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Access to Funds Terminated
In July of 1983, petitioners discontinued their transactions
with Robert when they learned that he might not be able to repay
them. In the fall of that year, petitioners learned that Robert no
longer worked at Prudential Bache.
Petitioners never attempted to obtain a note from Robert.
They did not contact Katherine Gatto to learn about her business
dealings with Robert. Nor did petitioners file a civil action
against Robert or contact authorities about any possible crime.
Indictment
In early 1984, Robert told petitioners that he and Suzette
were under criminal investigation related to banking activities.
At the request of Robert and Suzette, petitioners provided Suzette
with money to pay her attorney’s fees. On November 9, 1984, Robert
and Suzette were indicted on bank larceny and conspiracy charges
concerning transactions that occurred beginning July 14, 1983, at
the Mechanics Bank in Richmond, California. Although the
indictment against Robert and Suzette did not involve any
transaction with petitioners, Mrs. Leonard was notified that some
of her account records were subpoenaed with respect to the
investigation. On February 21, 1985, Robert pleaded guilty to bank
larceny. The indictment against Suzette was eventually dismissed.
By early 1984, petitioners were aware that Robert and Suzette
had little money, that they were selling their personal property,
that they had borrowed money from Robert’s parents, and that their
residence and the Willow Creek property were in foreclosure.
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Last modified: May 25, 2011