4: Paragraph 4 The lawyer who acted as co-trustee was Charles R.
Work, and the trustee had been American Security Bank in D.C., the one
that advertised it was on the back of a currency bill. When I was doing
my thesis on taxation of trusts and estates for my 1983 Master of Laws
in Taxation at Georgetown University Law Center, my thesis advisor had
been a senior trust officer from American Security, and he taught me
just about everything I knew about the practicalities of banks'
administering trusts before I came to Hutton.
4: Paragraph 5 An AE from Hutton's C18 brokerage office in D.C., Tom
Clark, had persuaded Work to move the trust, which was down to about $2
million because most of the principal had already been paid to the
beneficiaries, from American Security to Hutton Trust. Later on I found
in the file the misrepresentations Hutton Trust made to the federal
judge to get his approval, saying we were qualified to do business in
D.C. when we were not qualified to do business anywhere but in Delaware,
but all I knew the first day was that Butler told me to make
arrangements to receive and invest the assets.
4: Paragraph 6 We were going to put the assets in three accounts and
invest each separately to provide diversity of the investment portfolio
and because part of the principal was earmarked for the trust's
day-to-day operating expenses, but part was for long-term investment to
cover pay-outs in the distant future, which would diminish continuously.
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