Skip Navigation

 
 
This table is used for column layout.
ALT
Citizen Requests
E-Subscriber

 
Find more about Weather in Enfield, NH

 
Town Manager Update / Municipal Investments
January 21, 2015

Residents:  

I would like to make you aware of recent developments regarding one of our municipal investments.  The Town independently elects three Trustees of Trust Funds to manage our capital reserve and trust fund investments.   In May of 2014 our Trustees invested $300,000 in the GL Beyond Income Fund.  In late December the founder/president of GL Capital Partners, the creator of the GL Beyond Income Fund was charged by the Department of Justice with Misappropriation of Money from an Investment Fund (the link to the charges can be found at: [Link]http://www.sec.gov/litigation/litreleases/2015/lr23171.htm).  Essentially they were making fictitious loans.  Approximately $16 million in alleged loans are in question.   

What does this mean for our funds, and how does this affect our operations?

The money invested in the GL Beyond Income Fund is frozen for the foreseeable future.  The Town has approximately $1.575 million dollars among all of our various capital reserve funds.  The $300,000 invested with the GL fund represents about 20% of that total.  On paper we still have $1.579 million dollars invested, in reality though we only have access to $1.279 million.  In essence each capital reserve fund has 20% less available for actual use.  The impact of having 20% less to utilize for our operations will affect how we purchase and finance our capital needs.
How is the rest of our money invested?  

The remaining funds are in bank certificates of deposit and insured instruments.   The Trustees are regulated by New Hampshire RSA 31:19-38-a and RSA 35.  The Trustees have direct oversight from the NH Attorney General’s Office.  My office typically interacts with the Trustees around this time of year to review how much money we will need from our capital reserve accounts so that the Trustees can make appropriately timed deposits and withdrawals.  

We have been monitoring the legal case against GL Capital Partners and have informed our Town Attorney, as well as the New Hampshire Department of Justice of the situation.  We will make every effort to recover our funds and to keep our residents aware of any significant changes with the case.  I wish I was sharing better news.  I am available to discuss whatever questions that may arise.  Thank you in advance for your understanding and patience as we work through this complicated issue.

Respectfully,

Steven P. Schneider
Town Manager


Direct link to SEC (Securities and Exchange Commission) Complaint:  [Link]http://www.sec.gov/litigation/complaints/2015/comp23171.pdf



 
 
Town of Enfield, NH
23 Main Street, Enfield, NH 03748