Petition to Set Aside Accountings

What was requested: This Petition was filed in April 2005 by an LFT remainderman beneficiary to set aside the Lear Family Trust (LFT) accountings and to seek recovery of Trust principal and income and other losses sustained as a result of the improprieties, misconduct, breaches and violations of the Lear Family Trust Agreement and of the Last Will and Testament of William P. Lear, Sr., and 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 (or with the help of):

LFT Trustees:

• James L. Murphy,
• Harold P. Dayton,
• Richard B. Rowley,
• Tommy L. Tucker,
• Dunham Trust Company

accountants and de Facto LFT Trustees:

• GRANT THORNTON, LLP, and
• GRANT THORNTON, LLP's accountant/Trustee James L. Murphy

attorneys:

• David J. Reese, Esq.,
• COOKE, ROBERTS & REESE, LTD.,
• McDONALD, CARANO, WILSON, LLP,

and others.

The Petition and the exhibits thereto allege and document the following violations:

• Failure by the LFT Trustees to provide notice to an entire class of LFT remaindermen beneficiaries, for a period exceeding twenty years without any express exemption from any of them.

• Distribution of corpus in violation of the trust instrument and in violation of the tax laws of the United States (Generation Skipping Tax), Invasion of Trust corpus, transfer of Trust corpus and conversion of Trust corpus.

• The trust accountings submitted by Grant Thornton and Grant Thornton accountant and LFT Trustee, James L. Murphy fail to adhere to any recognized standard and, were produced and submitted in violation of the Rules of Professional Conduct for accountants (AICPA).

• LFT Trustee James L. Murphy was hired and accepted the position of LFT trustee for a fixed monthly fee. James L. Murphy then contracted with Grant Thornton to perform most if not all of the duties of LFT Trustee at the senior partner rate of $250.00/hr. Grant Thornton in turn contracted with their partner James L. Murphy (the LFT Trustee) for the performance of duties of LFT Trustees, resulting in a double-billing scheme whereby Grant Thornton (through senior partner James L. Murphy) performs most if not all of the duties of LFT Trustees and billed the Trust at the inflated accountant rate. Account James Murphy also took the liberty of having numerous highly expensive lunches that he also charged to the Trust.

• Sums unaccounted for in excess of $3 million.

• Art unaccounted for whose value exceeds $250,000 - two Peter Paul Rubens paintings.

• Violations of fiduciary duties and obligations by the LFT Trustees and, their attorneys.

• Violations of the Constitutions of the State of Nevada and of the United States of America by the Second Judicial District Court of Nevada over the span of 22+ years.

• Distributions of capital / corpus to parties not entitled under the Lear Family Trust.

• Sale of the Silver Lake Water Company’s assets to Sierra Pacific Power Company for pennies on the dollar by LFT Trustees who were at the time also members of the Board of Directors of Sierra Pacific Power Company.

• Sale of royalty rights for pennies on the dollar without the required consent and agreement of the real party in interest.

• Real estate fraudulently conveyed to third parties.

Just to name a few.