Money Tree Trial: The Verdicts Are In

By | October 27, 2016

After a three week trial, the jury ruled in favor of the plaintiffs, the Post Confirmation for Small Loans, Inc, on several counts.  This committee represented the debtors of the Money Tree, Inc and alleged that the defendants (listed here) profited from the Money Tree, Inc and its investors, even at the expense of the company’s health.  According to the original complaint filed with the Court in 2013, the plaintiffs alleged that the company was insolvent as early as 2000 and failed to disclose that to investors, while continuing to seek new and additional investments.

A hearing will be scheduled at a later date to determine the financial settlement.

Here are the verdicts for each count (according to court records):

Count 1 (Breach of Fiduciary Duties – Care)

In favor of the plaintiff as to at least one defendant

  • Estate of Vance R Martin
  • Bradley D Bellville
  • W Derek Martin
  • Jefferey V Martin

Count 2 (Breach of Fiduciary Duties – Loyalty)

In favor of the plaintiff as to at least one defendant

  • Estate of Vance R Martin
  • Bradley D Bellville
  • W Derek Martin
  • Jefferey V Martin

Count 3 (Breach of Trust)

In favor of the plaintiff as to at least one defendant

  • Bradley D Bellville
  • W Derek Martin
  • Jefferey V Martin

Count 4 (Conspiracy to Breach Fiduciary Duties)

In favor of the plaintiff as to at least one defendant

  • Bradley D Bellville
  • W Derek Martin
  • Best Buy Autos
  • Derek Martin Trust

Count 5 (Aiding and Abetting Breach of Fiduciary Duties

In favor of all of the defendants

Count 6 (Actual Fraud for the Compensation)

For the plaintiff and against Bradley D Bellville

For the plaintiff and against W Derek Martin

For the defendant Estate of Vance R Martin

For the defendant Jefferey V Martin

Count 7 (Fraudulent Transfer – Constructive Fraud for Compensation)

For the plaintiff and against Bradley D Bellville

For the plaintiff and against W Derek Martin

For the plaintiff and against Shana Shockley Martin

In favor of the defendant Jefferey V Martin

Count 8 (Preferences – Compensation Amounts

In favor of the defendant Bradley D Bellville

In favor of defendant Jefferey V Martin

In favor of defendant W Derek Martin

Count 9 (Actual and Constructive Fraud – Best Buy Portion of Bellville Compensation)

Defendants liable as to actual fraud

  • Bradley Bellville
  • Derek Martin Trust

Count 10 (Actual and Constructive Fraud for Stock Purchase Agreement Secondary Benefits)

Defendants liable as to actual fraud

  • Bradley Bellville
  • Derek Martin Trust

Count 11 (Actual and Constructive Fraud – Motor Club Transfers)

In favor of the defendant Bradley D Bellville

In favor of the defendant Estate of Vance R Martin

In favor of the defendant W Derek Martin

In favor of the defendant Jefferey V Martin

In favor of the defendant Grace Elizabeth Martin Johnston

Count 12 (Avoidance and Recovery of Preferential Transfers – Motor Club Year and Motor Club 90 Day Transfers

In favor of the defendant Bradley D Bellville

In favor of the defendant Grace Elizabeth Martin Johnston

In favor of the defendant Jefferey V Martin

In favor of the defendant W Derek Martin

Count 13 (Fraudulent Transfer – Actual Fraud for the Withdrawals – Debentures/Demand Notes)

In favor of the defendant Bradley D Bellville

In favor of the defendant Jefferey V Martin

In favor of the defendant W Derek Martin

In favor of the defendant Martin Family Group

Count 14 (Fraudulent Transfer – Constructive Fraud for the Withdrawals – Debentures/Demand Notes)

In favor of the defendant Bradley D Bellville

In favor of the defendant Martin Family Group

In favor of the plaintiff and against Jefferey V Martin

In favor of the plaintiff and against W Derek Martin

Count 15 (Fraudulent Transfer – Insider Preference Claim – Debenture/Demand Note)

In favor of the defendant W Derek Martin

Count 16 (Avoidance and Recovery of Preferential Transfers)

In favor of the defendant W Derek Martin

In favor of the defendant Shana Shockley Martin

In favor of Kimala B Martin

In favor of James Patrick Johnston

For the plaintiff and against Martin Family Group

Count 17 (Fraudulent Transfer – Actual Fraud for 2 Years of Lease Payments)

In favor of the defendant Martin Family Group

For the plaintiff and against Martin Sublease

Count 18 (Fraudulent Transfer – Constructive Fraud for 2 Years of Lease Payments)

In favor of the defendant Martin Family Group

For the Plaintiff and against Martin Sublease

Count 19 (Actual and Constructive Fraud for 4 Plus Years of Lease Payments)

In favor of the defendant Estate of Vance R Martin

In favor of the defendant Martin Family Group

In favor of Kimala B Martin

In favor of James Patrick Johnston

For the Plaintiff and against Martin Sublease

Count 20 (Avoidance and Recovery of Preferential Transfer – Preferences for 1 Year of Lease Payments)

In favor of the defendant Martin Family Group

In favor of Shana Shockley Martin

In favor of Kimala B Martin

In favor of James Patrick Johnston

For the Plaintiff and against Martin Sublease

Count 23 (Receipt and/or Payment of Improper Dividends)

In favor of the defendant Bradley D Bellville

In favor of the defendant Derek Martin Trust

In favor of the defendant Jeff Martin Trust

In favor of the defendant Johnston Trust

Count 25 (Punitive Damages)

Do you find that punitive damages should be considered against Defendant or Defendants? Yes

 



One thought on “Money Tree Trial: The Verdicts Are In

  1. John Gainous

    The investors of money tree knew that their funds were not guaranteed, but we thought the investment did have some sort of substance behind it to make it worthy of the investment of our money. As it turns out that substance was nothing but thin air. We were told by some not to invest with money tree an many of us replied that we needed the high rate of interest to supplement our income an interest at the banks was almost not existent, just as it is today. Another thing that made a great many of us (by the way there were 3,000 investors in four states) continue to invest was that nice lady on the other side of the desk telling us that money tree was in great shape. When I would ask how money tree could pay such high rates of interest while the banks were paying next to nothing, she would always be so convincing as too how they were able pay the high rates. We didn’t realize our funds were being used in ways to line the pockets of the very people we were putting our trust in. We were hurt bad financially by the unnecessary bankruptcy of money tree, but many elderly people are having to live on social security alone because their life saving were taken from them by the money tree.
    My wife an I blame ourselves for investing in an unsecured investment, an no one else.
    In closing I want to encourage everyone to be careful with their financial dealings with any financial institution. These people have inside information as to how well their company is doing financially an how ethically it is run.

    Reply

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