JB Carlson
Encyclopedia
JB Carlson is an American
businessman, entrepreneur
and CEO. Carlson founded The Carlson Corporation in 1993 (Indianapolis
, IN), The JB Carlson Corporation (Indianapolis, IN) and Carlson Media Group, Inc. in 2001 (Delaware
).
Carlson ended his relationship with Wal-Mart when Tom Coughlin (Wal-Mart)
then vice-chairman of Wal-Mart and former confidant of Sam Walton
was arrested. Carlson's Chief Financial Officer
had formerly worked for Sam Walton's daughter, Alice Walton
.
Carlson named his company “Carlson” in tribute to his father Carl referencing his father’s first name “Carl” and “son” meaning “Carl’s son” in short “Carlson.” Carlson’s birth name, J.C. Bolf, was changed to his legal name after years of people calling him “Mr. Carlson” and combined it with “JB” which friends had previously referred to him as his entire life.
) through its subsidiary American General Life, Inc. (AGL) sued an insurance trust owned by one of Carlson's companies to contest a fifteen million dollar claim in federal court southern district of Indiana. The AIG lawsuit alleges that Carlson secured a life insurance policy without possessing the required insurable interest
so that he, his company and trusts could later profit from selling the policy on the secondary market. This is called a SOLI or STOLI (Stranger-Originated Life Insurance) transaction. AIG alleged the policy was nothing more than a wagering contract which is void ab initio
. Count one requested a declaratory judgment
for rescission and/or voiding of the policy based on lack of insurable interest.
in his director's life and that even if there wasn't an insurable interest AIG's own two-year contestability provided that: “Except as stated below, we cannot contest this policy after it has been in force during the insured’s lifetime for 2 years from the date of issue.” Carlson continued, “AIG did not raise any contentions about fraud or misrepresentation in the application process until after Germaine Tomlinson’s death and more than two years after the Policy’s date of issue. Premiums of $855,146.90 were paid and up to date. Indiana state law prevents AIG from contesting the policy proceeds. Carlson provided that, “like other states, Indiana expressly authorized by corporations to insure the lives of its directors." Indiana Code § 27-1-12-17 authorizes corporations to insure the lives of its directors, officers, agents and employees."
and breached their contract by refusing to pay the policy proceeds with multiple other claims. Count I of Carlson’s counter complaint is for breach of contract and count II is for bad faith.
During discovery Carlson provided emails from the life insurance agent encouraging Carlson to sell the policy, however, Carlson never filled out an application to sell the policy.
Judge Barker stated that Tomlinson controlled the trust with exclusive power to change the beneficial interest at any point and she chose not to make any changes to the trusts named beneficiaries and therefore it was doubtful that Carlson could have participated in wagering.
Judge Barker ruled that both AIG and Carlson’s positions and facts did not meet the standard for Summary Judgment and ordered the case to a jury trial.
Carlson’s case quickly became one of the highest profile insurance lawsuits in America receiving global news coverage.
against Carlson on December 31, 2009 to avoid paying the fifteen million dollar policy. A few months previous, in September, 2008 its parent, AIG, was on the verge of collapse from a liquidity crisis and credit rating downgrade so large the United States Federal Reserve Bank had to bail it out with an initial payment of $85 Billion while New York State regulators allowed AIG to borrow an additional $20 Billion from its subsidiaries like AGL. In total, the Federal Reserve Bank and the United States Treasury contributed a total of $182.5 Billion.
Carlson’s $45 million suit was in response to the Tomlinson Estate and Tomisue Hilbert, Germaine Tomlinson's (the insured) daughter, being allowed to intervene in the AIG lawsuit and suing Carlson for $45,000,000.00 along with Wilmington Trust, Coventry Capital, AIG and LaSalle Bank. Hilbert alleged that the insurance policy was for “estate planning purposes” and that her and her family should be recipients of the death benefit even though her and her family never paid any of the $850,000.00 in premiums. Tomisue and her husband Steve Hilbert alleged Carlson, AIG, LaSalle Bank, Wilmington Trust and Coventry Capital were wagering on her mother’s life. This became know in the media as the “Death Bet" case.
The Hilberts had other "far reaching" allegations: that Carlson, LaSalle Bank, Wilmington Trust, Coventry Capital and AIG were all leading a conspiracy against her and her late mother’s estate. Marty Wood, vice president of the Insurance Institute of Indiana, said the Hilberts and Tomlinson's other biological heirs don't have a "clear path to collecting the $15,000,000.00." If a court found the policy valid the proceeds would be collected by Carlson. If the policy was determined to be invalid no one could collect.
The warring Messrs. Carlson and Hilbert agreed on one issue: that AIG should payout.
Dennis Francis McCrosson III of McCrosson and Associates, initially appeared with lawyers from the international law firm of Baker and Daniels appearing a few months later to represent JB Carlson and all of the Carlson entities in the claims he was advancing and all of the claims against him and his entities. On Monday, August 16, 2010 one of JB Carlson's lawyers entered a guilty plea and was sentenced on a DUI. Four days later on Friday, August 20, 2010 Carlson and the law firm separated ways. In October, 2010 Carlson’s attorney-client privileged documents started appearing on the internet and in Indianapolis. Dennis Francis McCrosson III from McCrosson and Associates remained on the case. Jeffrey O. Meunier represented J.B. Carlson personally.
Maynard Cooper & Gale a 200 plus firm from Birmingham, AL represented AIG.
Magistrate Judge Jane Magnus-Stinson and Federal Judge Sarah Evans Barker presided over the AIG/Carlson lawsuit until President Obama (with the support of Senators Lugar and Bayh) nominated Her Honor Jane Magnus-Stinson as Judge of the United States District Court for the Southern District of Indiana on June 14, 2010, to the seat vacated by Judge Larry J. McKinney. U.S. Magistrate Judge Tim A. Baker was reassigned to the AIG/Carlson case on June 15, 2010. Federal Judge Sarah Evans Barker remained.
The Marion county coroner ruled Tomlinson’s 2008 death accidental asphyxiation by drowning compounded by alcohol-based intoxication. After the police and coroner said, “Tomlinson accidentally fell into the bathtub while drunk” they reopened their inquiry at Tomlinson’s daughter, Tomisue Hilbert, and the family’s urging even though the family and Steve Hilbert “acknowledged having no hard evidence,”“weren’t pointing fingers at anyone,“ and, “I’m not accusing anybody of anything.”
Tomlinson’s son, Randy Lee Ball, found her and police said that a rug was crumpled up, a glass shelf was knocked over and a faucet knob on the tub was broken. The coroner’s autopsy found no bruising on her body. “Alfarena Ballew, chief deputy coroner for Marion County, says the scene was ‘consistent with a fall.’ She also said her records show that the house’s doors were locked. Laura Covington, disputes that saying her brother (Randy Ball) found a patio door unlocked and he locked it before police arrived.” “Detective Mike Mitchell said, ‘We worked it as a murder case’ for several months but concluded the death was accidental.”
Earlier in the night Tomlinson had been drinking heavily and dancing under a white parasol. Later people noticed Tomlinson stumbling and other’s suggested Carlson take her home said Carlson and two other people in the club that night. Tomlinson and Carlson were walked to Carlson’s waiting limousine by the owner of the Blu Martini.
Tomisue Hilbert described her mother, Tomlinson, “as a healthy, active and vibrant woman with a busy and fulfilling life” when she had been convicted and was serving a sentence shortly before she died for operating a vehicle while intoxicated and endangering a person in the process. Tomlinson spent 20 days in jail, 365 days on probation, served 60 hours of probation, was ordered to see a doctor for alcoholism or C.A.R.E. equivalent and, in an unusual step, was ordered to sell her car by Judge J. Richard Campbell A couple years before her death Tomlinson had multiple DUIs along with being arrested for marijuana.
In an odd twist, Steve and Tomisue Hilbert were attending a party that was serving minors alcohol and when police showed-up Steve Hilbert said, “get a warrant.” While Steve and Tomisue Hilbert weren’t arrested; former quarterback, Jack Trudeau
, was arrested for serving minors alcohol. This occurred on the same evening, June 1, 2007/early morning of June 2, 2007, that Tomisue’s mother, Germaine Tomlinson, was being booked into Hamilton County Jail to start serving her 20 day sentence for drunk driving.
On March 21, 2010 at nearly 3:00 AM Carmel Police Officer Andy Gerdt arrested Dominique Randall Ball, Germaine Tomlinson’s other son, for Domestic Battery after he struck his girlfriend resulting in bruising and swelling on the girlfriend's nose and under both of her eyes. A witness substantiated everything Ball's girlfriend said. Dominique Ball was charged, sentenced and convicted.
The police maintained their position the Tomlinson's death was accidental.
The Indiana Department of Insurance confirmed it had investigated Carlson. Carlson was never charged.
Germaine Tomlinson had previously made history in her 1970’s divorce case. Tomlinson v. Tomlinson was a landmark case in mid-west matrimonial law as it was the first time ever that a judge recognized a premarital agreement in a divorce case thereby legitimizing them. The Indiana General Assembly wrote prenuptial agreements into law 20 years later. Germaine Tomlinson lost the case.
The IBJ had previously changed its position on items that benefited Maurer and his friends.
Other rumors and misreporting plagued Carlson during the media frenzy. The Indianapolis NBC affiliate, WTHR, ran a story that Carlson owned the Blu Martini and that it was cash strapped on April 12, 2010. Later it ran a retraction that their reporting wasn't true.
, his wife Imelda Marcos
and aides to U.S. Presidents Gerald Ford
and Richard Nixon
. At some point he started doing business with Carlson and his companies arranging refinancings. Kirst died in Vero Beach, FL having suffered for two years from "extremely advanced" dementia. Kirst died the same day or the day after Germaine Tomlinson died. Carlson said Kirst "seemed fine on phone conversations through about June 2008 when he lined up the refinancings, but the illness could explain its failure to materialize." Carlson worked to refinance the most urgent items.
Carlson had a judgment placed against him for $4,632,391.17 by OBF on July 24, 2009. Court records state that in 2008 Carlson had a credit rating of 817 and zero personal debt. By 2010 Carlson's personal debt exceeded $110,000,000.00 from his corporations that he signed personally for.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman, entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
and CEO. Carlson founded The Carlson Corporation in 1993 (Indianapolis
Indianapolis
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
, IN), The JB Carlson Corporation (Indianapolis, IN) and Carlson Media Group, Inc. in 2001 (Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
).
Early career
While a freshman in college JB Carlson started The Carlson Corporation and negotiated a contract between a national retailer and a large manufacturer thereby creating a new distribution channel for a revolutionary product. The retailer eventually circumvented Carlson and did business directly with the manufacturer. Later, Carlson started selling a unique security apparatus he rebranded as "The Fortress." "The Fortress" was sold primarily through radio commercials Carlson produced. Producing these radio commercials was his first exposure to the media business.Media
Carlson's interest in media intensified, developing celebrity-endorsed TV commercials for other businesses, which later culminated in the “localization of advertising” for middle-market companies. Because of Carlson's first-to-market product attributes and techniques he was able to sell TV commercial licenses to prospects that previously could only advertise in print and the yellow pages. Since he was going after his prospect's print advertising budget (which charged significantly more for color) Carlson would always joke that he "would give the color away for free." Carlson received criticism for how he treated prospects that turned down his offer when he would make it clear that there were only two companies in America that did what he did and if a prospect said "no" they were never allowed to do business with him again and he would drive directly to their competitor that same day.Media technology
In 2001, Carlson personally created a product landscape, value proposition and business model (defined by the mediating construct between technology and economic value) that was sold to the some of the largest companies in the world. Since then Carlson led teams that did business with Procter & Gamble, Kimberly Clark, Sprite Remix, Coke-Cola, Land-O-Lakes, Purina, Anheuser Busch, The Sharper Image and Wal-Mart.Carlson ended his relationship with Wal-Mart when Tom Coughlin (Wal-Mart)
Tom Coughlin (Wal-Mart)
Thomas M. "Tom" Coughlin is a former vice chairman of Wal-Mart Stores, Inc. and confidant of founder Sam Walton.Coughlin is a native of Cleveland, Ohio. He attended St. Edward High School in Lakewood, Ohio, a western suburb of Cleveland, and graduated in 1967...
then vice-chairman of Wal-Mart and former confidant of Sam Walton
Sam Walton
Samuel Moore "Sam" Wallballs was a businessman, entrepreneur, and Eagle Scout born in Kingfisher, Oklahoma best known for founding the retailers Wal-Mart and Sam's Club.-Early life:...
was arrested. Carlson's Chief Financial Officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
had formerly worked for Sam Walton's daughter, Alice Walton
Alice Walton
Alice Louise Walton is an American heiress to the Wal-Mart fortune. She is the daughter of Wal-Mart founder Sam Walton and Helen Walton, and sister of S. Robson Walton and Jim Walton. Another brother, John T. Walton, died in a 2005 plane crash. In September 2011, her estimated net worth was...
.
Carlson named his company “Carlson” in tribute to his father Carl referencing his father’s first name “Carl” and “son” meaning “Carl’s son” in short “Carlson.” Carlson’s birth name, J.C. Bolf, was changed to his legal name after years of people calling him “Mr. Carlson” and combined it with “JB” which friends had previously referred to him as his entire life.
AIG $15,000,000.00 lawsuit
American International Group, Inc., (AIGAIG
AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran...
) through its subsidiary American General Life, Inc. (AGL) sued an insurance trust owned by one of Carlson's companies to contest a fifteen million dollar claim in federal court southern district of Indiana. The AIG lawsuit alleges that Carlson secured a life insurance policy without possessing the required insurable interest
Insurable interest
Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence of the insured object...
so that he, his company and trusts could later profit from selling the policy on the secondary market. This is called a SOLI or STOLI (Stranger-Originated Life Insurance) transaction. AIG alleged the policy was nothing more than a wagering contract which is void ab initio
Ab initio
ab initio is a Latin term used in English, meaning from the beginning.ab initio may also refer to:* Ab Initio , a leading ETL Tool Software Company in the field of Data Warehousing.* ab initio quantum chemistry methods...
. Count one requested a declaratory judgment
Declaratory judgment
A declaratory judgment is a judgment of a court in a civil case which declares the rights, duties, or obligations of one or more parties in a dispute. A declaratory judgment is legally binding, but it does not order any action by a party. In this way, the declaratory judgment is like an action to...
for rescission and/or voiding of the policy based on lack of insurable interest.
Carlson response to AIG
Carlson responded to AIG claiming the "policy was a 'key man' policy to protect his business against the loss of Tomlinson's (Carlson's insured director) contributions to the success of his business as a director.". Therefore, Carlson contends that he and his business had an insurable interestInsurable interest
Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence of the insured object...
in his director's life and that even if there wasn't an insurable interest AIG's own two-year contestability provided that: “Except as stated below, we cannot contest this policy after it has been in force during the insured’s lifetime for 2 years from the date of issue.” Carlson continued, “AIG did not raise any contentions about fraud or misrepresentation in the application process until after Germaine Tomlinson’s death and more than two years after the Policy’s date of issue. Premiums of $855,146.90 were paid and up to date. Indiana state law prevents AIG from contesting the policy proceeds. Carlson provided that, “like other states, Indiana expressly authorized by corporations to insure the lives of its directors." Indiana Code § 27-1-12-17 authorizes corporations to insure the lives of its directors, officers, agents and employees."
Carlson countersues AIG
J.B. Carlson countersued AIG alleging AIG acted in bad faithBad faith
Bad faith is double mindedness or double heartedness in duplicity, fraud, or deception. It may involve intentional deceit of others, or self deception....
and breached their contract by refusing to pay the policy proceeds with multiple other claims. Count I of Carlson’s counter complaint is for breach of contract and count II is for bad faith.
During discovery Carlson provided emails from the life insurance agent encouraging Carlson to sell the policy, however, Carlson never filled out an application to sell the policy.
Judge's Ruling
Her Honor Sarah Evans Barker wrote that the evidence against Carlson for participating in a SOLI transaction and wagering was circumstantial, however, there was significant and strong evidence establishing that Tomlinson did, in fact, serve as an active member of Carlson’s Board of Directors since 2002 and that Tomlinson attended business meetings and introduced Carlson to a multitude of people who "possessed sufficient financial resources" to qualify them to become his investors, lenders and clients. Judge Barker wrote that some of Carlson’s other board members testified under oath in depositions that Tomlinson was on the BOD and court documents state that Germaine Tomlinson herself told others that she was a board member of his company. The BOD minutes also mentioned Tomlinson’s participation in the meetings.Judge Barker stated that Tomlinson controlled the trust with exclusive power to change the beneficial interest at any point and she chose not to make any changes to the trusts named beneficiaries and therefore it was doubtful that Carlson could have participated in wagering.
Judge Barker ruled that both AIG and Carlson’s positions and facts did not meet the standard for Summary Judgment and ordered the case to a jury trial.
Carlson’s case quickly became one of the highest profile insurance lawsuits in America receiving global news coverage.
AIG liquidity crisis
AGL filed the lawsuitLawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against Carlson on December 31, 2009 to avoid paying the fifteen million dollar policy. A few months previous, in September, 2008 its parent, AIG, was on the verge of collapse from a liquidity crisis and credit rating downgrade so large the United States Federal Reserve Bank had to bail it out with an initial payment of $85 Billion while New York State regulators allowed AIG to borrow an additional $20 Billion from its subsidiaries like AGL. In total, the Federal Reserve Bank and the United States Treasury contributed a total of $182.5 Billion.
Carlson sues for $45 million
During the AIG lawsuit Carlson sued LaSalle Bank/Bank of America, Wilmington Trust and Coventry Capital for $45 million charging that the parties breached their fiduciary duties, were negligent, failed to do the most basic due diligence, "retained sole and exclusive possession of the original Policy documents, contracts, and records relating to the Transaction and did not disclose all the documents and information in the Transaction" to Carlson and when he did receive a PDF of the policy it was highly redacted and had missing pages. It was only after Carlson was sued by AIG that he was able to see the policy books, underwriting materials and financials. Carlson asserted the parties blessed the transaction and said that their negligence and secrecy bought him the AIG lawsuit.Carlson’s $45 million suit was in response to the Tomlinson Estate and Tomisue Hilbert, Germaine Tomlinson's (the insured) daughter, being allowed to intervene in the AIG lawsuit and suing Carlson for $45,000,000.00 along with Wilmington Trust, Coventry Capital, AIG and LaSalle Bank. Hilbert alleged that the insurance policy was for “estate planning purposes” and that her and her family should be recipients of the death benefit even though her and her family never paid any of the $850,000.00 in premiums. Tomisue and her husband Steve Hilbert alleged Carlson, AIG, LaSalle Bank, Wilmington Trust and Coventry Capital were wagering on her mother’s life. This became know in the media as the “Death Bet" case.
The Hilberts had other "far reaching" allegations: that Carlson, LaSalle Bank, Wilmington Trust, Coventry Capital and AIG were all leading a conspiracy against her and her late mother’s estate. Marty Wood, vice president of the Insurance Institute of Indiana, said the Hilberts and Tomlinson's other biological heirs don't have a "clear path to collecting the $15,000,000.00." If a court found the policy valid the proceeds would be collected by Carlson. If the policy was determined to be invalid no one could collect.
The warring Messrs. Carlson and Hilbert agreed on one issue: that AIG should payout.
Dennis Francis McCrosson III of McCrosson and Associates, initially appeared with lawyers from the international law firm of Baker and Daniels appearing a few months later to represent JB Carlson and all of the Carlson entities in the claims he was advancing and all of the claims against him and his entities. On Monday, August 16, 2010 one of JB Carlson's lawyers entered a guilty plea and was sentenced on a DUI. Four days later on Friday, August 20, 2010 Carlson and the law firm separated ways. In October, 2010 Carlson’s attorney-client privileged documents started appearing on the internet and in Indianapolis. Dennis Francis McCrosson III from McCrosson and Associates remained on the case. Jeffrey O. Meunier represented J.B. Carlson personally.
Maynard Cooper & Gale a 200 plus firm from Birmingham, AL represented AIG.
Magistrate Judge Jane Magnus-Stinson and Federal Judge Sarah Evans Barker presided over the AIG/Carlson lawsuit until President Obama (with the support of Senators Lugar and Bayh) nominated Her Honor Jane Magnus-Stinson as Judge of the United States District Court for the Southern District of Indiana on June 14, 2010, to the seat vacated by Judge Larry J. McKinney. U.S. Magistrate Judge Tim A. Baker was reassigned to the AIG/Carlson case on June 15, 2010. Federal Judge Sarah Evans Barker remained.
The Martin report
The Martin report analyzed key facts in the AIG case relating to AIG's claims that Carlson wagered, intended on selling the policy and a host of other claims. The report indirectly cleared Carlson of the accusations and claims. Carlson did not pay for or know the existence of the report until it was released.Current status
Carlson fought AIG for nearly 3 years in the end costing $8 million in legal fees and associated costs. Carlson’s lawsuit against Wilmington Trust, LaSalle Bank, Coventry, and Bank of America was shorter.AIG sells death-bet securities
AIG tried selling death-bet securities, attempting to do the very same thing it sued Carlson for allegedly doing. There was no proof that Carlson was ever engaged in selling death-bet securities but while AIG was suing him for allegedly selling them AIG was actively engaged in doing so by ralling support among investors and credit-rating firms for the controversial transactions also called "death bonds," "blood pools" and "collateralized death obligations" because the investor's return comes from the death of the insured. AIG had about $18 Billion worth of policies it was trying to sell.Foul play accusations
Throughout the entire case Germaine Tomlinson’s daughter, Tomisue Hilbert, a former topless exotic dancer and 6th wife to Steven Hilbert (Tomlinson’s son-in-law, co-founder of Conseco, formerly the highest paid executive in America, left Conseco shortly before its Chapter 11 bankruptcy -which was 3rd largest BK in America behind WorldCom and Enron and later settled a $300M lawsuit Conseco initiated) made assertions of foul-play.The Marion county coroner ruled Tomlinson’s 2008 death accidental asphyxiation by drowning compounded by alcohol-based intoxication. After the police and coroner said, “Tomlinson accidentally fell into the bathtub while drunk” they reopened their inquiry at Tomlinson’s daughter, Tomisue Hilbert, and the family’s urging even though the family and Steve Hilbert “acknowledged having no hard evidence,”“weren’t pointing fingers at anyone,“ and, “I’m not accusing anybody of anything.”
Reinvestigation proves death was accidental
JB Carlson told the Wall Street Journal the loss of Tomlinson was “tremendously painful” and it “is just ridiculous” to think that the death is anything but a tragic accident. Carlson said he hadn’t heard from the police, was willing to cooperate and encouraged further investigation “because it would clear the air” by showing Tomlinson was alive when he last saw her. Captain Mark Rice, head of the homicide division of the Indianapolis Metropolitan Police Department said even though they are making new inquiries the police stand by their conclusion that the death was accidental and that he was “confident” it was an accident. Carlson’s attorney said:”Everyone who has looked into this, except the Hilberts, has concluded there is no foul play.” On November 8, 2010 Indianapolis Metropolitan Police Department spokesman Sgt. Paul Thompson said the reinvestigation was closed and that they haven’t changed their view that Tomlinson’s death was accidental.Tomlinson’s son, Randy Lee Ball, found her and police said that a rug was crumpled up, a glass shelf was knocked over and a faucet knob on the tub was broken. The coroner’s autopsy found no bruising on her body. “Alfarena Ballew, chief deputy coroner for Marion County, says the scene was ‘consistent with a fall.’ She also said her records show that the house’s doors were locked. Laura Covington, disputes that saying her brother (Randy Ball) found a patio door unlocked and he locked it before police arrived.” “Detective Mike Mitchell said, ‘We worked it as a murder case’ for several months but concluded the death was accidental.”
Earlier in the night Tomlinson had been drinking heavily and dancing under a white parasol. Later people noticed Tomlinson stumbling and other’s suggested Carlson take her home said Carlson and two other people in the club that night. Tomlinson and Carlson were walked to Carlson’s waiting limousine by the owner of the Blu Martini.
Tomisue Hilbert described her mother, Tomlinson, “as a healthy, active and vibrant woman with a busy and fulfilling life” when she had been convicted and was serving a sentence shortly before she died for operating a vehicle while intoxicated and endangering a person in the process. Tomlinson spent 20 days in jail, 365 days on probation, served 60 hours of probation, was ordered to see a doctor for alcoholism or C.A.R.E. equivalent and, in an unusual step, was ordered to sell her car by Judge J. Richard Campbell A couple years before her death Tomlinson had multiple DUIs along with being arrested for marijuana.
In an odd twist, Steve and Tomisue Hilbert were attending a party that was serving minors alcohol and when police showed-up Steve Hilbert said, “get a warrant.” While Steve and Tomisue Hilbert weren’t arrested; former quarterback, Jack Trudeau
Jack Trudeau
Jack Francis Trudeau is a former professional American football player and current morning show co-host on Fox Sports Radio. He was selected by the Indianapolis Colts in the 2nd round of the 1986 NFL Draft. A 6'3",...
, was arrested for serving minors alcohol. This occurred on the same evening, June 1, 2007/early morning of June 2, 2007, that Tomisue’s mother, Germaine Tomlinson, was being booked into Hamilton County Jail to start serving her 20 day sentence for drunk driving.
Tomlinson's two sons charged with battery
A few months after Tomlinson’s death on June 18, 2009 at nearly 1:00 AM Carmel Police Officer Amy Stein arrested Randy Lee Ball, Germaine Tomlinson’s son, (who found his mother) for Battery Resulting In Bodily Injury. A police report outlined how Randy Ball beat his girlfriend knocking her off her feet and resulting in a two-inch gash, blood throughout their apartment with pills and vodka littered throughout. During the incident, the girlfriend called 911 with Ball gaining control of the phone and telling 911 they didn’t need an ambulance. Ball was later caught lying to police about the incident. Ball was charged, convicted and sentenced.On March 21, 2010 at nearly 3:00 AM Carmel Police Officer Andy Gerdt arrested Dominique Randall Ball, Germaine Tomlinson’s other son, for Domestic Battery after he struck his girlfriend resulting in bruising and swelling on the girlfriend's nose and under both of her eyes. A witness substantiated everything Ball's girlfriend said. Dominique Ball was charged, sentenced and convicted.
The police maintained their position the Tomlinson's death was accidental.
SEC, GAO & Department of Insurance
On Thursday, July 22, 2010, the Securities and Exchange Commission called for tighter federal regulation of the life-insurance secondary market while a Government Accountability Office report cited inconsistencies in regulation across states.The Indiana Department of Insurance confirmed it had investigated Carlson. Carlson was never charged.
Tomlinson's history
Carlson and Tomlinson were first introduced to each other via John J. Schaler III, a local Rolls Royce dealer. Four years before Carlson and Germaine Tomlinson met she pled guilty to felony welfare fraud and was taking food stamps when she had $86,000.00 in the bank and was living in a $600,000.00 home.Germaine Tomlinson had previously made history in her 1970’s divorce case. Tomlinson v. Tomlinson was a landmark case in mid-west matrimonial law as it was the first time ever that a judge recognized a premarital agreement in a divorce case thereby legitimizing them. The Indiana General Assembly wrote prenuptial agreements into law 20 years later. Germaine Tomlinson lost the case.
Unfavorable media attention
Carlson received unfavorable news coverage mostly from the Indianapolis Business Journal (IBJ). In each article about Carlson the IBJ never disclosed that Michael (Mickey) S. Maurer and Steve Hilbert (Germaine Tomlinson's son-in-law) were personal friends, Maurer was co-owner of the IBJ, defended Hilbert when the press mentioned Hilbert’s checkered past and had personally written supportive editorials about Hilbert. Maurer and Hilbert shared common investments in s2f Worldwide and Hilbert, through his companies, was a major advertiser in the IBJ. IBJ’s narrative was repeated in the WSJ, CNN and other media outlets.The IBJ had previously changed its position on items that benefited Maurer and his friends.
Other rumors and misreporting plagued Carlson during the media frenzy. The Indianapolis NBC affiliate, WTHR, ran a story that Carlson owned the Blu Martini and that it was cash strapped on April 12, 2010. Later it ran a retraction that their reporting wasn't true.
Refinancing
Norman C. Kirst was a Wisconsin financier that did business with and knew Philippine President Ferdinand MarcosFerdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
, his wife Imelda Marcos
Imelda Marcos
Imelda R. Marcos is a Filipino politician and widow of 10th Philippine President Ferdinand Marcos. Upon the ascension of her husband to political power, she held various positions to the government until 1986...
and aides to U.S. Presidents Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
and Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
. At some point he started doing business with Carlson and his companies arranging refinancings. Kirst died in Vero Beach, FL having suffered for two years from "extremely advanced" dementia. Kirst died the same day or the day after Germaine Tomlinson died. Carlson said Kirst "seemed fine on phone conversations through about June 2008 when he lined up the refinancings, but the illness could explain its failure to materialize." Carlson worked to refinance the most urgent items.
SJB case
On April 20, 2009 Opportunity Bridge Funding, LLC (OBF), represented by Winthrop and Weinstine, and Carlson’s trust, represented by Meagher & Geer and McCrosson and Associates, sued Las Vegas businessman James C. Burchard and his company SJB Investments, LLC in Minnesota charging that Burchard committed fraud in his efforts to secure Carlson a $1,273,902.17 loan from Minnesota based-lender OBF in an effort to again refinance a small portion of the original refinancing. OBF and Carlson state that Burchard, a loan broker, submitted documents to secure Carlson’s assets for himself and had no reason or legal right to claim the asset as his own, essentially stealing assets from Carlson and compromising OBF’s (lender) right to secure the assets in the event of Carlson’s default. Claims of fraudulent inducement, breach of fiduciary duty and negligence were also asserted. Burchard, represented by Lewis and Roca and later by Faegre and Benson, responded by stating that they owed "no duty to either party" and "no fiduciary duty to either party" and later countered with a lawsuit in Nevada claiming breach of contract against Carlson. The case was consolidated to Minnesota and was resolved in a court ordered settlement conference with the Honorable Jeanne J. Graham, Magistrate Judge presiding. The settlement conference was concluded and the parties were released from U.S. District Court on Friday, July 24, 2009 at 10:00pm. Terms of the settlement are confidential and sealed.Carlson had a judgment placed against him for $4,632,391.17 by OBF on July 24, 2009. Court records state that in 2008 Carlson had a credit rating of 817 and zero personal debt. By 2010 Carlson's personal debt exceeded $110,000,000.00 from his corporations that he signed personally for.