As this summer’s trial of Steven DeMocker proceeded, a financial forensics expert’s report was admitted into evidence to little fanfare and little reporting by Arizona news media. DeMocker is the Prescott, AZ stockbroker – who sold for UBS Financial Services, Inc. – accused of killing his ex-wife in 2008 just before his first $6,000 alimony check was due.
Peter Davis says that leading up to Carol Kennedy’s murder, DeMocker was in an unsustainable financial situation. DeMocker’s liabilities were exceeding his assets, he was deepening his insolvency, his credit lines and credit cards were virtually exhausted and he continued to spend beyond his earnings covering the shortfalls with more debt. As a result of the death of Kennedy, DeMocker would improve his financial position. Davis works for Simon Consulting of Phoenix, AZ.
Prosecutors, other reporters and this reporter have opined that if Steven murdered Virginia Carol Kennedy, his ex-wife, then he may have done it because he was desperate for money. See http://www.examiner.com/article/murder-suspect-may-have-been-motivated-b...
Davis issued his report to his employer, the Yavapai County Attorney, on June 14th. Davis made the same conclusion as this reporter, but did not have the federal government documents this reporter described (see link above).
DeMocker’s emails and text messages demonstrate his financial desperation and stress, says Davis. DeMocker borrowed from his parents and daughters.
There are only 17 pages of analysis in the 311-page Simon/Davis report; there is an eight page resume describing Peter Davis, and the rest of the 200-plus pages are exhibits from the investigators and tables created by Simon Consultants. There are lots of beautiful multi-color charts in the report, but lil old Yavapai County must have spent a whopper for it. Mr. Davis’ rate in this matter was $295 per hour – more than most Prescott attorneys.
One eerie table in the report is titled “Improvement of DeMocker’s Financial Condition as a Result of Kennedy’s Death;” it shows DeMocker could climb out of a $400,000 hole and realize a net result of plus $400,000 if she was done away with and Steven inherited the six-figure life insurance policy he took out on Carol.
One table mentions Pittsford, New York Federal Credit Union, including a Subpoena Duces Tecum for Steven’s mother Janice DeMocker's credit union account; and one exhibit shows a Washington Post article: McLean Man in Middle of Wild Arizona Murder Case, dated March 5, 2012. A brother of Steven’s lives in McLean, Va. - in the Post’s coverage area. The mother and brother may have moved finances around for Steven before and after his arrest. This reporter collaborated with Post Editor Tom Jackman on that article.
Another subpoenaed document according to Davis’ report shows a “UBS Financial Services account ending 4979” for Ruth Kennedy; it appears the mother of the victim was buying stocks from Steven, the suspect.
The report continues:
In September of 2004, DeMocker began employment with UBS as a financial advisor. DeMocker’s UBS employment package included receiving an Employee Forgivable Loan of $546,938 in September 2004. DeMocker convinced the County that he was broke and has had a public defender, on the public dole, for several months.
IRS, and other forms in the Davis report, show every expense incurred by Carol and Steven for five years including, ironically, purchases totaling $152 at Van Gogh’s Ear art gallery where Carol exhibited her paintings. There is also an expert witness in the report who will testify Steven paid no taxes in 2007.
The report also lists payments to divorce attorneys such as Anna Young who was paid $2,000 three weeks after Carol's murder; $5,000 around the time Steven was arrested; and was billing Steven for $7,600 about the time she became the new county judge.
Another ironic display was DeMocker’s costs incurred at Amazon books. Testimony in the trial shows he had books sent to his work office about how to be an international fugitive and how to commit crimes and not get caught.
There were numerous, large bank transfers to the two daughters, several after the murder, and it appears the daughters weren’t exactly frugal, with Charlotte spending hundreds of dollars on clothes in the weeks right after the murder; and giving nearly $500 to a charity. The other daughter, Katherine, loved the credit cards, too, spending hundreds at the same resort her father stayed at – The Phoenician, and thousands on airplane tickets. She was on her way to Africa when she learned of the murder. She also spent $299 on ABC Bartending three-and-a-half weeks after her mother’s murder. Granted, there were some celebrations of Carol’s life around that time. Four months after the murder, Charlotte, with her father in jail, was spending nearly $600 on electronics.
The report also says there were phone calls between Katherine DeMocker, Renee Girard (one of Steven’s girlfriends), Charlotte DeMocker, Janice DeMocker, John DeMocker and Jim DeMocker; some have testified about and others are accused of “moving funds around.”
As recently as three weeks after the murder one daughter was receiving checks from the Arizona Department of Economic Security for “child support,” and a check for $700 from State Farm; Carol’s life policy was written by Hartford. The same daughter spent $550 on clothing during the month after the murder.
The report contains numerous emails from DeMocker to Kennedy supplied to Simon Consulting by Yavapai County Sheriffs’ investigators and the county attorney.
All of the emails were of DeMocker’s whining about his finances, but DeMocker had three BMW’s; a motorcycle; he owned Kennedy’s house, a condo on a golf course, the golf club membership, and a condo near Scottsdale; and receipts obtained by this reporter and Davis show he spent lavishly on wine, women and song, including American resort hotels and foreign resort trips.
Two of the communiques in the Davis report:
June 10, 2008 – Email from DeMocker to Kennedy:
“You get to start clean while I dig out of a staggering hole while I’m trying to pay out $400,000 in after tax dollars to send our girls to college. My income has dropped by almost half. My practice is in pieces, and you got a settlement based on what is likely to be the biggest year of my career.”
July 1, 2008 (the day before the murder) – Text message from DeMocker to Kennedy regarding alimony:
“I simply cannot float a full payment this month without your payment to me.” (He has consistently claimed he overpaid Carol for a cash out of a 401K account.)
…and another email where Steven typed: The sand has run out, Carol, wakeup.
Approximately four months before the date of Kennedy’s death, DeMocker emailed Kennedy that he was not aware of a place to borrow further funds.
The prosecution will continue in the coming week and then the defense will present its case.