to say “everything I do,  I do it for you.”  Or,  “what’s mine is yours.”

We have heard those statements made amidst the eternal bliss of marriage.

For Peter Bergschneider,    he may have to consider these statements to be literal.   That’s because his sweet,  bride-to-be,  Jacqueline Howe, Age 28, is likely to come into their marriage with some baggage- not baggage such as bags that are packed for an exciting honeymoon.  Rather, it is baggage in the form of significant legal obligations and exposure to tens of millions of dollars of liabilities due, primarily, to one simple fact.  Jacqueline is the beloved daughter of tax cheat,  John C. Howe.  Mr. Howe is in the middle of investigations into his tax and securities frauds, as well as pending investigations into Mr. Howe’s “siphoning” of millions of dollars of client private funds.  The tax and securities fraud charges were initiated by a Boston whistleblower.

It is the “siphoning” of funds that poses the greatest risk for Jacqueline Howe and, ultimately to Peter Bergschneider.    A second whistleblower and former associated of Mr. Howe, alleges he has concrete evidence that Jacqueline was a direct participant in father John Howe’s siphoning campaign. 

“That means she benefited from using stolen investor funds to subsidize her Westport lifestyle as the daughter of a wealthy private hedge fund owner,” says Fraud Report’s Jacob Reinstein.

But,  father John Howe apparently took money that did not belong to him,  not once, but twice.  A few years ago,  the New York Post reported on an SEC investigation into Mr. Howe’s movement of client funds into his own personal accounts. 

Now,  Mr. Howe has done it again, except on a much larger scale involving the theft from several private investors who, up to now, have been oblivious to the fact that Mr. Howe has cheated them out of their life savings.

As to Jacqueline Howe,  evidence is mounting that she was a direct beneficiary of funds she received from Mr. Howe’s investors.  Those funds do not belong to her, and certainly do not belong to her father. 

Says Fraud Report’s Editor Jacob Reinstein, “Jacqueline cannot receive ownership of funds that do not legitimately belong to the donor, her father, John Howe. That includes all of the money used to pay for Jacqueline’s wedding and her gifts.”

Jacqueline’s mother, Sarah Howe,  is also accused of receiving stolen funds.  The chronology of Sarah Howe’s fate will be addressed in another article by this Editor.

Peter Bergschneider has a real problem.  He must have assumed that he was marrying into a very upper-class Howe family in Westport.  What Peter could not have known is that Jacqueline is now debt ridden and comes to their marriage at a very steep and painful price. 

Says John Bune, an E.U legal correspondent, “Consider the traditional concept whereby a bride bringing a dowry of assets to the marriage.  In Jacqueline’s case, she has what is tantamount to a negative dowry, consisting of massive future legal obligations due to her father’s creditors.”

There are also the challenges Peter faces in marrying Jacqueline and inheriting her financial debts.

Continues Bune, “I hope that Peter’s attorneys have advised him well. If, during the marriage, Peter purchases any assets jointly with Jacqueline,  those assets could be attached by creditors and possibly a bankruptcy trustee.  If Peter benefits from any of Jacqueline’s money, he too may be the target of litigation to repay the assets he receives.”

Fraud Report’s Jacob Reinstein adds, “Typically you see a marriage where one person may have some bad credit and few small credit card balances outstanding- certainly nothing that is insurmountable.  In this case, Jacqueline joins her marriage owing tens of millions of dollars of obligations due to the funds she fraudulently received from her father’s investors.

What a sad way to start a marriage.”

The next question is whether Peter is being advised to postpone the marriage while Jacqueline sorts out her financial troubles.   But that will take some time and require millions for her to settle potential claims with creditors.

Says Reinstein, “If I were Peter Bergschneider,  I would postpone the wedding until Jacqueline’s financial affairs are straightened out. Peter could lose everything if he is not careful.” 

Little did Peter Bergschneider think that Jacqueline Howe is marrying him for “his” money and not the other way around. 

John Howe Moved “Siphoned” Money to Sarah and Jacqueline Using an Elaborate Maze of Private Companies

Recently,  this Editor reported on the ongoing fraud investigation into John C. Howe of Westport, Connecticut, and his numerous private hedge funds headquartered in Darien, Connecticut.

The case involves a Boston whistleblower who turned Mr. Howe and his funds into the IRS and SEC, alleging that Mr. Howe committed tax and securities fraud.

More recently,  Whistleblowers International (WBI),  a whistleblower advocacy group located in Europe,  published a series of articles in which it announced that a second whistleblower had come forward.  This second whistleblower is about to file numerous claims against John C. Howe and others, alleging that Mr. Howe “siphoned” funds from client accounts for his personal benefit, and also committed tax fraud, among other accusations.

According to WBI,  through interviews with the second whistleblower, a former associate of John C. Howe, this whistleblower has documents that prove Mr. Howe’s frauds. 

The second whistleblower has also alleged that he has written evidence that Mr. Howe transferred significant funds to his wife, Sarah Howe, and daughter, Jacqueline Howe,  as part of the effort to siphon client funds.

The Fraud Report has investigated into the Howe family fraud affair deeper and has uncovered some disturbing facts.  

Our investigative reporter has found evidence that Mr. Howe is using numerous limited liability companies,  in the names of Sarah Howe,  Jacqueline Howe and other family members,  to hide and conceal funds he may have stolen from investors.  The Fraud Report has also learned that Mr. Howe has places some of the stolen funds in a private foundation.

One such fraudulent transaction involved  the Tradewinds Residences located in Centerville, Massachusetts.  According to public documents, Mr. Howe purchased a mortgage note secured by condominiums located on Craigville Beach Road, Centerville at a discounted price of $5.1 million.  Subsequently,  Mr. Howe foreclosed on the underlying property and sold the condominiums at a discount.  The Fraud Report has learned that the primary source of the $5.1 million of funds used to purchase the note was from funds siphoned from Mr. Howe’s private investors through exorbitant management fees charged by Old Hill Partners, Inc.  This story has been confirmed not only by the second whistleblower, but by an attorney who was directly involved in the transaction.

Says John Bune, an E.U. legal correspondent,  “In essence,  Mr. Howe stole client funds that did not belong to him.  Then, he used those funds to make a big score on a defunct real estate transaction.” 

Continues Bune,  “This type of behavior,  where a money manager breaches his fiduciary responsibility to his private investors,  is criminal, and needs to be stopped.”

The Fraud Report has found other limited liability companies (LLCs) established by Mr. Howe in the names of his wife, Sarah and Jacqueline.  In 2012,   Sarah and John Howe established Howe Holdings, LLC.   Howe Art Thou, LLC was another LLC established by John and Sarah Howe.  There are numerous other LLCs that the author will not list here.

Says Bune, “The only reason why Mr. Howe would set up these new LLCs is if he had something to hide.  Typically we see unscrupulous individuals hiding assets in LLCs and other entities under the names of family members and friends, such as is the case with Mr. Howe.”

Other entities used to conceal assets include the J.S. Howe Foundation which, according to public records,  has more than one million dollars in it.  Says Bune, ”The J.S. Howe  Foundation had, as officers,  Jacqueline Howe and another family member, Eliza Howe. and is a perfect vehicle to conceal assets.”  Continues Bune, “The foundation has a veil of legitimacy so that no one will question the origin of the funds and whether they came from Mr. Howe’s “siphoning” effort involving client funds.” 

According to public records,  the trustee of the foundation was changed to the name of Old Hill Partners, Inc. sometime in 2013.  Says Bune, “With Old Hill Partners as the new trustee,  that would give Mr. Howe the perfect opportunity for Old Hill to authorize investor funds to be deposited into the foundation.  In fact,  public records show that approximately $900,000 of funds were deposited into the foundation in 2012 and 2013.

Westport’s Sarah Y. Howe Received Fraudulent Funds from Husband John C. Howe .

Ongoing IRS and SEC Investigations into Tax Cheat Husband, John C. Howe Call into Question Sarah Howe’s Involvement in the Frauds.

Westport’s Sarah Y. Howe was born on October 17, 1959.   Having grown up in Concord, Massachusetts,  the 55-year-old woman, has done what many woman her age have accomplished.   She married her childhood sweetheart, John Howe,  raised a family,  and has lived a nice upper-crust life in the posh southern Connecticut suburb of Westport.  Sarah is proud to see that her daughter,  Jacqueline Howe, age 28, is about to marry Peter Bergschneider in Cabo San Lucas on February 15, 2015.

Sarah must have thought that all was just about perfect in her life, with anticipation of the upcoming wedding and the festive holiday season filling the Howe family with a warm glow and excitement. 

That feeling has quickly changed from euphoria to anxiety, stress and worry. Sarah has learned that her husband John C. Howe has been accused by not one, but two whistleblowers, of committing heinous frauds against the IRS, SEC and Mr. Howe’s coveted private hedge fund investors.   Those whistleblowers allege that Mr. Howe and his funds committed tax fraud, securities fraud, and stole client funds for his own benefit. 

This is the second time Sarah Howe has been humiliated by news that her husband has stolen client funds. In 2006,  Sarah Howe and her family had to withstand the horrible publicity and embarrassment when John  Howe was accused of taking client funds for his personal benefit.  That case was investigated and reported on by the  New York Post and other publications, as was part of an extensive SEC probe.

Now,  even worse is the present predicament that Sarah Howe finds herself in.

Not only is John Howe accused of committing numerous frauds some of which could send him to prison, but Sarah herself, and her beloved daughter, Jacqueline,  are also accused of

cooperating with her husband in perpetrating the frauds. 

If this case goes in the direction they typically do,  Sarah Howe and daughter Jacqueline, will most likely be charged with receiving fraudulent assets from husband and father, John C. Howe.

The second whistleblower has specifically accused Mrs. Howe and her daughter of being the recipients of funds transfers as part of John C. Howe’s “siphoning” of client funds.

Says E.U legal correspondence John Bune,  “Regardless of whether Jacqueline and mother Sarah knew that the transfers were fraudulent,  they are likely to have to go through an exhaustive legal ordeal that will entail their being sued to return the funds. Legal fees alone are likely to extensive.”

What if Sarah does not have the funds to pay back the investors and fund her extensive legal fees? 

Says a bankruptcy attorney close to the case  “If Sarah and Jacqueline cannot pay back the funds,  their assets will be attached and possibly liquidated.” 

At front and center as a prime asset is the home that Sarah and John Howe live in at 4 Winding Lane, in Westport.  Public records and an on-line appraisal service place a value on that home at not less than $2 million.   That home is in the name of Sarah Howe and could be used to liquidate and repay investors and other creditors.

As Jacob Reinstein of Fraud Report notes, “Based on the overall lifestyle of the Howe family, and the allegations that these frauds and transfers occurred over many years,  the $2 million from liquidating the Westport home is likely to be insignificant when compared with the total amount of funds fraudulently transferred to Jacqueline and Sarah.”

Says an attorney who knows the Howe family,  Sarah and Jacqueline have most likely received tens of millions of dollars that will have to be repaid.  

Says John Bune, “If they received the funds and knew of John’s fraudulent activities,  this case could be elevated to a criminal one with Sarah and Jacqueline as defendants.” 

Another concern is whether Sarah might be forced into bankruptcy by other creditors.  If so,  a bankruptcy trustee will seek recovery of those fraudulent transfers made over at least the past four years.

“Says Fraud Report’s Jacob Reinstein,    “When Bernie Madoff committed fraud, the bankruptcy trustee sued wife Ruth Madoff and recovered most of her assets.  Now, I hear Mrs. Madoff is living off of cat food.”

Could the same fate happen to Sarah Howe?

Westport, Connecticut’s John C. Howe and his private hedge funds, are being investigated for committing U. S. tax fraud and securities laws violations, announced Whistleblowers International (WBI), a non-profit advocacy group focused on publication of on-going whistleblower cases.  

Mr. Howe’s daughter,  Jacqueline Howe,  also, of Westport, Connnecticut, is planning to wed Peter Bergschneider in February 2015.  Mr. Bergschneider is a financial analysis at Manhattan’s Park Hill Group.    WBI notes that the ongoing fraud investigations into John C. Howe may directly impact Peter Bergschneider’s upcoming wedding to John Howe’s daughter,  Jacqueline.

According to documents and testimony introduced in Boston’s U.S. Bankruptcy Court, John Howe, an executive of Old Hill Partners, LLC, Patriot Group, LLC, and other private hedge funds located in Darien, Connecticut, is the focus of ongoing Internal Revenue Service (IRS) and Securities and Exchange Commission (SEC) investigations.  Focus on Mr. Howe was initiated by a whistleblower as part of a bankruptcy case in Boston.   A second whistleblower has contacted WBI and announced he is planning a more expansive whistleblower filing against Mr. Howe to be filed by the end of 2014.  That second whistleblower alleges that Mr. Howe and others engaged in an elaborate scheme to “siphon” client funds and overcharge clients for Mr. Howe’s personal benefit.

Mr. Howe is also accused of embarking on a campaign to “harass and intimidate” a whistleblower by forcing the whistleblower into bankruptcy after the whistleblower informed Mr. Howe of the pending IRS and SEC whistleblower filings against him and his funds.

According to records published by the Securities and Exchange Commission (SEC), there is a group of hedge funds and management companies under Mr. Howe’s control and ownership that are located in offshore tax havens, such as Grand Cayman Island and Bermuda.  Those affiliated funds include The Washington Special Opportunity Fund, Inc. (an off-shore fund located in Grand Cayman), and the OHP Opportunity Limited Trust, another off-shore Bermuda fund, among others.

Public records in the state of Connecticut show that Mr. Howe has also set up certain private investment vehicles in the name of daughter Jacqueline Howe and other family members, that include 9 Acre Holdings LLC and a private family foundation.

As for Peter Bergschneider’s upcoming wedding to Jacqueline Howe, there are concerns about the impact that Mr. Howe’s alleged frauds might have on Mr. Bergschneider’s wedding.   If Mr. Howe is using stolen funds for the benefit of family members, such as paying for his daughter’s wedding,  that could force Peter Bergschneider and Ms. Howe to pay back those funds.  

Says John Bune, an E.U legal advisor to WBI,  “If Mr. Howe spends money or shifts assets to others in anticipation of being sued by the IRS, SEC, investors, or others,  those funds represent a fraudulent conveyance under U.S. law and may have to be repaid by the receiving parties. For Jacqueline Howe and Peter Bergschneider,  marriage is difficult enough.  They do not need the cloud of John Howe’s frauds looming over their heads.” 

Scher Threatens Media to Take Down Content About Tax Cheat Client, John C. Howe

Whistleblowers International (WBI) has uncovered the identity of the party behind the attacks on WBI’s media publications.  That person is Ina Scher,  partner with the New York law firm of Davis & Gilbert.

Ms. Scher has been hired by tax cheat John C. Howe and Old Hill Partners to attack WBI and coerce media outlets to remove WBI’s articles  and other published content focused on the tax and securities fraud investigations against John C. Howe and Old Hill Partners.  Mr. Howe lives in Westport, Connecticut.

In a  recent WBI article, John C. Howe and Old Hill Partners Viciously Attack Whistleblowers International,   WBI asserted that Mr. Howe has taken actions to “coerce, threaten and intimidate several U.S. media outlets, forcing them to remove WBI's blogs, press releases and other content pertaining to Mr. Howe's alleged frauds.” 

WBI’s interest in  Mr. Howe is based on two separate and independent whistleblowers who have come forward against Mr. Howe,  Old Hill Partners, and other individuals and entities affiliated with Mr. Howe.

WBI has previously reported on the first whistleblower, an American, who has accused Mr. Howe, Old Hill Partners and other entities of committing U.S. tax and securities fraud. The whistleblower filed  claims with the IRS and SEC against Mr. Howe, Old Hill Partners and their related funds.  That same whistleblower has also accused Mr. Howe of retaliating against him by forcing the whistleblower into bankruptcy and harassing and intimidating him and his family inside the U.S. Bankruptcy Court.  

Recently,  the second whistleblower contacted WBI and  announced that he is preparing   whistleblower filings against Mr. Howe,  several former and present officers and employees of Mr. Howe's companies, and others.   The second whistleblower alleges that Mr. Howe and his colleagues and affiliates committed U.S. tax fraud, “siphoned” investor funds for Mr. Howe's personal benefit, and overcharged those same investors exorbitant management fees.

WBI also conducted investigations into the history of Mr. Howe’s acts of aggression against others.  Those investigations have revealed that Mr. Howe has been involved in numerous lawsuits over the past decade including being a defendant in the Marc Dreier $400 million fraud case,  and another case in which Mr. Howe filed a lawsuit against a company using false information.   The New York Post has also reported that Mr. Howe shifting client investment funds into his own personal account, a severe violation of securities laws.

In October 2014, several e-media organizations contacted WBI and informed it that they were removing  WBI's blogs, press releases and articles from their web sites, based on  threats they had received from Mr. Howe’s “agent.”   Mr. Howe's agent took actions to discredit WBI by informing  the media organizations that WBI's press releases contained false and libelous statements about Mr. Howe and Old Hill Partners.   WBI has now learned that Mr. Howe’s agent is none other than, Ina Scher, partner of Davis & Gilbert.

One media outlet told WBI that Mr. Howe's agent "threatened them with litigation if they did not immediate remove from their web sites all WBI press releases referencing Mr. Howe and Old Hill Partners,"  regardless of whether they were true.

WBI now has in its possession  a letter that Ina Scher sent to one media organization making disparaging comments about WBI, and threatening litigation if they did not remove all articles about Mr .Howe and Old Hill Partners.

“WBI is exploring its legal options against Ms. Scher, Davis & Gilbert and John Howe.  They must be held accountable for their actions." says John Bune, a WBI correspondent.

In the meantime,  WBI has moved its U.S. blog to operations outside the United States and is reissuing its recent blogs, press releases and articles to a larger volume of media outlets.  "The move allows us to continue to service our U.S. customers out of reach and attack of Howe and his attorneys," says WBI's John Stratenberg. 

"We will not let a wealthy and corrupt hedge fund bully like Mr. Howe prevent us from distributing the truth about those brave whistleblowers who have the courage to come forward against Mr. Howe," says John Bune, a WBI correspondent.

Tax Cheat John C. Howe Plans an Elaborate Mexican Wedding for His Daughter, Jacqueline, Using Fraudulently Obtained Funds

 Westport, Connecticut’s Jacqueline Howe is your typical bride to be.   She is a 28-year old college graduate who grew up on 4 Winding Lane, in the posh suburb of Westport,  Connecticut.  She is the daughter of John and Sarah Howe.   John is a wealthy private hedge fund manager and majority principal in Old Hill Partners Inc., Patriot Group, LLC, and several private hedge funds located in Darien, Connecticut.

Jacqueline’s bridegroom is Peter Bergschneider who is a financial advisor at Manhattan’s Park Hill Group.  Peter is also the son of a successful father in the investment business.

Bliss is everywhere in anticipation of Jacqueline and Peter sharing their love and commitment as they embark together on life’s journey. 

According to Westport’s neighbors, Jacqueline has planned the “perfect” wedding in Cabo San Lucas, Mexico, where family and friends will fly in the witness the nuptials in February 2015.

Jacqueline’s dress is ordered from a high-end Westport boutique,  and she has gift requests from all the top retailers.   Mom and Dad will spare no cost for their daughter, Jacqueline’s happiness.

Jacqueline and Peter are likely to start their new life with a new house or luxurious condominium in New York or its nearby suburbs so that Peter can easily commute to his Manhattan office.

All appears to be perfectly aligned for Jacqueline and Peter to walk down the aisle among friends and family in Cabo San Lucas’s warm, sundrenched Pacific blue, while escaping Connecticut’s chilling February cold.   All seems just right for affluent private hedge fund executive John C. Howe to spoil his beloved daughter with  Westport’s wedding of the year- a celebration that is customary for the sons and daughters of Westport’s elite.   

There is one subtle difference between Jacqueline and Peter’s wedding when compared with those of their Westport friends.  Unlike the other Westport brides-to-be,  where mom and dad foot six figures to pay for their daughters’ celebrations,  the Howe affair is slightly different.  That’s because the money used to pay for Jacqueline and Peter’s nuptials is dirty money,  paid for by funds stolen by Jacqueline’s father,  John C. Howe.  After all, John C. Howe is being investigated for tax and securities fraud for stealing millions from the  U.S. government in unpaid taxes and from his private investors.  That’s what a Boston whistleblower says based on filings he made to the IRS and SEC alleging Mr. Howe’s perpetrated frauds.   A second whistleblower is about to come forward with evidence that Mr. Howe “siphoned” client investment funds for his own benefit and overcharged management fees to those same clients.    This would be the second time in a decade that Mr. Howe has been accused of stealing client funds for his own personal benefit.  A few years ago, the New York Post reported on a similar incident perpetrated by Mr. Howe.

So the good news for Jacqueline and Peter is that John Howe has accumulated plenty of money to pay for their elaborate wedding.  The bad news is that Mr. Howe’s money is tainted, badly tainted, because Mr. Howe stole it.

Of course,  John C. Howe doesn’t want Westport to know about his frauds.  He doesn’t want the close-knit hedge fund community to know that he is a fraud and that he has earned money unethically and illegally by stealing it; stealing it from the U.S. Government,  and stealing it from clients who trusted him with their life savings.   Mr. Howe wants Westport to think that his money,  the money he is spending on beloved Jacqueline’s wedding is hard-earned,  honestly earned,  and that he is the trusted investment advisor who is worthy of being invited into Westport’s private hedge fund “club.”

Of course,  Mr. Howe’s life is nothing by a facade, behind which he hides his true identity as a crook in the same vein as Madoff, Stanford,  and Drier.  The only difference is that Mr. Howe’s stolen funds are in the hundreds of millions, while the infamous Bernie Madoff stole in the billions.    

Mr. Howe has had to conceal the truth.   Up to now, Howe has had a Boston whistleblower in his way.  A whistleblower who spilled the goods on Howe by disclosing to the world the true John C. Howe- the man who is a tax cheat.  The man who stole money from the IRS. The man who violated securities laws.  The man who has been accused not once, but twice, of siphoning client funds for his own personal benefit.  The man who has to use off-shore entities to hide income and steal taxes from the U.S. Government.  The man who benefits from the open and free society of the United States, but enjoys stealing tax dollars from the same U.S. citizens who have paid his fees and help him grow  to the  stage in life he presently enjoys.

So,  John C. Howe has had to silence the whistleblower, that one person who can tell the world what John C. Howe is really like.  That person who can expose John Howe’s true hypocrisy as a man who in public exhibits a demeanor as an honest, hard-working person who goes to church,  pays his bills,   loves his family and, yes,  wants to pay for his daughter Jacqueline’s wedding.  But in private, Mr. Howe is nothing more that a crook, and a mean one at that.

For more than one year,  John Howe has, in fact, been attacking the Boston whistleblower,  making every effort to quiet the whistleblower in Boston’s Bankruptcy Court.  Mr. Howe has tried to crush the whistleblower and his family,  ruining the whistleblower’s reputation, and has forced the whistleblower to spend thousands of dollars in a forced bankruptcy initiated by Mr. Howe. 

Now,  Mr. Howe doesn’t want Westport to know that the money he is using to pay for Jacqueline’s and Peter’s wedding is fraud money, filthy money,  money that is no better than the money drug lords use to pay for the weddings of their sons and daughters in Columbia, instead of Mexico.   

In the end,  poor daughter Jacqueline is the one who suffers.  She has to live with knowing that the beautiful wedding gown she has,  all of mom and dad’s gifts,  those fabulous Cabo oceanfront rooms,  everything that her dad,  John C. Howe, gives her out of love and affection, is dirty, filthy money,  stolen on the backs of the U.S. taxpayers,  ripped out of the savings of those private investors who trusted Mr. Howe with their life savings.

The hypocrisy of John C. Howe is so thick, you can cut it with a wedding butter knife.