| Duban Sattler |
| Duban Sattler cpa accountants dennis duban troy sattler DENNIS DUBAN CHARGED WITH CONSPIRACY AND TAX FRAUD BY U.S.GOVT IN PFLUEGER CASE HAWAII los ang |
| 13th of Apr, 2011 by User251770 |
also its important to read the many articles concerning dennis duban , duban sattler accounting where Mr.Dennis Duban is charged with Tax Fraud and Conspiracy by the U.S. govt Sep 15, 2010 ... The grand jury also indicted James
Pflueger and Duban in separate conspiracy to defraud the U.S. for the
purpose of obstructing the IRS tax ... enough said, good thing you got away from this accountant, get far far away from him. sounds like a real crook |
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Dennis Duban and his partner Troy Sattler are the biggest small-time crooks in the accounting profession. They have engaged in criminal and fraudulent acts and all of their clients are suing them. Here's a portion of a plaintiff lawsuit that was recently filed in LA County Superior Court. It makes your stomach turn:
Kapiolani K. Marignoli and Ted
Rachlin, as Trustee for Kapiolani K.
Marignoli 2006 and 2007 Irrevocable
Insurance Trusts,
Plaintiffs,
v.
Dennis L. Duban, Troy J_.. Sattler,
Sattler Duban Capital Management,
LLC, Duban Sattler & Associates, ~
LLP, Scott M. Sakata, S. Sakata &
Associates, and Does 1-50,
Defendants.
Case No. BC425122
BYF
COMPLAINT FOR:
1. BREACH OF FIDUCIARY DUTY;
2. MISREPRESENTATION
(OMISSION);
3. MISREPRESENTATION;
4. PROFESSIONAL NEGLIGENCE
(ACCOUNTANT);
5. PROFESSIONAL NEGLIGENCE
(FINANCIAL ADVISOR);
6. PROFESSIONAL NEGLIGENCE
(INSURANCE
PROFESSIONAL);
7. BREACH OF CONTRACT;
8. INTERFERENCE
CONTRACT
9. CONVERSION;
10. UNFAIR BUSINESS
JURY TRIAL DEMANDED
COMPLAINT
1 INTRODUCTION
2 1. In this case the defendants, who are accountants, insurance professionals,
3 and fiduciaries, conspired to induce a 79-year-old lady to borrow money and encumber
4 all of her assets in order to purchase more than $100 million in expensive and
5 unnecessary life insurance. Pursuant to their undisclosed scheme, the defendants then
6 secretly split millions of dollars in commissions from the purchase of these policies
7 among themselves. Plaintiff, Kapiolani K. Marignoli, and the Kapiolani K. Marignoli
8 2006 and 2007 Irrevocable Insurance Trusts are the victims of the defendants' conduct.
In approximately 2001-02, Duban became Mrs. Marignoli's
accountant. He and other estate planning experts recommended that Mrs. Marignoli
use life insurance as a source of cash to pay any federal or state estate taxes on her
shares in James Campbell Company. To avoid paying federal or state estate taxes
on the life insurance proceeds, Duban and others recommended that Mrs. Marignoli
purchase life insurance policies through an irrevocable life insurance trust.
Consequently, Mrs. Marignoli purchased a $17 million preferred risk policy from
John Hancock Life Insurance Company through an irrevocable life insurance trust.
19. As the termination of the Estate of James Campbell got closer, Duban
and others recommended that Mrs. Marignoli sell the John Hancock policy and
purchase over $100 million in life insurance from other companies. To persuade
Mrs. Marignoli to do so, Duban told her that if it turned out that she had purchased
too much life insurance, she could sell any excess life insurance to a third party for
a profit. Following Duban's advice, Mrs. Marignoli sold the John Hancock policy
and Mrs. Marignoli settled the Marignoli Trusts to purchase the new life insurance
policies that Duban and others recommended.
20. When the Estate ended in 2007, the Estate transformed into the James
• •
company. When Mrs. Marignoli received her interest in James Campbell Company
LLC (called "shares") she was 79-years old. Today, the James Campbell Company
has annual revenue in excess of$100 million and assets, chiefly real estate in a
number of different states and the District of Columbia.
21. Duban served as the trustee for the Marignoli Trusts from the date they
were created until February 3, 2009. Under the terms of the trusts and a trustee
compensation agreement, Duban agreed to be paid for his services based solely on a
reasonable hourly fee.
22. While Duban was the trustee, the Marignoli Trusts purchased 18
separate life insurance policies from 17 different companies. In all or almost all
cases, Sakata was identified as the only insurance agent for each policy. The
defendants knew that Mrs. Marignoli did not have the cash to pay the premiums for
all of the new insurance that the Marignoli Trusts were acquiring and would have to
borrow money to do so. As a result, Sakata arranged for Mrs. Marignoli to borrow
money from A.I. Credit to pay the premiums on the new insurance. A.I. Credit
required Mrs. Marignoli to provide collateral to secure its premium financing.
23. On information and belief, plaintiffs allege that Sakata and/or Sakata
& Associates received a commission for each of the 18 life insurance policies he
sold to the Marignoli Trusts. On information and belief, defendants received
approximately $6, 000, 000 in commissions.
24. On information and belief, plaintiffs allege that Sakata and/or Sakata
& Associates arranged for payment of some or all of those commissions to other
defendants, including Sattler. On information and belief, plaintiffs allege that
Sattler became a licensed insurance agent or broker in Hawai'i solely for the
purpose of obtaining a portion these commissions.
25. On .information and belief, plaintiffs allege that Sattler, Sattler Capital,
and/or Duban Accounting gave some or all ofthe commission money from Sakata
to Duban or that Duban benefited from that money as a principal in Sattler Capital
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SM~l'lAN(:tSC:CI
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Duban Accounting, or otherwise.
26. On information and belief, plaintiffs allege that Duban caused the
Marignoli Trusts to purchase life insurance that minimized the cash value in the
policies and paid larger commissions to Sakata instead of comparable insurance
with higher cash values that paid lower commissions. On information and belief,
plaintiffs allege that Duban did so to maximize the commission money that he
and/or Sattler would receive from Sakata. The low cash value of the policies
required Mrs. Marignoli to provide more collateral for premium financing than she
would have to provide for policies with higher cash values.
27. After he became Mrs. Marignoli's accountant and advisor, Duban
developed a confidential relationship with Mrs. Marignoli. Mrs. Marignoli
entrusted Mr. Duban with her most sensitive, personal, confidential financial
information, and relied heavily upon Duban and his integrity and fidelity, to act in
the utmost good faith with respect to her financial affairs, financial planning, and
the protection of her personal wealth. Because of this trust and confidence reposed
in him, Duban had significant control and influence over how millions of dollars of
Mrs. Marignoli's wealth would be used, disposed or invested. Duban induced
Mrs. Marignoli to place her trust and confidence in him with regard to her financial
affairs, and he voluntarily assumed and accepted her confidence and trust, precisely
to enable him to obtain control over her affairs. Duban later took advantage of the
trust and confidence Mrs. Marignoli reposed in him and of the knowledge he
obtained from his confidential relationship with her.
28. Defendants never disclosed to Mrs. Marignoli or any beneficiary of the
Marignoli Trusts that commissions paid to Sakata in connection with the Marignoli
Trusts' purchase oflife insurance would be paid, split, shared, or kicked back,
directly or indirectly to Duban, Duban Accounting, Sattler, or Sattler Capital.
Defendants never disclosed to Mrs. Marignoli or any beneficiary of the
Marignoli Trusts that Duban would receive any benefit from a third party for the
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• •
1 Marignoli Trusts' purchase oflife insurance.
2 30. Defendants never disclosed to Mrs. Marignoli or any beneficiary of the
3 Marignoli Trusts that Duban, as trustee, was causing the Marignoli Trusts to
4 purchase life insurance that minimized the cash value in the policies and paid larger
5 commissions to Sakata instead of comparable insurance with higher cash values
6 that paid lower commissions.
7 31. Defendants never disclosed to Mrs. Marignoli or any beneficiary of the
8 Marignoli Trusts that Duban purchased life insurance with higher premiums that
9 paid larger commissions to maximize the commission money that he and the other
I 0 defendants would ultimately receive.
II 32. Plaintiffs did not lmow or suspect that defendants had engaged in any
12 wrongdoing until January 2009 when Sakata contacted Mr. Rachlin and told him
13 that Duban and/or Sattler had received half of the insurance commissions paid in
14 connection with the Marignoli Trusts' purchases oflife insurance. When
15 Mr. Rachlin repeatedly requested (in April-June 2009) Duban, Sattler and Sakata to
16 provide full disclosure of all commissions paid to - or split by - each of them,
17 Duban admitted that Sattler split the commissions with Sakata. However, despite
18 repeated requests to defendants and their counsel, none of the defendants provided
19 any commission information at all.
20 33. Duban's malfeasance, as alleged in the foregoing Paragraphs 1-32, was
21 willful, grossly negligent and in bad faith.
As set fourth above, Duban breached his fiduciary duty by self-
11 dealing, failing to disclose his self-dealing, and causing the Marignoli Trusts to
12 purchase life insurance that minimized the cash value in the policies and paid larger
13 commissions instead of comparable insurance with higher cash values that paid
14 lower commissions. There may be other breaches that plaintiffs are not currently
15 aware of.
16 38. As a result ofDuban's breaches, the plaintiffs have been damaged in
17 an amount in excess of$10, 000, 000.
18 39. Plaintiffs allege, on information and belief, that defendants, and each
19 of them, knowing of the trusts described above, actively participated in Duban' s
20 breach( es) of his duties as a trustee - whether by inducing, aiding, or abetting
21 Duban's breach(es) or by receiving trust property- and did so for their own
22 financial advantage.
23 SECOND CAUSE OF ACTION
24 Misrepresentation by Omission
; h5 (Against Duban and all Defendants)
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; !26 40. Plaintiffs incorporate Paragraphs 1 through 33, as if set forth in full.
$1 127 41. As a fiduciary, Duban had a duty to disclose, among other things, any
28 conflict of interest, self-dealing, and! or any material benefit from a third party he
• •
received in connection with his actions as trustee.
42. Duban did not disclose (i) that he and/or Sattler received part of the
commissions paid for the Marignoli Trusts' purchase of life insurance; (ii) that he
caused the Marignoli Trusts to purchase life insurance with low cash value that paid
larger commissions instead of comparable insurance with high cash value that
would pay lower commissions; or (iii) that he received material benefits from third
parties in connection with his actions as trustee. There may be other culpable
omissions that plaintiffs are not currently aware of.
43. Duban did not disclose the foregoing facts and did so intending to
induce the plaintiffs to purchase insurance that paid larger commissions (in which
he would share) instead of comparable insurance with lower premiums that would
pay lower commissions.
44. Plaintiffs reasonably relied on Duban, who was their fiduciary, to
disclose all that he was obliged to and to otherwise faithfully perform his duties,
Had plaintiffs known the true facts they would not have retained Duban as an
accountant or trustee.
45. As a result ofDuban's breaches, the plaintiffs have been damaged in
an amount in excess of$10, 000, 000.
TlllRD CAUSE OF ACTION
Misrepresentation
(Against Duban and all Defendants)
46. Plaintiffs incorporate Paragraphs I through 33, as if set forth in full.
47. On August 28, 2007, Duban sent Mrs. Marignoli a letter stating that |
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| Wow, Dennis Duban and Troy Sattler (Duban Sattler & Associates) really give the profession a bad name. Their clients should know that whenever a CPA or accountant is under a criminal investigation, the IRS and state tax agencies aggressively examine and put their entire client base under the microscope as well. That means a ton of upcoming audits for their remaining clients who may not even be aware of what's going on! Those clients should run for the hills! |
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