The estate of Hugette Clark, a multi-millionaire who had spent much of her life in seclusion, recently became even more complicated as new allegations of fraud have come to light. According to Bill Dedman, an investigative reporter for MSNBC, a state official appointed by the New York Surrogate’s Court to monitor the case has accused the estate’s two executors of fraud.
The allegations come from the Office of the Public Administrator of New York County. The Manhattan Surrogate’s Court had previously appointed the office as a third administrator in the case. The other two administrators, accountant Irving Wallace and attorney Wallace “Wally” Bock, had been administering the estate as co-executors.
The state official has accused the two executors of tax fraud, alleging they failed in numerous duties in their handling of her estate. Amongst the allegations raised is the charge that the two failed to pay the IRS over $41 million in owed gift taxes on gifts she made between 1997 and 2003. The interest on those unpaid taxes may cost the estate millions in interest and fines.
Ms. Clark died in May, 2011 and left behind an estate valued at an estimated $400 million. She had inherited the estate from her father, a former United States Senator and mining magnate. Each of the two administrators stood to earn about 2 percent of the estate’s value, or about $8 million, though that payment seems doubtful now. One of the administrators, Mr. Bock, has recently indicated his intention to resign.