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between the Gouveias and the Pago Trust are, with only minor
exceptions, identical to those contained in the property
agreement between CPS and the Pago Trust, and the formats of the
two agreements closely resemble each other.
After the Gouveias transferred the Prado Road property to
the Pago Trust and through 1998, petitioner supervised repairs
and improvements made by tenants and contractors to the inside
and outside of the buildings, oversaw maintenance and landscaping
work, responded to tenant complaints, signed new lease
agreements, and paid all of the expenses related to the property
from the Pago Trust’s bank account. Petitioner did not perform
his management duties full time but tended to the Pago Trust’s
business “after hours”.
To facilitate petitioner’s payment of expenses attributable
to the Prado Road property and, later, the Cross Street property,
which we discuss below, petitioner and Mr. Norton met
approximately three to four times each year. During these
meetings Mr. Norton signed checks drawn on the Pago Trust’s bank
account.14 Petitioner had usually filled out in advance the
checks that Mr. Norton signed, but Mr. Norton also regularly
signed groups of blank checks for petitioner’s use. In addition,
14Mr. Norton’s compensation for acting as trustee of the
Pago Trust ranged from $250 to $500 per year.
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