Tuesday, Sept. 27, 2005 | 10:20 a.m.
GREENBELT, Md. -- The founder of the credit counseling firm AmeriDebt, a company accused of bilking thousands of debt-ridden customers, has tried to hide millions of dollars even though a federal judge froze his assets earlier this year, investigators said Monday.
Andris Pukke has failed to accurately report his assets in a Belize shrimp farm, stake of a Belize development company and big insurance premiums he paid to offshore companies that may have ultimately been transferred back to Pukke, according to an attorney for the court-appointed retainer overseeing Pukke's frozen funds.
Pukke also may have purchased a house in Laguna Beach, Calif., for more than $6 million, his third home in the area, by funneling money through a friend without telling the court, Gary Caris said during a court hearing.
"He continues to flout your orders," Caris told U.S. District Judge Peter Messitte. "He continues to hide and secrete assets."
A Federal Trade Commission civil case against Pukke is scheduled for trial in January. The FTC alleges that AmeriDebt, a Germantown-based firm designed to help customers with heavy debt, charged hidden upfront costs and convinced customers the money was being used to pay down their debts.
Regulators believe much of the $172 million in fees AmeriDebt collected was transferred to a for-profit company over which Pukke had control. The FTC claims he spent that money lavishly and tried to shield it from the commission, which hopes to use Pukke's assets to repay former AmeriDebt customers. In April, a federal judge froze his assets and placed them in control of a receiver.
AmeriDebt has closed and is being liquidated by a bankruptcy court. Pukke declared personal bankruptcy in July, citing numerous claims against him, including $300 million by the Internal Revenue Service. Several states have also filed lawsuits against AmeriDebt and Pukke.
Pukke was not present at Monday's hearing. His attorney, John Williams, said afterward that he was not authorized to comment on the allegations against Pukke.
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