Opinion ID: 2596761
Heading Depth: 1
Heading Rank: 5

Heading: Vreeken's part in the Bank of Idaho's assignment of the LPI loan constituted wrongful conduct.

Text: Vreeken also argues that the district court erred by finding that his part in Christianne's procurement of the Bank of Idaho's interest in the LPI loan constituted wrongful conduct. Vreeken argues the assignment of interest from the Bank of Idaho to Christianne was merely an arms-length transaction, and that Vreeken advanced Christianne the funds in order to balance out gifts amongst his children. However, the evidence in the record demonstrates otherwise. First, Vreeken testified during his deposition that he provided Christianne with the funds used to pay off LPI's Bank of Idaho loan and that he asked her to apply the funds toward procuring an assignment of the bank's interest. In addition, Melanie Harris, a former controller for LPI, testified that: (1) the transfer of assets from LPI to Telford, Christianne's company, was for Christianne's satisfaction of the Bank of Idaho loan; (2) any outstanding obligations due from LPI to Gergbroeders or Lockwood were not reduced on LPI's books as a result of the transfer; (3) the assets transferred constituted virtually all of LPI's capital assets with value and the transfer consequently reduced LPI's balance sheet to zero; (4) all the assets transferred were shown on LPI's books and records as assets owned by LPI, and (5) the amount due on the Bank of Idaho debt was reduced on LPI's books. Ms. Harris also testified that all of her discussions involving Telford, with respect to the assets transfer and the ongoing business operations of the company, were with Vreeken. Lorna Schubert, a former employee of LPI who also testified during trial, verified that the asset transfer was conducted in the manner described by Ms. Harris. Furthermore, Thomas Gold testified that Christianne admitted to him during a phone conversation that when she purchased the Bank of Idaho debt, the money was from her father, she signed the documents without knowing what they were because her father told her to, and she did not want any part of the transaction. Therefore, we find that there is substantial, competent evidence to support the district court's finding that Vreeken's part in procuring Christianne's assignment of the Bank of Idaho's interest in the LPI loan constituted wrongful conduct. As such, we affirm the district court's finding.