Supplement Summary to Petition to Set Aside Accountings
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CODE: 4105 Patrick Christopher Lear 1805 North Carson Street #120 Carson City , Nevada 89701 Phone: 775-721-9643 Fax: 775-884-4211 In Propria Persona
IN THE SECOND JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA IN AND FOR THE COUNTY OF WASHOE
Supplement Summary to Petition to Set Aside Accountings COMES NOW Patrick Christopher Lear, Petitioner, as named heir in the Estate of William Powell Lear and beneficiary of the The William P. Lear and the Moya Olsen Lear Family Trust Agreement (LFT) dated March 9, 1978 and submits this Summary to Petition to Set Aside Accountings (Summary) filed in the instant case on April 26, 2005. The instant Summary of the Petition to Set Aside Accountings is provided pursuant to Judge Peter I. Breen's directive made during an out of court meeting held in chambers on April 29, 2005. Each and every allegation and paragraph in Petitioner's Petition to Set Aside Accountings is reiterated and incorporated herein in its entirety so as to show and establish Respondents' systematic scheme and continuing pattern of misconduct. References in the Summary text to certain sections in the Petition to Set Aside Accountings do not exclude other sections which are relevant to the systematic scheme to deprive LFT remaindermen and other beneficiaries of due process of law and their rights and interests in the LFT assets and corpus. DEFINITIONS For the purpose of shortening this summary, the following definitions apply: "BOMBARDIER" means "BOMBARDIER, INC. and/or CANADAIR, LTD." "BV" means "BARNARD, VOGLER & CO." "CANADAIR" means "CANADAIR, LTD and/or BOMBARDIER, INC." "CR&R" means "COOKE, ROBERTS & REESE, LTD." " DAYTON " means "Harold P. Dayton." "DTC" means "Dunham Trust Corporation." "G3T" means "GRANT THORNTON, LLP." "LFT Trustees" means "Harold P. Dayton, James L. Murphy, Richard B. Rowley"; if "LFT Trustees" is used in the context of acts or omissions which occurred after August 30, 2004, "LFT Trustees" means "James L. Murphy, Tommy L. Tucker." "MURPHY" means "James L. Murphy." "REESE" means "David J. Reese, Esq." "ROWLEY" means "Richard B. Rowley." "TUCKER" means "Tommy L. Tucker." SUMMARY The Petition to Set Aside Accountings was filed on April 26, 2005, to: (1) obtain a true, correct, complete and accurate forensic audit of the LFT for the years 1978 through 2004, (2) to seek recovery of Trust principal, income and other losses sustained as a result of Respondents' improprieties, misconduct, breaches and violations of the LFT, (3) to adjudicate and correct violations of the Constitution and laws of the State of Nevada and of the Constitution and laws of the United States of America committed by LFT Trustees, their attorneys REESE, CR&R, McDONALD, CARANO, WILSON, LLP, GRANT THORNTON, accountant MURPHY and others who may be named at a later date, and (4) to completely account for the LFT before turning management over to new trustees. Petitioner having been deprived of legal notice, Trust accountings and any other information regarding the LFT for a period exceeding twenty one years, has recently discovered accounting omissions, errors, conversions and misappropriations as far back as 1978 which taint every LFT account submitted to this Court from that date and petitions this Court to set aside all of the LFT accounts since 1978 and more particularly from January 1983 to the present pursuant to NRS §165.120. Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE knew or should have known that they had a duty to keep all the beneficiaries of the LFT on notice of litigation, Court actions, accountings and informed of trust activities and knew or should have known that Respondents had a duty of undivided loyalty to all the LFT's beneficiaries. While knowing the foregoing, Respondents failed, neglected and refused to perform according to the duties and obligations they were and are bound to perform under the LFT agreement, the common law, the Constitution and laws of the State of Nevada, the Constitution and laws of the United States of America. Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE knew or should have known that the management requirements of the LFT had been agreed to and Ordered by this Court by the Agreement of June 30, 1981, the Stipulation of April 30, 1982, the Petition of July 23, 1982, and the Court Orders of August 13, 1982, January 17, 1983 and August 23, 1983 but while knowing the foregoing, failed, neglected and refused to abide by this Court's Orders. For a period exceeding twenty years, LFT Trustees through CR&R and/or REESE, while abrogating Petitioner's rights to due process and equal protection of the law, engaged in malpractice and abuse of process by misrepresenting and deceitfully influencing the Second Judicial District Court and other Courts that all parties entitled to legal notice had been notified according to law. For a period exceeding twenty years, LFT Trustees through CR&R and/or REESE, while abrogating Petitioner's rights to due process and equal protection of the law, did not honestly maintain and prudently manage the LFT in the best interest of all the beneficiaries, did not provide true, correct, complete and accurate accountings of the LFT as required by the LFT agreement and as required by law. For a period exceeding twenty years, LFT Trustees through CR&R and/or REESE, while abrogating Petitioner's rights to due process and equal protection of the law, did not distribute the income received from the LFT in accordance with the directives of the creator of the Trust, William P. Lear, Sr and further disposed of and distributed trust assets and corpus to those who are not entitled to receive them. By using methods of withholding information, accountings, and benefits and by alternately threatening and bribing certain beneficiaries, and obtaining a hold-harmless agreement from two out of the three classes of beneficiaries under the LFT by suggesting under the false pretense that a hold-harmless agreement might save the Trust from having to spend in excess of $20,000 per year on Errors and Omissions insurance coverage, a 254% increase over the previous year, LFT Trustees and their co-conspirators effectively created a conflict of interest and discriminatory preference between beneficiaries which LFT Trustees used to induce further changes in the LFT and to silence any dissent over the management and distribution of the LFT by any outright and income beneficiary of the LFT. Having effectively corrupted the Trust and compromised the outright and income beneficiaries, LFT Trustees, Trustees' attorneys CR&R and/or REESE, GT with the aid of others including but not limited to MCDONALD, CARANO, WILSON, LLP , proceeded to manage the LFT in an unethical, unauthorized, imprudent and self-serving manners with no regards to and in violation of the intent of William Powell Lear, Senior (WPLSr), and in violation of the laws and Constitution of the State of Nevada and the laws and Constitution of the United States of America . While engaging in this continuing pattern of conduct and breach of trust, LFT Trustees, GT, CR&R and/or REESE also engaged in practices of self-dealing, imprudent, and fraudulent billings to the Trust. Respondents did secretly and unlawfully convert and transfer highly valuable LFT property, misappropriated and misused Trust funds, failed and refused to give notices , reports and other necessary information to Petitioner and other remaindermen beneficiaries, and failed and refused to provide true, correct, complete and accurate accountings of the LFT, continually offered false and misleading information to the LFT income and outright beneficiaries and continually made misleading and materially false statements to this and other Courts for the purpose of deceiving others into believing that the LFT was being managed in a prudent and lawful manner and in the best interest of all the beneficiaries. At all times relevant to the Petition to Set Aside Accountings LFT Trustees through CR&R and/or REESE while abrogating Petitioner's rights to due process and equal protection of the law, acted in a hostile, retaliatory, and vindictive manner toward LFT beneficiaries seeking to enforce their rights and secure their interest in the LFT. In 1991, 1993 and 1996, Respondents LFT Trustees, GRANT THORNTON, accountant MURPHY, CR&R and/or REESE petitioned this Court for changes in the terms and conditions of the LFT, made changes to agreements that were binding on the LFT beneficiaries and heirs of WPLSr as for instance the CANADAIR option agreement, all with the approval of those LFT beneficiaries who were to benefit from the change and without the knowledge and consent of those LFT beneficiaries at whose expense the changes were being made. This modus operandi pervades the administration and accountings of the LFT, with expenses and losses being charged against the rights and interests of LFT remaindermen beneficiaries while income or gains are distributed to income and outright beneficiaries with little or no regard to the LFT agreement or even the deceitfully obtained Court Orders. None of the accounts from 1983 through 1992, inclusive, shows any remaindermen transactions thereby making it impossible for this Petitioner and other LFT remaindermen beneficiaries to secure and protect their rights and interest in and under the LFT. From 1993 to 2000, the LFT accounts do not present a comprehensive report of the separate and conflicting interests of each of the three classes of beneficiaries. RIGHTS & OBLIGATIONS This Petitioner is entitled to accountings, inventories, legal notice, books, papers, records, and other relevant LFT information as is normally and legally due any trust beneficiary. Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE owe undivided loyalty to all LFT beneficiaries and with respect to the LFT and its beneficiaries, Respondents have a perfect obligation to obey the Last Will and Testament of WPLSr, the LFT, the Constitution and laws of the State of Nevada and the Constitution and the laws of the United States of America. Further, LFT Trustees' appointment and trustees' fees were to all be confirmed by this Court. There are no provisions for secret trustees, nor does an LFT Trustee have the power to transfer his office to another without approval of this Court and notice to the LFT's beneficiaries. Respondents CR&R and/or REESE's services to the LFT Trustees and the LFT beneficiaries are to be provided pursuant to the retainer agreement dated Sept. 1, 1983, according to this Court's Orders and according to law. DE FACTO TRUSTEEGRANT THORNTON, LLP has been acting as and is the de facto Trustee of the LFT. GT performs and bills for the performance of the duties of LFT Trustees. GT also performs and bills for the performance of accounting for the LFT primarily through GT Senior Partner and accountant MURPHY. Further, MURPHY charges GRANT THORNTON for his accounting services. Respondents LFT Trustees DAYTON, ROWLEY, DTC and TUCKER knew that GT and MURPHY as accountant and as Trustee were one and the same and that they maintained and currently maintain common addresses, telephone numbers, fax numbers, email addresses, office space and equipment so that no distinction between GT and the LFT Trustees or between GT and MURPHY can be made. GT and MURPHY have been and are engaged in defrauding the LFT by a scheme of double billing for the performance of Trustees' duties. Neither DAYTON and ROWLEY, nor DTC and TUCKER, nor BV denounced the double-billing fraud perpetrated by GT and accountant MURPHY upon the LFT. LFT Trustees MURPHY and TUCKER are continuing the obstruction and obfuscation, which started under DAYTON , MURPHY and ROWLEY, while being aided and abetted by CR&R and/or REESE and others. ACCOUNTINGS On August 13, 1982, this Court ordered the accountings of the LFT to be rendered pursuant NRS §165.030 through §165.120. None of the accountings presented by Respondents to this Court from 1982 to and including 2003 comply with the statutory requirements set forth under NRS §165.030 through §165.120. Further, Respondents have made misrepresentations in each and every accounting presented to this Court from 1982 to and including 2000 as for instance that this Petitioner had been provided with notice and a copy of the accountings when LFT Trustees, CR&R and/or REESE knew the statements and representations were false and that the accountings neither conformed with NRS §165.030 through §165.120, nor NRS 165.135 as misrepresented. Respondents LFT Trustees, GRANT THORNTON, accountant MURPHY, CR&R and/or REESE knew or should have known that by misaccounting and making misrepresentations in each every annual intermediate accounting presented to this Court from 1982 through 2003, Respondents continually violated the policy of this State. NRS §628.002. ACCOUNTING STANDARDS The accountings produced, filed and/or served upon LFT beneficiaries by Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE since 1987 do not comply with accounting standards. Respondents also failed and neglected to report conflicts of interest that were material to the management and accountings of the LFT and knowingly and willfully kept LFT remaindermen beneficiaries uninformed and thereby deprived this Petitioner and other LFT beneficiaries similarly situated of legal notice, due process of law and equal protection of the law. Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE knew or reasonably should have known that three basic principles of internal controls govern sound business accounting: 1) segregation of duties, 2) timeliness, and 3) documentation, but failed, neglected and refused to implement these basic principles. MURPHY controls most if not all aspects of the LFT, the LFT accountings have been produced, filed and served in an untimely manner, some by as much as three years, for all but three years during the period 1983 through 2003 and Respondents have failed, neglected and refused to provide this Petitioner with relevant notice, documents, accountings and other supporting books, papers and records, expending significant sums of LFT funds preventing this Petitioner and other LFT beneficiaries from gaining access to true, correct, complete and accurate LFT accounts. Further, the accountings presented to this Court are not understandable by this Petitioner and other LFT beneficiaries. FIDUCIARY ACCOUNTING STANDARDS Respondents LFT Trustees, GT, accountant MURPHY, CR&R, REESE and BV, were all paid from LFT funds and assets, knew or should have known that there are six fiduciary accounting principles and while knowing the foregoing, failed and neglected to implement these principles in the LFT accountings presented to this Court from 1983 to the present. STANDARDS FOR COMPILATION ENGAGEMENTS Respondents LFT Trustees, GT, accountant MURPHY and CR&R and/or REESE, produced filed and served upon certain LFT beneficiaries the LFT accountings in compilation form and knew or should have known that the Statement on Standards for Accounting and Review Services (SSARS) No. 1 establishes the standards by which compilation and review engagements are performed under existing standards and that a CPA must at least compile financial statements that he or she submits to a client or others, and report on them accordingly and while knowing the foregoing, Respondents failed and neglected to apply SSARS No. 1 to the accounts produced, filed and served upon this Court and certain LFT beneficiaries for the years 1983 to 2003, inclusive. $3,251,662 UNACCOUNTED FOR Both the LFT and the Estate of WPLSr were being accounted for by MURPHY AND GT for the years 1990 and 1991. GT and MURPHY used their control over these accounts as well as the lack of segregation of duties to shuffle amounts in the accounts thereby causing an exaction that exceeds by $3,251,662 the actual amounts due to the United States of America by and through the IRS from the Estate of WPLSr and/or the LFT. Neither Petitioner nor a Professional CPA with forty years experience in tax matters can understand and reconcile the accounts presented by Respondents to the Court and LFT beneficiaries. There are significant sums unaccounted for in the LFT's annual accountings since 1991 that were caused by the misaccountings of Respondents. SUMS EXCEEDING $110,000,000 UNACCOUNTED FOR One of the assets of the LFT were royalties on three types of aircraft. The LFT Trustees entered into a Settlement Agreement to liquidate the rights of the LFT without due notice to Petitioner and other beneficiaries similarly situated, as required by contract, law and as ordered by this Court. The unlawful and fraudulent liquidation of the royalty rights was not in the best interest of this Petitioner and other remaindermen beneficiaries similarly situated. As a result of the fraudulent settlement agreement entered into by Respondents, there are to date in excess of $110,000,000 in principal unaccounted for in addition to interest thereon. There are significant sums unaccounted for in the LFT's annual accountings since 1996 as a result of the unauthorized sale of the LFT's royalty asset in Bombardier, Inc. FIRST AND SECOND INACCURATE WRITE-OFFS In at least two instances, Respondents LFT Trustees, GRANT THORNTON, Accountant MURPHY, CR&R and/or REESE produced, filed and served upon certain beneficiaries and this Court, accountings which show write-offs against an asset in an amount greater than the assets' reported value. There are significant sums unaccounted for in the LFT's annual accountings since 1991 as a result of the excessive write-offs on certain assets. RUBENS PAINTINGS While Trustees continue to obstruct and prevent this Petitioner from obtaining the schedules of assets of the LFT known as Schedule A and Schedule B, two very valuable Peter Paul Rubens paintings which were recorded to be the property of WPLSr, before the time of his death are unaccounted for since 1978. This Petitioner has caused interrogatories to be mailed to Respondents LFT Trustees, TUCKER, DTC and CR&R and/or REESE with regard to these paintings but Respondents have failed, neglected and refused to respond to date. There are significant assets unaccounted for in the LFT's annual accountings since 1978 as a result of the transfer and conversion of these paintings to third parties. RIVERHOUSE On March 9, 1978, Moya Olsen Lear, wife of WPLSr pledged and committed her interest in and to the Verdi dwelling and property, "principal residence" known as Riverhouse and placed it in the LFT in exchange for a life interest in the LFT in the form of the right to possess, occupy, and use the principal residence without charge during her lifetime and was a beneficiary of the LFT. Riverhouse was transferred and converted to the Moya Olsen Lear Trust by Respondents and MURPHY who is also the Trustee for the Moya Olsen Lear Trust. This Petitioner has a loss and damage as a result of said transfer and conversion. There are significant assets unaccounted for in the LFT's annual accountings since 1978 as a result of the transfer and conversion of Riverhouse to third parties. SILVER LAKE WATER COMPANY SALE The assets of Silver Lake Water Company (SILVERLAKE), an asset of the LFT, were sold to Sierra Pacific Power Company (SPPC) in 1999, at which time two of the three LFT Trustees were on the Board of Directors of said SPPC and held a significant amount of voting-share stock in SPPC's parent company SPR resulting in a substantial conflict of interest. Under the terms and conditions of the sale of LFT assets to SPPC, the sale of said assets was not in the best interests of LFT beneficiaries as the assets were sold to SPPC at a substantially lower price than the fair market value of the company, SILVERLAKE. LFT Trustees structured the deal to keep the price low and sold SILVERLAKE's assets instead of selling the company, which would have commanded a higher price. LFT Trustees' conflict was not disclosed to this Court or to the beneficiaries nor did BV's audit report said conflict of interest. The allocation and distribution to the LFT beneficiaries of the proceeds from the sale of SILVERLAKE was not made according to the Last Will and Testament of WPLSr or the LFT and was made to the detriment and damage of the LFT remaindermen beneficiaries and defrauded these same remaindermen beneficiaries of a valuable asset and of their rightful interest under the LFT. There are significant sums unaccounted for in the LFT's annual accountings since 1999 as a result of the sale and transfer of the SILVERLAKE assets to SPPC. TWO SETS OF BOOKS Respondents LFT Trustees, Grant Thornton and accountant Murphy are operating the LFT with two sets of books, reporting one set to the IRS under penalty of perjury and the other, which contains amounts significantly different from those reported to the IRS, to this Court and to the LFT income and outright beneficiaries. The distributions made to LFT beneficiaries which were reported by Respondents LFT Trustees, GT and accountant MURPHY to the IRS are significantly lower than those reported to this Court in the LFT's charge and discharge statements, in the years 2000, 2001, 2002 and 2003. In the year 2001 (and subsequent years), Respondents reported a changed reporting basis on the LFT's charge and discharge statement to the income tax basis but the significant discrepancies between the distributions to LFT beneficiaries reported to the IRS and those reported in the LFT accountings remain. There are significant sums unaccounted for in the LFT's annual accountings since 1991 as a result of the distribution of Trust corpus and LFT remaindermen beneficiaries' funds to outright and income beneficiaries, which was not disclosed to the IRS. ASSETS UNACCOUNTED FOR DURING CERTAIN YEARS During the year 2000, the LFT invested significant sums in notes secured by real estate and apparently held them for a number of years to and including 2003. Said assets are unaccounted for in the inventory of assets of December 31, 2002 and January 1, 2003. The interest derived on such asset is also believed to be unaccounted for. TRUSTEES PROHIBITED FROM INVADING TRUST CORPUSOn March 9, 1978, WPLSr created the LFT as a generation skipping Trust and directed in his Last Will and Testament that the assets passing under his estate be transferred to the LFT and administered and disposed of in accordance with the terms and conditions of the LFT existing at the time of his death. LFT Trustees also attested to the IRS in the LFT's tax returns for the years 2000, 2001, 2002 and 2003 and that the LFT is a generation skipping trust. Petitioner has reason to believe that Respondents LFT Trustees, accountant MURPHY and GT made similar representations to the United States through the Internal Revenue Service on the LFT's tax returns for each and every year from 1978 through 1999, inclusive. Neither the LFT agreement, nor Nevada State law nor Federal law or the Stipulation between the Estate of WPLSr / LFT and the IRS allow respondents to change the terms and conditions of the LFT and to invade or distribute corpus to LFT income beneficiaries or remaindermen beneficiaries' interest to outright beneficiaries. In fact, Federal law specifically prohibits the distribution of trust corpus designated for skip persons, i.e. remaindermen, to LFT income beneficiaries or to anyone other than those beneficiaries defined as "skip persons" under federal law. Distribution of LFT corpus also violates the Stipulation of April 10, 1991 between the Estate of WPLSR / LFT and the IRS and Respondents LFT Trustees have no authority to seek this Court's approval for a change in the allocations and distributions of LFT sums (1) in violation of the intent of WPLSr, (2) in violation of WPLSr's Last Will and Testament, (3) in violation of article FOURTH of the LFT, (4) in violation of article FIFTH of the LFT, (5) in violation of article SEVENTH of the LFT, (6) in violation of article NINTH of the LFT, (7) in violation of the Constitution and laws of the United States of America, (8) in violation of the Constitution and laws of the State of Nevada, (9) in violation of NRS chapter 163, (10) in violation of the Uniform Principal and Income Act - NRS chapter 164 and (11) in violation of Petitioner's rights to due process and equal protection of the law, (12) without the knowledge and consent of the LFT remaindermen beneficiaries. Further, this Court did not and does not have the authority to allow for or order a change in the terms and conditions of the Last Will and Testament of WPLSr or of the LFT, to override or violate the Constitution and laws of the United States of America , or the Constitution and laws of the State of Nevada . NRS §163.023. Despite having knowledge of the LFT's article SEVENTH spendthrift provision which protects the interest of each and every beneficiary of the LFT from alienation, Respondents LFT Trustees, CR&R and/or REESE sought changes in the terms and conditions of the LFT which were made at the expense and to the damage of and without the knowledge or consent of LFT remaindermen beneficiaries. Respondents LFT Trustees, GT, accountant Murphy, CR&R and/or REESE knew or should have known that they were not authorized to solicit the advice of and signature of LFT income beneficiaries and outright beneficiaries in the arbitrary determination, allocation and distribution of LFT income and principal. INVASION, TRANSFER & CONVERSION Respondents LFT Trustees, GT, accountant Murphy, CR&R and/or REESE solely used remaindermen beneficiaries' equitable interest in the LFT for the development of land parcels and then subsequently allocated and distributed the investment and / or proceeds due these same remaindermen beneficiaries to LFT outright beneficiaries, income beneficiaries and third parties in violation of the Last Will and Testament of WPLSr, the LFT, the principles of equity, the Constitution and laws of the State of Nevada and the Constitution and laws of the United States of America. Respondents knew or should have known that they were not authorized and were prohibited from engaging in such discriminatory, inequitable, unjust, imprudent and fraudulent management practices. Respondents LFT Trustees, GT, accountant Murphy, CR&R and/or REESE knew or should have known that they are liable to the remaindermen beneficiaries to make restitution of sums unlawfully and wrongfully allocated, distributed or paid out. Respondents LFT Trustees, GT, accountant Murphy, CR&R and/or REESE developed and implemented a systematic scheme and continuing pattern of conduct to defraud LFT remaindermen beneficiaries to the benefit of these same Respondents, the LFT outright beneficiaries, income beneficiaries, and others, after having corrupted and compromised the LFT outright beneficiaries and income beneficiaries for the purpose of furthering their systematic scheme to defraud the LFT's remaindermen beneficiaries and to suit their self-serving desires. There are significant sums unaccounted for in the LFT's annual accountings since 1991 as a result of the unauthorized invasion of the LFT's corpus by Respondents. VIOLATIONS OF RIGHTS AND BREACHES OF DUTIES AND OBLIGATIONS Respondents LFT Trustees, accountant MURPHY, CR&R and/or REESE, GRANT THORNTON, TUCKER and DTC engaged in hostile, unethical and malicious acts and bad faith pleading, had covert and sanctionable communications with the State District Court Judge, misused Trust funds to disqualify and wholly abrogate and alienate Christian William Lear from his rights and interests in the LFT in violation of the Last Will and Testament of WPLSr and the LFT, maliciously attempted to disqualify this Petitioner from the LFT on unfounded, bare and baseless accusations all for the purpose of obstruction, hindrance and delay and to conceal Respondents multiple breaches of duty, breaches of Trust, breach of oath, breach of contract, mismanagement, misallocations of funds, fraudulent activities and to conceal their untruthful, incorrect, incomplete and inaccurate accountings. There are significant sums unaccounted for in the LFT's annual accountings since 2000 as a result of the unauthorized hostility, needless and self-serving litigation to prevent any scrutiny into the LFT's affairs, management, and accounting. SUCCESSOR TRUSTEES TUCKER & DUNHAM TRUST COMPANYRespondent TUCKER by and through DTC has failed to produce and file the LFT accountings for the year 2004 in a timely manner according to the provisions of Nevada State law, has failed, refused and neglected to report the continued centralized control exerted by accountant MURPHY and GT and has recently entered the LFT and effectively replaced the recently deceased Trustee DAYTON as a straw-man Trustee and has been and is currently billing and receiving compensation for services that he has not performed. While knowing that the LFT Trustees were required to produce their accountings in accordance with NRS §165.030 et seq. Respondents TUCKER by and through DTC failed, neglected and refused to report the LFT Trustees' failure, neglect and refusal to abide by this Court's Order of August 13, 1982. NRS 163.110. Respondents TUCKER by and through DTC, as professional Trustees knew or should have known the laws, rules and regulations of the State of Nevada in regard to the duties and obligations of Trusts and Trustees, and while knowing and having access to LFT books, records, documents, minutes and other information, aided and abetted LFT Trustee MURPHY, GT, accountant MURPHY, CR&R and REESE in the violation of laws of the State of Nevada, breach of the LFT, the violation of the Last Will and Testament of WPLSr as well as multiple acts of contempt of this Court's Orders, failed and refused to report said violations and engaged in new violations since his appointment and confirmation as LFT co-Trustee. There are significant sums unaccounted for in the LFT's annual accountings since 2004 as a result of the failure of TUCKER, by and through DTC to perform duties for which he was paid. TRUSTEES' CONTINUAL DISREGARD OF ANY LIMITATIONS Respondents LFT Trustees, accountant MURPHY, CR&R, REESE, GT, TUCKER and/or DTC petitioned this Court for an Order seeking partition for the LFT outright beneficiaries of unliquidated non-cash trust assets under terms and conditions not amounting to an arm's-length transaction. Respondents have misused LFT funds in the preparation of their unauthorized petition. Respondents LFT Trustees, accountant MURPHY, CR&R and/or REESE, GT, TUCKER and DTC knew or should have known that they were precluded by this Court's Order to seek partition for the LFT outright beneficiaries of unliquidated non-cash trust assets and that Respondents are to make no distribution of non-cash assets until such time as the non-cash assets are converted to cash and the expenses attributable to the particular asset are paid. Respondents LFT Trustees, accountant MURPHY, CR&R and/or REESE, GT, TUCKER and DTC knew that the outright beneficiaries already received benefits of disbursement from the LFT in excess of the amounts specified by WPLSr in his Last Will and Testament and in the LFT. The excessive distributions, violations of law, breaches of fiduciary duties, arbitrary and inequitable management practices by Respondents were known of at least one outright beneficiary who is willing to let the violations continue on the condition that she can continue to derive a benefit thereby showing her corruption and compromise. TRUSTEES' ATTORNEYS Respondents CR&R and REESE were engaged and retained by LFT Trustees for the primary purpose of assisting Respondents LFT Trustees, accountant MURPHY and GT in producing, filing and serving the LFT accountings pursuant to NRS §165.030 through §165.120, as ordered by this Court, and to act according to the highest ethical standards. Respondents CR&R and/or REESE, actively participated and aided and abetted LFT Trustees, GRANT THORNTON, and accountant MURPHY in abrogating, alienating and prejudicing this Petitioner's rights to due process and equal protection of the law to the damage, detriment and expense of this Petitioner by willfully, knowingly, secretly and arbitrarily (1) changing the terms and conditions of the LFT, (2) changing the allocations and distribution provisions of the LFT, (3) entering into Settlement Agreements, (4) entering into at least one Asset Purchase Agreement, (5) neglecting and refusing to serve this Petitioner with any legal notice, notice of litigation and accountings. When Petitioner sought to enforce his rights to and under the LFT, Respondents CR&R and/or REESE engaged in unethical behavior, misconduct and malpractice by (1) participating in a covert, secret, ex-parte, and sanctionable letter writing scheme to District Court Judge Breen to influence the outcome of the case, (2) wrongfully and fraudulently billing the LFT and receiving payment from the LFT for their unethical conduct, breaches, violations and frauds including but not limited to providing legal and professional services to certain LFT income and outright beneficiaries on private matters at the expense of the LFT and allocated to LFT remaindermen beneficiaries, (3) obstructing Petitioner's discovery, (4) engaging in willful abuses and violations of the Constitution and laws of the State of Nevada, the Nevada Supreme Court Rules of Professional Conduct and the Constitution and laws of the United States of America for the purpose of concealing breaches of contract, breaches of oath, breaches of Trust, misaccountings and fraudulent transfer and conversion of Trust property, thereby damaging and defrauding this Petitioner. There are significant sums unaccounted for in the LFT's annual accountings since 1983 as a result of, including but not limited to, inappropriate billings for services not rendered, improper accountings, willful failure and neglect to provide legal notice to this Petitioner and other LFT remaindermen beneficiaries and multiple breaches of contract by CR&R and/or REESE. CONCLUSION Petitioner has been damaged by the collusive, deceitful, discriminatory, dishonest, fraudulent and unethical acts and omissions of Respondents LFT Trustees, accountant MURPHY, GT, CR&R and REESE and the accountings produced, filed and served upon certain LFT beneficiaries for the years 1983 through 2003 which do not comply with accounting standards, fiduciary accounting standards, compilation standards, the Orders of this Court, NRS §165.030 through NRS §165.120, the Constitution and laws of Nevada or the Constitution and laws of the United States of America, and the allocations which are shown in the various accountings represent the discriminatory preference of, and the corruption and compromise by Respondents LFT Trustees, GT, accountant MURPHY, CR&R and/or REESE. Respondents refusal and obstructive behavior toward this Petitioner and the hostile acts and misrepresentations of fact and law including the undue influence exerted upon this Court to wholly abrogate this Petitioner's brother, Christian William Lear, in and under the LFT, were improper uses of LFT funds, attempts at intimidating this Petitioner from enforcing his rights to and under the LFT and concealing the fraud and damage perpetrated against this Petitioner and other LFT beneficiaries similarly situated. Finally, in addition to the foregoing, Respondents willful failure and neglect to serve this Petitioner with any accountings for the years 1983 through 2000, inclusive, results in this Petitioner to request that the LFT be placed in the care of an independent receiver and that each and every one of the LFT accountings from 1978 through 2003, inclusive be set aside in their entirety and to request a forensic and independent accounting of the LFT ab initio. The relief requested as set forth in the Petition to Set Aside Accountings is reasonable and the Court can afford such relief. DATED this ____9th_______ day of ____May_____, 2005
<signed> Patrick Christopher Lear 1805 North Carson Street #120 Carson City , Nev. 89701 Tel: 775-721-9643 Fax: 775-884-4211 |
