Richard Simmons' Brother Lenny Speaks Out About Legal Battle Over His Estate: 'Contrary to His Beliefs' (Exclusive)

The family of the late fitness icon has responded to a petition filed by Simmons' house manager, Teresa Reveles

By Cara Lynn Shultz

The family of Richard Simmons has replied to a court filing from the late fitness icon’s house manager Teresa Reveles, who claimed she was pressured into giving up her role as “co-trustee” of Simmons’ considerable estate.

In an exclusive statement to PEOPLE on Oct. 30, Simmons' brother Lenny said, “First, I am solely interested in protecting and maintaining my brother’s legacy. It was never my intention to play this out in public, but due to circumstances beyond my control, I have been forced to do so."

The statement continues, "Second, we have filed papers with the court that address and refute what Teresa has claimed. They also provide a brief summary of the reasons I declined Teresa’s request to serve as co-trustee and my concerns about why she is proceeding with this litigation."

Reveles, 73, filed a petition against Lenny, 78, on Sept. 25. In the petition, Reveles stated that after “an open casket viewing of Richard’s body," Lenny and his wife Cathy Simmons “immediately” took her “directly to a meeting … to discuss Richard’s financial affairs.” 

The petition referred to Lenny Simmons' actions as a “nefarious scheme,” with Reveles, who is not a native English speaker, claiming she did not understand what she was signing. She also alleged that Lenny colluded with Simmons' former manager Michael Catalano.

"The criticisms of Michael Catalano are unjustified," Lenny said in his statement. "Michael was Richard’s longtime manager and his friend. Michael worked tirelessly for Richard throughout his life, often without being compensated, and is continuing to do that even after his death. It is a shame that Teresa is attempting to tarnish his reputation and harm his career."

The beloved fitness star died on July 13, two days after he fell in his home. Reveles discovered Simmons unresponsive on his bedroom floor and called 911. His death at age 76 was ruled accidental, the result of “blunt traumatic injuries” he suffered during his fall. 

Tom Estey, longtime spokesperson for the Simmons family, provided PEOPLE an exclusive statement at the time of Reveles' filing, saying Richard Simmons “would be heartbroken to learn of Teresa’s greed and insulted that she would diminish their three decades of supposed friendship in such a public way. Her actions threaten to harm Richard’s incredible legacy, which we are working hard to preserve.”  

Estey's statement continued: “She is a significant beneficiary of his will. She made an informed decision to decline to serve as co-trustee of the estate, which does not affect her status as a beneficiary at all … Teresa’s request to be reinstated as co-trustee was declined because co-trustees must work together in the best interests of the estate, and Teresa has shown by her actions that she does not share those interests." 

In his statement to PEOPLE on Oct. 30, Lenny concluded, "My brother embodied and emanated joy, laughter, and above all, kindness to each other. This litigation, which I did not initiate, is completely contrary to his beliefs and his values. My sincerest wish is that it ends as soon as possible and that we can turn our attention to ensuring that Richard’s positive message continues to be heard by generations in the future.”

Full Article & Source:
Richard Simmons' Brother Lenny Speaks Out About Legal Battle Over His Estate: 'Contrary to His Beliefs' (Exclusive)

Victims awarded $200K after theft by former Cuyahoga County attorney

By Avery Williams

CLEVELAND, Ohio (WOIO) - Four years after a Cuyahoga County attorney was accused of stealing from her clients, Ohio court officials say two victims are receiving reimbursement.  

According to a news release, Dorothea Jane Kingsbury, who is suspended from practicing law, pleaded guilty in Sept. 2021 to charges including theft.

Previous 19 News’ reports state Kingsbury was an estate attorney, and her victims were elderly or disabled adults.

Court officials say the Lawyers’ Fund for Client Protection reimbursed $200,000 to Kingsbury’s former clients.

Sixteen other victims of theft by Ohio attorneys were compensated as well, according to the release.

Full Article & Source:
Victims awarded $200K after theft by former Cuyahoga County attorney

See Also:
Ex-Beachwood lawyer who bilked special-needs clients’ trusts gets prison

Cleveland lawyer indicted for taking funds from elderly, disabled people she served for as guardian

Additional charges against Pepper Pike attorney accused of misappropriating funds: Update

Cleveland lawyer indicted for taking funds from elderly, disabled people she served for as guardian

Former St. Augustine mayor, elder law attorney suspended for misconduct, conflicts of interest

Joseph Boles, Jr. appointed himself beneficiary or trustee of multiple families' wills and trusts without written consent.

Author: Atyia Collins

ST. AUGUSTINE, Fla. — The Florida Supreme Court suspended prominent St. Augustine attorney and former city mayor Joe Boles after he admitted to misconduct and conflict of interest following an investigation by the Florida Bar.  

The 90-day suspension comes after a judge determined Boles showed "a pattern of misconduct" in violating Bar rules governing conflicts of interest. The Bar filed its complaint against Boles last November after receiving two complaints from Boles' clients and discovering a third concerning case while investigating.

Boles, who specializes in estate planning and elder law, serves as the president and chairman of the St. Johns County Council on Aging. He served as St. Augustine mayor from 2006 to 2014, and as a City Commissioner for two years before that.  

According to court records in the case, Boles designated himself as a surrogate designated beneficiary or backup successor trustee without getting written consent from his clients. 

The original complaint names three victims.

In the first victim's case, the complaint says Boles was hired in 2020 to create a trust for a woman with aggressive cancer. The woman's designated successor trustee said Boles appointed himself as backup successor trustee against both women's wishes. Boles denied this and told Bar investigators he did so with the client's permission. But Bar investigators determined he failed to obtain written consent to do so, as required.

In a second case, a woman said she met with Boles in 2015 for his offer of free will preparation and then again in 2021 to modify her will and request a trust. She alleges that after reviewing the documents, she discovered that Boles was named as trustee of the trust, and Boles' law partner (and stepson) was named backup successor. 

The complaint says "[Boles] unilaterally appointed himself as the personal representative in her will, appointed, himself as her healthcare surrogate, and appointed himself as [the client's] preneed guardian in the event of her future incapacity."

The client ultimately hired a different attorney to assist her with revoking the trust and drafting new estate planning document. 

Boles said he had the client's permission, but acknowledged he "failed to obtain the written informed consent ... to appoint himself," as required by law. 

During its investigation into the two complaints, the Bar also discovered a third case in which Boles named himself as a surrogate designated beneficiary in the will.

The complaint says Boles; "drafted and filed affidavits for the beneficiaries designated in the will ... in which they gave up all of their rights and responsibilities in the estate and designated respondent as the surrogate beneficiary." 

Boles told investigators he was asked to do so by his clients, but investigators found he failed to advise them to seek independent legal counsel before signing the waivers. Ultimately, Boles handled this case on a pro bono basis and distributed the proceeds of the sale of the home to the beneficiaries.

In recommending discipline in the case, the designated "referee," 4th Circuit Judge Meredith Charbula said she took into account several mitigating factors, including Boles' "absence of a prior disciplinary record; timely good faith effort to make restitution or to rectify the consequences of the misconduct; full and free disclosure to the bar or cooperative attitude toward the proceedings; character or reputation; and remorse."

The judge also found no evidence that Boles wrongfully appropriated any money or assets to his own use.

As part of the suspension, Boles is prohibited from accepting new business until he is reinstated. He will also pay disciplinary costs of $2,565. He will be automatically reinstated after the suspension is completed.

Full Article & Source:
Former St. Augustine mayor, elder law attorney suspended for misconduct, conflicts of interest

Ex-Beachwood lawyer who bilked special-needs clients’ trusts gets prison

Dorothea Kingsbury, 70, was sentenced on March 15, 2023, to four years in prison after she pleaded guilty to stealing misappropriating hundreds of thousands of dollars from clients.Cory Shaffer, cleveland.com

By Cory Shaffer

CLEVELAND, Ohio -- A 70-year-old former attorney who stole hundreds of thousands of dollars belonging to her mostly elderly and special-needs clients was sentenced Wednesday to prison.

Cuyahoga County Common Pleas Court Judge Jeffrey Saffold told Dorothea Kingsbury that placing her on probation after pleading guilty to second-degree felony theft and other charges for the yearslong scheme would “disrespect all of the truly bad deeds” she had committed.

Instead, the judge sentenced her to spend the next four years in prison.

“Of all of the people in the world to steal from, you picked the absolute most vulnerable among us,” Saffold said. “When I think of your behavior here, I’m stuck with the word ‘despicable.’ If you have remorse, I think you would agree with that statement.”

Kingsbury, who had asked Saffold to spare her a prison sentence, answered quietly, “Yes sir.”

Kingsbury, of Mayfield, pleaded guilty in September 2021 to theft and attempted theft -- both second-degree felonies -- as well as money laundering. She also pleaded guilty in a separate case to failing to file state income taxes for five years, which is a fifth-degree felony.

The charges carried a maximum sentence of more than 20 years in prison.

Kingsbury, whose legal career spanned four decades, agreed to forfeit her law license as part of the plea bargain. She also has repaid $125,000 and agreed to forfeit money in her retirement accounts to pay back the more than $500,000 that is still unaccounted for.

Saffold said during the sentencing that he would consider letting Kingsbury out of prison early, but only if she continues to pay back the surviving victims and locate the missing money.

Her sentencing was delayed when she was referred in January 2022 to the court’s psychiatric clinic.

Kingsbury admitted to taking nearly $600,000 from her clients’ trusts from 2012 to 2017 without explanation and transferring hundreds of thousands of dollars more between a total of 22 people’s accounts to cover up her financial malfeasance.

All told, investigators uncovered nearly $1.2 million in questionable transactions that Kingsbury made with money from the accounts she managed.

Assistant Cuyahoga County Prosecutor J.D. May said during the hearing that, after a forensic examination of the accounts that Kingsbury pilfered, investigators still cannot account for a large portion of the money.

Nearly all of Kingsbury’s victims were severely mentally and developmentally disabled. Some of them could not read or write.

Several family members and attorneys who serve as guardians to Kingsbury’s clients told Saffold that the money in their trusts was meant to pay for medical expenses that Medicare and Medicaid would not cover, including trips to dentists and wheelchairs.

Michelle Owen brought her sister, who lost $29,000 to Kingsbury’s crimes, into the courtroom. Owen moved her sister’s wheelchair so she would face directly at Kingsbury.

“This is the person whose heart you broke,” Owen said.

The sister twice told Owen that she loved her as Owen spoke to the judge.

“I love you, too, baby,” Owen replied, as she ruffled her sister’s short gray hair.

Kingsbury stole more than $50,000 from Theresa Manary’s brother. Manary decided to speak directly to the former attorney.

“I don’t know how you sleep at night,” Manary said.

Michael Lear, who defended Kingsbury alongside Larry Zukerman, asked Saffold to spare his client prison time.

Lear pointed to a court psychiatrist’s diagnosing of Kingsbury with depression, stress disorder and caretaker fatigue at the time she began the thefts. He also said that Kingsbury was working to pay back the money, and she was one of the most remorseful clients he has ever had.

Kingsbury read from a written statement in which she apologized to her victims and their families.

“Those families deserved the highest level of care and service from me, and I failed miserably,” she said. “The words ‘I’m sorry’ hardly convey the depth of grief and the number of sleepless nights that I have suffered, but they are the only words I have to offer.”

After Saffold announced the prison sentence, Lear asked if the judge would consider allowing Kingsbury to go home and report to prison at a later date.

“No, I think she needs go out the side door today,” Saffold said.

Sheriff’s deputies handcuffed Kingsbury and escorted her out of the courtroom.

After the hearing, the families of the victims said they were grateful that Kingsbury received a prison sentence.

“Seeing the handcuffs getting slapped on was most satisfying,” Karen Farrell, a friend of Manary who attended the sentencing, said after the hearing.

Manary and Owen agreed.

“I thought if they don’t punish her, then other lawyers may see this and think, ‘I can do this and get a slap on the hand too,’” Manary said. “And that cannot happen.”

Full Article & Source:
Ex-Beachwood lawyer who bilked special-needs clients’ trusts gets prison

See Also:
Cleveland lawyer indicted for taking funds from elderly, disabled people she served for as guardian

 Additional charges against Pepper Pike attorney accused of misappropriating funds: Update

 

Tom Girardi’s Bankruptcy Trustee Set to Collect $40 Million for Victims and Creditors as RHOBH Attorney Receives 24/7 Care at “Skilled Nursing Facility”

by Lindsay Cronin

 

Thomas Girardi‘s fraud victims might be receiving payments sooner, rather than later.

Nearly one year after the former Real Housewives of Beverly Hills attorney was forced into an involuntary bankruptcy by his creditors, who he owed tens of millions, the trustee presiding over the case has collected over $4 million and reportedly has tens of millions more on the way as prepares to repay those owed.

According to court documents obtained by Radar Online on September 30, the business affairs of Thomas, the estranged husband of Erika Jayne, were in “dire straits” when the trustee took over the estate. But now, as the trustee explained in his update on the case, he’s reached deals with Girardi’s secured creditors and has gathered $4.2 million in cash.

While the trustee is certainly off to a good start, he has struggled at times to work through the system at Thomas’ defunct firm and has had to pay former employees to help him. Following a previous request of the court, the trustee was granted the ability to spend between $166,000 and $276,000. Months later, he needs more.

“The trustee continues to diligently work to identify assets of the debtor, and this process is ongoing. Without continuing access to funds, the Trustee is unable to fund a proper investigation of the Debtor’s affairs and to preserve and maximize the value of the Estate,” the trustee’s court documents explained.

In the months since Thomas was forced into bankruptcy, most cases he was handling were either dropped by the client or transferred to another firm. And, when it comes to the cases transferred, a number are still pending and expected to bring the estate more cash in the near future.

One particular lawsuit, filed against SoCalGas over a gal leak, recently reached a $1.8 billion settlement, which is expected to bring in tens of millions as Thomas represented 23% of the plaintiffs.

The settlement will “eventually result in a significant recovery for the Estate,” the trustee shared.

Attorney Ronald Richards also shared this positive update on the case, confirming that the trustee has secured over $40 million for Tom’s victims and creditors, outside of the $25 million they are currently trying to recover from Erika Jayne.

The Trustee has been able to disburse funds to the Debtor's clients. As of April 2021, the Trustee had already disbursed or caused to be disbursed more than $26 million to clients. This means that clients (victims) got this $. This has nothing to do with the case against EG.🙏 https://t.co/s3qDK1zmSo

— Ronald Richards (@RonaldRichards) October 1, 2021

In other Thomas Girardi news, the former attorney‘s brother, Robert Girardi, who is acting as his permanent conservator, recently filed documents with the court in which he confirmed Thomas has been living in a “skilled nursing facility” for two months and receiving 24-hour care.

“[Thomas] cannot stay in his home due to his finances, and care needs,” the documents explained, via PEOPLE. “Tom is the subject of an involuntary bankruptcy proceeding and a marriage dissolution proceeding. As a result, his home was put up for sale. Furthermore, Tom’s care needs are such that he needs to be at a skilled nursing facility.”

Full Article & Source:

Tom Girardi’s Bankruptcy Trustee Set to Collect $40 Million for Victims and Creditors as RHOBH Attorney Receives 24/7 Care at “Skilled Nursing Facility” 

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Tom Girardi

Lawyers recovering funds for theft victims request $315K for fees

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Lawyers recovering funds for theft victims request $315K for fees  

 

By Arthur Kane

Lawyers working to recover money for the victims of disgraced attorney Robert Graham want more than half of the funds the trustee has on hand for legal fees, records show.

On Feb. 9, Las Vegas attorney Jacob Houmand and his associates filed a request to the court for nearly $316,000 in fees and expenses for work on the case since 2016. U.S. Bankruptcy Court Judge Bruce T. Beesley is scheduled to review the filings March 9, records show.

The trustee is holding $528,000, the filing says, adding the trustee will have collected $807,106.78 over the whole case.

But UNLV law professor Nancy B. Rapoport, who has reviewed fees for several bankruptcy courts in other cases, said victims can ask the court to reject any fees they believe are unreasonable. After reviewing the detailed billings at the Review-Journal’s request, Rapoport was concerned that some of the items that the lawyers billed for may not be necessary.

Rapoport said the court could question billings for legal research that experienced bankruptcy attorneys should already know and hours billed for attorney work that could likely be handled by the trustee, or lesser-paid staff.

“There are issues raised here that a court might want to review, whether or not a party in interest is objecting,” she wrote in an email exchange.

In 2017, Graham pleaded guilty and was sentenced to 16 to 40 years in prison for stealing more than $16 million from his clients’ accounts to pay business and personal expenses. The judge ordered him to pay back the money in restitution, but a Review-Journal investigation found none of that has been paid.

Graham’s victims filed an involuntary bankruptcy case in 2016 against his firm to recover any remaining assets, but after more than four years, only accountants and lawyers have been paid.

Thane Parton, who lost nearly $500,000 to Graham’s thefts, said he is concerned about paying an attorney to contest the fees when the court will likely still award the money to lawyers and contractors.

“Every time you talk to an attorney, you’re afraid that there will be a bill,” Parton said.

Houmand did not respond to repeated requests for comment, and trustee Shelley Krohn emailed that she will not do an interview on the expenses in the case.

“Everything that … I have done … has been documented in the Bankruptcy Court docket and is fully accessible to you and the public,” Krohn wrote. “Every settlement agreement, every dollar collected, every professional employed and paid, etc. — it’s all there in black and while (sic). Thus, there is nothing for me to comment on. With regard to any matters that are still pending, I know you understand that I cannot and will not comment on these issues while they remain unresolved.”

Assets and bills

It’s not clear if the approximately $800,000 that the trustee collected includes about $400,000 of past due accounts receivable. Rapoport said outstanding debts that old are nearly impossible to collect.

In asking for fees and expenses, Houmand wrote that the fees to pay him and other attorneys are billed at $250 and $375 an hour, and were for case administration, asset analysis and recovery, meetings, communication and other items in collecting assets for victims.

Houmand’s detailed billing statements repeatedly show thousands of dollars going for research an experienced bankruptcy attorney should know or work others could do more cheaply.

For example, on Dec. 22, 2016, Houmand billed about $1,200 for “research and analysis regarding the ability of a Chapter 7 Trustee to avoid transfers made from an IOLTA Trust account.” Five days later, he billed $942 for “research and analysis regarding a Chapter 7 Trustee’s standing to avoid transfers of property held in trust.”

More than $600 was billed on Dec. 29, 2016, for researching and obtaining documents from the Washington County Recorder’s office about a property Graham owned in Utah. On Jan. 4, 2017, attorneys billed $225 for less than an hour to visit a potential auction site to get rid of any Graham property they identified. Six days later they charged $585 for less than two hours to upload materials to a website to provide information to creditors about the status of the case, records show.

Bankruptcy law requires that contractors and secured debtors get paid before the victims, Rapoport said.

While some of the expenses need justification, Rapoport said finding assets is expensive and the court has to pay professionals to get experienced help.

“If the fees consume most of the estate, that’s a sad outcome, but the Code was designed to find ways to encourage professionals to work on cases, which is why administrative expenses are a high priority,” she wrote.

More money for contractors

The Review-Journal reported in January that accountants and attorneys have already been paid $113,000, including $108,000 to a forensic accounting firm to determine what Graham assets could be seized. A firm spokesman declined to comment about how much money the firm recovered.

In recent filings, Century City, Calif., attorneys Diamond McCarthy LLP are asking for $4,500 for dealing with Graham’s malpractice insurance, and reviewing the criminal case and Graham’s wife’s bankruptcy records, records show.

But another attorney already billed for work on the malpractice insurance, records and interviews show.

Las Vegas attorney Ryan Andersen was hired on a contingency basis to see if he could persuade Graham’s malpractice insurance company to pay victims. He obtained an agreement for the company to return about $11,000 in premiums to settle the case. Andersen received 40 percent of that — or about $5,000 — for 60 hours of work. He said it was considerably less than he would have received if he was allowed to bill his hourly rate.

“In a case like this — and in other financial fraud cases — it is very expensive and time consuming to unwind and it does require specialized knowledge,” he said in a January interview. “Distribution takes a long time in a case like this.”

He said Diamond McCarthy stopped working on the insurance issue months before he came on board. “Diamond McCarthy firm was doing general overview work in an effort to determine avenues of recovery to pursue,” he wrote in an email exchange this week.

Additionally, on Feb. 9, accounting firm Paul M. Healey and Sons asked for $3,337.50 for about 10 hours of work reviewing Graham’s tax returns and tax preparation, records show.

Missed asset opportunities

Parton said his attorney informed the trustee about client money Graham spent on donations to Colorado State University, Boy’s Town and accounts Graham held at City National Bank. But Parton said he hasn’t seen any efforts to investigate and recover those funds.

“Every time we bring it up, nobody wants to talk about it,” he said of the City National account.

Parton said his fears that attorneys and contractors will draw most of the money appear to be coming true.

“There won’t be anything left,” said Parton in response to the latest filings. “It is a concern that (lawyers and accountants) are fighting over all the rest of the money and none will go to victims.”

Healey and representatives of Diamond McCarthy did not return calls and email seeking comment.

A previous version of the story incorrectly described Nancy B. Rapoport’s qualifications. She has worked for bankruptcy courts examining fee requests for other cases. 

Full Article & Source:

Lawyers recovering funds for theft victims request $315K for fees

Longtime LeClairRyan attorney disbarred over mishandling of $3M in LandAmerica case

by Michael Schwartz 

Bruce Matson’s law license was revoked last week by the Virginia State Bar. (BizSense file)

Bruce Matson, a prominent, longtime local bankruptcy attorney formerly of LeClairRyan, had his law license revoked last week by the Virginia State Bar after he admitted to inappropriately pocketing seven figures worth of funds from the long-dormant LandAmerica bankruptcy trust account.

The disbarment stems from an episode last year when it was discovered that Matson withdrew $2.8 million from the LandAmerica wind-down account and put the money into his own personal account and those of his associate Robert Smith, and their wives.

Matson, who has spent a portion of his nearly 40-year law career as a bankruptcy trustee, acting as the main fiduciary on often complex corporate bankruptcy cases, oversaw the untangling of LandAmerica’s collapse. The once mighty Henrico-based title insurance firm went under in a heap in 2008 as the Great Recession was beginning.

Bruce Matson oversaw the untangling of
LandAmerica’s collapse

The case was brought to what was considered a successful conclusion in 2015, with Matson recovering ample funds for creditors and setting aside around $3 million should incidental matters arise. Those funds were not to be disbursed until the wind-down period came to a close in 2021.

But in August 2019, it was brought to the bankruptcy court’s attention that the wind-down funds were missing and the account’s balance was zero.

The discrepancy was brought to light by Protiviti, which works as a financial adviser on bankruptcy cases, including those of LandAmerica and, and at the time, LeClairRyan.

Smith, a former employee of Protiviti, led the advisory firm’s work on the LandAmerica case.

When questioned about the missing funds last year, Matson told Judge Kevin Huennekens the money was accounted for and gave various excuses, including purported business reasons, for the money being moved about and ultimately into personal accounts.

“In retrospect, that clearly was probably not the best idea,” Matson told the judge. “And I may have made a mistake.”

In an affidavit attached to the VSB’s revocation order last week, Matson admitted that the funds were transferred to his and Smith’s accounts “for our benefit.”

“It is my position that I disbursed the $2.5 million as discretionary bonuses and that I preserved (an additional) $341,000 in an escrow account which was in my name,” he said in the affidavit, dated Nov. 13.

While the full $2.8 million has since been returned by Matson to the LandAmerica bankruptcy estate, the VSB said its investigation of the matter was prompted by previous media reports about the missing funds.

When confronted by the VSB, Matson conceded that the allegations are true and that he could not successfully defend the claims. He ultimately consented to revocation of his license to practice in Virginia.

Matson did not respond to requests for comment Tuesday afternoon.

Smith, who now works at patent analytics and litigation finance startup Randolph Square IP, has not been charged by the VSB to date. While Smith has a law degree from University of Richmond, he does not appear to have an active practice. Matson also was previously involved with Randolph Square.

No further allegations have been filed in federal court related to the matter.

The saga may continue on within the confines of the LandAmerica bankruptcy case, which was forced to be revived four years after its conclusion as a result of the misappropriated money.

Matson, as a result of last year’s hearings, was forced to relinquish his role as trustee in the case, despite his pleading with the judge to stay on. Veteran Richmond attorney Benjamin Ackerly, who is retired from Hunton Andrews Kurth, was appointed to replace Matson.

Ackerly was tasked with investigating and tracking down the transfers Matson made and distributing the remaining funds back to the estate. That investigation continues.

Full Article & Source:

Longtime LeClairRyan attorney disbarred over mishandling of $3M in LandAmerica case

Judge blocks auction of so-called Hawaiian princess' things

By JENNIFER SINCO KELLEHER

HONOLULU — An auction of a 94-year-old Native Hawaiian heiress' belongings can't go forward until a conservator is named to handle her finances, a judge ruled Monday.

Abigail Kawananakoa's foundation, which has been working to ensure her fortune goes to benefiting Native Hawaiian causes, asked a judge to stop the auction until at least a conservator is named. The auction was scheduled to close next week, while a hearing on her conservator isn't scheduled until July 21. On Monday, the the auction website said it is now scheduled to end on Aug. 2.

Kawananakoa's wife and others can't proceed with the auction or sell any of her belongings until there's a ruling on the foundation's petition and a permanent conservator is named, Judge R. Mark Browning ruled.

Her $215-million fortune has been tied up in a legal battle since 2017, when her longtime lawyer, Jim Wright, argued a stroke left her impaired. Kawananakoa said she's fine and fired Wright. She then married her partner of 20 years, Veronica Gail Worth, who later took her last name.

A judge ruled in March that she needs a conservator because she's unable to manage her property and business affairs. Another judge ruled month last month her conservatorship should be unlimited and set a hearing for July 21 to determine who that will be.

Some consider Kawananakoa a princess because she's related to the family that ruled the islands before the overthrow of the Hawaiian kingdom in 1893.

She inherited her wealth as the great-granddaughter of James Campbell, an Irish businessman who made his fortune as a sugar plantation owner and one of Hawaii's largest landowners.

"Ms. Abigail and her spouse, Veronica, have no issue with postponing the sale of Ms. Kawananakoa's personal effects located in her North Shore cottage," Michael Rudy, an attorney representing Kawananakoa's wife, said in a statement on behalf of the couple.

"The Kawānanakoa Foundation is grateful that the auction has been stopped for now," the foundation said in a statement. "We look forward to the appointment of a Conservator who can best determine what should happen to Ms. Kawānanakoa's property, consistent with what is in her best interests."

Foundation directors said in their petition they are concerned that some of the auction items appear culturally significant.

Kawananakoa "will carefully re-examine the sale items to ensure that no significant cultural or historical items are publicly sold" and plans to donate those items to Iolani Palace, Rudy said.

"Ms. Abigail and Veronica respect this ruling and all other prior rulings in this case," Rudy said. "They desperately wish, however, that the Court continues to protect and conserve all of Ms. Kawananakoa's other assets and financial resources that continue to be squandered by unnecessary and unreasonable attorneys' fees, trustee's fees and other costs (now totaling in the millions of dollars), that Ms. Kawananakoa is being involuntarily forced to incur and will continue to be incurred until such time as the Court puts a stop to it."

Full Article & Source:
Judge blocks auction of so-called Hawaiian princess' things

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Foundation fights auction by so-called Hawaiian princess

Judge mulls conservator for so-called Hawaiian princess

Foundation fights auction by so-called Hawaiian princess

FILE - In this Oct. 25, 2019 file photo, Native Hawaiian heiress Abigail Kawananakoa poses outside a Honolulu courthouse. A foundation working to ensure that Kawananakoa’s fortune goes toward benefiting Native Hawaiian causes now wants to stop an auction of items belonging to the heiress some consider a princess. Attorneys for the foundation are asking a judge to stop the auction before a conservator to handle Kawananakoa’s finances is named.(AP Photo/Jennifer Sinco Kelleher,File)

By Jennifer Sinco Kelleher

HONOLULU — A foundation working to ensure a 94-year-old woman’s fortune goes to benefiting Native Hawaiian causes now wants to stop an auction of items belonging to the heiress some consider a princess.

Attorneys for the foundation are asking a judge to stop the auction until a conservator to handle Abigail Kawananakoa’s finances is named.

Her $215-million fortune has been tied up in a legal battle since 2017, when her longtime lawyer, Jim Wright, argued a stroke left her impaired. Kawananakoa said she’s fine and fired Wright. She then married her partner of 20 years, Veronica Gail Worth, who later took her last name.

A judge ruled in March that she needs a conservator because she’s unable to manage her property and business affairs. Another judge ruled month last month her conservatorship should be unlimited and set a hearing for July 21 to determine who that will be.

Some consider Kawananakoa a princess because she’s related to the family that ruled the islands before the overthrow of the Hawaiian kingdom in 1893.

She inherited her wealth as the great-granddaughter of James Campbell, an Irish businessman who made his fortune as a sugar plantation owner and one of Hawaii’s largest landowners.

In a petition filed in court last week, her foundation directors said it’s troubling some of the auction items appear culturally significant, including what looks like a kukui nut lamp used by Hawaiians before European contact that had a bid of $336 as of Tuesday. On Wednesday, the item was no longer listed and there was a message that read, “Several items were recently removed from the auction at the request of the Kawananakoa family.”

The foundation directors allege her wife is behind the auction, saying she has the “chutzpah to auction off Ms. Kawānanakoa’s ‘unique’ and culturally priceless belongings to any random stranger with a credit card.”

A lawyer for Kawananakoa’s wife didn’t immediately respond to a request for comment.

“These items are personal property from Ms. Kawananakoa’s Punaluu cottage, which she no longer visits,” her attorney, Bruce Voss, said in a statement. “All net proceeds from the sale will go into an account to help pay Ms. Kawananakoa’s personal expenses.”

Voss said Kawananakoa needs money to pay her expenses because Wright, her former lawyer and trustee, paid more than $3 million to his attorneys and $400,000 to the foundation’s attorneys.

“Miss Kawananakoa continues to be well funded and the money from the sale is small especially compared to the harm it will cause,” Wright said. “This sale is a cruel repudiation of her life’s work of recovering and protecting Hawaiian artifacts. It is not the first time a Hawaiian leader has been diminished. It needs to be the last.”

The auction is scheduled to close July 12.

“It is extremely troubling to find that an auction has been scheduled to sell items of her personal property prior to the appointment of her Conservator – this is what Hawaiians call hewa (‘wrong’),” Lilikalā Kame’eleihiwa, one of the foundation’s directors and a professor at the University of Hawaii’s Kamakakūokalani Center for Hawaiian Studies, said in a declaration to the petition. “Many of these items are on sale for a mere $10 each. Therefore, the pending auction should be stopped before these objects are lost forever to Ms.Kawānanakoa during her incapacity.”

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Foundation fights auction by so-called Hawaiian princess

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Judge mulls conservator for so-called Hawaiian princess

Judge mulls conservator for so-called Hawaiian princess

By Jennifer Sinco Kelleher

HONOLULU — A long, bitter legal battle over control of a 94-year-old Native Hawaiian heiress' $215-million fortune raged on Tuesday, with a judge saying her conservatorship should be unlimited but not ruling on who the conservator will be.

It's not clear when Judge R. Mark Browning will rule on who will serve as conservator for Abigail Kawananakoa, considered a princess by some because she's related to the family that ruled the islands before the overthrow of the Hawaiian kingdom in 1893.

Browning "finds that an unlimited conservatorship is appropriate," he said in a written order after hearing arguments Tuesday. His order also directs a court-appointed helper, known as a Kokua Kanawai, to do a "brief investigation into the four proposed conservators," including Kawananakoa's wife.

The Kokua Kanawai must interview the nominated conservators and file a report by the end of the month. Browning set a July 21 hearing.

Kawananakoa inherited her wealth as the great-granddaughter of James Campbell, an Irish businessman who made his fortune as a sugar plantation owner and one of Hawaii's largest landowners.

The legal wrangling dates to 2017, when her longtime lawyer, Jim Wright, argued a stroke left her impaired. Kawananakoa said she's fine and fired Wright. She then married her partner of 20 years, Veronica Gail Worth, who later took her last name.

Native Hawaiians have been closely watching what happens because they are concerned about the fate of a foundation she set up to benefit Hawaiian causes.

"It is our kuleana to ensure Abigail Kawānanakoa's resources — which she intended for the Hawaiian community — aren't hijacked for personal or corporate gain," Oz Stender, interim director of her foundation, said in a statement, using the Hawaiian word for responsibility.

Another judge ruled in March that Kawananakoa needs a conservator because she's unable to manage her property and business affairs. She testified that she doesn't need anyone to handle her estate because she isn't dead yet.

Kawananakoa, who turned 94 in April, listened to Tuesday's hearing by telephone. She didn't speak during the proceeding. Because of the coronavirus pandemic, the judge allowed only a few attorneys to be in the courtroom to avoid a crowded space. Other attorneys, including those representing her foundation, participated by telephone.

She wants a limited conservatorship, said her attorney, Bruce Voss. He said she wants the conservator to be either be her wife, or Stacey Wong, who was trustee of the Eric A. Knudsen Trust, one of Hawaii's largest family estates.

"Fundamentally ... what Ms. Kawananakoa wants is to maintain some control, at least some control, over the things that are most important to her and her life: her people, her care and her horses."

She can make decisions, he said. "She doesn't want anyone ... to take complete control of her life," he said. "She's a proud, smart woman."

She needs is an independent conservator with full control over her finances who can work with a trustee who replaces Wright, said Wright's attorney, Edmund Saffery.

"The issue before the court is simple, should Ms. Kawananakoa be allowed to continue to run her financial affairs over a cliff or should the slate finally be wiped clean with the appointment of a neutral third party conservator beholden to seeing that Ms. Kawananakoa's finances are managed to her best interests," Saffery said.

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Judge mulls conservator for so-called Hawaiian princess

Additional charges against Pepper Pike attorney accused of misappropriating funds: Update

Dorothea Kingsbury

By John Caniglia

CLEVELAND, Ohio — A Pepper Pike attorney accused earlier this year of misappropriating more than $1.1 million of her clients’ money faces additional charges involving her taxes.

Dorothea Kingsbury is accused in Cuyahoga County Common Pleas Court of failing to file state tax returns since 2014. The allegations are in addition to charges that she withdrew money from her clients’ accounts without their knowledge, according to court records.

All but one of the 22 clients in the case are developmentally disabled, and many cannot read or write.

Kingsbury was originally scheduled to go to trial in August on charges of theft, fraud and money laundering, but the case was pushed back. Prosecutors obtained an indictment on the tax charges in October. The cases are set for trial in April before Judge Dick Ambrose.

Her attorney, Larry Zukerman, said the new charges are an attempt to pressure Kingsbury.

“This is a classic case of overcharging,” Zukerman said. “Prosecutors, on the eve of trial, filed additional charges against Ms. Kingsbury, which appear on the surface to be a coercive tactic to force her into a plea bargain.

“Ms. Kingsbury denied the allegations at her arraignment and plans to aggressively defend against the allegations at trial.”

Prosecutors said they did not bring the charges to push Kingsbury into a plea deal. Rather, they said, the charges stem from a continuing investigation.

“Upon learning of an active [IRA] account owned by the defendant, [prosecutors] charged Kingsbury with new offenses that were not discovered until months after the first indictment,” prosecutors said in an emailed statement.

The charges “address the criminal conduct and allow for the protection and forfeiture of the funds for victims’ restitution,” the statement said.

An indictment filed in February says Kingsbury, 67, made more than 200 questionable shifts of funds, or transactions that cannot be explained.

Prosecutors and investigators said Kingsbury withdrew and transferred hundreds of thousands of dollars over the years from the accounts of clients to conceal what she had taken from others, including more than $110,000 that she took for herself.

What she did with the misappropriated funds is unclear, those authorities said.

Kingsbury is free on $10,000 bond. If convicted, she could sentenced to more than 10 years in prison.

Besides the criminal case, a lawsuit has been filed against Kingsbury. The family of Janis Paul, a Cleveland woman with a severe mental impairment, filed suit in September 2018 against Kingsbury in Cuyahoga County Probate Court, demanding an accounting of her trust.

Records show Kingsbury had served as trustee to the trust from July 30, 2011, to Jan. 26, 2015. Investigators found Kingsbury made 50 questionable transfers from Paul’s account for nearly $300,000, according to records prosecutors filed. The case in probate court is pending.

In most of the cases in the indictment, Kingsbury served as a trustee of special-needs trusts. The trusts often are set up by families or guardians to provide money for basic purchases or needs to a person with disabilities. In many cases, families hired Kingsbury to oversee the accounts.

The trustee must submit an accounting of the finances to the beneficiary’s court-appointed guardian. Guardians became upset when Kingbury, in her role as trustee, failed to submit annual status updates on time, prosecutors and investigators said.

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Additional charges against Pepper Pike attorney accused of misappropriating funds: Update

NH judge in Nathan Carman case rebukes attorneys, accuses them of trying to take advantage of him

Nathan Carman has been accused by family members of killing his millionaire grandfather and possibly his mother.

In a stinging 37-page ruling Friday, a New Hampshire probate judge refused to sanction Nathan Carman for revealing confidential records and instead accused lawyers for his three aunts of trying to take advantage of the fact he is representing himself in a legal fight over Carman’s access to a $7 million inheritance.

Judge David K. King’s ruling followed a hearing last month where the lawyers — Dan Small and William Satterly — sought to have Carman sanctioned for revealing Windsor police department documents in a separate case in a Rhode Island federal court. King made it clear that he believes there is a pattern of the attorneys “attempting to take advantage” of the fact that Carmen is representing himself in court.

Carman’s three aunts — Valerie Santilli, Elaine Chakalos and Charlene Gallagher — have filed a so-called “slayer” petition in New Hampshire to keep Carman from inheriting $7 million in light of his grandfather’s death in 2013 and his mother’s presumed death while on a fishing trip with Nathan Carman. The case is scheduled to go to trial in January.

Both Carman and his mother, Linda Carman, were on a fishing trip in 2016 when their boat sank. Carman was rescued from a raft eight days later and Linda Carman is presumed dead.

Carman was identified in a search warrant as a suspect in the 2013 shooting death of his father, John Chakalos. Carman has not been charged in his grandfather’s death and has denied killing him.

In Friday’s ruling, King wrote that “there have been a number of pleadings filed by petitioner’s counsels that are without merit such that one may question whether counsels are attempting to take advantage of Mr. Carman’s pro se status and lack of legal training.”

King held a three-hour hearing last month about concerns that Carman’s attorney in a Rhode Island boat insurance case had revealed parts of the nearly 22,000-page investigative report by Windsor police into the slaying of Chakalos, who was shot in his Windsor home in 2013. Police sought an arrest warrant for Nathan Carman. It was not approved.

In court documents filed in Rhode Island, federal court attorney David Anderson seeks to interview a woman referred to as “Mistress Y” about the weekend of Dec. 13-14, 2013 that she spent with John Chakalos at the Mohegan Sun. In an interview after the murder, the woman told Windsor police he gave her $3,500 for breast enhancement. She denied having sex with him. She told police that she did have a conversation with Chakalos on Dec. 19, 2013, that lasted about 20 minutes and was “sexual in nature.” She said they made plans during that phone call to go to New York City together over Christmas.

The timing of that phone call is a key issue for Carman’s defense. He has said that he left his grandfather’s house just as he started talking to the mistress and that Chakalos paused the conversation with her to say goodbye to Carman.

Also at last month’s hearing Carman sought sanctions against Small and Satterly for filing some of his medical and education records publicly instead of under seal and for using some of those medical records against him in yet another case pending in the West Hartford, Conn., probate court where Nathan Carman is trying to get a judge to remove Valerie Santilli as trustee of a trust in Nathan’s name so that he can get $150,000 to hire an attorney in the New Hampshire case.

King said the attempt to file Carman’s medical records without a seal is just the latest in a series of “uncivilized, bordering on unethical conduct.”

Full Article & Source: 
NH judge in Nathan Carman case rebukes attorneys, accuses them of trying to take advantage of him

Judge rules Hawaiian princess unfit to manage $215m trust

A Honolulu judge ruled this week that “Hawaii’s last princess” doesn’t have sufficient mental capacity to manage her $215m trust – the latest twist in a contentious legal battle surrounding 92-year-old Abigail Kawānanakoa and her fortune, and which has raised allegations of possible abuse.

Kawānanakoa is regarded by many Native Hawaiians as a princess because she is a descendent of the royal family that ruled the islands before the overthrow of the Hawaiian Kingdom in 1893. She’s also the great-granddaughter of sugar plantation owner James Campbell, a businessman who was one of Hawaii’s largest landowners and through whom Kawānanakoa has inherited her sizable estate, which includes ample real estate and cash assets.

Kawānanakoa has led a mostly private and luxurious life, donating to her favorite charities, and breeding American Quarter Horses, but also had a reputation for quietly paying people’s bills. For years, she paid the electricity bill at Honolulu’s Iolani Palace (the royal residence that’s since become a museum) and would chip in when people came to her with financial problems. In 2001, the heiress also established a $100m trust aimed at supporting Native Hawaiian language, culture, art, education health and housing.

“At the moment, she is a benefactor for the Hawaiian people,” said Lilikalā Kame’eleihiwa, director and professor at the University of Hawaii’s Center for Hawaiian Studies and a board member for Kawānanakoa’s trust. “I understand she paid some people’s student tuition or their medical bills – she even paid people’s mortgages to keep them from becoming homeless.”

But trouble began last year when Kawānanakoa had a stroke. Soon after, her longtime former attorney Jim Wright said she was no longer able to serve as trustee and stepped in. But then Kawānanakoa declared she was fine and took a series of hasty steps that seemed out of character. She fired Wright, married her girlfriend of two decades, Veronica Gail Worth, and hired another lawyer. Before a court hearing on Monday, her lawyer said she wanted to remove Wright and appoint new trustees, including her wife, Worth.

In a nod to Kawānanakoa’s wishes, the judge Monday removed Wright as trustee, but appointed First Hawaiian Bank in his place. He said that he believed Kawānanakoa was able to decide that she wanted a trustee replaced, but that it was more complicated to appoint someone new, and that he didn’t find her capable of managing her financial assets, according to Kawānanakoa’s attorney, Michael Lilly.

“I think it’s a great decision by the judge,” said Kame’eleihiwa. Kame’eleihiwa said that the bank now has the choice in keeping the existing board members, some of whom are prominent Native Hawaiians, or appointing new ones. But Kame’eleihiwa added that she still had concern for Kawānanakoa, who had seemed increasingly isolated after her stroke.

In court filings, Wright, the former attorney, alleged that Worth physically abused Kawānanakoa. Domestic workers who helped Kawānakoa supported the claims, alleging that they had seen abuse occur and witnessed Worth pressuring Kawānanakoa to add her name on her bank account, among other things. After the employees spoke with a court-appointed psychiatrist and judge appointee as part of the legal proceedings, they claimed that they’d been fired and told to leave the southwest Oahu home that Kawānanakoa owned and had let them live in. It was retaliation, they told Hawaii News Now.

Worth has denied the allegations of abuse, and blamed the princess’s bruises on accidental stumbles into furniture. But some board and community members are still concerned, said Kame’eleihiwa.
“The first thing we were worried about was the health of Abigail,” she said. “You should not have elders in a situation where they might be abused.”

Kawānanakoa’s attorney, Michael Lilly, told the Guardian that his client was considering whether to challenge Monday’s ruling, but happy that her former lawyer had been replaced.

“We’re pleased that Mr Wright is out (as trustee),” Lilly told the Guardian. “Abigail Kawānanakoa has a loving marriage and she has been in the news against her wishes. She needs and is entitled to be left alone.”

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Judge rules Hawaiian princess unfit to manage $215m trust