Once again more testimony on DM's financial situation. so I’ll throw in my two cents on the matter, sorry for the length.
I’ve read that MA was CM’s baby, but in the final years before CM’s death (in 2006), it wasn’t really a going concern, it was more of a hobby. So even at that point there wasn’t likely much money coming in. My opinion is that for last 10 or more years there’s been little or no money coming in but salaries continue to be paid (WM, DM, MB and more?). WM put everything they had into the MRO venture to the extent that he needed to take out a $3.7M loan to finish it up. That loan would not have all come at once. The bank would have set it up as a line of credit that they could draw upon as they needed it and then it would be converted to a traditional loan with repayment terms once the MRO was up and running. That way you’re only paying interest on what you’ve used, not the whole amount. After WM died, DM quickly scuttled the MRO but continued to draw on the line of credit to fund his activities (potentially including real estate purchases). So as LW1 was cutting cheques and making payments she would have needed to keep an eye on the bank balance and contact DM each time it was running low and DM would make a draw on the line of credit. Near the end, the credit line was maxed out and cash was running low, as we’ve heard. I think DM had maxed out the credit line because the bank put a $3.8M lien on the 6 plex which I think was the $3.7M loan plus accrued interest. DM’s empire was starting to crumble. DM’s lawyer is right, he owned millions of dollars of stuff, but what the lawyer didn’t say it that none of that stuff generated revenue, in fact most of it was drain on resources between maintenance costs, property taxes, utilities, insurance, licenses, etc. It appears the only thing he owned that would generate revenue was the 6 plex and even that wouldn’t havebeen enough to cover the interest on a $3.7M loan. Once the line was maxed out or maybe once thebank heard the MRO license was cancelled, they would have wanted an accountingfor the $3.7M. The accountants can’tprovide what doesn’t exist, so according to DM “WM’s accountants let him downagain”.Once news came out that DM was arrested and the bank gotwind of it would have quickly called in the $3.7M loan. There was no cash to pay it off so that’s whyMB quickly went into action liquidating DM. They need to pay off the bank and they needed cash to mount a legaldefense. Plus if MB wanted to continueto collect her $6K monthly stipend, so she could continue to live in the styleto which she accustomed, they were going to need to liquidate. Another reason LW1 may have visited DM injail was to fill him in on what was going on with all of his stuff, MB may nothave been forthcoming with that information. DM trusted LW1 and I assume she was aware if she continued doing thebooks his arrest.
I think it’s ironic how DM’s lawyer were quick to discreditthe opinion of LW1. She was the personclosest to DM’s financial situation. Shemay not have been qualified to give a professional opinion on the financialhealth of the Millard group of companies, but she know what was in the bankaccount. DM’s lawyers try to portray DMas the rich, well-heeled heir to an aviation dynasty through the testimony ofpeople like SH and JV, who have even less financial information and are lessqualified to provide an opinion. So I amsupposed to accept their opinion over someone who’s seen his back account?
The legal fees for a defense in a case like this could easilyrun into the millions. You have tofigure the lawyers have been working on this for 3 years. DM is going to need every penny he can findjust to pay the legal bills for this and his other upcoming trials. IMO
