Spending by a charity intended to honor a radio pioneer is being challenged by his granddaughter, who says he was tricked into leaving his fortune to it. The charity denies the charge and says the producer did not trust his family to protect his legacy.
Over the course of a decade, Matthew Forman emerged as a public face of the Himan Brown Charitable Trust, a charity with $100 million in assets and a stated purpose of furthering the legacy of Mr. Brown, who had created treasured radio dramas like “Dick Tracy” during that medium’s golden age.
As a director and, more recently, a consultant to the trust, Mr. Forman, 41, earned as much as $250,000 annually as he helped distribute millions of dollars in funds to deserving causes, often around Miami, where he was recognized with a community service award and spoke on expert panels.
“He was great to work with,” said Isabelle Pike, senior vice president of development at Branches, an organization that works with poor families. “He supported great programming here in South Florida.”
But a foundation run by a granddaughter of Mr. Brown’s has challenged Mr. Forman’s qualifications for those roles in court papers that say he apparently had no prior experience in the field when he was hired by the charity’s sole trustee, for whom he had worked as a personal trainer.
The challenge is the latest chapter in a long-running lawsuit by the foundation, the Radio Drama Network, against the sole trustee, Richard L. Kay, who helped design the trust as Mr. Brown’s lawyer.
Mr. Kay has argued that Mr. Brown created the trust to shield his money from a family from whom he had become estranged. But the suit contends Mr. Kay tricked Mr. Brown, at age 94 in 2004, into signing over his fortune to the charitable trust, whose spending Mr. Kay now controls. Mr. Brown died six years later.
Under a new estate plan, the suit argues, most of the fortune that had been designated to go to the Radio Drama Network was instead diverted to the new Himan Brown Charitable Trust.
The lawsuit argues that, under Mr. Kay, the trust has paid $1.5 million to Mr. Forman and donated millions more to causes tied to Mr. Kay, like his alma maters, Cornell University and Michigan Law School; his grandchild’s Montessori school; and the 92nd Street Y, New York, where he is on the board. That money, the suit asserts, should have instead been directed to the radio foundation, which Mr. Brown separately created to foster respect for the spoken word.
“I really want to let people know who he was and show the kind of work he did,” Melina Brown, the granddaughter, said in an interview. “But it’s not happening.”
Mr. Forman declined to be interviewed but his lawyer defended his qualifications, describing him as a former sales professional who had done well in college and while briefly attending law school at the University of Miami. In 2014, the Miami-Dade County public school system recognized him with a Community Partners Recognition Award for help the trust provided for children in Miami’s poorer neighborhoods. Several other grant recipients in Florida praised him and the charity for their work.
“He is a humble, bright, diligent and caring person who is one of the most professional people I’ve worked with in philanthropy,” said Melissa White, the executive director of the Key Biscayne Community Foundation, which has received grants from the trust.
The judge presiding over the case, filed in Surrogate’s Court in Manhattan in 2015, has ruled that the administration of the trust and its spending are beyond the scope of the lawsuit, which is focused on allegations that Mr. Kay deceived Mr. Brown into setting it up.
But the drama network has challenged that ruling and argues that Mr. Kay’s spending choices, including the hiring of Mr. Forman, are indicative of his self-interest at the time the trust was drawn up in 2004. It did not begin functioning until after Mr. Brown’s death.
Mr. Brown had created the radio network, a separate foundation, in 1984, and in a 1999 interview he spoke of it as being part of his effort to revive the lost “art of listening” in an era of reduced attention spans and competing media.
The communal experience of radio, where families gathered in living rooms for a broadcast, had its heyday from the 1930s to the 1950s, before the expansion of television. During that time, Mr. Brown directed and produced shows like “The Adventures of the Thin Man,” “Flash Gordon,” “Grand Central Station” and “Inner Sanctum Mysteries,” working alongside actors like Orson Welles and Helen Hayes. In 1990, he was inducted into the Radio Hall of Fame.
Several years before he died, Mr. Brown was sued unsuccessfully by his son, Barry, who said, among other things, that his father had molested him as a child, a charge that his father denied. Barry Brown sued again after his father died, challenging his father’s will in a case in which he accused Mr. Kay of manipulating his father into diverting money into the new charitable trust.
But in 2015, Judge Nora S. Anderson of Surrogate’s Court rejected his claim and cited witnesses who said Mr. Brown had “remained clearheaded and firm-minded even through advanced age.”
The drama network filed its suit later that year. Mr. Kay’s lawyers argued that the claims of fraud had already been adjudicated. But Judge Anderson decided that the new lawsuit could move forward.
In the current suit, Mr. Kay’s lawyers have accused Ms. Brown of trying to claim a larger share of the estate so as to draw larger administration fees. Mr. Kay said in a deposition earlier this year that Mr. Brown had expressly created the new trust to keep the bulk of his money away from Barry Brown and Barry’s two children, including Melina.
“I cannot be more dramatic about the venom displayed by Himan Brown with respect to his son, and it extended to his granddaughters, as well,” Mr. Kay said.
Melina Brown has denied seeking larger fees or that the breach between her grandfather and father ever extended to her. She said in an interview that her grandfather, whom she cared for in his last years, had loved her and wanted her to push forward with his mission to build interest in the spoken word. Before he died, he appointed her as a director of the Radio Drama Network and in his estate left her $3 million and his home in Connecticut.
Today, the radio foundation has about $20 million in assets. In the year ending June 2021, it gave $307,500 in grants, including to organizations that support Hispanic theater and storytelling in public schools. Pursuing the lawsuit against the trust has been expensive, with more than $2 million going to legal fees in the past two years, according to tax records.
The charitable trust controlled by Mr. Kay holds about $107 million in assets. It distributed nearly $4.5 million in grants in the year ending in March 2021, according to tax filings.
Mr. Kay receives yearly compensation as a trustee — $300,000 last year — which he shares with his law firm, Pryor Cashman, which has drawn fees of as much as $400,000 to represent the trust in recent years.
Lawyers for Mr. Kay say Mr. Brown’s name is fully associated with gifts made by his trust, like a 60+ Program named for him at the 92nd Street Y, New York. They say that when Mr. Brown was alive, his radio foundation financially supported many varied causes, of which only a few were affiliated with the spoken word. They also point out that the trust has supported multiple speaking engagements, such as appearances by Dick Cavett and Bill Clinton. Mr. Brown, they say, viewed Mr. Kay as a friend whose judgment he fully trusted in making grants, and they point to personal messages from Mr. Brown to Mr. Kay to illustrate their close relationship.
Mr. Forman said in a deposition last month that he had worked as a personal trainer for Mr. Kay and his family in New York, before moving to Florida. He had been working in sales, he said, when Mr. Kay hired him for the trust in 2011, and he acknowledged that he did not have prior experience in philanthropic giving beyond making gifts himself. In court papers earlier this year, he said he had also served at one point as a co-trustee of the trust.
New York State does not set specific professional qualifications for employees or consultants of a charity. But experts said charities, especially those with substantial funds, often seek to hire individuals with an understanding of charitable work, topical expertise and experience in fund-raising or grant giving.
Lawyers from Carter Ledyard & Milburn, who represent the drama network, were precluded from asking detailed questions about Mr. Forman’s work for the charity during his deposition last month, after Judge Anderson ruled that the suit did not directly concern Mr. Kay’s administration of the trust.
But in limited questioning, Mr. Forman said he had worked as an employee of the trust until sometime in late 2017 or early 2018. Tax records show from that point forward a company registered to Mr. Forman, Miami Philanthropic Consulting Inc., began to serve as an adviser to the trust. For the year that ended in March 2021, the consulting company was paid $250,000 by the trust, according to the tax records.
Mr. Forman said in his deposition that he had not spoken to Mr. Kay in years, but said he could not give an exact date.
He was also asked what he knew about the man whose legacy he had promoted. He said he knew that Mr. Brown had risen from a humble background to become a successful businessman who owned production studios and had stayed vibrant into old age.
“He produced radio shows,” Mr. Forman said. “I believe ‘The Thin Man.’ Maybe ‘Dick Tracy.’”
Source: Theater - nytimes.com
