Opinion ID: 145469
Heading Depth: 2
Heading Rank: 1

Heading: Hall's Fraudulent Scheme Originates in Texas

Text: In February 2003, Hall asked his real estate agent, Heidi Jenkins, to register two trusts, the Kingsley Trust and the Axiom Trust, in Texas. Jenkins registered the two trusts on the same date, at the same courthouse, and with the same business address. Jenkins also opened a bank account for the Axiom Trust at Hall's request. Hall hired Jenkins to serve as the Axiom Trust's trustee, and Jenkins had authority to sign for deposits and withdrawals on the bank account. Hall began soliciting investors for the Axiom Trust, which Hall falsely trumpeted as a large repository for real estate assets. Hall invited potential investors to purchase $75,000 units of beneficial interest in the Axiom Trust. Hall reasoned that, if Warren Buffett was charging $75,000 per share for his stock, [Hall] could offer [shares for] that amount. Hall told prospective investors the face value of the Axiom Trust's shares was guaranteed and the shares would earn high rates of interest. Hall bragged no one had ever lost money investing with him. In the coming years, Hall repeatedly misrepresented himself to potential investors as a wealthy and highly successful real estate investor. Hall bragged he knew Jack Nicklaus and investment bankers at Bear Stearns. [3] Hall claimed or implied he built or negotiated to help buy or build golf courses, churches, the New York Jets' new stadium, the Bellagio Casino in Las Vegas, and properties all along the Hurricane Katrina-ravaged Gulf Coast. Hall also boasted about his experience as a former CIA assassin. Hall convinced J.B., T.J., and others to invest in the Axiom Trust. [4] J.B. traded Hall a 10,080 square foot chateau for twenty-seven shares. J.B. was eager to sell the home because his eldest son had recently died and it was painful for his family to continue to live there. T.J. gave Hall $65,000 in exchange for one share. T.J. was trying to help find investors to help him build a church, and Hall told T.J. he would be willing to build the church if T.J. helped Hall free up funds to send to someone in France. Hall frittered away all of the Axiom Trust's assets. He purchased fancy cars and golf lessons, hired personal attorneys, and lived a grand lifestyle. Hall lavished gifts on his wife, son, and girlfriend. T.J. asked Hall many times to return his money. Hall repeatedly rebuffed T.J.'s efforts over the course of four years. In 2006, Hall finally admitted to T.J. that the Axiom Trust had gone away but said Hall would be able to transfer [T.J.'s] investment in some way that [T.J.] would get paid [as much as $125,000] through [the] Kingsley Trust. Hall referred T.J. to the Kingsley Trust's website, which T.J. later viewed.