Did you purchase “administrative remedies” from Lawler or Freedom Foundation USA or www.freedomclubusa.com? Contact reporter J. Scott Trubey at strubey@ajc.com.
A federal judge has frozen the assets of a Snellville man and purported minister who claimed he could help lead people out of debt and make huge profits.
The Securities and Exchange Commission alleges Thomas J. Lawler defrauded investors, misappropriated an undisclosed amount of money and made unregistered sales of securities, according to a complaint filed Thursday in U.S. District Court in Atlanta. The suit also names as a defendant his firm, Freedom Foundation USA LLC.
Attempts to reach Lawler were not immediately successful.
The SEC said Lawler, 69, called himself “Reverend Tom. Through his company he claimed to have a way to eliminate debt and reap huge returns through so called “administrative remedies.”
The SEC said Lawler and Freedom sold about 2,000 administrative remedies since 2004, but no payouts have been made to investors.
A sales force of “ambassadors” received commissions for selling these remedies for up to $10,000, the SEC said. The remedies would not only wipe out investors’ debts but pay handsome returns.
A buyer of a $1,000 remedy could expect to receive payments over time of $325,000, and a $10,000 remedy could return $1 million, the suit said.
The company marketed to the public through its website, www.freedomclubusa.com , YouTube and through newsletters, the suit said. The website’s slogan is “the truth shall set you free.”
Lawler told investors he fell into debt after a son became ill. He claimed he investigated the banking system and discovered a scheme designed to deceive borrowers, the complaint said.
The SEC alleges Lawler told investors that an “account” is created at birth in each individual’s name with enough money to support the future borrowings of that person. The SEC said it was never explained who creates such accounts or where or in what dollar amount.
When people borrow from banks, Lawler told investors, they’re not borrowing from the bank or other depositors but from their own accounts. Banks charge customers interest to access their own money, the suit said.
The suit said Freedom claimed it would send a series of notices to the remedy-buyers’ creditors, and these notices would cancel debts.
The notices also put the investor into a “payment cycle” that lines them up for future payments from the U.S. Treasury.
These payments were purportedly triggered by “a series of unspecified international events – including a papal decree,” the lawsuit states.
The suit said Lawler used proceeds of the remedy sales for business and personal expenses, including chiropractic care, a beach vacation and “expensive powder” with purported rejuvenating properties.
Judge Amy Totenberg also ordered frozen the assets of Freedom Foundation USA and four related companies.
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