Temporary Halt Ordered For Agency That Handles Children’s Funds
NEWARK, N.J. (AP) _ An association that handles trust accounts for children who undergo transplants has been ordered not to complete any transactions until Monday, when a hearing is scheduled on fraud allegations against it.
Heather Templeton, 19, accused the Dallas-based Children’s Transplant Association of slipshod handling of her trust account.
Templeton, who lives in High Bridge and has cystic fibrosis, said in a federal court complaint that the association improperly transferred funds and failed to pay legitimate medical expenses.
On Friday, U.S. District Judge Nicholas Politan issued a temporary restraining order barring the association from completing any transactions until Monday. The judge criticized an affidavit the association filed on its behalf detailing its handling of the account.
″The affidavit that was filed here reeks of what I call sophistry. It reeks of diversion. It reeks of evasion,″ Politan said.
Politan ordered the association’s officers, Jack and Betty Bradberry of Dallas, to appear in court Monday morning.
Neither the Bradberrys nor their lawyer returned telephone calls Saturday. A woman who identified herself as a secretary of the association said Friday the Bradberrys were driving to New Jersey for the hearing.
Templeton’s lawyer, Vincent Paragano, said his client underwent a liver transplant in 1981 in Omaha, Neb. Her mother, Loretta Templeton, began fund- raising drives to help offset her daughter’s medical bills.
Paragano said Loretta Templeton signed an agreement with the CTA to manage her daughter’s trust account in 1988. A year later, he said, the association stopped returning phone calls and other inquiries about the trust fund.
Paragano said there is about $40,000 in the fund, but the association has not provided a clear accounting of the money.
The Templetons are seeking to dissolve the agreement with the CTA and place the funds in an escrow account.