Eric B. Benson, et al. - Page 21

                                       - 21 -                                         
          The deed shows no consideration for the transfer and indicates              
          the transfer was a “gift to spouse”.                                        
               (f) ERG Check to Burton (Ref. Carroll)                                 
               On May 17, 1989, a petition for confirmation of arbitration            
          award and entry of judgment was filed in the California Superior            
          Court, San Francisco County.  According to that document, Michael           
          Brooks Carroll (Carroll) provided advice and legal services with            
          respect to the disagreement Burton had with his brother                     
          concerning the ownership, management, and control of NPI and ERG.           
          Burton withheld payment for such services.  The arbitrators                 
          rendered a decision that Burton owed Mr. Carroll $96,748.98, plus           
          interest thereon.                                                           
               On May 19, 1989, ERG issued Burton check No. 19888 for                 
          $96,748.98.  The check bears the notation “for Michael B.                   
          Carroll.”  The check was endorsed “For Deposit Only Wells Fargo             
          Bank 740-6070466," an equity credit line of the Bensons (the                
          Bensons’ Wells Fargo bank account).  The check was deposited and            
          accepted for payment on May 24, 1989.23  On or about May 23,                
          1989, Burton purchased a Wells Fargo Bank cashier’s check No.               
          13499 made payable to Carroll for $97,467.21 from the Bensons’              




               23The check was initially presented for payment on May 19,             
          1989, but not honored because of insufficient funds.  On May 24,            
          1989, the check was again presented for payment.                            





Page:  Previous  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  Next

Last modified: May 25, 2011