Division Courtroom

Eloistrict Court flD"nuer Probate Court
Douglas County, Colorado
Couri Address: 4000 Justice Way
Castle Rock, CO 80109
ATE FILED: October 3,2014 4:39 PM
Phone: 720.437.6200
ln the Matter of the Estate of:
A
A
TONI B. HENTHORN a/Ua TONI BERTOLET,
GOURT USE ONLY
Deceased
nttoiney or Party Without Attorney (Name and Address):
Walter M. Kelly tl, Reg,
#;
Case Number: 2013PR5'1
6061
Miller & Steiert, P. C.
1S01 W. Littleton Blvd.
Littleton, CO 80120
Phone Number: (303) 798-2525 E-mail: [email protected]
FAX Number: (303) 798-2526
Division
Courtroom
SPECIAL ADMINISTRATOR AND SPECIAL TRUSTEE'S AMENDED SECOND
STATUS RDPORT WITHOUT SUPPRESSED INFORMATION
Gary M. Clexton, as Special Administrator of the Estate of Toni Henthorn and
Special Trustee of the Harold and Toni Henthom Trust, hereby submits this Amended
Second Status Report without Court ordered suppressed infonnation concerning the
investigation of the nature, extent and disposition of any assets of Toni Henthorn so as to
conect any misinformation in the second amended status report filed September 19,
2014.
1.
On March 4,2014, this Court ordered my appointment as Special
Administrator of the Estate of Toni Henthom and Special Trustee of the Henthom Trust
pursuant to $g 15-12 -617, 15-12-709 C.R.S. and charged me with the duty to investigate
ihe nature, extent and disposition of any assets previor-rsly held by the Decedent, Toni
Henthom, prior to her death and to safeguard such assets until further order of this Court.
2.
The first status report was filed with the court on May 23,2014. Since
that time considerable new assets have been identified and many new questions regarding
the disposition of Ms. Henthorn's assets have arisen. Some of these new assets are a
result of information provided by Mr. Henthom and others have been identified through
the efforts of me and my staff.
3.
This Amended Second Status Report will summarize the cunent
disposition of the recently identified assets of Decedent, Toni Henthorn and list
information and documents still needed.
Current Status of Identified AsseIs
ln light of the multiple accounts and money being shifted between multiple
accoults *d tt . ongoing identification of new accounts, the requests for Mr' Henthorn to
provide complete and legible copies of statements from all hnancial entities from 2007 to
present have repeatedly been made. So far, partiai statements of selected months, some
illegible, have been provided but they are simply not sufficient to enable a thorough
identification and assessment of Ms. Henthorn's assets.
A)
lst Bank Account
1)
AccountNumber nC(-XXXfwas closed on September 13,
2012, andthe remaining $6,486.08 withdrawn. Mr. Henthorn has
stated those monies were used for family expenses.
)OO(-XXX-
was open sometime before
2) Account Number
6/712005, but was not included on the inventory completed by Mr.
Henthorn on March 14, 201 4. As of 9 127 12012, thete was $2A,797 .22
in this account.
From 10/2012to 312014, various deposits and withdrawals have been
made with a total of approximately $102,350.00 being withdrawn' As
of 311912014, $17,177 .95 was in the accorurt. This is the last statement
provided to me.
has been made to Mr, Henthorn to explain the source of the
money used to set up the account, the source of each deposit and the
A request
purpose for which each withdrawal was made. Informatiol regarding
one withdrawal from this account has been suppressed pursuant to this
Court's order and can be found on the suppressed information
provided separately. There has been no other response to date.
xxx-xxx-upp"urs
to have been opened in the
3) Account Number
nanre of Toni B. Henthorn Estate. On July 12,2073, the amoutlt in
this account was zero, u,'hich may indicate this is when the account
was opened. This account was not included on the inventory
completed by Mr.Henthorn on March 14,2014.
As with the previous account, various deposits of over $60,000.00 and
withdrawals have been made frotn 612013 to 612A1'4,leaving
$19,023,89 in the accorurt as of 6/2014.
A request has been made to Mr. Henthorn to explain the source of the
money used to set up the account, the source of each deposit and the
pulpose for which each withdrawal was made.
2
B)
Concordia Bank & Trust
The 28 Certificates of Deposit with Concordia have an approximate value
of approximately $132,952.00 as of August3l,2014.
There remain 200 shales of Concordia Capital Corporation owned by Toni
It is
B. Henthom as evidence by Concordia Capital Corporation Certificate
in Ms. Henthorn's possession but cannot be found
believed Cer(ificate
by Mr. Henthorn.
[.
#!was
The 200 shares of Concordia Capital Corporation continue with a value of
approxirnately $30,000.00. According to Concordia, the Certificate for the 200
dated 1213012011) in the name of Toni B. Henthoni
shares (Certificate
should be in the possession of the stockholder. A request has been made for Mr.
Henthorn to provide this Certificate to me for safekeeping. In addition, from
Apil201,4 to present, Ms. Henthorn's Estate has received $681.00 in distributions
which has been deposited in an account for the estate which was opened by me
with Summit Bank account ending
#J
iol
Mr. Henthorn provided me with a distribution check from Concordia
Capital dated MarchZl,2074, in the amount of $206. A "replacement reissued
distribution check" dated June 20,2014, in the arnount of $206.00 and a check
dated Augu st 22, 2014, in the amount of $206.00 have been received directly
from Concordia Bank. All checks received have been deposited in the eslale
account establishecl at Summit Bank, savings account number ending
inl
C)
Fidelity Investments - Account Number
(XXX-XXXI)
As of 613012014, there was $579,926.09 in the account in the name of the
Harold & Toni Henthora Trust. This account was not included on the inventory
completed by Mr.Henthorn on March 14,2014.
D)
Genworth Financial
-
A review of the IRS 201 I , 1040 joint tax rettrn for Harold and Toni
Henthom Forrn 8949, Sales & Disposition of Capitai Assets, revealed separate
u"t
at Genworth Financial.
accounts numbered
I
However, a review of the IRS 2012, 1040 j oint tax return Form 8949,
revealed new separate accounts at Genworth Financial numberedf and!!
The search for additional
with no mention of accountsl-af
information regarding these and perhaps other unidentified accounts contimtes.
We do know that in 2011, there were transactions from these Genworth
accounts. Documentation regarding these accounts was only produced in the late
aftemoon of Septemb er 15,2014, and there has not been adequate tirne for a
complete review. Nonetheless, a cursory review shows that about $305,000'00
deposited into Royal Alliance
fi.om Genworth accounts
See below.
brokerage account ending
]ndlwere
i",
E)
Royal Alliance Brokerage Accounts
There are now three accounts that have been located with Royal Aliiance.
Accouat Number )Ofi-XXX]|I in the Harold and Toni Henthorn
Trust. On 411312013 a check frorn Genworth, in the total amount of $305,031.34
was deposited into this account. It is unclear how this money was used' Only
partial statements for a limited time period regarding this account have been
provided, Efforts to obtain additional statements are ongoing by me as Royal
Alliance has refused to provide financial information to Mr. Henthorn.
In February 2014, there was a cash withdrawal of $70,000.00 from this
account. More information on where this rnoney went is available in the
Amended Second Status Report with Suppressed Information.
Account NumberXXX-XXilIl- in the Harold and Toni Henthorn Trust,
This accoult has been open since sometime in 2005, with a First Bank check in
the arnount of $ 100,000.00 being deposited into this account. Requests for the
status of flris account, what happened to this deposit, when and for what purpose
have been ignored. Only partial statements for a limited time period regarding
this account have been provided. Efforts to obtain additional statements are
ongoing.
Account Number XXX-XX)il!- appears to have been only Mr.
Henthorn's name. This account shows a withdrawal of $200,000 in December
2013 and a withdrawal of $230,000 in February 2014. Stocks in this account may
have been transferred fi'om Raymond James to Royal Alliance, but it is not
completely clear. More information on where this money went is available in the
Second Status Report with suppressed Information. Only partial statements for a
limited time period regarding this account have been provided. Efforts to obtain
additional statements are ongoing.
F)
TCF Bank
-
TCF Supe5avings"account number xxxxxflsumlnary sheet was
provided for transactions from May 10, 2013 to Marcir 31,2074, which contains
handwritten notes on some transactions. This document led us to believe a
checking account at TCF existed. $fter a specific request, partial and incomplete
(usually oniy the first page) documentation related to a checking account at TCF
for April2013 to March 2014,was plovided.
4
Checking account statements from May 2013 fluoughNovember 2013
show that Mr. Hinthorn added Linda K. Wilson to this account. Then as of
Decernber 2073,Mr. Henthorn added yet another person, Dennis A. Dahl to the
checking account. Whatever the re4son, this account is now at risk since it
appears Ms. Wilson ahd/6r Mr. Eahl, in addition to Mr. Henthorn have the ability
to withdraw all the fiurds in the account.
On late Monday afternoon, September l5,Z)l4,the checking account
staternent for June 2013 was provided again, this time with illegible copies of
checks written on the account. Ms. Wilson and Mr. Dahl were still on this account
with Mr. Henthom as of the date of this statement.
Also provided on September 15, were more savings account statements
dating from June 2103 through March 2014. Missing are statements after March
2014.
G)
Plains Marketing
- Oil and Gas Leases
There are four active leases in the name of the Toni B. Henthorn Estate.
Recordings were made in Adams, Franklin and Wilkinson Counties in Mississippi
for the various properties that interestsin these leases are under the supervision of
the Special Administrator and Special Trustee.
Mr. Henthorn provided me with 2 checks sent to him by Plains Marketing.
One dated March 20,2014, in the amourt of $2,354.81 and another dated April
2l , 2A74, in the amount of $2,603 .7 3 . However, he has not returned the check fbr
$44,525.1 7 dated February 12, 2014 or the check for $ 1,375.83 dated February
20,20T4.
The February 12,2014, cherk in the amount of $44,525.17 rvas deposited
V/e have not been able to determine where
in the lst Bank account
the February 20,2A14, check for $1,375.83, was deposited. Mr. Henthorn has
said the $44,525.17 was used for "family expenses." It is unclear how the
$ I ,3 75.83 was used.
x*x-**I
H)
Associates in Eve Care
In June 2011, Ms. Henthorn paid $71,500.00 to the professional group she
was joining for her equity ownership. Defened cornpensation payments of net
$91,713.71 on December 15,2072 and of net $2,142.25 in2013, were paid to Mr.
Henthorn. There has been no response to requests Mr, Henthorn to explain where
these payments went and for what purposes.
Associates in Eye Care sent two checks in the amount of $49,682.83, one
dated August 8, 2014, and the other August I 1, 2014, for a total of $99,365.66; as
payment for all of the shares of stock in Associates in Eye Care, P.C. held or
previously heid by Toni Helthorn for her equity interest in the group. These
che"ks were deposited in the estate savings account at Sumrnit Bank.
D
Raymond James Accounts and AXA Annuitv
The annuity remains with AXA through Raynond James. The market
value of the annuity as of August29,2014,is $t54,342.25. The death benefit
value is $204,907.59. Appalently, the money to fund this aruruity for Toni
Henthorn ($149,209.72) was given to her by her parents, Robert and Yvonne
Bertolet. In April 2011, Toni Henthorn's daughter, Haley was removed as
primary beneficiary and replaced with Harold Henthorn as primary beneficiary,
with Haley as contingent beneficiary.
Toni Henthom has a small IRA at Raymond James - Primary Account
nofiilIrwith a value of $27 ,692.65 as of August29,2Al4. This
includes the75 shares of Concordia Capital valued at $11.250.00, various mutual
funds worth $14,975.79 and $1,466.86 in cash.
Number
O
Compass
Bank-
This is a new financial entity identified since the last status report. Five
accounts have been found at this bank.
1)
Account Number )CXX-)(7ill @uild to Order Checking) - the
balance in this account as of September 28,2012,was $7,057.10. This
account was open prior to 2008 and was closed on May l,2013,by a
check being wlitten from the account in the amount of $26,051.05 and
apparently being deposited into an accorurt located at 1't Bank account
ending intJon May 15,2013. There has been no response to
requests for information about money deposited and withdrawn' The
was not
Build to Order Cheoking account numbet ending intr
14,
on
March
Henthorn
by
Mr.
completed
inventory
included on the
2014.
From September 21 ,z\lZ,until it was closed, approximately $91,000.00
was expended from this account. A response to requests for an explanation ofall
account deposits and withdrawals in excess of $ 1,000.00 is pending.
2)
this account was open prior to
Account Number xxx-)C(t2008 and now appears closed. As of September 12,2012, there was
approximately $108,000.00 in this account. This account was not
included on the inventory completed by Mr. Henthom on March 14,
20 1 4. There has been no response to requests for an explanation of
where the money went and of all accoult deposits and withdrawals in
excess of $1,000.00,
6
3)
Accou,t Nuruber Xfx-Xxf@referred Money Market) - was
open prior to 2008. The parats of Toni Henthorn apparently wired
$309,960.19 to this account in September 2008. This acconnt was
closed April 30,2013. This account was not included on the inventory
completed by Mr.Henthoru on March 14,2074.
From September 14,2012, ultil it was closed, approximately $159,000.00
was expended from this account. This account was not included on the inventory
completed by Mr. Henthorn on March 14,2014. There has not yet been a
response to requests for an explanation of all account deposits and withdrawals
excess
in
of $1,000.00.
4)
Account Number )OO(-fXIl (Toni B. Henthorn 2008 Life
Insurance Trust) had a bank balance of $258.38 as of December 2A12.
5)
Account Nuniber XXX->C(XX (Toni B. Henthorn 2010 Life
Insurance Trust) had a balance of $672.95 in December 2010.
AND
There has not been a response to a request to explain these two ILITs with
different tax identification numbers, their current status and what money went
where.
K)
Per Order of the Court. this section of the second status report is
suppressed and has been sent separately to Lhg Court.
L)
Life insurance policies
1) Anterican'General Life Inntrance - (Policy Number:
xxxxxx-
A life insurance policy with Mr. Henthorn as the primarflbeneficiary in
the amount of $1,500,000.00 was taken out on May 29,2047. The claims
examiner states that there has been no payout and no requests for payout.
2)
Genworth Financial Life Insurance
-
(Policy Number:
xxxil
An insurance policy with the Harold and Toni Henthorn Trust as the
primary beneficiary in the amount of $1,500,000.00 was taken out on April 9,
2005. According to the claims department, a claim was sent in for this policy on
October 1,2012. No payment was made. The process of placing the policy ftlnds
in a blocked Secure Access Account at Genworth has begun. This account will
earn2.50 oZ interest and no distribution will be made without order of the courl.
As of September, 17, 207 4, the net proceeds in this policy are $ 1,57 3,590.45.
7
3)
ING Insurance- (Policy Number:
(xxxxxxfr
Since Ms. Henthorn died within the first two policy years, ING has been
perfonning its constable review. It has determined that the application was vaiid
and the $1,500,000.00 policy taken out in 2010 is in force. The beneficiary of this
policy is Toni B. Henthom ILIT (Irrevocable Life Insurance Trust). ING has now
iompieted its review of Ms. Henthorn's medical records and verifuing her
answers on the application for any material misrepresentations, which it
determined were acceptable. In light of there being no cause of death and the
beneficiary being the Toni B. Henthorn ILIT, ING has agreed to await further
order of the court before making any distribution.
IvD
Real Estate Propertv
There are two properties at issue in this matter.
1)
9205 S. Sand
Hill
Street, Highlands Ranch, Colorado 80126,
This property was pruchased by Harold and Toni Henthorn on October 27,
2000, and held in joint tenancy. The purchase price was $472,900.00, We have
information that Toni Henthorn's parents, Bob and Yvomre Bertolet gave Toni
$206,600.00 toward the purchase price of the home. In addition, it appears Toni
Henthorn also used $108,000.00 frorn the sale of her condominium toward the
purchase price.
This property was transferred into the Harold and Toni Henthorn Trust,
but was not included on the inventory completed by Mr. Henthorn on March 14,
2014.
2)
246 and260 County Road 642, Grand Lake, Colorado 80447 ,
,
On Aprii 29,2lll, Harolcl ancl Toni Henthom transferred title to this
property to the Harold and Toni Henthorn Trust. It is my understanding that a
Notice of Lis Pendes with respect to both properties has been filed by counsel for
Robert and Yvonne Beflolet. A response to the request to provide insurance
policies for these homes is pending.
N)
Perso-nal
Propejty and Miscellaneous
Personal Property - Mr. Henthorn represented there were only two items
of Ms. Henthorn that were insured, the "fur" which is still in the house and the
engagement "stone" which fell out of the ring when she fell to her death.
A response to the request to explain the status of a sailboat and an ATV,
both listed on the financial statement is pending.
B
Files -After an in carnera review by the court, additional
estate planning documents were provided and are being reviewed.
Estate Planning
Tax Returns - In response to requests for Mr. Henthorn to identify and
provide copies of all Trust, Estate and his Federal and State tax returns filed since
2007 , tax retums for 2009 , 2010 ,2A11 , 2012 and 201 3 were produced on
Septenrber 15,20L4, and a review of those returns has begun. It remains to be
seen
ifreturns from 2007 ard2008 are needed.
Vehicles - There were apparently two cars that may have been jointly
owned by Mr. & Mrs. Henthorn, a2005 740BMW IL and a2013 Ieep.
Documents have also shown the existence of a sailboat and an ATV. There has
been no response to requests for infonnation related to these vehicles, other a
statement that since the automobiles were titled jointly, there are now owned by
Mr. Henthorn.'
o)
Outstanding Issues
As infonnation and documents are provided by Mr. Henthorn, more
questions arise and additional requests for information and documents have been
outstanding, some since August6,201,4. Mr. Henthorn has only provided partial
statements, some of which are illegible, for time periods selected by Mr.
Henthorn. He has not provided the complete, legible statements for the time
period requested. However, more documents continue to come in and this may be
changed in a subsequent status report,
At the end of the day, on Monday, September 75,2014, additional bank
documents were delivered. There has been only a brief opporhxrity to review
these documents and so it is unclear how much additional information and
documentation has been provided. There simply has not been suffrcient time to
review this newest box of documents and information.
Per Order of the Court. the-foloryine sec.tlon of the secoqC status
report is sunpressed and has been sent separatelv to the Court
Further, what is produced is usually incomplete and far short of the time
period requested for statements. Some monthly statements have one page or two,
while other statements from the same institution have 5 or 9 pages. Frequently, a
group of documents from a financial entity is missing different months and/or
pages,
This is as complete a status report regarding Toni Henthorn's assets as can
be made at this time in light of a lack of response to requests for information and
documentation or that additional informatior/docurnents have only recently been
provided. One of the biggest problems has been Mr. Henthorn's unwillingness or
inability to provide compiete statements from the rnultiple financial entities with
which he has had dealings for the years requested.
Once there is time to review the recently produced documents and
information and the additional requested ilfomration, documentation and
explanations that hopefully will be produced soon, an updated status report will
be filed with the Court as appropriate. If the Court has any questions or needs
clarification, I rvill respond as best as I am able.
Respectfully submitted,
Date: October 3,2014
/s/ Gar.v M. Clexton
Gary M. Clexton
Special Administrator of the Estate
Special Trustee of the Henthorn Trust
CERTTFICATE OF SERVICE
I hereby certify that on this 3rd day of October,2074, a true and conect copy
SPECIAL ADMINISTRATOR AND SPECIAL TRUSTEE'S
AMENDED SECOND STATUS REPORT WITHOI]-T SUPPRESSED
INFORMATION was mailed U. S. First class Mail and/or transmitted to Integrated
Coiorado Courts E-filing System for service upon the following:
the foregoing
William A. Bostrorn
Edward T. Schroeder
Bostrom Schroeder, P. C.
| 67 5 Broadway, Suite 2280
Denver, CO 80202
Anorneys for Harold A. Henthorn
Leia A. Ursery
Olsen Traeger & Ursery, LLP
650 S. Cherrl' Street
suite 850
Denver, CO 80246
Attorneys fsr Robert Bertolet, Yvonne Bertolet,
Barry Bertolet and Todd Bertolet
10
of
Barbara E. Cashrnan
The Law Offrce of Barbara Cashman, LLC
7955 E. Arapahoe Ct.
Suite 3000
Centennial, CO 80112
GALfor minor child
/s/ l)arvn A- UtrshI
Dawn A. Wright
11