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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.
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Last modified: May 25, 2011