FEDERAL TRADE COMMISSION internal documents provides evidence of a FTC cover-up of negligent actions in its asset seizure action upon NORTH AMERICAN BROADCASTING, LLC which resulted in the FTC’s failure to safeguard, account for and return of seized NAB’s assets..

Recently NAB discovered a May 24, 2006 MEMORANDUM from the FTC Office of Inspector General, entitled: INVESTIGATIVE ALERT: “Vulnerabilities Pertaining to Oversight of Receivers by FTC Staff.”

The Office of Inspector General (OIG) alert reported to the FTC the existence of numerous cases where the FTC’s failure to supervise the receivers it nominates in its 13(b) asset seizure cases has resulted in fraud and or negligence by the FTC’s receivers. The OIG specifically reviewed the actions of FTC designated receiver accountant (who was the subject of the OIG’s 2000-2006 audit) who admitted embezzling millions of dollars from FTC cases. It was this same FTC designated accountant who issued asset freeze notices, was given complete access to and reported on all assets the FTC seized from NAB investors.

Most important to the present NAB inquiry is the question that arises from the failure of the FTC to notify in 2000 (when the FTC knew of the investigation and possible criminal proceedings) or at any time thereafter either the District Court Judges or NAB attorney(s) of the investors (whose assets were seized by the FTC action) that the FTC accountant overseeing NAB assets was actively engaged in fraud. The FTC discovered the embezzlement, although failed to disclose the well documented facts to the courts as they are legally obligated to do so. By concealing these facts from the District Court and NAB, the FTC covered up their failure to safeguard NAB's assets.

Presently, the FTC has failed to respond to NAB request for an inquiry into this matter as the Chairperson of THE COMMISSION continues to deny responsibility for failing to return seized assets of NAB. In recent letters of response to U.S. Senators and Congressmen, the Chairperson states the FTC did not seize NAB assets and does not have any responsibility in this case. However, the FTC’s position is belied by both the OIG’s 6 year report and the FTC’s statutory supervisory responsibilities under 15 U.S.C. Section 56(a)(2).

It appears to NAB that the FTC has covered-up these matters from the Court, from NAB and over 44 members of Congress who have responded to their constituents with letters of inquiry, although the FTC has failed to respond to all requests for inquiry.