Fraud lawsuit filed against Gearhart, Hurst
May 6, 2008 8:38 pm
By KAREN VELIE and DANIEL BLACKBURN
Local investors are alleging they were bilked out of millions by Hurst Financial and developer Kelly Gearhart.
David Rios and Murray Powell filed an 11-count lawsuit Tuesday in San Luis Obispo County Superior Court. Allegations include fraud and civil conspiracy by Hurst Financial president Jay Hurst Miller, Hurst loan officer Courtney Brard, and Gearhart, and claims they misled investors and misappropriated funds.
Gearhart is alleged by investors and others to have co-mingled finances, paying from one investment fund to construct another.
The complaint revolves around a construction loan by hard money lender Hurst Financial to Gearhart for the erection of a commercial building at 5730 El Camino Real in Atascadero. On Oct. 12, 2006, Gearhart, through Hurst Financial, received $2 million from 17 investors to finish the project. That loan had an April 12, 2008, loan maturation date. The property is currently a vacant lot.
Miller and Gearhart did not respond to UncoveredSLO.com’s requests for comment.
Hard money lenders specialize in short term, high interest construction loans that are often used as bridges to help a developer finish a project. Loans are based on the value of the underlying asset rather then the borrower’s credit rating. These kinds of loans are primarily funded through private investors.
Lenders lure investors with promises of high interest, low loan to value rates, and assurances that funds are placed into secured accounts with payments provided to developers as the work progresses.
According to the claim, Hurst wrongly asserted funds would be disbursed as improvements were made to the project. Hurst doled out the entire construction fund to Gearhart even though no work had been done on the property.
Miller admitted this in an April 18 e-mail to Powell regarding the project:
“After reviewing this loan within our escrow trust account, all net proceeds from Cuesta Title Co. after the purchase of the property and points paid to Hurst Financial went to Morro Road Homes LLC (Gearhart), in good faith,” Miller wrote in the e-mail obtained by UncoveredSLO.com. “After doing business with Gearhart Development for 23 years, I have done many of my loans in the same nature. I obviously know we are under-secured at this time, due to the building not being constructed.”
Rios and Powell are seeking recovery for all investors in the loan for damages of $2 million, interest fees, cost of the suit, and unspecified punitive damages.
Tags:, Atascadero, fraud, Gearhart, Hurst Financial, lawsuit
By: Anonymous on 6/10/08
Hey, how did you all know about Hertel cheating us ? i just got today the papers where they have in fact defaulted on about $21,876,987.00 dollars in loans just on the Atascadero deal gone bad. The file is going to get worse they did hide the monies in HOB, shame on them,.
By: Anonymous on 6/8/08
I want my money back as well, Estate Financial may not be the only one that may not have acted in good faith with others peoples money. Those who wish to cast stones may wish to clean up the mess in their own back yards.
By: Anonymous on 5/23/08
to exfriend
I forgot. Do it over and over and over and over and over again.
By: Anonymous on 5/23/08
to exfriend
Here's the program. Find real estate. Get hard money loan for land, construction, interest reserve, misc. expenses. Pay off land at closing and take rest of money and use it anyway you want. Give land back to investors at greatly devalued basis. Call it all good. Maybe they will be able to sell at 10 cents on the dollar of what was borrowed on the project since nothing was built, you paid too much for the land since it wasn't your money anyway, and you didn't build a damn thing with the construction funds. Nice gig if you can get it.
By: Anonymous on 5/23/08
to insider. all of us i mean all of us are tired of hearing from you. go away. may the bird of paradise fly up your nose. go away.
By: Anonymous on 5/23/08
"Insider" is right, wake up! Jay Miller and Courtney Brard want all of us to get frustrated and confused, it's part of their plan. DON'T GIVE UP THE FIGHT, too much is at stake. Hound these 2 until you get your money back, it is all their own doing with what has taken place.
By: Anonymous on 5/22/08
Wake up investors. You're looking lethargic. Are you laying down and playing dead?
By: Anonymous on 5/15/08
it's all the baby boomers fault
By: Anonymous on 5/15/08
Test
By: Anonymous on 5/14/08
I have posted a copy her original post that had been on TOPIX. The way I found it was to use the search engine at the bottom of the page. I'm sorry if the link I posted doesn't work anymore but this is all that I can find that Cindy (the other Cindy) posted there.
By: Anonymous on 5/14/08
to dog huts
Its not just the City Councel of Atascadero the Board of Supervisors is in the middle of thier own ordinance that will assure unafordability in housing for now and the future.
Like or Dislike:
0 
0
By: Anonymous on 5/14/08
Remember it's the Atascadero City Council that has imposed these unrealistic deed restrictions on the so called "affordable homes." Anyone with half a brain wouldn't invest in hard money loans or buy a deed restricted home. They are all guilty of ripping us off.
By: Anonymous on 5/14/08
to black helicopter pilot
Good or bad this blog is dirrectly responsible for the excellerated pace of the Estate and Hurst Financing matters. In my few the investors have an opportunity to recoup millions more than had they just stood idle. I'm sure this type of forum scares the hell out of the scam artists and politicians out there. Lets face it generally there is a handfull of people out there mismanaging our money and resources but that group, Estate, Hurst, Gearhart and other developers, the City Council, the Board of Supervisors can make our life miserable. What they don't steal from our pockets when we turn to look the other way they take with unnecessary regulations that distort the market and instead of making housing affordable to all make it unaffordable to anyone that doesn't quallify for one of thier dog hut 50 year dead restricted homes. So thank god for this format where people can under anonymity express thier fews without the elite few surpressing clear thought.
By: Anonymous on 5/14/08
This is trully FREE PRESS at its best.
By: Anonymous on 5/14/08
To Black Helicopter Pilot,
You are correct. This is where the real news is. The rest are careful to balance what their advertisers want to see in print. A large advertiser can put the pressure on an editor like nobody's business.
By: Anonymous on 5/13/08
Yes!
The only true, reliable source of ANY news is this here blog and The New Times!
All the rest are a function of a Large Conspiracy!
By: Anonymous on 5/13/08
The Fibune will in no way report any news that is negative in any way towards all the real estate advertisers!
It's rigged! It's fixed! It's a huge scam!
Stop your subscriptions and take a stand. Money is the only thing that will alter the course of this train wreck!
By: Anonymous on 5/12/08
This will soon be national news, while the Trib's head has neen so far up the perp's asses they can inspect the backs of their tonsils.
The Federal justice system is a non-stop but slow motion meat grinder.
By: Anonymous on 5/12/08
Gearhart must of finally hired an attorney he doesn't seem to be shooting his mouth off any more.
Like or Dislike:
0 
0
By: Anonymous on 5/12/08
Nice to see someone is doing something, FYI Cindy got her monies and moved to Nevada, to enjoy her retirement. She made a deal and is going to stay out of the loop. She warned many investors apparently none listened, until now. My spouse has been investigating several SLO Developers and Investment Scams for the past two years for an Insurance Company who is concerned one of their clients has been running a con game. One matter that has gotten the ATTENTION of the IRS is a local developer named Ronald W. Hertel of RW Hertel & Sons in a Florida Federal Case # 2007-CV-61031-JIC where the developer tried to launder ill gotten monies from SLO to the tune of about $ 14,975,000.00 apparently a LLC called COOKHAM HOLDINGS, LLC and ATASCADERO VENTURES,LLC all connected to a Winery called the 5 Mile Bridge dba VERDOT GROUP, LLC are all connected to several scam operations with Rossi, Hertel, Fowler, Guth, Hurst, Point Center Financial, Inc. The Dolphin Group, DOYA Partners, Troxler Ventures Partners, Inc. Woodlands Ventures, LLC Central Coast Development Co., Los Robles Ventures, LLC SLO-HAAS, LLC and them some. He tells me a case has been going on for some time trying to determine Insurance Fraud, and Defrauding investors. I asked him could he talk to any of you and he can't since he works for a Major Insurance Carrier who is concerned they may be liable if a suit ever comes down they are in the damage control mode. But he warned some of those he has interviewed to go to the authorities with their information. Good Luck. FYI Cindy was an insider who did provide in valuable information to the Federal Authorities
By: Anonymous on 5/12/08
TO: Found Cindy's Post
That website for topix is invalid – can we try it again.
Thanks.
By: Anonymous on 5/12/08
To Insider:
Your right it is the Dept. of Corporations. I guess I may be thinking way ahead when the Dept. of Corrections will be monitoring these people.
By: Anonymous on 5/11/08
Hi All, Karen might delete this but I'll try since it's good info.
You all just got scammed, her firm has been doing a Ponzi Con for some time. She has so many companies, doing the Con as:
Estate Financial, Inc.
Buena Vista Place, LLC
First Press Partners, LLC
ECR 24, LLC
DOYA Partners, LLC
DOYA Partners II, LLC
Estate Financial Mortgage Fund, LLC
Clavis Development International, LLC
HFL Express, LLC
Hertel Group, LLC
Atascadero Ventures, LLC
SLO-HAAS, LLC
SLO-Verdot, LLC
De Witte Mortgage Investors Fund, LLC
Point Center Financial, Inc.
Verdot Group, LLC
Ventura-Duval South, L.P.
This is the short list too.
She and her associates ripped you all off, her Lawyer and silent partner is SLO Lawyer Roderick Rodewald who is the hubby of County Clerk/Recorder Julie Rodewald who has been her inside source.
Guth has set up many phony 401 K's look at one now going broke is Steinbeck Vineyards 401 K many others as well. It is all going to fall apart sooner than you know and she and her small circle of people are now banking the money so they can close up and belly up.
Like or Dislike:
0 
0
By: Anonymous on 5/11/08
http://www.topix.com/forum/personal-finance/TKJG6...
By: Anonymous on 5/11/08
To Anonymous
RE: TOPIC FROM TOPIX
I remember reading a posting from Cindy in one of the earliest blogs on the Estate Financial Ponzi scheme. When I tried to find it again, it was gone??? It would be really interesting to hear from her again. If she had insider information it would sure help out current investors stuck in Karen's quagmire – by passing along her information to Vince Otto of the FBI, Preston DuFauchard, California Corporations Commissioner, Mary Ann Smith, Senior Corporations Counsel Enforcement Division, and Roger Frederickson of Sinsheimer Juhnke Lebens & McIvor in San Luis (who has mailed a letter to all Mortgage Fund investors asking them to request a meeting of investors – we only need 10% – to discuss our options for preserving Mortgage Fund assets and getting our money back). If you are out there Cindy – Please help. Felloow Investors – Please sign the form requesting a meeting. It will cost us nothing to speak to some professionals who will give us straight answers and options – something we will NEVER get from Karen and Josh.
By: Anonymous on 5/11/08
to Get it Right
I don't think the Dept. of corrections has anything to do with either one of these companies at this time however it these charges pan out they may. Maybe you mean the Dept. of corporations. You tell me. I am quite sure that Hurst has used thier real estate brokers license to list properties, I've seen it. I believe estate has also used thier brokers licence to sell thier own properties however I cannot confirm that. The point is they are real estate brokers. Same qualifications, same test, same rights. Same. I would agree this does not condem other real estate brokers or agents it is however the origin of this type of buisnes. It is not banking it is Real Estate Brokerage.
By: Anonymous on 5/11/08
should read that most did NOT make a mistakesorry about that.
By: Anonymous on 5/11/08
Yes they have real estate licenses although their practices are controlled by the Dept. of Corrections. None of these people, Hurst & EFI sell real estate. You don't have to sling everything you think you have up on the wall to see what sticks.
It's like saying that everyone who is invested made a bad mistake, Some may have but most did and that's an area where you don't have to go because the fraud is what is causing this-not realtors.
Like or Dislike:
0 
0
By: Anonymous on 5/11/08
to get it right
Not real estate people? Last I checked the hard money lenders held real estate broker licenses. I think that makes them real estate people. right?
By: Anonymous on 5/11/08
COMMENT FROM TOPIX
note with keen interest the failed dealing of EFI, a posting on uncovered-slo mentioned the BFA ( Baptist Foundation of Arizona) as being similar to EFI demise. Having been involved in the BFA matter years ago let me tell you two things.
John McCain who was and still is attending the same Church that started the BFA Scandal and who advised me and many others to invest into the BFA telling us is was " Safe & Secured" shortly a Phoenix New Times Story unraveled the mess. Pastor Dan Yearly told us it was a safe investment. Only thing is he too was bilked into telling us and the thousands of others at NPBC ( North Phoenix Baptist Church)As it turned out it was a $ 635 Million Fraud and Ponzi Scam. Now that i have friends who did invest in EFI the only one i knew who got out and got the inside scoop was Cindy and she has now left to enjoy her Monies in Nevada. All the others she warned refused to listen to her, well now they wish they had. She warned us it was a fraud and scam. She was connected to Rodewald who told her get out NOW. The other Hard Money lenders and borrows are doomed as well. The money is now sitting in a Holding Company based in Nevada being moved to off shore accounts in small amounts each week as not to get the attention of the Federal regulators.
By: Anonymous on 5/11/08
What a mess and no it is not going to get better, it is going to get much worse in the days coming up. I suggest you all look towards two firms for your monies: VERDOT Group, and Cookham Holdings, LLC they have been funneling some large cash assets all from EFI and HFL Express, LLC
By: Anonymous on 5/11/08
What a mess and no it is not going to get better, it is going to get much worse in the days coming up. I suggest you all look towards two firms for your monies: VERDOT Group, and Cookham Holdings, LLC they have been funneling some large cash assets all from EFI and HF Express Group, LLC
By: Anonymous on 5/11/08
to insider
Get your facts right. the lenders, HURST & EFI along with developers did this to investors. No real estate company was involved with the lenders and developers. Yes some realtors did sell some of these properties because fortunately these were the successful projects were the investors did get their money back. let's put the blame where it should be and keep your ramblings to a minimum.
By: Anonymous on 5/11/08
True irony
a 64 year old homeless man who lives out of his car robs a few real estate people of a few hundred dollars. We manage to catch him within days throw him in jail and I bet he will do some serious time.
Now we have some real estate people who rob a bunch of old people of hundreds of millions of dollars. Commiting the same act over and over. Complaints filed over and over. Yet thier still in buisness and in controll of the victims assetts. Free as a bird.
Poor old man he should have asked them to invest.
Like or Dislike:
0 
0
By: Anonymous on 5/11/08
Insider – Let no one say that you aren't fair. Look at all the work you've done to give the perps some direction.
By: Anonymous on 5/11/08
The Condo's behind the A&W are a bad location and won't sell very well. They are near the freeway and Kelly lives right along the 101 and probably doesn't think much about the noise but the general public wants a quiet peaceful neighborhood. Even in good times the two projects we are discussing would have had major problems. He built a lot of cheap stuff and cut a lot of corners. He was doing the old Rob Peter to pay Paul & Kelly routine. The problem with this type of lending is that if a project goes bad it seems only natural to dip into the funds from another until you can realize a gain(sale) and then pay it all back. It obviously doesn't always work out and thats why it's against the law.
By: Anonymous on 5/11/08
Thanks for the info Cindy. Kelly was selling 600 sq' cottages with no land for 300+K? I purchased 2500sq' new for 525 with! The senior deal wasn't such a deal but thats what they call affordable housing. Joke, They will always be rental properties.
By: Anonymous on 5/11/08
To Insider,
Regarding the Printery. It was agreed that the city would return it to the Masons and that the Mason's planned on giving it to Kelly. As I recall Kelly was to do some sort of a property trade with the Masons so that they would have a meeting hall. The Proptery is free and clear but there are many restrictions on it because of the FEMA funds that the city collected for it's damages.Also prior to it being traded the city recorded it as a national historical site (more restrictions). Its a white elephant. His senior project behind the home depot has gone down the tubes because they are little 600-800 sq ft homes with no land in a barren complex and Kelly wanted 300+ for them!! People had to be over 55 to occupy them. That was the deal Kelly had to make with the city in order to over come the zoning. No one would buy so he ended up renting to whom ever he could and that caused problems. He deffinetly went way up-side down on that development.
By: Anonymous on 5/11/08
from Dan and Karen's Article
Rita is a 65-year-old Cambria resident who suffers from multiple sclerosis and can no longer walk. Her husband placed the couple’s savings, $830,000, with Hurst Financial prior to his death from a long term illness, thinking he had guaranteed his wife’s financial security.
“I need 24-hour care,” Rita explained. “Without my interest and possibly my investment, I’m not going to be able to afford my caregivers and I will have to sell my house. I don’t know where I will end up. I am scared.”
According to Rita, Miller failed to return numerous calls she placed to him requesting information. In the midst of the financial turmoil, Miller took a 10-day trip to Hawaii.
By: Anonymous on 5/11/08
Somebody earlier probably Kelly himself stated how smart and successfull he is. Well shooting his mouth off on that show sure disproved the first and the state of his projects shatters the second. My observation is he spent all that money he was loaned on these commercial projects that has disappeared on his failing residential projects behind the home dempot and the A&W in Atascadero as well as many others scattered around Atascadero and the County. And what about the Printery. He somehow seems to have ended up with that with no attachments. Did Hurst do a loan on that. Does anyone know about the status of weather he owes anything on that or has it free and clear?
Like or Dislike:
0 
0
By: Anonymous on 5/11/08
A Kelly Gearhart Development?
Drive 10 miles east of Paso Robles on hwy 46 and you’ll come to 10 acre parcels for sale on the north east side of the road. You can’t miss them.
There are a couple of homes that have sold and are occupied.
I believe these 10 acre lots are owned by Kelly, but aren’t selling.
One reason is that getting on and off hwy. 46 in very dangerous.
We looked at the two homes for sale there and they are small and poorly laid out.
They have an entrance court yard that cuts into the square footage of the home and divides them in an ineffectual manner. No wonder they haven’t sold!
By: Anonymous on 5/11/08
Thanks for replying Insider and Anonymous. I figured if he was insistent about using one term over the other, there must be some perceived advantage to himself.
Regardless….he can use any term he wants, but at the end of the day, it only matters what the legal papers and law say. It makes more sense that the individuals are "investors" and Hurst is the "lender" since it is the professional entity of the two groups involved. Sure would hate to be in Kelly's or Jay's shoes at this point…..wonder just how well they are sleeping these days knowing that folks are finally demanding answers they can't (or won't) provide?
Good luck investors….I sure feel for you.
By: Anonymous on 5/10/08
Insider.
I know the person who asked that question about commingling funds. Aside from turning Kelly inside out did anyone notice how fast Kelly came up with a last name on the questioner? Right on the tip of his tongue. I know for a fact they have never met!
Are our friends in Atascadero investigating the investigators?
No matter what, Kelly showed what a thug he is and for sure shot himself in the foot for the whole hour. He lied the whole time, what a creep.
I think it would be lovely to have Jay on the show.
I wonder when throwing former partners under the bus will be a daily thing in this saga.
By: Anonymous on 5/10/08
Kelly is more scared than he lets on thats why he's obsessed with this lender-investor thing. He thinks a lender can't put him away but an investor can. Probably has something to do with the comingleing thing too.
By: Anonymous on 5/10/08
I also noticed that Kelly kept referring to investors as lenders. I "sort of" dismissed the oddity. I think Karma and Insider are onto something here. It makes sense.
By: Anonymous on 5/10/08
one last thought
Gearhart got real sketchy when someone asked him if he was comingaling funds. I fact he got quite upset. One can only draw thier own conclusions as to why. I would guess his money is more mixed up than if it was all put in one of those Jack LeLane juicers.
Like or Dislike:
0 
0
By: Anonymous on 5/10/08
to Karma
I'm no attorny, However I have been in these kind of deals for 30 years as a builder borower. The individuals that put up the funds, have allways been refered to as investors. They are gathered by the lender. Hurst in this case. The lender Hurst secures the investors on a first trust deed by percentage of investment and the borower provides a note. Now since Gearhart is so determined to define the investors as lenders it says one thing to me. He wants to put himself in the possition that if they forclose on the properties that are thier security that this is thier only recourse and by them getting the property even though it may be worth only a quarter of the money invested that it would be the sole recourse for what he calls the lender as would be the case say if the bank forclosed on your home in this market and it dropped in value. They couldn't come after you for thier loss. Now if your an investor I assume your situation is different and you could take the property and then proceed against all and any of his assets as well as proceed against him crimanally for fraud, comingalling of funds, misappropeiation of funds as well as other things I'm sure. In other words you could forclose and then go after anything he has and even try and throw him in jail. The interesting part of this is in taking this possition he is essentially throwing Jay Miller of Hust financial under the bus for all the same. I'm no attorney but it looks like he's ready to turn on whoever he has to.
By: Anonymous on 5/10/08
to Karma
I noticed the same thing and forgot to mention it. Base on the last blog by Kelly Anonymous there is some obvious legal reason. Contrary to Mr. Anonymous's blog I have always considered them the investors and Hurst the lender.
By: Anonymous on 5/10/08
From the borrowers perspective, the people who funded these loans are in fact "lenders" and not "investors".
A "lender" loans money for a specific period of time which is to be repaid with interest. That's the case here with people who have funded "hard money" loans.
An "investor" aquires an immediate ownership position, which is not the caes here.
On the other hand, from the perspective of the lending institution, in this case Hurst, the money sources are considered an "investor" because they provide funding and assume a potential for loss.
Bottom line: To Gearhart they are Lenders, to Hurst they are Investors.
By: Anonymous on 5/10/08
Finally got caught up on the Dave Conglaton's podcasts featuring Kelly Gearhart and Murray Powell.
Wow is about all I can say. Kelly did not disappoint and managed to solidify his reputation as being arrogant, abusive and deceptive. I thought Murray Powell came off very knowlegdeable, informed and committed to getting some real answers to his questions regarding the missing money. It'll be interesting to see how this all plays out that's for sure.
Does anyone know why Kelly kept insisting that the investors were really "lenders"? He repeatedly made that assertion and correction and I found it very curious. He sure likes to split hairs and many of his responses were disingenuous to say the least but I can't help but think there must be a reason he kept making that particular distinction.
Great work Karen and Dan….sure nice to real some real investigative articles about things happening in our local area. Please keep it up!
By: Anonymous on 5/10/08
Investors,
Sorry about my typing. I know what I'm saying but I'm old and the chair and the keyboard and the fingers don't always connect as fast as I'd like. I'm old but I don't have alzheimers. I know what I'm saying to you.
Like or Dislike:
0 
0
By: Anonymous on 5/10/08
Investors,
Avoid the Confusion. get together and son't get "railroaded". Stay with the acts and Escheat obfuscation. This is pure BS. If you fully understood this sort of crap it never would have happend to you in the first place. Get ready for Monday when the Tribune will do something outrageous to protect "not you" but the high roller.
By: Anonymous on 5/10/08
B106-06 Desert Hot Springs
Dear Michael,
I received your letter dated May 6, 2008, in which you describe the change of heart Ms. Guth had regarding your property, What you may not know is she had a meeting with some of the investors on this property and we were polled on how we felt about your proposal.
Our feedback to Karen was; what is this borrower thinking? He wants us to subordinate our loan to another first trust deed and take no interest until he decides to sell the property. Does he think we are dense? Who would trade a first position trust deed to subordinate to who knows what, for how long?
You may not be aware of the current position of the title companies in this marketplace but no one will insure unless there is 100% signed agreement from all the fractionalized note holders. The old 51% rule is out the window, so even though you have found a new lender to place the first on the property they would never do it without title insurance. I know for absolute sure you will never get 100% agreement because I would not agree to give up my first position on this loan and give you an interest free ride until some future undetermined point in time that you decide to sell.
Now, had you asked us to subordinate and maybe start accruing interest at a rate somewhere in the 7% range, I and other knowledgeable investors may have been willing to work with you. But when I got to the end of your letter and you referred us to go to Uncoveredslo.com and scroll down and read the blogs of other investors I knew that you were not behaving in an honorable manner. ( The blog is largely a group of whiners that never read their agreements that said this type of loan was risky and thought a 12% interest rate was normal without risk) Estate Financial represents over 3000 investors and you see just a small percentage on this blog … that should tell you something. The knowledgeable and serious investors are trying to work out solutions that mitigate as much loss for all parties as is reasonably possible given the current market conditions. Stop placing blame where it clearly does not belong. EVERYONE of us is caught in this horrid cycle of a down real estate market and an unprecedented credit crunch. I'm sure Ms. Guth would have been in a position to extend further new financing for your project if the tide hadn't turned as it did. However, I doubt she had any contractual obligation to do so as a term of your original agreement. And here you are, the one in default crying wolf!
I've been in the real estate business for over 32 years. I've seen this kind of market come and go and I feel sorry for anyone who gets hurt due to the current downturn. I have many good friends both builder developers and investors that are chewing on substantial losses. But what I cannot stand is someone trying to push the blame on someone else to make themselves look good. You have lost all credibility in my opinion and I will contact other investors on this loan with me and share my impressions and thoughts with them.
Maybe you should rethink your position and bring something palpable to the table for this investor group to consider.
Sincerely, Gordon Hansen
By: Anonymous on 5/10/08
To We’ve Got Pay Pal,
Have you even been reading these blogs? If you have been then you would either think that Anonymous is a full blown schizophrenic or it might dawn on you that the name “Anonymous” appears automatically if someone doesn’t enter a name or handle. You sound like the same person who was upset that someone called Kelly a fat ass and you couldn’t understand our anger. Dah
Like or Dislike:
0 
0
By: Anonymous on 5/10/08
Good info to connect with the EFI victims.
Also, if anyone out there is having issues with Country Financial, Vanguard, Stinchfield-let us know what is going on. I am sure this situation is industry wide.
By: Anonymous on 5/10/08
The EFI investors are organizing and doing some real work to protect themselves. Go over to the blog called "UNDER THE MICROSCOPE". I would suggest that the Hurst investors begin to support each other and take some tips from the EFI groups.
By: Anonymous on 5/10/08
To the blogger calling himself we have pay pal. If we don't consider Insider and Anonymouse this blog still has 173 posts. Thats' one hell of a blog and there is plenty of readership. Yes there were personnal attacks. How could there not be? This is very personnal to a lot of people now isn't it?
By: Anonymous on 5/10/08
I heard the story from the woman in Cambria when Murray was on the radio. Was her name Rita? She was a widow with MS and all her money is now gone and Miller and Gearhart won't even return her calls. I'm wondering if Dan and Karen could follow up and do a story specifically about her?
I also wonder if it's possible for Atascadero to take back its "Citizen of the Year" award from Gearhart.
By: Anonymous on 5/10/08
To Dan and Karen
Apparently the Gearhearts,Guths,Hurst,Estate,Slow Bears and the like are not going to send you any money if people don't stop picking on them. I will and so should the people that have been helped be your undercover work. Apparently I've hurt the feelings of these pilars of the comunity. Basically there is only two types of individuals I have and will continue to bring to light. 1) Those who steal from others, particularly the elderly and 2) Those who make excuses for the thieves (Slowww Bear, Duedog, You Know Who) If you fall into one of those two catagories oh well. If you are an investor who wants to hope things are going to get better leaving this den of snakes in charge I am simply sugesting I don't think so. I can see I've really gotten to the Gearhart Cheerleaders and that just makes me smile. I know I blogged excessively when Gearhart had his people jamming the blog with his future standing for Sainthood and what a genious he was at that time it was necessarry to take a stand. Good luck to all investors. Don't let up.
By: Anonymous on 5/10/08
I agree with hot dog. I have been collecting disgruntled investors for weeks. For those who won't post their own email you can e me: rippedoffinvestor@yahoo.com
By: Anonymous on 5/9/08
Its true there is a lot of trash on the blogs. Dan has pointed out this is a free wheeling gig and if he starts to fiddle with it there might be no end.
I appeal to all who want to make this work, keep your comments on issue-education and the goal of getting our money back. We don't want to sink Hurst, there is nothing wrong with the industry (other than the brokers not doing their job).
Give to UncoveredSLO!!!!! They have been working for nothing. Just look at what they have done for us. Many of us might recover hundreds of $k, some up to a million. You can surely pop for a c note or more to support a free press.
Do it now, I have.
There are reports that Hurst is sweating it big time, and might actually be doing their job after all this time. Keep up the pressure but don't drive them out of town!
And those of you who have a gripe and want to bond with others, post your email, the active groups will be in touch.
Like or Dislike:
0 
0
By: Anonymous on 5/9/08
My question is why? Do people actually pay to support this site?
After reading some of the post on this website I cannot believe that you would let someone post with blatant disrespect towards others! Does anyone censor this site?
As for the 210 comments on your recent posting it ended as this is written at 258. Close to 100 of them were from two people, Insider and Anonymous I don't believe that to be real readership!You should be so proud and so should your sponcers for I will not support either!!!
By: Anonymous on 5/9/08
to bad boy
It appears my work here is done. The emperor has no clothes. Now thats a disturbing picture.
By: Anonymous on 5/9/08
Poor insider no one wants to play today . maybe you should go outside ! O I forgot you will burn up in the sun you slug.
By: Anonymous on 5/9/08
Insider:
That is supposedly the job of the financial company. That’s why they are paid a percentage of the loan. Some of us have to much trust! It’s to bad.
By: Anonymous on 5/9/08
to Not a Stupid Investor
Your right. Slowww Bear is still the same idiot he was yesterday and the day before. The only mistake you made was to trust these guys which on face value seems reasonable. This will change this industry forever. Not only do you need to pick a good lender and contractor you need to watch them quite closely from close of escrow to each step of construction. We are not talking about someone who didn't have every nail in the drywall before getting a draw. We are talking about someone who got all thier money without lifting a finger.
By: Anonymous on 5/9/08
The Tribune won't cover this story because they were actually instumental in Kelly gaining more investment funds. They wrote an article about his great project (based solely on what kelly tod them). Then he sent investors a letter and attached a copy of the Tribune article as if it was proff. The Tribune even had a phony picture of his project in the article. They are really something else. There is absolute proff via Jay's own e-mails that the funds were provided up front and there has been no reasonable performance on the projects.
By: Anonymous on 5/9/08
To all those that know nothing about how construction loans work educate yourselves and read this. I am heavily invested into the Hurst / Gearhart deals to the tune of over $900,000. To those of you who think I am crazy or stupid you need to see this through an investor’s eye. I will try to explain this in laymen terms for those of you with half a brain (which has been proven by the blogs) will understand.
I have been doing construction loans for years in the central valley. When I moved to the central coast I looked for investments here:
1) Find lending Institute and contractor hense Hurst / Gearhart well over 20 years in business. Sounds good!
2) Talk to the title company. Escrow officer told me that she handled Hurst loans for over 7 years and had only 1 foreclosure and that when she and her husband had extra money they would invest with Hurst. WONDERFUL!
3) Get loan proposal.
Appraisal: $1,000,000
Loan Amount: $650,000.
Loan to value ratio: 65%
This means if project drops 35% of appraised value I am still covered. If it drops lower I lose that amount. That’s the RISK FACTOR. At 12% interest this means I am getting 1% of my investment back each month in the way of interest so in a 24 month loan I have collected 24% of my investment.
4) Lending institute: They hold the money in an account. As work is completed they cut checks to pay for that work. SO your money is always accounted for and the value is there.
5) When job is complete and project is sold, if the market drops more than 35% you lose. But you still have to factor in the 24% of your investment you have collected in the way of interest. So you can see this is really not high risk at all. You should at the very least get back your investment in the sale and interest collected. To further cover myself I spread my money over 12 loans so that if a loan were to go bad I would have the other 11 to fall back on. So where’s the risk? Investors are not stupid. There is only a risk if the people you are dealing with are not playing by the rules and doing things illegally. Now do you understand?
Like or Dislike:
0 
0
By: Anonymous on 5/9/08
How come the Tribune wont cover this story…maybe because there are no solid facts….its all hearsay. Even Murray Powell said with a bunch of his facts last night "I dont know if this is a fact, its second hand" blah blah blah
By: Anonymous on 5/9/08
I hope Congelton is paying something for all the free publicity he gets on this site! Just kidding, Dave. Thanks for givng airtime to this issue. Maybe now the Fibune will get involved.
By: Anonymous on 5/9/08
Is SLOBEAR Dave Congalton in disguise?
Dave is hiding under his desk. Just wondering
By: Anonymous on 5/9/08
The legal axe will fall on all the troublemakers very soon.
By: Anonymous on 5/9/08
First – I only post under my screen name – there is no need to change it since it is already anonymous. And, I did not call in to Dave' show.
Second – after listening to the podcasts, it is quite clear that Gearhart's only defense tactic is to deny and intimidate (telling a caller to "man-up" should tell you everything you need to know about this guy). As for Powell, he was calm, cool, and most importantly unemotional. Emotion and business do not mix.
Third – fraud is definitely part of investment risk. Why do you thing a highly regulated, FDIC-insured bank only has to pay out 2-3% on deposits? Even if fraud is committed, you get your money back (up to $100K). Why do the North County cowboys (Hurst, EFI, 21st Century) have to pay 12-14% to entice deposits? Fraud can be a major reason for default and with hard-money, here is no fraud insurance – and that requires risk premium (higher interest rates).
By: Anonymous on 5/9/08
hot dog:
Thanks for the insight and truth. Some of you out there are so ignorant you don't know the difference between Investment Risk and Fraud. These people did not lose their money to Investment Risk under any stretch of the imagination.
By: Anonymous on 5/9/08
tick tock tick tock
Where are you now Kelly? In the Bear lair, the dewdogs, house, or maybe the Peabody Plumb moving van. Look at it this way your still free and you have almost made it to the weekend.
By: Anonymous on 5/9/08
to Enlightened
Drop the bull. Kelly Gearhart did just what you no growthers proclaim to want. Don't try to put this as a political thing. You guys want small shops. You got em. Now fil em.
Like or Dislike:
0 
0
By: Anonymous on 5/9/08
Todd
Your a idiot. Your analysis of people, politics and why people support certain veiwpoints is absurd. Pack up your no growth crap and head off. Kelly Gearhart in his effort to keep his cash cow churning built the type of crap the planners and your no growth canidates want so bad. A bunch of tiny little shop type buildings where your
"boutique" buisness and small shops can be. He alson built some of the smallest crapiest houseing in the county. So he is your teams perfect builder. Now you got what you wanted. Unfourtunatly while he was building the type of stuff you guys proclaim to want he ripped off seniors and retired people since no bank would have OK'd this crap. So back off and let this town get a real project down at del rio and when Ellen "the turtle" Bereau and "Smokey the Bear" Brenler want to talk about boutique shops pleas let them know about the 100's of vacancies of the Gearhart dog houses that are on every buildable sliver of land in Atascadero.
By: Anonymous on 5/9/08
Curious.
I'll answer that question for you about Murray, his son and how the business worked.
His son worked in the Reverse Mortgage end, totally separate from the TD business. I think the same is true for Allan, from Texas, who worked for Jay. Both these guys feel, since they had a bit of a personal connection, that they were ripped off by the supposed Ponzi scheme most think this deal was.
Of course everything was fine for awhile, they always are. But eventually things fall apart, as we see now.
By the way, I know of some hot shot realtors who were duped by this stuff. It is cruel and a waste of time to even think about how nutty the victims were or are. They were ripped off, their money was not allocated to the intended purpose in the intended way. When they asked questions the door was slammed in their face.
By: Anonymous on 5/9/08
Todd- Your right and Hurst Financial had been contributing to certain CC member election campaigns. I'd say this was a Major CONFLICT OF INTEREST. No wonder so many rules were over looked and Kelly got such good deals over other contractors. This explains all the excess building that wenet on and lot splits etc.
By: Anonymous on 5/9/08
Mr. Powell, if you are bloging here, I have a question, don't take this the wrong way, I honestly don't mean for it to sound bad, I'm just trying to gather as much information as possible right now. You said at the beginning of the radio show that your son worked for Mr. Miller, had a close relationship with the business, knew how these guys worked and how they did their loans, if you knew all this information why did you still want to invest? I invested because I was refered by a close friend who had also been a long time investor and had no clue how it all worked.
By: Anonymous on 5/9/08
Was Murray so boring that everyone got drunk last night? Maybe it's because he was so good but it looks like a lot of people had a lot of cocktails and got on the blog. Insider passed out around 9:05 and then it was a free for all!
By: Anonymous on 5/9/08
Dan & Karen! Thank you for not caving in on this topic!
Congalton was used like a rented donkey by Kelly!
We need you more than ever now! Keep up the good work!
By: Anonymous on 5/8/08
I never understood why there were two distinct factions in Atascadero. The low/slow growth open space champions against a development community. Now I get it entirely. The developers had a large support group because there were many investors with funds tied to projects and real estate in general. It was all about building if folks were going to get their 14% and making more loans. It encompassed alot of local citizens and they were all shaking hands and back patting each other. I bet 99% of the people on this site voted for people like Scalise, Nimo & O'Malley to name a few. Everyone and anyone who was into supporting construction.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
You are all still going here. I just had to read for another 20 minutes. This is so entertaining. Its fascinating too and I know it's not funny but some of it really does get comical. I have been literaly LOL and even slapping my leg in moments. What at great blog. I don't have any money invested but I love this place and I understand how you all feel. Well actually I understand how most of you feel. There are a few dorks around but thats entertaining too.
By: Anonymous on 5/8/08
Ashamed,
Nothing except getting my principal back will make me "sleep good" at night but blowing steam off about your fatass friends will make me sleep better. We all have feelings and I know what I'd like to do about mine so bugger off.
By: Anonymous on 5/8/08
To Laughing,
Your mistaking. I told Optimistic to get off this blog. Same thing.
By: Anonymous on 5/8/08
I know why some are mad, but the ones saying these hurtful things that have nothing invested need to get a life.
I have been reading, I too have plenty invested. We haven't lost our money yet. All of you that post on here are highly pessimistic and get your jollies off on saying things that are irrelevant to the situation. But whatever makes you sleep good at night.
By: Anonymous on 5/8/08
Laura,
You told Optimistic to get educated, get informed, get something but you forgot to tell her to get fu**ed.
By: Anonymous on 5/8/08
Laura,
You forgot that he also got called Mr. Turkey Man of Atascadero! Oh No.
By: Anonymous on 5/8/08
Optomistic,
No you shouldn't sue your broker and you shouldn't be posting on this blog either. Get educated, get informed, get something but get off this blog.
By: Anonymous on 5/8/08
Hey Ashamed,
Someone called Kelly a fat ass and the like and your upset about his feelings. Just tell him to "man-up". He's big on those two words and say's them all the time. He'll understand and feel much better. Don't worry dear.
By: Anonymous on 5/8/08
nice set up on the callers tonight murray!!!
By: Anonymous on 5/8/08
People have not lost any money…they are just not receiving interest payments. Cool your jets and don't be so quick to file a lawsuit. I have lost money in the stock market this year should I file a lawsuit against my broker????
By: Anonymous on 5/8/08
Ashamed say's "I'm not sure what the root of some of your anger is".. Obviously she hasn't read this site. She is just responding to someone telling her that her good friend KG has been called a 'fat ass" and pudge gutt or whatever. She should be ashamed that she even had the nerve to open her mouth.
By: Anonymous on 5/8/08
To Ashamed: Are you kidding me, you don't know what the root of the anger is? People have lost their retirement, lots of money that they worked hard for and you wonder what their anger is about. Are you living in la la land or what?
People have been bilked by two shisters and you are upset at what people are saying. Unbelieveable!
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
To Ashamed,
You obviously haven't lost the kind of money that some of us have. You might even have benefited from the money we lost. If you did then you should be ashamed.
By: Anonymous on 5/8/08
To Insider,
Kelly was angry with the city (particularly Wade McKinney) over the Printery (and maybe some other things). He turned over documents to Karen proving that the Printery was 2 days short of closing escrow when the earth quake hit. He also confirmed that the Printery hadn't been an operating Youth Center. He said it all on tape! He wanted Karen to launch the FEMA Fraud story and pull in the FBI. The story caught their attention. They are now investigating city hall and will surely turn their attention to him before they leave town.This is not a small matter, its very serious stuff and it's interstate besides.
By: Anonymous on 5/8/08
u have been posting on this site for a few days now, and tonight has just gotten out of control. I hope you all get thrills out of acting like 2 year old and calling names.
You know what, no matter how you feel about a situation, messing with someones feelings is not right.
Good luck to everyone. I will no longer visit this trash site and I hope you all realize that everyone has feelings, some show those feelings better than others. I'm not sure what the root of some of your anger is, but if you have to come to this site to express your personal vendettas, more power to you. Just realize you all look like a-holes and name calling will get you nowhere in life….
By: Anonymous on 5/8/08
to Investigations
Tell more.
By: Anonymous on 5/8/08
to Dog 3
Take the property back and file suit. Why be limited to one or the other.
By: Anonymous on 5/8/08
Kelly wanted the FBI in Atascadero. Now they can turn their attention to him before they leave.
By: Anonymous on 5/8/08
Uncoveredslo has a pro bono attorney.
By: Anonymous on 5/8/08
It doesn't look like there is a plan for the investors to get their money back yet. I can see that it's difficult to decide weather to jump into a law suit or try and take over the projects or just collect your first trust deeds or whatever. What a mess. There are a lot of people rooting for you all who have been ripped off. Both my neighbors are talking about it and one of them has a friend that appears to have lost on a project. I don't which one. I told them to send the friend to this site. They have most of the info from the Congalton Show.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
to Fighter
Don't try and take this situation and try and make it about your agenda. My appologies to your girl.
By: Anonymous on 5/8/08
Gearhead said on Congalton that this site has slandered him and he's gonna sue.
He and his drunken bubbas have said the same here.
LET'S SEE IF THEY'VE GOT THE BALLS TO EXPOSE THEMSELVES TO THE DISCOVERY PRIVILEDGES OF DEFENSE COUNSEL OR IF THEY ARE JUST DOING WHAT THEY DO BEST – TALKING OUT OF THEIR FAT ASSES.
By: Anonymous on 5/8/08
Hey Legal Problem Maker
Your as funny as MW is and you sure do think alike. Get my drift Mr. Turkey Man of Atascadero?? Check into ASH.
By: Anonymous on 5/8/08
Hey Insider,
You just said that Ellen Beraud "looks like a turtle" and then you told me to have a heart. If you don't like some of the CC thats your perogative but lets not get nasty. I think Ellen is very pretty and so do a lot of other people.
By: Anonymous on 5/8/08
Legal Problem Maker
Karen and Dan will have no problem reporting on Gearheart's prosecution, trial and jail time.
Maybe you should just finish off that 12 pack and call it a night.
By: Anonymous on 5/8/08
Don't you find it funny that not one of Gearhart or Miller's friends or even either one them didn't call in. They didn't "man up". Guess they knew that they met their match. How could they justify what they did….they couldn't. They are going down! I hope they look good in stripes!
By: Anonymous on 5/8/08
WOW, I've been out of town for a while. I have been reading for an hour. This is sensational. Hey, uncoveredslo got Kelly Gearhart and they got him good. I've been hearing about the KVEC shows from my neighbors. WOW Again. I didn't think Gearhart was that foolish. They say he needs to shut up unless he's telling the truth because he sure is a lousy liar.
By: Anonymous on 5/8/08
to fighter
Where did you come from. I in no way support Brennler or that woman who looks like a turtle whats her name. They have nothing to do with this and Brenlers petty attack at Gearhart was just that. We don't need someone who thinks he's still a cop on the C.C. This is a issue about people getting ripped off and not a place for you to try an gain some political gain for your favorite canidate. Have a heart.
By: Anonymous on 5/8/08
I love guys like Powell who stand their ground, file their lawsuits and refuse to negotiate: "Pay me or get your fatass to court."
On the other side of the coin you got weasel ass little girls like Gearhead who whine and play their little games, threaten and end up scaring off the weak and paying the rest.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Karen, Dan and Congalton sure are going to have a lot of legal problems. I just don't know how the 3 of them are going to keep up with the level of information they get out to the public once the trials, proceutions and jail time starts.
By: Anonymous on 5/8/08
Yup amoung other things Gearhart was elected man of the year in Atascadero. Thats why we voted in Brennler and Beraud. To clean things up. Brennler was onto Gearhart from the start. He took a lot of heat on it but I think he's been vidicated now.
By: Anonymous on 5/8/08
Listened to the podcast. That Gearheart idiot was named Atrashcadero Man Of The Year?
Actually, that makes sense.
By: Anonymous on 5/8/08
to Hahhah
Thanks. I decided not to respond to the witty M W as I determined he was a mental midget. Maybe your right he maybe the fatass midget himself. My appologies to the little people on that one.
By: Anonymous on 5/8/08
Naner Naner Kelly, What goes around comes around. I told on you:)
By: Anonymous on 5/8/08
I think I just saw MW respond to insider. MW has to read everything on this site to keep up so how is it that insider has no life and needs to visit ASH but MW is OK? Good One.. It sounds like MW might be KG. They sure do think alike.
By: Anonymous on 5/8/08
Put Straight Shooter Powell on the stand.
Put fatass pussgut on the stand.
I'll put my money on Powell.
By: Anonymous on 5/8/08
To Hummmm,
"The Moose Lodge"??? LOL
Give me a break.. still LOL
By: Anonymous on 5/8/08
“After doing business with Gearhart Development for 23 years, I HAVE DONE MANY OF MY LOANS IN THE SAME NATURE. I obviously know we are under-secured at this time, due to the building not being constructed.”
I am astounded that Hurst would ADMIT IN WRITING that is COMMON PRACTICE for them to violate their contractual and fiduciary obligations by advancing 100% on 0% complete projects.
Can you say "take me to court and pound me in the as*?"
By: Anonymous on 5/8/08
to Slow Bear
See knowbody likes your crap no matter how you try to dish it out. And no matter how you try to hide it its apparent to all its you. Empathy is obviously not your strong point. If anyone wants to here your lefty rant we will be sure to send them to your site.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Insider . your the duck with nothing to do ( must be a x gov employee ) check yourslef in soon . you need professional help . what would happen if your computer would go down ? I think you would go postal. GET A LIFE ! I will not respond to you I have things to do , like live .
By: Anonymous on 5/8/08
That last caller to Powell had to be SLOW Bear – the one who rambled on about risky investments and then slithered away when Powell told him it wasn't about risk, it was about fraud and theft.
That sure is one SLOW, brain damaged bear.
By: Anonymous on 5/8/08
to the investors
My sincere appologies for any light I make of this. I am on your side and have only persued this because I know in my heart of hearts you have been ripped off. I hope you recover as much as possible. I know you want to trust them and think they can somehow get your money back but the funny thing about money when its gone its gone its time to take them down, secure the property and make the next best choice.
By: Anonymous on 5/8/08
Speaking of Atascadero local gov. I bet O'Malley and Clay are crying to the Good Ole Boys at the Moose Lodge (or whatever that club is"
By: Anonymous on 5/8/08
to Kelly or Mr. Anonymous
Come clean or will take you out there behind the home depot and throw you in that group of senior citizens that wants a piece of you.
By: Anonymous on 5/8/08
Kelly Gearhart – You sure are arrogant. I bet Wade McKinney is loving this..
By: Anonymous on 5/8/08
to Mr. Kelly Anonymous Gearhart
What do you mean if houses were selling you would get your interest payment. Those comercial projects have nothing to do with houses you were supposed to have to money to pay interest payments in order to get the loan. Right?
By: Anonymous on 5/8/08
What happend to ANNOYED? Did he strangle himself? LOL
By: Anonymous on 5/8/08
I had a good laugh when Powell told Gearhart to "man up" and tell the truth. I recalled Gearhart pulling the "man-up" game on a caller last night as an excuse not to answer a question.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
This is really getting quite entertaining wouldn't you agree? Kelly?, Jay?
By: Anonymous on 5/8/08
HOLY SH*T.
Powell is not someone to be messed with: "I will only have 2 types of meetings with Gearheart – to pick up my money or to see you in court."
This is getting good!
By: Anonymous on 5/8/08
to the Judge
Whats the best defence to a lawsuit? The TRUTH
By: Anonymous on 5/8/08
you all owe this Powell guy a load of thanks. You need to get together in groups and file your own actions. Powell was right on the mark. Kelly or Mr. Anonymous as you prefer it looks like your army is starting to run the other way. I don't see much coming from your side here and what I do see is childish at best. I'm sure you and Jay will turn on each other real soon. I'm sure Estate is enjoying this as it takes the light of them for a few minutes. Thier builders are pretty safe since Estate did such a lousy job of releasing money when the work was done. In your case Kelly you just took the money. I wonder who the other contractor with the 30 lots that also ran off with the funds was. Throw that name out Kelly you may divert some attention long enough to get out of town.
By: Anonymous on 5/8/08
Judge, as usual the freaks pop up whenever you least expect them. Kelly and Jay could have called to defend their position-they didn't because they have no position. Uslo and Dave getting sued-what planet are you on?
for those who want to connect with others:
rippedoffinvestor@yahoo.com
By: Anonymous on 5/8/08
The best way to get access to all documents is for Gearhart to sue and open himself up to supeonas and discovery.
By: Anonymous on 5/8/08
Lawsuits will be all over the place and this website and Congalto nwill need legal help.
By: Anonymous on 5/8/08
I like that guy Powell, he's a straight shooter who doesn't get distracted with the smoke and mirror evasive tactics and knows his way around the courthouse.
By: Anonymous on 5/8/08
Thanks Dave Congalton..
GREAT SHOW. I appreciate you bringing out the facts. You have helped so many people.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Fatass messed with more than one too many.
By: Anonymous on 5/8/08
TO ANNOYED,
Go strangle yourself. Powell is going to take us home later.
By: Anonymous on 5/8/08
this murray dude seems like someone who is not to be f*cked with.
seems fatass messed with one too many pilgrims.
By: Anonymous on 5/8/08
Murray Powell has the most annoying, droll voice. Get him off the radio before I strangle myself!
By: Anonymous on 5/8/08
Powell sounds right up straight to me. How about Rita, the woman with M.S? Is this all her stupid fault?
Speak up Dewdog. Do you really think it's all her fault? Do you really think Gearhart is an honest guy?
By: Anonymous on 5/8/08
this murray guy sounds like he's gonna put a hurtin' on pussgut kelly.
By: Anonymous on 5/8/08
this murray guy sounds like he has had a few too many drinks
By: Anonymous on 5/8/08
Powell: "This has nothing to do with real estate. This is a situation where we invested with Hurst, and THEY GAVE OUR MONEY AWAY."
Bingo.
Game over.
Book'em Dano!
By: Anonymous on 5/8/08
sounds like this murray powell has a personal problem with jay and kelly…his son probably does too.
By: Anonymous on 5/8/08
As I thought that piece of crap over borrowed senior project behind the home depot has never been finished and now is in default. Hopefully the investors can get enough rent from it to supplement thier incomes untill they can sell them sometime in the future.
By: Anonymous on 5/8/08
How does Mr Powell not think it has nothing to do with the real estate market? If houses and buildings were being sold, you would be getting your interest payments.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
to Slowww Bear
Was that you. Do you get it yet?
By: Anonymous on 5/8/08
The Congalton callers supporting Gearheart were a laughable parade of backswoods, deer molesting, wife beating, meth snorting, brain damaged, hairy palmed midgets.
High entertainment.
By: Anonymous on 5/8/08
Gearhead publicly gauranteed that project as-is has a current value of $100M.
Consequently, he should have NO PROBLEM refi'ing and cashing out all lenders who want out.
By: Anonymous on 5/8/08
Sounds like a dumb ass to me! Duhh. Anyone can throw around facts and numbers to look knowledgable. Don't try to act like you aren't trying to ruin lives and say its not personal! He admitted his son worked for him. Does he still? Maybe his son is involved? Dun dun dun….
Oh great, Alan, the IDIOT from Texas who invested his whole retirement, and living on his interest check is back on! Smart move!
By: Anonymous on 5/8/08
Slowww Bear
Are you listening. Maybe you should get on the phone and tell this guy your concept on how its all his fault.
By: Anonymous on 5/8/08
Typical big-fish-in-a-small-town swindler. They're all the same, they all bluster and swagger right up until the time that they are hooked up and hauled off. Then they snivel, cry like little girls, and profess that God will forgive them.
By: Anonymous on 5/8/08
to all the Anonymous Supporters
So where are you. Are you listening. This guy sounds pretty straight to me.
By: Anonymous on 5/8/08
to M W
Well if it walks like a duck and talks like a duck and looks like a duck most likely its a duck.
By: Anonymous on 5/8/08
Sounds like this Powell guy is going to be a bit of a problem for Kelly and Jay.
By: Anonymous on 5/8/08
Who said I was a Gearheart supporter ? I said you need to get a life ! I know they have a room at ASH . you should look into it . FAST
By: Anonymous on 5/8/08
to MW & all you Anonymous
Gearhart supporters
He will screw you the same as everyone else so don't get to comfy. That is unless you are one of his real estate people or loan brokers in which case you have probably made out quite nicely and were smart enough not to invest any or your own money in these projects.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Insider is "RIGHT ON". For those of you who are friends of Mr. Gearhart, you are certainly loyal and he can't be all that bad to have such good friends. the bottom line is that the investors, lenders have been cheated, misled and lied to as recently as last night. Is anyone out there excited to here that the Vista Del Hambre land is valued by Kelly at 7.41 Million an acre!!!
By: Anonymous on 5/8/08
insider , you have nothing better to do all day but blog ? Your the fool . Get a life. There's things in the world besides talking crap.
By: Anonymous on 5/8/08
to interesting
I hate to say it but you appear to be a fool and you know what they say about a fool and thier money. Don't you remember the big sales pitch when you signed on the dotted line. All our loans are protected by California real estate and You as a first trust deed holder have the property as your security. And yet you allow them to control you. You still have the best hand and yet you let them bluff you out of the game.
By: Anonymous on 5/8/08
kelly is trying to work through the problem rather than giving up like other contractors. he could give up like the others and file bankruptcy..then investors woulld never get their money back. at least he is working hard so that doesn't happen
By: Anonymous on 5/8/08
You know the one thing that is true is the situation in housing and construction is not good. Many other contractors have failed and exited the situation. The problem with Kelly is he has failed and insists on continueing on. The biggest concern the investors should have is his statement last night that was meant to reassure them. And that was I'm not going anywhere. Thats the problem Kelly was underwater years ago he just could not accept it. Just like Estate. So instead of licking his wounds sitting back, liquidating his assets and attempting a measured comeback he countinued to buy buy buy and borrow borrow borrow pushing one bad deal into the next. There is a point that no next deal no matter how good you think it could be can cover your tracks. Now thats where we are at. I know lets loan him some more money.
By: Anonymous on 5/8/08
to Laughing
I'll be hear listening and blogging. Woudn't miss it.
By: Anonymous on 5/8/08
to Anonymous Gearhart
Nothing personal its just Gearhart is the worst of the worst in a developer. He typifies the stereotype. He exploits the land, the resources, the seniors, the retired, and then blames them for being greedy. His projects are just a way to keep churning the cashflow cow. There is nothing meaningfull in what he does. He has taken good honest men and dragged them so deep into his personal hell hole that they are now involved in trying to defend him. Right now its clear his family and buisness partners are trying to blog him into Sainthood. I'm just doing my little part to keep perspective on the matter.
By: Anonymous on 5/8/08
Ok, I know how to settle this. Insider needs to post tonight while Powell is on KVEC. He can't be both places at the same time. I'll be watching, and insider should post while Powell is talking.. I don't think insider is Powell.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
to laugher
Your right. Kelly never did anything he wasn't required to do. I Kelly built some of the smallest cracker boxes in the community it was cause they were cheap to build and quick to sell. If he participated in affordable houseing it is because they made him. A lot of could that did the buyers now thier stuck with a deed resticted home that they can't even sell for what they paid for it. LOL
By: Anonymous on 5/8/08
To Insider:
I think you have a personal issue with kelly. Here again come the attacks on him and his family.
By: Anonymous on 5/8/08
to interesting
Which of these blogs do you think is Mr. Powell. I assure you its not me. Most of the rest are by Kelly and his lackies the anonymous brothers. Must be some kind of inbread family thing.
By: Anonymous on 5/8/08
To Anonymous,
Did you say Kelly puts people in homes that can't afford them? Like whom, where and when? The affordable housing scam is just that, its a scam. Its a way for developers to get more houses on lots. The homes are smaller and still are not affordable. What did he do, sell someone a house worth $350K for $350K on a postage size lot next to larger homes that were worth 100K more? Oh geeez what a nice guy he managed to squeeze a couple of extra houses onto a lot and laugh all the way to the bank.
By: Anonymous on 5/8/08
to Paso Guy
Sound interesting. It sure isn't any good as a golf course mayb a paint ball park is a better idea. You could hide in the weeds. Kind of like what Kelly does with your money.
By: Anonymous on 5/8/08
i wonder if murray will show up for the radio show tonight….he might not be able to leave his computer from posting all these blogs
By: Anonymous on 5/8/08
The gold course is only 14 acres! That means Kelly is claiming that the land is worth 7.14 Million an acre! Its a junk golf course by the airport. Is this the equity that the investors are supposed to take solace in? Oh my Lord what a lying piece of sh-t.
By: Anonymous on 5/8/08
Murray Powell will be on Dave Congalton's show, 920KVEC AM, at 5 p.m. today to talk about his lawsuit against Gearhart, Hurst et al.
By: Anonymous on 5/8/08
I have a suggestion for Insider and Anonymous.
How about you two meet at the Links tonite, say 5PM at the 1st tee. I will provide the paint-ball guns and you can settle your differences mano-a-mano.
You two up to that?
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
to anonymous
So you think he's right its worth 100 million is that what your saying? How far up his ass is your head?
By: Anonymous on 5/8/08
to anonymous
This is your definition of successfull and smart. I'd rather be dirt poor and the village idiot than successfull and smart if Gearhart is the definition.
By: Anonymous on 5/8/08
I am sure lots of banks are willing to refinance $100 million
By: Anonymous on 5/8/08
often bad bad people do good things in community its kind of like a pay off. Unfourtunatly for Kelly its not a game with a scoreboard where 1 good deed erases 10 bad deeds. So the community got back some of his ill gotten gains. Does that make it OK. He could do a verry good deed right now by refinacing that property that he says is worth 100 million and paying back the investors and paying the subcontractors who actually are the ones that provided the materials and labor for what ever work is done.
By: Anonymous on 5/8/08
I heard Kelly bought the golf course for $2 million a few years ago. So with three shell building and a few port-a-potties it is now worth $100 million. Its 14 acres in Paso near the airport.
By: Anonymous on 5/8/08
well i am sure it went to permits, plans, grading, oh ya and then you have delays so it is more money to spend and then while paying interest on top of that….it adds up!!
By: Anonymous on 5/8/08
to anonymous
The reporters stated the property was worth 5 million and that Kelly borrowed 28 million that nobody knows where it went. Kelly's responce is that 28 million figure is incorrect but then refuses to state a figure he thinks is more in line. Which he should know that number but apparently not. Then with no coaching comes up with a 100 million value for the project as it stands. The reporter even tried to give him room to back out of that but he insisted 100 million. So if you Mr. Anonymous are a supporter of Mr. Gearhart you must belief a person of his integrity. And if you believe him then 50 million would be a fire sale. Since the project is so complete by Kelly's own words if your smart forclose, spend the minor amount need to complete those pesky little things that are left "the buildings" and you and the other investors could recoup a small fortune. So what if it took a few years at that value you could borrow your original princible back out and wait for the market to return. Now thats all unless you think Gearhart might be blowing smoke up your but.
By: Anonymous on 5/8/08
kelly is a successful and smart man and people just want to see him be brought down because of that….look at all the good things he does for the community. everyone is just jealous
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Kudos to the 1-2 punch of Velie/Blackburn and Congalton. The radio segment last night gave Gearhart more than enough rope to hang himself and I thought Dave was very fair in not trying to be accusatory. I like the teamwork being displayed with our local media and hope it continues for many years to come.
However, I do agree that the site administrator should remove all the personal attacks, especially on the Gearhart family. Those are cheap shots and detract from this site.
By: Anonymous on 5/8/08
yeah but he also employees hundreds of people, puts people who cant afford housing, in houses, and has done so much more for the community than most people would even think of doing. You just thrive off negative entertainment and dont see the positive with anything. Both Mr. Gearhart and Mr. Miller are great, caring, giving people and there are just a bunch of greedy a-holes out to get revenge because they will never be as successful.
By: Anonymous on 5/8/08
Last time I checked the economy wasn't doing to well, so I don't know how many people are willing to buy a $100 million dollar property.
By: Anonymous on 5/8/08
Kellys really pissed people off. There has been more investors readily giving thier names than with the Estate deal. Gearhart really rubs people the wrong way. That will probably be his downfall hes just an SOB what else can you say.
By: Anonymous on 5/8/08
if nothing is selling…how do you think you will be able to get a sale? oooh smart one
By: Anonymous on 5/8/08
to anonymous
What would you do with the property. Didn't you hear Kelly last night. He says its worth $100 million as it stands. You guys could sell it at half price and double youre money.
By: Anonymous on 5/8/08
Plenty of people called in and no one gave their last name. Kelly answered what he wanted to answer depending on if he could get away with lying or not. In some cases he was up against the wall and didn't answer because there was no place to hide or lie.
By: Anonymous on 5/8/08
On second thought if Gearhart filed a chapter 11 he might be able to string things out for quite some time. Certainly hang on to the property while he proposed some plan. Damn we could be talking about this for years. Last night showed hes capable of anything. No attorney would have recommended going on that show.
By: Anonymous on 5/8/08
What is this lawsuit going to accomplish?? Wasted dollars and time. I am an investor and I wouldn't want to forclose on a property…then it will just be our problem. I think everything will be fine we just need to wait it out bit
By: Anonymous on 5/8/08
to Mr. Anonymous
Isn't that the pot calling the kettle black. Whats your name?
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
To insider….
its because you are a coward and hide behind the computer..
By: Anonymous on 5/8/08
to anonymous
Kelly decided he wouldn't answer any questions from anyone that wouldnt give thier full christian name. Now if I called in and gave my name I wouldn't be an insider anymore would I?
By: Anonymous on 5/8/08
The subs aren't getting paid. You're not getting your interest. Taxes are not getting paid. Unlike Estate from what I understand all loans are securred with a first trust deed. All you lose is your interest while you wait to see if Gearhart completes construction or files Bankruptcy. Oh wait if he files you may still be able to get your property back although it will take a year or so longer in Bankruptcy Court.
By: Anonymous on 5/8/08
I got news for you Bubba, the sooner Gearheart is in jail the more of your principle you will get back – and sooner.
He is banking on the investors doing exactly what you propose – cooling their heels and eventually walking away with a total write off.
By: Anonymous on 5/8/08
To Lender,
I see your point, I hope your right.
By: Anonymous on 5/8/08
I am a lender at the Vista del Hombre project, I've talked to the city, the sewer and water line infurstructure is complete, will need to be connected once the sewer and road improvments are completed on Dry Creek Rd., the first 9 building plans have been submitted for permits and are being corrected by the engineers, the first 11 lots have been graded and prepared for building once plans finish going through the plan check process and permits are finally issued, the interior road although looks unfinished because of weeds is 90% done, just needs base and asphalt. Sounds to me that the majority of the costs in this project have already been done, from what I understand the final actual building of the commercial buildings is inexpensive, all the heavy costs are upfront before building can start.(Permits, plans, engineering, surveying, excavating)So i'm not afraid of losing my money at all. I'm willing to wait it out, what good would a finished building do right now anyways, no one is buying, its gonna be a year or two before people start buying again anyways. I just hope all these lawyer fees that arise from other hostile lenders don't cause Kelly to quit building, I want my priciple back and I'm not going to get it if he is sitting in Jail.
By: Anonymous on 5/8/08
All Gearhart family members have a right to post here, including Kelly's brother. Why should his post be pulled? He is entitled to voice his opinion and his expierence. I'm proud to be on this blog. I'm proud that Dan and karen do "real investigative reporting". Anyone who doesn't like this site is afraid of the truth. Watch Out you might be next if they haven't already caught you and told everyone.
By: Anonymous on 5/8/08
The golf course at Vista Del Hambre is a small part of the project. What about the real construction? Where are the buildings. The money is gone and the permits aren't even all in place. Go and check for yourseves. By the way.. Dave Congalton has an excellent show in fact he is the TOP RADIO HOST in the county and has over 40,000 listeners. He will never be "washed up". For those of you who are afraid of the truth just wait because you haven't seen the half of it. Yes be scared of Congalton and tell us all how much you hate him and we will tell you that we know you have something to hide.
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
And for those who think this website is "AMAZING"
something should be done about who is filtering through these blogs. When people take personal stabs at family members, lost loved ones, etc, those comments should be pulled IMMEDIATELY. You have no class. I wouldn't go bragging about your site there, I would be embarrassed to have my name on this
By: Anonymous on 5/8/08
to anonymous:
Good call with no one ever calling out Gearhart or Hurst to see where the money is coming from until something like this happens. People don't care if something seems shady until they aren't getting their 12% back for 2 months. No one has "lost" their money yet.
I am also invested in the Vista Del Hombre project, and I golf there weekly. As I go out there, I see improvements weekly. Everyone out there is working hard to keep the project going. I bet half of you that are complaining that 1. its not going to be as nice as they say 2. the project will never be complete, havent even stepped foot on the golf course.
Maybe if you want your investment back, do something good for the community to get some revenue going….get off your butts and do something else besides sit here all day behind a computer and bash people who are working hard so you can get your money back….
And those who have such strong opinions (insider, etc) sure funny we didn't hear you call on the show last night… coward
By: Anonymous on 5/8/08
KVEC knows that congalton's show is a liability not an asset.
Dave is struggling…he is spent…tired…and has reduced himself to a puppet of the far left.
He is sucking the enerygy from this site!
Uncoveredslo is a great new site that will do just fine on their own.
Don't be misled! Congalton is so far gone he has to annonymous clones debating on Monday's show!
Can you imaging and talk or news show letting annonymous clowns in the air? It's 100% irresponsible! But it's all Dave has left now that he has sunk to a mere puppet of the radical sorros left.
USLO should get as far from him as they can.
Doubt me? Watch what KVEC does over time with him.
By: Anonymous on 5/8/08
Dave ran a great show yesterday at 920 KVEC. He let Kelly bury himself. No one can say that Dave took any sides or steered the show to the detriment of Kelly. Kelly did it all by himself to himself. Without Dave very few people would know about uncoveredslo. So if you love this site and the work that Karen and Dan do to bring honest information to everyone then give Dave Congalton a big applaud.
By: Anonymous on 5/8/08
Attention potential Gearhart investors: Listen to the Congalton podcast.
Nobody who listens to that KVEC Congalton interview would ever invest with Gerahart to build a dog house.
He makes it crystal clear that he looks upon his investors the same way a street criminal looks at his marks: They deserve to be screwed, and he takes pride in doing the screwing.
By: Anonymous on 5/8/08
I just heard the podcast! OMG! Kellu used Dave like a puppet! He mopped the floor with dave and Congalton was helpless to dturn it around! He stammered and bumbled along while Kelly ran the show for the hour!
What a discrace! KVEC better rethink this program. nless Dave is hating Bush or America he is impotent!
Like or Dislike:
0 
0
By: Anonymous on 5/8/08
Kelly has always been this way, nothing has changed. Lenders loved him when they were getting 12% for all those years. Kelly is a developer and not a public speaker. Hurst has ran their business the same way for 22 years. No one ever called out fraud before, why? because they were all getting rich. It is not Hursts fault that the guy from Texas invested his entire nest egg and was living of the interest checks. Also, Kelly probably cannot pay his sub contractors because all his money went to interest payments, $4 million dollars a year. The money all probly went to interest payments to various investors.???
By: Anonymous on 5/8/08
Congalton is flailing & failing! He is super glued to your apron strings! Cut him loose! He will drag you down as well!
You should have the blog for local and national issues! You should contact a local radio station and have a daily show!
His time has come and gone…It's over!
You are the fresh new appraoch full of hope and change and we all want to support you…Let us!
1) Kick Congalton to the curb. He is over! KVEC will dump him soon. I give it till after the November election tops!
2) Start a blog! Just do it!
3) Get a local radio talk show! You guys would kick ass.
Do those 3 things and ther cash will roll in! Lot's of it!
Don't let this opportunity slip away.
By: Anonymous on 5/8/08
I believe the real question remains, have the "lenders" funds been in a escrow account for the specific construction project they were intended??? If they were paid out in interest on those projects then what are we left with if no "sticks" have been raised and the dirt is worth less than than 1/2 of original loan on a good day.
This relates to another Atascadero Homeowners LLC/Hurst loan.
By: Anonymous on 5/8/08
Hey Kelly! Here's some advice for you about your future: If you drop your soap, don't bend over to pick it up!
By: Anonymous on 5/7/08
Too all ,especiallly those who last posted, never make fun of those o trusted, You are piraare.
By: Anonymous on 5/7/08
To Mr. Texas….
What are you thinking putting all of your 480k of retirement into this high risk investment and having to "live off your monthly investment check." I just actually answered my own ?. you werent thinking!!!
(Too angry, learn how to spell)
By: Anonymous on 5/7/08
I'm just too angey with Kllyc and Jay that I can't go there right now
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
Hey Samsonite.
I really just have to say "keep working in"'
By: Anonymous on 5/7/08
I believe when the cards are all on the table on the various loans at Hurst that are no longer paying interest, in most cases we'll find that the so called missing money was all paid back to investors as interest payments. The city of atascadero planning dept is completely out of control with never ending plan check corrections, add that to the worst real estate slump ever and all the hard money projects are upside down. This is not fraud and mis management its a Reality check. I remember when my Retirement mutual funds lost 60% of their value. This was very painful, and reminding myself that the first rule of investing is NOT TO INVEST MORE THAN YOU CAN AFFORD TO LOSE didn't make me feel much better. I can't say there was no wrong doing whatsoever, But I do know some builders who have poured their hearts, soles, time and money into Hurst projects that are failing for reasons beyond their control. Time will prove these facts out with many of the borrowers. Lets not be in a rush to lump them all together as and condemn them as crooks.
By: Anonymous on 5/7/08
Keep working hard Kelly. Good things come to people who work hard. You have a lot of support, all of these people will be kissing your feet when you finish this great project and everyone gets paid off. People get scared when times get tough. Do your best, thats all you can do. It's funny how all the people you have made money for over the past 25 years turn on you when times get a little tough. I'm sure the caller that questioned you having some past due subcontractors didn't take in to account that you have probably supported thousands of people over the last two decades and now you are struggling a little and nobody wants to cut you any slack. Engeneers, plumbers, laborers, landscapers, loan officers, real estate agents, building suppliers and everyplace all these people spend their money prospered because of you.
By: Anonymous on 5/7/08
i just want to smoke a bowl..
By: Anonymous on 5/7/08
I was rivted to the radio the entire hour tonight. Those phone calls were amazing and I can't believe Gearhart came on the radio. What was he thinking????? Thank you Dan and Karen — and Dave too. Glad to have such an active local media involved on our side.
By: Anonymous on 5/7/08
to anonymous
You really don't know get it. In general the Criminal Authorities don't like chasing this stuff around. They for the most part consider this type of stuff civil and don't want to waste thier budget helping one crook chase another crook over money. They pretty much consider everybody involved a crook of some kind.
By: Anonymous on 5/7/08
What still mystifies me are several comments by investors that the developer owned the land outright on thier project and only borrowed the construction moneys. I don't believe that for a minute. It's most likely Kelly did not put in one cent. I'll bet anything the land was purchased with the investors money. Check it out.
By: Anonymous on 5/7/08
Get this straight:
The fund manager considers the investors to be patsy's that fund loans that provide him with fees.
The borrower considers the investors to be patsy's that can well afford to lose all of their investment and they therefore see no obligation to repay the loan.
That leaves the investors with no choice but to pursure their complaints through the regulatory and legal process.
The sooner they understand this, the better their chances of recovering any funds.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
See what mean? to Kelly, SLO Bear, DewPoodle and their kind, the investor is "a nut" who deserves to be swindled and the swindler is just doing what anyone would do.
That is what you are up against, and it is to your benefit that you know that upfront.
By: Anonymous on 5/7/08
to anonymous
Someone who trusted these guys and probably you too.
By: Anonymous on 5/7/08
Hey insider , what nut invests $480.000.00 that he cant afford lose in 12% interest account ??????
By: Anonymous on 5/7/08
It's a common criminal mind set: "If you are rich enough to loan out $480k and stupid enough to loan it to me, I am justified in stealing it and you'll get no sympathy from me."
Kelly being stupid enough to come right out and say it is actually helpful fro people to see him clearly for what he is.
By: Anonymous on 5/7/08
to dogdoo
You wanted to wait and see how this went. Well have you seen enough yet?
By: Anonymous on 5/7/08
Dear doesn't fit . I'm just fine having a glass of fine wine ! U.B. get a life !!!!!!
By: Anonymous on 5/7/08
could you believe how badly Gearhart treated the guy from texas who loaned him $480,000. Its almost as if he was saying your not hurting if you can give me $480,000. The arrogance of that little puke.
By: Anonymous on 5/7/08
Hey Anonymous,
Maybe I'll should just snap your panty hose for you. My pants fit just great, but I suspect your in a "bit of a squeeze " if you please.
By: Anonymous on 5/7/08
The difference being that they did not invest their money to be advanced beyond the contractual conditions, which both Hurst and Gearheart have violated.
Are you not smart enough to iunderstand that
By: Anonymous on 5/7/08
to Anonymous
"The biggest whiners will be the biggest losers in the end" That sounds like some kind of threat.
By: Anonymous on 5/7/08
To Hanging On..
I'm trying to protect the project that I'm in to. I heard that mine might have foreclosed. I had a little money $125K to invest but I'm not financially savy. How can I find out if something is foreclosed on without calling a lawyer and spending money?
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
Why is everyone turning on kelly? He is the same person now as he was when everyone initially invested.
By: Anonymous on 5/7/08
So linda are you powell's main squeeze ?
By: Anonymous on 5/7/08
Right here and now I dare Kelly to call in and challenge Mr. Powell tomorrow night. I dare Kelly to find one fact that is not true that Mr. Powell will state in his facts tomorrow night. Facts are facts and Kelly is a liar. He lied about not co-mingling funds into other projects. Call in Kelly I dare you!
By: Anonymous on 5/7/08
To Backs Jay???:
If it doesn't fit maybe you should get a bigger pair of pants!!!
By: Anonymous on 5/7/08
Cripe, This Gearhart/Hearst deal sounds like EFI all over again. Glad I was only in one group.
By: Anonymous on 5/7/08
People know a baldface liar when they hear one, and Gearhart could not have been more obvious today if he had arrived in his Rolls Royce to pick up a welfare check.
Any small time criminal knows that buying time is key, and the way to buy time is to deny, deny, evade, accuse, deny, insult, intimidate, deny, deny, cry, cajole and deny.
It's all about buying time, because he knows that when he can no longer buy time, he's gonna be DOING time.
Investors need to take a page out of the EFI playbook and relentlessly pursue their best interest without delay or distraction.
You've been defrauded and it is up to you to achieve justice.
By: Anonymous on 5/7/08
To Anonymous….
How in the world can you back Jay when he gave Kelly all the money "up front". Yes I gave Jay the money to invest for me with agreed contigencies. He violated my trust. Don't even try this one on with me. It doesn't fit.
By: Anonymous on 5/7/08
Does anyone remember the song that a part of later became a cliqche "Ask me no questions and I'll tell you no lies". I just want to puke.
By: Anonymous on 5/7/08
To Peabody's Plumb:
This is not Mike Sherer that called in. Just remeber they did not take your money, we gave it to them to invest and I back Kelly and Jay 100% that we will get our money back…as far as I am concerned we haven't lost anything. We are just not getting interest. The biggest whiners will be the biggest losers in the end
By: Anonymous on 5/7/08
I have been following all of this and I really don't know what to do. I'm trying to protect my project. Hhahh "My Project" what a joke. I don't even know if there is any funding left for the project I'm invested in. I know its not built and I want to hope even beyond all hope that I'll get my money back someday. Lets just pray and not attack. We must band together to save whatever is left and maybe in two years or three we will recover our money. I know wrong has been done but putting people in jail won't save us.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
Wow, some show. Looks like Kelly is pretty arrogant and very loose with the truth. And his refusal to answer pointed questions about his funding machinations throws doubt on his whole trip.
Let's just hope, despite his many ethical shortcomings, that he can pull a rabbit out of a hat and make these projects work.
My contacts tell me there has been so much graft and illegal fiddling with your money (ponzi schemes) that some magic will be necessary for a happy conclusion!
If you doubt the doubters just go by your project, see what it looks like, and ask Kelly/Jay where the money is. Don't be brushed off, insist on knowing where your money is. You'll be brushed off…
By: Anonymous on 5/7/08
Come on Dewdog.. Say something we can believe about your buddy. We know that you are in real estate and trying to be fair while not hurting who I think is a business buddy of yours.
By: Anonymous on 5/7/08
Why is it that every time Kelly screws up he tries to blame a government agency. He has been in development a long time and if he isn't incompetent then why doesn't he understand the permitting process yet? By the way, he does have to build a sewer to the Paso Robles City extention. Its a big job and it's not done and he hasn't even applied for the permits. Check with Paso Robles Community Development Dept yourself. I did..
By: Anonymous on 5/7/08
Market Down Turn "my ass". This is about negligence and borrowing from Peter (literally) to pay anonymous Paul.
By: Anonymous on 5/7/08
Anyone know who the other guy with the Mancrush on gearhart (dewdog) is?
I wager he is also in the real estate business.
By: Anonymous on 5/7/08
Hey all, the guy that called into Kelly and supported him who was named Mike is no other than Mike Sherrer from Peabody & Plumb. Give them no business if you plan on selling or buying a property. They can't be trusted.
By: Anonymous on 5/7/08
Thank You to Karen and Dan and Dave Congalton for bringing home the facts.
By: Anonymous on 5/7/08
The investor's (lenders to Hurst) have lost. Jay had no right to pay everything up front to Gearhart. It was surposed to be issued in progress payments. Hurst was irresponsible with my "hard earned" money. Gearhart is clearly avoid us and lying about the facts. I herad him lying on the Dave Congalton Show.
By: Anonymous on 5/7/08
Karen and Dan are Mohamad Ali..
By: Anonymous on 5/7/08
Kelly lost BIG TIME… I heard the show Kelly. What a liar you are. I hoped otherwise but it wasn't to be. I lost too.
By: Anonymous on 5/7/08
I think Kelly will be caught up with the FBI investigation. He might be logging onto to his "fatboy" (his e-mail handle for those who don't know it) from prison.
By: Anonymous on 5/7/08
Gearhart just made a fool of himself. He also tried to intimidate people. What a lying thugg.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
Gearhart is GUILTY AS HELL. I heard him on the radio. Now I know the TRUTH. What a lying SOB
By: Anonymous on 5/7/08
Well I guess this Law Suit doesn't exist according to KG
By: Anonymous on 5/7/08
Wait a sec….if I am Kelly, how am I on the radio right now??? WEIRD!!!
By: Anonymous on 5/7/08
I have a picture in my mind. Of all these lenders and developers sitting around the bar. They're all there Josh, Karen, Charlie, Jay, Rod, Allen, Kelly, Royce, Linda and a host of others some whose names have not been mentioned yet. They pass the hat, each take a straw. Each displays his with pride untill we get to Gearhart as he raises his tiny little straw. Cheers all around Kelly gets his ass kicked this week. Everyone else is safe for another week. I see a potential reality show out of this.
By: Anonymous on 5/7/08
Folks,
I have no dog in this fight, so I can recomend things objectively. Since this is a single project, not too many people involved. Get a prelim title on the policy see what is owed on it and you can foreclose. I don't how your interest is recorded if fractional or on teh broker's name, you can file a motion in court for "lis pendense" until things get sorted out. See if there are any plans or entitlements approved. You will loose portion of your investment, but not all. So get togather and act soon.
This seems to be a less complecated issue than EFI.
By: Anonymous on 5/7/08
I see Kelly is already blaming the city and everyone else. I see he is also calling all this info lies. Perhaps he'll cough up the money then and prove that this all lies.. Where is the money Kelly? Thats the bottom line. I don't want to hearany of your cry baby bs. Where is the money?
By: Anonymous on 5/7/08
Ok so your not Mr. Powell, just another angry man with nothing better to do with his time….
By: Anonymous on 5/7/08
to Get a life
I'll bet they have more important things to do. What would you do if all this garbage was falling in on you.
By: Anonymous on 5/7/08
to atowner
SARCASM atowner. More power to Mr. Powell its amazing more people have not done the same. You are however wrong I am not Mr. Powell and from what I see I don't think he is blogging at all. You sir have no idea who I am.
By: Anonymous on 5/7/08
last post was from me…
By: Anonymous on 5/7/08
Pretty sure Jay and Kelly both have more important things they are doing than posting blogs on this site. I might as well be reading the national Enquirer since none of these are solid facts…but hey, cheap entertainment! Now I just cant wait for a blog about Wolfboy to show up on here!
By: Anonymous on 5/7/08
Hey Kelly and Jay. Why don’t you sign these moronic comments with your real names. What are you afraid of?
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
to Linda
What you need is a copy of the closing statement. These type of loans fund the land 100% all the time. Get the closing statement. If you are an investor this document should have been provided to you.
By: Anonymous on 5/7/08
atowner,
You state:
"Everyone needs to get their facts straight"
I believe those were your exact words on Congalton's show last week, right Kelly?
Why are you here one hour before your radio appearance posting insults to those who have loaned you their money and attempting a weak defense of yourself under a false name?
That doesn't show much class or courage, does it?
You are fond of telling people to "get their facts straight" and accusing them of "publishing false information", but you take evasive action, run and hide like a little girl, when you are pressed for actual facts. Is that because the truth is not your friend, and will in fact expose you to civil and criminal prosecutorial action?
Good luck on the radio today.
By: Anonymous on 5/7/08
To Insider:
You are on the right track except for a couple of items. My understanding from talking to some investors is that the loan was for the construction of a commercial building. The property was supposed to have been purchased previously and construction loan proceeds were not to be used for the land purchase. Also the construction loan proceeds should not be used to pay property taxes (which haven’t been paid anyway) or to pay interest on the loan. Paying interest from construction loan proceeds is usually not allowed unless specifically agreed to in the Loan Agreements which the lawsuit says were apparently never executed and given to the Investors. Pretty sure not much if any insurance was paid on a piece of vacant land. So subtract at least $360,000 and $500,000 for a total of $860,000 from your calculations. Now we are back to about $1,800,000 or more. WHERE IS THE MONEY?????????????
By: Anonymous on 5/7/08
to insider:
funny how you "know so much about this case" but dont know who Mr Powell is…..you REALLY must be stupid if you are asking who mr powell is right under this article..good cover up-nice try
By: Anonymous on 5/7/08
to Mr. Rick
DITTO!
By: Anonymous on 5/7/08
to Get a life
Is that you Kelly, or you Jay, or you dewdog? Sure sounds like one of you.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
SLO Bear,
You state:
"the victim shares in the culpability"
"luck wasn't the reason I did not lose any money with EFI, Hurst, or 21st Century."
"I am telling the truth, and sometimes the truth isn't what we like to hear."
"It seems the Housing Bubble created more than a few bull market geniuses. It is now time to see the Emperor has no clothes"
"If you came to the conclusion I am a lackey, I'm not surprised you were swindled."
You also posted other 2nd grade level playground insults under other names.
You then state:
"Hey folks – I'm on your side!"
Your bloated ego and exagerated sense of self importance evidently compels you to come here and parade your ignorance of the root cause of the issue being addressed here: Criminal fraud.
The housing bubble did not cause Karen Guth to commit intentional criminal fraud against both borrowers and lenders.
The housing bubble did not cause Hurst to advance 100% against projects 0% complete.
The depths of your ignorance of these specific cases which you are here commenting on is astounding, yet you are evidently unable to resist any opportunity to gloat, brag, boast, scold, and hold yourself up as The Smartest Guy In The Room.
Since "the room" you normally occupy, your blog, is an empty echo chamber, your over-arching need to be heard drives you here.
Aren't there already many other housing bubble blogs you can post to where you can wrap yourself with the warm blanket of Utter Superiority?
By: Anonymous on 5/7/08
to atowner
I don't see any blogs from a Mr. Powell. Who is this Powell you speak of.
By: Anonymous on 5/7/08
to Get a Life
If the developer and lender are so in touch with how difficult it is to get permits and how long it takes to get a project off the ground why in the H would they be closing big dollar loans on properties they can not break ground on. If they are closing loans on projects they don't have permits on and they know how difficult it is and how likely it is they may not be able to break ground for some time to come then they would have a separate line item in the budget to pay the interest due for the next year or so while the whole thing sits. Right?
By: Anonymous on 5/7/08
Does Mr. Powell's employer know how much time he is spending on this blog???? Looks like he is getting paid to vent his anger
By: Anonymous on 5/7/08
investors haven't lost their money they are just not receiving interest payments. I am sure everyone is working hard to get this back on track
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
You know what, if the cities werent so HARD to deal with, the projects would already be complete. All of you that have NO compassion must have never developed, or worked with a developer to see the hardships they go through to get permits, plans approved, etc etc…
Those things are expensive…fees add up and things get backed up then more fees add up. delays in the project means more fees
If any of you have any knowledge about this, you would know that. A first grader could figure that out!
Thousands of dollars were being waisted monthly out of pocket because people are jealous of those that are successful, and try to ruin projects that will improve the community and neighborhoods
Why dont you all pull your heads out before you try to bring down people that are trying to improve the community and make it a better place….Spend your money on a good cause, try to cure cancer, donate to a charity, not waste your money on ruining peoples life (and for those who say their lives are ruined because their whole nest egg was invested…maybe next time before you invest your WHOLE retirement in a high risk investment, think it through…dont be greedy!)
By: Anonymous on 5/7/08
If you want to hear true hard facts listen tomorrow night when Mr. Powell is on the radio. Call in, he would love to give correct information to all of those you think Mr. Gearhart is their hero. How sad it is that so many people are losing everything because of crooks like Gearhard and Miller!
By: Anonymous on 5/7/08
two hours to go. Will he show?
By: Anonymous on 5/7/08
I think this article is correct with it's information. I just wonder how the investors will recover? Does anyone know how?
By: Anonymous on 5/7/08
to atowner
Loans were made. Funds were turned over to the developer. The projects are not complete or have allmost no construction. The developer has stopped making payments. And dogdoo or I mean dewdog and the Slowwww Bear are defending the developer. Whats inacurate please clarify.
By: Anonymous on 5/7/08
funny how when the 12%
interest is coming in no one questions where that money comes from or what project…as soon as the money stops is when all this arises. I too have money invested with a project, and hope to get it back, but I also have made enough for me to hold tight for a few months. All involved in the situation are motivated to pull together and get back on their feet. The downturn in the economy is making this situation hard. Spending money on lawyers is just wasting away our money. Its gotta be very tolling on everyone involved, especially when people throw around inaccurate accusations. Everyone needs to get their facts straight, especially people writing in on this website. Rumors are flying and if this website ever wants to be known for its credibility, they should get correct facts before they publish false information.
By: Anonymous on 5/7/08
to Carol Anne
Assuming Mr. Gearhart was making the interest payments which he probably was he would have spent $360,000 on those payments as of April 2008. When he closed the loan he paid points on the loan which were I guess as much as 4 points thats $80,000. At the time of the closing I'm sure he had various escrow costs lets say 1 point for title insurance and other misc. thats $20,000. I'm sure on a $2,000,000 project the land was at least $500,000. That was just a guess it could have been much more. He must have plans that required Architects, engineers, soils studies. Lets say $100,000. Now were up to $1,060,000. He still had to have contruction insurance as well as property taxes. So he probably spent $1.1 to $ 1.2 million if he paid his bills. Now that you see how quickly money can be used up imagine how quickly he could have dispersed the remaining funds to other failing projects. He's just circling the drain.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
to Mr. Slowwww Bear
You just can't let go. You must be some retired government worker sucking the teet of society. A lonely old fool who thinks if people don't travel the exact path your on thier wrong and deserve to be punished. You pobably spent your life never taking a risk. Well this country was built on people taking risks. If they didn't we probably wouldn't have any housing. I'll bet you have roof over your head. As to your blog its crap just like your opinions. If you've read one you've read them all. How many enties have you had on that piece of crap in the past few months anyway. The Bear sucks. Youre position is clear they took a risk therefore they deserve to get screwed. I have noted I'm not the only one who thinks you an egotistical idiot. I'm sure your opinions gain more support on your own blog so why don't you express yourself there.
By: Anonymous on 5/7/08
Hey folks – I'm on your side!
You all better get organized because one thing is for sure: ad hominem attacks aren't going o get your money back.
By: Anonymous on 5/7/08
Hey! Stop using this website to promote your own failing blog!
STFU and move on! Your ignorance and narcissism are bigger than your ego.
Let go of Karen's apron strings!
By: Anonymous on 5/7/08
Hot Dog is absolutely right. How many of you would be home alone with the curtains drawn crying into your (Pabst) beer without this site.
Probably the more hurt you are by the alleged misdoings, the harder it is to contribute to keeping the site rolling. The flip-side is that the more hurt you are by this, the more you need this site.
So pony up, if for no other reason than the entertainment value of this theater of the absurd.
By: Anonymous on 5/7/08
I'm asking the question Robin? I'm sure the Powell contacted all the people on the loan and other loans, my thought was that their names would be included in the lawsuit.
By: Anonymous on 5/7/08
Hey, this site has been a godsend for investors. We have many millions invested. How about kicking some down for U-SLO so they can keep up the good work? email tips and your request to donate at
tips@uncoveredslo.com.
By: Anonymous on 5/7/08
If you want to bond with other victims send an e: rippedoffinvestor@yahoo.com.
The chatter about the foolishness of investors is counterproductive and probably a plant from the crooks. Mismanagement and fraud are the key words here, not risky loans or bad market. Maybe if we ignore those fools they will go back under their rocks. Let's cool it on the whining and bond together to see what can be done to recover the money.
Gearhead is supposed to be on AM 920 at 5 pm today (Wed, 5/7), call in with your concerns.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
To Hurst investor , Powell got a buddy to invest on this deal thats why hes upset. As far as I know he has no funds invested .
By: Anonymous on 5/7/08
To Hurst Investor…
Don't be so certain that none of the other investors want to join this suit unless you speak to all of them.
By: Anonymous on 5/7/08
Powell and Rios are the only investors on this lawsuit? There are most likely many invstors on these same loans and none of the other investors want to join this lawsuit? What does that tell you about this lawsuit? I bet most these negative posts are from Powell.
By: Anonymous on 5/7/08
The interest spin is overwhelming. The money probably funded other deals down stream? Im sure the money was not pocketed?
By: Anonymous on 5/7/08
I would like to know about the missing $23 million from Vista del Hombre (English translation: Man's Vision – how narcissistic is that?).
By: Anonymous on 5/7/08
Kelly will yell thats it's all lies and all somebody elses fault. I'll believe that it's lies when he produces the 2 million.
By: Anonymous on 5/7/08
I wonder what Kelly did with the 2 million? It's hard to believe that he just pocketed the money. He must have put it into a different development that didn't work out.
By: Anonymous on 5/7/08
SLO Bear Heavily Invested,
Thank you for illustrating with your public melt down and elementary school postings just exactly how seriously you deserve to be taken.
By: Anonymous on 5/7/08
Insider-
Slow and steady wins the race – a lesson from kindergarten you have forgotten.
As for hard money loans, if you could have gotten 8% you would have taken it, but you had to pay a very subprime 12-14% – for a very good reason.
There is little schadenfreude on my blog, only reality, which is something we all can agree, the Tribune is lacking.
By: Anonymous on 5/7/08
Attack the Bear
By: Anonymous on 5/7/08
Thank you SLO Bear for trotting out the oldest of cliches to evade taking responsibility for exercising your own bloated ego, and for being so arrogant about making financial assumptions about people you know nothing about.
You should be grateful to have such a widely read public forum in which to satisfy your need to scold, gloat, brag, boast, and inflate your sense of self importance.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
I am heavily invested with the California Lottery, I have dumped a lot of money in and have seen no return, any other investors involved in this investment company please contact me at rippedoff@gmail.com so we can take action against this company for ripping us off.
By: Anonymous on 5/7/08
SLO Bear
You are apparently as your name implies a very SLOWWW bear. In fact most bears I know are offended you are using thier identity as your own. Your cunning wisdom is incorrect old furry one. I have no investment with any of these individuals. I have no loans with any of these lenders either. I have however built many homes over the years and successfully used many hard money loans. These types of financing when used responsibly can be a great asset to a small builder in the spec market and even to someone trying to build thier own home. Even a mid sized builder who is well organized can utilize a hard money loan well. When managed correctly these loans can provide investors with excelent income which is well deserved for helping produce a project that could not be finance in more traditional ways. However when these resources become the newest quickest way to seperate seniors from thier retirement by lenders and builders hooked on the cash flow crack, they can be quite convincing. As to your cutting edge blog you are a fraud with a better than thou attitude to anyone that doesn't have your superior intellect and judgement. Down with the Bear. He's SLOWWWW!
By: Anonymous on 5/7/08
Mr. Rick,
You are clearly in the anger stage of grief (and heavily invested in real estate). Once you get to acceptance, things will be much much clearer.
It seems the Housing Bubble created more than a few bull market geniuses. It is now time to see the Emperor has no clothes (Gearhart included).
By: Anonymous on 5/7/08
Thank you SLO Bear DewPoodle for clearly illustrating both the depths of your ignorance and the height of your schadenfreude.
While this website serves as your outlet to excercise your inability to contain your glee about real estate losses, others are here in an attempt to expose outright theft and fraud and to save both themselves and others from further victimization.
Clearly your echo chamber blog is not satisfying your need to scold and gloat, so your bloated ego compells you to come here where actual traffic exists.
By: Anonymous on 5/7/08
Insider – I have no connection to Gearhart and if he has walked away with/spent your money, he should go to jail. For along time. Period.
I have had a blog for over a year (click on my name) dedicated to exposing the fraud and truth in the real estate industry on the Central Coast. Dan Blackburn can testify to this.
If you came to the conclusion I am a lackey, I'm not surprised you were swindled.
I know some folks may not like my comments, but I am telling the truth, and sometimes the truth isn't what we like to hear.
I wish you the best.
By: Anonymous on 5/7/08
As a small time builder (tried to build one building in Atascadero with inheritance money) key word tried, I know that most of the cost of building comes upfront before breaking ground, obtaining permits, having plans drawn, engeneering, plan check, redrawing plans, waiting, i was unable to complete my project and I wasn't even paying interest on loans for those 18 months while I waited on red tape. So just because there is no building on site doesn't mean work has not been done. I'm not taking sides, but I know what goes into building and with the market the way it is some times you have to wait things out. Glad I didn't put all of my eggs in one basket, only wasted half of my inheritance on my failed investment project.
Like or Dislike:
0 
0
By: Anonymous on 5/7/08
Sure sounds like SLO Bear and dewdog are a couple of Gearhart lackeys. Every comment seems to minimize the obvious fraud and deception of the perps. and put the onus on the investors. You guys have zero credibility on this site. You sleep with the perps. Down with SLO Bear and dewdog.
By: Anonymous on 5/7/08
I don't want investors to think I'm not sympathetic – I am. I know how it feels to be ripped off and I hope that every single fraudster on the Coast gets what they deserve.
But … luck wasn't the reason I did not lose any money with EFI, Hurst, or 21st Century.
By: Anonymous on 5/7/08
Thank you SLO Bear. There are obviously high risks with these investments. I have advised clients on some of these ventures and have advised to not get involved with almost all of them. There is usually no equity at all in the project. The ones that were invested in appearerd to be not what they were supposed to be as we tracked the project where the money was supposed to go. After the year of investment I advised my client to withdraw his funds from the project (not a Gearhart project). That investor recouped his money and discovered the risk of these investments. What is happening is not right and it's my best hope that the investors will be able to recoup most of their investments.
By: Anonymous on 5/7/08
I'll save Mr. Dog the effort.
Despite the likely criminal activities, sometimes the victim shares in the culpability. Let me explain.
Let's say you take all of your retirement funds and buy a rare antique sports car as your single investment. As you are driving the car home, you stop by Starbucks for a latte and leave the keys in the car running. You return to find your entire retirement fund has vanished.
No one doubts you have been victimized, but the loss could have been prevented. There were a lot of people across the County who left the car running.
I sincerely hope every one of these criminals gets what they deserve, but remember, if they were good credit risks, they would have just gone to a bank and not paid the subprime rates.
By: Anonymous on 5/7/08
Can't wait for dewpoodle to show up with his "you knew the risk" drooling.
By: Anonymous on 5/7/08
Outright theft.
Investors fund a loan for a project.
Hurst advances entire loan before a shovel is turned.
Project is never built.
Money is gone.
Outright theft.
Like or Dislike:
0 
0