Farmers & Merchants Trust Co. v. Vanetik

*641INTRODUCTION

Yuri Vanetik and his father, Anatoly (Tony) Vanetik, were involved with a number of interrelated companies in the business of oil exploration in Russia. (To avoid confusion, we will refer to Yuri and Tony by their first names; we intend no disrespect.) Yuri approached his friend, Elliot Broidy, about investing in one of those companies, Terra Resources (Terra). Broidy agreed to invest $ 750,000, with the written agreement his investment would *611go only to efforts to start production on the oil wells.

Farmers & Merchants Trust Company (F&M Trust) was the trustee and administrator of…