Free Other Notice - District Court of Arizona - Arizona

UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Lawrence J. Warfield, Receiver, Plaintiff, v. Michael Alaniz, et al. Defendants. ) Cause No. CV 03-2390 PHX JAT ) ) ) PLAINTIFF'S PROPOSED ) FORM OF VERDICT ) ) )

The jury must [unanimously] agree on the answers to the following questions: 1. Breach of Fiduciary Duty 1.1 For each defendant below, do you find by a preponderance of the evidence

that the defendant owed a fiduciary duty to the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 1.1, above, please go to Question 1.2. If you answered "No" for every defendant in Question 1.1, above, please go to Question 2.1.

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1.2

For each defendant you answered "Yes" in Question 1.1, above, do you

find by a preponderance of the evidence that the defendant breached the fiduciary duty owed to the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 1.2, above, please go to Question 1.3. If you answered "No" for every defendant in Question 1.2, above, please go to Question 2.1.

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1.3

For each defendant you answered "Yes" in Question 1.2, above, do you

find by a preponderance of the evidence that the defendant's breach of fiduciary duty caused injury to the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 1.3, above, please go to Question 1.4. If you answered "No" for every defendant in Question 1.3, above, please go to Question 2.1.

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1.4

For each defendant you answered "Yes" in Question 1.3, above, what is the

amount of damages caused by the defendants' breach? $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 2.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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2. Constructive Fraud 2.1 For each defendant below, do you find by clear and convincing evidence

that a relationship of trust and confidence existed between the defendant the person(s) to whom he sold Mid-America Charitable Gift Annuities so that the person placed peculiar reliance in the trustworthiness of the defendant? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 2.1, above, please go to Question 2.2. If you answered "No" for every defendant in Question 2.1, above, please go to Question 3.1.

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2.2

For each defendant you answered "Yes" in Question 2.1, above, do you

find by clear and convincing evidence that the defendant failed to make a full and truthful disclosure of all material facts related to the purchase of a Mid-America Annuity? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 2.2, above, please go to Question 2.3. If you answered "No" for every defendant in Question 2.2, above, please go to Question 3.1.

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2.3

For each defendant you answered "Yes" in Question 2.2, above, state the amount

of damages that should be awarded against the defendant. $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 3.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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3. Negligence 3.1 For each defendant below, do you find by a preponderance of the evidence

that the defendant owed a duty to act non-negligently with regard the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____No. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 3.1, above, please go to Question 3.2. If you answered "No" for every defendant in Question 3.1, above, please go to Question 4.1.

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3.2

For each defendant you answered "Yes" in Question 3.1, above, do you

find by a preponderance of the evidence that the defendant breached the duty owed to the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 3.2, above, please go to Question 3.3. If you answered "No" for every defendant in Question 3.2, above, please go to Question 4.1.

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3.3

For each defendant you answered "Yes" in Question 3.2, above, do you

find by a preponderance of the evidence that the defendant's breach of duty caused injury to the person(s) to whom he sold Mid-America Charitable Gift Annuities? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 3.3, above, please go to Question 3.4. If you answered "No" for every defendant in Question 3.3, above, please go to Question 4.1.

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3.4

For each defendant you answered "Yes" in Question 3.3, above, what is the

amount of damages caused by the defendants' breach? $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 4.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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4. Securities Fraud (Federal) 4.1 For each defendant below, do you find by a preponderance of the evidence

that the defendant violated a federal securities laws? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 4.1, above, please go to Question 4.2. If you answered "No" for every defendant in Question 4.1, above, please go to Question 5.1.

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4.2

For each defendant you answered "Yes" in Question 5.1, above, what is the

amount of damages resulting from the defendant's violation of federal securities law? $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 5.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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5. Securities Fraud (State) 5.1 For each defendant below, do you find by a preponderance of the evidence

that the defendant violated a state securities law? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 5.1, above, please go to Question 5.2. If you answered "No" for every defendant in Question 5.1, above, please go to Question 6.1.

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5.2

For each defendant you answered "Yes" in Question 5.1, above, what is the

amount of damages resulting from the defendant's violation of state securities law? $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 6.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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6. Fraudulent Transfer 6.1 For each defendant below, do you find by clear and satisfactory evidence

that the Plaintiff determined the fraudulent nature of the transfers to the defendant within one year prior to filing this lawsuit on December 3, 2003? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

Please go to Question 6.2.

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6.2

For each defendant below, do you find that the defendant failed to prove by

clear and satisfactory evidence that he received in good faith the monies transferred to him from Mid-America Foundation, Inc. and/or Mid-America Financial Group, Inc.? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

Please go to Question 6.3.

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6.3

For each defendant below, do you find that the defendant failed to prove by

clear and satisfactory evidence that the he exchanged reasonably equivalent value for the monies transferred to him from Mid-America Foundation, Inc. and/or Mid-America Financial Group, Inc.? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in either Question 6.2 or 6.3, above, please go to Question 6.4. If you answered "No" for every defendant in both Questions 6.2 and 6.3, above, please skip 6.4 and go to Question 6.5.

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6.4

For each defendant you answered "Yes" in Question 6.1 and "Yes" either

Question 6.2 or 6.3, above, what is the total dollar amount fraudulently transferred to the defendant. $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

Please go to Question No. 6.5.

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6.5

For each defendant you answered "No" in Question 6.1 and "Yes" either Question

6.2 or 6.3, above, what is the total dollar amount fraudulently transferred to the defendant within 4 years prior to December 3, 2003? $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 7.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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7. Conversion 7.1 For each defendant below, do you find by a preponderance of the evidence

that the defendant converted property of a Mid-America Annuitant by wrongfully exerting dominion or control such property in denial of or inconsistent with the annuitant's rights in such property? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 7.1, above, please go to Question 7.2. If you answered "No" for every defendant in Question 7.1, above, please go to Question 8.1.

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7.2

For each defendant you answered "Yes" in Question 7.1, above, what is the

total dollar amount converted by the defendant. $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please go to Question 8.1. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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8. Equitable Disgorgement 8.1 For each defendant below, do you find that the defendant has been unjustly

enriched by monies transferred to him from Mid-America Foundation, Inc. and/or MidAmerica Financial Group, Inc.? ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____ Yes. ____No. ____No. ____No. ____No. ____No. ____No. ____No. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

If you answered "Yes" for at least one defendant in Question 8.1, above, please go to Question 8.2. If you answered "No" for every defendant in Question 8.1, above, please stop.

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8.2

For each defendant you answered "Yes" in Question 8.1, above, what is the

total dollar amount by which the defendant was unjustly enriched. $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ $_____________ Please stop. Leonard Bestgen and Elizabeth Bestgen Robert Carroll Rudy Crosswell and Mary Crosswell Charles Davis Dwight Lankford Paul Richard Patrick Wehrly and Andrea Wehrly

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