- 7 - training presentation earlier in the year and who apparently prepared the trust documents. The directors were given broad authority to deal with trust property in their discretion for the benefit of HGAMC. The trust instrument further provided: “A Minute of Resolutions of the Board of Directors authorizing what they determine to do or have done shall be evidence that such an act is within their power.” Also on August 17, 1996, a management contract was entered between HGAMC and Mr. Richardson’s sole proprietorship Asset Protection Services. The agreement called for HGAMC to provide management services to the sole proprietorship, through the services of Mr. Richardson, in return for a “One time set up fee” of $40,000, a “Monthly management fee” of $12,000, and a charge for “Strategic and Tactical Planning for 1997” of $10,000. The agreement was executed by Mr. Richardson on behalf of Asset Protection Services and by both Mr. and Mrs. Richardson as directors of HGAMC.5 The majority of the stated fees were never paid. The contract was renewed on its anniversary in both 1997 and 1998 for compensation to be paid to HGAMC of $5,000 annually. Initial actions undertaken by HGAMC were memorialized in the minutes of the entity’s first board meeting on August 17, 1996. The trust instrument and the minutes reflect and reference the intended conveyance by Mr. Richardson to HGAMC of real and 5 The Court notes that as of Aug. 17, 1996, Mr. Richardson had not been appointed as a director of HGAMC.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011