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Show j hove Finance Backlash Investment Lawsuit j Charges Negligence )j 'n one of the continuing tremors elhan a year after the collapse of lA we Finance, a Salt Lake woman is Jvtaianding the company that in- ted her money in the Pleasant K 1 jrove finance company be ordered lo eurnher investment, nasuil filed in Third District Court Salt Lake County, Catherine P. r Kse is asking the court to find that ili Bosworth Inc. acted negligently i "Ccig"8 her m oney in lhe now Je(xe Caims lhe Grove in. W' lmenl which totaled $20,000 did meet 'he instructions regarding er money given to her broker at the f,rnpany. (l )3elawsuil says the Dain Bosworth flur- alleged'y advised Reese iro'ngebrUary 1978 10 invesl in tffl ih ce notes and assured her . "le notes were insured "under a Ij prance program." 'isurT6 Finance noles were never iuran r 'f lhey were such in" .s "ce lapsed," Reese alleges. mi oni!eS Were high risk securities, 'he conservative type Reese desired," the suit explained. Reese is asking the court to find Dain Bosworth negligent in making the investment and responsible for return of lhe $20,000. Grove Finance was closed in July 1980 by the slate commissioner of financial institutions after investigating in-vestigating reports, showed Ihe company was not honoring checks. That investigation showed irregularities in record keeping by the lender. Subsequent lo the slate investigation, in-vestigation, control of Grove Finance was wrested from the slale by Grove depositors when the company filed a Chapter 11 reorganization pel il ion in U S. Bankruptcy Court. In October, S. Hal Haycock, president of Grove, agreed to a $5 million consent judgment based on fraud defalcation, breach ot fiduciary responsibilities, and SrKnagcmenl of the Pleasant Grove firm. From the Enterprise Reprinled by Permission |