Bankruptcy examination of Peggy Newton led to first indications of possible fraud

Documents filed in the bankruptcy of Peggy Newton's former business, Evergreen and Amber, indicate that Mrs. Newton appears to have had total control of the financial end of the business.

Though the Chapter 7 bankruptcy claim was filed by Mrs. Newton's partner, Diane Pine, on July 21, 2009, in that filing and in an amended filing three days later, under the category for income from business, Ms. Pine wrote, "Unknown. I don't have those records in my possession."

Records in both the Evergreen and Amber bankruptcy claim and the one filed a year later by Mrs. Newton show that she was ordered to report to the law offices of Checkett and Pauly October 4, 2009, and bring with her the following items:

-All records and assets of Evergreen and Amber from June 1, 2008, through October 1, 2009

-Copies of all bank statements, canceled checks of Evergreen and Amber from January 1, 2008 through October 1, 2009

-All books, records and accounts of assets sold by Peggy Newton of Evergreen and Amber between January 1, 2008, through October 1, 2009.

One day after Mrs. Newton's sworn testimony, Diane Pine filed a motion to add a creditor to the Evergreen and Amber bankruptcy- Diane Pine in the amount of $100,000.

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All Turner Report coverage of the Peggy Newton case can be found at this link.