STATE OF NEW MEXICO COUNTY OF BERNALILLO SECOND … DSLM 2017 Receiver Reports.pdfKevin A. Graham,...

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STATE OF NEW MEXICO

COUNTY OF BERNALILLO

SECOND JUDICIAL DISTRICT COURT

FINANCIAL INSTITUTIONS DIVISION,

Petitioner,

v. NO. D-202-CV-2017-03838

HON. NAN NASH

DESERT STATE LIFE MANAGEMENT,

PAUL A. DONISTHORPE,

SPECTRUM CAPITAL MARKETS, LLC,

CORAZON CATTLE,

CORAZON-PITCHFORD, LLC,

PAUL A. DONISTHORPE, LLC, AKA PAD, LLC,

Respondents.

RECEIVER’S DECEMBER, 2017, MONTHLY REPORT

COMES NOW, Christopher Moya, court-appointed Receiver for Desert State Life

Management (DSLM) and Acting Director of the Financial Institutions Division (FID) of the

New Mexico Regulation and Licensing Department, by and through the FID’s attorney of record,

Kevin A. Graham, and provides the Court with the following Receiver’s December, 2017,

Monthly Report.

STATUS OF ACCOUNTS

1. Charles Schwab Accounts: The Receiver continues to work to obtain full

access and control over the electronic financial accounts of DSLM held with

Charles Schwab. Multiple communications have taken place between the

Receiver, assigned staff members from the FID, and representatives of Charles

Schwab. As of the date of the filing of this December, 2017, Monthly Report, the

Receiver has still not gained full access and control over the accounts held at

FILED IN MY OFFICEDISTRICT COURT CLERK

12/4/2017 3:22:52 PMJames A. Noel

Patsy Baca

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Charles Schwab, but it is believed that process will be completed within the next

thirty (30) days.

2. Funds: The Receiver is in control of the following bank accounts and

funds in the name of DSLM and account balances as of November 30, 2017, stand

at the following amounts:

DSLM Accounts with New Mexico Bank and Trust:

(1) “Operations” account: XXXX190 $ 0.00

(2) “Sweep” account: XXXX041 $ 0.00

(3) “Pooled Savings” account: XXXX119 $23,800.23

(4) “Trust Cash” account: XXXX127 $52,196.28

(5) “Recovery” account: XXXX309 $13,428.23

(6) “Trust Checks” account: XXXX116 $ 5,210.21

3. Examination of Records and Accounts:

Staff from the FID are working to complete the organization of the voluminous

paper records maintained by DSLM, and now in the possession of the

Receiver/FID. Those records continue to be reviewed and organized by the FID

staff. Efforts to organize the DSLM corporate records and verify data have led to

numerous determinations that certain vital records are missing from the DSLM

files and/or that records containing incorrect and intentionally falsified records

were created.

The FID’s staff working on this project continue to be focused on

producing verifiable accountings for each individual trust account and other client

accounts that can be provided to the individual trust beneficiaries and/or

conservatorship clients detailing the current balances in their respective accounts

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and the amount of total loss individually suffered. Providing this documentation

to the individuals determined to have suffered losses under the operation of

DSLM in recent years should provide the ability for those individuals to file

appropriate insurance claims as well as to pursue all appropriate claims through

the courts. Another continuing focus of the Receiver/FID has been to make

certain that any incoming funds to the accounts of DSLM are properly tracked

and credited to the individual trust and/or conservatorship accounts to which those

funds properly belong.

4. Conservatorships and Trust Clients: The Receiver is working to have new

conservators appointed for all clients of DSLM for whom DSLM had been

appointed conservator. [Receiver currently believes there to be a total of six (6)

individuals for whom DSLM is on record as conservator, with two (2) of those

individuals believed to be deceased.] The Receiver also continues to work to

move all trusts currently under the trusteeship of DSLM over to new, permanent

trustees. At this time, by necessity, the Receiver is serving in the temporary

capacity as trustee for sixty-three (63) trust accounts, as the Personal

Representative for one (1) individual, and there are seven (7) accounts for which

DSLM’s role (and thus, the Receiver’s role) is still undetermined based on the

transactions in those individual’s names. The Receiver has engaged in direct

efforts to reclaim funds identified as having been unlawfully taken from the

company and/or clients of the company.

5. Federal Criminal Prosecution: The Receiver is working in coordination

with the United States Attorney’s Office for the District of New Mexico to obtain

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restitution orders in the federal criminal case against Paul A. Donisthorpe. In the

federal criminal case, Case No. 2017-3311 JB in the United States District Court

for the District of New Mexico, Donisthorpe plead guilty on November 27, 2017,

to two (2) felony charges and stipulated to having stolen over $4.8 million dollars.

Donisthorpe’s plea also contained a stipulation to the forfeiture of parcels of real

property to be utilized for the purpose of obtaining restitution funds for the

victims of Donisthorpe’s crimes. The Receiver will continue to work with the

U.S. Attorney’s Office in efforts to recover funds through the criminal restitution

process for the clients of DSLM.

On behalf of the Receiver, Christopher Moya, the foregoing is respectfully

submitted by:

_________________________

Kevin A. Graham

Counsel to the Receiver/

Senior Enforcement Counsel

Financial Institutions Division

New Mexico Regulation and Licensing Department

2550 Cerrillos Road, 3rd Floor

P.O. Box 25101

Santa Fe, New Mexico 87505

(505) 476-4971

CERTIFICATE OF SERVICE:

The undersigned hereby certifies that a true and correct copy of the foregoing pleading was

delivered by electronic mail and/or U.S. Mail, postage prepaid, addressed to each of the

following:

1. Paul A. Donisthorpe

[email protected]

and

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[email protected]

2. K. Stephen Royce

Cuddy & McCarthy, LLP

7770 Jefferson Street NE, Ste. 102

Albuquerque, NM 87109

Counsel for Desert State Life Management and L. Helen Bennet

3. Paul Kennedy

Paul Kennedy & Associates PC

201 12th Street NW

Albuquerque, NM 87102-1815

[email protected]

Counsel for Liane Kerr

4. Spectrum Capital Markets, LLC

[email protected]

and

[email protected]

5. Corazon Cattle

[email protected]

and

[email protected]

6. Corazon-Pitchford, LLC and/or Darrell Pitchford

[email protected]

and

[email protected]

and

Scott Fuqua

Fuqua Law & Policy, PC

P.O. Box 32015

Santa Fe, NM 87594

[email protected]

Counsel for Darrell Pitchford

7. Paul A. Donisthorpe, LLC

[email protected]

and

[email protected]

8. Kenneth C. Leach

Kenneth C. Leach & Associates, P.C.

320 Osuna Road NE, Unit G-4, Box 15


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[email protected]

Counsel for Judith Mahar

9. Michael White 74760

OCPF EC-65

10 McGregar Range Rd.

Chaparral, NM 88081-7753

10. Bryan Biedscheid

Sawtell, Wirth & Biedscheid, P.C.

708 Paseo de Peralta

Santa Fe, NM 87501

[email protected]

_________________________

Kevin A. Graham

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STATE OF NEW MEXICO




Petitioner,

v. NO. D-202-CV-2017-03838

HON. NAN NASH




CORAZON CATTLE,



Respondents.

RECEIVER’S FINAL INVENTORY AND REPORT

(SUBJECT TO ADDENDUM AS MAY BE AUTHORIZED BY THE COURT)




Kevin A. Graham, and provides the Court with the following Final Inventory and Report

(Subject to Addendum as May be Authorized by the Court), and an update on the Receiver’s

actions in this matter since the filing of the Receiver’s Initial Inventory and report on September

5, 2017.

Despite the Receiver’s efforts, along with the efforts of additional staff members of the

FID who have been assigned to this matter, the Receiver is unable to provide a truly

comprehensive accounting for the business (or individual clients of the business) at this time.

The Receiver believes it will be necessary for the Receiver to submit an updated financial

accounting for the business and individual trust/client accounts after further investigation has

been completed. The Receiver hereby requests the Court approve the filing of an Addendum to

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this Final Inventory within ninety (90) days of the date of the filing of the present Final

Inventory.

FINAL INVENTORY OF RECEIVERSHIP ESTATE ASSETS

1. Real Estate:

The Receiver has identified funds that appear to have been unlawfully removed

from the business accounts of DSLM, client trust investment accounts, and/or

trust cash accounts of trusts under the administration of DSLM, and those funds

then utilized to pay mortgage payments, tax assessments or penalties, or other

bills concerning the following real properties, thereby creating at least a partial

ownership interest in these real properties for the Receivership Estate:

A. Office building located at 1011 4th Street NW, Albuquerque, New

Mexico, 87102, also known as Tract B and C of Boughs Subdivision, Bernalillo

County, New Mexico.

[Note: This property appears to be listed on public records as being

owned by “1011 Fourth Street NW LLC.” Per the “Amended Stipulated Marital

Settlement Agreement” filed in Sandoval County District Court Case No. D-

1329-DM-2017-0187 in the divorce action between Liane E. Kerr and Paul A.

Donisthorpe, which was made part of the Court’s “Final Decree of Dissolution of

Marriage” in that case on June 19, 2017, it is provided that Paul A. Donisthorpe

will waive all rights and interest in the 1011 Fourth Street NW LLC and his

interest in the LLC (and therefore his interest in the building at 1011 4th Street

NW) will be transferred by Paul A. Donisthorpe to Liane E. Kerr.]

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B. House, outbuildings and ten (10) acres of land located at 130

Hidden Lake Circle, Angel Fire, New Mexico, 87710, and set out in Plat Book 9,

Page 20, records of Colfax County, New Mexico.

[Note: Per the “Amended Stipulated Marital Settlement Agreement” filed

in Sandoval County District Court Case No. D-1329-DM-2017-0187 in the

divorce action between Liane E. Kerr and Paul A. Donisthorpe, which was made

part of the Court’s “Final Decree of Dissolution of Marriage” on June 19, 2017, it

is provided that Liane E. Kerr will waive all rights and interest in the house and

property at 130 Hidden Lake Circle and the house and property shall be the sole

property of Paul A. Donisthorpe.]

[Note: Lis pendens has been filed by the Receiver with the Colfax County

Clerk on this property.]

C. Ranch property, mobile home, barn, corrals and assorted out-

buildings located in the area of Athens, Texas, 75752, described as Atwood James

B. No. 19, Henderson County, Texas, which under a real estate sales contract in

the name of Corazon-Pitchford Cattle Co. LLC.

[Note #1: Per the “Amended Stipulated Marital Settlement Agreement”

filed in Sandoval County District Court Case No. D-1329-DM-2017-0187 in the



is provided that Liane E. Kerr will waive all rights and interest in Corazon-

Pitchford Cattle Co. LLC and this LLC and property owned by the LLC shall be

the sole property of Paul A. Donisthorpe.

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Note #2: On the date of October 25, 2017, the Receiver, along with legal

counsel, conducted a physical inspection of the above-described real estate,

livestock and other property located in Athens, Texas. On that date meetings

were held with Darrell Pitchford, a minority owner of Corazon-Pitchford LLC,

regarding issues surrounding the currents debts, assets and value of the property

that has been listed as being included within the receivership estate for DSLM.

Negotiations towards the achievement of a settlement whereby Mr. Pitchford

would provide a lump sum payment of cash to the receivership estate in exchange

for a release of claims by the receivership estate against the real property and

other assets of Corazon-Pitchford LLC, and against Mr. Pitchford and his wife as

minority owners of the company, are ongoing.]

D. House and outbuildings located at 10439 Fourth Street NW,

Albuquerque, New Mexico, 87114, also described as Tract C of Martinez

Subdivision Bernalillo County.





is provided that Paul A. Donisthorpe will waive all rights and interest in the

10439 Fourth Street NW property and the house and property shall be the sole

property of Liane E. Kerr.]

2. Office Equipment:

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Office equipment that was found by the Receiver/FID to be located at the

former offices of DSLM, located at 1011 4th Street NW, Albuquerque, New

Mexico, or within a rented storage unit at the “Justorage” document storage

facility located at 720 1st Street NW, Albuquerque, New Mexico, that has now

been taken into the physical custody of the Receiver/FID and stored within the

offices of the FID of the New Mexico Department of Regulation and Licensing in

Albuquerque, New Mexico, include:

A. Eight (8) personal computer towers;

B. Five (5) monitor screens for personal computers;

C. Five (5) desk-top printers for personal computers;

D. Three (3) “ten-key” electronic office calculator devices;

E. Twenty-six (26) four-drawer, standard-sized filing cabinets;

F. One (1) three-drawer, legal-sized, horizontal filing cabinet;

G. One (1) four-drawer, legal-sized, fire proof filing cabinet;

H. One (1) vertical, two-door, metal office supply cabinet containing

various disposable office supplies.

3. Miscellaneous:

A. 2012 Dodge Ram truck.





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is provided that this 2012 Dodge Ram truck will be the sole property of Paul A.

Donisthorpe.]

B. 2016 Merhow horse trailer with living quarters.





is provided that this trailer will be the sole property of Liane E. Kerr.]

C. Assorted cattle, including inseminated/bred cattle, and bovine

genetic materials believed to include bull semen and fertilized bovine embryos

held under the ownership of Corazon-Pitchford Cattle Co. LLC in and around the

area of Athens, Texas.

[Note #1: The Receiver is still in the process of determining the extent of

any assets of Corazon-Pitchford LLC that may be properly included within the

receivership estate.

Note #2: Please see the text of the “Note #2” to Section 1, paragraph C,

above.]

4. Trusts/Trust Investment Accounts:

A list of individual trusts currently under the trusteeship of DSLM

(identified by first initial of first name and first initial of last name) was attached

as “Exhibit A” to the Receiver’s Initial Inventory which was filed with the Court

on September 5, 2017.

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Exhibit A also reflects the following information:

A. Client accounts of DSLM where an associated individual trust

investment account exists, along with the name of the financial institution where

the account is held.

[Note: The Receiver has not yet completed individual accountings for

each of the trusts and/or trust investment accounts listed; individual company and

trust account balances are not being included in this report as such account

balances could not be verified for accuracy by the Receiver at the time of this

report. The Receiver is optimistic that account balances will be able to be

provided to trust beneficiaries (or their conservators, guardians or other

authorized representatives) within ninety (90) days of the filing of this Final

Inventory and Report.]

B. Client accounts for conservatorships where DSLM has been court-

ordered as the conservator for an individual.

REPORT OF RECEIVER’S ACTIVITIES - UPDATE

1. File and Computer Security:

A. To the knowledge of the Receiver, all hardcopy (paper) files of

DSLM have been taken into the Receiver’s physical custody. An electronic copy

of records related to the operation of DSLM that were in the possession of the

company known as “The Becerra Group” were obtained by the Receiver/FID on

the date of October 20, 2017.

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B. To the knowledge of the Receiver, all computers owned by DSLM

that were located by the Receiver and/or the FID within the former business

location of DSLM (1011 4th Street NW, Albuquerque, New Mexico) have been

taken into the physical custody of the Receiver.

[Note: The Receiver is aware that certain computerized records of the

business operations of DSLM may be contained on computers and/or other

electronic storage media (computer hard drives, thumb drives or other data

storage media) in the possession of Respondent Paul A. Donisthorpe, or others.

Prior to the Court’s order appointing Christopher Moya as Receiver in the above-

captioned matter, Mr. Moya, in his capacity as Acting Director of the FID, with

obtained temporary custody of a personal computer owned by Paul A.

Donisthorpe which contained a variety of electronic records related to the

operation of DSLM. Mr. Moya was able to have electronic copies made of the

relevant records from that computer before the computer was returned to Mr.

Donisthorpe via Mr. Scott Kominiak. The Receiver is in possession of the copy

of the records copied from Mr. Donisthorpe’s personal computer.]

C. The Receiver has obtained access to, and control over, the

electronic banking accounts of DSLM held at New Mexico Bank and Trust. All

access to those accounts has now been transferred to, and limited to, the Receiver

and FID staff members as designated by the Receiver.

D. The Receiver has obtained access to, and control over, the

electronic financial accounts of DSLM held with Vanguard. All access to those

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accounts has now been transferred to, and limited to, the Receiver and FID staff

members as designated by the Receiver.

E. The Receiver continues to work to obtain full access and control

over the electronic financial accounts of DSLM held with Charles Schwab.

Multiple communications have taken place between the Receiver, assigned staff

members from the FID, and representatives of Charles Schwab. As of the date of

the filing of this Final Inventory and Report, the Receiver has still not gained full

access and control over the accounts held at Charles Schwab, but it is believed

that process will be completed within the next thirty (30) days. The Charles

Schwab company has assured the Receiver that all access to those accounts has

been restricted pending a final transfer of control over those accounts to the

Receiver.

2. Contacts with Trust Beneficiaries/Concerned Individuals/Representatives:

A. On or about April 21, 2017, the FID, in advance of the Court’s

order appointing Christopher Moya as receiver in this matter, sent a first round of

correspondence to all identified clients and/or trust beneficiaries (or their

representatives) alerting as many affected individuals as possible of the FID’s

determination of serious irregularities in the accounts and operations of DSLM

and recommending all affected individuals consult with legal and/or financial

advisors concerning their rights.

B. Following the transmittal of the initial letter to DSLM’s clients and

other affected individuals in April, 2017, the FID has received contact from

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numerous DSLM clients and affected individuals, family members and

representatives for such individuals and legal counsel concerning the examination

the FID’s examination of DSLM, and now concerning the receivership for

DSLM.

C. On or about August 9, 2017, following this court’s order

establishing the receivership for DSLM and appointing Christopher Moya, Acting

Director of the FID, as receiver for the company, Mr. Moya caused another round

of correspondence to be mailed (and/or electronically transmitted) to all clients

and affected parties for whom the FID had collected contact information

(addressed to the affected parties directly or to their representatives or counsel, if

known.) This letter provided information concerning the court’s order of

receivership, a brief update on the status of DSLM and its continuing operations,

and again recommended that all affected parties seek out personal legal and

financial advice regarding their rights and options.

D. In order to assure that individuals affected by the operation of

DSLM (and now the receivership of the company) would be able to contact the

receiver/FID, Christopher Moya, Acting Director of the FID and Receiver for

DSLM, caused to be created a specific email address that is regularly reviewed by

staff members of the FID and is for the sole purpose of receiving/transmitting

communications related to DSLM issues; the email address is:

[email protected]

E. Likewise, Acting Director/Receiver Moya has set up a telephone

number, monitored by staff members from the FID, for the sole purpose of -

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receiving/transmitting communications related to DSLM issues; the telephone

number is: 505-476-4971.

F. Further, Receiver Moya (through the FID) has opened a U.S. Mail

post office box for receiving mailed correspondence and other materials related to

the operation of DSLM; the address for the post office box is: P.O. Box 93847,

Albuquerque, NM 87199.

3. Funds:

A. The following bank accounts and funds in the name/control of

DSLM have been located by the Receiver and the Receiver has taken over control

of the accounts (account balances as of October 31, 2017):

DSLM Accounts with New Mexico Bank and Trust:

(1) “Operations” account: XXXX190 $ 0.00

(2) “Sweep” account: XXXX041 $ 0.00

(3) “Pooled Savings” account: XXXX119 $14,985.37

(4) “Trust Cash” account: XXXX127 $55,562.52

(5) “Recovery” account: XXXX309 $13,428.23

(6) “Trust Checks” account: XXXX116 $ 7,663.57

B. Individual Trust Investment Accounts:

Please see the “Exhibit A” that was attached to the Receiver’s Initial Inventory and report

for a list of individual trust investment accounts that have been identified by the Receiver.


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A. The Receiver has gained operational and legal control over all

bank accounts under the name of DSLM that are held at New Mexico Bank and

Trust (the primary banking institution utilized by DSLM for operational

accounts.)

B. The Receiver is engaged in ongoing contact with the Charles

Schwab investment company and the Vanguard investment company where a

number of individual trust investment accounts were located. The Receiver has

made efforts to insure that no other party may have access to these accounts

pending the accounts being put fully under the control of the Receiver.

C. Staff from the FID were assigned to complete an initial

organization of the voluminous paper records maintained by DSLM, and now in

the possession of the Receiver/FID. As was noted in the Initial Inventory and

Report, DSLM was conducting business via an almost entirely paper-based record

system which has proven extremely difficult to deal with and many

inconsistencies have been identified. Those records continue to be reviewed and

organized by the FID staff. As also previously noted, efforts to organize the

DSLM corporate records and verify data have led to numerous of determinations

that certain vital records appear to be missing from the DSLM files and/or that

records containing incorrect (possibly intentionally falsified) records have been

created.

The FID’s staff working on this project continue to be focused on

producing verifiable accountings for each individual trust account and other client

accounts that can be provided to the individual trust beneficiaries and/or

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conservatorship clients detailing the current balances in their respective accounts

and the amount of total loss individually suffered. Providing this documentation

to the individuals determined to have suffered losses under the operation of

DSLM in recent years should provide the ability for those individuals to file

appropriate insurance claims as well as to pursue all appropriate claims through

the courts. Another continuing focus of the Receiver/FID has been to make

certain that any incoming funds to the accounts of DSLM are properly tracked



5. Summary:

As was included in the Initial Inventory and Report, the Receiver has

determined that DSLM, as a business providing trustee and conservator services,

cannot be rehabilitated and that liquidation of the company is the only appropriate

course forward. Despite the best efforts of the Receiver and the FID staff, while

the picture of the current assets and liabilities of DSLM is clearer, accurate

accountings of each of the trust accounts under the control of DSLM have not yet

been completed. The Receiver is working to have new conservators appointed for

all clients of DSLM for whom DSLM has been appointed conservator. The

Receiver also continues to work to move all trusts currently under the trusteeship

of DSLM over to new and proper trustees. The Receiver has engaged in hands-on

efforts to reclaim funds identified as having been unlawfully taken from the

company and/or clients of the company and to return those funds to their rightful

owners.

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submitted by:

_________________________

Kevin A. Graham






P.O. Box 25101


(505) 476-4971




following:


1011 4th Street NW, Albuquerque, New Mexico, 87102

and

[email protected]

and

[email protected]

2. A. Blair Dunn

WARBA, LLP

400 Gold Ave SW, Suite 1000


[email protected]

Counsel for Helen Bennet

3. Paul Kennedy


201 12th Street NW


[email protected]




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and

[email protected]

5. Corazon Cattle


and

[email protected]


[email protected]

and

Scott Fuqua


P.O. Box 32015

Santa Fe, NM 87594

[email protected]




and

[email protected]

8. Judith D. Mahar

1398 Wilkes Way SE

Rio Rancho, NM 87124

9. Michael White 74760

OCPF EC-65

10 McGregar Range Rd.

Chaparral, NM 88081-7753

_________________________

Kevin A. Graham

of 6

STATE OF NEW MEXICO




Petitioner,

v. NO. D-202-CV-2017-03838

HON. NAN NASH




CORAZON CATTLE,



Respondents.

RECEIVER’S SECOND MONTHLY REPORT, OCTOBER, 2017




Kevin A. Graham, and provides the Court with the following report of the Receiver’s actions

over the preceding month.

1. File and Computer Security:

A. The Receiver continues to work to obtain full access and control

over the electronic financial accounts of DSLM held with Charles Schwab. The

Receiver has been assured by the company that all access to those accounts has

been restricted pending a final transfer of control over those accounts to the

Receiver.

B. The Receiver has been in contact with Steven Becerra, of the

Becerra Group, regarding obtaining copies of all files and documentation in the

FILED IN MY OFFICEDISTRICT COURT CLERK

10/4/2017 2:23:33 PMJames A. Noel

Gena Lopez

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possession of Mr. Becerra or his company concerning the operations and finances

of DSLM and/or any clients of DSLM. Mr. Becerra has committed to providing

all such records to the Receiver in a timely manner.

2. Contacts with Trust Beneficiaries/Concerned Individuals/Representatives:

The Receiver, as well as staff members of the FID, continue to be in

contact with trust beneficiaries (or their guardians, conservators and legal counsel,

as appropriate) regarding the ongoing examination of the accounts and finances of

DSLM and all progress made towards rebuilding accurate account statements for

each of the DSLM client accounts.

3. Funds:

The Receiver and the FID staff continue to process requests for

disbursements from client trust accounts and make such distributions of funds as

are permissible under the terms of the relevant trust documents for all client

accounts in which there are funds remaining. A limited number of client

accounts are receiving income from sources such as annuities and for those

accounts, the Receiver and FID staff are processing such requests for distributions

of funds as may be covered by the incoming funds to those accounts or available

from known brokerage accounts. Obviously the Receiver cannot approve

disbursement of funds from client accounts where no trust funds remain and

cannot approve disbursements of funds from client accounts where the dollar

amount of the request(s) exceed the balance of the account.

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A. The Receiver has gained operational and legal control over all

bank accounts under the name of DSLM that are held at New Mexico Bank and

Trust (the primary banking institution utilized by DSLM for operational

accounts).

B. The Receiver is engaged in ongoing contact with the Charles

Schwab investment company and the Vanguard investment company where a

number of individual trust investment accounts are located. The Receiver has

made efforts to insure that no other party may have access to these accounts

pending the accounts being put fully under the control of the Receiver.

C. Staff from the FID continue their efforts to complete an initial

organization of the voluminous paper records of DSLM that are now in the

possession of the Receiver/FID.

The FID’s staff working on this project continue to focus on producing

verifiable accountings for each individual trust account that can be provided to the

individual trust beneficiaries and/or conservatorship clients, which detail the

current balances in their respective accounts and the amount of total loss

individually suffered. The Receiver and FID staff also continue their efforts to

make certain any incoming funds to the accounts of DSLM are properly tracked



5. Summary:

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The Receiver continues to be of the opinion that DSLM, as a business

providing trustee and conservator services, cannot be rehabilitated and that

liquidation of the company is the only appropriate course forward at this time.

The Receiver will continue to work with the legal counsel, guardians, and courts

of proper jurisdiction to have new conservators appointed for all clients of DSLM

for whom DSLM has been appointed conservator. The Receiver will also

continue efforts to move all trusts currently under the trusteeship of DSLM over

to new and proper trustees for those trusts. Finding new, competent, and

appropriate trustees to take over the trust accounts at DSLM has proven to be

challenging due to the very low balances left in the great majority of the trust

accounts and the wording of many of the individual trust documents that limit

successor trustees to corporations providing trustee services. The Receiver is

continuing his efforts to identify and reclaim all funds unlawfully taken from the

company and/or clients of the company and to return those funds to their rightful

owners.


submitted by:

_________________________

Kevin A. Graham






P.O. Box 25101


(505) 476-4971

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following:



and

[email protected]

and

[email protected]

2. A. Blair Dunn

WARBA, LLP

400 Gold Ave SW, Suite 1000


[email protected]

Counsel for Helen Bennet

3. Paul Kennedy


201 12th Street NW


[email protected]




and

[email protected]

5. Corazon Cattle


and

[email protected]


[email protected]

Scott Fuqua


P.O. Box 32015

Santa Fe, NM 87594

[email protected]


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and

[email protected]

and

[email protected]

8. Judith D. Mahar

1398 Wilkes Way SE

Rio Rancho, NM 87124

9. Bryan Biedscheid

Sawtell, Wirth & Biedscheid, P.C.

708 Paseo de Peralta

Santa Fe, NM 87501

[email protected]

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Kevin A. Graham

STATE OF NEW MEXICO COUNTY OF BERNALILLO SECOND … DSLM 2017 Receiver Reports.pdfKevin A. Graham,...

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Transcript of STATE OF NEW MEXICO COUNTY OF BERNALILLO SECOND … DSLM 2017 Receiver Reports.pdfKevin A. Graham,...