For further information, or to share your story, click here: Email Summary of Southwest Fiduciary, Inc. Violations (Click Here) Full text of the Supreme Court sanction letter to Mr. DoVico is available here: (Public Information from the Supreme Court) Page 1 (pdf) Page 2 (pdf) Page 3 (pdf) Despite the clear violations of the law, the Supreme Court declined to issue a meaninful sanction against Southwest Fiduciary, Inc. Instead, they only placed a letter in Southwest Fiduciary's file. Meanwhile, Southwest Fiduciary charged the estate for their own time, their attorney's time and their expenses for responding to the Fiduciary Certification Program, spending time with investigators, and defending themselves against the complaint. Does Southwest Fiduciary make a profit for getting caught violating the law? Clearly, the answer is "Yes"! NEWS FLASH!What is Southwest Fiduciary, Inc.? and Who is Gregory P. DoVico? (Click Here)
In a Decision (1 CA-CV 06-0152) by the Court of Appeals, State of Arizona, Division One, signed by Lawrence F. Winthrop, Presiding Judge dated March 29, 2007, the Court confirmed that, in a complaint proceeding before the Fiduciary Certification Program, “SFI (Southwest Fiduciary Inc.) defended the proceeding before the Program as a certified private fiduciary member, not as a personal representative.”. “SFI’s expenses and fees incurred solely in the proceedings before the Fiduciary Certification Program were not chargeable to the estate.”. Further, a subsequent MOTION FOR RECONSIDERATION protesting this decision, was specifically denied by Presiding Judge Lawrence F. Winthrop and Judges Susan A. Ehrlich and Sheldon H. Weisberg.
In addition, the Court stated, “...SFI has not cited, and we have not found, any authority for a private fiduciary to charge to an estate attorneys’ fees incurred in defending a complaint to the Program, even though the conduct at issue in the Program proceeding concerned the fiduciary’s handling of the estate.”.
In the Conclusion of the Decision, the Court reiterated, “...SFI’s expenses and fees incurred solely in the proceedings before the Fidiciary Certification Program are not chargable to the estate.”.
In other words, the court found it illegal for Southwest Fiduciary, Inc. (or any other fiduciary) to charge an estate (or a client) to defend themselves against a complaint filed with the Arizona Fiduciary Certification Program! They are not to charge for their time or expenses, and they are not to charge their attorney's time or expenses.
Despite this clear ruling of the Court, as of 19 March 2008, Southwest Fiduciary, Inc., has REFUSED to refund these fees and expenses to the estate! ------------------------------------------------------------------------------------------------------------------------------------ UPDATE!
In a March, 2008 ruling by the Fiduciary Certification Program of the Arizona Supreme Court, this Court of Appeals Decision was IGNORED. Contrary to the Decision, the FCP continues to allow Southwest Fiduciary, Inc. to charge clients and estates for defending against complaints before the Fiduciary Certification Program - even when the fiduciary violated the law! The Fiduciary Certification Program is allowing Southwest Fiduciary, Inc. to PROFIT for violating the law! It appears the Fiduciary Certification Program is AIDING AND ABETTING fiduciaries to unlawfully divert funds from clients and estates for their own profit! Is this CONSPIRACY? or merely INCOMPETENCE? ------------------------------------------------------------------------------------------------------------------------------------ Over the years, a number of complaints of Fiduciary Misconduct have been filed with the Supreme Court against Southwest Fiduciary, Inc., the owners, Mr. Gregory P. DoVico, Mrs. Peggy A. Dovico, and their employees. For an incomplete list of complaints (1999-2004), (Click Here) (Public Information from the Supreme Court) These complaints are well documented in the files of the Arizona Supreme Court Fiduciary Certification Program. You are entitled to examine these complaints at the Supreme Court Fiduciary Certification Program at no cost or obligation. Copies are available for a fee. Should you have any questions regarding the process or the outcome of this or any other complaint, please call the Fiduciary Program’s Complaint Unit at 602-364-0367. (Public Information from the Supreme Court) Financial exploitation by fiduciaries has become wide-spread and flagrant, expecially in Arizona. In fact, fiduciary abuse was the topic of an episode of "Boston Legal", aired March 21, 2006. The writers clearly made the point that a fiduciary can charge clients and estates excessive fees, and get away with it. They will also charge a ward (or estate) for defending against any legal action taken against them. Of course, this episode was fiction, and their interesting solution was hiring a couple of thugs to rough up and intimidate the fiduciary and steal his files. (I can't recommend that solution!) But, we must ask ourselves, "What is the solution?" The Fiduciary Certification Program of the Arizona Supreme Court won't help, and appears to be aiding and abetting fiduciaries to unlawfully divert funds. However, we should all file complaints with the FCP - AFTER THE ESTATE IS SETTLED! If nothing else, the FCP will be forced to investigate the complaint, and the fiduciary will be unable to collect his expenses from the estate. For further information on this (or any other) complaint against a fiduciary, write to: (Public Information from the Supreme ourt) Arizona Supreme Court Fiduciary Certification Program 1501 West Washington Street Phoenix, Arizona 85007-3231 To file a complaint (Click Here) for a Supreme Court Fiduciary Certification Program Complaint Form [pdf]). If you intend to file a complaint, read this! (Click Here) For a summary of recent complaints and the disposition (from January 1, 2007 through September 10, 2009), read this document! (Click Here) Arizona Code of Conduct for Fiduciaries: Read carefully. If your fiduciary doesn't follow it to the letter, hold them accountable! (Click Here) Will the Fiduciary Certification Program require the fiduciary to correct violations of law? Probably not! Despite their original mission statement, (Click Here) a supervisor (Ms. J. R. Rittenhouse) in the Fiduciary Certification Program claimed they have no responsibility to require correction of violations! Don't forget, unless you file a complaint AFTER the estate is settled, the fiduciary will charge the estate (you!) for their time, their attorney's time and their expenses responding to and defending themselves against the complaint! They can even charge the estate for time spent at a bar - drinking and socializing with their attorney - and no one will know or care! If you file a complaint before the estate is settled, the fiduciary WILL make a profit for responding to the complaint! Neither Maricopa County Probate Court nor the Fiduciary Certification Program will question or disallow any such expense to an estate. Bills have been introduced in the Arizona Legislature as a first step to prevent such abuse, but have failed thus far. Please contact Arizona Legislators to urge passage of effective legislation!"All that is necessary for evil to succeed is that good men do nothing." (Edmund Burke)
For further information from "The Ripoff Report" on abuses and violations of law by Southwest Ficuciary, Inc., (Click Here) and search for "Southwest Fiduciary".