Discuss any issues that may arise in the law of equity and trusts (in particular, do not consider any criminal issues, despite there being several!)

his assignment topic is intended for all BLC students who have not yet completed and
submitted an answer for the Trusts Law Assignment. It must be completed in no more than
2000 words and uploaded to Moodle.
Please submit your document in Word or Word-compatible format (whether .doc or docx).
Save your document with the following name format (NOT “Assignment.doc” or
“Contract.doc”) but instead:
YOUR CENTRE_SURNAME_Forename_Subject
(e.g. WARSAW_ZAMOYSKI_Jan_trusts)
Remember that we have many students in many centres and that we need to identify your
work!
THE TOPIC QUESTION:
Elliot is a head buyer for a designer fashion label Shortz, and has been given
responsibility to organise an important fashion show that will take place in the Guildhall
in London but, due to Covid restrictions, it will only be streamed online. To cover the
organisational costs of the event, he is given authority to use funds from the bank
account of one of Shortz’ subsidiary companies, Long Sock Ltd. The fashion show
takes place and is a huge success, but for reasons that have not yet been explained,
a number of costs have been highlighted by Shortz’ company auditors following the
event. Additionally, an investigation has been initiated, with some disturbing details
being uncovered about the use of funds to organise the fashion show. Shortz has now
asked you to provide their legal team with some advice on what they might be able to
do next. In particular, they are concerned about the following:
a) The fashion show was billed to take place at the Guildhall in London and
streamed live, and invoices have been issued by the Guildhall for £1.5 million.
The accountant for the Guildhall, Mary Black, has admitted that she is a friend
and colleague of Elliot’s and was convinced by Elliot to forge the invoices. The
event instead took place in a warehouse in Hackney Wick, which was rented
by Mary for £2000, which she paid from her own money.
b) The £1.5 million that was paid for renting the Guildhall was instead paid by
Elliot into the bank account of the Green Family Trust, which already had
£900,000 on the account. Both Elliot and Mary are trustees of the Trust. With
the money from the account, Elliot and Mary buy a house in Stoke Newington
for £800,000 in both of their names, which is now worth £1.15 million. They also
buy £500,000 worth of bitcoin, which is now worth £400,000. £1 million in the
trust account was then withdrawn and used to pay off an unsecured loan that
Elliot took with Greenstill Capital six months ago to purchase an apartment in
Zurich worth £1.2 million.
c) Among the costs that Shortz auditors are concerned about include a payment
made to a high-end fabric producer in India for £1.4 million (it turned out that
half of that amount was for materials used for the fashion show and the other
half was for materials that were used by Elliot’s 19 year old daughter Vicki, who
is a student at the London College of the Arts and was organising her own end
of year fashion show), several first class return flights to and from Chennai,
India, for Vicki and a friend and more than £150,000 in unauthorised receipts
for meals and food items at the Harrods Food Hall, which were all incurred
within the two month period before the fashion show at the Guildhall.
d) Upon meeting with some of the models who participated in the fashion show, it
transpired that Elliot was paid a fee of £50,000 by the management agency as
a reward for including some of their new recruits in the show. Elliot has since
used this money to conduct renovations on his summer house in Rye.
Discuss any issues that may arise in the law of equity and trusts (in particular, do not
consider any criminal issues, despite there being several!)