Estate of Quon CA2/2

BACKGROUND

Factual Background GPDR was incorporated in January 1968. From the time of its incorporation to the present, GPDR’s only asset was a 76-unit apartment complex on a 2.44-acre property in Glendale. Edward Eng, a transactional attorney and accountant, was the majority shareholder and president of GPDR, and managed and operated the company from 1968 until his death in 2008. Evan and Fay Quon were married in 1947. They had three children: Peter Quon, Diana Quon, and Dorothy Leung.1 Evan handled the financial affairs for both himself and Fay, who could not read or write English. At one time, Edward Eng served as Evan and Fay’s accountant. Evan purchased shares in GPDR in approximately 1968. A rudimentary stock ledger from 1968 showed that Evan owned shares in the company. In July 1972, GPDR issued to “Evan H. Quon” two share certificates totaling 33 shares of GPDR, equivalent to a 5 percent interest in the company. In the early 1970’s, Evan and Fay told their children that the couple owned a part of GPDR, or at least that Evan did. In April 1991, Evan and Fay established “the Quon family trust.” Evan and Fay were trustors and trustees of the trust, and Dorothy and her…