- 4 - when they were audited, John dealt with their examination. He told them when to buy, sell, borrow against, and repair property. At John's direction, money went from petitioners to him and back again from him to them. But petitioners understood none of this. From May 1986 until February 1988, when John was convicted for falsifying documents, he was licensed by California to sell realty. He involved petitioners in his real estate deals. At John's instigation, they purchased a house located at 7786 Chancery Court, Citrus Heights, California (Chancery Court) from William Paxton on December 23, 1986. They paid $67,000 for the house, and Mr. Paxton financed $17,000 of the cost. The record does not disclose how petitioners financed or otherwise obtained the remaining $50,000. On February 19, 1987, petitioners borrowed $50,000 from the Jack Rice Revocable Trust (Jack Rice), using a mortgage on Chancery Court as security, which Jack Rice subsequently recorded. The note secured by the mortgage contained an acceleration clause under which, if petitioners were to sell, convey, or otherwise alienate Chancery Court, the loan would become immediately due and payable at the option of the holder. Despite this acceleration clause, John secured another loan using Chancery Court as security, as described below.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011