Tax audit firm founder found dead

Kevin Rademacher

Tuesday, June 22, 2004 | 10:33 a.m.

Robert Bennington, one of the founders of the now-defunct National Audit Defense Network, was found dead Sunday afternoon.

The Clark County Coroner's Office classified the death as a suicide and listed the cause of death as a self-inflicted gunshot wound.

Amid mounting legal pressure from state and federal investigators making allegations of fraud, the Las Vegas-based company closed its doors and moved to convert a 2003 bankruptcy filing to a liquidation and closed on May 26.

Bennington, 40, founded National Audit Defense Network in 1994 with Cort Christie.

"I don't know what I can say," said Weston Coolidge, NADN's former president. "I am devastated personally by the news of this event ... I am sad he felt this was something he had to do."

Since the company closed, attorneys for the Justice Department had been pursuing restraining orders that would prevent the company's former executives from conducting similar schemes. Coolidge, who has maintained that the tax services the company sold were not illegal, said the legal struggle had been a source of pressure for Bennington.

"I am sure that factor entered into his decision," Coolidge said. "He has been under relentless attack ... He was very despairing about his employment choices for the future."

Bennington was divorced and had two children.

In 2002 both the Federal Trade Commission and the Nevada Attorney General's Office sued NADN, alleging it failed to honor moneyback guarantees promised on its tax packages.

Last summer, NADN's troubles mounted when it filed for bankruptcy protection. The largest creditor in the filing was the Internal Revenue Service, which had a $1.3 million claim against the company. On April 14 the IRS filed for a temporary restraining order against the company.

The Justice Department on Monday also filed court documents claiming that former executives and employees of the company were illegally using NADN's customer list and database "and are continuing to scam customers through other entities."

The filing lists Elite Solutions USA Inc., Global Management, Allied Grantwriters of America Inc. as the alleged new companies carrying out scams, as well as possibly other unknown entities. The filing asks for injunctions against ALR Inc., Lee Panelli, Jeff Klingenberg and Ric Klingenberg.

The filing claims that the new entities are contacting customers who purchased products from NADN and offering to support those products.