Friday, August 2, 2013
The Illinois Administrator has filed a complaint alleging that an attorney engaged in a conflict of interest by drafting a series of documents by which his family trust inherited from the client.
The charging document describes the trust:
...Respondent's father, Arthur G. Jaros Sr., established a charitable trust entitled Arthur G. Jaros Sr. and Dawn L. Jaros Charitable Trust ("Jaros Charitable Trust"). Respondent and his two younger siblings, Wesley A. Jaros ("Wesley") and Randall S. Jaros ("Randall"), were named trustees of the Jaros Charitable Trust. The Jaros Charitable Trust stated that its purpose was to "devote and apply … for the use of charitable, religious, and educational purposes and organizations … with special emphasis on the dissemination of the Word of God…. purposes be interpreted broadly to include such things as Christian based camps, youth facilities, family services and other organizations of a Christian based charitable nature."
After Respondent's father's death, the Jaros Charitable Trust was funded with approximately 34 acres of land located in Woodboro, Wisconsin, and $5,000,000 in cash. It was Respondent's idea, and the desire of his father and siblings, that the 34 acres of land be used for developing a Bible camp. In addition to the 34 acres of land, Respondent, as trustee of the Jaros Family Trusts, owned an additional 25 acres of land adjacent to the 34 acres, which would be available to the Bible camp's use.
On or about December 17, 2004, Respondent drafted and executed a form entitled "Articles of Incorporation - Nonstock Corporation" to organize a corporation in the State of Wisconsin. On the form, the name of the corporation was listed as Squash Lake Christian Camp, Inc. ("SLCC") and the three directors of SLCC were listed as Respondent and his two siblings, Wesley and Randall. The listed purpose of SLCC was to "operate for religious purposes a Christian Bible Camp in Oneida County, Wisconsin…." Respondent incorporated SLCC as a not-for-profit organization exempt from federal income taxes under the Internal Revenue Code 26 U.S.C. 501(c)(3). Later, Respondent amended the name of Squash Lake Christian Camp, Inc. ("SLCC") to Eagle Cove Camp and Conference Center, Inc. ("Eagle Cove Center").
At all times alleged in this complaint, Respondent was the President and Director of Eagle Cove Center. Respondent's two brothers were also directors and officers of Eagle Cove Center. In 2006, the estimated retail cost to develop Eagle Cove Center was $14,650,000.
The land in Woodboro, Wisconsin where Respondent was seeking to develop Eagle Cove Center, as described in paragraph two, above, was zoned as a Single Family Residential and Residential and Farming zones. Due to these zoning restrictions, Respondent was denied permits from the town of Woodboro and Oneida County to develop Eagle Cove Center. Respondent spent more than four years unsuccessfully requesting and applying for rezoning and conditional use permits to allow Respondent and Eagle Cove Center to develop the Christian Bible camp.
The complaint alleges that trust instruments drafted by the attorney gave $425,000 to Eagle Cove Center. (MIke Frisch)