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Sale" under which the Thompsons apparently took back a purchase
money mortgage on the property. The Thompsons continued to
participate in the Bauspar program until 1986 when the Sheas
decided to sell the Wahiawa property to a third party.
On January 30, 1985, Mr. Kersting sent Mr. Thompson a
schedule listing the interest payments that Mr. Thompson had made
during 1984 as follows:
Payee Amount
Bauspar, Inc. $6,420.00
Paragon Investments, Inc. 9,611.04
Citizens Financial, Inc. 14,400.00
Upon sale of the Wahiawa property by the Sheas in 1986,
Bauspar received a check in the amount of $75,511.74 in
satisfaction of the principal amount remaining due on the
Thompsons' loan from Bauspar.
2. Deterioration of Thompson/Kersting Relationship
While working on the Thompsons' estate plan, Mr. Huestis
asked Mr. Kersting for an accounting of the Thompsons'
investments in Kersting programs. By letter dated March 3, 1986,
Mr. Kersting responded by providing Mr. Huestis a summary list of
the Kersting programs that the Thompsons had participated in
during 1977, 1978, 1979, 1980, and 1981. By letter dated
March 12, 1986, Mr. Huestis informed Mr. Kersting that the
Thompsons wished to terminate their participation in all Kersting
programs and obtain a complete accounting of their investments.
Mr. Huestis also requested that all future communications
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