Monday, September 10, 2012

Probate Judge OK's Payment for Tustee Under Investigation

John E. Larkin will receive $50,000 from the trust fund of an 88-year-old heiress while the FBI probes his handling of her finances.

The Los Angeles County probate judge who oversees an elderly heiress' trust fund approved $50,000 in compensation for a Kabbalah Centre official who is under criminal investigation for his handling of the woman's financial affairs.

Los Angeles County Superior Court Judge Michael I. Levanas signed off on John E. Larkin's payment request without comment. The money covers work that Larkin, a veteran Hollywood financial advisor, performed last year as a trustee for an $11-million family trust fund benefiting 88-year-old Susan Strong Davis. The probate court approves such payments because the trust fund was set up by Davis' mother's will.

Davis' nieces have said she has suffered from dementia for several years, a period in which Larkin sold her a vacant lot he owned in Beverly Hills for what public records indicate was a $300,000 profit. Davis, who has lived in the same home in Palos Verdes Estates for three decades, borrowed more than $2 million from her trust fund to buy the Beverly Hills land and build a four-bedroom home there.

After a Times report detailing the transaction and a $600,000 donation she made to the Kabbalah Centre in 2005, police in Palos Verdes Estates launched an investigation into her finances, an inquiry taken over last month by federal agents. The IRS has been investigating the Kabbalah Centre for possible tax evasion since 2010. Larkin helps oversee the religious organization's finances.

Through his lawyer, Larkin has said he did nothing wrong and consistently acted in Davis' best interests.

Full Article and Source:
Probate Judge OKs Payment for Trustee Under Investigation

See Also:
Public Guardian Possibly to be Appointed Conservator of Heiress


Diane said...

The judge approved a $50,000 fee "without comment" to Larkin, who is under investigation for the handling of this woman's finances?? Wow! If that doesn't scream "collusion" I don't know what does! The probate courts are totally out of control!

StandUp said...

Are you kidding me? Los Angeles County Superior Court Judge Michael I. Levanas should be disciplined for this.

Anonymous said...

This is a familiar story.