In August 2015, Anita Border died leaving her £220,000 estate to be divided equally between her partner Emma Cullen and to longstanding friend Parminder Gibbs. Anita Border appointed her ‘good neighbour’, David Loveday, as an executor in her Will.
Mr Loveday ensured that Emma Cullen received her 50% share of the estate however, Parminder Gibbs was not so fortunate. Mrs Gibbs, after being fed a diet of lies and delays by David Loveday, had no alternative but to issue proceedings in the High Court with a view to removing Mr Loveday as an executor.
Over the course of the proceedings, Mr Loveday refused to confirm what he had done with the money. This was so notwithstanding a six month stay at Her Majesty’s pleasure for failing to disclose the location of the money when ordered to do so. It was during the proceedings that it was discovered that Loveday had “frittered away” the money on cars, holidays and debts.
David Loveday was subsequently imprisoned for a further three years and seven months after admitting fraud due to him having “shown absolutely no remorse”. Judge Brendan Finucane QC stated that:
“It was an abuse of a position of trust over a prolonged and sustained period of time”.
This case highlights the risks that executors can face in terms of being criminally prosecuted if they choose to abuse their position.
How Nelsons can help
Kevin Modiri is a Partner in our expert Inheritance Disputes team.
If you have any questions in relation to the subjects discussed in this article, please do not hesitate to contact Kevin or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.