CONCORD, N.H. – New Hampshire’s outgoing Securities Bureau director said Friday his agency had no jurisdiction over the investigation into a failed mortgage firm accused of swindling investors out of at least $80 million.

Mark Connolly announced last month that he is resigning as the state’s top securities regulator so he can speak “more bluntly” about government mismanagement of the investigation into Financial Resources Mortgage, which abruptly closed in November. Friday was his last day.

“After today, I no longer have a regulatory stake in this matter,” Connolly said. “I have never had a political stake.”

Connolly told a legislative hearing that his agency does not have independent rights “to go kicking down doors” in investigating such companies. He said the responsibility lies with the Banking Department and the Attorney General’s Office.

Connolly’s testimony came two days after state Attorney General Michael Delaney released a report faulting Connolly’s office, the Bureau of Securities Regulation and the Banking Department for not doing a better job investigating investors’ complaints against the firm.

Delaney said the agencies missed opportunities to protect investors and expose fraud and called the relationship between the Banking Department and Securities Bureau “toxic.” He denied Connolly’s allegations of a government cover-up.

 


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.