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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
A former trustee of the late singer James Brown will spend the next six months in jail for not paying more than US$400,000 as ordered by a court in 2007.
In February 2008, the Aiken County Clerk of Court accepted a US$433,000 irrevocable letter of credit (L/C), to keep David Cannon out of jail so that he could appeal charges that he wilfully violated court orders.
Millions misappropriated
Cannon, who is accused of misappropriating millions of US dollars of the late singer's money, maintained for more than a year that he could not afford to pay the money the court said he owed.
The court in the US state of South Carolina said he owed US$423,000 to Mr Brown's estate and attorneys acting in the case. Cannon was also liable to pay the court a US$10,000 fine.
Contempt of court
In December 2007 the court found Cannon in contempt of court and sentenced him to six months in jail unless he paid US$433,000 by 25 January 2008.
Cannon was able to avoid jail when the South Carolina Court of Appeals granted a petition for a stay of enforcement of the jail sentence on the condition he obtain a bond in the amount of US$433,000 while he appealed the contempt charge.
No L/C renewal
In February 2009, the Georgia bank did not renew the 12-month L/C Cannon had used as a bond and the court of appeals denied a request to extend the stay of enforcement.
Five out of the six heirs named in the will of the late singer - who died in December 2006 - were to share Brown's household belongings, but petitioned the court to have the trustees removed. The five heirs claimed the trustees had mismanaged the late singer's estate.
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