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As part of the transfer, the Gouveias’ existing loan on the Prado
Road property was repaid, allegedly by the Pago Trust.12
On March 15, 1995, the Pago Trust entered into a Property
Management Agreement (property agreement) with California
Property Services (CPS) that went into effect on April 1, 1995,
and continued until March 31, 1999. Under the terms of the
property agreement, CPS agreed to act as agent for the Pago Trust
and to perform the following duties with regard to the Prado Road
property: Advertise the availability of the property for rent,
initiate and sign lease agreements, collect rent payments, evict
tenants, make and/or supervise repairs, hire and supervise
contractors to maintain the property, pay expenses and costs
related to the property, deposit all receipts collected into a
trust account for the Pago Trust, and remit funds monthly to the
Pago Trust.13
On April 4, 1995, the Gouveias also agreed to act as the
Pago Trust’s agent and to provide management services for the
Prado Road property. The trust paid the Gouveias management fees
for their services. The relevant terms of the Property
Management and Maintenance Agreement (maintenance agreement)
12The record does not indicate how the Pago Trust obtained
the funds to satisfy the Gouveias’ debt on the Prado Road
property.
13The trust’s records show that the Pago Trust never made
any payments to California Property Services for its services
under the contract.
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Last modified: May 25, 2011