Recently in Misappropriation Category

An Orange County Divorce Lawyer's Perspective: John Edwards Indicted

June 15, 2011, by Winiviere G. Sy

No, John Edwards, the people here in Orange County, California have not forgotten about you. All the drama surrounding Representative Weiner is not going to cloud your recent indictment on charges that you failed to report nearly $1 million allegedly spent to keep your mistress out of the public eye as you pursued the presidency.

In all seriousness, it now seems like the John Edwards story is getting juicier. Now, reports are surfacing that prosecutors have now obtained emails between John Edwards and a former aide to use as evidence at trial proving that Edwards knew about the payments to his pregnant mistress, even while he was publicly denying it, people familiar with the case told The Associated Press on Monday, June 6.

Apparently, there were dozens of emails that were exchanged between Edwards and his former speechwriter, Wendy Button, as they worked on a never-released draft statement to acknowledge paternity of his out-of-wedlock child, according to people who have seen the messages and requested anonymity because they have not been made public yet.

Prosecutors must prove that Edwards had knowledge of the payments in order to convict him in the case. Edwards proclaimed his innocence of any crime after being indicted last Friday.

The six felony charges came after intense negotiations in which prosecutors first insisted Edwards plead to a felony, but they ultimately offered him the chance to plead guilty to misdemeanor charges and serve a jail sentence, according to people with knowledge of the talks who requested anonymity to discuss the private discussions.

Edwards, a single father since his estranged wife's death in December, was interested in reaching a deal but refused to accept anything that would take him away from his children, according to a person close to the talks.

Hypothetically from an Orange County divorce lawyer's perspective and in the event Elizabeth Edwards was still alive and if she and John Edwards were both going through an Orange County, California divorce, this indictment could also have a significant effect on their divorce. Elizabeth could allege misappropriation of community property funds and breach of fiduciary duty. But that is neither here nor there since the scenario is moot given Elizabeth Edwards' death this past December 2010.

If you have any divorce related issues in Los Angeles County or Orange County, contact a reputable Orange County divorce attorney for more information.

Source: AP Sources: Edwards e-mails acknowledge payments

California Divorce: Schwarzenneger's use of tax payer monies to cover up affair(s)

June 1, 2011, by Winiviere G. Sy

Given all the recent media attention surrounding the recent Schwarzenneger/Shriver split, another wrench has been thrown into the mix. Did Arnold Schwarzenneger use tax payers' money to cover up his many affairs?

According to this article, a criminal investigation has been initiated to determine the validity of the claims. A veteren law enforcement officer, William Taylor, allegedly made said claims to the National Enquirer. Taylor states that Schwarzenneger "...used California Highway Patrol officers and vehicles to drive young, scantily-clad women to the Hyatt Regency Hotel in Sacramento on a regular basis."

He also claims that "...much of the hotel and the governor's staff knew what was going on but that they were all too scared to speak out or do anything about it as Schwarzenegger had intimidated staff so much that they weren't even allowed to make eye contact with him."

What is also interesting is that Schwarzenneger gave Mildred Baena, the housekeeper who worked for the family and eventually had a "love child" with Arnold a $65,000 down payment on Baena's family home in Bakersfield, California, to secure a roof over his son's head. From an Orange County divorce lawyer's perspective, the question raises concerns as to if said $65,000 was a misappropriation of community property funds. Maria Shriver likely did not know about this contribution. We can only speculate.

At any rate, I'm sure more dirty laundry and drama will be revealed from this high profile split. It's only a matter of time. This is why hiring an Orange County divorce lawyer is important as you want to ensure that your legal rights are protected.

Contact an Orange County divorce lawyer for more information.

Source: California AG 'launches criminal investigation into claims Schwarzenegger used tax payers' money to cover up affair'

The Effect of Lottery Winnings in a California Divorce

March 24, 2010, by Winiviere G. Sy

Today, I read a report concerning two elderly Connecticut sisters squabbling over lottery winnings won by one of the sisters, Rose Bakaysa, and another brother. Turns out that Bakaysa and her brother won a $500,000 lottery jackpot back in 2005. Younger sister, Theresa Sokaitis, claims that Bakaysa violated a notarized contract they signed almost a decade earlier to split all future winnings. However, Bakaysa claims the two broke off the deal during a 2004 fight over a few hundred dollars. Sokaitis acknowledged the rift but believed that contract was still in place. You can read more about the story here. A New Britain Superior Court Judge is expected to issue her ruling in the next few months.

From an Orange County divorce attorney perspective, this report got me thinking about the effect of one spouse concealing lottery winnings from the other spouse during a divorce proceeding. Back in 2001, a Los Angeles County trial court ruled in a dissolution proceeding that lottery winnings concealed by wife during the proceedings to her ex-husband, constituted fraud. Marriage of Rossi, 90 Cal.App. 4th (2001).

The Court of Appeal affirmed said ruling. The court found that the funds used to purchase the lotto ticket were from a community property source and that wife's claim that same was a gift was not credible. The trial court found that wife intentionally failed to disclose her lottery winnings in the marital settlement agreement, the judgement and in her declaration of disclosure. She also intentionally consulted with a lottery commission as to how she could deprive her hsuband of a share of the prize, used her mother's address for all communications with the lottery officials and did not disclose samd throughout the divorce.

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John Edwards' Use of Campaign Funds to Support his Mistress: A Claim for Misappropriation?

January 27, 2010, by Winiviere G. Sy

It has come to no surprise to learn that former Democratic presidential candidate, John Edwards, and his wife, Elizabeth Edwards, have legally separated. While reports do not state when the couple separated, sources claim the couple separated a while ago. Should these two proceed to dissolving their marriage, one issue to be discussed most certainly will be the campaign funds John Edwards used on his mistress, Rielle Hunter.

A federal probe has been launched to look into how John Edwards spent his campaign funds on his alleged "employee", Rielle Hunter. Hunter, the admitted mistress of John Edwards, was paid more than $100,000 by Edwards' public action committee for video filmed during the months leading up to his 2008 presidential campaign. Hunter's firm was also paid an additional $14,086.50 on April 1, 2007 for "furniture" when the PAC only had $7,932.95 in cash on hand. Another suspicious act was from Edwards' late national finance chairman, Fred Baron, who reportedly paid Hunter to resettle in California. The investigation will make sure Edwards' campaign funds were not given to the mistress as hush money.

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