First Pension Settlement Reached

Lawyers for investors who lost $136 million in the First Pension Corp. fraud said Monday that the California Department of Corporations has agreed to a nonmonetary settlement of claims against it.

The state agency settled the 6-year-old lawsuit without admitting any wrongdoing. Under terms of the agreement, it will inform the public on how to file complaints about shady businesses and will maintain information on its Web site, www.corp.ca.gov/comp, to help investors detect and report fraudulent investment schemes.

Investors accused the state agency of ignoring red flags in the First Pension scheme, which ran for a dozen years, while authorizing the company to continue doing business.

Former First Pension owner, William E. Cooper of Villa Park, and two associates admitted swindling more than 8,000 investors out of their savings. The three were sentenced to federal prison terms.