ÿWPCÏŒ 9=NšiÔkðœ*à±}µ=>ï쬠Û`\¿ßkëœ[Û¯cL«Øþ3Å­Ä4iùD[îïÓaVXrÆâ\é×ú[3­s&,솕øzg$ƒ! idQÓƒ20t§;rŽm¨2¹f¹~©‚'šŠûRÌrî wc˜ËUC@þZ)‡ÀíɶÀ'Ý+ª0î*eHÖ±dãÿ\a°tùÔ!GÓÎVíµå “˜d6^.y5Ò»ÒtÞžU*ÜU[£n"Â/&wñ&h(Fo-;µ.'ð0d2ô{3§o8n9É„:¨M?õAbC 0ãC 0ÅýC 0¿ÂD 0¹E 0³:F 0­íF 0§šG 0¡AH 0ÅâH 0ѧI 0³xJ 0­+K 0§ØK 0¡L 0› M 0•»M 0PN 0ÂÝN 0ΟO 0°mP 0ªQ 0¤ÇQ 0žkR 0˜ S 0’¡S 0Š3T 0²½T 0¾oU 0¾-V 0>ëV 0ø)W 0â!X 0âY 0âåY 0âÇZ 0$ë©[ 0º”\N] 0Òl_ B>` 0ü[` 0¤Wa D5ûa D-0b 0K]b 0‚¨b AS*dÆ}d 0¤Ce 0Dçe A«+f D/Öf 0Îg 06Óg 0 h 0:i 0^Ki 0<©i 1eåiGJjò‘kkƒm 1uîo 72cp 0N•p'ãp& r+0sü[tÉWuË wëxäïz*Ó{÷ý|\ô};PJ‹€ÉÕƒ^ ž„wª„4®„„Ñ„ mÓ„#Éê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ê„ꄳ‡»(@øÐ Z‹6Times New Roman Regular(`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular(#Ã$òòÚ  Ú0Ú  Úóó*+ ÿÿ(_26Ô2ÔÔ3  Ôà..à(]]ÿÿ&H6Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ‡ÔÔ‡ôôôÔó óÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt,ÿÿ*CITEòòóó4ÿÿ2Emphasisòòóó6ÿÿ4HyperlinkóóòòÔ ÿ ÔóóÔ  ÔLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5<ÿÿ:FollowedHypeóóòòÔ €€ ÔóóÔ  Ô4goÿÿ2Keyboardò òÔ‡ôôôÔÔK‡<þ6X9`(‹Courier NewKÔÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔó ó<Ûïÿÿ:z©Bottom of Ó7€(€X7ÓÓ  ÓÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÔ‡ÔÔ?‡%ä2¼A`‹Arial?ÔÓ  ÓÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔÓ7€Z(€X7ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó&ÿÿ  d d)1dxd<Ûïÿÿ:z©Top of ForÓ7€b(€X7ÓÓ  ÓÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÔ‡ÔÔ?‡%ä2¼A`‹Arial?ÔÓ  ÓÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔÓ7€Z(€X7ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó<þ6X9`(‹Courier Newô\  `‹&Times New Roman%ä2¼A`‹Arial KÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú7Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Blue€testified€that€Duncan,€Emmitt€Ford€(Fordððs€brother),€Ford,€and€he€were€present€at€the€meeting.€€However,Ð ° Ðneither€Blue€nor€Duncan€could€recall€the€exact€number€that€was€present. Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú8Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€There€is€some€dispute€in€the€record€as€to€the€exact€amounts€deposited€into€the€CPLA€account€during€thisÐ ° Ðperiod€of€time.€€Stateððs€Exhibit€30B,€which€is€the€Stateððs€IRS€Tape€Report€for€CPLA,€shows€slightly€different€amountsÐ qÁ Ðthan€Stateððs€Exhibit€30A,€which€is€a€running€list€of€deposits€to€the€account.€€We€rely€on€Stateððs€Exhibit€30A€for€theÐ 2‚ Ðcalculations€in€this€opinion.€€In€1994,€the€deposits€totaled€$174,175.39.€€In€1995,€the€deposits€totaled€$637,999.63.€€InÐ óC Ð1996,€$1,807,699.90.€And€from€January€1,€1997€until€June€13,€1997,€deposits€totaled€$547,794.06. ™Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú9Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€There€is€some€dispute€in€the€record€as€to€exactly€how€much€money€was€drawn€from€the€CPLA€account€onÐ ° Ðchecks€made€to€cash€and€how€much€was€drawn€from€the€account€on€checks€made€to€Ford€personally.€€From€our€reviewÐ qÁ Ðof€Stateððs€Exhibit€13€and€Exhibit€33,€we€calculate€13€checks€to€cash€in€1994,€totaling€$46,121.40,€26€checks€to€cash€inÐ 2‚ Ð1995,€totaling€$95,929.20,€13€checks€to€cash€in€1996,€totaling€$73,543.28,€and€12€checks€to€cash€in€1997,€totalingÐ óC Ð$84,750. Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú11Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Again€we€rely€on€Stateððs€Exhibit€30A€for€this€calculation.€€According€to€that€Exhibit,€in€1997€deposits€to€theÐ ° Ðaccount€totaled€$937,461.36.€€Deposits€for€1998€totaled€$1,887,023.80.€€Deposits€for€1999€totaled€$1,868,411.40,€and,Ð qÁ Ðthrough€August€of€2000,€deposits€totaled€$933,486.60.€€Exhibit€30A€indicates€that€in€September€2000€anotherÐ 2‚ Ð$115,029.40€was€paid€from€the€State€to€CPLA;€however,€the€Exhibit€does€not€indicate€the€account€into€which€theseÐ óC Ðpayments€were€made.€€Also,€Exhibit€30A€shows€deposits€totaling€$42,478.90€made€to€account€number€100248064,€fromÐ ´ ÐAugust€16,€2000€through€October€15,€1000.€€Although€there€are€no€bank€documents€concerning€the€set€up€or€style€of€thisÐ uÅ Ðaccount,€records€from€the€State€indicate€the€account€was€held€in€CPLAððs€named€under€EIN€number€62„1558762.€€ ¸Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú12Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€We€rely€upon€the€ð ðGold€Docsðð€for€this€calculation. mÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú13Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Exhibit€30A€indicates€that€an€additional€$617,557.50€was€paid€from€the€State€to€CPLA€from€August€16,€2001Ð ° Ðuntil€January€15,€2002;€however,€the€Exhibit€does€not€indicate€the€account€into€which€these€payments€were€made. ýÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú14Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Although€the€record€of€deposits€from€the€State€ends€at€August€15,€2002,€there€is€nothing€to€indicate€thatÐ ° Ðpayments€from€the€State€have€ceased€to€date.€€After€Fordððs€death,€an€account€was€opened€in€the€name€of€ð ðChildrenððsÐ qÁ ÐPalace€Learning€Academy,€LLCðð€at€MemphisFirst€Community€Bank€in€Memphis,€TN.€€This€account€(#15004187)€wasÐ 2‚ Ðset€up€in€response€to€the€probate€courtððs€entry€of€its€ð ðOrder€Authorizing€Continuation€of€Business,ðð€which€will€beÐ óC Ðdiscussed€òòinfraóó.€€The€balance€of€the€$10,843,808.68€that€has€not€been€discussed€òòsupraóó€was€deposited€into€accountÐ ´ Ð15004187€from€January€16,€2001€through€August€15,€2002.€€Records€from€the€State€indicate€that€an€ð ðAuthorizationÐ uÅ ÐAgreement€for€Automatic€Deposits€(ACH€Credits)ðð€for€the€State€of€Tennessee€was€filed€to€authorize€ACH€deposits€toÐ 6 † Ðthis€account.€€A€State€email€sent€from€Margaret€Waynick€to€Brenda€Brooks€indicates€that€the€request€cannot€beÐ ÷ G Ðcompleted€since€the€EIN€number€does€not€match€CPLAððs.€€ <Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú15Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€A€lease€was€originally€discussed€because,€according€to€Sneed,€ð ðthey€[the€two€women]€represented€to€[himÐ ° Ðthat]€they€did€not€have€capital€to€purchase€the€property.ðð 1Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú16Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€Shelby€County€Assessorððs€2001€Appraisal€of€the€EP€Property€was€$406,200.00.€€A€separate€appraisalÐ ° Ðby€William€T.€Chandler€of€Chandler€and€Chandler€Real€Estate€(conducted€pursuant€to€the€request€of€the€Co„ExecutricesÐ qÁ Ðunder€the€auspices€of€the€trial€courtððs€Order€Authorizing€the€Continuation€of€Business,€òòsee€infraóó)€shows€the€EP€PropertyÐ 2‚ Ðvalue€as€$275,000.00. Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú17Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€Shelby€County€Assessorððs€2001€appraisal€of€this€property€was€$657,400.00.€€The€Chandler€appraisalÐ ° Ðof€this€property€is€$325,000.00. ZÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú18Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€CPLA€check€#1828€dated€July€3,€1996€in€the€amount€of€$25,308.00€and€CPLA€check€#€1833€dated€July€23,Ð ° Ð1996€in€the€amount€of€$25,000.00.€€Both€checks€are€drawn€on€the€CPLAððs€Tri„State€Bank€account. êÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú19Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Check€#1845€dated€August€9,€1996€in€the€amount€of€$25,000,€check€#1915€dated€October€15,€1996€in€theÐ ° Ðamount€of€$10,000,€check€#1938€dated€November€1,€1996€in€the€amount€of€$10,000,€check€#1946€dated€November€15,Ð qÁ Ð1996€in€the€amount€of€$5,000,€check€#1965€dated€October€5,€1996€in€the€amount€of€$10,000,€check€#1953€datedÐ 2‚ ÐDecember€31,€1996€in€the€amount€of€$10,000,€check€#1978€dated€January€21,€1997€in€the€amount€of€$400,€check€#1992Ð óC Ðdated€January€16,€1997€in€the€amount€of€$3,200,€check€#2001€dated€January€23,€1997€in€the€amount€of€$400,€checkÐ ´ Ð#2008€dated€January€29,€1997€in€the€amount€of€$10,000,€check€#2010€dated€January€29,€1997€in€the€amount€of€$600,Ð uÅ Ðcheck€#2021€dated€February€14,€1997€in€the€amount€of€$5,000,€check€#2047€dated€February€21,€1997€in€the€amount€ofÐ 6 † Ð$10,000,€check€#2078€dated€March€21,€1997€in€the€amount€of€$5,000,€and€check€#2086€dated€March€28,€1997€in€theÐ ÷ G Ðamount€of€$5,000.€€All€of€these€checks€were€drawn€on€CPLAððs€Tri„State€Bank€account. Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€ò òòòSee€ó óinfra€óónote€14. dÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€A.C.€Hooper€provided€the€court€with€a€ð ðChoice€of€Entity€Report,ðð€which€was€filed€on€April€22,€2002.€€ThisÐ ° Ðreport€outlines€the€various€options€for€choice€of€business€entity,€and€the€pros€and€cons€of€each. ¿Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€€On€December€19,€2000,€the€Secretary€of€State€received€Articles€of€Organization€(Limited€Liability€Company)Ð ° Ðfor€ð ðChildrenððs€Learning€Palace,€LLCðð€for€the€daycare€located€at€the€EP€Property.€€On€April€30,€2002,€an€ð ðArticles€ofÐ qÁ ÐAmendment€to€the€Limited€Liability€Companyðð€was€filed€with€the€Secretary,€which€changed€the€name€of€this€LLC€fromÐ 2‚ Ðð ðChildrenððs€Learning€Palace,€LLCðð€to€ð ðChildrenððs€Palace€Learning€Academy€#1,€LLC.ðð€€On€April€30,€2002,€an€ArticlesÐ óC Ðof€Organization€Limited€Liability€Company€was€received€by€the€Secretary€for€ð ðChildrenððs€Palace€learning€Academy€#2,Ð ´ ÐLLCðð€located€at€831€N.€Thomas€in€Memphis.€€Also€on€April€30,€2002,€the€Secretary€received€Articles€of€OrganizationÐ uÅ ÐLimited€Liability€Company€for€ð ðChildrenððs€palace€Learning€Academy€#3,€LLCðð€at€2451€Summer€Avenue€in€MemphisÐ 6 † Ðand€for€ð ðChildrenððs€Palace€Learning€Academy€#4,€LLCðð€located€at€657€Chelsea€Avenue€in€Memphis. žÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€A€third€Order€Authorizing€the€Continuation€of€Business€was€signed€by€the€court€on€June€4,€2002.€€This€OrderÐ ° Ðconfirms€the€March€19,€2002€and€April€29,€2002€Orders.€€On€June€17,€2002,€an€ð ðAmended€Order€AuthorizingÐ qÁ ÐContinuation€of€Businessðð€was€signed€by€the€court.€€This€Amended€Order€reset€the€hearing€to€September€10,€2002€andÐ 2‚ Ðauthorized€the€Co„Executrices€to€ð ðreimburse€A.C.€Hooper€for€his€out€of€pocket€expenses€to€date,€in€the€amount€ofÐ óC Ð$1,261.55.ðð Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€record€indicates€that€Fordððs€personal€amended€tax€returns€for€the€years€1994€through€1996€list€businessÐ ° Ðlosses€for€CPLA.€- ù-*G+G ÿÿ(_25Ó ¨ý ÓÓ ° ÓÓ/%` ` ¸ hÀpÈ xÐ /ÓÔ2ÔÔ3  Ôà..àÓ/%` ` ¸ hÀpÈ xÐ /ÓÓ ¨ý ÓÓ ° Ó*8+8 ÿÿ(_24Ó  ÓÓ,"¸ ¸ hÀpÈ xÐ ,ÓÔ2ÔÔ3  Ôà..àÓ,"¸ ¸ hÀpÈ xÐ ,ÓÓ  Ó*5+5 ÿÿ(_23Ó ` ÓÓ) hÀpÈ xÐ )ÓÔ2ÔÔ3  Ôà..àÓ) hÀpÈ xÐ )ÓÓ ` Ó*2+2 ÿÿ(_22Ó ¸ ÓÓ&hhÀpÈ xÐ &ÓÔ2ÔÔ3  Ôà..àÓ&hhÀpÈ xÐ &ÓÓ ¸ Ó*/+/ ÿÿ(_21Ó  ÓÓ#ÀÀpÈ xÐ #ÓÔ2ÔÔ3  Ôà..àÓ#ÀÀpÈ xÐ #ÓÓ  Ó*,+, ÿÿ(_20Ó h ÓÓ pÈ xÐ ÓÔ2ÔÔ3  Ôà..àÓ pÈ xÐ ÓÓ h Ó*)+) ÿÿ(_19Ó À ÓÓppÈ xÐ ÓÔ2ÔÔ3  Ôà..àÓppÈ xÐ ÓÓ À Ó*&+& ÿÿ(_18Ó  ÓÓÈÈ xÐ ÓÔ2ÔÔ3  Ôà..àÓÈÈ xÐ ÓÓ  Ó*AA ÿÿ(_17Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÔ2ÔÔ3  Ô€Ó5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó*GG ÿÿ(_16Ó ¨ý ÓÓ ° ÓÓ/%` ` ¸ hÀpÈ xÐ /ÓÔ2ÔÔ3  Ô€Ó/%` ` ¸ hÀpÈ xÐ /ÓÓ ¨ý ÓÓ ° Ó*88 ÿÿ(_15Ó  ÓÓ,"¸ ¸ hÀpÈ xÐ ,ÓÔ2ÔÔ3  Ô€Ó,"¸ ¸ hÀpÈ xÐ ,ÓÓ  Ó*55 ÿÿ(_14Ó ` ÓÓ) hÀpÈ xÐ )ÓÔ2ÔÔ3  Ô€Ó) hÀpÈ xÐ )ÓÓ ` Ó*22 ÿÿ(_13Ó ¸ ÓÓ&hhÀpÈ xÐ &ÓÔ2ÔÔ3  Ô€Ó&hhÀpÈ xÐ &ÓÓ ¸ Ó*// ÿÿ(_12Ó  ÓÓ#ÀÀpÈ xÐ #ÓÔ2ÔÔ3  Ô€Ó#ÀÀpÈ xÐ #ÓÓ  Ó*,, ÿÿ(_11Ó h ÓÓ pÈ xÐ ÓÔ2ÔÔ3  Ô€Ó pÈ xÐ ÓÓ h Ó*)) ÿÿ(_10Ó À ÓÓppÈ xÐ ÓÔ2ÔÔ3  Ô€ÓppÈ xÐ ÓÓ À Ó(&& ÿÿ&_9Ó  ÓÓÈÈ xÐ ÓÔ2ÔÔ3  Ô€ÓÈÈ xÐ ÓÓ  Ó(AA ÿÿ&_8Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÔ2ÔÔ3  ÔÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó(GG ÿÿ&_7Ó ¨ý ÓÓ ° ÓÓ/%` ` ¸ hÀpÈ xÐ /ÓÔ2ÔÔ3  ÔÓ/%` ` ¸ hÀpÈ xÐ /ÓÓ ¨ý ÓÓ ° Ó(88 ÿÿ&_6Ó  ÓÓ,"¸ ¸ hÀpÈ xÐ ,ÓÔ2ÔÔ3  ÔÓ,"¸ ¸ hÀpÈ xÐ ,ÓÓ  Ó(55 ÿÿ&_5Ó ` ÓÓ) hÀpÈ xÐ )ÓÔ2ÔÔ3  ÔÓ) hÀpÈ xÐ )ÓÓ ` Ó(22 ÿÿ&_4Ó ¸ ÓÓ&hhÀpÈ xÐ &ÓÔ2ÔÔ3  ÔÓ&hhÀpÈ xÐ &ÓÓ ¸ Ó(// ÿÿ&_3Ó  ÓÓ#ÀÀpÈ xÐ #ÓÔ2ÔÔ3  ÔÓ#ÀÀpÈ xÐ #ÓÓ  Ó(,, ÿÿ&_2Ó h ÓÓ pÈ xÐ ÓÔ2ÔÔ3  ÔÓ pÈ xÐ ÓÓ h Ó()) ÿÿ&_1Ó À ÓÓppÈ xÐ ÓÔ2ÔÔ3  ÔÓppÈ xÐ ÓÓ À Ó&&& ÿÿ$_Ó  ÓÓÈÈ xÐ ÓÔ2ÔÔ3  ÔÓÈÈ xÐ ÓÓ  Ó0AAÿÿ.NormalÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó<AAÿÿ:Definition TÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó<AAÿÿ:Definition LÓ , ÓÓ5+Ü Ü` ¸ hÀpÈ xÐ 5ÓÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Ó8ÿÿ6Definitionòòóó(hhÿÿ&H1Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ  ÔÔ‡°°°ÔÔ‡ôôôÔó óÔ  ÔÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó(]]ÿÿ&H2Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ‡„„„ÔÔ‡ôôôÔó óÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó(]]ÿÿ&H3Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ‡¼¼¼ÔÔ‡ôôôÔó óÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó(]]ÿÿ&H4Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ‡XXXÔÔ‡ôôôÔó óÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó(]]ÿÿ&H5Ó  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Óò òÔ‡ôôôÔó óÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  ÓÔ‡ôôôÔ(|G2×^$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€Á¹»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôéDò»»Ô2DDÿÿ0AddressÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5ÓòòóóÓ5+° °` ¸ hÀpÈ xÐ 5ÓÓ  Ó Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú20Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€These€are€CPLA€check€#1119€dated€February€13,€1996€in€the€amount€of€$3,250€and€check€#1131€datedÐ ° ÐFebruary€13,€1996€in€the€amount€of€$3,250.€€We€cannot€read€the€full€name€of€the€payee€on€the€photocopy€submitted€intoÐ qÁ Ðevidence.€€The€portion€we€can€decipher€reads€ð ðMr.€Howard€S....ðð€€These€checks€are€drawn€on€CPLAððs€Tri„State€BankÐ 2‚ Ðaccount8MMÿÿ6BlockquoteÓ , ÓÓ , ÓÓ5+Ü Ü` ¸ hÀpÈ xÐ 5ÓÓ  ÓÓ  ÓÓ5+° °` ¸ hÀpÈ xÐ 5Ó d,dlÿÿ*CODEÔ‡ôôôÔÔK‡<þ6X9`(‹Courier NewKÔÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔ(|3w!$££Ý ƒ£ª!ÝÑ€.ÑÑ8€Á¹»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó<Ÿ§ÿÿ:PreformattedÓ  ÓÓ/%° °Ïî ,KkŠ©È %#/ÓÔ‡ôôôÔÔK‡<þ6X9`(‹Courier NewKÔÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔÓ/%° °Ïî ,KkŠ©È %#/ÓÓ  Ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3w!$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€Á¹»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKK)2dxd0KSÿÿ.SampleÔK‡<þ6X9`(‹Courier NewKÔÔS‡ô\  `‹&Times New RomanSÔ0ÿÿ.Strongò òó ó8dlÿÿ6TypewriterÔ‡ôôôÔÔK‡<þ6X9`(‹Courier NewKÔÔ‡ôôôÔÔS‡ô\  `‹&Times New RomanSÔ4ÿÿ2Variableòòóó: ÿÿ8HTML MarkupÔB  ÔÔ ÿ ÔÔ  Ô2 ÿÿ0CommentÔB  Ô789:;<=> ÿÿ35;AGMSY_11.1.1.1.1.1.1.1. =Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú21Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Check€#1144€dated€March€1,€1996€in€the€amount€of€$4,875€and€check€#1183€dated€April€30,€1996€in€theÐ ° Ðamount€of€$13.665€are€both€drawn€on€CPLAððs€Tri„State€Bank€account. èÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú22Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_ÔCPLA€check€#3623€dated€November€13,€1998€in€the€amount€of€$450€indicates€that€it€is€for€ð ðlandscaping.ðð€Ð ° ÐWe€cannot€read€the€name€of€the€payee€on€the€photocopy€of€the€check€admitted€into€evidence.€€CPLA€check€#3170€datedÐ qÁ ÐNovember€17,€1997€in€the€amount€of€$9,500€is€made€payable€to€ð ðFosterððs€Landscaping€Co.ðð aÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú23Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€CPLA€check€#3695€dated€January€10,€2000€in€the€amount€of€$30,000,€CPLA€check€#3724€dated€FebruaryÐ ° Ð8,€2000€in€the€amount€of€$30,000€for€ð ðpartial€payment,ðð€CPLA€check€#3863€dated€August€10,€2000€in€the€amount€ofÐ qÁ Ð$10,000€for€ð ð3673€3òòrdóó€St.,ðð€CPLA€check€#3809€dated€May€24òòthóó,€2000€in€the€amount€of€$8,000,€and€CPLA€check€#3864Ð 2‚ Ðdated€July€11,€2000€in€the€amount€of€$10,000€for€ð ð3673€3òòrdóó€St.ðð3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)mi)(ÍO$——ÔÿÔòòóóÔÿÔ Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú24Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€Shelby€County€Assessorsððs€2001€appraisal€of€this€property€was€$234,000.00.€€The€Chandler€appraisalÐ ° Ðof€this€property€is€$225,000.00 Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú25Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€Shelby€County€Assessorððs€2001€appraisal€of€this€property€was€$190,000.00.€€The€Chandler€appraisalÐ ° Ðof€this€property€is€$160,000.00 !Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú10Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Although€Boatmenððs€Bank€has€changed€names,€we€will€refer€to€this€account€as€the€ð ðBoatmenððs€AccountððÐ ° Ðfor€purposes€of€this€Opinion. òÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€òòò òSeeóó€ó ódiscussion€of€Duncan€and€Blueððs€association€with€Ford€òòinfraóó€at€Board€of€Directors€Section. ¿Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú26Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€CPLA€check€#3544€dated€September€3,€1998€in€the€amount€of€$1,200€for€ð ðclosing€lot€831€N.€Thomas,ððÐ ° ÐCPLA€check€#€3443€dated€June€22,€1998€in€the€amount€of€$10,000.00€for€ð ð831€N.€Thomas,ðð€and€CPLA€check€#€3538Ð qÁ Ðin€the€amount€of€$170,000€for€ð ðpayment€831€N.€Thomas.ðð ÁÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú27Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€According€to€Mr.€Jackson,€Jackson€Financial€Centerððs€broker€dealer€is€Transamerica€Financial.€€As€theirÐ ° Ðbroker€dealer,€Transamerica€Financial€transmits€Jackson€Financial€Centerððs€securities€transactions€through€JacksonÐ qÁ ÐFinancial€Centerððs€clearing€agent,€which€is€Pershing. úÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú28Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€All€of€these€checks€are€made€payable€to€Pershing,€Inc.€€CPLA€check€#3720€dated€January€21,€1999€in€theÐ ° Ðamount€of€$80,539.48€references€Fordððs€account€#3DH„090408.€€CPLA€check€#€3793€dated€March€19,€1999€in€theÐ qÁ Ðamount€of€$38,395.68€is€for€ð ð3DH„090408.ðð€CPLA€check€#€3877€in€the€amount€of€$37,050.53€is€also€for€ð ð3DH„090408.ðð ÚÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú29Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€CPLA€check€#3733€in€the€amount€of€$140,000€and€CPLA€check€#€3180€in€the€amount€of€$50,000. Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú30Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€All€of€the€items€purchased€from€Unique€Antiques,€and€described€in€this€section,€were€purchases€withÐ ° ÐFellowship€COGICððs€tax€exempt€number. íÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú31Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€Ford€also€used€Fellowship€COGICððs€tax€exempt€number€to€purchase€all€of€the€rugs€discussed€in€this€section. RÝ ƒR×^$ÝÓ  Óà  àòòÚ  Ú32Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€In€addition€to€the€antiques€and€rugs€discussed€in€this€section,€there€is€evidence€in€the€record€to€suggest€thatÐ ° ÐFord€also€purchased€appliances€and€electronics€from€McDuff€with€CPLA€monies.€€ 1Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú33Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€The€Estate€of€Dr.€James€W.€Ford,€M.D.€filed€a€Motion€to€Intervene€on€January€21,€2003.€€There€is€no€orderÐ ° Ðin€the€record€to€show€that€this€Motion€was€granted. @Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú34Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€In€addition,€ATTACHMENT€I€to€the€CPLA€charter€states:Ð ° ÐÌà8  àà8` Ð Ð àIn€the€event€of€dissolution€of€the€corporation,€no€incorporator€shall€be€entitled€toÐ 2‚ Ðany€distribution€or€its€remaining€property€or€its€proceeds;€and€the€balance€of€allÐ óC Ðmoney€and€other€property€received€by€the€corporation€from€any€source,€after€theÐ ´ Ðpayment€of€all€debts€and€obligations€of€the€corporation,€shall€be€used€or€distributedÐ uÅ Ðexclusively€for€purposes€within€the€intendment€of€Section€501€(C)(3)€of€the€InternalÐ 6 † ÐRevenue€Code€as€the€same€now€exists€or€as€it€may€be€amended€from€time€to€time. ¿Ý ƒR×^$ÝÓ  Óà  àòòÚ  Ú35Ú  ÚóóÔ€ôéDò»»ÔÝ  ÝÔ_Ô€These€grounds€are€specifically€set€out€at€T.C.A.€ðð48„64„301.`uq0Ï ÂJ0001s033|x5ÿU‹ÿÀÀÀ˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0 Benham COAHighersGomesGarveyParteeDomenopthamologistPayche[x EINtha[nDiss[olutionVernita t]he f]or DHSC.F.R. T[NDate:MarchBy:JamesdaycaresEmmittRainesLyndgate A[N ACHArtryMemphisFirstWaynickROWLETT GAYE V.O.SNEEDChismremitterCraigenKirkwooddownpaymentEscroElkinsPershingTransamericaColliervilleMR jardSarkis KishCOGICSerapiRamanianGulsharMcDuffWhitsyhad hadQuinlenFinisterHumboltestopT.C.A. LLCsr]epresenti]nstituteDrinkardt]akeInmanp]rior CPLAreserve[d W.S.Ý ƒ£ª!ÝÑ€.ÑÑ8€Á¹»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼Á¹»»»ÔÑ8€ƒçXXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡î*vÁ¹ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼Á¹»îî*v #ԈРÓ# ÐÓ  ÓJanuary€22,€2004€SessionÐ öF ÐÔ‡XƒçX»¼Á¹ÔÌò òÔ#†¼Á¹»XXƒçó#ÔPAUL€G.€SUMMERS,€in€his€capacity€as€ATTORNEY€GENERAL€ANDÐ ï? ÐREPORTER€FOR€THE€STATE€OF€TENNESSEEòòóó€v.€ESTATE€OF€JAMESÐ  P ÐW.€FORD,€M.D.òòóóÔ‡XƒçX»¼Á¹Ôó óÐ  a ÐÌà@@½½ìàò òA€Direct€Appeal€from€the€Probate€Court€for€Shelby€CountyÐ  [ Ðà@@øøìàNo.€C„5408000€€€€€€The€Honorable€Robert€Benham,€JudgeÐ õ E  ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<²` AßÐ ³  ÐÌà@@TTìàNo.€W2003„00159„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€March€17,€Ô_Ô2004Ô_ÔÐ ¬ü  ÐÌßA€V) °°` dE<` AßÐ €Ð Ðó óÌÔ‡X?ŒXXXƒçÔÑ8€?ŒXXdéXXdé8Ñò òòòó óóóÓ  ÓÓÓÓÓà  àThis€is€an€appeal€from€the€order€of€the€probate€court€on€a€claim€filed€against€an€estate€by€theÐ xÈ ÐTennessee€Attorney€General€pursuant€to€the€authority€granted€by€the€Nonprofit€Corporation€Act.€Ð a± ÐThe€probate€court€denied€the€claim€in€part€and€granted€the€claim€in€part€by€various€rulingsÐ Jš Ðconcerning€the€existence€of€a€nonprofit€public€benefit€corporation€for€operation€of€child€daycareÐ 3ƒ Ðcenters,€the€ownership€of€assets€thereof,€and€continued€operation€of€the€centers.€€The€estate€appealsÐ l Ðand€the€Attorney€General€appeals.€€We€affirm€in€part,€reverse€in€part,€and€remand€with€directions.Ð U ÐÓ¾ÓÓ ÓÔ#†XƒçXXX?Œ=#ÔÔ#†¼Á¹»XXƒçê#ÔÔ‡XƒçX»¼Á¹ÔÌÓÓò òTenn.€R.€App.€P.€3;€Appeal€as€of€Right;€Judgment€of€the€Probate€Court€Affirmed€in€Part,Ð À ÐReversed€in€Part,€and€Remanded€with€DirectionsÐ ªú Ðó óÓ' ÓÌòòÓ  ÓÔ#†¼Á¹»àXƒç #ÔÔ‡XƒçX.¼Á¹ÔÓÓW.€Frank€Crawford,€Ô_ÔP.J.Ô_Ô,€W.S.óó,€delivered€the€opinion€of€the€court,€in€which€òòAlan€E.€Highers,Ð f¶ ÐJ.óó€and€òòDavid€R.€Farmer,€J.óó,€joined.Ð O Ÿ ÐÌKathleen€N.€Gomes,€Memphis;€Ruby€R.€Wharton,€Memphis€for€Appellant,€Estate€of€James€W.€Ford,Ð !"q! ÐM.D.,€DeceasedÐ  #Z" ÐÌPaul€G.€Summers,€Attorney€General€and€Reporter;€Dennis€J.€Garvey,€Deputy€attorney€General;Ð Ü$, $ ÐAlbert€L.€Partee,€III,€Senior€Counsel;€George€S.€Bell,€III€and€Victor€J.€Domen,€Jr.,€AssistantÐ Å%!% ÐAttorneys€General,€Nashville,€For€Appellee,€Paul€G.€Summers€in€his€official€capacity€as€AttorneyÐ ®&þ!& ÐGeneral€and€Reporter€for€the€State€of€TennesseeÐ —'ç"' ÐÓ ÓÌò òOPINIONó óÔ#†¼Á¹»XXƒç7 #ÔÔ‡XƒçX»¼Á¹ÔÐ i)¹$) ÐÌòòóóÔ#†¼Á¹»XXƒç² #ÔÓ  ÓÔ€XƒçX»¼Á¹Ôà  àJames€W.€Ford€(ð ðDecedentðð€or€ð ðFordðð)€was€an€opthamologist,€the€pastor€of€FellowshipÐ <+Œ&+ ÐCOGIC€Church,€a€City€Councilman,€and€then€a€County€Commissioner.€€Sometime€in€early€1994,Ð %,u', Ðâ âFord€began€a€plan€to€open€a€daycare€center€for€underprivileged€children€in€Memphis.€This€endeavorÐ -^(-ý Ðled€to€the€opening€of€four€(4)€daycare€centers€in€Shelby€County,€Tennessee,€under€the€name€ofÐ ° ÐChildrenððs€Palace€Learning€Academy€(ð ðCPLAðð).Ð ™é Ðâ âÌà  à€Ford€died€November€27,€2001,€and,€on€January€28,€2002,€a€Petition€was€filed€in€ShelbyÐ k» ÐCounty€Probate€Court€to€admit€his€Last€Will€and€Testament€to€probate€and€appoint€Joyce€FordÐ T¤ ÐMiller€and€Barbara€Ford„Branch,€Decedentððs€sisters,€as€Co„Executrices.€€Ð =  ÐÌà  àOn€February€26,€2003,€the€Co„Executrices€filed€a€Petition€pursuant€to€T.C.A.€ðð€30„2„0322Ð  _ Ðfor€authority€of€the€court€to€continue€the€operation€of€Decedentððs€business,€Childrenððs€PalaceÐ ø H ÐDaycare.€€The€Petition€alleges,€in€relevant€part:Ð á 1  ÐÌà8  àà8` Ð Ð àà ¸ à1.€€That€Decedent€was€operating€four€(4)€day€care€operationsÐ ³  Ðin€Memphis,€Shelby€County,€Tennessee€prior€to€his€death.€€TheÐ œì  Ðbusinesses€were€located€at€the€following€addresses.Ð…Õ ` x` x ÐÌà8  àà8` Ð Ð àà8¸ ` x` xàa.€€4404€Elvis€Presley€Blvd.€Memphis,€TennesseeÐW§ ¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xàb.€€851€Thomas,€Memphis,€TennesseeÐ@¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xàc.€€2451€Summer,€Memphis,€TennesseeÐ)y¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xàd.€€657€Chelsea,€Memphis,€TennesseeÐb¸ ¸  ÐÌà8  àà8` Ð Ð àà ¸ à2.€€That€Decedent€incorporated€himself€in€April,€1994€andÐ ä4 Ðexpected€to€operate€as€Childrenððs€Palace€Learning€Center,€Inc.€Ð Í ÐPetitioners€state€this€corporation€has€been€designated€inactive.€€As€aÐ ¶ Ðresult,€when€decedent€died,€his€business€was€being€conducted€as€aÐ Ÿï Ðsole€proprietorship...ЈØ` x` x ÐÌà  àOn€March€11,€2002,€counsel€for€the€Estate€filed€a€ð ðReport€of€Estateððs€Current€Status,ððÐ Zª Ðwhich€reads,€in€pertinent€part,€as€follows:Ð C“ ÐÌà8  àà8` Ð Ð àà ¸ àThe€exact€structure€or€form€of€the€Day€Care€business€is€notÐ e Ðclear.€€It€would€appear€that€there€was€a€Corporation€establishedÐ þN Ðhowever€the€failure€to€comply€with€certain€state€requirements€mayÐ ç 7 Ðhave€rendered€this€Corporation€administratively€dissolved€and/orÐ Ð!   Ðvoidable...й" !` x` x ÐÌA€ð ðComprehensive€Report€of€the€Childrenððs€Palace€Learning€Academiesðð€is€an€attachment€to€theÐ ‹$Û# Ðabove€status€report.€€It€states€that€there€are€four€(4)€daycare€centers€ð ðoperating€in€a€profit€margin,ððÐ t%Ä $ Ðwith€387€children€attending.Ð ]&­!% ÐÌà  àOn€March€19,€2002,€the€trial€court€signed€an€ð ðOrder€Authorizing€the€Continuation€ofÐ /(#' ÐBusiness.ðð€€This€Order€reads,€in€relevant€part,€as€follows:Ð )h$( ÐÌà8  àà8` Ð Ð àà ¸ àThis€cause€came€on€to€be€heard€upon€the€Petition€of€JoyceÐ ê*:&* ÐFord„Miller€and€Barbara€Ford„Branch,€Co„Executrices€of€the€EstateÐ Ó+#'+ ÐÔ_Ôof€James€W.€Ford,€M.D.;€upon€the€sworn€statements€in€open€Court€ofÐ ° Ðthe€Co„Executrices,€Mrs.€Elise€Evans,€Mr.€Sidney€Goldstein,€Mr.Ð ™é ÐA.C.€Hooper€and€Ms.€Ophelia€Ford;€upon€statements€of€counsel€forÐ ‚Ò Ðthe€estate€and€upon€the€entire€record,€it€appears€to€the€Court€and€theÐ k» ÐCourt€finds€as€follows:ÐT¤` x` x ÐÌà8  àà8` Ð Ð àà ¸ à1.€€That€the€Co„Executrices€are€authorized€to€continue€theÐ & v Ðoperation€of€the€four€(4)€daycare€centers€of€the€decedent,€known€asÐ  _ ÐChildrenððs€Palace€Learning€Academy,€until€the€next€hearing€in€thisÐ ø H Ðmatter,€April€22,€2002.Ðá 1 ` x` x ÐÌà8  àà8` Ð Ð àà ¸ à2.€€That€the€Co„Executrices€are€ordered€to€establish€four€(4)Ð ³  Ðseparate€bank€accounts€for€this€estate€and€they€shall€be€as€follows:Мì ` x` x ÐÌà8  àà8` Ð Ð àà ¸ à(a)€A€bank€account€for€the€operation€of€all€the€daycare€à8@ç` x` xàÐ n¾  Ðcenters.€€All€assets€and€disbursements€relating€to€the€daycare€centersÐ W§  Ðshould€be€paid€from€this€account.€€It€is€understood€that€this€may€beÐ @ Ðrestructured€and€evolve€at€a€later€time€into€four€to€five€separateÐ )y Ðaccounts.׃)×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ðb` x` x ÐÌà8  àà8` Ð Ð àà8¸ ` x` xà(b)€A€bank€account€regarding€everything€involvingÐ ä4 Ðthe€real€estate€of€the€decedent.Ð͸ ¸  ÐÌà8  àà8` Ð Ð àà8¸ ` x` xà(c)€A€bank€account€for€everything€relating€to€theÐ Ÿï Ðmedical€practice.Јظ ¸  ÐÌà8  àà8` Ð Ð àà8¸ ` x` xà(d)€A€bank€account€for€the€operation€of€the€estate.ÐZª¸ ¸  ÐÌà8  àà8` Ð Ð àà ¸ à3.€€The€Co„Executrices€are€ordered€to€prepare€and€submit€aÐ ,| Ðbudget€for€the€operation€of€the€daycare€centers€to€the€Court€and€to€allÐ e Ðthe€heirs€of€the€estate.ÐþN` x` x ÐÌà8  àà8` Ð Ð àà ¸ à4.€€That€the€Co„Executrices€are€to€provide€a€written€financialÐ Ð!   Ðreport€on€a€monthly€basis€to€the€Court€and€to€all€the€heirs€on€theÐ ¹" ! Ðeconomic€condition€of€the€daycare€centers.€€The€monthly€report€shallÐ ¢#ò" Ðcompare€the€budgeted€amount,€the€amount€spent€and€comparison€ofÐ ‹$Û# Ðthe€amount€spent€and€budget€on€a€year„to„year€basis.Ðt%Ä $` x` x ÐÌà8  àà8` Ð Ð àà ¸ à5.€€The€Co„Executrices€are€authorized€to€continue€to€useÐ F'–"& ÐPayche[x]€in€order€to€handle€the€payroll€of€the€daycare€centers.€Ð/(#'` x` x ÐÐ )h$( Ðà8  àà8` Ð Ð àà ¸ à6.€€That€the€Court€will€reserve€the€specifications€as€to€the€typeÐ ° Ðof€organization€to€be€utilized€for€the€purposes€of€running€the€daycareÐ ™é Ðcenters€pending€recommendations€by€A.C.€Hooper€which€shall€beÐ ‚Ò Ðprovided€to€the€Court€and€to€all€the€heirs.׃*×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×Ðk»` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ð= ` x` x ÐÌà8  àà8` Ð Ð àà ¸ à8.€€That€the€Co„Executrices€are€authorized€to€have€all€of€theÐ  _ Ðreal€estate€appraised.Ðø H` x` x ÐÌà  àA€second€ð ðOrder€Authorizing€the€Continuation€of€Businessðð€was€signed€by€the€court€on€AprilÐ Ê   Ð29,€2002.׃,×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€This€Order€effectively€confirms€the€March€19,€2002€Order,€òòsupraóó,€and€gives€theÐ ³  Ðfollowing€additional€authority€to€the€Co„Executrices:Ð œì  ÐÌà8  àà8` Ð Ð àà ¸ à2.€€That€the€Co„Executrices€are€authorized€to€employ€A.C.Ð n¾  ÐHooper€to€form€four€(4)€Limited€Liability€Corporations€(LLC)€for€theÐ W§  Ðday€care€centers€and€to€transfer€assets,€subject€to€debts€of€theÐ @ Ðdecedent,€into€the€LLCððs.€€A.C.€Hooper€is€authorized€to€work€toÐ )y Ðeffectuate€this€structure€and€to€transfer€the€assets.׃+Ÿ×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×Ðb` x` x ÐÌà  àOn€May€31,€2002,€the€last€day€of€the€claim€filing€period,€the€Attorney€General€(ð ðAGðð)€filedÐ ä4 Ða€Claim€against€the€Estate€to€recover€ð ðAssets€of€a€Public€Benefit€Nonprofit€Corporation...ChildrenððsÐ Í ÐPalace€Learning€Academy,€Inc.ðð€€The€ð ðNotice€of€Appearance€and€Nature€of€Claimðð€filed€with€theÐ ¶ ÐAGððs€$10,536,403.52€Claim€reads,€in€pertinent€part,€as€follows:Ð Ÿï ÐÌà8  àà8` Ð Ð à2.€€This€nonprofit€corporation€apparently€operated€the€four€(4)Ð qÁ Ðdaycare€centers€that€are€currently€administered€by€this€Estate€andÐ Zª Ðreceived€money€from€the€State€of€Tennessee€using€a€FederalÐ C“ ÐEmployer€Identification€Number€(EIN)€62„1558762€fromÐ ° Ðapproximately€May€9,€1994,€until€the€present...Йé` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ðk»` x` x ÐÌà8  àà8` Ð Ð à4.€€It€appears€that€some€assets€of€this€Estate€may€be€assets€of€theÐ =  Ðnonprofit€corporation.€€These€assets€may€include€the€retainedÐ & v Ðearnings€of€the€corporation€(essentially€funds€received€from€theÐ  _ ÐDepartment€of€Human€Services€less€expenses),€the€going€concernÐ ø H Ðbusiness€value€of€the€daycare€centers,€and€any€personalty€or€realty€ofÐ á 1  Ðthe€corporation.ÐÊ  ` x` x ÐÌà  àOn€June€3,€2002,€the€Estate€filed€a€ð ðPetition€for€Temporary€Restraining€Order€and€TemporaryÐ œì  ÐInjunctionðð€against€the€AG.€€The€AGððs€investigation€had€been€proceeding€pursuant€to€civilÐ …Õ  Ðinvestigative€demand€(CID)€authority€in€Tenn.€Code€Ann.€ðð8„6„401,€òòet€seq.óó€€The€Estateððs€PetitionÐ n¾  Ðwas€filed€in€an€effort€to€halt€the€investigation.€€The€Petition€reads,€in€relevant€part,€as€follows:Ð W§  ÐÌà8  àà8` Ð Ð à4.€€In€connection€with€Respondentððs€CID,€Respondent€has€scheduledÐ )y Ðdepositions€today,€June€3,€2002,€beginning€at€1:00€p.m.,€forÐ b ÐPetitioner,€Joyce€Ford„Miller€and€two€(2)€employees€of€ChildrenððsÐ ûK ÐPalace,€Katrina€Watkins€and€Lucille€Graham.Ðä4` x` x ÐÌà8  àà8` Ð Ð à5.€€That€since€the€Respondent€has€now€instituted€litigation€inÐ ¶ Ðconnection€with€this€matter,€the€Tennessee€Rules€of€Civil€ProcedureÐ Ÿï Ðapply...ЈØ` x` x ÐÌà8  àà8` Ð Ð à6.€€That€it€is€the€position€of€Petitioners€that€the€litigation€instituted€byÐ Zª ÐRespondent€violates€the€statute€of€limitations€as€prescribed€in€T.C.A.Ð C“ Ð48„10„705(a)€and€T.C.A.€48„58„601(a).€€This€action€should€have€beenÐ ,| Ðbrought€within€one€(1)€year€from€the€date€that€the€alleged€allegationÐ e Ðwas€discovered€and€no€more€tha[n]€three€(3)€years€after€the€allegedÐ þN Ðviolation.€€The€Respondent€became€aware€of€the€alleged€violation€onÐ ç 7 ÐOctober€18,€1996€pursuant€to€the€provisions€of€T.C.A.€48„64„202(a)Ð Ð!   Ðwhich€specifically€states€that€the€Secretary€of€State€ð ðshall€notify€theÐ ¹" ! ÐAttorney€General€and€Reporter€in€writingðð€upon€determination€ofÐ ¢#ò" Ðadministrative€dissolution€of€a€non„profit€corporation.€€A€Notice€ofÐ ‹$Û# ÐDetermination€was€issued€by€the€Secretary€of€State€on€October€18,Ð t%Ä $ Ð1996.€€On€January€17,€1997,€a€Certificate€of€AdministrativeÐ ]&­!% ÐDiss[olution]€was€issued€by€the€Secretary€of€State.ÐF'–"&` x` x ÐÌThe€trial€court€heard€the€Estateððs€Petition€on€June€3,€2002.€€After€reading€the€Stateððs€CID€into€record,Ð )h$( Ðthe€trial€court€ð ðassumed€jurisdictionðð€over€the€AGððs€CID€investigation€and€took€ð ðjudicial€notice€ofÐ *Q%) Ðâ âthe€fact€that€[the€AGððs€CID€issued€to€Joyce€Ford„Miller€for€testimony€and€documents]€is€totallyÐ ê*:&* Ðunreasonable.ðð€€On€June€10,€2002,€the€trial€court€signed€an€ð ðOrder€Granting€Temporary€RestrainingÐ ° ÐOrder,ðð€which€reads,€in€relevant€part,€as€follows:Ð ™é Ðâ âÌà8  àà8` Ð Ð à1.€€That€the€Court€has€taken€jurisdiction€over€the€assets€of€Dr.€JamesÐ k» ÐW.€Ford,€including€the€day€care€centers€of€Dr.€Ford€operated€in€theÐ T¤ Ðname€of€Childrenððs€Palace€Learning€Academy€#1,€#2,€#3,€and€#4,€andÐ =  Ðthat€these€day€care€centers€are€being€operated€pursuant€to€orders€ofÐ & v Ðthis€Court.Ð _` x` x ÐÌà8  àà8` Ð Ð à2.€€That€the€Court€takes€Judicial€Notice€that€the€requests€forÐ á 1  Ðdocuments€filed€by€Respondent€against...Joyce€Ford„Miller€asÐ Ê   ÐExecutrix€of€the€Estate€of€James€W.€Ford€are€unreasonable€andÐ ³  Ðburdensome.Мì ` x` x ÐÌà8  àà8` Ð Ð à3.€€That€this€Court€hereby€issues€a€Temporary€Restraining€OrderÐ n¾  Ðagainst€Respondent,€Paul€G.€Summers,€Attorney€General€andÐ W§  ÐReporter€for€the€State€of€Tennessee€from€obtaining€discovery€fromÐ @ ÐJoyce€Ford„Miller€in€her€fiduciary€capacity€only.Ð)y` x` x ÐÌà  àOn€June€14,€2002,€the€AG€filed€a€Motion€to€Dismiss€the€Temporary€Restraining€Order€andÐ ûK ÐTemporary€Injunction,€which€listed,€as€grounds€for€dismissal,€the€following:Ð ä4 ÐÌà8  àà8` Ð Ð àà ¸ àFor€grounds€the€Attorney€General€would€show€that,€pursuantÐ ¶ Ðto€Tenn.€R.€Civ.€P.€12.02:Пï` x` x ÐÌà8  àà8` Ð Ð àà8¸ ` x` xà1)€pursuant€to€Rule€12.02(1),€there€is€no€in€personamÐ qÁ Ðjurisdiction€over€the€Attorney€General,€whoseÐ Zª Ðstatutory€residence€is€Nashville,€not€Memphis,€andÐ C“ Ðwho€is€entitled€to€sovereign€immunity;Ð,|¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xà2)€pursuant€to€Rule€12.02(2),€there€is€no€subjectÐ e Ðmatter€jurisdiction€in€this€Court€over€the€AttorneyÐ þN ÐGeneralððs€investigation€into€the€disposition€of€theÐ ç 7 Ðassets€of€Childrenððs€Palace€Learning€Center,€Inc.;ÐÐ!  ¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xà3)€pursuant€to€Rule€12.02(3),€the€venue€is€improper,Ð ¹" ! Ðthe€Attorney€General€cannot€be€sued€in€this€CourtÐ ¢#ò" Ðover€his€investigation€into€the€disposition€of€theÐ ‹$Û# Ðnonprofit€assets€of€Childrenððs€Palace€LearningÐ t%Ä $ ÐAcademy,€Inc.;Ð]&­!%¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xà4)€pursuant€to€Rule€12.02(4)€and€(5),€there€is€anÐ F'–"& Ðinsufficiency€of€process€and€of€service€of€processÐ /(#' Ðpursuant€to€Rule€4;€indeed,€no€process€issued€to€bringÐ )h$( Ðthe€Attorney€General€before€this€Court€to€challengeÐ *Q%) Ðhis€investigation€into€the€disposition€of€the€assets€ofÐ ê*:&* ÐChildrenððs€Palace€Learning€Center,€Inc.;ÐÓ+#'+¸ ¸  Ðà8  àà8` Ð Ð àà8¸ ` x` xà5)€pursuant€to€Rule€12.02(6),€the€petition€fails€to€stateÐ ° Ða€claim€upon€which€relief€can€be€granted,€since€thereÐ ™é Ðis€no€basis€in€law€to€enjoin€the€Attorney€GeneralððsÐ ‚Ò Ðinvestigation€into€the€disposition€of€the€nonprofitÐ k» Ðassets€of€Childrenððs€Palace€Learning€Academy,€Inc.ÐT¤¸ ¸  ÐÌà  àThe€Estate€answered€with€its€ð ðMemorandum€in€Support€of€Petition€for€TemporaryÐ & v ÐInjunctionðð€on€June€17,€2002.€€At€a€hearing€on€June€17,€the€matter€was€adjusted€by€agreement€outÐ  _ Ðof€court€and€the€temporary€restraining€order€expired.Ð ø H ÐÌà  àOn€June€17,€2002,€the€Estate€filed€a€detailed€Exception€to€the€AGððs€Claim.€€The€ExceptionÐ Ê   Ðreasserts€the€Estateððs€defense€concerning€the€statute€of€limitations,€òòsee€óóEstateððs€ð ðPetition€forÐ ³  ÐTemporary€Restraining€Order€and€Temporary€Injunctionðð€òòsupraóó.€€In€addition,€the€Exception€raisesÐ œì  Ðthe€following€additional€exceptions:Ð …Õ  ÐÌà8  àà8` Ð Ð àà ¸ àò òb.€€The€claim€is€barred€because€it€is€Res€Judicata.ÐW§ ` x` x ÐÌà8  àà8` Ð Ð àó óà ¸ àThe€Co„Executrices€affirmatively€plead€the€defense€of€resÐ +{ Ðjudicata.€€The€Probate€Court,€having€full€knowledge€of€the€status€ofÐ d ÐDr.€Fordððs€administratively€dissolved€nonprofit€corporation€whichÐ ýM Ðwas€not€funded€or€completed€and€of€the€limited€liability€corporationÐ æ6 Ðwhich€was€not€funded€or€completed,€recognized€Dr.€Fordððs€day€careÐ Ï Ðcenters€as€sole€proprietorships€in€its€order€of€March€19,€2002€[theÐ ¸ Ðfirst€ð ðOrder€Authorizing€the€Continuation€of€Businessðð].€€Under€theÐ ¡ñ ÐRules€of€Civil€Procedure,€an€Order€becomes€final€after€thirty€(30)Ð ŠÚ Ðdays.€€The€Attorney€General€had€thirty€(30)€days€to€dispute€this€order.€Ð sà ÐEven€after€thirty€(30)€days,€the€Rules€allow€correction€of€Orders€ifÐ \¬ Ðthere€is€fraud€or€mistake.€€Nothing€has€been€filed€by€the€AttorneyÐ E• ÐGeneralððs€office€to€try€to€change€this€Court€Order.€€The€claim€isÐ .~ Ðbarred€because€it€is€res€judicata.€€The€issue€of€whether€there€exists€aÐ g Ðnonprofit€entity€has€already€been€decided€by€this€Court€and€there€isÐ  P Ðno€nonprofit€entity€of€Dr.€Ford€in€existence.Ðé 9` x` x ÐÌà8  àà8` Ð Ð àà8¸ ` x` xàò òc.€€The€claim€is€barred€by€Laches.л" !¸ ¸  ÐÌà8  àà8` Ð Ð àà ¸ àó óThe€Co„Executrices€hereby€affirmatively€assert€the€defense€ofÐ $ß# Ðlaches.€€The€Attorney€General€had€ò òactualó ó€notice€that€the€nonprofitÐ x%È $ Ðentity€known€as€ð ðChildrenððs€Palace€Learning€Academy,€Inc.ðð€wasÐ d&´!% Ðbeing€administratively€dissolved€by€the€Secretary€of€State€onÐ M'"& Ðò òOctober€18,€1996ó ó.€€The€Attorney€General€then€waits€ò òseven€(7)ó ó€yearsÐ 6(†#' Ðto€bring€any€kind€of€action€and€further,€ò òwaitsó ó€until€after€the€onlyÐ ")r$( Ðperson€who€could€answer€any€questions€has€died.€€It€is€inherentlyÐ *^%) Ðunfair€and€inequitable€for€the€Attorney€General€to€wait€seven€(7)Ð ÷*G&* Ðyears€before€it€brings€any€kind€of€action.€€No€other€governmentalÐ à+0'+ Ðagency,€either€state€or€federal,€can€wait€this€many€years€before€givingÐ ° Ðany€kind€of€notice€of€a€claim.€€There€has€been€no€allegation€of€fraudÐ ™é Ðagainst€the€decedent.€€The€equitable€defense€of€laches€exists€becauseÐ ‚Ò Ðof€situations€like€this€claim.€€You€cannot€wait€seven€(7)€years,€andÐ k» Ðthen€wait€till€the€only€person€involved€in€any€entity€dies,€to€file€anyÐ T¤ Ðkind€of€claim€or€lawsuit.€€This€claim€should€be€barred€by€laches.Ð= ` x` x ÐÌà8  àà8` Ð Ð àà ¸ àò òd.€€This€claim€should€be€barred€because€it€is€an€abuse€ofÐ  _ Ðprocess.Ðù I` x` x ÐÌà8  àà8` Ð Ð àà ¸ àó óThe€Attorney€General€has€chosen€to€selectively€prosecute€aÐ Í   Ðclaim€against€ò òthisó ó€decedent€and€ò òthisó ó€estate.€€The€Co„ExecutricesÐ ¶  Ðwould€affirmatively€state€that€the€Attorney€Generalððs€office€is€notÐ ¢ò  Ðfiling€claims€against€all€corporations,€profit€or€nonprofit,€that€filed€aÐ ‹Û  Ðcharter€and€were€later€administratively€dissolved.€€Dr.€Ford€was€aÐ tÄ  Ðrespected€public€figure.€€Why€would€the€Attorney€Generalððs€officeÐ ]­  Ðwait€seven€(7)€yearsò ò€ó óbefore€asserting€a€claim€or€even€making€any€kindÐ F– Ðof€inquiry€whatsoever?ò ò€€ó óSelective€prosecution€or€enforcement€is€aÐ 2‚ Ðviolation€of€the€Tennessee€as€well€as€the€United€States€ConstitutionÐ n Ðand€it€is€an€abuse€of€process.€€The€claim€of€the€Attorney€GeneralÐ W Ðshould€be€barred€as€an€abuse€of€process.Ðð@` x` x ÐÌà8  àà8` Ð Ð àà ¸ àò òe.€€The€Estate€affirmatively€denies€that€Childrenððs€PalaceÐ Â ÐLearning€Academy€was€ever€a€valid€nonprofit€corporation€andÐ ¬ü Ðthe€claim€should€be€barred.Жæ` x` x ÐÌà8  àà8` Ð Ð àó óà ¸ àThe€Co„Executrices€would€state€that€although€Dr.€Ford€filedÐ jº Ðfor€a€nonprofit€charter€and€obtained€an€employee€identificationÐ S£ Ðnumber,€however,€Dr.€Ford€ò òneveró ó€perfected€a€nonprofit€status.€€Dr.Ð <Œ ÐFord€did€not€file€for€nonprofit€status€recognition€with€the€federal€orÐ (x Ðstate€government.€€Dr.€Ford€never€received€any€advantages,€tax€orÐ  a Ðotherwise,€because€of€the€supposed€nonprofit€status.׃-×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€Since€operatingÐ ú J Ðthe€day€care€centers,€Dr.€Ford€never€filed€as€a€nonprofit€corporationÐ ã!3  Ðand€instead,€filed€his€federal€income€taxes€as€a€sole€proprietorship.€Ð Ì"! ÐDr.€Ford€did€not€receive€anyò ò€ó óadvantage€or€special€treatment€by€theÐ µ#" ÐDepartment€of€Human€Services€because€of€any€supposed€nonprofitÐ ¡$ñ# Ðstatus.ò òЊ%Ú $` x` x ÐÌà  àó óFollowing€the€appointment€of€a€Receiver€over€CPLA€by€the€Chancery€Court€of€DavidsonÐ ]'­"& Ðâ âCounty,€òòsee€infraóó,€the€AG€filed€a€ð ðMotion€to€Amend€Claimðð€in€the€Shelby€County€Probate€Court,Ð F(–#' Ðseeking€to€ð ðsubstitute€the€court€appointed€Receiver€for€CPLAð!ðDavid€S.€Weedð!ðas€the€representativeÐ ° Ðof€CPLA€on€the€claim.ðð€€To€date,€the€Receiver€has€not€been€made€a€party€to€this€Claim.Ð ™é Ðâ âÌà  àOn€August€26,€2002,€the€Estate€filed€another€ð ðPetition€for€Temporary€Restraining€Order€andÐ k» ÐTemporary€Injunctionðð€against€the€AG€to€enjoin€the€AG€from€exercising€its€powers€under€theÐ T¤ ÐNonprofit€Act.€€The€Estate€relied€upon€the€March€19,€2002€Order,€òòsupraóó,€for€its€contention€thatÐ =  ÐCPLA€had€no€corporate€existence€and€could€not€be€sued€in€the€Davidson€County€Chancery€CourtÐ & v Ðfor€appointment€of€a€receiver€since€subject€matter€jurisdiction€over€corporate€affairs€had€vested€withÐ  _ Ðthe€Shelby€County€Probate€Court.€€The€Estateððs€Motion€was€held€in€abeyance€upon€the€Joint€OrderÐ ø H Ðof€September€10,€2002€entered€by€and€between€the€Chancery€Court€of€Davidson€County€and€theÐ á 1  ÐShelby€County€Probate€Court,€òòseeóó€discussion€òòinfraóó€at€Receiver€and€Davidson€County€ChanceryÐ Ê   ÐCourt€section.ò òÐ ³  ÐÌà  àó óOn€September€6,€2002,€the€AG€filed€its€ð ðResponse€in€Opposition€to€the€Estateððs€ExceptionÐ †Ö  Ðto€the€Claim.ðð€€The€AGððs€Claim€was€heard€by€the€trial€court€on€September€11òòthóó,€12òòthóó,€13òòthóó,€17òòthóó€andÐ o¿  Ð18òòthóó,€2002.€€Ð X¨  ÐÌà  àThe€record€reveals€the€following€pertinent€facts:Ð *z ÐÌ1.€€ò òòòRecords€of€the€Tennessee€Secretary€of€State€Regarding€CPLAó óóóÐ üL ÐÌà  àOn€February€28,€1994,€Ford,€Vernita€Gray€Duncan€(ð ðDuncanðð),€and€Stanley€J.€Blue€(ð ðBlueðð)Ð Ñ! Ðsigned€the€charter€for€CPLA€as€incorporators.׃s×Ý ƒ#ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€The€Articles€of€Amendment€to€the€Charter€read,€inÐ º  Ðrelevant€part,€as€follows:Ð £ó ÐÌà8  àà8` Ð Ð àPursuant€to€the€provisions€of€Section€48„60„105€of€the€TennesseeÐ uÅ ÐNonprofit€Corporation€Act,€the€undersigned€corporation€adopts€theÐ ^® Ðfollowing€articles€of€amendment€to€its€charter:ÐG—` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ði` x` x ÐÌà8  àà8` Ð Ð à2.€€The€text€of€each€amendment€adopted€is:€ARTICLE€IIÐ ë ; ÐOBJECTIVESÐÔ!$ ` x` x ÐÌà8  àà8` Ð Ð àThe€purpose€for€which€the€Corporation€is€organized€is€exclusivelyÐ ¦#ö" Ðreligious,€charitable,€scientific,€literary€and€educational€within€theÐ $ß# Ðmeaning€of€section€501€(C)(3)€of€the€Internal€Revenue€Code€of€1986Ð x%È $ Ðor€the€corresponding€provision€of€any€future€United€States€InternalÐ a&±!% ÐRevenue€law.ÐJ'š"&` x` x ÐÌà  àà ` àà ¸ à*SEE€ATTACHMENT€IÐ )l$( Їà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*а` x` x ÐÌà8  àà8` Ð Ð àATTACHMENT€IЂÒ` x` x ÐÌà8  àà8` Ð Ð àIn€the€event€of€dissolution€of€the€corporation,€no€incorporator€shall€beÐ T¤ Ðentitled€to€any€distribution€or€its€remaining€property€or€its€proceeds;Ð =  Ðand€the€balance€of€all€money€and€other€property€received€by€theÐ & v Ðcorporation€from€any€source,€after€the€payment€of€all€debts€andÐ  _ Ðobligations€of€the€corporation,€shall€be€used€or€distributed€exclusivelyÐ ø H Ðfor€purposes€within€the€intendment€of€Section€501€(C)(3)€of€theÐ á 1  ÐInternal€Revenue€Code€as€the€same€now€exists€or€as€it€may€beÐ Ê   Ðamended€from€time€to€time.г ` x` x ÐÌà  àThe€By€Laws€of€CPLA€indicate€that€ð ð[t]he€PALACE€shall€maintain€a€non„profit€status€withÐ …Õ  Ðterms€to€pursue€objectives.ðð€€On€March€18,€1994,€Ford€and€Blue€signed€a€check€made€payable€to€theÐ n¾  ÐSecretary€of€State€(the€ð ðSecretaryðð).€€Check€number€105€was€drawn€on€a€corporate€checking€accountÐ W§  Ðheld€in€the€name€of€CPLA€at€Tri„State€Bank.€€The€amount€was€insufficient€to€pay€the€filing€fee.€€OnÐ @ ÐMarch€21,€1994,€the€Secretary€stamped€the€date€on€the€charter€materials€and€returned€them€to€CPLAÐ )y Ðwith€notice€that€the€ð ðcorrect€privilege€tax€and€filing€fee€have€not€been€remitted.ðð€€The€SecretaryÐ b Ðrequested€another€$40€and,€on€April€15,€1994,€Ford€and€Blue€signed€check€number€128€drawn€onÐ ûK Ðthe€CPLA€Tri„State€account.€€On€April€19,€1994,€the€Secretary€again€stamped€the€charter€materialsÐ ä4 Ðwith€the€date€and€filed€the€corporate€charter.Ð Í ÐÌà  àOn€July€28,€1995,€the€ð ðCorporation€Annual€Reportðð€of€CPLA€was€filed€with€the€SecretaryÐ Ÿï Ðof€State.€€The€Report€was€signed€by€Ford€as€ð ðCh.€of€Board.ðð€€The€Report€lists€Stanley€Blue€asÐ ˆØ Ðtreasurer€and€Vernita€Duncan€as€vice„president.€€The€Report€also€indicates€that€Blue,€Duncan€andÐ qÁ ÐFord€comprise€the€board€of€directors€of€CPLA.Ð Zª ÐÌà  àOn€October€18,€1996,€the€Secretary€notified€Ford€that€CPLAððs€1996€Corporation€AnnualÐ ,| ÐReport€was€overdue:Ð e ÐÌà8  àà8` Ð Ð àPursuant€to€the€provisions€of€Sections€48„24„201€or€48„25„301€of€theÐ ç 7 ÐTennessee€Business€Corporation€Act€or€Sections€48„64„201€or€48„65„Ð Ð!   Ð301€of€the€Tennessee€Nonprofit€Corporation€Act,€it€has€beenÐ ¹" ! Ðdetermined€that€the€following€ground(s)€exist(s)€for€theÐ ¢#ò" Ðadministrative€dissolution€of€the€above€corporation,€if€a€TennesseeÐ ‹$Û# Ðcorporation,€or€the€revocation€of€its€certificate€of€authority,€if€aÐ t%Ä $ Ðforeign€corporation:Ð]&­!%` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThe€Corporation€Annual€Report€which€was€due€on€or€à8@—` x` xàbeforeÐ /(#' Ð8/01/96€has€not€been€filed.€€To€obtain€an€annual€report€form€or€forÐ )h$( Ðadditional€information,€please€call€this€office€at€(615)€741„4994.Ð*Q%)` x` x Ðâ âÐ ê*:&* Ðà8  àà8` Ð Ð àIf€the€corporation€does€not€correct€each€ground€for€dissolution€orà8@¬€Octoberàà8@¬Ð Ð àÐ ° Ðâ ârevocation€or€provide€evidence€that€each€ground€does€not€exist€withÐ ™é Ðtwo€(2)€months€after€effective€receipt€of€this€notice,€the€corporationÐ ‚Ò Ðand€any€associated€assumed€name(s)€shall€be€administrativelyÐ k» Ðdissolved€or€may€have€its€certificate€of€authority€revoked,€asÐ T¤ Ðappropriate...Ð= ` x` x ÐÌOn€January€17,€1997,€the€Secretary€issued€a€ð ðCertificate€of€Administrative€Dissolutionðð€to€CPLAÐ  _ Ðð ð[f]or€failure€to€file€the€Corporation€Annual€Report,€as€required€by€Chapter€16€of€the€TennesseeÐ ø H ÐBusiness€Corporation€Act€or€the€Tennessee€Nonprofit€Corporation€Act.ððÐ á 1  ÐÌ2.€€ò òòòDepartment€of€Human€Services€Documentation€Regarding€CPLAÐ ³  ÐÌó óóóà0  àThe€Tennessee€Department€of€Human€Services€(ð ðDHSðð)€records€for€CPLA€include€a€Ð‰Ù (#(# Ðdaycare€operatorððs€application€with€ð ðAssurance€of€Compliance€with€Section€504€of€theÐ r  ÐRehabilitation€Act€of€1973,€as€Amended,ðð€which€reads,€in€relevant€part,€as€follows:Ð [«  ÐÌà8  àà8` Ð Ð àPursuant€to€ðð€84.5(a)€of€the€regulation€[45€C.F.R.€84.5(a)],€theÐ -} Ðrecipient€gives€this€Assurance€in€consideration€of€and€for€the€purposeÐ f Ðof€obtaining€any€and€all€Federal€grants,€loans,€contracts€(exceptÐ ÿO Ðprocurement€contracts€and€contracts€of€insurance€or€guaranty),Ð è8 Ðproperty,€discounts,€or€other€Federal€financial€assistance€extended€byÐ Ñ! Ðthe€Department€of€Health€and€Human€Services€after€the€date€of€thisÐ º  ÐAssurance,€including€payments€or€other€assistance€made€after€suchÐ £ó Ðdate€on€applications€for€Federal€financial€assistance€that€wereÐ ŒÜ Ðapproved€before€such€date.€€The€recipient€recognizes€and€agrees€thatÐ uÅ Ðsuch€Federal€financial€assistance€will€be€extended€in€reliance€on€theÐ ^® Ðrepresentations€and€agreements€made€in€this€Assurance€and€that€theÐ G— ÐUnited€States€will€have€the€right€to€enforce€this€Assurance€throughÐ 0€ Ðlawful€means.€€This€Assurance€is€binding€on€the€recipient,€itsÐ i Ðsuccessors,€transferees,€and€assignees,€and€the€person€or€personsÐ  R Ðwhose€signatures€appear€below€are€authorized€to€sign€this€AssuranceÐ ë ; Ðon€behalf€of€the€recipient.ÐÔ!$ ` x` x ÐÌà8  àà8` Ð Ð àThis€Assurance€obligates€the€recipient€for€the€period€during€whichÐ ¦#ö" ÐFederal€assistance€is€extended€to€it€by€the€Department€of€Health€andÐ $ß# ÐHuman€Services€or,€where€the€assistance€is€in€the€form€of€real€orÐ x%È $ Ðpersonal€property,€for€the€period€provided€for€in€ðð84.5(b)€of€theÐ a&±!% Ðregulation€[45€C.F.R.€84.5(b)].ÐJ'š"&` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ð)l$(` x` x ÐÌà8  àà8` Ð Ð àòòChildrenððs€Palace€Learning€Academyóó€€€€€€€òò4404€Elvis€Presley€Blvd.Ðî*>&*` x` x Ðóóà0  àà0` (#(#àName€of€Recipient€(Type€or€Print)à0` (#` (#à€€€€€€€Street€Address€or€P.O.€BoxÐ×+''+(#(# Їà8  àà8` Ð Ð àòò62„1558762€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óó€€€€€€€€òòMemphis,€T[N]€38116а` x` x Ðóóà0  àà0` (#(#à(IRS)€Employer€Identification€Number€€€€€CityЙé` (#` (# ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ðk»` x` x ÐÌà8  àà8` Ð Ð àI€certify€that€the€above€information€is€complete€and€correct€to€the€bestÐ =  Ðof€my€knowledge.Ð& v` x` x ÐÌà8  àà8` Ð Ð àòò3/18/94óóà0` x` xàà0hxxàòòJames€W.€Ford€/S/€Chairman€of€BoardóóÐø Hhxhx Ðòòà  àà ` àóóDateà0 ¸ àà0¸ (#¸ (#àà0h(#(#àSignature€and€Title€of€Authorized€OfficialÐá 1 h(#h(# ÐÌà8  àà8` Ð Ð àà ¸ àà  àà h àà À àà  à€€€€€€€€òòóóг ` x` x ÐIn€addition,€the€DHS€documents€include€an€ð ðAssurance€of€Compliance€with€the€Department€ofÐ œì  ÐHealth€and€Human€Services€Regulation€under€Title€VI€of€the€Civil€Rights€Act€of€1964,ðð€whichÐ …Õ  Ðreads,€in€pertinent€part,€as€follows:Ð n¾  ÐÌà8  àà8` Ð Ð àòòChildrenððs€Palace€Learning€Academyóó€(hereinafter€called€theÐ @ Ðð ðApplicantðð)Ð)y` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*ÐûK` x` x ÐÌà8  àà8` Ð Ð àIf€any€real€property€or€structure€thereon€is€provided€or€improved€withÐ Í Ðthe€aid€of€Federal€financial€assistance€extended€to€the€Applicant€byÐ ¶ Ðthe€Department,€this€Assurance€shall€obligate€the€Applicant,€or€in€theÐ Ÿï Ðcase€of€any€transfer€of€such€property,€any€transferee,€for€the€periodÐ ˆØ Ðduring€which€the€real€property€or€structure€is€used€for€a€purpose€forÐ qÁ Ðwhich€the€Federal€financial€assistance€is€extended€or€for€anotherÐ Zª Ðpurpose€involving€the€provision€of€similar€services€or€benefits.€€If€anyÐ C“ Ðpersonal€property€is€so€provided,€this€Assurance€shall€obligate€theÐ ,| ÐApplicant€for€the€period€during€which€it€retains€ownership€orÐ e Ðpossession€of€the€property.€€In€all€other€cases,€this€Assurance€shallÐ þN Ðobligate€the€Applicant€for€the€period€during€which€the€FederalÐ ç 7 Ðfinancial€assistance€is€extended€to€it€by€the€Department.ÐÐ!  ` x` x ÐÌà8  àà8` Ð Ð àTHIS€ASSURANCE€is€given€in€consideration€of€and€for€the€purposeÐ ¢#ò" Ðof€obtaining€any€and€all€Federal€grants,€loans,€contracts,€property,Ð ‹$Û# Ðdiscounts€or€other€Federal€financial€assistance€extended€after€the€dateÐ t%Ä $ Ðhereof€to€the€Applicant€by€the€Department,€including€installmentÐ ]&­!% Ðpayments€after€such€date€on€account€of€applications€for€FederalÐ F'–"& Ðfinancial€assistance€which€were€approved€before€such€date.€€TheÐ /(#' ÐApplicant€recognizes€and€agrees€that€such€Federal€financialÐ )h$( Ðassistance€will€be€extended€in€reliance€on€the€representations€andÐ *Q%) Ðagreements€made€in€this€Assurance,€and€that€the€United€States€shallÐ ê*:&* Ðhave€the€right€to€seek€judicial€enforcement€of€this€Assurance.€€ThisÐ Ó+#'+ ÐAssurance€is€binding€on€the€Applicant,€its€successors,€transferees,€andÐ ° Ðassignees,€and€the€person€or€persons€whose€signatures€appear€belowÐ ™é Ðare€authorized€to€sign€this€assurance€on€behalf€of€the€Applicant.ЂÒ` x` x ÐÌà8  àà8` Ð Ð àDate:òòMarch€16,€1994óóà0h` x` xà€€€€€€€€€€€òòChildrenððs€Palace€Learning€AcademyóóÐT¤hxhx Ðòòà  àà ` àà ¸ àà  àà h àà À àóóApplicant€(type€or€print)Ð =  ÐÌà  àà ` àà ¸ àà  àà h àà À àBy:òòJames€W.€Ford€/S/€Ch.€of€BoardÐ  _ Ðà  àà ` àà ¸ àà  àà h àà À àóó€€€€€Signature€and€Title€of€Authorized€OfficialÐ ø H ÐÌÌòòóóà  àBased€upon€these€documents€and€the€representations€contained€therein,€CPLA€received€itsÐ ³  Ðlicense€to€operate€a€child€care€center€and€began€to€receive€payments€from€the€State€of€Tennessee.Ð œì  Ðò òÌ3.€€òòBoard€of€Directorsóóó óÐ o¿  ÐÌà  àVernita€Gray€Duncan€is€a€physician€who€met€Ford€when€she€started€working€at€the€MemphisÐ B’ ÐHealth€Center€(where€Ford€was€a€staff€physician)€in€1983.€€€She€shared€office€space€with€Ford€onÐ +{ Ðtwo€occasions,€once€in€1986€and€again€in€1995.Ð d ÐÌà  àDuncan€testified€that,€sometime€in€1994,€Ford€approached€her€to€serve€as€a€board€memberÐ æ6 Ðfor€a€daycare€he€was€starting:Ð Ï ÐÌà8  àà8` Ð Ð àQ.€€Were€you€[Duncan]€ever€approached€by€Dr.€Ford€to€be€involvedÐ ¡ñ Ðin€the€creation€of€a€daycare€center?ЊÚ` x` x ÐÌà8  àà8` Ð Ð àA.€€I€was€approached€by€Dr.€Ford€to€serve€as€a€board€member€for€aÐ \¬ Ðdaycare€that€he€was€planning€to€start.ÐE•` x` x ÐÌà8  àà8` Ð Ð àQ.€...Do€you€recall€when€that€was€approximately?Ðg` x` x ÐÌà8  àà8` Ð Ð àA.€€It€was€about€1994.Ðé 9` x` x ÐÌà8  àà8` Ð Ð àQ.€€How€did€he€approach€you€about€that?€€What€did€he€ask€you€for,Ð »" ! Ðwhat€did€he€ask€of€you?Ф#ô"` x` x ÐÌà8  àà8` Ð Ð àA.€€He€stated€that€he€was€going€to€open€a€daycare€or€some€daycares,Ð v%Æ $ Ðhe€was€going€to€open€a€daycare€and€he€was€forming€a€board,€and€heÐ _&¯!% Ðasked€me€would€I€serve,€would€I€agree€to€serve.ÐH'˜"&` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€you€agree€to€serve€on€the€board?Ð)j$(` x` x ÐÌà8  àà8` Ð Ð àA.€€I€did€agree,€yes.Ðì*<&*` x` x ÐÐ Õ+%'+ Ðà  àStanley€J.€Blue€worked€for€Ford€from€approximately€1986€until€1997.€€Concerning€his€dutiesÐ ° Ðand€responsibilities€while€in€Fordððs€employ,€Blue€testified€as€follows:Ð ™é ÐÌà8  àà8` Ð Ð àQ.€€How€long€of€a€period€of€time€did€you€[Blue]€work€for€Dr.€JamesÐ k» ÐFord?ÐT¤` x` x ÐÌà8  àà8` Ð Ð àA.€€Roughly€from€1986€to€around€[97],€after€that€I€guess€I€didÐ & v Ðindependent€contracting€with€him.€€He€would€call€me€if€he€needed€aÐ  _ Ðfavor€or€something€like€that.€€I€was€familiar€with€his€office€and€theÐ ø H Ðway€things€were€done.€€After€[97],€I€wasnððt€in€his€employment.Ðá 1 ` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*г ` x` x ÐÌà8  àà8` Ð Ð àQ.€€In€approximately€1994€until€you€left€his€employ,€what€were€yourÐ …Õ  Ðduties€and€responsibilities€for€Dr.€Ford?Ðn¾ ` x` x ÐÌà8  àà8` Ð Ð àA.€€Numerous,€numerous€responsibilities.€€Dr.€Ford€served€in€a€lot€ofÐ @ Ðcapacities.€€He€was€a€pastor.€€He€was€on€the€city€counsel.€€He€was€aÐ )y Ðgeneral€practitioner.€€He€was€an€eye€surgeon.€€He€was€a€businessÐ b Ðowner.€€Because€of€that€fact,€a€lot€of€responsibilities€fell€upon€me,€butÐ ûK Ðprimarily€I€was€his€office€administrator€at€his€medical€practice.Ðä4` x` x ÐÌà  àBlue€testified€that€Ford€also€approached€him€about€being€on€the€board€for€a€daycareÐ ¶ ÐFord€was€planning€to€open:Ð Ÿï ÐÌà8  àà8` Ð Ð àQ.€€Do€you€[Blue]€recall€in€the€beginning€part€of€1994€having€aÐ qÁ Ðdiscussion€with€Dr.€Ford€about€forming€a€daycare?ÐZª` x` x ÐÌà8  àà8` Ð Ð àA.€€Briefly,€yes.Ð,|` x` x ÐÌà8  àà8` Ð Ð àQ.€€What€happened€when€he€first€approached€you€aboutð!ð€ÐþN` x` x ÐÌà8  àà8` Ð Ð àA.€€Pretty€much€a€decision€was€already€made€that€he€was€going€to€goÐ Ð!   Ðinto€the€daycare€business.й" !` x` x ÐÌà8  àà8` Ð Ð àQ.€€He€told€you€that?Ћ$Û#` x` x ÐÌà8  àà8` Ð Ð àA.€€Yeah.Ð]&­!%` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ð/(#'` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€he€ask€you€to€attend€a€meeting...?Ð*Q%)` x` x Ðâ âÐ ê*:&* Ðà8  àà8` Ð Ð àA.€€Actually,€the€way€that€came€about,€I€was€actually€on€my€way€outÐ ° Ðâ âthe€door€one€afternoon€and€saw€a€few€people€come€in,€and€I€turnedÐ ™é Ðaround€and€asked€him€[Ford]€what€was€going€on,€and€he€said,€I€meantÐ ‚Ò Ðto€tell€you€that€we€are€going€to€have€a€meeting.€€And€it€kind€of€upsetÐ k» Ðme€because€it€ran€into€my€personal€time,€and€I€told€him€it€would€haveÐ T¤ Ðbeen€nice€for€you€[Ford]€to€let€me€know.€€And€he€said€itððs€not€goingÐ =  Ðto€take€long,€basically€going€to€have€a€brief€meeting€and€introduceÐ & v Ðsome€people€and€that€is€it.Ð _` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ðá 1 ` x` x ÐÌà8  àà8` Ð Ð àQ.€€What€did€you€discuss€at€that€meeting?г ` x` x ÐÌà8  àà8` Ð Ð àA.€€Nothing€really.€€Dr.€Ford€mentioned€that€he€was€going€to€form€aÐ …Õ  Ðboard€and€he€wanted€us€to€serve€in€some€capacity.€€He€said€at€thatÐ n¾  Ðpoint€he€didnððt€really€know,€he€was€going€to€get€back€with€us€at€aÐ W§  Ðlater€date€to€advise€us€on€what€capacity€he€wanted€us€to€serve€in.€Ð @ ÐBasically€he€wanted€us€to€identify€names€with€faces.׃×Ý ƒ#ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×Ð)y` x` x ÐÌ4.ò ò€òòCPLA€Bank€Accounts,€Deposits€from€the€State,€and€Checks€made€to€ð ðCashððÐ ûK ÐÌà  àó óóóOn€or€about€March€10,€1994,€account€number€0198692€was€opened€at€Tri„State€Bank€ofÐ Ñ! ÐMemphis€in€the€name€of€ð ðChildren€Palace€Learning€Academy.ðð€€The€signature€card€indicates€thatÐ º  Ðthe€account€type€is€ð ðBusiness€Corporation,ðð€and€that€two€(2)€signatures€are€required€for€checks.€Ð £ó ÐFord,€Blue,€and€Duncan€are€listed€as€those€authorized€to€sign€checks€drawn€on€this€account.€€TheÐ ŒÜ Ðback€of€the€signature€card€reads€as€follows:Ð uÅ ÐÌà8  àà8` Ð Ð àI,€òòStanley€J.€Blueóó€Title€òòSecretaryóó€of€the€above€styled€organizationÐ G— Ðhereby€certify€that€the€person(s)€named€above€are€duly€elected€and/orÐ 0€ Ðappointed€to€the€offices€indicated€in€accordance€with€our€by„lawsÐ i Ðand/or€articles€of€association€and/or€by€a€meeting€of€qualifiedÐ  R Ðmembers€(a€quorum€being€present):€further€certify€that€the€signaturesÐ ë ; Ðon€the€are€genuine.ÐÔ!$ ` x` x ÐÌà8  àà8` Ð Ð àDATE€òò€€3/4/94€€óóà0h` x` xàà0Àhxhxàà0ÀxÀxàSigned€òò€€Stanley€J.€Blue€/S/Ц#ö"xx ÐÌóóà8  àà8` Ð Ð àAddress€&€Phone€#€of€Signers:Ðx%È $` x` x ÐÌà8  àà8` Ð Ð à(1)€òò655€E.€Raines€Rd.€/€Memphis€38104€388„7097ÐJ'š"&` x` x Ðóóà8  àà8` Ð Ð à(2)€òò1977€Janis€Ave.€/€Memphis€38116€388„4568€€€Ð3(ƒ#'` x` x Ðóóà8  àà8` Ð Ð à(3)€òò2053€Lyndgate€/€Memphis€38111€332„6992€€€€Ð)l$(` x` x Їóóà8  àà8` Ð Ð àà8¸ ` x` xàUNDER€THE€PENALTIES€OF€PERJURY€IÐ ° ÐCERTIFY€THAT€I€HAVE€SUPPLIED€TRI„STATEÐ ™é ÐBANK€OF€MEMPHIS€THE€PROPER€TAXÐ ‚Ò ÐIDENTIFICATION€NUMBER,€AND€THAT€I€(ORÐ k» ÐMY€ORGANIZATION)€IS€NOT€SUBJECT€TO€IRS„Ð T¤ ÐDIRECTED€BACKUP€WITHHOLDING€OR€THATÐ =  ÐMY€ORGANIZATION€IS€A[N]€EXEMPTÐ & v ÐRECIPIENT€UNDER€THE€INTERNAL€REVENUEÐ  _ ÐSERVICE€REGULATIONS.Ðø H¸ ¸  ЀÌà8  àà8` Ð Ð àSOCIAL€SECURITY€#€OR€TAX€IDENTIFICATION€#òò62„155„8762ÐÊ  ` x` x ÐÌóóà8  àà8` Ð Ð àòò€€€€€€€€óóEXEMPT€RECIPIENTà0À` x` xàà0ÀxÀxàSigned€òò€€€€Stanley€J.€Blue€/S/óóМì xx ÐÌOn€May€30,€1994,€Ford€and€Blue€signed€an€ð ðAuthorization€Agreement€for€Automatic€DepositsÐ n¾  Ð(ACH€Credits)ðð€for€the€State€of€Tennessee,€which€authorized€ACH€deposits€to€be€made€into€the€Tri„Ð W§  ÐState€checking€account.€€From€May€of€1994€until€June€of€1997,€the€State€deposited€someÐ @ Ð$3,167,668.80€into€this€account.׃×Ý ƒ#ÃÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×€Of€the€checks€in€record€for€this€account,€there€were€some€sixty„fourÐ )y Ð(64)€checks€made€payable€to€cash,€during€the€years€1994€to€1997,€for€a€total€of€$300,343.88.׃U×Ý ƒ#ÃÝòòÚ  Ú9Ú  ÚóóÝ  Ý×  ×€€InÐ b Ðaddition,€in€1997,€there€were€five€(5)€checks€drawn€on€this€account€made€payable€to€James€W.€Ford.€Ð ûK ÐThe€total€amount€of€these€five€checks€is€$26,500.00.€€Concerning€where€this€money€went,€BlueÐ ä4 Ðtestified€as€follows:Ð Í ÐÌà8  àà8` Ð Ð àQ.€€These€checks,€a€lot€of€them€in€Exhibit€33€are€made€out€to€cash,€itÐ Ÿï Ðappears€you€[Blue]€either€signed€on€the€front€or€you€would€sign€onÐ ˆØ Ðthe€back€and€get€cash?ÐqÁ` x` x ÐÌà8  àà8` Ð Ð àA.€€Correct.ÐC“` x` x ÐÌà8  àà8` Ð Ð àQ.€€What€did€you€do€with€that€cash?Ðe` x` x Ðâ âÐ þN Ðà8  àà8` Ð Ð àA.€€Presented€it€to€Dr.€Ford,€it€really€wasnððt€that€uncommon.€€I€mean,Ð ° Ðat€one€point€his€[Fordððs]€credit€was€so€bad€that€people€were€hesitantÐ ™é Ðto€take€his€checks,€stuff€like€that.ЂÒ` x` x Ðâ âÌà8  àà8` Ð Ð àQ.€€You€[Blue]€didnððt€get€the€cash?ÐT¤` x` x ÐÌà8  àà8` Ð Ð àA.€€No.Ð& v` x` x ÐÌà8  àà8` Ð Ð àQ.€€You€gave€it€to€Dr.€Ford?Ðø H` x` x ÐÌà8  àà8` Ð Ð àA.€€Right.ÐÊ  ` x` x ÐÌIn€addition€to€the€CPLA€checks€made€to€cash€and€to€Ford€personally,€there€are€numerous€checksÐ œì  Ðmade€payable€to€Tri„State€Bank€without€indication€of€their€purpose.Ð …Õ  ÐÌà  àOn€June€12,€1997,€account€number€050101265830€was€opened€at€Boatmenððs€Bank€inÐ W§  ÐMemphis,€Tennessee,€in€the€name€of€ð ðChildrenððs€Palace€Learning€Academyðð€and€with€the€CPLAÐ @ ÐEIN€number€62„1558762.׃r×Ý ƒ#ÃÝòòÚ  Ú10Ú  ÚóóÝ  Ý×  ×€€The€ð ðCommercial€Signature€Cardðð€indicates€that€the€type€of€ownershipÐ )y Ðis€ð ðCorporation,ðð€and€that€there€are€two€(2)€signatures€required€for€checks.€€There€are€four€(4)Ð b Ðauthorized€signers€listed€on€the€account:€James€W.€Ford,€Patricia€Artry,€Joyce€Miller,€and€JosephÐ ûK ÐFord.€On€June€24,€1997,€Ford€and€Joseph€Ford€signed€a€second€ð ðAuthorization€Agreement€forÐ ä4 ÐAutomatic€Deposits€(ACH€Credits)ðð€for€the€State€of€Tennessee,€which€requested€that€the€accountÐ Í Ðfor€deposit€of€State€funds€be€changed€from€the€Tri„State€account€to€the€Boatmenððs€account.€FromÐ ¶ ÐJune€16,€1997€until€August€31,€2000,€some€$5,626,383.10€was€deposited€into€the€BoatmenððsÐ Ÿï Ðaccount.׃ ×Ý ƒ#ÃÝòòÚ  Ú11Ú  ÚóóÝ  Ý×  ×Approximately€$267,000.00€in€checks€drawn€on€this€account€were€made€payable€to€ð ðDr.Ð ˆØ ÐJames€W.€Ford.ðð׃!! ×Ý ƒ#ÃÝòòÚ  Ú12Ú  ÚóóÝ  Ý×  ×€€Of€these€checks€that€contain€a€description€of€their€purpose€in€the€ð ðForðð€sectionÐ qÁ Ðon€the€face€of€the€check,€the€majority€indicate€that€the€check€was€either€for€rent€or€for€ð ðrepaymentÐ Zª Ðof€loan.ðð€€There€are€no€documents€(i.e.€promissory€notes€and/or€leases)€in€this€record€to€indicate€thatÐ C“ ÐFord€loaned€money€to€CPLA€or€that€CPLA€leased€any€real€estate€from€Ford.€€In€addition,€there€wereÐ ,| Ðat€least€two€(2)€checks€totaling€$50,000.00€drawn€on€this€account€and€made€payable€to€ð ðVectorÐ e Ðâ âMedical€Technologiesðð€for€medical€supplies€for€Fordððs€private€practice.Ð þN Ðà  àOn€April€7,€1999€account€number€15000391,€in€the€name€of€ð ðChildrenððs€Palace€LearningÐ ° Ðâ âAcademy,ðð€was€opened€at€MemphisFirst€Community€Bank€in€Memphis,€Tennessee.€€The€EINÐ ™é Ðnumber€listed€on€the€account€is€62„1558762.€€An€ð ðAuthorization€Agreement€for€Automatic€DepositsÐ ‚Ò Ð(ACH€Credits)ðð€for€the€State€of€Tennessee€was€filed€on€September€18,€2000,€and€State€deposits€wereÐ k» Ðmade€to€this€account€from€October€1,€2000€through€August€15,€2001.€€Deposits€to€this€accountÐ T¤ Ðtotaled€$2,036,072.10.׃"×Ý ƒ#ÃÝòòÚ  Ú13Ú  ÚóóÝ  Ý×  ×€€Four€(4)€checks€drawn€on€account€number€15000391€were€made€payableÐ =  Ðto€Dr.€James€W.€Ford€in€the€total€amount€of€$62,040.00.€€One€(1)€check€to€cash€in€the€amount€ofÐ & v Ð$4,000€was€also€drawn€on€this€account.Ð  _ ÐÌà  àA€total€amount€of€$10,843,808.68€was€paid€from€the€State€to€CPLA€through€August€15,Ð á 1  Ð2002.׃#×Ý ƒ#ÃÝòòÚ  Ú14Ú  ÚóóÝ  Ý×  ×Ð Ê   Ðò òòòó óóóÌ5.€€ò òòòReal€Propertyóóó óÐ œì  ÐÌà  àò ò(a)€òò4404€Elvis€Presley€Boulevardó óóóÐ qÁ  ÐÌà  àVernon€Sneed,€one€of€the€previous€owners€of€property€known€as€4404€Elvis€PresleyÐ D” ÐBoulevard,€Memphis,€Tennessee€(ð ðEP€Propertyðð),€testified€that,€around€March,€1994,€€he€met€withÐ -} Ðtwo€women€and€a€realtor,€whom€he€understood€to€be€representing€Ford,€to€discuss€leasing€the€EPÐ f ÐProperty.׃$£ ×Ý ƒ#ÃÝòòÚ  Ú15Ú  ÚóóÝ  Ý×  ×€€The€EP€Property,€which€had€been€a€Panchoððs€Restaurant,€was€leased€for€two€to€threeÐ ÿO Ðmonths€and,€during€that€time,€Sneed€testified€that€improvements€were€made€to€the€property.€€On€JuneÐ è8 Ð4,€1994,€a€Warranty€Deed€was€executed€for€the€EP€Property.€€The€Warranty€Deed€(Shelby€CountyÐ Ñ! ÐRegister€#EN2968)€reads,€in€relevant€part,€as€follows:Ð º  ÐÌà8  àà8` Ð Ð àà ¸ àTHIS€INDENTURE,€made€and€entered€into€this€4òòthóó€day€ofÐ ŒÜ ÐJune,€1994,€by€and€between€ROWLETT€WILSON€SNEED,€JR.,Ð uÅ ÐAND€WIFE,€SARAH€GAYE€SNEED,€RICHARD€ARNOLDÐ ^® ÐSNEED€AND€WIFE,€ANNE€T.€SNEED,€VERNON€O€SNEED,€JR.,Ð G— ÐTRUSTEE€FOR€THE€V.O.€SNEED„KATIE€SNEED€TRUST€1.€Ð 0€ ÐVERNON€O€SNEED,€JR.,€TRUSTEE€FOR€THE€V.O.€SNEED„Ð i ÐKATIE€SNEED€TRUST€2€AND€VERNON€O.€SNEED,€JR.,€partiesÐ ° Ðof€the€first€part,€and€JOYCE€F.€MILLER,€TRUSTEE,€party€of€theÐ ™é Ðsecond€part.€òòò òЂÒ` x` x ÐÌà8  àà8` Ð Ð àóó*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*ÐU¥` x` x ÐÌà8  àà8` Ð Ð àó óòòProperty€Owner€and€Addressóó:Ð) y` x` x Ðà8  àà8` Ð Ð àJames€W.€Ford,€M.D.Ð b` x` x ÐÌà8  àà8` Ð Ð àMemphis,€TN€38117Ðä 4 ` x` x Ðà8  àà8` Ð Ð àòòProperty€AddressóóÐÍ  ` x` x Ðà8  àà8` Ð Ð à4404€Elvis€Presley€Blvd,€Tn.€€38116ж ` x` x ÐÌÓÓà  àSneed€testified€concerning€the€terms€of€the€sale€and€the€source€of€payments€as€follows:Ð ˆØ  ÐÓÓà8  àà8` Ð Ð àQ.€€You€and€the€other€persons€having€interest€in€the€real€estate,€didÐ Zª  Ðyou€enter€into€an€installment€sales€contract€with€Dr.€James€Ford?ÐC“` x` x ÐÌà8  àà8` Ð Ð àA.€€Yes.Ðe` x` x ÐÌà8  àà8` Ð Ð àQ.€€Can€you€describe€the€terms,€as€you€recall,€of€that€contract?Ðç7` x` x ÐÌà8  àà8` Ð Ð àA.€€The€sale€was€one„third€down.€€The€balance€was€to€be€paid€in€threeÐ ¹  Ðor€four€lump€payments.€€I€donððt€recall€exactly,€but€it€was€not€aÐ ¢ò Ðmonthly€term€payment€note.€€They€would€make€one€payment,€threeÐ ‹Û Ðmonths€later€another€payment,€three€months,€and€finish€out€withinÐ tÄ Ðone€year.€€It€was€just€a€one„year€note.Ð]­` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€Dr.€Ford€pay€as€agreed?Ð/` x` x ÐÌà8  àà8` Ð Ð àA.€€Yeah,€he€got€it€there.€€As€you€see,€I€made€a€note€on€there€,€finalÐ  Q Ðpayment€was€9„5€of€ðð95,€which€was€a€couple€of€months€late.Ðê :` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*м" !` x` x ÐÌà8  àà8` Ð Ð àQ.€€Mr.€Sneed,€did€you€receive€the€full€purchase€price€from€Dr.€FordÐ Ž$Þ# Ðeventually?Ðw%Ç $` x` x ÐÌà8  àà8` Ð Ð àA.€€Yes,€we€did.ÐI'™"&` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€you€receive€as€payment€checks€from€Dr.€Ford€on€a€companyÐ )k$( Ðaccount?Ð*T%)` x` x ÐÌà8  àà8` Ð Ð àA.€€I€could€not€tell€you€what€[sic]€they€came€from,€no.ÐÖ+&'+` x` x Їà8  àà8` Ð Ð àQ.€€Did€you€receive€as€payment€money€orders€from€Dr.€Ford?а` x` x ÐÌà8  àà8` Ð Ð àA.€€He€[Ford]€had€an€individual€who€was€supposedly€his€officeÐ ‚Ò Ðmanager€that€would€bring€us€checks,€and€it€seemed€like€there€was€aÐ k» Ðmoney€order€involved€somewhere€or€maybe€one€of€the€cashierððsÐ T¤ Ðcheck,€but€I€didnððt€see€any€endorsements€on€the€cashierððs€checks...Ð= ` x` x ÐÌà  àConcerning€improvements€made€to€the€EP€Property€and€the€source€of€payment€for€thoseÐ  _ Ðimprovements,€Sneed€testified,€in€relevant€part,€as€follows:Ð ø H ÐÌà8  àà8` Ð Ð àQ.€€You€[Sneed]€saw€quite€a€bit€of€improvement€actually€made€in€theÐ Ê   Ðinterior€of€that€building,€did€you€not?г ` x` x ÐÌà8  àà8` Ð Ð àA.€€There€was€a€lot€of€improvement,€interior€and€exterior.Ð…Õ ` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*ÐW§ ` x` x ÐÌà8  àà8` Ð Ð àQ.€€You€[Sneed]€donððt€have€any€idea€for€the€cost?Ð)y` x` x ÐÌà8  àà8` Ð Ð àA.€€None€at€all.ÐûK` x` x ÐÌà8  àà8` Ð Ð àQ.€€But€you€know€from€what€you€had€seen€before€you€sold€it€orÐ Í Ðafterwards€that€quite€a€bit€of€money€went€into€getting€the€propertyÐ ¶ Ðtogether;€wouldnððt€you€say€that?Пï` x` x ÐÌà8  àà8` Ð Ð àA.€€Again,€quite€a€bit€of€money€is€differentð!ð€ÐqÁ` x` x ÐÌà8  àà8` Ð Ð àQ.€€Several€thousands€of€dollars?ÐC“` x` x ÐÌà8  àà8` Ð Ð àA.€€Several€thousands,€sure.Ðe` x` x ÐÌà  àThe€total€purchase€price€for€the€EP€Property€was€$175,000.00.€€€The€total€cost€of€renovationsÐ ç 7 Ðis€not€in€record.€€Sneed€testified€that,€in€June€1994,€he€received€$58,333.00,€which€represented€one„Ð Ð!   Ðthird€of€the€purchase€price,€and€that€the€subsequent€payments€were€made€until€the€total€purchaseÐ ¹" ! Ðprice€was€fully€paid€in€1995.€€Sneed€did€not€recall€how,€or€from€what€source(s),€theÐ ¢#ò" Ðpayments€were€made.€€The€record€does€not€contain€any€documentation€concerning€the€downÐ ‹$Û# Ðpayment€or€installment€payments€on€the€EP€Property,€nor€does€it€contain€any€itemization€of€theÐ t%Ä $ Ðâ ârepairs€made€to€the€facility€or€the€cost€thereof.׃%×Ý ƒ#ÃÝòòÚ  Ú16Ú  ÚóóÝ  Ý×  ×€€Ð ]&­!% Ðò òà  à(b)€€òò657€Chelsea€Property׃&×Ý ƒ#ÃÝòòÚ  Ú17Ú  ÚóóÝ  Ý×  ×Ð ° Ðâ âó óóóÌà  àOn€or€about€January€5,€1996,€Chism€Trail,€Inc.€sold€property€known€as€657€Chelsea.€€TheÐ ƒÓ ÐWarranty€Deed€(Shelby€County€Registerððs€#FP8239)€indicates€that€the€Owner€of€the€property€isÐ l¼ ÐJames€W.€Ford.€€Tommy€Chism,€the€Vice„President€of€Chism€Trail,€Inc.€testified€that€he€and€FordÐ U¥ Ðwere€involved€in€the€negotiations€for€the€purchase€of€this€property.€€Although€the€original€purchaseÐ > Ž Ðprice€was€$200,000.00,€because€of€vandalism,€the€final€selling€price,€as€indicated€on€the€SettlementÐ ' w ÐStatement€(Stateððs€Exhibit€27),€was€$85,000.00.€€Concerning€the€financing€of€the€property,€Mr.Ð  ` ÐChism€testified€as€follows:Ð ù I ÐÌà8  àà8` Ð Ð àQ.€€Did€you€[Chism€Trail,€Inc.]€finance€a€portion€of€the€sales€price?€Ð Ë   ÐHow€exactly€were€you€paid?д ` x` x ÐÌà8  àà8` Ð Ð àA.€€I€think€we€were€paid€every€three€months€until€he€[Ford]€paid€itÐ †Ö  Ðoff.Ðo¿ ` x` x ÐÌà8  àà8` Ð Ð àQ.€€Do€you€recall€the€amounts€he€would€pay?€€Was€this€a€writtenÐ A‘ Ðinstallment€contract€at€all?Ð*z` x` x ÐÌà8  àà8` Ð Ð àA.€€I€donððt€know€how€much€it€was.ÐüL` x` x ÐÌà8  àà8` Ð Ð àQ.€€Do€you€recall€how€Dr.€Ford€made€payments€to€you?ÐÎ` x` x ÐÌà8  àà8` Ð Ð àA.€€By€check.Рð` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€he€[Ford]€use€a€personal€check€or€a€company€check,€do€youÐ r Ðknow?Ð[«` x` x ÐÌà8  àà8` Ð Ð àA.€€I€believe€it€was€a€company€check.Ð-}` x` x ÐÌà  àCPLA€check€#325,€dated€May€13,€1996,€is€drawn€on€the€Tri„State€Bank€account€in€theÐ ÿO Ðamount€of€$21,600.00.€€On€the€ð ðForðð€line€this€check€reads€ð ðcc€#€Chism€Trail€Inc.ðð€€ConcerningÐ è 8 Ðreceipt€of€a€cashierððs€check€from€CPLA,€Mr.€Chism€testified€as€follows:òòò òÐ Ñ!!  ÐÌà8  àà8` Ð Ð àóóó óQ.€€This€cashierððs€check,€what€is€the€date€on€the€cashierððs€check?Ф#ô"` x` x ÐÌà8  àà8` Ð Ð àA.€€May€13,€1996.Ðv%Æ $` x` x ÐÌà8  àà8` Ð Ð àQ.€€What€is€the€amount€of€the€check?ÐH'˜"&` x` x ÐÌà8  àà8` Ð Ð àA.€€Twenty„one€thousand€six€hundred.Ð)j$(` x` x Їà8  àà8` Ð Ð àQ.€€Does€the€cashierððs€check€show€the€remitter?а` x` x ÐÌà8  àà8` Ð Ð àA.€€Childrenððs€Palace.ЂÒ` x` x ÐÌà8  àà8` Ð Ð àQ.€€Is€this€a€check€you€received€as€partial€payment€for€the€transactionÐ T¤ Ðat€657€Chelsea?Ð= ` x` x ÐÌà8  àà8` Ð Ð àA.€€To€my€knowledge,€yes.Ð _` x` x ÐÌà8  àà8` Ð Ð àQ.€€You€testified€earlier€that€your€recollection€is€that€the€paymentsÐ á 1  Ðcame€from€a€business,€they€were€from€a€business€account€rather€thanÐ Ê   ÐDr.€Ford€personally?г ` x` x ÐÌà8  àà8` Ð Ð àA.€€I€donððt€remember€his€personal€account.€€I€remember€they€wereÐ …Õ  Ðfrom€Childrenððs€Palace.Ðn¾ ` x` x ÐÌà8  àà8` Ð Ð àQ.€€It€was€from€Childrenððs€Palaceððs€account€rather€than€Dr.€Ford€forÐ @ Ð657€Chelsea?Ð)y` x` x ÐÌà8  àà8` Ð Ð àA.€€Yes.ÐûK` x` x ÐÌà  àIn€addition,€there€are€two€(2)€checks€drawn€on€CPLAððs€account€in€the€total€amount€ofÐ Í Ð$50,308.00€made€payable€to€ð ðD.B.E.€Constructionðð€and€referencing€the€Chelsea€property.׃'×Ý ƒ#ÃÝòòÚ  Ú18Ú  ÚóóÝ  Ý×  ×€€ThereÐ ¶ Ðare€also€fifteen€(15)€checks€drawn€on€CPLAððs€account€in€the€total€amount€of€$109,600.00€madeÐ Ÿï Ðpayable€to€ð ðAlex€Howardðð€and€referencing€work€done€to€the€Chelsea€property.׃(×Ý ƒ#ÃÝòòÚ  Ú19Ú  ÚóóÝ  Ý×  ×€€There€are€twoÐ ˆØ Ðchecks€totaling€$6,500.00€for€paving€services€at€the€Chelsea€property.׃T£ ×Ý ƒ#ÃÝòòÚ  Ú20Ú  ÚóóÝ  Ý×  ×€€There€are€two€(2)€checksÐ qÁ Ðâ âmade€payable€to€ð ðConstruction€Unlimitedðð€in€the€total€amount€of€$18,540.00€referencing€work€toÐ Zª Ðthe€Chelsea€property.׃j×Ý ƒ#ÃÝòòÚ  Ú21Ú  ÚóóÝ  Ý×  ×€€CPLA€check€#2100,€dated€April€11,€1997,€is€made€payable€to€ð ðTonyÐ ° Ðâ âHastingsðð€in€the€amount€of€$1,000.00€and€is€for€ð ðFloors€on€Chelsea.ðð€€CPLA€check€#2087,€datedÐ ™é ÐMay€7,€1997,€in€the€amount€of€$1,055.00€is€made€payable€to€ð ðCraigen€and€Sons€Cabinetðð€for€ð ðDPÐ ‚Ò Ðon€Cabinets.ðð€€CPLA€check€#2147,€dated€May€28,€1997,€is€made€payable€to€Craigen€and€Sons€in€theÐ k» Ðamount€of€$2,274.60€for€ð ð657€Chelsea/Cabinets.ðð€€CPLA€check€#1870,€dated€September€16,€1996,Ð T¤ Ðin€the€amount€of€$10,000.00€is€made€payable€to€ð ðRichardson€Heating€Air€Cond.€Co.ððand€is€forÐ =  Ðð ðPartial€Payment€Air€Chelsea.ðð€€CPLA€check€#1995,€dated€January€16,€1997,€is€made€payable€toÐ & v Ðð ðJohnnie€Richardsonðð€in€the€amount€of€$5,500.00€for€ð ðAir/heat€657€Chelsea.ðð€€CPLA€check€#2038,Ð  _ Ðdated€April€10,€1997,€in€the€amount€of€$3,000.00€is€made€payable€to€ð ðMemphis€Roofing.ðð€€CPLAÐ ø H Ð#1198,€dated€June€11,€1996,€in€the€amount€of€$5,270.00€is€made€payable€to€ð ðMs.€Janice€Jonesðð€forÐ á 1  Ðð ðRoofing€657€Chelsea.ðð€€CPLA€check€#2116,€dated€April€17,€1997,€in€the€amount€of€$4,400.00€isÐ Ê   Ðmade€payable€to€ð ðCharles€Kirkwoodðð€for€ð ðFinal€Payment€on€Carpet.ðð€€In€addition,€there€are€two€(2)Ð ³  Ðchecks€in€the€total€amount€of€$9,900.00€made€payable€to€landscaping€companies.׃k×Ý ƒ#ÃÝòòÚ  Ú22Ú  ÚóóÝ  Ý×  ×ò òòòÐ œì  ÐóóÌà0  à(c)€€òò3673€S.€Third€PropertyÐo¿ (#(# Ðó óóóÌà0  àIn€May€of€1999,€Chism€Trail,€Inc.€sold€property€located€at€3673€South€Third€Streetòòò òÐB’(#(# Ðó óóóin€Memphis,€Tennessee.€€The€Warranty€Deed€of€May€17,€1999€(Shelby€County€Registerððs€#JK3672)Ð +{ Ðindicates€that€James€Ford€is€the€owner€of€that€property.€€According€to€the€Settlement€StatementÐ d Ð(Stateððs€Exhibit€29),€the€sales€price€of€this€property€was€$335,000.00.€Concerning€this€transaction,Ð ýM ÐMr.€Chism€testified,€in€relevant€part,€as€follows:Ð æ6 ÐÌà8  àà8` Ð Ð àQ.€€Can€you€[Mr.€Chism]€describe€the€manner€in€which€Dr.€FordÐ ¸ Ðcontracted€to€pay€Chism€Trail€for€the€property€at€3673€Third.Сñ` x` x ÐÌà8  àà8` Ð Ð àA.€€I€believe€he€[Ford]€made€a€hundred„thousand„dollarÐ sà Ðdownpayment.€€First€of€all,€he€put€up€fifteen€thousand€dollars€earnest,Ð \¬ ÐI€can€remember€that,€and€a€hundred€thousand€dollars€downpayment.ÐE•` x` x ÐÌà  àCPLA€check€#3519€dated€August€19,€1999€in€the€amount€of€$100,000.00€is€made€payableÐ g Ðto€Chism€Trail€for€ð ð2òòndóó€property.ðð€€There€are€an€addition€five€(5)€CPLA€checks€in€record€that€areÐ  P Ðâ âmade€payable€to€Chism€Trail€in€the€total€amount€of€$88,000.00.׃l×Ý ƒ#ÃÝòòÚ  Ú23Ú  ÚóóÝ  Ý×  ×à8 @ àà8 @ àòòò òÐ é 9 Ðóóà0  à(d)€€òò2451€Summer€Property׃p×Ý ƒ#ÃÝòòÚ  Ú24Ú  ÚóóÝ  Ý×  ×а(#(# Ðâ âó óóóÌà  àStateððs€Exhibit€12,€a€ð ðCounterpart€Warranty€Deedðð€(Shelby€County€Registerððs€#HP8737)€isÐ ƒÓ Ðdated€June€22,€1998.€€The€Deed€indicates€that€James€Ford€is€the€owner€of€property€located€at€2451Ð l¼ ÐSummer€Avenue€in€Memphis,€Tennessee.€€Stateððs€Exhibit€35H€contains€three€checks€drawn€onÐ U¥ ÐCPLAððs€Boatmenððs€Bank€account:€Check€#3239,€dated€January€14,€1998,€in€the€amount€ofÐ > Ž Ð$30,000.00€is€made€payable€to€ð ðHandel€R.€Durham,€Jr.ðð€for€ð ðpartial€payment€on€Summer€property;ððÐ ' w Ðcheck€#3316,€dated€March€25,€1998,€in€the€amount€of€$72,666.00€is€made€payable€to€ð ðChambers€andÐ  ` ÐDurhamðð€for€ð ð2451€Summer€Ave.;ðð€check€#3364,€dated€April€22,€1998,€in€the€amount€of€$56,333.00Ð ù I Ðis€made€payable€to€ð ðHandel€Durham,€Escro€[sic]ðð€for€ð ð2451€Summer.ððÐ â 2  Ðò òÌà  à(e)€€òò831€North€Thomas€Property׃q×Ý ƒ#ÃÝòòÚ  Ú25Ú  ÚóóÝ  Ý×  ×Ð µ  Ðó óóóÌà  àStateððs€Exhibit€36€is€a€Warranty€Deed€(Shelby€County€Registerððs€#HP7958)€conveyingÐ ˆØ  Ðproperty€known€as€831€North€Thomas€Street,€Memphis,€Tennessee€from€ð ðElkins€and€Jay€Investment,Ð qÁ  Ða€South€Carolina€General€Partnership€composed€of€Samuel€M.€Elkins€and€David€B.€Jayðð€to€ð ðJamesÐ Zª  ÐW.€Ford.ðð€€Stateððs€Exhibit€35I€contains€three€(3)€checks€each€made€payable€to€ð ðChambers€andÐ C“ ÐDurhamðð€in€the€total€amount€of€$181,200.00.׃t\×Ý ƒ#ÃÝòòÚ  Ú26Ú  ÚóóÝ  Ý×  ×ò òòòÐ ,| ÐóóÌ6.€€òòStocksÐ ÿO ÐóóÌà0  à(a)€€òòPershingó óÐÓ#(#(# ÐÌà  àóóLee€Andrew€Jackson€is€a€certified€financial€planner€with€Jackson€Financial€Center.׃ug×Ý ƒ#ÃÝòòÚ  Ú27Ú  ÚóóÝ  Ý×  ×€€StateððsÐ ¦ö ÐExhibit€31€is€a€New€Account€Form,€which€indicates€that€an€account€with€Jacksonððs€company€wasÐ ß Ðopened€in€the€name€of€James€W.€Ford€on€January€23,€1996.€€Ford€was€assigned€Account€numberÐ xÈ Ð3DH„090408€under€his€own€social€security€number.€€Exhibit€31€shows€numerous€stock€buys€forÐ a± Ðaccount€3DH„090408€in€Fordððs€name€personally.€€Mr.€Jackson€testified€concerning€theseÐ Jš Ðtransactions€as€follows:Ð 3ƒ Ðâ âÐ l Ðà8  àà8` Ð Ð àQ.€When€you€[Mr.€Jackson]€had€your€dealings€with€him€[Ford],€howÐ ° Ðâ âdid€he€buy€stocks?€€Describe€for€me€a€normal€transaction€for€him.Йé` x` x ÐÌà8  àà8` Ð Ð àA.€€He€[Ford]€would€call€by€phone,€identify€the€stock€he€wasÐ k» Ðinterested€in,€and€we€probably€discussed€it€a€little€bit,€and€he€wouldÐ T¤ Ðgive€me€an€order€to€buy€X€number€of€shares€of€that€stock€for€him.Ð= ` x` x ÐÌà8  àà8` Ð Ð àQ.€€How€did€he€[Ford]€pay€for€it?Ð _` x` x ÐÌà8  àà8` Ð Ð àA.€€Generally€by€check.Ðá 1 ` x` x ÐÌà  àExhibit€31€contains€three€(3)€checks€that€were€used€for€the€purchase€of€stocks€in€Fordððs€nameÐ ³  Ðpersonally.€€The€total€amount€of€these€three€(3)€checks€is€$145,985.69.׃v×Ý ƒ#ÃÝòòÚ  Ú28Ú  ÚóóÝ  Ý×  ×òòÐ œì  Ðóóò òÌà0  à(b)€€òòMemphisFirstÐo¿ (#(# ÐÌà  àó óóóIn€April€1998,€Ford€signed€a€ð ðSubscription€Agreementðð€with€MemphisFirst€Corporation€forÐ C“ Ð1,000€shares€of€stock.€€Ford€subscribed€as€an€ð ðIndividualðð€and€the€stock€certificate€(Stateððs€ExhibitÐ ,| Ð7)€is€in€Fordððs€name€personally.€€Two€(2)€CPLA€checks€totaling€$190,000.00€were€used€to€purchasesÐ e ÐMemphisFirst€stock.׃wÓ×Ý ƒ#ÃÝòòÚ  Ú29Ú  ÚóóÝ  Ý×  ×òòò òÐ þN ÐóóÌ7.€€òòOther€PropertyÐ Ñ! ÐóóÌà0  à(a)€€òòAntiquesó óÐ¥õ(#(# ÐóóÌà0  àPaul€Michael€Willis€is€the€owner€of€Unique€Antiques€and€Auction€Gallery€in€Collierville,ÐxÈ(#(# ÐTennessee€(ð ðUnique€Antiquesðð).€€Mr.€Willis€testified€that€Ford€began€coming€to€the€businessÐ a± Ðsometime€in€1998€and€that,€from€that€point,€Ford€was€a€fairly€regular€customer€both€in€the€showroomÐ Jš Ðand€at€various€auctions.€€Unique€Antiques€also€handled€the€auction€for€the€Ford€Estate.€€ConcerningÐ 3ƒ ÐFordððs€purchases,€the€source€of€payment€for€these€purchases,€and€the€disposition€of€the€property€atÐ l Ðthe€auction€held€for€Ford€Estate,€Stateððs€Exhibit€22,€the€business€records€of€Unique€Antiques€andÐ  U ÐAuction€Gallery,€evidence€the€following:Ð î > Ð1.€€On€January€17,€1999,€Ford€attended€an€estate€auction€held€by€Unique€Antiques.€€At€that€auction,Ð ×!'  ÐFord€purchased€several€items,€including:€(a)€stained€glass€window€for€$2,500,€(b)€two€(2)€bronzeÐ À"! Ðsconces€for€$800,€(c)€a€dining€room€suite€for€$7,750,€(d)€a€bronze€girl€for€$300,€(e)€a€marble€topÐ ©#ù" Ðâ âconsole€for€$850,€(f)€a€pair€of€18'€long€iron€gates€for€$4,000,€and€(g)€a€pair€of€14'€x€9'€iron€gates€forÐ ’$â# Ð$3,250.׃x×Ý ƒ#ÃÝòòÚ  Ú30Ú  ÚóóÝ  Ý×  ×€€According€to€Mr.€Willisððs€testimony,€all€of€these€items€were€delivered€to€Fordððs€home€atÐ ° Ðâ â655€E.€Raines€Rd.€in€Memphis,€TN.€€CPLA€check€#3710€dated€January€17,€1999€in€the€amount€ofÐ ™é Ð$21,505.00€was€used€to€purchase€the€above€items.€€Concerning€the€disposition€of€this€property,€Mr.Ð ‚Ò ÐWillis€testified,€in€relevant€part,€as€follows:Ð k» ÐÌà8  àà8` Ð Ð àTHE€WITNESS€[Mr.€Willis]:€...The€very€first€item€was€a€stainedÐ =  Ðglass€window.Ð& v` x` x ÐÌà8  àà8` Ð Ð àBY€MR.€GARVEY:Ðø H` x` x ÐÌà8  àà8` Ð Ð àQ.€€Was€that€sold€in€the€estate€[of€Ford]?ÐÊ  ` x` x ÐÌà8  àà8` Ð Ð àA.€€No,€it€is€still€in€the€house€[655€E.€Raines€Rd.].Мì ` x` x ÐÌà8  àà8` Ð Ð àQ.€€How€about€lot€number€10„14€[2€bronze€sconces]?Ðn¾ ` x` x ÐÌà8  àà8` Ð Ð àA.€€That€item,€the€bronze€sconces€are€still€in€the€house.Ð@` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ðb` x` x ÐÌà8  àà8` Ð Ð àQ.€€How€about€item€lot€number€421,€422,€423€and€424€[dining€roomÐ ä4 Ðsuite].ÐÍ` x` x ÐÌà8  àà8` Ð Ð àA.€€This€item€is€a€dining€room€suite€that€I€[Willis]€sold€for€him€[Ford]Ð Ÿï Ðin€another€auction.€€I€have€the€paperwork€here,€too.ЈØ` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*ÐZª` x` x ÐÌà8  àà8` Ð Ð àA.€€Okay,€but€it€[the€dining€room€suite]€wasnððt€involved€in€theÐ ,| Ð[Estate]€sale€at€all.Ðe` x` x ÐÌà8  àà8` Ð Ð àQ.€€Did€he€[Ford]€purchase€this€[dining€room]€suite€at€that€auction?Ðç 7` x` x ÐÌà8  àà8` Ð Ð àA.€€Yes,€he€bought€this€dining€room€suite€at€the€auction.й" !` x` x ÐÌà8  àà8` Ð Ð àQ.€€Was€it€sold€at€the€estate€sale?Ћ$Û#` x` x ÐÌà8  àà8` Ð Ð àA.€€No.Ð]&­!%` x` x ÐÌà8  àà8` Ð Ð àQ.€€Is€it€still€in€the€house?Ð/(#'` x` x ÐÐ )h$( Ðà8  àà8` Ð Ð àA.€€No.а` x` x ÐÌà8  àà8` Ð Ð àQ.€€Do€you€know€where€it€is?ЂÒ` x` x ÐÌà8  àà8` Ð Ð àA.€€Yeah,€I€sold€it€maybe€a€year€later€for€Dr.€Ford...ÐT¤` x` x ÐÌà8  àà8` Ð Ð à*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€*Ð& v` x` x ÐÌà8  àà8` Ð Ð àA.€€The€next€page€it€just€says€a€bronze€girl.€€I€have€no€idea€[if€it€wasÐ ø H Ðsold€at€the€estate€auction].€€There€was€[sic]€all€kind€of€small€bronzesÐ á 1  Ðin€the€house.€€I€canððt€remember€that€particular€one.ÐÊ  ` x` x ÐÌà8  àà8` Ð Ð àÐ ` x` x ÐIn€addition€to€the€above€items,€Willis€testified€that€the€marble„top€console€and€both€pair€of€iron€gatesÐ …Õ  Ðwere€sold€at€the€Estate€auction.Ð n¾  ÐÌ2.€€On€January€18,€1999,€Ford€purchased€a€fox€and€hound€hunter€bronze€from€Unique€Antiques.€Ð @ ÐCPLA€check€#3717,€dated€January€18,€1999,€in€the€amount€of€$625.00€was€used€to€purchase€thisÐ )y Ðitem.€€Mr.€Willis€testified€that€this€item€was€sold€as€part€of€Fordððs€Estate.Ð b ÐÌ3.€€On€December€11,€1999,€Ford€purchased€the€following€items€from€Unique€Antiques:€(a)€two€(2)Ð ä4 Ðlarge€cut€class€vases,€(b)€two€(2)€marble€and€gilt€pedestals,€(c)€an€oriental€"jard."€and€pedestal,€andÐ Í Ð(d)€two€(2)€cut€glass€tapered€vases.€€Mr.€Willis€testified,€and€the€Unique€Antiques€invoice€notes,€thatÐ ¶ Ðthese€items€were€delivered€to€Fordððs€home€at€655€Raines€Rd.€€CPLA€check€#3672,€dated€DecemberÐ Ÿï Ð17,€1999,€in€the€amount€of€$2,425.00€was€used€to€purchase€these€items.€€Mr.€Willis€testified€thatÐ ˆØ Ðsome€of€these€items€were€sold€as€part€of€Fordððs€Estate€and€that€some€items,€such€as€the€marble€andÐ qÁ Ðgilt€pedestals€were€ð ðpulled€from€the€estateðð€because€they€were€ð ðproperty€of€some€of€the€heirs€of€theÐ Zª Ðestate.ððÐ C“ ÐÌ4.€€On€February€5,€2000,€Ford€purchased€two€(2)€marble„top€tables€and€a€Venetian€mirror€fromÐ e ÐUnique€Antiques.€€CPLA€check€#3722,€dated€February€22,€2000,€in€the€amount€of€$2,500.00€wasÐ þN Ðused€to€purchase€these€items.€€Although€pictured€in€the€Estate€auction€brochure,€Mr.€Willis€testifiedÐ ç 7 Ðthat€the€Venetian€mirror€was€pulled€from€the€sale.€€Concerning€the€marble„top€tables,€Mr.€WillisÐ Ð!   Ðtestified€that€there€were€ð ðquite€a€few€of€those€type€tables€in€the€sale,ðð€but€that€he€could€not€be€sureÐ ¹" ! Ðthat€these€particular€ones€were€sold€at€the€auction.€€€Ð ¢#ò" Ðò òÌà  à(b)€€òòOriental€Rugsó óÐ u%Å $ ÐóóÌà0  àSarkis€V.€Kish€is€self„employed€in€the€oriental€rug€business.€€Mr.€Kishððs€business€recordsÐH'˜"&(#(# Ðâ â(Stateððs€Exhibit€24)€evidence€the€following:Ð 1(#' Ð1.€€On€January€14,€1998,€Ford€purchased€a€Chinese€rug€from€Mr.€Kish€(Kish€Invoice€#4819).׃y×Ý ƒ#ÃÝòòÚ  Ú31Ú  ÚóóÝ  Ý×  ׀Р° Ðâ âCPLA€check€#3240,€dated€January€14,€1998,€in€the€amount€of€$950.00€was€used€to€purchase€this€rug.€Ð ™é ÐMr.€Kish€identified€this€Chinese€rug€as€one€of€the€items€pictured€in€the€Estate€auction€brochure.òòÐ ‚Ò ÐóóÌ2.€€On€February€28,€1998,€Ford€purchased€the€following€rugs€from€Mr.€Kish€(Kish€Invoice€#4840):Ð T¤ Ð(a)€two€(2)€Romanian€Serapi€rugs,€(b)€two€(2)€Ramanian€Gulshar€rugs,€and€(c)€a€Chinese€80€line€rug.€Ð =  ÐCPLA€check€#3284,€dated€February€28,€1998,€in€the€amount€of€$6,500€was€used€to€purchase€theseÐ & v Ðrugs.€€Mr.€Kish€testified,€and€the€invoice€notes,€that€these€items€were€delivered€to€the€Ford€home€onÐ  _ ÐRaines€Rd.€€Mr.€Kish€identified€at€least€one€of€the€Romanian€rugs€as€an€item€sold€at€the€EstateÐ ø H Ðauction.Ð á 1  ÐÌ3.€€On€March€19,€1998,€Ford€purchased€a€Romanian€rug€and€an€Indian€rug€from€Mr.€Kish€(KishÐ ³  ÐInvoice€#004).€€These€items€were€paid€for€with€CPLA€check€#€3308,€dated€March€19,€1998,€in€theÐ œì  Ðamount€of€$1,545.00.Ð …Õ  ÐÌ4.€€On€December€28,€1998,€Ford€purchased€two€(2)€additional€Indian€rugs€from€Mr.€Kish€(KishÐ W§  ÐInvoice€#384).€€These€rugs€were€paid€for€with€CPLA€check€#€3670,€dated€December€28,€1998,€inÐ @ Ðthe€amount€of€$1,800.00.Ð )y ÐÌà  àMr.€Kish€identified€at€least€four€(4)€of€these€rugs€as€items€pictured€in€the€Estate€auctionÐ ûK Ðbrochure.׃zQ×Ý ƒ#ÃÝòòÚ  Ú32Ú  ÚóóÝ  Ý×  ×òòÐ ä4 Ðò òóóÌ8.€€òòReceiver€and€Davidson€County€Chancery€Court€CaseÐ · Ðó óóóÌà0  àOn€August€16,€2002,€the€Attorney€General€for€the€State€of€Tennessee€filed€a€Complaint€ÐŠÚ(#(# Ðagainst€Childrenððs€Palace€Learning€Academy,€Inc.€in€the€Chancery€Court€of€Davidson€County.€€TheÐ sà ÐComplaint€alleges€grounds€for€judicial€dissolution,€primarily€misappropriation€and€waste€ofÐ \¬ Ðnonprofit€assets,€and€seeks€appointment€of€a€receiver.Ð E• ÐÌà  àOn€August€20,€2002,€the€Attorney€General€filed€a€ð ðMotion€for€Appointment€of€a€Receiver.ðð€Ð g ÐA€ð ðReceiver€Order,ðð€appointing€David€Weed€(ð ðReceiverðð)€receiver€over€CPLA€was€filed€on€AugustÐ  P Ð20,€2002€but€this€Order€was€held€in€abeyance€pursuant€to€a€joint€order€of€the€Davidson€CountyÐ é 9 ÐChancery€Court€and€the€Shelby€County€Probate€Court€entered€on€September€10,€2002.€€On€FebruaryÐ Ò!"  Ð3,€2002,€an€Order€was€entered€vacating€the€joint€order€holding€in€abeyance.€€Ð »" ! Ðâ âÓ  ÓÐ ¤#ô" ÐÓ  Óà  àCPLA€never€filed€an€Answer€to€the€Attorney€Generalððs€claim.׃{×Ý ƒ#ÃÝòòÚ  Ú33Ú  ÚóóÝ  Ý×  ×€€On€September€26,€2003,Ð ° Ðâ âthe€Davidson€County€Chancery€Court€entered€its€ð ðFinal€Order€of€Default€Judgment,€and€DecreeÐ ™é Ðof€Dissolution,ðð€which€reads,€in€pertinent€part,€as€follows:Ð ‚Ò ÐÓ  ÓÌà8  àà8` Ð Ð àà ¸ àThis€cause€was€set€on€the€docket€for€a€hearing€of€plaintiffððsÐ T¤ Ðð ðMotion€for€Default€Judgmentðð€against€defendant€Childrenððs€PalaceÐ =  ÐLearning€Academy€(CPLA),€a€nonprofit,€public€benefit€corporation.Ð& v` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThis€Court€FINDS€and€CONCLUDES€as€follows:Ðø H` x` x ÐÌà8  àà8` Ð Ð àà ¸ àNo€response€to€this€motion€was€filed€by€the€corporationÐ Ê   Ðpursuant€to€Local€Rule€ðð26.04(c).€However,€on€September€17,€2003,Ð ³  Ðthe€Estate€of€James€W.€Ford,€M.D.€filed€with€the€Western€SectionÐ œì  ÐCourt€of€Appeals€a€ð ðMotion€for€Review€and€Stay€of€All€ProceedingsÐ …Õ  Ðin€Davidson€County€Chancery€Court€Relating€to€Childrenððs€PalaceÐ n¾  ÐLearning€Academy.ðð€€That€motion€was€denied€by€the€court€of€appealsÐ W§  Ðon€the€day€it€was€filed.Ð@` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThis€Court€has€in€personam€jurisdiction€over€this€corporation.€Ð b ÐThis€Court€has€jurisdiction€over€the€subject€matter€of€this€lawsuitÐ ûK Ðpursuant€to€provisions€of€the€Tennessee€Nonprofit€Corporation€Act,Ð ä4 Ðparticularly€Tenn.€Code€Ann.€ðððð48„64„301(a)€(subject€matterÐ Í Ðjurisdiction)€and€302(a)€(venue).ж` x` x ÐÌà8  àà8` Ð Ð àà ¸ àThis€public€benefit€corporation€must€be€judicially€dissolvedÐ ˆØ Ðpursuant€to€Tenn.€Code€Ann.€ðððð48„64„301(a)(F)€because€it€is€noÐ qÁ Ðlonger€able€to€carry€out€its€purposes,€especially€since€it€has€noÐ Zª Ðeffective€corporate€governance.€€A€receiver€must€be€appointedÐ C“ Ðpursuant€to€Tenn.€Code€Ann.€ðððð48„64„303.Ð,|` x` x ÐÌà8  àà8` Ð Ð àà ¸ àNeither€this€Order€nor€the€Receiver€Order€entered€on€AugustÐ þN Ð20,€2002€is€intended€1)€to€adjudicate€the€Claim€filed€by€the€AttorneyÐ ç 7 ÐGeneral€on€behalf€of€the€corporation€and€the€public€interest€againstÐ Ð!   Ðthe€Estate€of€James€W.€Ford,€M.D.€to€recover€the€purported€corporateÐ ¹" ! Ðassets€of€CPLA,€or€2)€to€interfere€with€the€administration€of€thoseÐ ¢#ò" Ðassets€by€the€Probate€Court€of€Shelby€County.Ћ$Û#` x` x ÐÌà8  àà8` Ð Ð àà ¸ àACCORDINGLY,€IT€IS€ORDERED€that€the€AttorneyÐ ]&­!% ÐGeneralððs€motion€for€default€judgment€is€GRANTED.€€DefendantÐ F'–"& Ðâ âCPLA,€a€nonprofit€public€benefit€corporation,€is€hereby€judiciallyÐ /(#' Ðdissolved€pursuant€to€Tenn.€Code€Ann.€ðð48„64„304(a).€€Costs€shallÐ ° Ðbe€taxed€against€defendant.Йé` x` x Ðâ âÌà8  àà8` Ð Ð àà ¸ àIT€IS€FURTHER€ORDERED€that€David€S.€Weed€shallÐ k» Ðremain€as€Receiver€of€CPLA€pursuant€to€Tenn.€Code€Ann.€ðð48„64„Ð T¤ Ð304(b).€€He€shall€have€all€those€powers€prescribed€in€the€ReceiverÐ =  ÐOrder€entered€on€August€20,€2002€and€such€other€powers€as€this€courtÐ & v Ðdirects€and€the€law€allows.Ð _` x` x ÐÓ—QÓÌà  àThe€Estate€of€James€W.€Ford,€M.D.€and€the€Estate€of€James€W.€Ford,€M.D.€d/b/aÐ á 1  ÐChildrenððs€Palace€Learning€Academy,€Inc.€(ð ðDefendant„Appellantðð)€appealed€from€this€Order.Ð Ê   ÐDefendant„Appellant€filed€a€Motion€to€Dismiss€the€Appeal,€which€was€denied€by€this€Court.€Ð ³  ÐDefendant„Appellant€then€filed€a€renewal€of€the€motion€to€dismiss€the€appeal.€€In€the€alternative,Ð œì  ÐDefendant„Appellant€sought€to€file,€in€this€case,€its€brief€that€was€previously€filed€in€the€ShelbyÐ …Õ  ÐCounty€Probate€Court€caseòòóó.€€By€Order€of€December€31,€2003,€this€Court€allowed€Defendant„Ð n¾  ÐAppellant€to€enter€the€same€brief€in€both€cases.€€The€renewed€motion€to€dismiss€was€consideredÐ W§  Ðby€this€court€at€oral€argument.€€By€Order€filed€on€March€16,€2004,€this€Court€dismissed€theÐ @ Ðappeal€from€the€Chancery€Court€of€Davidson€County.Ð )y ÐÌà  àòòò òó óóóThe€Shelby€County€Probate€Court€entered€its€ð ðMemorandum€Opinion€and€OrderÐ ûK ÐPertaining€to€the€Claim€by€the€Attorney€General€on€Behalf€of€Childrenððs€Palace€LearningÐ ä4 ÐAcademy,€a€Tennessee€Nonprofit€Corporationðð€(the€ð ðFinal€Orderðð)€on€December€17,€2002.ò òó ó€Ð Í ÐBecause€of€the€complex€nature€of€this€case,€we€reproduce€the€trial€courtððs€Findings€of€Fact€andÐ ¶ ÐConclusions€of€Law€in€their€entirety€below:Ð Ÿï ÐÌà8  àà8` Ð Ð àà8¸ ` x` xàà8¸ ¸ àòòò òFINDINGS€OF€FACTó óóóÐqÁÈÈ Ðà8  àà8` Ð Ð àÐ ` x` x ÐÓ  Óà8  àà8` Ð Ð àà ¸ àThe€Courtððs€findings€of€fact€are€as€follows:ÐD”` x` x Ðà8  àà8` Ð Ð àÐ ` x` x Ðà8  àà8` Ð Ð àà ¸ à6.€€On€February€28,€1994,€James€W.€Ford,€M.D.,€Vernita€G.Ð f ÐDuncan,€M.D.,€and€Stanley€J.€Blue€executed€the€charter€(Articles€ofÐ ÿO ÐIncorporation)€of€Childrenððs€Palace€Learning€Academy,€which€is€partÐ è 8 Ðof€Exhibit€1.€€Also€as€part€of€Exhibit€1€are€the€ð ðArticles€ofÐ Ñ!!  ÐAmendment€to€the€Charter€of€Childrenððs€Palace€Learning€Academy,ððÐ º" ! Ðthe€ð ðBylaws,ðð€a€ð ðNondiscriminatory€Policy,ðð€and€a€paragraphÐ £#ó" Ðrequiring€that€in€the€event€of€dissolution€all€assets€would€go€to€aÐ Œ$Ü# Ð501(c)(3)€corporation.€€All€of€this€was€sent€to€the€Secretary€of€StateÐ u%Å $ Ðof€the€State€of€Tennessee€and€stamped€received€on€March€21,€1994.€Ð ^&®!% ÐIt€was€all€returned€to€the€sender€for€insufficient€funds,€wasÐ G'—"& Ðresubmitted,€and€filed€of€public€record€April€19,€1994.Ð0(€#'` x` x Ðà8  àà8` Ð Ð àÐ ` x` x Ðà8  àà8` Ð Ð àà ¸ à7.€€There€is€no€indication€in€the€record€as€to€who€preparedÐ *R%) Ðthese€documents€or€whether€the€preparers€had€professional€help.€€TheÐ ë*;&* Ðfact€is€that€the€charter,€the€amendment€to€the€charter,€bylaws,Ð Ô+$'+ Ðnondiscriminatory€policy,€and€the€paragraph€relating€to€dissolutionÐ ° Ðwere€filed€with€the€Secretary€of€State.Йé` x` x Ðà8  àà8` Ð Ð àÐ ` x` x Ðà8  àà8` Ð Ð àà ¸ à8.€€On€March€10,€1994€ð!ð€after€the€date€of€execution€of€theÐ k» Ðcharter€on€February€28,€1994€but€before€its€initial€receipt€by€theÐ T¤ ÐSecretary€of€State€on€March€21,€1994€ð!ð€a€bank€account€was€openedÐ =  Ðat€Tri„State€Bank.€€This€account€is€clearly€designated€as€a€businessÐ & v Ðcorporation€account€with€the€authorized€signatories€being€James€W.Ð  _ ÐFord,€Stanley€J.€Blue,€and€Vernita€Duncan.€€Mr.€Blue€signed€theÐ ø H Ðdocument€that€says€James€W.€Ford,€Stanley€J.€Blue€and€VernitaÐ á 1  ÐDuncan€were€the€officers€of€the€corporation,€and€that€the€corporationÐ Ê   Ðhad€the€EIN€(Employer€Identification€Number)€of€62„1558762.€€Mr.Ð ³  ÐBlue€also€signed€a€document€styled€ð ðSupplemental€Information€onÐ œì  ÐDepositor.ðð€€All€of€these€Tri„State€account€documents€are€part€ofÐ …Õ  ÐExhibit€5.Ðn¾ ` x` x Ðà8  àà8` Ð Ð àÐ ` x` x Ðà8  àà8` Ð Ð àà ¸ à9.€€Neither€party€has€brought€to€the€Courtððs€attention€a€copyÐ @ Ðof€the€SS„4,€which€is€the€application€filed€with€the€Internal€RevenueÐ )y ÐService