- 5 -
On July 1, 1994, Sun Federal, a corporation owned by Owen
Charles, another promoter of trust schemes similar to that of
Zero Gee, apparently replaced Bigelow Charter as the corporate
trustee of Zero Gee.
Under terms of the Zero Gee trust document, the trustees of
Zero Gee were to manage, operate, and control Zero Gee for the
benefit of the beneficiaries. During the years in issue,
however, neither the corporate trustee of Zero Gee nor Loren and
Bonnie Troescher were involved in any significant way in the
management, operations, and control of Zero Gee or LPS. Zero Gee
paid Sun Federal a total of only $3,600 a year for Sun Federal’s
alleged services as trustee of Zero Gee.
Under terms of the Zero Gee trust document and other trust
materials:
(1) The trustee was authorized to make noninterest
bearing loans to the Lunds; and
(2) Written approval of the trustees allegedly was
required for trust expenditures in excess of $5,000.
Any approval requirement, however, under (2) above was
rescinded on January 30, 1994.
After the purported transfer of LPS to the Zero Gee trust
and through at least 1996, petitioner continued to manage,
operate, and control the business of LPS and Zero Gee. The
business was conducted in the name of LPS and in essentially the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011