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Indiana State Bar Association files new trust mill suit: Indianapolis company accused of unauthorized practice of law

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A decade ago, Vesser and Helen Davis met with an estate planning company representative about how to divvy up their assets and their Hamilton County farm.

That representative drew on a flipchart, illustrated ways a partnership and corporation could be set up, outlined differences between wills and trusts, explained the probate process, and advised the pair how they could arrange their finances and establish a corporate structure for the family farm business. In the end, they paid thousands of dollars for an estate planning package they thought would be best for the family.

The elderly couple thought the person they met with was an attorney.

He wasn't. Their estate planning purchase was secured with inadequate and invalid paperwork, forced them to pay out even more money to redo the documents, and the couple ended up losing out on a $4 million offer for their farmland that had been put into a corporation and would have meant double taxation if a sale had happened.

Now that company - United Financial Systems in Indianapolis - is the defendant in an action filed with the Indiana Supreme Court on Oct. 9, accused of operating a trust mill that engaged in the unauthorized practice of law and wrongly collected more than $1 million from at least five families throughout the state. While not common in Indiana, this type of trust mill action follows a string of similar actions seen in courts nationally as the country's population ages and companies look to cater to those growing estate planning needs.

The case is brought on behalf of the Indiana State Bar Association, which with the state Attorney General's Office and the Indiana Supreme Court's Disciplinary Commission are the only three groups allowed to bring unauthorized practice of law actions. Indianapolis attorneys Kevin McGoff and Rafael Sanchez with Bingham McHale are representing the bar association.

In the 36-page filing, the ISBA outlines the background of the 26-year-old United Financial, located on the northwest side of the city. The company advertises itself as providing "suitable estate & financial planning solutions" and selling estate planning documents that include wills, trusts, and powers of attorney. The company also sells securities and insurance products such as annuities.

According to the complaint, an estate planning assistant who is not a lawyer contacts and sells the services; that information is passed on to a licensed lawyer who contacts the client by phone and crafts the documents before returning them to United Financial for review and delivery to the client. The salespeople are encouraged to educate clients about the need for estate planning, and are specifically told, "not to apply any legal principles to a client's specific circumstances." The fee for a basic living trust is $2,495 while a will preparation fee is $695, according to the complaint.

A disclaimer on its Web site says that the corporation is not engaged in the practice of law and isn't a lawyer or law firm, though exhibits presented by the ISBA point out that clients had very limited contact with the licensed attorneys and most of the individuals who advised them were non-attorneys.

A total of five counts are made in the ISBA's action - one for each person or couple who bought into an estate planning package with United Financial.

One victim is a 78-year-old Allen County woman who never married. She had 12,000 shares of Exxon Mobile stock estimated in value at $520,000. A previous will from 1987 would have given her six nieces and nephew 200 shares each, while the remaining shares would be evenly divided between her brother and sister. The complaint details how United Financial advised her to liquidate her stock and purchase annuities in February 2002, which ended up with her relatives receiving $5,000 instead of the stock shares and her getting hit with more than $130,000 in tax liability.

For the Davis family, their decision revolved mostly around their Westfield farm that encompassed more than 80 acres. They started meeting with a United Financial representative in January 1997, and within a few months had paid $5,150 for document preparation and to create a limited family partnership for their family farm business.

"The Davises' estate planning documents were inadequate and contained provisions that are invalid in Indiana," the complaint says. "In addition, the corporate documents sold to the Davises and prepared by United Financial in 1997 were deficient and ultimately resulted in gain being subject to double taxation due to the corporate structure, which United Financial recommended and then established for them."

As a result, the Davises ended up paying the family attorney $8,336 to redo the estate planning and corporate documents prepared through United Financial, and they were unable to accept a $4 million offer for their farm because the corporate structure setup through United Financial would have resulted in double taxation.

Vess Davis died in January and won't see the result of this action, but the ISBA hopes United Financial will be permanently enjoined from continuing this practice. The bar association also requests the court order the company to reimburse about $1 million in fees collected for the unauthorized practice of law, and to consider ordering United Financial to release all the names and address of clients and other employees who might be affected by the court's decision.
 Attorney Ron Elberger with Bose McKinney & Evans in Indianapolis, who is representing United Financial along with attorney Peyton Berg, says the company has taken substantial steps in the past and presently to make sure they are complying with state law.

"That's occurring and is ongoing," Elberger said, declining to elaborate because of the current case. "They have engaged counsel to assist them by adjusting their program so they're in compliance with Indiana law. The company looks forward to the opportunity to present its case in court."

While not common in Indiana, this issue is one that courts across the country are addressing more frequently. One of the two unauthorized practice of law actions filed in Indiana in recent years - State ex. Rel Indiana State Bar Assoc. v. Northouse, 848 N.E.2d 668, 672 (Ind. 2006) - did have a trust mill component, McGoff said.

In Northouse, the court addressed a case where two northern Indiana men had been engaging in the unauthorized practice of law by advising people on wills, trusts, and other documents without having law licenses. In a per curiam opinion, the court stated unequivocally that preparing and drafting a will and advising others on the legal consequences of specific estate-planning decisions constitutes the practice of law.

"Taking an action like this is not a common action within the legal community, but it's an action that's essential to protect elderly citizens from this type of practice," said ISBA president Bill Jonas of South Bend. "This is a consumer protection issue, and one we have to address because the legal community is often called upon to clean up what took place in these actions." •    
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  1. Am I the only one who sees that the City is essentially giving away the MSA site AND giving millions to build new buildings on the site when this site would be the perfect place for the Justice Complex? Across from City-County, check; keeping it centrally located, check, etc. It's my understanding that the GM site must be purchased by the City from Motors Liquidation Company. STOP WASTING WHAT WE ALREADY HAVE AND OUR TAX DOLLARS! The Ballard Administration has not been known for it's common sense...never voted for him and never will!

  2. This guy sounds like the classic molester/manipulator.

  3. Louis D. Brandeis was born in 1856. At 9 years of age it would have been 1865. The Brandeis family did not own slaves. My source Louis D. Brandeis: A Life, by Melvin L. Urofsky.

  4. My name is Matthew Lucas Major, I recently went through a jury trial in Bloomington , In. It was the week of Feb 19-21. Although I have been incarcerated since August 5, 2014. The reason I 'am writing to you sir is on the 21 of February the jury came in with a very excessive and wrongful verdict of guilty on 6 child molesting charges against my daughter who was 9 at the time I was accused. I also had 2 other Felonies one of Intimidation and 1 of Sexual Vicarious Gratification. Judge Marc Kellam on the second day of trial gave me a not guilty on those 2 felonies. The jury was sent out during that time and when brought back Judge Kellam told them to not concern themselves with the 2 Felonies that he ruled on them. They were told to not let evidence they had already heard influence there verdicts. I never in my life touched any child sexually and definitely not with my own daughter. When I was arrested Detective Shawn Karr told me I would be convicted guilty just on my daughters word even without evidence. That's just what happened. my public defender did me so wrong he never once proved to the court and jury all the lies the child told, and Jeremy Noel my public defender could of proven the lies easily. The stories in Serenity's depositions and Forensic interview changed and were not consistent as Prosecutor Darcie Fawcett claimed they were. Yet my attorney never mentioned that. The facts that the child accused me of full penetration in her vagina and rectum was proven lies. Doctor Roberta Hibbard of Riley hospital in Indianapolis confirmed Serenity's hymen intact, no scars, no tearing, no signs of rape to her. Yet my attorney didn't use that knowledge . the DNA was all in my favor. I tell you I will spend my entire life in prison going through rape and beatings etc. even Judge Kellam abused his authority by telling the jurors to listen and believe what the prosecutors side in evidence like my daughters testimony. In one interview with the detectives my daughter got flustered with her mom and said on camera " I'm saying what you told me to mom"!! Yet Mr. Noel said nor did anything to even resemble a defense attorney. Judge Kellam allowed edited version of a taped conversation between the child and her mother. Also Judge Kellam allowed the Prosecutor too bring in to my case a knife found under my seat, the knife wasn't part of my case. She was allowed by my attorney and the judge to put a huge picture of it on the screen and huge picture of my naked privates in a full courtroom and open court. Ms. Fawcett says to jury see how easy Mr. Major could reach the knife and cut his Childs throat. Even though I had no weapons charge against these cases. This gave the jurors prejudice thought against me thinking I threatened her with that knife and how scared she would of been knowing i could get it and kill her. On my sentencing court March 19, 2014 my public defender told Judge Kellam he wish to resign from being my attorney and wished for the court to give me outside council to file a error to trial or appeal. We were denied. Now after openly knowing my public defender don't want to represent me he has to. Well when as parents we make our kids clean a room when they really don't wish to, well the child will but don't mean she will do a good job, that's where I'm at with Mr. Noel. please dont ignore mine and my families pleas for your help . we have all the legal proof you could need to prove Im innocent. Please dont make my spend years in prison innocent when you can fix this wrong. Im not saying Im a perfect man or that I was a perfect dad to my 2 children none of us are. Ive made some bad choices in life and I paid for them. But I didnt ever touch or rape my daughter . I love my children with all my heart. And now through needing attention and a ex-wife who told my granny several times she wish she could put me in prison to get me out of their lives. Well my ex finally accomplished her goal. Sad part is she is destroying our daughter with all this horrific lies and things she taught my daughter to say. My daughter will need therapist to ever hope for a chance of a normal life after what she had done to her by her mom and their side of the family. My daughter told everyone even on stand she had a dream months before i supposedly molested her in this dream I was molesting her and when I finally did it matched her dream perfectly. She admitted to watching movies about little girls being molested and watching U-Tube videos about child molesting all before it happened supposedly to her. Doesn't that sound very unusual that a non molested 9 yr old would need to know so much about being molested? The only reason I could think a 9 year old would need so much information is to be prepared to know what to say and be able to say how it felt what took place etc.. So when questioned by authorities she would be prepared. And there again sir if a parent is pre grooming a 9 year old child she would need intimate details . Like telling her daughter about a couple moles on my private area. The child admitted to sneaking my cell and looking many many times at nudes of me and my girlfriend even one where my penis was entering my girlfriends vagina. In that picture my moles are obvious. Yet when prosecutor showed everyone in court my privates and pictures of the moles she said the only way the child would know about them is if she saw them for herself. My attorney once again said nothing about the pictures my child saw. Or could a ex-wife be able to describe my moles to help her case against getting rid of me? I beg you help me. This is my very existence. Ive lost everything , a good job, a wonderful girlfriend, my freedom, but worse thing Ive lost is my children. They were my reason to get up every morning and strive to be better. The wonderful bond I had with my Serenity is gone. After this I would be afraid to even hug her for fear of what next can they do to me. I'm not afraid to tell you I sit here in this cell and try to hold back my tears. Everyone knows you cant show weakness in prison. My life has already been threatened here at Wabash Valley Prison. After only 3 days of arrival. I was tricked into signing a waiver now Im in G Block General Population with 6 child molesting felony charges. Mrs. Hart as a 18 year old I almost died hooked to machines in hospital almost 1 month and now I know that fear was childish compared to this . I cant help but put emotions in this, after all Mrs. Hart Im human and God help Me I never been more afraid in my life. I didnt hurt my little girl I didnt touch her sexually. As much as it shreds me and fills my mind what Im facing I worry more about my mom and granny because of their great love for me mam they are suffering so deeply. I aint done this things but my loved ones suffering right along beside me and If you take my case you will be in essence freeing them also. I sent momma this letter and asked her to email it to you. I'm scared I have been done so unjustly by our legal system and I need you to fix this and give me freedom. I ask you please don't just ignore my pleas. Here in America its nice to be able to trust our legal justice system, well they destroyed my and my loved ones trust in our justice system . And I'm trusting in You !!! My entire family is suffering this nightmare with me. My 77 year old granny had a stroke and isn't doing so well. My single mother that raised 3 kids alone is dying from Lupus and since my arrest has stayed so sick and weary. Our lives torn to peices by a government I was taught I could trust in. my momma has tried so many innocent project and wrongfully accused and cant get anywhere. please please help me. A quote from the late Nelson Mandela: To be free is not merely to cast off ones chains, But to live in a way that respects and enhances The Freedom Of Others. I have Faith in you and your clinic to cast my chains off and give me freedom I do deserve as a wrongfully accused Man, son, brother, father, friend. Matthew Major DOC# 246179 Cause # : 53c02-1308-FA-000779 God Bless you. Please contact me with your decision so I know you made a life changing decision for me , just please at least write me so I know you care enough about your citizens to respond to cries for your help. You can speak openly with my mother Charlotte Spain (828) 476-0406: 71 Lakeview Dr. Canton, NC 28716 Thank You Matthew Major I know yall get thousands of request and inmates claiming innocence, and each person who are innocent deserve to have organizations like yours willing to fight for them and I give yall so much Thanks and I thank God everyday yall are out there caring enough to help free the innocents. Since discovering firsthand how easily lives and families can be destroyed by Poor Defense attorneys not doing their job . And Prosecutors allowed to do as they please in court

  5. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

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