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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 one
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Last modified: May 25, 2011