Carl's diamonds were deemed his sole property
during his divorce in 1994. Download
divorce decree as pdf A 1982 appraisal of the diamonds, 125
of them, set their current retail value at a total of $260,950.00.
Download
appraisal as pdf But in 1999, five years after the divorce,
a special master in the case reported that Carl's sole property,
his diamonds, should be distributed in part to Carl's ex-wife,
purportedly upon her testimony alone that Carl told her at some
time in the past that he would give them to her. The Court ratified
the special master's report. Later that year, attorneys Wolf and
Fox and attorney William Friedman assert liens against Carl for
payment for their representation of him. Download
lien as pdf Carl goes Pro Se since he is very dissatisfied
with his former attorneys. In 2000, Carl's ex-wife's attorney,
Michael Danoff, filed a Motion to Compel the Distribution of the
Diamonds in which he asks that the diamonds be reappraised by
Krugers Jewelers and divided equally between Carl and his ex-wife.
Download
motion as pdf
Danoff also states that he has given notice regarding the request
for diamond distribution to two of Carl's former attorneys since
they have asserted liens on Carl's portion of the diamonds.
Carl, who is educated as a lawyer, protested
the liens Pro Se but to no avail. In 2001, Special Master James
Loughren issued a report which was later ratified by the Court.
Download
report as pdf. The report stated that each of Carl's former
attorneys, William Friedman and Wolf and Fox, "recovered
a fund for the benefit of Respondent [Carl]". Interesting
choice of words for a stock of diamonds that had been deemed Carl's
sole property in divorce. The sentence should have read, "managed
to give away nearly $130,500 of Respondent's diamonds to his ex-wife".
The most amazing part of the report states, "It is estimated
that the cash value of the diamonds will not exceed $5000.00."
Here's the math. The diamonds were originally
valued at $260,950.00 in 1982. They were to be split in half in
1999. That leaves Carl with diamonds that were valued at $130,475.00
seventeen years earlier in appraisal. Now Special Master Loughren
states that the same diamonds are worth a mere $5000.00 tops!
That's a reduction to 1/26th of their original value, seventeen
years later. Read on to see why the reduction is so critical
in this case. The 2001 report goes on to order Kruegers Jewelers
to sell the diamonds and orders the cash proceeds (up to $5000)
to be split between Friedman and Wolf and Fox. Kruegers refused
to appraise or sell the diamonds and called for the immediate
removal of the diamonds from their premises. Ed Karler of Rocky
Mountain Gold and Silver Exchange appraised and held the diamonds
instead. Ed Karler valued the Wolf and Fox share of diamonds (42%
of Carl's half of the stock of diamonds) at $1286.00.
Let's do the math on that one. Carl's "share",
now half of the total value of the stock of diamonds, was $130,475.00
as per the 1982 appraisal. Forty-two percent of that amount is
$54,799.50. But Ed Karler, good guy that he is, finds in his appraisal
20 years later that the portion of diamonds has considerably dropped
to only $1286.00. Furthermore, he claims that the cash value is
a measly $877.01. That amount is 1/62nd of the original value
20 years ago.
In 2002 Judge Anne Kass, head of the Bernalillo
County Family Court, issued an order calling for the diamonds
to be directly distributed to Wolf and Fox with an associated
$1086.52 deducted from Carl's bill. In 2003 a judgment from Judge
Deborah Davis Walker is issued against Carl regarding fees, claiming
that he still owes Wolf and Fox a whopping $14,663.48 (from a
bill that was originally around $9000).Download
judgment as pdf Note that by this time his children were aged
24 and 23, respectively. Carl's case and the "legal robbery"
lasted for over six years after the family court had any right
to jurisdiction over his children!
Carl has appealed the case and lost. He has
accompanied CFJ leadership to the FBI, to Attorney General Patricia
Madrid's office, and to our federal legislators. The FBI offered
to coinvestigate this issue with the Attorney General, but was
told that "there was nothing to investigate".
In addition to the diamonds, Carl had hundreds
of thousands of dollars garnished from his four businesses and
liens placed against all of his properties. Carl has moved out
of the state and left no forwarding address. His case file in
family court, however, was still active in 2004, complete with
more motions for judgment from attorneys on the case.