| Peterson Borrows $100,000 from Parents, Uses House as Security November 27, 2003 Accused double murderer Scott Peterson used his Covena Avenue home as collateral for a $100,000 loan he obtained from his parents, according to documents recently filed with the Stanislaus County recorder's office. The loan's purpose was unclear, but legal observers said it likely was to help fund Peterson's defense against charges he murdered his wife, Laci, and their unborn son, Conner. Prosecutors are seeking the death penalty. The loan has become a point of contention between Scott and Laci Peterson's families because it is secured with the house, which is joint property. Scott Peterson signed the loan documents about a month ago. The loan gives Peterson's parents, Lee and Jackie, an equity stake in the home at 523 Covena Ave. Lee and Jackie Peterson may be able to collect that debt even if Scott is convicted, probate attorneys said. "We're aware of the transaction," attorney Adam Stewart said Tuesday. Stewart represents Laci Peterson's mother, Sharon Rocha, who has filed a lawsuit seeking to prevent Peterson from profiting from the case. Stewart said his firm would do "everything required by law" to protect the estate and the family's interest. "We intend to take the appropriate steps in due course." The loan also has raised questions about how Peterson is paying for his high-powered defense and stoked a simmering dispute between in-laws over the Petersons' property. Funding the defense was also at the heart of a motion attorney Mark Geragos filed Nov. 18 to have the police return Scott's pickup and $15,000 cash seized during the investigation. Prosecutors oppose turning over the money and the truck, saying they intend to introduce them as evidence at trial. The issue is to be argued at Peterson's arraignment Wednesday. At issue is whether Scott has the right to offer a stake in the home as collateral before a possible conviction, Modesto probate attorney John Resso said. Under the state Probate Code, a joint tenant who feloniously and intentionally kills another joint tenant, "has no rights by survivorship." "Does he have the right to give his 50 percent interest or the whole house?" he said. "Either the house could be entirely Scott's, or it could be half Scott's and half Laci's estate." The $100,000 loan amount could represent 50 percent or less of the value of the residence, according to estimates. The source of the loan also raises some questions, legal observers said. Why did Scott Peterson's parents get a claim on the residence rather than simply providing the money to their son or paying his legal bills? Laurie Levenson, a law professor and director of Loyola Law School's Center for Ethical Advocacy, said the arrangement could be designed to help ensure Scott Peterson pays back his parents. "This is a way for the parents to try and protect themselves a little bit," Levenson said, adding that traditional financial institutions may have been unwilling to take the risk. "The parents might be the only ones willing to invest in him," she said. "They might be the only ones who would take it as collateral, given the property's open status and his wife's family's interest in the property." It's also not uncommon for defense attorneys to get a stake in their client's property as part of theirfee for taking a case, although typically payment is made up front in criminal cases, Levenson said. Scott's attorneys have refused to discuss the financial arrangements. Jim Larsen, assistant public defender for San Joaquin County, earlier estimated that defense costs easily could top $1 million in the case. Lee and Jackie Peterson own San Diego Crating & Packing, a Poway shipping company. They refinanced their home in July, according to records filed with the San Diego County recorder's office. "The question is: Where is their money coming from, and is this sort of a way to launder other people's contributions?" Levenson said. "Is it a possibility? Of course it's a possibility. But I have no evidence of that." |
 |
| LACI & CONNER May Justice Prevail |
 |
| LACI & CONNER Justice Prevailed |
| RELATED STORY #1
RELATED STORY #2 HOUSE FOR SALE LACI CONNER SCOTT TRIAL PRELIMINARY HEARING WITNESS LIST CASE INFO VERDICT |
|
 |
J |