Sunday, September 10, 2017

3 Exhibit 11 - Note to Doug Thorburn March 27, 1997


Updates on necessary tax information.


March 27,  1997

Dear Doug, 

On the IMS stock cost, I have been looking over all of the files that I have been able to assemble and my check register.  But I am missing two registers from late 1993, the two that I told you were destroyed in the 1994 earthquake.  They were most recent then and were to go up to Santa Barbara with the photographs from the Foundation as soon as we got those back from the lab.  
Craig’s boxes had lots of material about IMS, but nothing about the stock except some letters.  I called the company and the number is not private and they are not in the area.  I assume that they have folded. That looked like a distinct possibility when we were last in touch with them.  My best guess is that we paid $1.00 a share.  I hope that this will be good enough.  I will keep looking as best I can.
Thanks for keeping on top of this. 

3 Exhibit 10 - Letter to Dr. Franklin on the tax crisis



March 12, 1997


To:  Dr. Franklin


From:  Melinda Pillsbury-Foster


Dear Dr. Franklin,

            I really did hope it would be unnecessary to contact you about this, but since I find it is unavoidable it is also best that I tell you as much of the story as is relevant. 
            Craig has not filed taxes, either state or federal for 25 years.  I found this just about six weeks ago.  This was a considerable shock to me since, as part of our marriage agreement he promised to file and I had taken him to the accountant I used and had paid for six years of his past returns.  I found the returns at the bottom of box nine while cleaning out his office.  You may or may not be aware that Craig simple throws every thing in boxes.  15 boxes burned in the barn fire in 1990 but those had come from North Carolina without being opened. 
            It took me four weeks working 18 hours a day to organize the stuff.  I found jury summons, traffic tickets and everything imaginable - all unopened or opened and unanswered.  It explained many things that I had been worried about for a long time. 
            Evidently, Craig’s pay has been garnished since 1987.  He simply lied to me about the extreme variation in his pay.  But, of course, he lied about lots of other things, too. 
            I spent the small inheritance from my parents, and Morgan’s, too paying debts that had piled up.  I sold family heirlooms.  I thought for a while Craig had a drinking problem or was gambling, but no, there was no evidence of that. 
            Then, last summer Craig told me that he was having an audit problem and they were levying his pay check.  This caused a lot more problems.  I was anxious and bewildered.  Craig told me he hired a law and accounting firm, but of course, he could never give them information because he wouldn’t go through the boxes. 
            After he came down with diabetes I insisted on cleaning it up.  I might have done so earlier but when I did he battered me.  
            Craig is now seeing a therapist, I hope he keeps at it but am not hopeful.  The reason I am telling you this is that I need information of the bonds you gave Craig so I can get this to the tax accountant.  I knew if I asked you would eventually find out the story and so am sparing both of us that agony.  You would have asked Craig, and he would have lied, evaded and blamed me.  I blacked out Monday and when I regained consciousness my left arm was numb.  Our physician wants me to go to the hospital but I won’t until I know that there is money to pay the bills, most especially the kids college, this mortgage, the property taxes and other bills.  All very overdue. 
            I am a believer in honesty.   It is my experience that the lack of candor between individuals causes more problems than anything else.   I have never approved of the way Craig and his siblings deal with each other or you.  You may prefer to believe that I am lying.  Therefore, I am giving you the name and number of our tax accountant, our physician and therapist.  If you want to call them, feel free.  I will ask them to answer your questions.  This is not because I think you have a right to know, you don’t.  Craig and especially I have a right to privacy and we are not asking you for a loan.  It is simply to ensure that if Craig attempts to lie to you there will be an objective means for checking.  I have nothing to hide. 
             I blacked out after talking to the Franchise Tax Board.  I thought we would be able to pay these expenses by selling the house on Burnet - but of course, they had several liens on it, which Craig had neglected to tell me.   He was in Japan last week; this week he is in Boston. 
            I convinced the IRS to drop their lien; I convinced the Franchise Tax Board to drop one more lien, but I need the 1994 tax return to get them to release the money, hence, this letter.  Now that I have told you, not everything, but enough I hope to convince you of the need to expedite the flow of information I will close. 
            I am truly sorry if this upset you.  I know it will upset Craig, but somehow am less concerned than I once was about his feelings. 

Doug Thorburn, Acountant - (818) 350-0985

Dr. Michael Marquart - (805) 966-2294

Dr. Danson  - (805) 682-1934


3 Exhibit 9 - State Franchise Tax Board additional documentation

From:  Melinda Franklin

To Leticia Fernandez

I will fax documents next, some of them may not want to go through.




House in S.B.

Here is the payment coupon for January.  It has not been paid since then.  

3 X 4,080.21



Here Is the coupon for the Cabin.  It has not been paid since November.

4 x $450.00


Property Taxes S.B.


Anacapa
Due: Nov. 1, 1996 Delinquent - $2,501.01.   Pay $2,761.11
Due Dec.. 10, 1997 Delinquent - $2,501.01.  Pay $2,761.11 

Supplemental Taxes (on School Bonds)

Due:  Jan 23, 1997  Delinquent Feb. 28, 1997 - $528.13
$590.96 if delinquent
Due:  Jan 23, 1997  Delinquent June 30, 1997 - $528.13
$590.96 if delinquent

Other Loans:  

Household Finance
Account No. 219202-25-861958-3  Bal. $11,957.79 Due Feb. 19 - (Four months overdue)
Min. $982.00

Cabin

Due:  Nov  1, 1996  Delinquent Dec. 10, 1996 - $461.45
Penalty: $507.59 if delinquent
Due:  Feb 1, 1997  Delinquent April 10, 1997 - $461.45
Penalty: $507.59 if delinquent


Tax Attornies and Accountants

Brown & Associates - $7,500.00


Thorburn Accountant - $1,000


3 Exhibit 7 - State Franchise Tax Board Lien - March 6, 1997



3 Exhibit 8 - Note to Leticia Fernandez (Sent March 6, 1997)






To:  Leticia Fernandez

From:  Melinda Franklin


I also must pay my daughter, Dawn’s tuition for the coming quarter.  She pays this directly from a check I send her so I don’t have a bill.  but I send her $2,500.

My daughter Ayn is a senior at Hillsdale in Michigan and needs $800.00 to pay for expenses I have deferred paying since before Christmas

Our Daughter, Scott, is a junior at Sacramento State and we owe him $2,000 for his tuition and board.  


I looked at my credit card bills and to make minimums will be $5,000. (this includes business expenses for the business I am starting)  

3 Exhibit 6 - February 6, 1997 - Letter to World Savings - Request for 1098s



February 6, 1997


World Savings
Customer Service Research
PO Box 659558
San Antonio, Texas 78265-9558

Loan No.: 4909453

RE:  Copies of form 1098 for years 1988 - end of loan. 


Dear Customer Research,


            I am unable to find the 1098 forms on our now repaid loan from World Savings.  I understand that you will provide copies of these forms for $5.00 a year.  Since I need years 1988 - the end of the loan please send them all.  I enclose a check for $45.00 to cover the cost of nine years worth of forms. 
            The location of the property is:  9547 Burnet Street
                                                               North Hills, CA 91343

            The two names listed as Payers/Borrowers are myself, Melinda Pillsbury-Foster and my husband, Craig Franklin.  If there are any questions I may be reached at our new home in Santa Barbara, 2028 Anacapa St. CA 93105.  My phone number is (805) 569-0421. 
            Thank you in advance for your attention in this matter. 



Sincerely,



3 Exhibit 5 - February 4, 1997 - The flood of documents to Doug Thorburn starts by Fax









  (image has been removed, it was a print of a flower taken by Arthur C Pillsbury around 1912)



                                                 



FAX Transmission

From:  Melinda Pillsbury-Foster
           2028 Anacapa Street
            Santa Barbara, California 93105
 
            Tel:  (805) 569-0421
            Fax:  (805) 682-4444

To:      Doug Thorburn
            Tel:  (818) 360-0985
            Fax:  (818)363-3111

Contents:

Tax material for Craig Franklin
           





3 Exhibit 4 IRS - Letter to the State Franchise Tax Board Explaining Craig's psychological problems





February 4, 1997




Franchise Tax Board

Regarding taxpayer ID No. 554-68-xxxx



Dear Sir or Madame,


            I am writing for my husband, Craig Franklin, who has been a non-filer for many years.  Although we have been married for ten years I was not aware that Craig was not filing.  In fact, I believed that he was and has initiated the preparation of tax returns for 83 - 87.  These were mailed off yesterday and should have arrived (I hope) before this letter. 
            Although we many not be able to file all past returns before February 20th the necessary documents are now in the hands of an accountant and all returns will be filed as soon as possible.  I have now taken over this responsibility and future retirns will be filed promptly.  Would it be possible you to to give me some more time to get in years 1988 - 1995?  Craig has badly mangled our personal finances as well, and I can’t afford any help. 
            Craig is now under the care of a psychologist who is helping him sort out the source of this deep-seated phobia regarding all paper work.  I have personally sorted through 12 cartons of papers dating from the late 60’s.  I have been working day and night on this for over a week.  It was in the course of this excavation that I discovered the never-mailed tax returns at the bottom of carton 9 (Saturday night around 11:00 p.m.)   In the cartons were unopened letters from family members, traffic tickets, some over 20 years old, and an astonishing array of stuff that I will not bore you with.  I have no idea how it was possible for him to deceive me, his birth family, and others.  The boxes were in his office at work.  I believed they contained books and old business correspondence he was reluctant to part with.  Craig is a terrible pack-rat, but the boxes at home were very different.   They contained advertising, offers from book clubs, clippings for magazines (some now out of business)  and other papers.   I did find some things relevant to our personal finances that I needed, so those boxes must be finished, too.  This isn’tany fun, believe me.  They filled half the garage.  (Now a quarter!) 
            Craig has just been diagnosed with adult on-set diabetes as well and this has necessitated many changes for him  - including my going into the office to organize his work. 
            I am simply appalled to discover what has been going on behind my back.  Please except my apologies and assurances that things will be different in the future.
            The accountant we are using has been in business for along time and I know from friends he is very competent.  I am taking him information as fast as I can assemble it. 
            If you can, in any way, help me please let me know.  Thank you in advance for your kind attention in this matter. 



Sincerely, 

             

3 Exhibit - 3 February 3, 1997 - Letter to Ron Taylor Explaining Craig's psychological problems



February 3. 1997

Ron Taylor
Servicing Center
UC Lending



RE: Loan # 038808828016


Dear Mr. Taylor,


            Thank you for your expression of concern.  In fact, my husband, Craig Franklin, came down with adult on-set diabetes in mid January and this, coupled with a sequence of other family health problems, has caused us some short term problems with keeping our commitments.  Craig was in denial for several weeks after being informed by  our physician and has only in this last week been able to deal with both the diabetes, medication, and other necessary changes. 
            We both deeply regret this and are anxious to come to a keep our obligations - which it appears will be possible in just a few weeks due to assistance from family, friends and the liquidation of some assets, stock and bonds.  I will be able to commit to a schedule of payments to bring us up to date by March 15th.  I am the second owner on the two mortgages you hold and will now be handling this matter. 
            The locations of the two properties in question are:

            2028 Anacapa St.
            Santa Barbara, CA 93105

            9547 Burnet Ave.
            North Hills, CA 91343

            Thank you again for you very kind inquiry.  I am sorry that I have been unable to respond earlier but your letter did not reach my hands until last Saturday. 


Sincerely,


3 Exhibit 2 - February 3, 1997 - Letter to Hilda

Melinda Pillsbury-Foster
2028 Anacapa Street
Santa Barbara, CA 93105



February 3, 1997



Dear Hilda,

            Here is the counter-offer on the house.  I also need three title searches and would appreciate your running them for me.  The properties are:


            1.  9547 Burnet Ave.
                  North Hills, CA 93105

                        Last documents in file as well

            2.   2028 Anacapa St.
                  Santa Barbara, CA 93105

                         Last documents in file as well

            3.   Lot 82 of Tract 119, County of Tulare, CA  recorded in Book 19, Page 146 of                           Maps.

                        Last documents in file as well

            Thanks in advance for your kind attention in this matter. 


Sincerely,



Melinda