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

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

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

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

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

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

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

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

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

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

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

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

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.

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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!

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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.

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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.

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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.

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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.

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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.

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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.

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