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Texas Howard Hughes The Hijacking of Howard Hughes Rick Harrison Waller Lansden Dortch & Davis, LLP On April 5, 1976 Howard Hughes died en-route to Houston’s Methodist Hospital from Acapulco, Mexico Hospital officials had been told: • To admit him under the pseudonym “John Conover" • That he was in a diabetic coma (not a diabetic) • That the family did not want an autopsy • That the body was to be cremated Hughes life: Mother dies when Hughes is 16 Born in Father dies Houston in when 1905 Hughes is 19 Sued to remove his disabilities of minority Became sole shareholder of Hughes Tool Hughes rode the gusher of money from Toolco to LA and began making movies and building airplanes 19401940 1946 1947 1948 1950s 1966 Purchased control of TWA 1940 19461946 1947 1948 1950s 1966 Seriously injured in plane crash in Beverly Hills while test flying a plane for the Army - beginning of a lifelong drug addiction 1940 1946 19471947 1948 1950s 1966 Test flew the “Spruce Goose”, still one of the largest planes that has ever flown - could slip the fuselage of a Boeing 747 inside of it 1940 1946 19471947 1948 1950s 1966 Pat Lochridge and Rick Harrison - Spruce Goose 1940 1946 19471947 1948 1950s 1966 Senate Hearings - Hughes at his best- accuses a U.S. Senator of lying, refused to produce a witness when the Senate allowed its subpoena to lapse 1940 1946 1947 19481948 1950s 1966 Purchased Control of RKO 1940 1946 1947 1948 1950s1950s 1966 The jet age was coming and Hughes was consumed with deciding which jets to purchase for TWA • Dithering and mismanagement led to multiple stockholder suits by both TWA and RKO • $149 million default judgment for TWA stockholders when Hughes refused to appear for a depo • Begins Hermitic Lifestyle 1950s1950s -- 19661966 Romain Street switchboard 7000 Romain Street, L.A. Bill Gay (former driver) Nadine Henley (secretary) Drivers Bungalow No. 4 INSTRUCTION Subject: Special Preparation of Canned Fruit Logs 1940 1946 1947 1948 1950s 19661966 Hughes ordered to divest himself of TWA stock - $86/share • all time high - netted him $546 million • but had to leave California to avoid taxation Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Las Vegas 11/66 to 11/70 11/66 to 11/70 Las Vegas Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Las Vegas 11/66 to 11/70 11/70 to 2/72 Britannia - Nassau, Bahamas Nassau 11/70 to 2/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Nicaragua Las Vegas 11/66 to 11/70 Nassau 11/70 to 2/72 Managua 2/17/72 to 3/14/72 Managua, Nicaragua 2/17/72 to 3/14/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada Nicaragua Vancouver 3/14/72 to 8/29/72 Las Vegas 11/66 to 11/70 Nassau 11/70 to 2/72 Managua 3/14/72 to 8/29/72 Vancouver, Canada 2/17/72 to 3/14/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada Nicaragua Nicaragua Vancouver 3/14/72 to 8/29/72 Las Vegas 11/66 to 11/70 Nassau 11/70 to 2/72 8/29/72 to12/24/72 Managua 8/29/72 to12/24/72 Managua, Nicaragua 2/17/72 to 3/14/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada London Nicaragua Nicaragua London Vancouver 12/27/72 to 12/20/73 3/14/72 to 8/29/72 12/27/72 toLas 12/20/73 Vegas London 11/66 to 11/70 Nassau 11/70 to 2/72 8/29/72 to12/24/72 Managua 2/17/72 to 3/14/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada London Bahamas Nicaragua Nicaragua London Vancouver 12/27/72 to 12/20/73 3/14/72 to 8/29/72 12/20/73 to 2/11/76 Freeport, Bahamas Las Vegas 12/20/73 to 2/11/76 11/66 to 11/70 Freeport Nassau 11/70 to 2/72 8/29/72 to12/24/72 Managua 2/17/72 to 3/14/72 Left California in mid-1966, traveled to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada London Bahamas Nicaragua Nicaragua Acapulco London Vancouver 12/27/72 to 12/20/73 3/14/72 to 8/29/72 2/11/76 to 4/5/76 Acapulco Las Vegas 12/20/73 to 2/11/76 11/66 to 11/70 Freeport 2/11/76 to 4/5/76 Nassau Acapulco 11/70 to 2/72 8/29/72 to12/24/72 Managua 2/17/72 to 3/14/72 The Cocoon: 6 Handlers James Rickard Chuck Waldron Shifts: 6 Aids 3 on Allegiance to (former Worked at 3 off Bill Gay & drivers for Romain St. two week Nadine RKO) shifts Henley Four Significant Power Struggles Within His Empire 1 2 3 4 1957 1970 1972 1976 Bill Gay group Bill Gay encouraged Bill Gay had him encouraged him to fire him to sell Toolco (so moved to Mexico to Bob Maheu - head of Gay wouldn't disrupt Hughes Hughes Nevada have to answer to the planned installation of Operations, told him Houston managers). - Jack Real as “head of Gay and Henley Maheu was stealing Told him it was to be the Eastern Division" encouraged him to fire able to fund CEO Noah Dietrich – the TWA judgment may have you (reversed by USSC committed several months later.) Gay and Henley Continued To Isolate Hughes Wilbur Thain, M.D. Gay’s brother-in-law who kept Hughes supplied with drugs. 6 years of complete isolation… darkened bedroom, no TV, no news… Bill Gay, Chester Davis and their Family and Friends Used Hughes’ Fleet of Private Jets To Fly Around the World… 1972 - 1974 Bill Gay, Chester Davis and their Family and Friends Used Hughes’ Fleet of Private Jets To Fly Around the World… 1972 - 1974 1972 1973 1974 Mexico City London Hamburg Raleigh Geneva San Francisco Mexico City Guadalajara Dublin Amsterdam D.C. Tours, Norwich, Conn Shannon, Ireland Miami Frankfurt London NYC France (Davis farm) Exeter, England Shannon, Ireland Vienna Marrakech Madrid Paris Boston Nice Nice Zurich Biarritz Granada Miami Acapulco Zurich Zurich Madrid Miami Nice Guadalajara Mallorca London Honolulu LeftAcapulco CaliforniaAcapulco The Thein mid LastLast-1966, Few Few Days…. traveled Days…. to: 1966-1969 1970 1971 1972 1973 1974 1975 1976 Las Vegas Bahamas Canada London Bahamas Nicaragua Nicaragua Acapulco Hughes falls DOA out of bed – April 5, shears tumor Hughes stops Thain 1976 and dislocates eating and attends shoulder drinking party in Thain gives Bahamas Hughes an instead of injection flying in white in color Given more Hughes and more drugs slips into a Thain arrives Load Hughes to quell pain coma; aids (48 hrs later) and staff on plane … he shreds he dies 30 call Gay docs instead and Thain minutes out of seeing of Houston Hughes The Estate Litigation April 5, 1976 What jurisdiction would be the domiciliary jurisdiction to determine heirship, probate the will, appraise the estate, etc? Becoming more and more apparent Hughes might have died intestate, which would mean a huge inheritance tax for the State of Texas (16% of the appraised value of the estate) 1 Comptroller asked the AG to investigate 2 I filed an “Appearance of the State of Texas” in Probate Court No. 2 in Harris County, Texas Key Issue Challenge: Did Hughes ever Hughes left Texas choose a in 1924 and domicile of never came back. choice? Reconstructing Hughes’ life and health… Reconstructing Hughes’ life and health… Reconstructing The boat captain who spirited Hughes’ life Hughes from the Bahamas said and health… he had a long beard, long hair, long nails. August 6’ 1", 92.5 lbs Teeth rotten 1976 0 diabetes Bed sores Chronic renal Separated shoulder failure (drugs) After five Completely Lab results showed month fight, dehydrated large amounts of court orders codeine and other Autopsy drugs in Report No bowel content his system released to us “Looked like a Hypodermic needles Bataan death march broken off in his arms survivor” No cancer 70 Years No significant heart disease Old No other life threatening disease April 30, 1976 William Lummis, the temporary administrator of the estate, sent a letter to Summa Corporation (Hughes’ company), advising that Hughes died a Texas domiciliary Intestate Succession Howard William Lummis believed Hughes his mother was the closest heir and that there were Annette Lummis (Aunt) no paternal heirs. Closest Living relative Intestate Succession Texas Nevada Howard Howard Hughes Hughes Annette Lummis (Aunt) Closest Living relative Lummis, Elspeth DePould Gano, Agnes Roberts Houston Barbara Cameron and Rush Hughes Avis McIntyre, adopted by estoppel children of Rupert Hughes If Hughes died domiciled in Nevada, we are good, your lifetime contracts are good Lummis and If Hughes dies in Texas, we will probably Mickey West, go broke and your contracts will be void Andrews (although there is no tax difference Kurth Tax between Texas and Nevada) Partner gathers all of the aides and doctors in LA: If Hughes died domiciled in California, we are doomed, Bankruptcy If Hughes died domiciled in Nevada, we are good, your lifetime contracts are good Lummis and If Hughes dies in Texas, we will probably Mickey West, go broke and your contracts will be void Andrews (although there is no tax difference Kurth Tax between Texas and Nevada) Partner gathers all of the aides and doctors in LA: If Hughes died domiciled in California, we are doomed, Bankruptcy Did NOT disclose to paternal heirs: • His 4/30/76 letter to Summa • All Hughes federal tax returns filed in Texas Lummis wrote Paternal • All Tax Power of Attorneys listed his residence in Texas • Multiple interrogatory responses filed by Hughes and Heirs: Summa in later years saying resided in Texas • 1947 Senate testimony “Andrews Kurth has carefully • 8/11/44 “I am a Texan” letter investigated domicile, there is no question but that Hughes was a • Registered with Harris County draft board domicile of Nevada • Poll tax paid in Harris County when he died, and my mother, • Multiple drafts of wills (’25, ’39, ’44, ’47) all say domiciled Annette Lummis, is his sole heir.
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