Court Writing Final Chapter In Big Inland Northwest Securities Scam

The final chapter of the biggest securities scam in the annals of Inland Northwest swindling is now being written.

A federal bankruptcy judge in Spokane has ordered the books closed on efforts to recover assets from Kenneth D. Oxborrow, who bilked 1,100 investors in a $58-million pyramid investment scam.

Oxborrow, a Columbia Basin spud farmer, masqueraded as a genius in the high-risk commodity futures market. By using the money of his latest victims to pay early investors gigantic false profits, Oxborrow passed himself off as a financial wizard.

I exposed the swindler in The Spokesman-Review three days before his lawyers filed for bankruptcy. That was in 1984. Oxborrow got out of prison five years ago.

Meantime, it has taken a dozen years for lawyers, clerks, accountants and judges to sort things out as best they can. At last, the court has called a halt, and ordered trustees to tally up who gets how much of what they recovered.

A final accounting is due this spring. There’s no telling until that report is released how well Oxborrow’s victims might come out, but there’s no doubt that others have gotten rich off settling up the swindler’s affairs.

By 1989, the con artist’s bankruptcy attorneys had reaped total fees reported to be “in excess” of $1 million. More detailed figures are not readily available from the court for the first six years of the bankruptcy. But in 1990, the court started cranking costs of the Oxborrow case into a computer.

A printout reveals the total for the past six years to be $1,297,008.15. Based on these figures, it appears probable that the final total of attorneys fees in the Oxborrow bankruptcy will surpass $2.5 million.

Chamber appoints executive

Dan S. Kirschner is the Spokane Area Chamber of Commerce’s new director of public affairs.

He formerly was chief of staff of the Republican Caucus for the Washington State House of Representatives and before that was Eastern Washington director for U.S. Sen. Slade Gorton.

Also at the chamber, Brendan M. Farnell becomes local government coordinator, reporting to Kirschner. This is a new position funded in part by a grant from Momentum, and the responsibilities include serving as advocate/ ombudsman for small businesses that experience difficulty dealing with local governments.

Bekins leaves legacy behind

Here’s an asterisk to the recently announced shutdown of the Bekins Northwest moving operations in Spokane: The firm’s late president, Claude Bekins, served as commissioner general of Expo ‘74.

The Northwest’s largest mover also was official transport, freight forwarder, and storage adviser for the 1974 Spokane world’s fair.

Over 60 years ago, a youthful commissioner-to-be ran the Spokane branch of a Seattle-based moving company founded by his father with 15 horses and six wagons in 1903.

The company’s storage center for office records and household goods remains open in Spokane.

Scholarship deadline looms

March 1 is the deadline to apply for a $500 academic scholarship sponsored by the Spokane franchise of Padgett Business Services and designed to help small businesses.

“We have received numerous inquires and applications for this scholarship, which is available to the children of small-business owners in our area,” said franchise owner Gary Thunem.

To be eligible, the applicant must be a high school senior whose parent or guardian is an active owner of at least 10 percent of an area business employing fewer than 20 persons. Applications may be picked up at the local office of the financial reporting and tax planning service at 933 W. Third, Suite 206.

The Spokane winner will compete with other area winners nationwide for a grand prize scholarship of $4,000.

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MEMO: Associate Editor Frank Bartel writes a notes column each Wednesday. If you have business items of regional interest for future columns, call 459-5467 or fax 459-5482.

The following fields overflowed: CREDIT = Frank Bartel The Spokesman-Review