Tuesday, July 30, 2013

Criminal probe requested in conservatorship case

Criminal probe requested in conservatorship case

Lawyer paid himself $370,000

 
John E. Clemmons
Citing “incomplete accountings and other misrepresentations,” a court-appointed conservator is recommending that the district attorney general and the TBI open criminal investigations into a Nashville attorney’s handling of a conservatorship.
In a 26-page report filed Thursday in Davidson County Probate Court, Paul Gontarek found that attorney John E. Clemmons paid himself over $370,000 while acting as the conservator of Nannie P. Malone. Court records show that most of those payments were made without court approval.
Malone passed away last year at the age of 81, but her family has filed a civil suit against Clemmons, who is facing criminal charges in a separate case in Rutherford County.
Gontarek was named to replace Clemmons in the Malone case on April 10 after the Tennessee Supreme Court suspended Clemmon’s license to practice law. Probate Judge David “Randy” Kennedy also named Gontarek to take over three other of Clemmons’ cases.
Gontarek said that his review of the four cases showed Clemmons routinely submitted accounting reports that omitted the payments he made to himself. He said some of those reports were “totally fraudulent.”
Clemmons’ lawyer, Paul Housch, said his client planned to make full restitution in all the cases and that the referral for a criminal investigation was “only appropriate. There is no excuse for his actions.”
Asked if there was any explanation for Clemmons’ actions, Housch said, “All I can say is he is a very sick man.”
Housch said he did not know the total amount Clemmons owes. But a Tennessean review of the four cases show the total amount of payments not submitted properly for approval of the court is in excess of $1 million.
Susan Niland, spokeswoman for District Attoney General Torry Johnson said Gontarek’s report had just arrived.
“We’ve been anticipating it and now we’ll get under way,” she said, adding that the investigation could be expanded based on Gontarek’s findings in the other cases.
In the Rutherford County case, Clemmons has been charged with theft of more than $60,000 from a retired teacher under his conservatorship.
The revelations of Clemmons actions come in the wake of a series of reports in the Tennessean on apparent abuses in conservatorships. The stories prompted a new statute governing conservatorships which went into effect July 1.
In his report, Gontarek noted that the court had approved payments totaling only $64,822.54.
“The successor conservator believes that these fees should be put aside and charged back against Mr. Clemmons as a result of his actions in this matter,” Gontarek wrote , adding that “Mr. Clemmons does not deserve any fee for services in this matter given his actions.”
Gontarek stated in his report that he was in discussions with the insurance company that issued a bond for Clemmons in the Malone case and that he had prepared a civil suit to be filed against Clemmons if negotiatons did not produce “proper restitution.” The bond, court records show, was for $300,000.
Court records show Clemmons has been hit with several contempt citations for failing to file complete accounting reports in his cases.
Gontarek said his review of another Clemmons case showed that most of the money Clemmons was supposed to deposit in a trust account for the ward’s child “kept getting put in his bank account.”
He said he has interviewed the victims of Clemmons action and “they’re very frustrated. We’re trying to put the pieces back together.”
Walter F. Roche Jr can be reached at 615-259-8086 or wroche@tennessean.com

No comments:

Post a Comment

Thank you for commenting.
Your comment will be held for approval by the blog owner.