by imallgrowedup 53 Replies latest watchtower scandals
Euph -
I didn't mean to imply that it's completely on the up-an-up, since as I said above, it still qualifies as compensation to a man who's officially supposed to be a volunteer.
I didn't take it that way!
Next question - their lawyers are supposed to be volunteers? They are not paid for their services? Please, do explain!!
growedup of the every day I learn something new class
New connection found!!
I can show that the new owners of the property, the Lehrer's, most likely knew the owners prior to the two-month ownership of the WTBTS. Could it be that the Lehrer's were the intended beneficiaries of the land in the first place, but for some reason, it had to go through the WT? If so, does anyone have any ideas on why?
Fictitious Business Name Filing
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Fictitious Business Name Filing
Company Name: | J & S PARTNERS |
Address: | 325 TOWNCENTRE TER A , CA 945132212 |
Phone: | |
Fax: | |
Owner's Name: | JEFF TAMAYO |
Address: | , |
Phone: | |
FIPS Code: | CA013 |
File Date: | 1999-04-01 |
Standard Industry Code: | 769999 = Repair Shops & Related Services NEC |
growedup
Howdy,
First, to anwer your questions, I don't think it is possible to obtain either the signed waiver or the side agreement--assuming that these exist in the first place, because MaCabe can always raise attorney-client privilege with respect to these documents. These documents wouldn't even be discoverable in a lawsuit against the parties.
One more note about the questionable ethics involved here that occurred to me last night that I failed to mention in my earlier post is that "on paper" McCabe is an owner of the property. Property that has a 270K mortgage by the WTBTS. Thus in reality this is a LOAN to the Lehrers and now MCCABE. It is extremely unusual (not to say usually unethical) to take a LOAN of money from your client. Nothing compromises your legal judgement faster than owing your client money!
Of course this appears to not be a usual situation. I think that reading between the lines here, we can all see that McCabe in reality isn't trying to benefit in some way or to really exercise some ownership over the property FOR HIMSELF. Thus the reality is that this whole transaction is probably not SELF-DEALING in the normal sense.
As I stated previously, what it appears is that McCabe was added to the ownership simultaneously with the Lehrers obtaining the property in order to insure that the WTBTS acting through McCabe will have some say about the property.
To reiterate normally the Lehrers would just be the owners and the Lender would hold the mortgage. Let's say they wanted to convert the orchard (vineyard) into a wheatfield or even just burn all the property and let it grow wild. They could do that as sole owners and the normal lender could care less so long as mortgage payments are made. But in setting up McCabe as a co-owner, he (acting for the WTBTS) has some say in what they do with the property and if there is either WASTE or AMELIORATIVE WASTE the Lehrers can be responsible to McCabe (WTBTS). That is one point.
But the larger point, I think has to do with potential profits. As I mentioned in my earlier post, in a normal situation should the purchaser later sell the property they've bought for a huge profit then of course all the Lender gets is their loan amount back from the deal. But in this situaton McCabe would also benefit from a later sale. Most likely, the arrangement he has with the Society is for him to turn around and make a DONATION to the Society of such profits. In this way the WTBTS doesn't pay any taxes on such profits like it would if it had remained an OWNER directly, AND on top of that McCabe would get to take the donation as a deduction on his own personal taxes for his trouble!
This is truly a brilliant business arrangement since on top of the above the Society is further protected in the event of default of the mortgage since the Lehrer's would have difficulty filing for bankruptcy and getting the property included since McCabe is an owner also!
Really the beauty of this deal is amazing!
With respect to why the Lehrers would go for this, most likely this was the only way they were going to get the property. Evidently they had 30 grand of their own and needed the rest of the purchase price in the form of a mortgage from a Lender. The Society is there with probably very favourable terms. I wonder what status the Lehrers hold there but I bet they are considered "rocks" of the congregation.
With respect to the Tamayos I think it is not a coincidence that they transferred the property to the SOCIETY only a few days before the end of the year (12/28/2000). This allowed them to take a huge tax deduction of the Fair Market Value of the property (probably the appraised value). OF course if the Tamayos had sold the property directly to the Lehrers (assuming the Lehrers could get financing) then the Tamayos would not be able to take the tax deduction.
All of the parties probably knew each other and worked the whole thing out, probably they contacted the Society and the Society brought in McCabe to handle the deal in their standard fashion. (It would not surprise me in the least if there were similar arrangements around the country and even the world.)
With regard to the Society's attorneys getting compensated. Naturally the attorneys at the headquarters and branch headquarters are likely not compensated and thus "volunteers" for their work they do for the Society, however, for these representatives in the different jurisdiction it is probable that a number of different arrangements are in place. This probably depends upon whether the Attorney in question has PARTNERS of the firm and whether these partners are JWs themselves or not. You see Partners and even associates get to share the profits of the firm, so unless the firm just considers such WTBTS work as part of its PRO BONO contribution to the world (that is a vague ethical obligation of all attorneys that has gotten a lot of push lately), I imagine that some compensation arrangement is in place. It may be at reduced fees or for all I know the Society might pay extremely well. I wouldn't know and doubt I ever will!
take care,
Eduardo
Oro-
You are right! From an objective perspective, this is actually pretty amazing. Someone has their thinking cap on.
I don't know if you are comfortable answering this or not publically or via pm, but may I ask what type of law you practice? If you don't want to say, I understand! :-)
By the way, since you are in LA, would you happen to know what the zoning code for LAM2 would be, and the Standard Use Code ILIG? No need to go to the hassle of looking it up, I can do that, just wondered if you knew off the top of your head. It relates to this whole story.
growedup
HOwdy,
don't know the zoning codes but I could find out for you if you can't find out.
Currently I work for the County regulating cable television franchises, its a government job boing but steady.
I hope to do a number of things including practice law on my own or with a partner in a few years. As for an area of practice I am not certain. My expertise I have gained in my current job is very specialized to telecommunications and municipal regulation. For many years since law school my personal interest has been in the new field of Cyberspace Law or law pertaining to Computer Mediated Communication.
But I am thinking that as a bread and butter area to practice immigration and possibly Estate and Elder law. Since the boomers are graying now that area of law is going to be HUGE for the next few decades.
but I try and stay sharp in other areas and have general knowledge of other areas.
Right now I am working on the content of my new website which I hope to debut next year (Jehovahs-Witnesses.net) and I will include a Legal section whereby I will discuss among other things the good things JWs have done in the legal area of civil rights, a review of legal cases involving JWs and a guide on challenging JWs in the legal arena. (I have a ton of work to do still!)
Anyway, hope that is useful.
-Eduardo
Eduardo -
I am impressed! You have set some great goals for yourself - especially in So Cal. The immigration law work alone could keep you busy forever! I am especially curious about the website you are putting up. It sounds as if it is going to be a "balanced" site with both the pros and cons of dubyadom?
Thanks for your offer on the codes! I can look them up - I am sure you have enough on your plate as it is!
If you get a moment, please check for a couple of pm's from me!
growedup
But the larger point, I think has to do with potential profits. As I mentioned in my earlier post, in a normal situation should the purchaser later sell the property they've bought for a huge profit then of course all the Lender gets is their loan amount back from the deal. But in this situaton McCabe would also benefit from a later sale. Most likely, the arrangement he has with the Society is for him to turn around and make a DONATION to the Society of such profits. In this way the WTBTS doesn't pay any taxes on such profits like it would if it had remained an OWNER directly, AND on top of that McCabe would get to take the donation as a deduction on his own personal taxes for his trouble!
Eduardo, this sounds like money laundering. Maybe the arrangement is for the Society to then keep a "fee" for its services and give the CASH back to McCabe. Then the Society benefits and McCabe gets tax-free money.
Even if it's all in the up and up it reminds me of what I used to tell my dub MIL when she did her taxes. I used to tell her to go to a "worldly" accountant who knows all of the loopholes because the JW lady she was going to would become extremely "consciencious" when it came to other people's money.
I told her, "Don't you think the Society uses the most business-savvy professionals out there? Then why shouldn't you?"
Blue -
You make a good point! With everything I find, I realize just how business-minded the WTBTS really is. My gut tells me there is way more to this story, that we've only scratched the surface, and that this is just once instance of what will be found.
Oroborus -
You mention that you will be posting information on your site in relation to some of the good things JW's have done for civil rights. I would be interested to hear what they are, and also, if any of them are related to their NGO status at the UN. I'm also curious if they have anything to do with the other NGO alliances that have recently been uncovered. If they are, what are your thoughts on those connections?
As always, Inquiring Minds Want to Know!
growedup
Growedup, if I may ask... do you do this sort of work for a living? You seem to be very good at it!
Next question - their lawyers are supposed to be volunteers? They are not paid for their services? Please, do explain!!
Well, I could be wrong. Normally, when a Witness does work for the Society, they're expected to do it for free (or at cost, if there are materials or other expenses involved). The most obvious example is all the volunteer construction workers; also, brothers who are accountants sometimes come to Bethel to do temp work, all on a volunteer basis. So do artists, film editors, etc. I believe that Jim McCabe actually served at Bethel for several years; the Society made an exception to their normal rules and allowed him to bring his family. (I could be mixing him up with someone else, but I'm pretty sure it was Jim McCabe.) But as Oroborus mentioned, the situation may be different depending on whether his partner is a Witness. So I could be wrong.
But even if McCabe was getting compensated, it would seem that the proper way to do so would be through legal fees paid outright, which would be taxable as income, and would probably have to be paid through his law firm, unless he had the consent of his partner to do independent work (am I correct, Oroborus?). So this sort of back-channel compensation (if that's what it is) would still seem to be rather shady.
Euph -
Thank you for the compliment! However, I must say, a person doing this can only be as good as the information that's available. Another major factor is knowing how things work in the borg, and since I was never a baptized witness, I could be staring at something huge right in the face and not know it. I've had a couple of people volunteer to help, so hopefully we'll all be able to sort this thing out. You may or may not realize it, but what may seem like small pieces of information you have posted on this thread have actually been quite helpful. It's all a big puzzle, and a matter of putting it all together where we can see the "picture"! *groan*!
Anyway, I hope you keep checking back and posting with your thoughts and insight! It will be interesting to see where this goes!
growedup
