Convicted Ponzi scammer wants OK to sue his attorney

An Omaha businessman convicted of bilking elderly investors out of millions of dollars wants the Nebraska Supreme Court to reinstate his lawsuit against his business attorney.

Bryan Behrens, 47, had sought to sue his former attorney Christian Blunk in Douglas County District Court for more than $8 million due to his investors. In court filings, Behrens says Blunk gave him bad advice and was to blame for the securities fraud.

But District Judge Patrick Mullen dismissed the case in March because Behrens had sought Fifth Amendment protection from self-incrimination and wanted to postpone the lawsuit because of his then-ongoing criminal case. The judge said Behrens was preventing the civil case from being resolved in a timely manner.

Behrens appealed the decision, which the state Supreme Court will take up on Thursday.

“The dismissal effectively destroys (Behren’s) constitutional privilege to remain silent,” the appeal states.

But Blunk’s attorney says in court filings that Behrens could have sought a protective order preventing his testimony from being used in the criminal case.

Mark Laughlin says Blunk denies the allegations of malpractice. And, in a cross-appeal, Blunk asks that instead of the dismissal, the case be found in his favor. The filing says Behrens never presented evidence connecting Blunk to the fraud.

Behrens says in his appeal that Blunk encouraged him to lure investors through high-interest promissory notes but didn’t explain that those were considered securities under the law, among other things.

Behrens was indicted in April 2009 on 21 federal charges. He pleaded guilty in April to securities fraud and was ordered to spend five years in prison and repay $6.8 million to his victims.

Federal prosecutors said Behrens, who founded the Omaha-based 21st Century Financial Group, collected more than $8 million from about 25 investors between 2002 and 2007. Behrens defrauded mostly elderly investors by soliciting millions under false pretenses, failed to invest those funds as promised and misappropriated and converted investors’ funds to his other business entities, according to the U.S. attorney’s office.

Prosecutors said much of that money went to Behrens’ lavish lifestyle that included two homes, several luxury cars, jewelry and a Husker bus he used to take friends and family to tailgating parties at Nebraska football games.

Behrens faces several lawsuits brought by his investors in federal court.