One West Financial Services

Janet Mortenson, Receiver

 What happened to the money that One West accepted from investors?

        The Receiver has seized bank accounts and cash as well as houses, a vacant lot, furniture, furs, jewelry, and art.  A certified public accountant on the staff of the District Attorney’s Office is leading the investigation concerning what One West did with the remaining money it accepted from investors.  Bank records, including thousands of checks that came into and went out from One West’s accounts, are being examined thoroughly.  Forensics experts in the District Attorney’s Office have also extracted information from One West’s computers, including e-mail messages sent and received.  Once the District Attorney’s Office has completed this investigation, there will be a clearer picture of what happened to the money in this case.   The Receiver will pursue all credible leads to assets, no matter where they are located.

Will the investors be able to file a claim with the Attorney General’s Crime Victims' Compensation Fund?

        The Receiver referred your question to the Attorney General’s Office, which responded as follows:  “The Crime Victims' Compensation Fund is available only to victims of crime who suffer personal injury or death as a result of criminally injurious conduct, such as sexual assault, kidnapping, or attempted murder.  Information about eligibility for the Crime Victims' Compensation Fund is available at www.oag.state.tx.us/victims/cvc." 

Why are the District Attorney’s Office, the Attorney General’s Office, the State Securities Board, and the Receiver involved in this matter?  What is the role of each of these offices?

           The District Attorney’s Office is in charge of the criminal prosecution of Lanny Lown and any other individuals who are charged in this case. 

The State Securities Board investigates alleged violations of the Texas Securities Act, including allegations of securities fraud. The Securities Board’s attorneys and investigators assist the District Attorney’s Office in criminal prosecutions and work with the Attorney General’s office in seeking injunctions, restitution, and receiverships in civil courts in cases in which it alleges that securities fraud has occurred. 

The Attorney General’s Office represents the State and state agencies, such as the Securities Board, in court.  The main purpose of the lawsuit that the Attorney General filed, at the request of the Securities Commissioner, was to obtain an injunction to stop One West from committing securities fraud and to request that the court appoint a receiver to take control of assets derived from the fraud.  The Attorney General’s Office also closely monitors the receiver’s actions and the receiver’s fees.

          A receiver is a neutral party, often an attorney, who is appointed by a court to seize assets in lawsuits in which there are allegations of fraud or mismanagement.  A receiver’s job is to gather and protect assets under the court’s supervision. The court has directed the Receiver to conduct an investigation and to propose and administer a claims process under which defrauded investors will file claims.  Approved claims will be paid from the funds the receiver has recovered. 

 How much money will I get back?

            The receivership court will determine the method of calculating investors’ approved claims.  Each investor with an approved claim will receive a pro-rata share of the funds the Receiver has recovered.  It is not possible at this time to estimate how much money will be recovered and available for distribution to investors.  The Receiver is still investigating the facts of this case.  She is seizing all known assets and investigating the transfers of assets that occurred prior to the receivership.  If you know the whereabouts of money, cars, jewelry, houses, or other property purchased by One West or Lanny Lown, please call the Receiver immediately at (713) 523-4032.  Additionally, the Receiver is determining the receivership’s rights in the property she has seized.  Some of the houses and the cars have sizeable liens against them.

I withdrew funds from my retirement account to invest with One West and have to pay taxes and penalties on the withdrawal.  Will these taxes and penalties be included in my loss when I file a claim? 

           The receivership court will determine the method of calculating approved claims.  The questionnaires that investors have returned to the District Attorney’s Office will provide valuable information to the Receiver in conducting her investigation so that she can make recommendations to the receivership court concerning the claims process.

            Each investor should consult his or her tax adviser regarding the tax consequences of having withdrawn money from a retirement account to invest with One West.

I believe people other than Lanny Lown and Lori Franz were involved in the One West case.  Why are they not being prosecuted?

         The Harris County District Attorney’s Office is in charge of the criminal matters related to this case.  Decisions regarding criminal charges are up to the District Attorney’s office, and if indictments are returned, to the grand jury.  The Receiver does not participate in determining the defendants who will be prosecuted.

If you believe that an attorney or an accountant assisted One West in soliciting investors or in running the investment program, please notify the Receiver immediately by leaving a message on the One West receivership phone line, which is  (713) 523-4032.  You may also send an e-mail message to the Receiver at receiver@onewestreceivership.com.

 How does the Receiver get paid?

         The court ordered that the Receiver’s compensation and the expenses of the receivership will be paid from the assets the Receiver recovers in this case.  The Receiver is paid an hourly rate, not a percentage of recovered assets.  The receivership court must approve all compensation paid to the Receiver, and the court directed the Receiver to keep receivership expenses as low as possible consistent with an accurate and efficient administration of the receivership estate. 

I’m interested in buying some of the jewelry the Receiver has seized.  What should I do?

            An independent jewelry expert is currently examining the jewelry in order to provide the Receiver with an accurate description and the probable resale value of each piece.  Once the Receiver has this information, she will determine the best method of selling individual pieces in order to get the highest prices.  The Receiver has had considerable experience in other cases in selling jewelry, ranging from simple gold chains to individual pieces for which the defendants paid several hundred thousand dollars.  Due to insurance issues, the Receiver is unable to display the jewelry to prospective buyers at this time. 

Do you have all the information you need from me?

If you have completed the Harris County District Attorney’s questionnaire, you do not need to supply any additional information at this time.  At a later date, the receivership court will require each investor to complete an official sworn claim form, so please be sure to retain copies of all of your records. 

What should I do if I move or change phone numbers?       

It is your responsibility to notify the Receiver in writing of any change in your address or phone numbers.   You may fax this notice to the Receiver at (713) 610-3892, mail it to 3401 Louisiana, Suite 220, Houston, TX 77002, or e-mail it to receiver@onewestreceivership.com. 

I have an investment with Lanny Lown and One West Financial that pre-dates the period you mention on the website.  I have not as yet received any of the mailings.  Should I fill out and submit the questionnaire as posted on the web?

         YES.   Please complete the questionnaire and return it.  

I completed the questionnaire I received in the mail from the Harris County District Attorney's office.  Do I need to complete another one?

         NO.  The Harris County District Attorney's office will make all of the completed questionnaires available to me.  We may ask you for additional information at a later date, but at this time you don't need to complete another questionnaire. 

 Why hasn’t Lori Franz been arrested?

        The Harris County District Attorney’s Office is in charge of the criminal matters related to this case.  Decisions regarding criminal charges are up to the District Attorney’s office, and if indictments are returned, to the grand jury.  The Receiver does not participate in determining the defendants who will be prosecuted.

 Was Lanny Lown's home searched and all records and computers confiscated?

        All computers and records in Mr. Lown’s house and in One West’s office were seized.

Send mail to claims@onewestreceivership.com .  
Last modified: Wednesday, June 17, 2009