Tuesday, October 5, 2010

CT: Accountant Ordered to Repay Tusts $4.2 Mil

Probate Judge James Kelley has ruled that Norwich accountant F. Robert LaSaracina "willfully mismanaged" nine family trusts known collectively as the Kauppinen Trusts and must repay them more than $4.2 million.

Kelley, in a decision filed in Norwich Probate Court, rejected LaSaracina's accounting of his handling of the estate as trustee, finding that LaSaracina engaged in self-dealing with regard to trust assets; commingled trust assets with personal business assets; and encumbered trust real estate with "ill-advised and excessively expensive loans … for no reasonable purpose discernable by this court."

LaSaracina, Kelley found, "has caused irreparable harm to the trusts by 'lending' money … to other clients … family-owned business interests and client-owned businesses in derogation of the fiduciary duties (as trustee)."

Full Article and Source:
LaSaracina Ordered to Repay $4.2 Million to Family Trusts

2 comments:

Bob said...

Good news!

Thelma said...

Repay? And if he doesn't, then what?