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Shadow Billionaire (2009) is a documentary that uncovers the extraordinary life of DHL co-founder Larry Hillblom. After his mysterious passing, his fortune and legacy sparked global attention, leading to revelations about his business empire and personal life. Through interviews, rare footage, and investigative storytelling, the film provides a fascinating look at ambition, wealth, and the lasting impact of one man’s choices.
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00:07:19Larry Hillbloom came to Saipan in the early 1980s. Saipan is part of Micronesia.
00:07:24It was given to the United States government as a trust territory after World War II.
00:07:32Today, this is America's farthest western outpost.
00:07:40People were mostly just curious about Larry. He was a little bit of a, of a, uh, an...
00:07:48I don't want to say eccentric, but a little bit of an unusual character.
00:07:52I think people felt kind of good that he chose to live out in the Marianas, you know.
00:07:56Must be something going out here that somebody that rich who could live anywhere in the world decided to live out here with us.
00:08:02I think there was a deep anarchistic strain in Larry.
00:08:06He knew he could get away with a great deal in Saipan that he couldn't get away with in America.
00:08:11Because there's no other explanation for some of the truly strange elements of this story.
00:08:16Why, for example, did Larry never get a pilot's license?
00:08:20He's flying these rickety old airplanes.
00:08:23Micronesia's eccentric billionaire during, you know, its history was really Larry Hillbloom.
00:08:29Larry had a couple of planes, and he really treated them like cars.
00:08:33You know, he was like parked in your garage.
00:08:38And it just didn't seem like Larry had a really good maintenance program.
00:08:44Larry could write a check for a Learjet.
00:08:46But Larry was interested in older planes as a hobby.
00:08:49And he just didn't think it was a real risk to fly the plane from Saipan to the neighboring islands.
00:08:54I did, and so did everyone else.
00:08:57Oh, no, I would never fly with him.
00:08:59I like to humor him, but not that way.
00:09:01I would always say, never, as long as I live, I will never fly with him.
00:09:06Here we are, sitting in this airplane in Larry Hillbloom and the helm,
00:09:11which is now pulling out of, like, an international airport and route to Paget.
00:09:18Oh, no, I never, I never flew with him.
00:09:21Are you crazy?
00:09:23Once.
00:09:26Thirteen and once.
00:09:27And I said, how long have you been taking this and that?
00:09:30I said, maybe five hours, you know.
00:09:33Can you have me a Coke?
00:09:36Yeah.
00:09:37We're trying to find Paget.
00:09:40Uh, James and Larry at this point are still not sure exactly.
00:09:52At this point, we're fast getting to the point of no return,
00:09:55because, uh, it's hard to say something about half a tank of gas, so...
00:09:59You walk on a very tight, uh, rope.
00:10:12Oh, and I mean, you were sure you did it, right?
00:10:16Yeah.
00:10:17You did it, right?
00:10:18Yeah.
00:10:19You did it, right?
00:10:20Yeah.
00:10:21You did it, right?
00:10:22Yeah.
00:10:23You did it, right?
00:10:24Yeah.
00:10:25You did it, right?
00:10:26Yeah.
00:10:27Right on.
00:10:28Yeah.
00:10:29Right on.
00:10:30Well, that was quite a landing coming in, you know.
00:10:33I liked it.
00:10:34It's expensive for someone that's had six beers for breakfast.
00:10:39I think that by any standard, most people would say that Larry was just a little bit different.
00:10:44But he wasn't seeing shadows and he wasn't doing, you know, unusually strange things other than, you know, sort of the fact that, you know, maybe he never grew up.
00:10:55He never spoke of his hometown or his family.
00:11:02He didn't want to talk about his family and he didn't, as far as I can tell, wasn't in contact with them during his time in Saipan.
00:11:10Larry's dad and his mother Helen, we were very good friends.
00:11:23Very good friends.
00:11:25Very good friends.
00:11:26And I remember going over to the ranch and Larry was in a crib and he was so full of energy that he had chewed off clear around the top rung of the crib.
00:11:52He looked like a, like a little kid, but he just did his own thing. Didn't care what anybody else did or said or anything.
00:12:00You know, somebody would look at something and they would just see what's there. He would see what possibilities are there.
00:12:07I'm sure a lot of people just thought, oh, this guy's somewhere out there where the buses don't go.
00:12:13He loved Howard Hughes. He thought Howard Hughes was a very fascinating person. And he liked the mystery in Howard Hughes. During the time we were growing up, Howard Hughes was reclusive. No one knew where he was at or what he was doing. And that fascinated Larry.
00:12:32We'd be walking down the street and he would disappear. Two or three blocks later he'd show up.
00:12:47Never know when he was going to show up or take off or, you know, when we were roommates in college, we wouldn't see him for days. I don't know where he went. Never did ask him.
00:13:02What surprised me more than anything was the fact that when he went off to law school, he rarely came back to town. It almost was as if he had severed his ties with the community.
00:13:17I knew Larry since he was a second year student here in the late 1960s. And he was always coming from a different perspective. And he came from a different wavelength than the other students.
00:13:38Well, I sort of took to him in any event. So I got to know him that way.
00:13:51Well, a lot of people thought he looked like a hick. I mean, he'd sort of slouch when he walked and he didn't care how he dressed.
00:13:57He had no money or very little. And in order to generate some income, he would pick up documents that had to be delivered the next day in Los Angeles.
00:14:07He would take the last plane out of San Francisco, get the first plane back in the morning, get to San Francisco at 8 and 12 and go to class.
00:14:14He did that five nights a week. And that's how he got the idea. I remember him telling me that he's forming a company. I remember it very well.
00:14:25Take yourself back to the middle 1960s.
00:14:32There were no faxes. There was certainly no e-mail. And if you had to have a signed contract, the only way to get it was in the mail.
00:14:50There certainly wasn't Federal Express in those days.
00:14:53DHL started in 1969. That was the year man first walked on the moon. The first 747 landed. And DHL opened up business communications around the world.
00:15:07It didn't become an international company right away. But Larry had a talent for business organization. And he was a major mover, if not the exclusive mover in the whole thing.
00:15:19Larry was 26 years old. He was a very nervous type of a guy. Seemed like he was always shaking. He was real, real shy. But he was brilliantly eccentric.
00:15:30In the early days, DHL had a tough time selling their service because people, number one, didn't believe we could do what we were saying.
00:15:40I served as his courier. We got free tickets, too. And we didn't do anything but check this baggage.
00:15:47At one point, the FBI came in and met with Larry because they were investigating why we were giving away free tickets. And so then the FBI became couriers for us, you know, on their off time if they wanted to go on vacation.
00:16:01The United States Postal Service started giving DHL some trouble, alleging that the documents that we were carrying was really first class mail.
00:16:14It's hard to understand today, but back then, there was one mail service. And they had a monopoly.
00:16:22Larry sued the post office and was successful in breaking the monopoly in the United States.
00:16:29It was just amazing. Not only for DHL, but for other companies as well.
00:16:36It was the beginning of the transfer of what was then documents worldwide. You know, first Honolulu and San Francisco and then it expanded to the Far East and places like Abu Dhabi and Beirut.
00:16:48Imagine opening up a city in the Middle East and they have no street addresses. And so trying to deliver shipments when there are no street addresses.
00:16:56I just think he saw the world as small as it really is.
00:17:03You have to trace today's globalism, the whole concept of globalism to Larry Hillbloom.
00:17:19Larry created an industry that had a huge impact on the world.
00:17:26So what we're talking about is a terribly inventive guy, a terribly ambitious guy.
00:17:39Given all the resources that lies behind that kind of achievement, you would expect a very carefully drawn up will, all the I's dotted, T's crossed and so forth.
00:17:49And that appears not to have been the case here.
00:17:55Larry Hillbloom's estate was not in tip top shape at the time of his death.
00:18:01The lion's share of the money was left in medical research.
00:18:04But there were holes in this thing.
00:18:06It said nothing about any kids.
00:18:08The only surprising thing was Larry was an attorney.
00:18:15And yet Larry left out the possibility of any progeny in his will.
00:18:21Any attorney will tell you that if you put the progeny or the possibility of offspring in the will and then either give them nothing or give them very little, you've covered that possibility.
00:18:33Larry just didn't do that.
00:18:35And that's where the trouble starts.
00:18:41Good evening, Commonwealth, and thank you for joining us. I'm Travis Kaufman.
00:18:44And I'm Deborah Lee.
00:18:46An 11-year-old Palawan boy is claiming to be the sole heir to the Hillbloom empire.
00:18:51Today in Superior Court, the child's mother, Kehlani Kinney, claims she had sexual relations with Larry Hillbloom.
00:18:57She got pregnant and had a child.
00:18:59His name is Junior Larry Hillbroom.
00:19:02He's 11 years old.
00:19:03Kehlani Kinney claims he's actually Hillbloom's illegitimate son.
00:19:08If they could prove that in court, he would become one of the richest little boys in the entire world.
00:19:13The claimants were going up against the representatives of the estate.
00:19:21Larry's business lawyer, Donacy, was running the trust for medical research.
00:19:26Chairman of the charitable trust, Peter Donacy, propelled the image of money-grubbing woman out on the take to take advantage of a dead man's estate.
00:19:34And Larry had signed the bank of Saipan as the executor or the manager of his assets.
00:19:44The bank's front guy is Joe Wechter.
00:19:47Joe Wechter, executor of the estate, denies Larry Hillbroom has illegitimate children.
00:19:52I don't know whose kid this is, but it's definitely not Larry Hillbroom.
00:19:56I mean, the responsible thing would have been to turn to the claimants and said,
00:19:59look, maybe they are, maybe they aren't Larry's kids.
00:20:02Let's find out.
00:20:03That would have been the correct response for them to make.
00:20:05They didn't want to do it.
00:20:06Joe Wechter is a longtime friend and a business manager for Larry.
00:20:15Wechter had started with DHL early in the DHL days, ran DHL United States for a while.
00:20:22And Peter Donacy had helped out Larry tremendously in the early days of DHL.
00:20:28And Donacy pretty much became the lawyer for DHL.
00:20:33There was no direct gift to Joe Wechter or Pete Donacy.
00:20:37So I'm sure there was jealousy, resentment.
00:20:40Why should these women make so much money, yet they get nothing?
00:20:44It was altogether in their interest to preserve that money.
00:20:48Because trustees are legally entitled to a percent of income generated by assets.
00:20:53If you're administering the billion dollar trust,
00:20:56this is not small potatoes where I come from.
00:20:58This is real money.
00:21:03Good evening. Welcome to Island Focus. I'm Grace Lee.
00:21:11In a way, the death of late billionaire Larry Hillbloom remains open-ended.
00:21:15His body never recovered.
00:21:17And so it is with the court case over the distribution over his massive estate.
00:21:22There's an ongoing battle to keep the kids from getting any money.
00:21:26The hinge on which the whole drama turns is the entry of Luhang.
00:21:38I came into the case to represent Juna Hillbrook.
00:21:42I've never held myself out as an intellectual lawyer, you know.
00:21:52Give me the facts and I'll argue it.
00:21:54If it's red, you want it to look green?
00:21:58You know, we'll make it look green, okay?
00:22:01The Hillbloom case was my first big probate case.
00:22:05And David asked if I would be interested in coming into the case.
00:22:11And I said that I was for sure.
00:22:13David told me it was Larry's kid and I believed him.
00:22:17And I believed him.
00:22:27Donacy called Junior Larry Hillbroom's attorneys greedy lawyers
00:22:31trying to line their pockets with the late billionaire's money.
00:22:34Probably just an attempt to extort money from the estate,
00:22:37trying to force us to settle so that they can get some money quickly without working for it.
00:22:43I saw it as a lawyer that I was representing someone who was, frankly, a helpless kid.
00:22:53Luhang is David going up against the Goliath.
00:22:59You have the San Francisco people thinking that, you know,
00:23:03they'll be able to do what they want in sight.
00:23:06There was no one to stop them or stand in their way.
00:23:11There's actually always been a history of that, that the people on the island, you know,
00:23:21sleep under coconut trees and really don't know anything about the law.
00:23:25So quite often, attorneys arrive from off-island to kind of teach us the way things work.
00:23:33The whole case is chaotic. It goes back to, you know, the very fugitive nature of Larry's existence.
00:23:55Why didn't Larry leave a very tidy estate?
00:24:05There are mysteries in this story that do not go away.
00:24:09Larry was scared of dying.
00:24:11Larry didn't want to die at a young age.
00:24:13And he deliberately was careful about the food he ate.
00:24:18And he would eat all sorts of things to lower cholesterol and he would not smoke.
00:24:23And when he reached the age of 51, I think it was, he said, you know, I've reached the magic age
00:24:28where a lot of men die before they get to this age from strokes and heart attacks.
00:24:32And if you can get to this age, you're probably going to live to be an old man.
00:24:36Larry was not a daredevil at all except flying airplanes.
00:24:52It was a test that wasn't passed.
00:24:54Well-known businessman Larry Hillbloom was trying out a new engine on his airplane.
00:24:58Something went wrong just before it crashed on Tinian yesterday afternoon.
00:25:02Although there were deep gashes to his face, Hillbloom suffered no brain damage.
00:25:05However, he will need major facial reconstructive surgery.
00:25:09Larry was certainly conscious when he arrived.
00:25:12He was obviously had a lot of facial asymmetry because of the injuries,
00:25:17which were primarily on the right side of his face.
00:25:20Basically, and this is a human skull, it involved this part of the face.
00:25:26The scrub nurse, the person who hands you instruments and whatnot, said,
00:25:29I don't think I've ever seen anybody have this many plates and screws in him in my life.
00:25:33We had that many fractures to put back together.
00:25:36This healing process proceeded perfectly normally.
00:25:40So what happened and when it happened, we could never put it together.
00:25:44We realized he wasn't seeing in the right eye.
00:25:48It was a huge disappointment to both of us, I'm sure, particularly to Larry.
00:25:52The reconstructive surgery made his face look a little bit unreal.
00:25:59Regarding that accident, has there been any follow-up with the FAA about your license ability to fly in that plane?
00:26:06Yeah, but that had nothing to do with the accident.
00:26:08The accident is an accident question.
00:26:10I mean, it's, it's, and I don't think the FAA ever found a cause.
00:26:13I mean, we're pretty sure what happened was that the carburetor, something was wrong with the carburetor and it came out at 200 feet.
00:26:20And actually, what I heard from the FAA is I did everything right on those.
00:26:24I shut the fuel off. I shut the master switch off.
00:26:26It was a pretty good crash landing as far as crash landings go.
00:26:29That covers the accident.
00:26:30How about the question of whether you were licensed to be flying the plane at the time?
00:26:34Has there been any follow-up on that?
00:26:36Well, there hasn't been any follow-up now, but there is no follow-up. I mean, you, the, uh, it's, uh, when you're not licensed, but you're not supposed to fly, but that's it. I mean, uh...
00:26:45It's sort of a bittersweet comment that stuck in my mind.
00:26:48Larry says, well, now I never have to worry about another airplane crash, because the odds of, of getting into two airplane crashes in one's lifetime is so remote that it's never going to happen.
00:26:57It's never anything I have to worry about.
00:26:59When I was first approached about the case, I had a, you know, I had an idea about this claim when Larry was alive.
00:27:15I would run into Larry all the time. Everyone would tease Larry in front of me that he's got a kid.
00:27:22And of course, you know, I just kept my mouth shut, you know, but my mind's registering all this. Larry denied it.
00:27:29But when he would leave, you know, I would ask, is that true? And I'd say, yeah, he's, you know, he's got, he's got a boy down there.
00:27:38There's always been a rumor about the boy from Palau.
00:27:43Larry had been in Palau, and he had met Kehlani Kinney, and they had had basically a one-night relationship.
00:27:52And the boy grew up in his grandmother's house with a picture of Larry. That's your father.
00:28:07And I keep on asking Larry, is that your son? He keep on denying, you know.
00:28:12It's not my kid, it belongs to somebody else.
00:28:14He and I are good friends, so one day I did ask him. I said, Larry, just between you and me, I promise I won't tell anybody.
00:28:20Are you his father? I promised I wouldn't tell anybody.
00:28:26In the old days, guess what the best proof was?
00:28:43Bring the child in and show the judge how the boy looks, you know, spitting image of the father.
00:28:53It was an odd situation in that there was no body found for Larry to obtain DNA.
00:28:58Larry just disappeared.
00:29:07The only body that wasn't found was Larry's. You would think there was someone like him. I mean, when this guy Fawcett disappeared, I mean, they just, they searched everywhere. They spent a fortune looking for him.
00:29:14When Larry disappeared, the search was stopped very quickly. I think they didn't want to find his body because they knew that there was a child out there. You find the body, you find DNA.
00:29:35That day Larry was flying to the northern islands. So they were not that far away. And there's no word came from them. No cell phone calls, no distress beacon, nothing.
00:29:52Not even one-fourth of their plane was found. By just the small piece, it's very hard to determine what causes the crash and why only two bodies were found, not three.
00:30:09Mystery.
00:30:27First of all, we had to prove that the boy was Hillbloom's child, right? So that was goal number one.
00:30:35The obvious way to solve the case is to get blood samples from Hillbloom's relatives. That would have had a good chance of solving the problem, you know, in two days.
00:30:45They refused, and there was no way to force them to do it.
00:30:49In a case like this, what you have to hope for is that you can find some biological material that the circumstances would suggest are from the person you're interested in, hair or blood, or maybe semen.
00:31:02And that kind of evidence can be found in residences where people live.
00:31:06The attorney for junior Larry Hillbloom wants to search the Hillbloom house for genetic evidence.
00:31:12The court last week ordered the estate executor, Joe Wechter, not to clean or disturb anything in the house.
00:31:19We went and searched Hillbloom's house for the DNA.
00:31:26There's not a single thing, not a picture, not a comb, not a underwear, nothing of Larry Hillbloom.
00:31:37I was surprised that everything seemed to be very clean. At that time, there was no dirty clothes in the corner.
00:31:45It seemed like a place that had been maintained in a very neat and clean state all the time.
00:31:50Didn't bode well for finding the kind of evidence that we were looking for.
00:32:01We dug through bathtub drains and sink drains, and typically hair gets caught up on those things.
00:32:07It's the cleanest pipe he's ever seen in his life, you know.
00:32:13I remember him telling me he was looking around his bathroom and he was, you know, how clean bathrooms are normally, you know.
00:32:20You know, in hotels, because every day, you know, they cleaned it.
00:32:24He said Hillbloom's pipe was cleaner.
00:32:27But that's what an investigation is all about.
00:32:29You know, there are more false trails than in any investigation than there are fruitful ones.
00:32:37I mean, what we found out later about what happened was, you know, sort of, it made a lot of sense.
00:32:44But I wasn't suspicious really before that that anything strange had gone on.
00:32:50All my instinct as a criminal lawyer, you know, I mean, you know, the radars, everything, you know.
00:33:00Red flags were, you know, flying all over.
00:33:13At the time of Hillbloom's death, Larry was living with a girl named Josephine Nocasa.
00:33:18She was Larry's living girlfriend.
00:33:21And she had made a claim also against the estate.
00:33:29I was with him when he met Josephine.
00:33:31And he was just instantly smitten with Josephine.
00:33:34I couldn't see why.
00:33:37Because Josephine didn't speak much English.
00:33:39And all she said was, no, no, no.
00:33:42Every question, no.
00:33:43And I thought, she's why, Larry, why are you wasting your time with this girl?
00:33:47But there was something about her that just struck him.
00:33:51And they were instantly inseparable.
00:33:54Always held her at a higher level than the other girls.
00:33:59I even told Josephine, you're one of a kind that I think Larry has feelings for.
00:34:05And she even told me, she said, really?
00:34:07I said, I absolutely believe that there's something that clicked with you and Larry.
00:34:10She was jealous and she suspected Larry of seeing women behind her back.
00:34:13So she used a black marker and she wrote Josephine on all of his underwear.
00:34:19So he had underwear that said Josephine.
00:34:23Larry actually had a couple of passports.
00:34:25So the passport that she would look at when he got back on Saipan wasn't the passport he was using to check into different ports of the world.
00:34:35It's not wise on a small island to cheat.
00:34:39So that was a reason not to go out to the bars in Saipan.
00:34:43He liked to travel around to the hot spots of Asia.
00:34:46He enjoyed having a good time.
00:34:53After Larry's first accident, Josephine wrote up a will.
00:34:57And she tried to get Larry to sign it.
00:34:59But Larry told her no way he wasn't going to sign the will.
00:35:02That if he signed the will, then she might want him dead.
00:35:05And he wanted her to be concerned about his well-being.
00:35:08And so he refused to sign the will.
00:35:11After Larry disappeared, she was still living in the house.
00:35:25She was very broken up.
00:35:26She didn't know what to do.
00:35:27She lived with Larry for 10 years.
00:35:29But she really had no money of her own.
00:35:32She knew all of Larry's friends.
00:35:35And Joe Wechter was a close friend of Larry's.
00:35:38What I was hearing from Joe Wechter is that they were going to do the right thing by Josephine.
00:35:43That I shouldn't worry.
00:35:44They were going to do the right thing by Josephine.
00:35:46And then, but nothing ever happened.
00:35:55I got involved representing Josephine.
00:35:57And I started hearing, Josephine's just a maid.
00:36:00She's got a contract approved by the Department of Labor.
00:36:03She's just the housekeeper.
00:36:05Josephine, that was a real tragedy.
00:36:08She was the one who was suddenly left with nothing.
00:36:10And I think people on the side bed actually felt sorry for her.
00:36:24It was kind of ignore reality, create a story, and then sell the story.
00:36:28And so, you know, the story is Josephine's a maid.
00:36:31These are prostitutes who are making it up.
00:36:34It wasn't really Larry they had been with.
00:36:37These young girls, most of them Filipinos, claiming that Larry was the father of their children,
00:36:43were poor, uneducated, and ruthless with no connections.
00:36:47And they simply didn't have many options.
00:36:50There was kind of an elitist and also to a degree racist attitude.
00:36:55A poor lady from the Philippines, you know, why in the world would she need $40 million?
00:37:01Why should we give somebody like this so much of the money?
00:37:05The air claimants had everything to fight for because most of them were coming from really impoverished circumstances.
00:37:11One of those kids was sleeping in a cardboard box.
00:37:19In the Philippines, there is a very big divide between people who have money and people who don't have money.
00:37:28The poor people in the Philippines tend to be very poor to the point where there's still starvation,
00:37:34there's serious malnutrition, children don't go to school.
00:37:38And so what often happens in the Philippines is some daughters will work in the bar industry to help provide money to the family.
00:37:47As far as I know, when they get to be at the age of physical consent, I don't know legally.
00:37:54These girls were 13, 14 years old.
00:37:57I think probably the proper term is puberty.
00:38:01The parents would sell them to some agent who would bring them to a bar to work and make money as prostitutes.
00:38:07I don't remember anybody ever saying, what can we do for these children?
00:38:17How can we do the right thing for the kids?
00:38:20No one ever said that.
00:38:22People who thought that these kids didn't deserve any of the money.
00:38:26We had people tell us that, you know, why should a Filipino kid be rich because of Larry Hillbloom?
00:38:36When we're going to spend the money on the Noble College of Medical Research?
00:38:40Wouldn't this money, you know, be better served by being spent in the United States?
00:38:46Why should they get all this money?
00:38:49My answer was simply because they're Hillbloom's kids.
00:38:52Simple as that, the law allows it.
00:38:55And I don't think that they really looked upon these kids as real people.
00:39:08In that part of the world, people take care of their families.
00:39:20If they can't take care of a kid, they'll ask another relative to take care of the child.
00:39:30After the rumors started surfacing about Junior Hillbloom, Peter Donacy advised Larry on numerous occasions, you've got to revise your will.
00:39:41And he refused.
00:39:43There was some speculation that Larry knew that he had kids, and he meant not to have these kids disinherited.
00:39:50Larry himself, in his role as Special Judge in the Saipan High Court, participated in writing an opinion, which firmly established as law, the inheritance rights of children born out of wedlock.
00:40:06I mean, it was almost as if he were writing law that addressed his particular situation.
00:40:23I have to believe that he didn't want to disinherit the kids, at least not then and there.
00:40:28The people on the other side, they said they had to find another way to try and stop the children's claims from succeeding.
00:40:37I'll tell you why I really went after them.
00:40:49OK?
00:40:50Because they treated me like shut.
00:40:52We had a meeting in San Francisco, and we were at Peter Donacy's office.
00:40:59We came to an agreement that in the following week, they'll give us an offer in writing.
00:41:06And I remember going up to Saipan on Monday.
00:41:11And after the hearing, I asked, do you think I should fly home or just stay here and wait for the offer?
00:41:19I said, Dave, why don't you hang around?
00:41:21The offer's coming.
00:41:23No.
00:41:24So Wednesday, no offer.
00:41:25Thursday?
00:41:26I said, I better go home.
00:41:27And I can come back when you have it.
00:41:28He said, no, Dave, why don't you hang around?
00:41:29OK?
00:41:30Joe Wake is coming in this evening.
00:41:31So Friday morning, I go up there about 10 o'clock.
00:41:46He sent his associate or partner, one of them, who came and said, oh, we decided there's no offer.
00:41:58So I said, OK?
00:42:00And I'll tell you this.
00:42:01I swear to God, that's what this, personally for me, that's what this was all about.
00:42:11That's when I went after them.
00:42:15I said, I'm about to teach them this evening.
00:42:19They should have given me the offer.
00:42:22I would have been lazy.
00:42:41The attorney for would-be heir, Junior Larry Hillbroom, questions the motives of Executor
00:42:51Joe Wechter, Hillbloom Trust Chairman Peter Dodese, and he started picking apart the way Joe
00:42:57Wechter got control of the estate.
00:42:59I asked the judge, you know, for them to produce certain things.
00:43:04So they stood up and said, you know, oh, Your Honor, no problem.
00:43:07We'll give it to him tomorrow.
00:43:09There was a stack of this high of documents, you know, all these loan agreements and, you know, mortgages and everything.
00:43:19So I said, here's the estate, you know, it's a lot, you know.
00:43:28So what do you want to do?
00:43:30I said, tell him what, okay, why don't you just leave it and we'll meet back here at 4 o'clock.
00:43:36He says, oh, you're going to go?
00:43:37He said, no, I'm going to stay here and read it.
00:43:39And I remember because I was with Joe Hill and Joe Hill told me afterwards, says, you know, you should have seen their face.
00:43:45Because Joe believed they never expected that I would sit down and read everything, which I did.
00:43:52I read everything that I could, you know.
00:44:08And next day I went to court and told Judge, guess what, Judge? Huh?
00:44:13Right after Larry's disappearance, Donacy and Wechter swoop in and take over the bank of Saipan, which Larry had assigned over the bank of Saipan.
00:44:35Which Larry had assigned to oversee his estate. The most extraordinary thing. I mean, it happened with such alacrity.
00:44:47It makes you think that they've been planning this for years.
00:44:51They borrowed money from the estate to pay for the stock in the bank.
00:44:57And that is wrong on so many different levels. But that's what they did.
00:45:01So I come to you and I say, let me buy, you know, 40% of you, but lend me the money to buy it from you. Okay? Which is exactly what happened.
00:45:10The plan clearly was to take over the bank, which would then allow them to take over the assets.
00:45:15The judges order to kick Joe Wechter off the Hilden case. Wechter was managing the affairs of the Hilden estate until the bank was suspended.
00:45:24They didn't expect anyone to look closely at Motherwood Point.
00:45:30Without Lujan, they probably would have gotten away with it.
00:45:33We thought we were being retained to prove that Junior was Larry's son.
00:45:47But when we saw what was going on, we realized that we had to function as the executor and save the assets.
00:45:56The way Hillbloom did business was very convoluted.
00:46:00In Vietnam, he put all that money in and his name wasn't on any documents.
00:46:05He put in about $102 million into Vietnam.
00:46:08I've been through all the corporate records of the company in Vietnam.
00:46:11I've been through the minutes of every meeting going back to 1992.
00:46:16We know he was there.
00:46:20But his name doesn't appear in any document.
00:46:23He had to do it that way because he was there pre-embargo.
00:46:26Americans weren't allowed to invest money in Vietnam.
00:46:29The Justice Department sent him a letter asking to know what he was doing in Vietnam.
00:46:35And he wrote, fuck you, on the letter and sent it back to the train channel.
00:46:44Larry's so true.
00:46:46It comes to paperwork.
00:46:47Legal.
00:46:50So if you go and investigate that American company, you don't see Larry.
00:46:55Because on top of that one, you create another corporation, maybe 10, 15, you know, on top of that.
00:47:02So you don't know which one is, which one is which.
00:47:06Who wants this golf course?
00:47:11Just a week ago, I found out there's another $40,000 that belongs to the estate in Hong Kong.
00:47:16You know, it just keeps coming up.
00:47:18When he died, I found out that he had left a $3 million apartment complex on Saipan in my name.
00:47:25So I could have said, I'm keeping it. It's in my name.
00:47:30But I didn't. I gave it back to him.
00:47:32The one important ingredient and part to keeping his estate together was Larry.
00:47:40No one else could have done it.
00:47:42There was no primary reason to the empire that he built.
00:47:45Hillbloom and his friends were like an octopus.
00:47:51And Larry was the head.
00:47:53And all these guys that worked for him were nothing but tentacles.
00:47:57And when Larry died, you know, it's like the head being cut off.
00:48:01And all these tentacles are out there flailing, you know.
00:48:04He was careful with his friends.
00:48:21So most of the people who were friends with Larry were friends with inside of a box.
00:48:26They were his friend with regard to the federal takeover issue.
00:48:29They were his friend with regard to taxation.
00:48:31They were his friend with regard to chasing girls.
00:48:35He didn't want people to have a good handle on him.
00:48:38He recognized people thought he was crazy and unpredictable,
00:48:41that that gave him an advantage.
00:48:44He truly enjoyed his privacy.
00:48:45I mean, he had people work for him that were on the cover of Forbes,
00:48:48but it was never him.
00:48:50He liked his anonymity.
00:49:01I think he was counting on the fact that nobody really knew who he was.
00:49:05After Wechter is tossed off the estate,
00:49:19after the ploy they attempted to pull off at the bank, the takeover of the bank,
00:49:26somehow the state attorney general from California gets pulled into the case
00:49:32to reinforce Adonacy and Wechter. God knows what the back channels might have been.
00:49:50There was so much money in Larry's estate.
00:49:56And there were the lifestyles of the people that made claims were such that
00:50:08anything that they could shake out of an estate as large as this would be a great boon to them.
00:50:13And there was a great deal of opportunity there.
00:50:17Why would the attorney general of California get involved with this thing?
00:50:21Well, the University of California had been designated in Larry's will.
00:50:26He's a beneficiary of Larry's estate.
00:50:29He's a billion dollars riding on this thing.
00:50:33When Peter Donacy reached out to the attorney general of California,
00:50:36we thought that we could just go in and educate them that,
00:50:39look, there's all this wrongdoing going on,
00:50:41that you guys are on the wrong side here.
00:50:43We're trying to protect the assets and you ought to be in there helping us.
00:50:46Well, that was completely naive because of the state of California's financial interest in the state.
00:50:56The reaction was, what's next?
00:51:04Then it became a frenzied fight to hang on to something.
00:51:07The lawyers then descended.
00:51:08Peter Donacy went and hired a big-time law firm to represent the Hublin Trust.
00:51:13And then the assets themselves, they hired their own lawyers of law firm from California, L.A., New York.
00:51:24It turned into a real circus with dozens of attorneys and hearings several times a week.
00:51:30It overwhelmed our judicial system.
00:51:35This is the biggest thing that's ever happened in Saipan, for sure.
00:51:39Some of these law firms were building the estate one million a month.
00:51:42One million a month.
00:51:45Imagine that.
00:51:46They came to this tiny island in the middle of the Pacific involving lawyers that were not of their ilk.
00:51:59We had a very, very colorful opposing counsel in the name of Mr. Lujan.
00:52:06I remember his first appearance.
00:52:08I was watching him, you know, this man reminds me of a snake.
00:52:11And we know what to do with snakes in Guam.
00:52:14We cut their head off with machetes.
00:52:16He and I butted heads at every turn.
00:52:21A criminal lawyer learns to utilize theatrics.
00:52:31That's why I call him the rooster.
00:52:33First meeting of Mr. Lujan was in some very provocative court appearance where he'd filed a challenge suggesting that the judge himself might have illegitimate children and shouldn't sit in the case.
00:52:51And I, at least, had never accused a judge without supporting evidence of having illegitimate children.
00:52:58And I realized I was now in a different jurisdiction.
00:53:03One of the trust lawyers one day, you know, was wandering around in a courtroom and he was kind of a corpulent guy.
00:53:17And he had his stomach in between David Lujan and David's line of vision and cross-examining a witness.
00:53:25So David stood up and in his very courtly courtroom tone said,
00:53:28Your Honor, he's doing it again. His big stomach is blocking me. Can you tell him to remove that big stomach?
00:53:40Things aren't always what they appear to be.
00:53:42We got some background materials about Larry Hillbloom and as we dug deeper and deeper into it became very fascinating.
00:53:53And we had an interesting time with it given the facts surrounding Larry's life.
00:54:02Larry was a colorful and interesting character. He found adventure in places where few of us look for it.
00:54:12Look for it.
00:54:24Our local council in the Philippines gave me a tour of Larry Hillbloom's Manila.
00:54:30The clubs were unbelievable. Three or four or five hundred women in them who are classified either as dancers, nude dancers or guest relations officers, GROs, which I thought was the most formalistic title I'd ever heard for a hooker.
00:54:48When I interviewed one of the ladies in charge of the bar that he frequented, she told me when Larry would come in, she would arrange young girls, ten across.
00:55:04Larry would look at the young ladies and either choose one or decline the entire line and then they would step to the back and then a new line would come up.
00:55:14Larry would come up. He was always interested in young ladies that were from the farm, people from back parts of the Philippines or Palau, virgins.
00:55:27And I asked him how could he possibly know that?
00:55:31She said that, well, he would take them to the hotel and show them the shower.
00:55:37If, in fact, they knew how to operate a shower, he knew that they obviously were in the facility or a facility similar to that before, so therefore he would eliminate them.
00:55:53He told me about his relationships with women and he explained that he would only have sex with virgins because he didn't want to get AIDS.
00:56:08So he went into a long explanation of the millions of dollars that this had cost me.
00:56:15I forget the details, buddy, but I know he said millions.
00:56:22My name is Mommy Annie.
00:56:25Since when I worked in the bar, it's 1990.
00:56:30Small guy with eyeglass.
00:56:34Yeah, I remember him.
00:56:36Larry, he's a nice guy.
00:56:38Every night he'd go bar hop, take a girl, especially young girl, cherry girl.
00:56:45And my specialty is cherry girl.
00:56:48In one of the depositions, I understand, one of the young ladies testified about how Larry would take a spoonful of iodine or some other chemical and pour it down his body.
00:57:06down his penis in order to kill any germs that he might.
00:57:13He never, he never, I am told, enjoyed sex with a prophylactic and therefore he had to take certain precautions to prevent from getting disease.
00:57:24And it was the Philippines that really bothered me with an upfront exposure to what poverty requires people to do and the just plain sinfulness of Westerners taking advantage of that.
00:57:40It's appalling.
00:57:43We're talking about people who are living by something other than a 20th century American morality.
00:57:48It all was kind of shocking.
00:57:59I have a lot of newspapers, but I don't think that needs to be brought up again.
00:58:07Do you? No.
00:58:09No.
00:58:10Everybody makes a mistake.
00:58:13You would hear things and then people would have magazine articles and stuff.
00:58:21And none of it was good.
00:58:22I was a little puzzled that he had that need.
00:58:32He had a girlfriend, Josephine, and she was very attractive.
00:58:38I just couldn't understand why he'd be off somewhere else when she was there at home.
00:58:44He didn't cover up his lifestyle.
00:58:51I remember him talking to an executive with Continental Airlines about how many girlfriends he had.
00:58:57And the guy should consider doing the same thing.
00:59:00Come on to the Philippines, I'll introduce you, we can find you a girlfriend, no problem.
00:59:05And the guy was just so uncomfortable with the conversation and Larry kept going just I think to go with the guy.
00:59:11Those of us who are educated and you know comfortable in this country affect great shock that American businessmen in the Philippines are being serviced in precisely the same way with the encouragement of local officials, business people, and government officials.
00:59:25It is not an unusual thing.
00:59:27The system is there, was there before he came along, is there after he's gone.
00:59:32And there's still thousands of girls working in dingy little brothels trying to work off money that was given to their parents.
00:59:41The first bit of paranoia, one of the mothers in the Philippines one day disappeared.
00:59:59There were people who were looking for potential heirs that they would represent, that they could represent in Saipan.
01:00:27Private detectives were hired and the word was put out.
01:00:31They went to bars and posted signs that if you know this man you might get a lot of money.
01:00:38One of the investigators found Mercedes, who was at that time pregnant.
01:00:46The private investigator was holding her hostage.
01:00:53She's just a 14 year old, she was eight months pregnant at that time.
01:00:58They wanted her to be brought to Saipan.
01:01:10But before doing that, the child was asked to undergo a cesarean operation instead of going through a normal delivery.
01:01:19There was a deadline coming up for claims and they wanted the baby born before the deadline.
01:01:26They wanted to make sure that the kid that she was carrying at that time would, you know, have this Caucasian features or would at least look like Larry.
01:01:38We were able to rescue her from that house.
01:01:44She wasn't even aware that Larry was dead at that time.
01:01:48According to her, she was waiting for Larry because Larry promised to come back and, according to her, marry her.
01:01:56So we asked her if she was really carrying the child of Larry and she said she was positive.
01:02:08We also felt threatened.
01:02:10That's why what we did, we brought Mercedita outside of Manila.
01:02:14You're just in time for the most informative half hour of your day. Here's what's ahead.
01:02:41With his claim against the Hillbloom estate, Junior Larry Hillbroom will have quite a tale to tell his own kids.
01:02:48But for all the arguing, all the hearings, all the publicity, not one shred of evidence has been put before the court to prove these children either are or are not children of Larry Hillbloom.
01:03:00At that point, the only thing we had done is preserve the assets. We had made no progress in demonstrating paternity.
01:03:09And then, out of nowhere, pops up Larry Hillbroom DNA.
01:03:17Someway, somehow, we found out that there was a mole that was excised from Larry's face when he had some reconstructive surgery.
01:03:25Now, what happened to that mole is another story.
01:03:35We knew that that was an important piece of evidence that could either make or break the case of the children, alleged children.
01:03:46Davies Medical Center, which had possession of the mole in San Francisco, agreed that we would try to get DNA out of it.
01:03:53The deposition was scheduled, and the doctor walked in. He reached into his pocket and threw it on the table.
01:04:02It was like it wasn't even real, like it was a joke.
01:04:11Every time we turned around, there was somebody with a conflict of interest working against us.
01:04:19The Davies Medical Center stood to benefit from money coming out of the foundation.
01:04:24You know, I mean, for what we know, they'll put someone in there, so that way, you know, for sure, it's going to come out that they don't match.
01:04:30Was that their motivation? I don't know, but it sure looked like it to us.
01:04:36So, of course, we were all suspicious. We were scared of that. We didn't want anything to do with it. So, it was never open.
01:04:49I'm just a naive scientist. I don't understand all these, uh, daring-do plots and intrigues.
01:05:00You couldn't help but be angry because of the constant assault, you know. They were constantly, constantly trying to screw you.
01:05:21They wake up one morning, and there's a new law in place.
01:05:24It was known as the Hillbloom law, and this law was very simple. It disinherited illegitimate children.
01:05:40And the whole thing had been engineered by Donacy and company.
01:05:43The former executor of the Hillbloom estate admitted from the start that the bill to change the probate law began with them.
01:05:50The Hillbloom law was checkmate for the children, and it applied retroactively. It's unprecedented. I mean, we're talking about a whole bunch of things that have never happened before in the history of the world, including anything like the Hillbloom law.
01:06:07Everything is not, uh, surprising and possible in Saipan.
01:06:12Everything is possible in Saipan.
01:06:13There were suspicions that perhaps the Hillbloom bill passed by bribery.
01:06:18At that time, there were promises of donations by the trust, you know, raising kind of red flags.
01:06:24An enormous setback, uh, to the plaintiffs.
01:06:28Pete Donacy, Joe Wechter, they were so taken up with the fight that it all came about how can we prove David Lujan doesn't have a claim, which really means how can we disinherit Larry's son, which is not the right thing to do.
01:06:41Disinheriting children is not the right thing.
01:06:45I don't think Larry's friends looked at what the implications would be of some law like that for other people on the island.
01:06:54What we're talking about is the phenomenon of the ugly American.
01:06:59I mean, Americans taking advantage of locals.
01:07:02With our money, with our clout, we've got the power. They don't have anything. Boom.
01:07:08You know, I've represented murderers and rapists and all kinds of, you know, people accused of, you know, various, uh, you know, heinous crimes.
01:07:25I just thought these people were worse.
01:07:28Because these are supposedly intelligent people.
01:07:31And people, you know, that were businessmen.
01:07:36People that are held up as upright members of the community and all those things.
01:07:42And, you know, it was disgusting.
01:07:46How do you overcome this? You know, here by this time, we're, you know, we're into it pretty deeply.
01:07:52And we were pretty much out of money.
01:07:55Lujan should have lost it all. But these guys simply won't take no for an answer.
01:08:24It was, it was kind of the final straw, I suppose.
01:08:29It was thermonuclear war after that.
01:08:32I went after them with a vengeance.
01:08:44There was a rumor that Larry's mother had been hospitalized because of high blood pressure.
01:08:48And a nurse had come into her room and taken a swab of the inside of her cheek.
01:08:53And then she later asked somebody why did they do that.
01:09:00And they checked the records.
01:09:01And there was no record of any nurse having come into her room and taken a sample of the inside of her cheek.
01:09:08Taking a sample of the inside of the cheek is a very typical way of getting a DNA sample.
01:09:13It's a very easy way to get a DNA sample.
01:09:15And it was David Luan who was accused, you know, the group of David Luan who was accused of doing that.
01:09:20But, of course, they denied it.
01:09:22There's some accusations made.
01:09:24Shortly after that incident happened, David Luan announced that he knew to a scientific certainty that Junior was Larry's child.
01:09:39was Larry's child.
01:09:40But he refused to say how he knew.
01:09:42He refused to say how he knew.
01:09:43He refused to say how he knew.
01:09:49So I thought that we could win this, no matter what the inheritance laws said.
01:10:12l'inheritance law said we wanted to pound them beat them destroy them so that they're crawling
01:10:20to come to the bargaining table lujan pricks the interest of nbc and dateline does a story on the
01:10:28case businessman larry hillbloom who was killed in a plane crash left the bulk of his estate
01:10:34hundreds of millions of dollars to medical research but there are those who say he left
01:10:38something else behind junior what's your name larry hillbloom this palauan boy called junior larry
01:10:45was born nine months after larry hillbloom had visited palau calani how old were you when you
01:10:50met larry hillbloom 16. is it possible that he slept with calani kenny anything is possible
01:10:57do you think he did i don't know um it doesn't seem like she would have been larry's type
01:11:05with the dateline exposure donacy can no longer hide in the shadows of saipan in the philippines
01:11:10it forced donacy to speak this is not about trying to keep money away from children who may be larry's
01:11:18you know this is about greedy lawyers donacy really cared badly in that interview these are not
01:11:26the innocent young virgins these are these are experienced bar girls
01:11:31there's filipina bar girl mercedes feliciano mercedes was introduced to hillbloom in one of those bars
01:11:38who she says supported her and her family until she had her first period then he paid her two thousand
01:11:45dollars for her virginity he was the only man that's when i believe the tide started to change
01:11:51but you have the national tv show where the truth is emerging
01:11:56and then there was another bizarre turn of events
01:12:02everyone should go to the david lujan school of how to prepare a bill because david used to
01:12:13regularly go through everyone's legal bills you know bills that include their time charges and they
01:12:20include their receipts for whatever they spent during that month and david is the one who found
01:12:26the muriatic acid bill which was huge
01:12:33the estate lawyers submit to the estate a series of expense accounts and include it here there it is
01:12:45muriatic acid muriatic acid that have been poured down the drains
01:12:49to destroy evidence lujan he meticulously goes through bill after bill after bill
01:12:59the devil really is in the details and david really knew that
01:13:06of course we were so angry when we learned about it because we spent a lot of money trying to prove
01:13:12that these kids are not his kids these guys whacked their domestic want you to believe that it's just
01:13:21a probate case it's not a probate case it's a criminal case i mean if nothing else we're talking about
01:13:29an attempt to fraud to defraud on a massive scale this is a felony you go to jail for 15 or 20 years for
01:13:35this kind of behavior clearly when they poured acid in the drains they knew that there was a child
01:13:41out there otherwise why would they have done it where big money is concerned people do funny things
01:13:56it's just a matter of time before what happened to larry's clothes was discovered
01:14:06josephine says guess what guys get a backhoe and dig a hole out behind larry's old house
01:14:13josephine had been asked by the executor to destroy evidence and this was at a time when
01:14:20before i represented her she was basically asked to take all of larry's belongings hairbrushes
01:14:25toothbrushes clothing anything that would have dna and burn it when joe wechter called her up and asked
01:14:33her to do this josephine kind of realized this may not be the right thing to do so instead of burning
01:14:39the clothes what she did is she got a backhoe and she dug a big pit and she buried it all and then she
01:14:45reported back to joe wechter that everything was gone why did you do this
01:14:54he told you to bury them
01:15:01according to nakasa the same man who denied larry hillbloom had illegitimate children was scrambling
01:15:07to get rid of evidence that there were any you knew at that time that there were people
01:15:11claiming to be larry's child yeah and you knew what had someone explained to you what dna was
01:15:20i heard dna before okay and did you discuss that at any time with joe wechter
01:15:26trying to get rid of especially of dna evidence
01:15:32however wechter testified that it was no casa who called him asking if she could get rid of the
01:15:37belongings wechter testified no casa got rid of the belongings as part of some filipino ritual
01:15:51so we did what was the practical thing to do we hired a backhoe operator we wandered around this big huge
01:15:57beautiful property overlooking the bay and we had this guy dig in all these different places all of us
01:16:04standing around in the tropical sun and we weren't finding it and so finally this backhoe operator who
01:16:10must have thought we were all the biggest fools in the world said well you want to know where larry's
01:16:16clothes are buried and we said well yeah and he said well i know because i buried them and so
01:16:22you know i thought well duh i mean there probably is only one backhoe operator and saipan
01:16:28he went right to the place he dug them up clothes the t-shirts jeans hair brushes toothbrushes and you
01:16:37know it's just this kind of real moment of sadness that you know this man was you know walking around
01:16:43with these clothes he was a real alive person
01:17:00so
01:17:13we out here
01:17:41we out here a bunch of like myself nothing but a criminal lawyer we were able to see through
01:17:47and beat them simply because you know it's not that i'm smarter it's that they were dumber
01:18:02it was exhilarating that after several years of fighting hundreds of lawyers from big cities against
01:18:20all the odds against every art that you can think of our client was now you know going to be acknowledged
01:18:27as larry's son and the whole world was going to open up to him in a way that most of us could never experience
01:18:36and we demonstrated that we belong in that courtroom
01:18:40it was a mountain that needed to be climbed and you know i wasn't about to give up until i raised that
01:18:56it's kind of ironic that ultimately with all the hue and cry over larry's dna and the
01:19:20hiding of it and the accusations about it you know it never really was necessary
01:19:25we have a whole bunch of kids that claim to have the same father so why don't we test the children
01:19:33themselves and so that's the testing that showed junior two filipino kids and a child in vietnam
01:19:42had the same father we used to call it the lucky sperm club we became friends with david when we got
01:19:50the results the dna cross-testing results he called us up and said we're family i wanted to go with his
01:19:57mother and see the children i said why don't you and i just take a trip and and see the children
01:20:05i think you see i i thought she would be anxious but she didn't she refused to believe it to really
01:20:18i don't know what it was with him emotionally that he was in such denial because they've proven now
01:20:24there's at least four maybe more kids so that part of him i can't understand the possibility exists that
01:20:33he had set this whole thing up larry would have loved the hillbloom estate litigation he liked
01:20:40lawsuits he liked uh the battle he was always getting involved in cases and lawsuits and plotting
01:20:46strategies and and if you could have uh if he can sit in heaven or and look down on the on the hillbloom
01:20:52proceedings he probably would have enjoyed it immensely uh the battle that that raged because
01:20:58his will was unclear and the body was not found who knows factors people say he might still be alive
01:21:05who knows who knows you know it's larry he might show up somewhere
01:21:19in my back row someday
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