Fundamerica Inc

Two weeks after defunct FundAmerica Inc. settled a criminal probe by Florida authorities, it was revealed that a Los Angeles federal grand jury is probing a possible case against the firm's founder, according to court documents. Court papers filed in U.S. Bankruptcy Court in Santa Ana, where the company was ordered liquidated almost three years ago, reveal that a grand jury is mulling possible criminal charges against Robert T. Edwards, who owns residences in Newport Beach and Vancouver, Canada.

A company accused of defrauding investors has pleaded no contest to a single felony charge in a deal with Florida prosecutors. The company, Irvine's defunct FundAmerica Inc., must pay a $200,000 fine but avoids a criminal trial. Florida's attorney general contended that FundAmerica was a pyramid scheme--a company that spent more time signing up new members for a fee than actually selling products.

Two weeks after defunct FundAmerica Inc. settled a criminal probe by Florida authorities, it was revealed that a Los Angeles federal grand jury is probing a possible case against the firm's founder, according to court documents. Court papers filed in U.S. Bankruptcy Court in Santa Ana, where the company was ordered liquidated almost three years ago, reveal that a grand jury is mulling possible criminal charges against Robert T. Edwards, who owns residences in Newport Beach and Vancouver, Canada.

Ever since losing $200 in a film-processing scam as newlyweds, Paul and his wife promised each other they would always sleep on a major decision to spend money. For 13 years, they kept that promise. But then a representative of Irvine-based FundAmerica Inc. made them an offer they couldn't refuse. On a neighbor's assurance that it was a sure-fire investment, the couple forked over $3,200 to FundAmerica for 40 memberships in April.

A company accused of defrauding investors has pleaded no contest to a single felony charge in a deal with Florida prosecutors. The company, Irvine's defunct FundAmerica Inc., must pay a $200,000 fine but avoids a criminal trial. Florida's attorney general contended that FundAmerica was a pyramid scheme--a company that spent more time signing up new members for a fee than actually selling products.

The top executive of Irvine-based marketing firm FundAmerica Inc. was arrested Thursday on fraud charges in connection with a Florida investigation into whether the company ran an illegal pyramid scam, Florida regulators said. Robert T. Edwards, president of FundAmerica, was arrested in Wilmington, Del. He is being held on charges of criminal organized fraud and unlawful lottery activity, said Joe Bizzarro, spokesman for the Florida Attorney General's Office.

A partnership headed by San Francisco investment banking firm Hellman & Friedman said Wednesday that it would make a bid to acquire Executive Life Insurance Co., the Los Angeles company seized by state regulators in April. Hellman & Friedman, whose partners include the Zell/Chilmark Fund and Fund American Cos., becomes the fourth group to bid or announce intentions to make an offer for the junk bond-laden life insurer. No details of the Hellman & Friedman proposal were released.

One financial planner took the stage and was about to tell the 45 or so people in the hotel audience how he once made a fortune selling FundAmerica memberships. Then he caught himself, realizing that this was supposed to be the new and improved FundAmerica. "We can't talk numbers any more, can we?" he asked another salesman. So he fudged things a tad: "Let's say that my income in a couple of years was more than most people make in their whole lives," he said. They're baaaaack.

One financial planner took the stage and was about to tell the 45 or so people in the hotel audience how he once made a fortune selling FundAmerica memberships. Then he caught himself, realizing that this was supposed to be the new and improved FundAmerica. "We can't talk numbers any more, can we?" he asked another salesman. So he fudged things a tad: "Let's say that my income in a couple of years was more than most people make in their whole lives," he said. They're baaaaack.

Most of FundAmerica's remaining assets were sold at auction for $1 million Friday to a lawyer representing company founder Robert T. Edwards despite a last-minute effort by a major creditor to block the sale. For $500,000 in cash and a $500,000 promissory note, Vancouver attorney George C. Davis acquired the Irvine network marketing company's copyrights, trademarks, patents, computer programs and membership lists--and rights to the FundAmerica name.

FundAmerica, the controversial Irvine consumer marketing company, is scheduled to be liquidated today. A federal bankruptcy judge is holding a public auction this morning to sell most of the firm's remaining assets, including its trademarks, copyrights, membership lists and the right to use the FundAmerica name. The bankruptcy trustee operating the company said Thursday that the only sure bidder was a new California company, FundGold Inc.

Florida Atty. Gen. Bob Butterworth has set aside a $20-million fine imposed against FundAmerica Inc. founder Robert T. Edwards in connection with criminal charges accusing him of running the company as a Florida pyramid scheme. Butterworth took the action Monday on the recommendation of an administrative hearing officer who said Edwards, a Newport Beach resident, had not had a chance to present an adequate defense.

The California attorney general's office believed that FundAmerica, Inc. was running a pyramid scheme as early as September, 1988--nearly two years before Florida authorities filed criminal charges against the company--but it never took formal action against the Orange County marketing company, according to a letter obtained by The Times on Thursday.

FundAmerica, the controversial Irvine consumer marketing company, will be liquidated and most of its remaining assets sold at a public auction later this month, it was decided in bankruptcy court here Tuesday. The company's Chapter 11 bankruptcy trustee said he has already received a $1-million offer from a Canadian company controlled by the attorney for FundAmerica founder Robert T. Edwards.

FundAmerica, the controversial Irvine consumer marketing company, will be liquidated and most of its remaining assets sold at a public auction later this month, it was decided in bankruptcy court Tuesday in Santa Ana. The company's Chapter 11 bankruptcy trustee said he has already received a $1-million offer from a Canadian company controlled by the attorney for FundAmerica founder Robert T. Edwards.