THE MEDIA VOICE THAT WRITES WHAT EVERYONE IS THINKING BUT IS TOO SCARED TO SAY HAVE BENDERSONS DEFRAUDED UNITED STATES FEDERAL GOVERNMENT OUT OF HUNDREDS OF MILLIONS OF DOLLARS IN TAXES? JON SUSCE 8/14/14 According to answers to questions by Hugh Culverhouse Jr. attorneys in a deposition of David Baldauf, who has been the general counsel for Benderson Development since 1977, it appears the Bendersons could owe the United States Federal government hundreds of millions of dollars in back taxes. (SEE ENCLOSED PDF FILE). The Bendersons moved the multimillion Benderson Development Co.s headquarters from Buffalo, N.Y., to southern Manatee County in 2004 becoming one of the regions largest landowners and major multimillion dollar politically connected developers in the Manatee/Sarasota County area. Developments include the $310 million Taubman/Benderson Mall on the University Blvd/I-75 Corridor. Baldauf was being deposed by Culverhouse attorneys in a multimillion dollar law suit Culverhouse has filed against, among others Randy Benderson, Henry Rodriquez and former Sarasota County Administrator Jim Ley. BALDAUF OVERSEES ALL BENDERSON DEVELOPMENT LEGAL ACTIVITIES Baldauf since 1977 has overseen all of Benderson Development legal activities. Those legal activities include legal leasing, which involve attorneys that negotiate leases. Those attorneys include one attorney in Buffalo and one attorney in Sarasota. There is one title company in Florida and one in New York, that along with the Benderson Development tax department, Baldauf oversees. Under sworn testimony, Baldauf states that he has been designated by Randy Benderson to be the manager of the various VOTT (Villages of the Trail) properties involved with the EEZ Project in Osprey, which is the project that is the basis of the Culverhouse law suit against Benderson, Rodriquez and Ley. On further questioning Baldauf states he understands as manager that he shall have the exclusive right to manage and make all decisions on VOTT A LLC (properties involved with the EEZ Project). In addition, Baldauf understands that, The manager may delegate prescribed functions to any employee, agent, or consultant. BENDERSON CONTROLS ALL BENDERSON DEVELOPMENT ENTITIES Baldauf when asked, whom did you delegate any duties, and what were those duties, Baldauf answered: Theres a general delegation for pretty much all of our entities to Randall Benderson to act as agent of these activities. When asked if this was a written or oral delegation, Baldauf answered that it was oral. When asked when this delegation was first made with numerous properties involved with Benderson Development projects, Baldauf answered: The first time I did it was the late 70s, early 80s. In addition, when Baldauf was asked what was the delegation of those duties turned over to Benderson, Baldauf answered, I would say everything. when asked why Benderson, if he is making all the decisions on the properties why not be designated manager of properties, Baldauf answered, tax purposes. Baldauf then explained the reason that since Nathan Benderson established a grantor trust in 1985 and Randy Benderson established a grantor trust in 1995, for federal estate tax purposes, the Bendersons cannot be trustees of the trusts. If the Bendersons interests are at stake and are viewed as advising and guiding the directions of the trust investment, they cannot act directly as trustees. BALDAUF MANAGES OVER 900 BENDERSON CONTROLLED LLC What is interesting about the questioning of Baldauf concerning VOTT A in connection with the EEZ Project in Osprey is how it exemplifies other Benderson Projects Baldauf manages, which is over 900. For example, when Baldauf was asked who owns Victoria Estates LLC, which is the member of VOTT A, he was unable to answer who the owners were beneficially or otherwise. Baldauf was unable to answer even though he was the manager of record of Victoria Estates LLC. One of the reasons Baldauf might be unable to ascertain who is financially involved with the LLC he manages is that he signs documents in essence put before him by Benderson employees like attorney Alicia Gayton without knowing who is involved. For example in answer to a question posed by a Culverhouse attorney of his involvement with various Benderson LLC in Florida, Baldauf answered any documents he was sent to him by Gayton that had a x on them, he would sign it. VERY LITTLE OWNED BY BENDERSON DIRECTLY When asked if Randy Benderson was one of the owners of Victoria LLC, Baldauf stated he doubted that Benderson individually would be the owner. Baldauf stated, Very little is owned directly by Randy Benderson due to Estate Planning. The question that needs to be answered is who actually owns the over 900 LLC that are involved with various Benderson projects and who actually pays the estate taxes on these numerous properties. (SEE ENCLOSED PDF FILE) BENDERSON FAMILY MEMBERS FAMILY LIMITED PARTNERSHIPS Another important question that needs to be answered is who are the principals of these various LLC managed by Baldauf, but controlled by Randy Benderson and his late father, Nate Benderson. Have the Bendersons over the years been involved in gifts to various family members of these various LLC/properties and become part of Family Limited Partnerships. The family limited partnership (FLP) is the ice cream sundae of estate planning strategies. It collects a mound of mouth-watering ingredients (assets) into one bowl that satisfies any invited to taste it. The recipe: Your client, as general partner in a limited partnership, gives assets away as limited partnership interests to heirs. Heirs dont own the actual assets, so they cant do anything with them. Creditors likewise have trouble penetrating the partnership structure. Your client also benefits from reducing by 20 percent, 30 percent or even more the value of FLP assets for estate tax purposes. Its like a chocolate sundae--with a cherry on top. Family limited partnerships have become the estate planning tactic du jour, says Lewis Walker of Walker Capital Management/IFG. Theyre great for clients with estates of several million who have significant private business interests or real estate they dont ever want to sell. Its also easy to gift partnership interests. BENDERSONS DONT SELL REAL ESTATE Baldauf gives a clear indication that the Benderson have avoided paying their required taxes by using Family Limited Partnerships when he states in his deposition, The Benderson family of companies dont sell real estate. JACK ROSE TAX DEFERRED EXCHANGES/1031 EXCHANGES Baldauf gives another reason for the Benderson not selling property is what is called tax-deferred exchanges or 1031 Exchanges. 1031 exchanges are a great wealth building tool, said Jack Rose, Chief Strategist at Breakwater Equity partners. Commercial property investors who continually perform 1031 exchanges through their lives will benefit from significant cash flow and net worth increases, much more so than a real estate investor that chooses to sell and pay taxes each time a sale occurs. In theory, one could exchange into numerous investment properties over the years and pass those investments on to their children at the time of their passing. At that time, their children could realize a step-up in the cost basis of all of those investments to current fair market value, essentially eliminating the tax burden altogether. Did the Bendersons use this technique to avoid paying taxes when they sold property in New York and bought property in Florida? WHERE ESTATE TAXES ASSESSED AT NATE BENDERSONS DEATH Another issue that needs to be resolved in statements made by Baldauf in his deposition is that if Nate Benderson did own the millions of dollars in property that according to Baldauf said he controlled, were estate taxes assessed to those properties at his death. For example, if I give you title to my car, but I keep the keys and continue driving the car every day.....then I have NOT made a gift of the car and when I die, the car is part of my estate and I owe estate tax on the value of car....including estate taxes in New York where Benderson owns 40% of their property. QUESTIONS NEED TO BE ANSWERED The deposition given by Bendersons general counsel since 1977, concerning the multimillion dollar law suit Culverhouse has filed against Randy Benderson, Henry Rodriquez and Jim Ley raises serious questions concerning Benderson tax issues, which need to be answered. For example, did Benderson gifted all his interests in his properties, but were the gifts a sham? Did Benderson gave title to properties to save estate taxes, but he didnt give up possession or control? In addition the Baldauf deposition gives a clear indication in Bendersons representation to the IRS that he doesnt own any of the Benderson properties, which includes the Mall. Also the Benderson attorney made a false presentation to the Sarasota County Commissioners that Benderson was the manager of VOTT A, B, C and D in the proposed EEZ Project in Osprey. GET A FREE EMAIL SUBSCRIPTION FOR THE SARASOTA PHOENIX: The Sarasota Phoenix News Paper 941-202-2270 sqrsarasotaphoenix@gmail Jon Susce
Posted on: Sun, 17 Aug 2014 03:11:52 +0000
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