- 3 -
the authority to file suit, prepare and sign Federal income tax
returns, purchase and receive property, vote stock, make gifts,
etc., and generally to bind Ms. Elton with respect to all such
matters. The trust agreement empowered Mr. Siebert to act for
and bind Ms. Elton and made Mr. Siebert attorney in fact over all
of Ms. Elton’s property and rights to property received into the
trust.
Ms. Elton alleges that Mr. Siebert and another person
convinced her to place a substantial portion of her assets in a
“federal” trust. In addition, she states that assurances were
made that she would not be required to report income attributable
to the trust assets, which, under the trust agreement, would no
longer belong to her. Ms. Elton further alleges that, as a legal
matter, the trust agreement is a power of attorney.
Subsequently, Ms. Elton came to believe that the arrangement with
Mr. Siebert as trustee was an illegal scheme, and she brought
suit in Texas to have the trust declared void. Final judgment
was entered by a State court of Texas during September 1999,
rendering the trust void ab initio. The final judgment was
entered in accord with a compromise settlement agreement and
mutual release (settlement) executed by Ms. Elton, Mr. Siebert,
and a third person.
Among other terms, the parties to the settlement agreed to a
mutual rescission of the trust. In addition, Ms. Elton agreed to
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011