UPDATE: Florence Aldridge denies suggestion about pass at Louis

By Patsy R. Brumfield / Daily Journal

4:20 P.M.

FULTON – Florence Aldridge denied she made sexual advances to her brother-in-law and was asked to leave the house by his wife.

That testimony came today as her lawsuit against Louis, Janice and Brian Aldridge, and Touched by An Angel Ministries finished with a delay until Dec. 20.

Aldridge, 67, claims her relatives – Louis Aldridge and his wife Janice, and their son state Rep. Brian Aldridge, all of Tupelo, and the charity he runs – spent more than $550,000 and other property from her while Louis held her power of attorney.

The case resumes because its Aug. 23 start, in Lee County, was interrupted by Louis and Janice Aldridge’s filing for Chapter 7 bankruptcy the morning the lawsuit began. A month later, a U.S. Bankruptcy Court judge lifted an automatic stay to allow the lawsuit to continue, although assets cannot be distributed without the federal court’s permission.

Chancellor Michael Malski presides over the proceedings, which could run two days.

Florence Aldridge is represented by attorneys Frank and Rhett Russell of Tupelo. T.K. Moffett of Tupelo represents Brian Aldridge, with Tim Hudson of Columbus the couple’s attorney.

Brian, Louis and Janice Aldridge deny they misappropriated Florence’s assets while she was ill, mostly in their care.

From 2003 to mid-2008, Louis Aldridge had complete control over her property with power to make financial decisions in her best interest. Court records state that when Florence recovered and realized her assets were gone, she revoked the POA and asked for a full accounting.

• • •

4:00 – Hearing resumes after 10-minute break. Attorney Tim Hudson questions Florence.

(Hudson – In June 2007, you’re OK,like today?) Yes. (Judge – was that the firs time you ever were prescribed Depakote?) Yes, tried many other things. First time.

(Hudson – August 2007 started getting your mail. Jan. 08 filed your taxes based on information?) I didn’t file IRS statements. They have now. (You had 1099s, etc.?) I probably did. (For whatever reason, didn’t file?) Yes. (Knew income from investments?) Recall, I had passed information to Joe Tedder. (Trying to establish that you had capacity and information in Jan. 08 to do taxes?) Yes. (Did it occur to you that something was amiss?) No, it really didn’t. (If money was all gone, you wouldn’t have had any income from banks?) Interest? Well, I don’t know how to answer that. (July 2008, started investigation?) Yes. (Exhibit 15 – asked about what had, general idea, but it states your attempts … $552K transferred from your accounts …) Transferred out of my accounts, used. Only $100K transferred here. (Bottom half, shows balances, that amt went to Janice, Louis, Touched, Brian, TBAAM Enterprises … you have told the court that you didn’t make any payments per rent, food, expenses – Louis did that?) Correct. (Today, what do you have?) Regions Bank savings account working on about $9K, checking account about $500. (Where did $9K come from?) I’ve been saving. (Started with Zero?) Trying to remember. (Where did $9K come from?) Had some left in Regions to get his signature off it. (When took it over, all money had been spent, according to P15. Where did $9K come from?) This was amount taken out of all my accounts, there was some left.

(POA, dated Jan. 2003. Correct?) I’d have to see it to make sure. (Louis, in December 04 took over?) It is 2003. (Entire 2003 and 2004, you took care of own affairs?) I was not ill when that was done. (Jan. 2005, you lived with Louis or on his property … 44 months?) Moved to apartment on Oct. 15, 2008. (More like 46 months.) (Moffett went through all the items that the Aldridges furnished you, necessities of life?) They furnished me but used my money for my groceries. I’m not asking for that. (Deny you agreed for them to take care of you?) No arrangement. Yes, I deny it. (Expect them to take care of you the rest of your life?) I wasn’t expecting to be depressed the rest of my life. (Expecting them to do this for no charge?) They said I could live with them. When you’re depressed, you don’t think of these details. (You were not depressed in June 2007?) No. (Did you expect no payment by you for whatever was provided?) We didn’t discuss it. (Did you expect that?) I don’t know how to answer that. Never thought about it. (Who told you that Louis kicked the chair in the church?) Don’t know person’s name, woman told me. (Food, utilities, shelter, car insurance?) Maybe dropped it because I wasn’t driving for about two years. (Cleaned your room?) No, I did that. Did it, some. I certainly cleaned their house when I was living there. (Did you clean your living area?) Yes, I did. Rest of house, many times, Janice had me do that. (Did Janice bathe and wash your hair?) One time, that I recall. (My notes, you said in 2003 you executed a will living everything to son Clark?) Yes. (He’s next of kin?) Yes. (After 2003, did you execute another will?) Mr. Russell did in 2008. We did an addition. Change was to put Louis and Brian as … so long ago… to oversee instead of letting bank to do it, should I die. They were named. (Ever did will leaving everything to Louis?) Never. (Said in 2008, revoked Will leaving everything to your son?) Yes, recall I got confused. (Remember I asked to see the will? Nobody could produce it? Your testimony in deposition, when found out what Louis was doing, I revoked that will made a new one, leaving my son as the beneficiary?) Remember that, I know that I got confused. (What was the confusion? You made a will to leave everything to Louis? Then made him POA, got upset with him and changed it back?) Will in 2003 was just to son. (Did another one in 2008?) Judge – changed executor to Louis and Brian. Who took you to attorney?) Louis. (Judge – when found problems, changed entire will and removed them as executors?) True.

(Hudson – Reason you made these changes was not because what you discovered Louis doing, because he rebuffed an advance toward him?) No, I did not. (Remember discussion, about when a man died, the husband is to take the widow as a wife?) No, never. (Why did you move out of the house?) Never got a real reason. Thought they wanted more privacy. They sort of told me I was going to move, to an apartment or trailer. (Some uncomfortableness by Janice about how you were dressing and acting around house?) No, that didn’t happen. No sir. (Did they supply you with clothes?) No, I had my own. (Leather coat?) I bought it, Janice gave me another. Occasionally she did. (Where is that one?) it was so heavy, I needed another. Don’t recall what happened to it. (Remember plastic tubs you kept bank records in it?) Yes, don’t recall when started doing that. Would have been after June 2007. Probably kept other things in there. Janice gave me the tubs to store things. No records prior to 2007. After I started driving again.

(Hudson 4:13 – no other questions.) Russells – nothing else.

Judge – was going to suggest plaintiff would rest. Might want to wait until then. That been said, this case is not directed toward Hudson. Hudson set for two days. Understand you have a conflict for tomorrow. (Hudson said he gave two lawyers – worked one out.)

Judge – Moffett, how long you need? Moffett – probably an hour. Hudson – if were going forward today, one witness for 10-15 minutes. Can’t answer for cross. Judge – here at 1 p.m.? Hudson – unlikely.

Judge – I’m here tomorrow, Friday pretty full. Going to be in Booneville next week. Moffett – traveling to Orlando on Friday. Judge – Corinth 12-15. We want to finish this up this year. How long … well, easy for me to change my schedule. Other people in courthouse has a life besides the judge. Court reporter has scheduled to be out some days. Moffett – back on 16th.

Judge – Reporter out but says she can come in on Dec. 20, in Tupelo. Any problem? Russells – don’t think it’s a problem. Judge – Mask may be there but we may be in the small courtroom, but report on 20th in Tupelo at 9 a.m. Russell – will hold off resting until then. Judge – not an inducement to bring more witnesses.

Judge – Recessed 4:20

(Read news report in Thursday’s Daily Journal.)

• • •

FULTON – Florence Aldridge said her brother-in-law told her he would take care of her and bring her back to health.

Three years later, she found out she had nothing left of a $550,000 estate.

Mrs. Aldridge, 67, claims her relatives – Louis Aldridge and his wife Janice, and their son state Rep. Brian Aldridge, all of Tupelo, and the charity he runs – spent more than $550,000 and other property from her while Louis held her power of attorney.

The case resumed today because its Aug. 23 start, in Lee County, was interrupted by Louis and Janice Aldridge’s filing for Chapter 7 bankruptcy the morning the lawsuit began. A month later, a U.S. Bankruptcy Court judge lifted an automatic stay to allow the lawsuit to continue, although assets cannot be distributed without the federal court’s permission.

Chancellor Michael Malski presides over the proceedings, which could run two days.

While Louis and Janice Aldridge now have their assets protected against claims, Brian Aldridge and his Touched By An Angel Ministries Inc. of Tupelo have no such protection. The charity was set up by the Aldridges in 1996 and Brian is its chief executive officer.

Florence Aldridge is represented by attorneys Frank and Rhett Russell of Tupelo. T.K. Moffett of Tupelo represents Brian Aldridge, with Tim Hudson of Columbus the couple’s attorney.

Brian, Louis and Janice Aldridge deny they misappropriated Florence’s assets while she was ill, mostly in their care.

From 2003 to mid-2008, Louis Aldridge had complete control over her property with power to make financial decisions in her best interest. Court records state that when Florence recovered and realized her assets were gone, she revoked the POA and asked for a full accounting.

• • •

1:54 P.M. – Court resumes from lunch break. State Rep. Brian Aldridge is still on the stand.

(Moffett questioning him – Brian, are you presently exec dir of TBAAM?) Yes, at age 19 in 1997. Preface remarks by saying I love my father very much. Best way to say , we have personality conflicts. You don’t say no to Louis Aldridge without there being consequences. I learned early. Very strained. My father in charge of ministry. (Ever spend dollar without his approval?) No, I asked for checks when needed something, said yes or no. (Exec in name only?) correct. (Check written to MLM, $1100 for a suit associate pastor. At his direction?) Yes, he had good intentions. (That was on Enterprise account. Per day to day financial operations of ministry util 2010, who controlled?) My father. (Aware of source of funds?) No. (Aware of funds for Enterprises?) No, I wasn’t. (Other than $1500, aware ever received money from Flo?) No, other than $1500. It was $1K to me by my father and I was told it was a wedding gift from Flo. I can’t find out what $500 was for. (Did SOS investigate ministry?) Yes. (How long last?) Started in January and met final obligation Dec. 1. (Investigation over?) Yes/ Ministry now in good standing, receiving funds. Subject to auditing by SOS. Camp going on by Ministry. Local volunteers. We’ll have a dance Saturday night for campers. Riding, hayride, arts and crafts, fishing. (Who’s running it?) Me.

(Over years, your job to run camp?) Yes it is. (Complaints about camps?) No one’s come to me. Actually during this, had an increase in campers. (Your responsibilities fulfilled?) Absolutely. (Now in charge of day to day finances?) Yes I am. (Consent order from SOS per ministry?) SOS thorough investigation of the books. Put specifics that had to be done, for example, two sigs on checks, overdrafts that had to be paid back, mother and father no involvement in operation… trying to think of everything. (I read the order, are you cited for anything?) NO, I am not. (Ministry had overdraft fees, not allowed?) Right. Being paid from contributions. SOS said had to pay that back – ministry did not pay it, I did. A little over $9700 – my wife and I did. Designated officers, board was responsible to pay back. Couldn’t be ministry.

(When paid back?) By Dec. 1, has been done. (Borrow money to do that?) Yes, I did. (Your salary?) No. (How much recived from ministry since 1997?) Totalled to about $1.25 per hour … about $15,000. (For money, do it?) Do this because, period, nothing available like what we do for children and adults with special needs. Aren’t year-round camps that serve people with disabilities. Some cut off services at 21. Oldest we had was man in a wheelchair at 65. Add that Amanda Claire part of inspiration behind it, my sister. (Asked you about Flo’s complaint when added you as defendant, said Louis gave you $1500?) Yes, don’t know about $500. (Corp did not file IRS reports? Done?) Yes, sent letters to IRS, haven’t heard yet. Attempting to resolve those issues. (Today, is ministry on solid financial accounting?) Money in bank, not much. Bills paid. No overdrafts in a long time. (Per ministry, affected adversely by publicity?) Saw contributions go to Zero. (I advised you to walk away, why didn’t you?) Nothing for these people – this is my passion, this is what I do. At 34, I could be making a whole lot more money than this.

(Anything to do with taking Flo’s money?) No. (Any power over her money?) No. (During this time, did you rely on what your father told you about ministry financially and Enterprises?) Yes. (While adult, wasyour father still a strong figure i your life and do what he directed?) I did what I was told to do. Again, if say no consequences. (Judge – Tell court, second time you made that statement. Love him but personality conflicts. Tellme what consequences would be?) We got into a problem in a home – he told me to get out. (Judge – what you’re telling the court that you would rather look the other way as CEO of corporation rather than buck your father?) Don’t know if I’d say, look the other way. All I can say. When say look other way, makes me think you knew something wrong was happening. I just didn’t put my focus there, put my energy elsewhere which was those camps. (Judge – All right. You’re saying, so involved with ministry you weren’t concerned with the day to day operations of corporations?) Yes. (Judge – when did you take as CEO the responsibility for running the ministry you say is so important?) When the lawsuit was filed. (Judge – when you got sued. But your father said three or four years ago, you started running it.) I didn’t. (Judge -lawsuit in 2008, when you started running it?) In 2010, when SOS stepped in. (Judge, speaking in loud tone -this morning you testified that as of today, you who are the CEO of that charity are not aware of what’s on the website. That’s what you said.) Yes sir. (As exec director, a charity so important to you, don’t know what’s on website?) Unfortunately correct. (When permit website say 97 percent funds go to campers, you’re permitting statement that you don’t know it’s truthful or not? How many years are you going to permit it to be there if you’re Exec Director?)

(Moffett – who put website together?) My father. Haven’t reviewed website and updated it. (According to my records, SOS investigation began some 7 months after lawsuit filed against you?) Correct. (Were you exec dir for all years investigating?) Yes. (Removed you in any way?) No. (Remove your father?) Yes. (Why you were not removed?) I suppose by looking and listening, they realized I was not making the financial decisions. (Rhett- object. SOS can testify for itself. Judge- sustain.)

(Moffett – work on wife’s vehicle paid by Enterprises?) Had some work done on her vehicle. Once finished, had ot have a vehicle. Didn’t have $1100. Went to my father, said I don’t have it. He said pay for it out of Enterprises. Got check, did it. (Were you at that time aware of source of Enterprises money?) No was not. (At any time involved with Enterprises?) When had a function, I’d serve food, that was it. (Parents handling?) Yes, I’d serve food. (Again, you were 19 when all this started?) Correct.

2:19 – Hudson says has no questions.

(Rhett – how old are you now?) 34, with college degree. Not on board. Attend board meetings now. Some attended in past. A lot I did not. (They didn’t discuss finances there?) They discussed electric bills, things like that. (Said you got $1500 – Exhibit 15 – directly from Flo’s account?) Correct. (But from TBAAM Enterprise Inc., Exhibit 17, you received $12,535 directly or indirectly?) Only $1500 I knew was from her. Other I thought was from Enterprises. (Deposition 4/18/11 – showed you print out of web site – asked you if correct that 97% of contributions went to campers? Your response under oath:) To best of my knowledge. (You’ve known for sure then at deposition that it was on your website. You haven’t done anything about it?) No I haven’t. I went to Vanderbilt with liver failure. Haven’t thought about that website. (Moffett – object. Assume inaccuracies on website. Judge – overruled.) (Rhett- what about your Aunt Flo, she’s out $550,000?) Yes. (That’s all she has.) (Moffett — object. He may not know anything about this.)

(Judge – not trying to be humorous. Thought $1000 was for a wedding gift, according to your father. Did you write her a thank you?) No, didn’t visit her and thank her for the money. Think I told her thank you, doesn’t sound like me not to thank her. (Rhett – Exhibit 16, dates checks and amounts. Judge – go ahead.) (Rhett – Testifying that until Oct.ber this year or after lawsuit filed that you were not familiar and did not look at the financial situation of TBAAM Inc.) I didn’t look at contributions or expenditures? If I asked for a check for a purchase, obviously I knew it was coming out. What you’re asking? (No, look at bank statements, etc. Saying you didn’t know?) I guess I knew where very little of it came. No, didn’t know the big picture. (Had secretary, computer with software on it to pull any information for you?) Yes.

2:27 – No more questions, Rhett Russell said. (Judge – you testified that father as CFO handled finances for ministries and further said if anything came to sign it, and that your primary interest was on the campers. Unaware of thousands of your aunt’s dollars were flowing into the charity. Also said CEO of ministry, do you feel any culpability to your aunt for her losses?) I feel bad for her. Yes, I feel bad for her. I didn’t know the money was being put in was hers. I just didn’t know. (Judge – all right).

2:30 – Call Flo Aldridge

(Rhett – asking questions.) Flo – live in Tupelo. Undergrad and masters in oral performance. Husband was David. Louis is his brother. Not very close. Had a falling out. Mainly that my husband turned in his father for making money. Louis held that against David. Son is Clark, has bipolar problems. Husband died Dec. 2001. Moved to MS in 2006, Jan. 1. Resigned job Dec. 31, 2004. Louis drove me here Jan. 1, 2005. It was 2005. Mother died a month after my husband. Didn’t cope with it well. Under medical care. (Before moved to Tupelo, signed POA, what was medical condition and problem?) I was fine, I am bipolar. In Florida, after husband died, treated for depression. I had cancer. Diagnosed biploar about 1974. (Ever tried to commit suicide?) Twice in Florida, about time family passed away.

(Rhett – more medical info.)Treated in Lakeland, Fla. Husband was an accountant. I was instructor at a college and organist at church there. In Tupelo, got doctors. Committed to MS State Hospital up here for depression and bipolar. Stayed there about six weeks or so. Memphis treatment before that in Lakeside. Shock treatment. Didn’t help. (She talks about her medications over the years – many.) Depakote started in June 2007, I was fially myself. I had been depressed from 2005 when came here through June 2007. Started driving, as soon as Louis would let me. He had car keys. Was not looking at my financial affairs. Louis checked my mail, bringing it until I started driving in August 2007. Got my box key back. (So 2005 thru June 2007, Louis was bringing mail to you?) Well, not financials, Never gave me bank statements, insurance statements. Just cards and letters. No info on CDs. About finances, he would pay from my checkbook. (After mother and husband died, lived?) No livedin my house about a year and a half. Moved in with friend for about a month after that. From there, moved to Lee County.

(Rhett – Back to Power of Attorney, Exhibit 14. Is this it?) Louis drove me to lawyer’s office. (Read – to handle affairs) (She read from it, to be exercised for her benefit and on her behalf.) (Do you think cruises, trips and gambling expenses were on your behalf?) No. (Lakeside for a month?) Yes, approximately. (Know aht Louis was doing with money from 2006-2008?) No, had not reason to be suspicious. Asked him to account for it. None. (When first got to Tupelo, did you stay in his house?) Yes, about a year. 2006, moved into camper trailer, small one. Very cold. (When started drivng?) When I got the June statement with Hawaii expenses by my Visa debit. (He had permission to spend $300 a month.) It was $10,000 or something. More than $300. (First suspicious?) Other than Hawaii trip … aware of problem when I had July 21, mom and son’s birthday, met with husband’s boss. He asked me how my finances were. I said Louis said he spent it all on doctors and meds, except for one investment. He said that couldn’t be right. (When did he tell you money was gone?) I don’t remember. (When got information?) Started to investigate myself. Then realized it was a problem and went to an attorney, when I came to you.

Went to central billing and said there was no payment. Knew something was very very wrong. Came to MS because I was depressed, scared. Louis promised to watch over my health. Felt like I had little alternatives. Son also bipolar, has his own problems. Brother, lived in Georgia and Louis said he’d take care of me. Said he would take care of everything. Also, all of my little treasures I wanted to lock away, he said he’d take care of. Moved out of trailer October 2008. Moved into apartment. (Until got on Depakote, dependent on Louis?) Yes. (His idea to move to camper?) Yes. (Heard him say were building an apartment for you? Consider it your apartment? Not goig to deed it to you?) Said I could live there my whole life and then give it? Don’t want to live next to them – not now. (When went to MS State Hospital – court sent you?) Yes. Cancer became active in the middle of this litigation. (noted took lithium.)

(When Louis took you here, owned a house in Lakeland, Fla.?) Yes. Mother left me $250K. Husband left investments, insurance, checking account. All of that money is gone. Had Mercedes and Toyota. (Tell me about savings bond, rings, watch, coins, jewelry.) Soon after moved here in house, I had a black satchel and looked at these things. Said needed a safety deposit box. He took them and hasn’t returned them. He said he’d take care of them. I really want them back. (Did he say he was transferring your money to Lee County?) Yes, $100K to Regions only knew about transfer until litigation began. (Sold your house $136K?) Yes, knew he was going to sell it. I never saw the money. (Shows her 2007 Income Tax Returns?) Yes. And amended return. Prepared by Louis. Signed by … not real sure. Said he did on deposition, but not sure. (Notice of federal tax lien, 2007.) IRS has taken money now. They said $30K was not claimed. They get into my Medicaid check, took away principal in checking account …wasn’t reported. (The 30K CD was redeemed by Louis?) Yes in 2007. (Penalty for early withdrawal?) Yes, others too. (Now you’ve got one notice of $3K-plus?) Yes. (Only assets you recovered was checking account at REgions?) Yes, about … I think it was $9,000 but not sure. But other $550K is gone. (Income now?) It’s Medicare and a small pension from a church. Also teach piano students, sub as organist at 3 churches. One in Oxford. (Util started taking Depakote, did you know Louis was writing all those checks) No, I did not, no suspicions. Trusted Louis, totally. (Did he say take care of assets?) Yes. (When last assets you got an accounting on, Bank of America?) Don’t recall, it was in 2010. Well after litigation began. Louis has not provided any accounting.

(Age?) 67, I don’t mind. (TBAAM?) Good ministry but not to use my money. Think I should have my money back. Good purpose. (Credit? Good?) Good credit, moved here with great credit. Now, it’s shot. (Exhibit 20 – credit report – shows absolutely none.) I don’t know. (Dated Oct. 2008) Recall it. Free Credit Report … wrote bad report. Due to Louis’ actions. Not paying bills.

3:01 – (Judge – mentioned sat down on floor with personal items, jewelry etc. Then you said I really want ti back – collective?) I really want those things back. (Judge – asks for list) White gold wedding ring of dad, diamond watch, old coins, jewelry from my father’s store, two mink capes. $25 savings bond.

(Moffett – 3:02 – Timeline correct? Filed lawsuit against Louis/Janice only Dec. 19, 2008. Not sued TBAAM or Brian personally initially?) True. (Amended April 28, 2011 to add TBAAM?) Don’t remember but don’t dispute it. (Then amended to add Brian Nov. 24, 2010?) Yes. (Ma’am, you would admit you never had POA give to Brian?) Correct. (Good relations with Brian, sister?) Yes. Enjoyed living in their home with Amanda. Participated in TBAAM, did not mind. I was there almost all the time. Good ministry but not using my money. (You say that, but you didn’t mind TBAAM having some money from time to time?) Gave the $2K after husband died. Don’t recall if claimed it on taxes. (Other returns filed with contributions to TBAAM?) Don’t believe so. (You said earlier that you knew what was going on, but suffered from depression. But no court appointed anybody to handle affairs?) That’s correct. (Could have revoked POA?) Had no reason to think not. Trusting Louis. (Lived in house with Louis, Janice?) About a year. Moved out into 2006. Still lived on property in camper trailer. Right behind their house. One of them owned it. Not charged rent. Lived in it probably a year. Mid-2007. Why? Because I filed litigation against Louis and my attorney suggested I move immediately.

(Moffett – said discovered, became concerned about money?) After saw man in Lakeland. July 2008. Still in trailer. When came back, I moved. (On your timeline, Jan. 2005 until mid 2008, moved into trailer?) Must have been in 2006 after state hospital. (Lived in their house or trailer provided by them, Jan 2005 unti mid 2008?) Yes. (About 3 1/2 years?) Paid no rent, Louis bought groceries. no utilities, did laundry sometimes. In the house. Aldridges provided water and power. (During time, write any checks?) (Judge – was Louis buying groceries and paying utilities out of her account?) Yes. Did not personally write checks herself. (During that time, did you write checks for anything?) Only if instructed from Louis … maybe one or two, that’s all. Wrote to camps for a dinner I think. (When took your deposition in August, asked you why you didn’t question Louis? You said afraid of him?) Yes, I was. Well, I was very ill, depressed, scared of him because heard he kicked a chair across social hall of Baptist Church. I was just afraid of everything back then. (Heard Brian’s testimony about not questioning Louis? You feel like Brian? Controlling, argumentative?) Yes. (When Brian said he didn’ tknow where money was coming from, you do’t doubt it?) Part of me wonders – how could he not have wondered? (You’re saying Brian should have paid attention. He didn’t have access to POA for Louis. You were in their household, but you said Brian should know.) I didn’t know he was using my money for himself. (Where coming? Holding Brian to a different standard? Brian wasn’t even living there?) I didn’t have knowledge, I was depressed, all this. Still don’t know what you are driving at? Didn’t know .. .how much money had back then. Didn’t come here realizing I had all this money. (Brian had no reason to know you had money, did he?) I do’t know if he knew or not. He mus have known something – how could he see all this money to camp, going to Hawaii and not know something was goin gon? I didn’t see it back then. Didn’t see records until late 2007. Didn’t know until saw the record. Knew they went to Hawaii, yes. (Proof that Brian ever took a dime ofyour money?) Bank records and checks we’ve obtained. (What does Brian Aldridge owe you personally?) Well, personally, what I’ve seen was introduced, can’t remember the figures … $1500 check, whatever other things was ($12K from Enterprises) Yes, but money was exchanged between banks. (You said you don’t know, right?) I guess I don’t. (Let’s talk about $1500 – two checks. Brian said dad told him it was wedding present?) No, I did not give him a wedding present. No reason to dispute that Louis told him. Don’t recall if I gave him a present.

(Moffett – recall discussing with Louis giving him wedding present?) Don;t recall. (Now saying want wedding gift back?) Said I want my money back. Sued Brian because he was CEO of camp. (Individually, laying aside ministry, do you want $1K back fro Louis?) yes. (What about the $500?) Don’t know what it was for. (Talk about ministry. As far as it’s concerned, apartment built … asked a few minutes ago about living in apartment. Your answer was, Not now.) Yes, (That means… didn’t you agree to live there at the time?) I did but was giving a choice between apartment and trailer. I chose trailer to live near them, I was so depressed. (Didn’t agreed to apartment?) I agreed but when time to move, they gave me a choice. (Did you agree to spend your money on it?) I agreed “some” money but didn’t agree on total amount. Never signed an agreement. (What about $40,000?) Not sure but an analysis of costs may have been ,,, agreed on a certain amount. I just don’t know what amount. (Don’t know amount?) Yes. Knew what was going on (Making decisions on own, without consulting expert?) Yes. (Selected appliances?) We talked about where they would be in the apartment. (For your life use?) Yes. Live there free for rest of your life. (Stay there rest of life and upon death, it would?) It would be in my estate? (Give to ministry?) No, in my estate. Did a will in 2003, estate to my son Clark.

(Moffett – tell Louis it would stay in your estate?) Yes. (Exact agreement?) He would use some of my money to build apartment, live there rest of life, in my estate. (Visit or inspect apartment while under construction?) Not special trip, just when worked there would watch them work. Finished .. .don’t think it ever was totally finished. Things just stored in there because I had decided to live in camper. Last looked, don’t recall. Before I moved in Oct.-Nov. 2008. (Why stay in camper?) BEcause very depressed, wanted to be near the house and people in the house. (Relationship was still on good terms?) Yes, fairly good. (In amended complaint, you allege that Louis paid over $$ in your checks to TBAAM Enterprises, also made payments to TBAAM and now $140,100 paid to TBAAM – is that what you’re asking to be paid back?) I’m asking for more than that. (Rhett – the complaint speaks for itself. Judge – move ahead.) (Moffett – are you relaying on exhibits. What asking from TBAAM?) (Rhett- complaint speaks for itself) (Judge -Mr. Moffett, it’s difficult…. order of the court to determine damages or not. Difficult for her to make that determination.) (Moffett – confusing as far as defendants I represent, as far as what she’s asking for.) Advised that total settlement of all parties. (Moffett – take that as a no. Anything else Ministry or Brian owes you?) Um, besides monetary, I think I deserve an apology besides money.

(Moffett – these last items, only as to Louis?) That’s true. Not about Brian or ministry. (When living in Florida, living with a caregiver?) Yes. (Who?) Joyce … uh, last name now is Neal. Paying her… I don’t know, I was depressed. I was not asked to pay her anything. Know remember signing a couple of checks for her and brother who packed my house and brought to Tupelo. Don’t remember signing checks for rent or anything like that. (Agreement with Louis, Janice?) No, they volunteered to take care of me and bring me back to health. (Know these documents put together well, how much were your assets?) (Rhett – in exhibit 15) (Judge – in evidence.) (Moffett – asked her if she knew.) I could probably add them up – two cards, 401(K), $100K in banks, parents $250K, approx $9K in bank, principal bank account with about … I don’t know. (Moffett you’ve testified to that.) Probably had an idea but without list. (Jan 03-05 – was some spent for care in Florida?) But certainly I was working then. Quit to come with Louis. (Jan 03 to Jan 05 – bank statements went?) To Florida, I was in Florida. I got them. I was in charge. POA was only issued in case there was a problem later, only because my husband died. Louis took over in 2005. $100K transferred to bank here. Rest he wrote checks from my bank there and then last ones were another was CDs, made new checking account and wrote checks on that here. (Where statements mailed?) Had same PO Box number, went to camp address. Did not receive any of them Jan. 05-08 when moved out. Not until August of 2007. Remember, I went several months without being suspicious. (Judge – it now is in the record four times, Mr. Moffett. Move along)

(How long before saw bank statements?) August or end of July 2007, when fine on Depakote. (What was the change?) No, I started them because I started checking my mail box. (Judge – she could drive, got her keys back.) (Moffett – notice missing money?) No, knew WAchovia had been closed. Figured Louis had been writing so much for drugs, etc. that it closed. No reason to suspicion him until later. (Ever talk to Brian about it?) No. (Ever personally confronted Brian about this?) No. (Said wanted an apology. Never confronted him?) No. (Didn’t sue him initially?) Didn’t have records yet. (All this time, never met with Brian about finances?) No. 3:40 p.m.

Moffett – asks for brief recess 3:41.

• • •

(Come back to NEMS360 for updates)

Before a lunch recess, Louis Aldridge took the Fifth Amendment repeatedly to questions about his handling of loans and tax reports. His son, Rep. Brian Aldridge, repeatedly insisted everything he did related to finances was ordered directly by his father, Louis.

Mrs. Aldridge, 67, claims her relatives – Louis Aldridge and his wife Janice, and their son state Rep. Brian Aldridge, all of Tupelo, and the charity he runs – spent more than $550,000 and other property from her while Louis held her power of attorney.

The case resumes today because its Aug. 23 start, in Lee County, was interrupted by Louis and Janice Aldridge’s filing for Chapter 7 bankruptcy the morning the lawsuit began. A month later, a U.S. Bankruptcy Court judge lifted an automatic stay to allow the lawsuit to continue, although assets cannot be distributed without the federal court’s permission.

It’s under way in Itawamba County because that’s where presiding Judge Michael Malski is in court this week.

While Louis and Janice Aldridge now have their assets protected against claims, Brian Aldridge and his Touched By An Angel Ministries Inc. of Tupelo have no such protection. The charity was set up by the Aldridges in 1996 and Brian is its chief executive officer.

Florence Aldridge is represented by attorneys Frank and Rhett Russell of Tupelo. T.K. Moffett of Tupelo represents Brian Aldridge, with Tim Hudson of Columbus the couple’s attorney.

Brian, Louis and Janice Aldridge deny they misappropriated Florence’s assets while she was ill, mostly in their care.

From 2003 to mid-2008, Louis Aldridge had complete control over her property with power to make financial decisions in her best interest. Court records state that when Florence recovered and realized her assets were gone, she revoked the POA and asked for a full accounting.

• • •

(Below is a running account of today’s hearing. Please excuse the typos and glitches likely to occur while I type as fast as I can.)

9:00 a.m. – Judge enters courtroom. Hudson says Moffett on the way, side is ready. Judge tells Hudson to let Moffett know he can object to the Daily Journal’s use of a small web-camera in the courtroom, but he will rule in favor of its use. Says since it’s a Lee case and people are interested in it, but may not be able to come to Itawamba, the use is appropriate. Also, that because Brian is an elected official, additional interest possible with cam use appropriate.

(Recess for talks in chamber with attorneys.) Florence Aldridge arrived with four friends, seated in the audience.

(Power of attorney involves signing a legal document granting authority to another to do certain things on the grantor’s behalf. The ordinary kind can be revoked or otherwise ends with the death of the person who grants it. The durable kind continues even if the grantor is mentally incompetent.)

9:57 – Moffett enters courtroom, organizes his documents to begin. Malski enters moments later.

Judge calls the case – notes case started months ago. Rebecca Owens testified then about financial information prior to Louis-Janice’s filing for bankruptcy. He notes exhibits presented then and other exhibits not yet entered.

Moffett brings Aldridges into the courtroom. 10:01.

Judge recounts the stoppage of the lawsuit because of the Louis-Janice bankruptcy filing. Automatic stay lifted in bankruptcy court to proceed before Malski. He asks Hudson and Moffett asked about web-cam. Hudson objects. Moffett says he doesn’t object. Malski says he waives 48-hour requirement and Journal will be permitted to have the small camera in the courtroom. Also says that future witnesses must exit the courtroom.

10:03 – Rhett Russell – says new records were subpoenaed, and were received, bank records marked for identification with summary. Asks to admit it into evidence. No objection from Hudson, Moffett.

RHETT – Says figures have been revised with new check information, summary of their checking activities. Also, disbursements total changes. Judge OKs those documents for exhibits.

(Calls Louis Aldridge to the stand. 10:06) Aldridge sworn in. Moffett moves to seat in jury box to hear testimony.

LOUIS – 10:07 – (Rhett asks him about deposition taken several months ago. 5-6 years college, no degrees.) Says Dec. 2004 took Florence to the attorney’s office. Knew she was having serious mental problems, when she signed power of attorney. Florence is his sister-in-law, married to his brother, David, who is deceased. (Louis stumbles on when brother died, 2001 I think he says.) Mental problems before he passed away, and at the time she signed POA, and since. (Not close to his brother?) My brother, they didn’t very often either.

(Rhett asks him about TBAAM, Touched by an Angel Ministries Inc.) Says was chief executive officer, gave Brian more responsibility recently. (Do you dispute he took over TBAAM two years ago?) Remember he was given more responsibility then. (Hands him copy of deposition, says we’re going to get to the bottom one way or another. Turn to Page 15. Asks Louis.) He says started to take it over three or four years ago. (Hudson says – asks if witness can look at his deposition?) (Judge- has it)

(Testified that Brian runs TBAAM.) Correct. (Never borrowed money from Flo?) Recollect it did. (Says to look at Page 21. Line 20, answer that TBAAM never borrowed any money?) Yes sir. (Not trying to trick you. (Hudson- it’s confusing.) First National Bank of Pontotoc, one note. Has an indebtedness to me that’s been resolved by Secretary of STate’s Office. (2004-5 ever filed charitable return with IRS, when did deposition?) Sir, I cannot remember everything. All I’m saying, asking me questions at that point at time.

(You were subpoenaed twice?) Yes, in a restaurant, by you. (Judge – all this about serving, where, inappropriate, screaming out stuff, let’s move on.) (Rhett – subpoenaed tax returns?) No sir, don’t have them in my possession. Touched by an Angel has them. I’ve been banned from Touched by Angel, have no knowledge of what goes on down there. I found out that they filed tax returns because I asked them. Don’t have any day to day contact with Touched by Angel. Banned by Secretary of STate’s Office, wife too. Brought individual income taxes. (Hudson has them.) (Rhett – did you put any deductions down for charitable gifts on these?) I don’t know. Very little. None to TBAAM, to my recollection.

(Recollect talking about Brian saying to paper that would burn promissory note?) It was his note, (but told newspaper it was TBAAM’s note?) That money went to TBAAM to pay off financial obligations. TBAAM gave $$ to Brian to pay it off, to FNB of Pontotoc. (Note to you and your wife.) Money given to Touched by Angel, paid the note. Paid on it, not off. Wife is Janice. Son is Brian. (Rhett- SOS website shows various reports not filed on the charity.) I disagree with that. (WEbsite of TBAAM then and now says 97% of contributions went to its campus.) That’s correct. (At depositions – SOS told TBAAM not to solicit any more money?) That’s correct. (Money from Flo never was classified by TBAAM as a contribution?) That correct. (Or to IRS?) Correct. (No promissory note between Flo and TBAAM?) Right. (Tax lien against TBAAM for $35,000?) Correct.

(Let’s look at Touched By An Angel Enterprises.) No, it’s TBAAM Enterprises. (Rhett says he’ll call it Enterprises. Exhibit No. 6, SOS printout that you and wife set it up.) Yes. (Sorry, Exhibit No. 9. Also says administratively dissolved by SOS in Dec. 2004. Correct?) They said they sent me a letter but I didn’t receive it. (Does exhibit 9 not say they dissolved it? Hands him copy of it. Date?) Dec. 28, 2004. Shows it was dissolved. (Since 2004 … once a corporation … you, wife, son have done business in its name since?) Yes. (All bank accounts, shown in Exhibit 1, were set up under your Social Security number?) Probably under TBAAM number but said it was dissolved, so I changed the name and put it under my social. Set up bank accounts for Enterprises. (Page 25 of deposition, said you did?) All right. Correct. (So stock for Enterprises?) Issued on paper, no stock issued. (Look on the paper. Any stock? It was no.) My answer. (Stated under oath 4/18/2011) Correct.

(You were president, wife sec-treasurer?) Correct. (Income, never had profit?) Correct. After looking at statement, had profit one year, about $7,000. (Under oath?) Asking things I hadn’t checked. Did say that during deposition. Year of profit … I can’t remember. (Judge asks him when?) (Rhett – Page 29 on deposition says never ran a profit.) Correct. (Doesn’t own any land?) Correct. (Donated money to Republican Party?) Correct, proud of it. (Enterprises paid for Brian’s June 2005 honeymoon to Hawaii?) Correct. (Checks on Enterprises signed by you, wife and Brian?) Correct. (Enterprises doesn’t owe any money to Brian?) Correct.

(Flo’s assets, sold her house?) She told me to sell it. (Most of her inheritance went to TBAAM?) Yes. (Said under oath that you never spent any of her money on yourself or your wife?) What I said. (Not correct?) No sir. Not direct out of her account. (We’ll look at that.) (Frank Russell confers with Rhett on questions.) (Rhett- you said didn’t directly distribute from Flo to family?) Yes. (Ever take Flo’s money, put it in TBAAM or Enterprise and then give to yourself?) Yes. (Withdrew about $115,000 from her Florida bank account?) Yes, I did. ($228K inherited from husband?) Yes, I did. (Spent it, didn’t you?) Distributed it. (Also, $25K fro life insurance?) Like I said, I can’t remember all the numbers. (Remember cleaning out her account in Florida?) Money there was transferred to MS account I had control of. (What about $100K life insurance policy?) No life insurance policy on her that I cashed in, no. (What about Principal Finance CO?) yes. I prepared her 1007 tax returns. Didn’t sign it. (Cashed in a CD of hers? That IRS levied her meager earnings not to pay for that deficiencies?) I don’t know. (She had good credit before you took over her finances/) Yes did. (What about your time share? When got it?) 2005, can’t remember. In my, wife’s name. Diamond Resorts. Bought it in Hawaii, used it two times. Went to Williamsburg, Va. Cost $15K.

(Rhett – checks from Enterprises, paying money toward cost of time share?) Correct. (PaID UP until last year?) Correct. (Showed you Check 1182 – for cash? Said probably paid on home mortgage?) Yes. (Fairly frequently paid expenses of you, wife, Brian out of Enterprises?) Yes. (Lot of checks payable to cash?) Assume there are. (March 2008 pulled $10K out of Enterprise account? What for?) Don’t remember. (Transfers between Enterprise and TBAAM, numerous?) Correct. (Asked you why? Said Enterprise would have money and TBAAM would need it, and then vice versa?) Correct. (Did transfer money between two?) Takes 5th Amendment.

(Rhett – asks question, if had outstanding check, you transferred over to account?) REfuse to answer. (Talk about trips – Hawaii 5 times with wife?) Correct. (After POA?) Yes. (How many after POA?) Two. (After POA, went to Grand Cayman Island, cruise?) Yes, same trip. (All these trips paid by TBAAM Enterprise?) I assume, yes, (With wife, went to Colorado snow trip?) Correct. (Ship ticket, cruise $1460 July 2005? Right?) I can’t remember amounts. (Air fare?) Can’t remember exact numbers. (All paid by Enterprises?) I assume. (In record are the checks. What is Empress of Sea $968?) Ship, don’t know. (Do you gamble?) I have. (Charges on Flo’s Visa at Grand Casino Biloxi and Robinsonville?) That I cannot remember, do not remember. (Will show you that in a minute.) (MLM Department store, wrote check on her account to them directly $638 for clothes?) Correct. (Then wrote one for $700 on her account?) OK, I don’t disagree. (BriaN SIGNED A check to MLM on Enterprises for $1152?) OK. I can’t dispute it, don’t remember dates and amounts.

(Rhett- showed you at deposition, check signed by wife, $4200. You said it was a payment on house note?) Yes, believe I assumed it was. (Check from Enterprises $449? Mortgage?) Yes. (Shows him – Exhibit 3, several checks. Your signature?) One is Brian’s. Bottom is mine. Others wife’s signature. (Times your wife signed your name?) Yes sir. (Exhibit 5 – copy of TBAAM website – On the site still says: REad top sentence?) Brian says in report to sOS, finances are good. (Recollect that coming out in newspaper?) I know something came out. (Recollect interview?) Know Sandi Beason, several times she talked to me. Can’t remember specific article. (Moffett – object. Articles written, not generally admissible or proof of anything.) (Judge – question is whether he recalled making those statement? Perhaps better question is did you make those statements?) (Rhett – April 24, 2005 did you report to Beason that you were assistant executive director?) That is not true. (Show you part of Exhibit 11 – entry, MS GOP from Enterprises, correct?) Yes. (Timeshare at bottom of page?) Yes sir. (Where paid for it with Enterprise money?) Yes sir. (Two pages over, does it say $400, $104 Enterprise to Harrah’s Casino?) Motel room, one was for cash at casino.

(Rhett – next page $104 cash? Grand Casino Biloxi?) Yes. Gamble but not large amounts. (Exhibit 14 – POA, does it state at bottom to handle her affairs as freely as my own, provided however, that any such power shall be exercised solely in fiduciary benefit for Flo?) Yes it does. (So when you’re writing checks to MLM and taking trips. how does that benefit Flo?) It didn’t benefit her. (Exhibit 15 – you handled $552,000 of Flo’s money?) What you said. (See that?) OK. (Does it not say in report that of her money, some directed to Janice, Brian, you, TBAAM, Enterprises?) I’d like to see exact tracing of it. (Refer to Exhibit 18 – Summary as to funds during this time after POA transferred from TBAAM to Enterprises. Already in evidence. Shows during that time, charity transferred to Enterprises $82,890? Right?) Must have. (Exhibit 25 – transfer from Enterprises to TBAAM $98,805? Right?) What it says. (Were correct when quite a bit transferred back and forth?) I refuse to answer on grounds it may incriminate me.

(Rhett- True that TBAAM only has 2.3 acres?) Correct. (Wife owns 60 around it?) Yes. (So every time put in literature, to build subdivision, hard to do that on 2.3 acres?) That was given to Touched Ministry. (Exhibit 24 – check you wrote to AIG $3048?) Insurance. (Gina Allred is daughter-in-law?) Yes. (Check to Brian’s wife?) Yes, $300. (Brian’s wife benefiting from Enterprise?) Correct. (Also wrote check for tuition to Northeast community college?) Yes. (You stated only TBAAM debt was note to Pontotoc. Show you Exhibit 17 – numerous disbursements to loans at BancorpSouth, are they not?) Correct. (What are they, not TBAAM or Enterprises? Personal loans?) I don’t know what loans are for. (Not TBAAM Inc.? Said only Pontotoc? Somebody else’s.) I refuse to answer on grounds may incriminate me.

(When spending Flo’s money, did you report it as income to IRS?) Yes. (Telling me that when you got these thousands of dollars, you reported it on your returns?) I did not report thousands and thousands of dollars. (Hand you tax returns – 2008 and wife, show wages $28,000 and $24,000 under pension?) No money spent from her. (What about 2004 – $23,000?) Correct. (No other income reported?) Correct. (2006 – loss reported, picked up pension of $22,000. Nothing from Flo or in 2005?) No sir. It was from Enterprises. (2005, 06, 08 only $22K reported from Flo?) Takes 5th Amendment. (Moffett objects – redact social security numbers> Judge – oK.)

(Rhett – Tax returns in evidence, you prepared them?) I did. (True and correct?) Takes 5th. (Sign them?) I did, wife did, filed them with IRS. (How making only $22K, how can you afford to take all those trips.) Takes 5th. (Hudson – reserve to question.)

(Moffett – Louis, tell me about your family.) Married to Janice, two children – Brian and Amanda Claire. She has Downs Syndrome. (Rhett – object, irrelevant. Judge – overruled.) (Moffett – how old?) She’s 20. (Start of Touched?) Yes, certainly did. (What does TBAAM do?) Camp for disabled adults and children, where come spend night, spend week at time, weekend. Camp can go fishing. hayrides, ride the horse, has proms for DS population, numerous Easter Egg hunts Christmas programs. They don’t have a lot of places to go. STay at home or are institutionalized. Don’t have chances to socialize. Campers from many states. Not affiliated with it any more. Camp is still in operation, to my knowledge. Says he and Janice very active. Brian was 19 when got involved. Daughter was 5 when it began. Says he and Janice involved since beginning of camp.

(Moffett – talked about Touched nonprofit organization.) Instrumental in setting it up. Brian wasn’t old enough. (What about Enterprises? Why two organizations?) TBAAM is 501(c)3. Enterprise isn’t. It was separate at all times. Why? Because it was set up to be able to do banquets, parties, catering events and different events that entailed food. Could rent place or we could cater. In return, we could give money back to camp. (Did you and Janice become fulltime with ministry?) We were never paid but were full time. Enterprise set up (Rhett – leading. Judge – overruled.) …. Enterprise set up, you and Janice working without salary, camps year-round, rented kitchen facilities sometimes, separate from ministry. Income for me and Janice. Only income from this organization, especially after we brought Flo in. (Moffett – beginning POA, what facilities at Ministries?) Riding arena, sleeping facilities, small kitchen, bathrooms. Conference center, admin building, cabin. Added … finishing next cabin, Will Rosa named after a camper. Not totally completed yet. On 2.3 acres owned by TBAAM Inc. Used entire property except for Brian’s house. About 66 acres. Wife owns it, inherited it from her parents. Money owed on 66 acres, TBAAM paying note. Paying note because it was using it. TBAAM didn’t pay any rent except that. (Moffett – did you and Janice found ministry?) Yes. (Formed Enterprise Inc. as for profit?) Yes. (Did Brian hold any office or hold position with Enterprise?) No. (Did Brian have any position early on in TBAAM?) Has always been executive director. (Who handled ministry finances until 2010?) I did.

(Moffett – Let’s talk about Flo. Why got POA?) BAckground is she tried to commit suicide on several occasions, Dr. DAvid Cook had me come down there several times. I was going about every six weeks at that time on behalf of Flo. Also working with her son Clark, helping him. He’s in almost as bad shape as her at the time. After her last incident, called down there basically by doctor. Came and at that time (Rhett – object to hearsay about DAvid Cook. Judge – overruled.) We discussed her moving to Tupelo. Brother did not want her. Clark wasn’t able. She had burned most of her bridges of people who wanted to help her. She continually wanted attention. This is how she got it, trying to commit suicide or going into psychiatric hospital. (Moffett – other family in Florida?) No, just Clark and Flo. Brother lived there before he died. Another brother dead, sister alive. (Who didn’t want to take care of her?) Her brother, Clark. Lives i Georgia. Has a son, in Lakeland, Fla. his name is Clark. He lived in same town as she did back then.

(Why didn’t Clark take over mother?) He has mental problems, he was unable to do it. (Got this power of attorney, back to Tupelo?) Yes, lived in my home. Had Amanda Claire, we took in Ginna Lee when she wasn’t married to Brian. BEfore lived with us, lived with another lady in Florida. (paying for care?) She did, reluctantly. She was caregiver. Joyce something. Paid … I can’t exactly. Think about $1,000 for month. Brought her back to Tupelo, December 30, 2004. Moved her directly into our home with her cat. AFter that date, provided roof over head, washed her clothes, buy her food, provide for her care 2/7. (Moffett – seen no exhibits where allowed spending for her care?) Took care of her until October of 2008, I believe. (During that time, did you or wife take her to doctor appts?) Every one. (Write checks for her?) No. (Feel necessary?) No. (Keep good records on her, food, clothing, medical?) NO, I didn’t. Looking back I should have. Didn’t think I would need them.

(Brian, have POA?) (Judge – if he had records and charged her at same rate, $500,000 would have lasted 40 years.) (Moffett – in light of rate in Florida?) Didn’t include meds, anything else. Brian never had POA, no authority to sign checks on her, TBAAM no authority to sign anything on Flo’s account. (Moffett – Brian caregiver, aware what was going on with her money?) No. (Did she participate at times in TBAAM?) She volunteered for a little bit, always had something wrong with her. Building, apartment build for her with her approval. Yes, Will Rosa cabin. “Will Rosa” is camper, no association with Flo. Cabin – downstairs, two story, downstairs to be bedroom with shower, restroom. Part for storage. Upstairs complete apartment, one BR, bath, small kitchen. Plan was for her to move into there. She was in agreement. She participated in plans, did some. (Aware her money was being used for it?) Yes. Never moved into it. Would have been available for her. (Judge – built on property she didn’t own?) Yes, approved by Touched board of directors. Because building would stay there when she was gone. Touched could use it. (Moffett – during her lifetime, then gift to ministry upon death?) Yes. She was aware of all that.

(Moffett – (Judge – know if Flo was aware, did she go to an attorney or seek any independent counsel to expenditure of funds you say she knew about/) No, it was in psychiatrist’s notes in Florida. (Judge – that would have been before POA executed?) Right before. (Judge – after you became her fiduciary, once she executed POA you were her fiduciary. Did you take her to an attorney, say before you approve spending this money to build this cabin, you will need independent advice. I’m not going to spend your money on a cabin without independebnt counsel? Did you do that?) No sir. (Moffett – did Brian have anything to do with Enterprise?) None.

(Moffett – that’s all. 11:25)

(Rhett – redirect. When Flo was in Lee County before voided POA, you took keys to prevent her from driving?) Til she got medicine, maybe a month. I can’t remember, about a month. (Time she was in Lee and voided POA, you controlled and picked up her mail?) Yes with her permission. (Withheld her financial statement?) She told me to. I tried to give them to her. She said I didn’t want them. Told her what I was spending her money. (Once $$ went into Enterprises, Brian could write checks?) A few, I don’t know how many. (Records of her money on cabin?) Yes I do. (Where are they?) In a file, didn’t bring them. (TBAAM records – didn’t see anything about materials.) I don’t have them.

11:28 – Call Brian Aldridge. (Judge – Russell, how want to handle?) Aldridge sworn in.

BRIAN – Exec director of TBAAM, since 1997. (Rhett – all that time?) Yes. (Contract with organization? In writing?) No. Board knew it. (On board?) No. (Ms Legislature?) Yes. (Aunt is Flo?) Yes. (In deposition, said father worked for a church directory?) Yes. (Working for that company back in …heard father say $20K on income tax return?) Specify. (He was talking about $20-something K on income tax return. On 2006 return, there’s $22K shown … he testified could have come from Flo. Was he working for that company then?) No, he was … didn’t have a job. (Return Exhibit 27, 2008 return – W2 from Directory Innovations?) Yes, working for them. (When ceased?) I don’t know. (Another W2?) In 08 he worked. (In exhibit, shows income reported for source other than Flo?) I suppose. (You said TBAAM exempt from tax purposes in 1996?) Yes. (IRS recognized it when?) 1996, I suppose, I don’t know. (It solicits funds by mail and radio?) By mail, not sure about radio. Recall public service announcements on radio. (You make decisions about mail solicitations?) Yes. (It owns 2.2 acres?) Yes. (Improvements on mother’s land?) Gates, fences, don’t now where that came from. Ponds were there. (That organization, 4/18/11 standing with SOS? Not recognized?) Correct, it was a mistake that it wasn’t registered. (Not recognized?) I don’t know that was the status – just that we couldn’t raise money. (Failed to file 3 tax returns with IRS?) I don’t know. (Federal tax lien for $35K?) Don’t know. (Judge – you were exec director and didn’t have any direct knowledge of dealing?) Yes sir, my focus was meeting needs of camp. (Rhett – Exhibit 6 – SOS report as to TBAAM standing, when SOS ceased to recognize it as charitable organization?) They told me status was pending. (Record says when charity was ceased to be recognized? Moffett – don’t know where this is going. Consent order. This is irrelevant. If some allegation that it took money, let’s get to it. No truth. Just trying to defame, destroy organization. Nothing to do with taking money from Flo. I object.) (Judge – perhaps relevancy lies in questions, not that Touched but to show that Mr. Brian Aldridge is liable. Because he didn’t know information because it should have known. Defies imagination that he didn’t know as exec director. Of existence of $35K tax lien and three years of no tax returns filed. Nothing to do with good deeds. Rather the liability or responsibility of Brian Aldridge.)

(Rhett – as exec director, you signed reports to SOS Form 990 to IRS?) Yes, I did after my father filled them out. (Under penalty of perjury?) No. (Didn’t read above it?) No. (On website, 97% of all contributions go to campus?) If that’s what it says. I don’t know if it’s correct. I didn’t write it on there. Didn’t OK the words. (What % goes to services?) No. (You’ve made speeches and put on literature that parents would build subdivision, then build camp for sister? Why only 2.2 acres instead of 60?) Recently, I understand. Again, my focus was on the camp, the campus, the handicapped children. Changing dirty diapers on children and adults. That was my focus, responsibilities. (No doubt it was set up for good purposes.) (You stated that corporation, no promissory note that it owes you or parents any money?) Correct.

(What about Enterprises? Got funds from it?) Yes. (You write checks on it?) Yes. (Exhibit 1 – list of all bank accounts, three, you were on all of them?) Two of three. Name them? (Talking about Enterprises – Exhibit 1 says it has 4 accounts. Your name to sign checks on all four?) I’d have to see it, take your word for it. Signed checks on Enterprises. (Admit at deposition created Dec. 2002, dissolved 2004?) You showed me something to prove it. I said yes. (You said it generated money from banquets?) Yes. (Owns no real property?) Correct. (Asked about Resorts? Time share?) You showed me the check, that’s correct. (Checks to Robinsonville, etc.?) yes you did. (Exhibit 13 – report to SOS, your signature on it?) Yes. (In numerous places?) Yes.

(Rhett – Last document on 13 … no, Exhibit 18 – summary of all checks from TBAAM Inc. to Enterprise – $82890 after POA?) That’s what it says. (Why as exec director, why all these checks funds transferred to a non-existent corporation that you and parents drew checks on.) I told you my focus was on camps. (What about MLM?) Told to write a check, by my father, I wrote a check. (Your clothes?) no. (Judge- why would your father tell you to write a check for clothes at MLM for someone else.?) For clothes for pastor at Firs Baptist Church, who had diagnosis. FAther bought suit anonymously. Enterprise check paid for it. (Judge -why didn’t he just sign the check? He didn’t have to reveal where suit came from?) I have no idea.

(Rhett – Have $1877 check on Enterprises account, debit charge to Hilton Hotel in Hawaii. Honeymoon?) Not on my honeymoon June 1, on it prior to that. May 21 started honeymoon. In Hawaii I don’t remember how long. Wasn’t’ to June 1. Don’t remember, it was 5-6 days I suppose. (Charge against Enterprise June 1 Hilton Hotel, $1877 in evidence. In Hawaii about that time?) Yes. (Enterprise paid for air fare there?) According to what you showed me. SAid I had no knowledge of how it was paid for. (Exhibit 17 – checks from TBAAM Enterprises where you either signed them or they were made payable to you $12,535?) What is says. (Included in that, repair work to garage) I was told to take Enterprise check and pay it. Repaired my car. (Another check, payoff on Brian’s loan. Correct?) What is says. (As exec director of TBAAM Inc., did you keep up with donations?) No. (Access to bank records of it?) Looked on Quik Books, not bank statements. Had access to Quick Books, no idea how to get into it. (Keep up with spending?) No. My father was CFO, I thought he was handling it. Again, my focus was to operate those camps, those kids/adults with disabilities, I cared for them. No one has ever said anything about the care they received, my focus and my responsibility.

(Didn’t consider it was your responsubility to look into how money was spent?) Father said he was CFO, thought he was handling it. (Transfers?) No. My focus wasn’t finances. I handled the camps. Father was CFO, therefore I thought he was handling that situation. (Understand and exec director is over a CFO?) Not at Touched. (Ever ask where money came from to Enterprise?) No.

11:57 – recess to 1:30 p.m.

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