Court documents reveal a financial scam perpetrated by Bill Bruch to defraud seniors

Two lawsuits in the 1990s show how Bruch defrauded the elderly of more than $1.5 million

FOR IMMEDIATE RELEASE: October 14, 2020

Local Republican candidate Bill Bruch was sued twice for defrauding seniors of more than $1.5 million in the 1990s, according to court documents from the Whatcom County Superior Court. Bruch, who is running for the 10th legislative district House seat held by Rep. Dave Paul, was judged to be in default in both cases and appears to have not even shown up in court.

In the case of Geraldine Dixon vs. William Bruch, case #98-2-01166-8, Bruch was alleged to have built trust with Dixon and her mother Lynda Dixon by serving as a financial planner for them. From 1993 through 1996, he worked with them before asking them for a large amount of money for a new investment he was working on. In early 1996, Dixon and her mother gave Bruch their combined life savings of $148,082.50 after he guaranteed them in writing a 12.5% return on investment. Dixon received small monthly payments from Bruch from March 1996 until July 1997. In August 1997, she received a check from him which bounced because Bruch had already closed the account from which they were written. From that time on, Bruch made no more payments to the Dixons. After Lynda Dixon died in October 1997, Geraldine Dixon sued Bruch seeking a return of the original investment plus interest. Bruch failed to respond to the lawsuit or appear in court. Bruch was declared to be in default on July 8, 1998. Bruch was ordered to pay $178,933.02.

In the case of Partners In Care vs. William U. Bruch III, case # 98-2-01077-7, Bruch was alleged to have perpetrated basically the same scheme. Partners In Care was a trustee for a man named John Blackmore, for whom Bruch worked from 1993 through 1996 as an estate advisor. As in the Dixon case, Bruch purported to be an agent of the “Investment Group of America” and told Blackmore that investing through Bruch would save Blackmore money on taxes, provide a high rate of return, and a steady income, and allow for 100% liquidity. Between October 1993 and September 1995, Blackmore gave Bruch a total of $1,044,225.38. Bruch gave Blackmore receipts and promissory notes for all these amounts, which were to pay interest at 10% annually and be fully due in September or October 1998. Bruch only paid back $27,291.60 of this total sum.

Bruch was served with the summons and complaint about a lawsuit from Partners In Care on behalf of the Blackmore Living Trust on June 5, 1998. Bruch failed to serve or file an appearance or answer to the lawsuit. Bruch was judged to be in default on July 23rd, 1998. The court awarded victory to the plaintiff on August 5th, 1998, stating that “The Court further finds that the above judgment against the defendant, William U. Bruch III, is based upon fraud and the fraudulent acts of the defendant.” The total judgment was in the value of $1,501,540.07.

According to these documents, Bruch defrauded Geraldine Dixon, Lynda Dixon, and John Blackmore of more than $1.5 million combined. It appears that he built trust with them over years, made unrealistic and false promises, and took advantage of them for his own massive financial gain.

Bruch has yet to comment on these lawsuits or explain why someone with this record of financial fraud deserves the support of 10th LD voters.