February 11th, 2011 by Reed Allmand 
Life After Bankruptcy Fraud No Picnic For Former Penny Stock Promoter--Image via Wikipedia
A federal judge in Trenton is expected to decide today whether to reopen his bankruptcy case so regulators can recover money from the trust he set up for his children. The trust was valued at $6.4 million in 1998, according to bankruptcy court records.
But the trust set up by Brennan has eluded the grasp of the bankruptcy trustee for ten years and repatriating that money has been impossible.
A. Richard Ross, who served as an attorney for Brennan’s bankruptcy trustee, said offshore trusts can put up “incredible roadblocks” for creditors if they include “flight clauses.”
“If there’s any attempt to gain information or freeze the trust to benefit a litigation for creditors, that trustee is obligated to send it on to a new trustee beyond the reach” of creditors or government agencies, he said.
But some are saying that the family trust was specifically setup to protect the assets from creditors seeking reimbursement in the bankruptcy case. Even if this is the case, it has proven impossible for the bankruptcy court to force the off shore trustees into compliance because the countries in which the trust is held do not recognize U.S. law. The reopening of the bankruptcy case may put pressure on Brennan to release the funds of the family trust to the bankruptcy court.
(source: http://www.nj.com/business/index.ssf/2011/01/nj_judge_to_decide_whether_to.html)
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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