Farash Corp. and the trustees of assets belonging to real estate magnate Max Farash and his late wife charge in court papers that the couple’s daughter and grandnephew improperly diverted more than $12 million from the company and the ailing Farashes over a period of three years.
The allegations against Lynn Farash and Matthew Aroesty were laid out in two separate lawsuits filed in state Supreme Court on Tuesday by the company and the guardian of Max Farash in one case, and Canandaigua National Bank, the trustee of Marian Farash’s trust, in the other.
Speaking on behalf of Lynn Farash, her lawyer, Michael Wolford, said she was “disappointed” with the filing of the lawsuits because she believed the matters had been settled. He added that counterclaims would be filed against her parents’ trusts and the company.
The first lawsuit claims Lynn Farash and Aroesty, as self-appointed officers of the real estate company, squandered as much as $10 million by enriching themselves with excessive compensation packages, authorizing unnecessary work on company property, charging the company for non-business travel, and providing gifts, loans and other benefits to family and friends.
In the second lawsuit, the bank alleges that Farash and Aroesty abused their joint powers of attorney by improperly liquidating nearly $2.4 million in assets belonging to Marian Farash. The proceeds were transferred to an interest-bearing checking account in Marian’s name for which her daughter was the sole signatory, according to the lawsuit.
The court actions are the latest outgrowth of a protracted and contentious seesaw legal battle over the guardianship and wills of Max and Marian Farash since both were declared mentally incapacitated in April 2007. Max, 96, currently resides in a Webster nursing home. Marian died in July 2007.
In the last six months alone, a state judge sided with Lynn Farash’s bid to stop her father’s court-appointed guardian from selling off his Brighton estate and authorities brought criminal charges against Aroesty for allegedly stealing more than $50,000 from the company.
Full Article and Source:
Lawsuits Accuse 2 of Diverting $12M From Farasch Corp., Family Fortune
See Also:
Farash Daughter Fighting for Her Interitance
6 comments:
I feel so bad for the Farash family. The guardianship has freely taken untold amounts in "fees" -- and that's ok with the court.
I believe because the Farash family speaks up, they are being retaliated against by the guardian and that's WRONG!
Think Max Farash would want his money spent harassing his daughter and nephew with litigation? I don't.
The attorneys are the vultures here in my opinion.
This is what they do: attack the family and stand on their high horse while doing it (and while collecting their exorbitant fees).
I am sorry, Farash family.
Here's a lesson learned. They say money can't buy happiness and this is proof of it. Max Farash has more money than he could spend in several lifetimes. But, where does it get him and his family now? Now, he and his family are targets of greed.
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