. . File correspondence indicates investment policy
decisions are being developed and directed primarily by two
non-appointed persons, Mr. Thomas Clark, a sales broker for E. F. Hutton
Company and the subject trust accounts' transactions, and Mr. Robert
Warden, an associate attorney for Mr. Work's law firm. An apparent case
of self-dealing and improper delegation of duties is evident when Mr.
Work allows Mr. Clark to direct investment policy for the trust as well
as take commissions form the sale of trust investments."
4: Paragraph 14 Keep in mind the timing -- this report came two
weeks after the guilty plea to the check-kiting. By now the white-out
and retyping of the monthly reports was taking more than a month, so we
had trusts that hadn't received a statement from us since at least
February. The bank where Hutton Trust had its three checking accounts
refused to let us draw any more pension checks on funds that hadn't been
deposited yet, so we moved our accounts to a different Wilmington bank.
4: Paragraph 15 And then Clark popped up with the possibility of
getting the co-trustee of the trust for the Vietnamese orphans who had
been adopted outside the U. S. to move it to Hutton Trust, too! We were
trying to get straight with the commissioner about the mishandling of
the one we already had, and he was bringing in another, bigger one he
was planning to play just as fast and loose with and so create more
problems.
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