Sarah Y. Howe review: Sarah Y. Howe Received Fraudulent Funds from Husband John C. Howe

Westport’s Sarah Y. Howe Received Fraudulent Funds from Husband John C. Howe

Ongoing IRS and SEC Investigations into Tax Cheat Husband, John C. Howe Call into Question Sarah Howe’s Involvement in the Frauds

Westport’s Sarah Y. Howe was born on October 17, 1959. Having grown up in Concord, Massachusetts, the 55-year-old woman, has done what many woman her age have accomplished. She married her childhood sweetheart, John Howe, raised a family, and has lived a nice upper-crust life in the posh southern Connecticut suburb of Westport. Sarah is proud to see that her daughter, Jacqueline Howe, age 28, is about to marry Peter Bergschneider in Cabo San Lucas on February 15, 2015.

Sarah must have thought that all was just about perfect in her life, with anticipation of the upcoming wedding and the festive holiday season filling the Howe family with a warm glow and excitement.

That feeling has quickly changed from euphoria to anxiety, stress and worry. Sarah has learned that her husband John C. Howe has been accused by not one, but two whistleblowers, of committing heinous frauds against the IRS, SEC and Mr. Howe’s coveted private hedge fund investors. Those whistleblowers allege that Mr. Howe and his funds committed tax fraud, securities fraud, and stole client funds for his own benefit.

This is the second time Sarah Howe has been humiliated by news that her husband has stolen client funds. In 2006, Sarah Howe and her family had to withstand the horrible publicity and embarrassment when John Howe was accused of taking client funds for his personal benefit. That case was investigated and reported on by the New York Post and other publications, as was part of an extensive SEC probe.

Now, even worse is the present predicament that Sarah Howe finds herself in.

Not only is John Howe accused of committing numerous frauds some of which could send him to prison, but Sarah herself, and her beloved daughter, Jacqueline, are also accused of
cooperating with her husband in perpetrating the frauds.

If this case goes in the direction they typically do, Sarah Howe and daughter Jacqueline, will most likely be charged with receiving fraudulent assets from husband and father, John C. Howe.

The second whistleblower has specifically accused Mrs. Howe and her daughter of being the recipients of funds transfers as part of John C. Howe’s “siphoning” of client funds.

Says E.U legal correspondence John Bune, “Regardless of whether Jacqueline and mother Sarah knew that the transfers were fraudulent, they are likely to have to go through an exhaustive legal ordeal that will entail their being sued to return the funds. Legal fees alone are likely to extensive.”

What if Sarah does not have the funds to pay back the investors and fund her extensive legal fees?

Says a bankruptcy attorney close to the case “If Sarah and Jacqueline cannot pay back the funds, their assets will be attached and possibly liquidated.”

At front and center as a prime asset is the home that Sarah and John Howe live in at 4 Winding Lane, in Westport. Public records and an on-line appraisal service place a value on that home at not less than $2 million. That home is in the name of Sarah Howe and could be used to liquidate and repay investors and other creditors.

As Jacob Reinstein of Fraud Report notes, “Based on the overall lifestyle of the Howe family, and the allegations that these frauds and transfers occurred over many years, the $2 million from liquidating the Westport home is likely to be insignificant when compared with the total amount of funds fraudulently transferred to Jacqueline and Sarah.”

Says an attorney who knows the Howe family, Sarah and Jacqueline have most likely received tens of millions of dollars that will have to be repaid.

Says John Bune, “If they received the funds and knew of John’s fraudulent activities, this case could be elevated to a criminal one with Sarah and Jacqueline as defendants.”

Another concern is whether Sarah might be forced into bankruptcy by other creditors. If so, a bankruptcy trustee will seek recovery of those fraudulent transfers made over at least the past four years.

“Says Fraud Report’s Jacob Reinstein, “When Bernie Madoff committed fraud, the bankruptcy trustee sued wife Ruth Madoff and recovered most of her assets. Now, I hear Mrs. Madoff is living off of cat food.”

Could the same fate happen to Sarah Howe?