- 4 - Bank Loans On July 9, 1982, Mrs. Leonard obtained a 2-month bank loan for $75,000 and provided the proceeds therefrom to Robert in order that he could pay off mechanic’s liens on the flower shop property. Mrs. Leonard did this as a favor to Robert. However, she expected Robert to be responsible for the repayment of principal and interest charged her by the bank. Robert repaid only a portion of the $75,000 given him by Mrs. Leonard. One of Robert’s checks to her, dated September 10, 1982, bounced. Mrs. Leonard was ultimately required to pay off the balance of the $75,000 loan. Between February and April of 1983, Mrs. Leonard opened four joint bank accounts with Robert in order that he could "have access" to the money. Mrs. Leonard placed no restrictions on how Robert could use the bank account funds. No documentation was prepared to define their relationship. All bank statements were sent to Mrs. Leonard; the statements revealed a number of overdrafts that began in February 1983. In addition to the four joint accounts with Robert, Mrs. Leonard had 12 bank accounts and a number of trust accounts during 1983. Between February and May 1983, she obtained loans at four banks totaling $200,000, ostensibly for use in her law practice, but in fact, the money was provided to Robert. Unsupervised Investments During 1983, checks totaling more than $1.3 million were written to Prudential Bache--where Robert was a stockbroker--on onePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011