Friday, August 2, 2013

The Word Of God

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)

http://lawprofessors.typepad.com/legal_profession/2013/08/the-illinois-administrator-has-filed-a-complaint-alleging-that-an-attorney-engaged-in-a-conflict-of-interest-by-drafting-a-se.html

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