Sandra Eve Kardos
CERTIFIED PUBLIC ACCOUNTANT

Letter sent to all Partners in TFP Partnerships sent 9-98

Almost 20 years ago you invested in what seemed to be an excellent idea, a Government Security Straddle. That began a long-lasting nightmare and financial disaster. We were there to help you then and we are still here to help you now.

We need your help now

As you know we formed a group, including yourself, and did battle with the promoter, his attorneys, the IRS, and the FTB.

We told you when it started the best we could do is to mitigate the damages of added taxes and penalties claimed by the IRS and save the thousands of dollars that the promoter’s attorneys (Robert Martin and Donald Fields) were trying to charge you. John Disterdick, the promoter, gave away about $600,000 of defense money that you contributed to these attorneys. All that money disappeared down a rat hole.

We sued Disterdick and made a full policy limit demand on his insurance carrier. Then Disterdick’s current attorney, Fred Rucker, agreed to settle for his insurance coverage only if I would pay off an $80,000 bill and retain him to continue litigating against Sandia (the dealer).

Having no choice, as we had run out of funds from the partners and Sandra Kardos CPA had advanced over $300,000 in direct costs we agreed. Rucker represented our group from 1989 to 1991 and we paid him over $800,000.

In 1992 after seeing virtually nothing for the money spent with Rucker, realizing the final defendant in the case had nothing and considering the fraud allegations against the Alliance Attorneys, who were indicated on 4-24-90 by the Grand Jury, which included Rucker, I terminated Fred Rucker.

The Alliance attorneys were convicted of fraud and racketeering in 1994. I testified in the criminal case about Rucker's and Disterdick's actions in that case. Rucker testified under a grant of immunity as to his fraud in the Alliance (the Stites firm).

Two years after I terminated Rucker as attorney for our group he went to Federal Court, allegedly on your behalf, claiming that it was improper to spend any money recovered from his former client Disterictick on the tax cases. Even though the settlement agreement, which he wrote, states "no funds are to be distributed to anyone until all tax cases are settled".

He did this in violation of state bar ethics rules because he had represented me and personally filed this case against me. Since all the money had been spent on your IRS defenses, I could not mount a proper defense for myself. The net result is he had a judgement issued against me in favor of the partnerships, which you gave me control of to operate.

Rucker found that judgment useless, as he does not represent the partnerships. All of the documents show I alone have sole authority to act for the partnerships. He then got one partner, Peter Smith, a retired judge in Los Angeles to file a lawsuit against Sandra Kardos CPA and me claiming that we had fraudulently dissipated the funds by spending it on your tax defense! He and Smith claim that you are a member of a trust but they don't know who you are and have never contacted you.

Now Peter Smith has obtained another firm to come after Sandra and me. This new firm again claims that they represent you. They are creating a personal liability for you for their fees, sanctions, and any other awards the court might allow against them. They simply say Smith has the authority to commit you and your personal funds to pay for the attorney’s fees.

What they want is for Sandra Kardos to pay back all the funds that were paid to her for your IRS defense. This includes all money spent on the tax defense, including filing fees and all expenses including attorneys and employees, which amounts to approximately $1 million. If she does not pay them they want a judgment against Sandra Kardos and myself to pay this mythical trust while Smiths’ attorneys take about $350,000.

The balance based on the 1946 partners, assuming equal distribution, would only be about $450 per partner. Of course, at the same time Sandra Kardos CPA loses everything she owns but has a claim against each partner and the partnerships.

Sandra Kardos and I have worked for free defending the rest of the cases after the money ran out in 1992. I never was able to pay myself for any of the work I did for you.

What we're asking you to do is sign and return the enclosed agreement, essentially stating that you were pleased with what has been done and that these people did not represent you. Further, the agreement closes your interest in the partnerships removing you forever from this type of problem.

If you execute this agreement, we are also granting full a release of any claim for additional funds due Sandra Kardos CPA. Based at standard rates for work preformed after the money has run out, this is about $500 per partner.

This case is an example of how corrupt attorneys look only on how much money they can make, without regard to the pain and suffering they cause.

Please call me if you have any further questions. Personal letters (or E-mail) of support are welcomed we would be grateful for contributions to our personal defense.

Charles Brink

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