Robert Brennan
Encyclopedia
Robert Emmet Brennan was an America
n businessman who built the infamous penny stock
brokerage firm, First Jersey Securities. The firm specialized in promoting "Pump and dump
" penny stocks to unsuspecting investors, many of them elderly, who lost their entire investments when the stocks inevitably crashed. As a result of this penny stock scheme, Brennan became a target of the United States Securities and Exchange Commission. First Jersey itself went bankrupt in 1987 and Brennan was found guilty of securities fraud in 1994. The US Government ordered him to pay $75 million to settle the fraud claims.
Brennan declared bankruptcy in 1995 but committed another fraud when he did not declare all of his assets to the court. Brennan withheld from the bankruptcy court the fact that he held $500,000 in casino chips that he had purchased (and later cashed out of after his bankruptcy) and $4 million in municipal bonds he kept in his basement. He then directed an associate to liquidate the bonds overseas and invest them in stocks, which netted him $16 million in ill-gotten gains.
In 2001 Brennan was found guilty of money-laundering and bankruptcy fraud and sentenced to a prison
term of nine years and two months. http://www.nytimes.com/2001/07/27/nyregion/jail-term-for-former-penny-stock-tycoon.html On appeal, in 2003 the sentence was upheld. Brennan served part of his sentence at the US Bureau of Prison's Fort Dix Federal Correctional Institution in Fort Dix, New Jersey. He was released on January 14, 2011.
Brennan grew up in Newark, New Jersey
, one of nine children. He attended St. Benedict's Preparatory School in Newark and in 1973 donated $10 million to the school which allowed it to significantly upgrade its facilities. http://www.nytimes.com/1995/06/21/business/us-ruling-may-undercut-brennan-s-other-projects.html A major benefactor to Seton Hall University
, following his conviction the university's Board of Governors had Brennan's name removed from a recreation center on its campus in South Orange, New Jersey
. Brennan is an alumnus of Seton Hall University
and sat on its Board of Regents.
Brennan was also a Certified Public Accountant
but his license was revoked as a result of his criminal conviction.
race track in Cherry Hill, New Jersey after it was taken out by a 1977 fire. The grandstand reopened in 1985, closed in 2001, was demolished, and the property redeveloped. Brennan also owned and raced Thoroughbred
s under the name Due Process Stable. The best known of his horses were Eclipse Award
winners Deputy Minister
and his son Dehere
, who was bred by Brennan. http://nl.newsbank.com/nl-search/we/Archives?p_product=DN&s_site=philly&p_multi=PI|DN&p_theme=realcities&p_action=search&p_maxdocs=200&p_topdoc=1&p_text_direct-0=0EB2A0B810A38D15&p_field_direct-0=document_id&p_perpage=10&p_sort=YMD_date:D&s_trackval=GooglePM
Brennan also built and owned the prestigious Due Process Stable Golf Club in Colts Neck Township, New Jersey
, where he lived until his arrest in 2001.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
n businessman who built the infamous penny stock
Penny stock
In the United States, penny stocks are common shares of small public companies that trade at less than $1.00. In some countries, similar shares of stock are known as cent stocks.-Concerns for investors:...
brokerage firm, First Jersey Securities. The firm specialized in promoting "Pump and dump
Pump and dump
"Pump and dump" is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price....
" penny stocks to unsuspecting investors, many of them elderly, who lost their entire investments when the stocks inevitably crashed. As a result of this penny stock scheme, Brennan became a target of the United States Securities and Exchange Commission. First Jersey itself went bankrupt in 1987 and Brennan was found guilty of securities fraud in 1994. The US Government ordered him to pay $75 million to settle the fraud claims.
Brennan declared bankruptcy in 1995 but committed another fraud when he did not declare all of his assets to the court. Brennan withheld from the bankruptcy court the fact that he held $500,000 in casino chips that he had purchased (and later cashed out of after his bankruptcy) and $4 million in municipal bonds he kept in his basement. He then directed an associate to liquidate the bonds overseas and invest them in stocks, which netted him $16 million in ill-gotten gains.
In 2001 Brennan was found guilty of money-laundering and bankruptcy fraud and sentenced to a prison
Prison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...
term of nine years and two months. http://www.nytimes.com/2001/07/27/nyregion/jail-term-for-former-penny-stock-tycoon.html On appeal, in 2003 the sentence was upheld. Brennan served part of his sentence at the US Bureau of Prison's Fort Dix Federal Correctional Institution in Fort Dix, New Jersey. He was released on January 14, 2011.
Brennan grew up in Newark, New Jersey
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
, one of nine children. He attended St. Benedict's Preparatory School in Newark and in 1973 donated $10 million to the school which allowed it to significantly upgrade its facilities. http://www.nytimes.com/1995/06/21/business/us-ruling-may-undercut-brennan-s-other-projects.html A major benefactor to Seton Hall University
Seton Hall University
Seton Hall University is a private Roman Catholic university in South Orange, New Jersey, United States. Founded in 1856 by Archbishop James Roosevelt Bayley, Seton Hall is the oldest diocesan university in the United States. Seton Hall is also the oldest and largest Catholic university in the...
, following his conviction the university's Board of Governors had Brennan's name removed from a recreation center on its campus in South Orange, New Jersey
South Orange, New Jersey
-Demographics:As of the census of 2000, there were 16,964 people, 5,522 households, and 3,766 families residing in the township. The population density was 5,945.3 people per square mile . There were 5,671 housing units at an average density of 1,987.5 per square mile...
. Brennan is an alumnus of Seton Hall University
Seton Hall University
Seton Hall University is a private Roman Catholic university in South Orange, New Jersey, United States. Founded in 1856 by Archbishop James Roosevelt Bayley, Seton Hall is the oldest diocesan university in the United States. Seton Hall is also the oldest and largest Catholic university in the...
and sat on its Board of Regents.
Brennan was also a Certified Public Accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
but his license was revoked as a result of his criminal conviction.
Thoroughbred racing
International Thoroughbred Breeders, Inc., a publicly-held company founded and chaired by Brennan, financed the reconstruction of Garden State ParkGarden State Park
Garden State Park was a harness and thoroughbred race track in Cherry Hill, Camden County, New Jersey. It is now the site of a high-end, mixed-use "town center" development of stores, restaurants, apartments, townhouses, and condominiums...
race track in Cherry Hill, New Jersey after it was taken out by a 1977 fire. The grandstand reopened in 1985, closed in 2001, was demolished, and the property redeveloped. Brennan also owned and raced Thoroughbred
Thoroughbred
The Thoroughbred is a horse breed best known for its use in horse racing. Although the word thoroughbred is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thoroughbred breed...
s under the name Due Process Stable. The best known of his horses were Eclipse Award
Eclipse Award
The Eclipse Award is an American thoroughbred horse racing award named after the 18th century British racehorse and sire, Eclipse. The Eclipse Awards, honoring the champions of the sport, are sponsored by the National Thoroughbred Racing Association , Daily Racing Form and the National Turf Writers...
winners Deputy Minister
Deputy Minister (horse)
Deputy Minister was a Canadian-bred Thoroughbred horse racing Champion. At age two, he won eight out of his nine starts and was voted the 1981 Sovereign and Eclipse Award winner as North American Champion 2-Yr-Old, and was also voted Canada's Sovereign Award for Horse of the Year...
and his son Dehere
Dehere
Dehere is an American Champion Thoroughbred racehorse. He was bred and raced by Robert E. Brennan's Due Process Stable. Sired by Canadian Hall of Fame inductee and two-time North American Champion sire, Deputy Minister, he was out of the mare Sister Dot, a daughter of the great U.S...
, who was bred by Brennan. http://nl.newsbank.com/nl-search/we/Archives?p_product=DN&s_site=philly&p_multi=PI|DN&p_theme=realcities&p_action=search&p_maxdocs=200&p_topdoc=1&p_text_direct-0=0EB2A0B810A38D15&p_field_direct-0=document_id&p_perpage=10&p_sort=YMD_date:D&s_trackval=GooglePM
Brennan also built and owned the prestigious Due Process Stable Golf Club in Colts Neck Township, New Jersey
Colts Neck Township, New Jersey
Colts Neck is a township in Monmouth County, New Jersey, United States. As of the 2010 United States Census, the population was 10,142.What is now Colts Neck Township was established by an act of the New Jersey Legislature as Atlantic Township on February 18, 1847, from portions of Freehold...
, where he lived until his arrest in 2001.