Monday, September 6, 2010

Busted Trust

This my friends sounds like a barn-burner of a lawsuit.

Breach of fiduciary duty, outright fraud and a dash of criminal fraud thrown in as well. 

Apparently the D.A.'s office is looking at the actions of those involved as well.

Get some popcorn and sit back to watch.

Ms. Clark is pictured in a photo from 1930.

Lawsuit claims Citibank deprived 104-year old heiress of $80 M

By Dan Mangan - NY Post

A stunning lawsuit accuses Citibank of costing a 104-year-old Manhattan heiress’s trust fund up to $80 million by failing to invest its money properly, The Post has learned.

More than 70 years after a $3 million fund was established for reclusive, eccentric Huguette Clark in 1926, "the trust’s value was still only $3 million" because it was never invested in stocks and bonds as it should have been for at least part of that time, claim explosive documents filed by two former Citibank trust officers.

The money had apparently been parked completely in bonds for decades, generating some income for Clark to live on but little or no growth for the fund balance, the court papers claim.

Citibank’s handling of the fund "needs to be independently investigated because the liability is now about $80 million which [the bank] owes to [Clark’s] trust," according the lawsuit filed by former Citibank trust officers John Cullen and Veronica Juliano.

The two former trust officers are soon set to meet with the DA’s office, which is probing possible mismanagement of Clark’s $500 million fortune by her lawyer, Wallace Bock, and accountant, Irving Kamsler.

The rest of the story: