Judge ices EFI fund property sale proceeds
August 6, 2008 2:38 pm
By KAREN VELIE and DANIEL BLACKBURN
A federal judge presiding over Estate Financial Inc. (EFI) bankruptcy hearings declined Tuesday to authorize disbursement of funds from a pending sale of investment property from the troubled lender’s portfolio.
U.S. District Court Judge Robin Riblet instead ordered proceeds from the sale placed in a segregated account to allow trustees time to weed through a mountain of documents.
The Paso Robles lender’s corporation and investment fund have been placed in voluntary and involuntary bankruptcies.
A group of investors had asked Riblet to disburse the proceeds of the Base View Court Estates project in San Marcos, currently in escrow. Thomas Jeremiassen, the trustee of Estate Financial Inc. (EFI), however, asked the judge to delay distributing the funds.
Riblet, on vacation in Canada and speaking to attorneys by telephone, agreed with Jeremiassen, who was appointed to manage the trust only nine days earlier. At the same time, Riblet appointed Bradley Sharp to watch over the Estate Financial Mortgage Fund.
“It is like an orderly liquidation,” said Steve Gardility of Encinitas, a builder who did significant business with Guth. “It is a better chance to get money back than a Chapter 7. She (Judge Riblet) had the records and knew the subject; she is sharp.”
Utilizing a number of hard money strategies, EFI principals Karen Guth and Joshua Yaguda enticed investors with the promise of high interest on their investments, which funded short term construction loans. Last fall, the company stopped making interest payments, and Guth and Yaguda blamed a downturn in the real estate market for catapulting EFI into a temporary financial funk.
More than 3,000 investors placed more than $300 million into EFI construction projects. Guth and Yaguda received a one- to two-percent monthly fee for fund management, along with mortgage servicing fees on the fractionalized loans. Sources claim the pair was using funds slated to build projects to fund other businesses they own.
While at the helm of EFI, Guth and Yaguda accumulated a wealth of holdings, including gas stations in Templeton and Morro Bay; a winery and Pasolivio Olive Ranch in Paso Robles; and numerous condominiums, homes, and commercial properties scattered throughout the county. They also own a stable of expensive automobiles.
Even during the bankruptcy proceedings, a bevy of regulatory agencies and criminal investigators continue to probe allegations that Guth and Yaguda misled investors and comingled funds in a Ponzi-style scheme.
Within the next few days, U.S. Trustee Marjorie Erickson is expected to announce approval of a creditor committee comprised of creditors and investors to serve as an advisory body to the trustees and the court.
“The committee will meet with the trustees, look at properties and their stages, and suggest which properties should be finished, and which to sell out,” Gardility said.
Gardility, along with Dennis Klassen, Arroyo Grande; Jordana Cooper, Calabasas; Jim Scott, Rancho Palos Verdes; and Andrew Berwick, Santa Barbara, have applied to the court for membership on the committee.
By: Anonymous on 9/2/08
Great.
How does Ron Cooper fit inyo this. His name keeps coming up but he is not an investor. Why should I care what this guy thinks and does?
By: Anonymous on 8/27/08
Roxanne says:
I checked and it's true. Uncoveredslo.com's blog is highly searchable. Due to this, I'd like to post the below.
If you are searching for information about Karen Guth, Joshua Yaguda, and Paso Olivo, you should read the statements below.
Karen Guth and Joshua Yaguda have allegations against them supported by the Department of Real Estate and Dept of Corporations for defrauding investors in their other company Estate Financial, a hard money lender.
The ongoing allegations which are being investigated by the FBI, DOC, DRE, DA include fraud, dishonest dealing, co-mingling funds, failure to secure loans, negligence, and more. Thoughts are Guth and Yaguda swindled over 2500 investors, many elderly, from their savings by misrepresenting their company. Guth and Yaguda misappropriate many funds in the 300 million plus investor-built portfolio and then walked away claiming bankruptcy. Yes, they flew away in their 'golden parachutes' with much money unaccounted for. Paso Olivo employees were paid by with Estate Financial checks. Karen and Joshua have willfully disregarded or violated state real estate law and investors have suffered immense losses due to their activity. Trustees are currently sorting out the mess. However, Karen and Joshua are free to roam. That is, until they are tried criminally in court. Most concur they will serve significant prison time, not for a mistake but for purposely breaking the law for their own personal financial gain. What a wonderful way to make money to do what Karen and Joshua love best – olives. Please learn more before you support their olive ranch! Please read the below link:
http://www.uncoveredslo.com/?id=139&showEntry...
Key words: Paso Olivo Oil, Karen Guth, Willow Creek Olive Ranch Tasting Room, Paso Robles California, California Olive Oil News, California Olive Oil Council, LA County Fair Olive Oil Winners, Joeli Joshua Yaguda, 140-acre ranch, Olives101.com The Olive Oil Source, COOC Olive Oil, Nancy Ash, Charles Crohare, Paso Olivo Olive Oil, extra virgin olive oil, award-winning estate olive oil, Guth / Yaguda Family, criminals
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By: Anonymous on 8/18/08
New article on Estate Financial:
http://www.uncoveredslo.com/?id=163&showEntry...
By: Anonymous on 8/14/08
Anybody know the details to the below case?
By: Anonymous on 8/14/08
County of SLO Superior Court has another Karen Guth LLC trial
Carol Deane LLC CV040150 Case Management Conference
By: Anonymous on 8/14/08
County of SLO Superior Court has another Karen Guth LLC trial
Carol Deane LLC CV040150 Case Management Conference
By: Anonymous on 8/14/08
State of California CSLB has now revoked the Contractors License of local Builder RW Hertel & Sons, Inc. who is now the subject of several major State and Federal Investigations
By: Anonymous on 8/14/08
You were right says:
UNCOVSLO, I read the Trib this morning and your site first informed us via the blogs of
If it was for the local media, most would be still in the dark about EFI. We would have learned about it when everything is cleared out. Thank you UncoveredSLO
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By: Anonymous on 8/18/08
New article on Estate Financial:
http://www.uncoveredslo.com/?id=163&showEntry...
By: Anonymous on 8/14/08
Anybody know the details to the below case?
By: Anonymous on 8/14/08
County of SLO Superior Court has another Karen Guth LLC trial
Carol Deane LLC CV040150 Case Management Conference
By: Anonymous on 8/14/08
County of SLO Superior Court has another Karen Guth LLC trial
Carol Deane LLC CV040150 Case Management Conference
By: Anonymous on 8/14/08
State of California CSLB has now revoked the Contractors License of local Builder RW Hertel & Sons, Inc. who is now the subject of several major State and Federal Investigations
By: Anonymous on 8/14/08
You were right says:
UNCOVSLO, I read the Trib this morning and your site first informed us via the blogs of
If it was for the local media, most would be still in the dark about EFI. We would have learned about it when everything is cleared out. Thank you UncoveredSLO
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By: Anonymous on 8/13/08
BIG money says:
anonymous
So the defaulters ate at the trough, mismanaged(to be polite) the money and now you think the lenders should give them more?
You must bitter, so your ignorance is over looked.
By: Anonymous on 8/13/08
UNCOVSLO, I read the Trib this morning and your site first informed us via the blogs of the demise of Atascadero Ventures, LLC aka Las Lomas thanks your ahead of the Tribune, I note Hertel's & Fowler's partner Richard D Willrodt was in fact arrested for Lewd acts on a small boy in LA. HOB loaned them $7 Million under loan 32936 to Willrodt ( Pervert) Fowler, Hertel and De Witte. The hammer is coming
By: Anonymous on 8/12/08
Talk about lack of ethics! Wasn't Tiffini Hughes (Karen's co-hort) given the 2004 Business Woman of the Year award? And nominated again in 2006? (see her website) I was told the Bakersfield property was finished. I googled it on maps and she hasn't even broken ground.
Don't you have to demonstrate business ethics and integrity to be given such an award?
What a bunch of con artists!
By: Anonymous on 8/12/08
My opinion is Karen and Joshua are trashy people. If Karen had true class this wouldn't have happened. She only gave the appearance of class by her clothes, car, ranch, olive company but it was all false! She herself isn't classy, she only had fun playing 'make-up' with other peoples money. That woman doesn't possess the class, ethics, business sense to run a legitimate business.
After prison, I'd move far, far away. This town doesn't want any Guths or Yagudas walking our streets.
By: Anonymous on 8/12/08
Let's clear this up! The 'defaulters' that DIDN'T partner with Karen NEVER got all the money they needed to finish their projects. They had to beg, sometimes for months, to get their money in hopes of finishing their projects. They lost subcontractors and help during this time but they couldn't hang on to them without enough money. EFI burned them! When the loan time was up, they still didn't have the money THEY PAID FOR by way of loan fees! So, of course, these builders are going to sue and put a lis pendens on their properties. Of course! Wouldn't you? Karen ripped them off!
Slimey Karen was then hoping to foreclose on thier properties so she could collect the equity in which she made sure there was plenty of prior to making a loan. And in many cases she got away with these foreclosures since it would cost the borrower too much money in litigating fees. So the borrower puts their tail between their legs, mark a lesson learned, gets foreclosed upon and Karen wins the loot. The investors only get their 10-12% and Karen then gets the rest!
Karen is a defaulter, too. When she partnered with other builders in those LLCs and then 'failed' (see Three Bells article) she 'noted' her failure while burning up the investor's money in management fees and then went belly up (one fat belly loaded with money in her pocket). In the case of D'Amico (Three Bells partner) he has a fat belly too! Look up the continued filings on Three Bells. Was it ever resolved? No. It appears obvious the suit was all a show to make the foreclosure and acqusations against each other seem ligitamate when in all reality it was a scandel and investor robbery.
At least this is the way I see it.
So when you say 'defaulter' there are two types. The Rons who didn't get their money and the Karen partners who did!
She ran a good scam!
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By: Anonymous on 8/12/08
anonymous
So the defaulters ate at the trough, mismanaged(to be polite) the money and now you think the lenders should give them more?
By: Anonymous on 8/12/08
Defaulters are not creditors
Borrowers had a contract with lender(investors included) and the contract was not performed according to the agreement. Lender(s) are in default of the contract and became liable to borrowers.
Investors are equity holders in the company therefore liable toward creditors claims. Consult with a BC attorney for further enlightment.
By: Anonymous on 8/12/08
Why not let them be on the defaulters committee
By: Anonymous on 8/12/08
Didn't they sue Estate for not performing and get a default judgement against Estate? That would make them a creditor.
By: Anonymous on 8/12/08
Can somebody explain how people who borrowed money can claim to be creditors? I don't get how Cooper or any other borrower has standing in the bankruptcy court.
By: Anonymous on 8/12/08
Why would I want Cooper and Gardality on a creditor's committee when they are two of the guys who owe me money. They and the other defaulters are the problem!
By: Anonymous on 8/11/08
Weren't you the guy who used to sell tractors?
By: Anonymous on 8/11/08
I can't believe the naiveness here. None of you can possibly be 'serious' investors in EFI. I first met Karen Guth around 1990; it took about 30 seconds for me to relegate her to 'slime' status. How could anyone give her a nickel to invest after meeting her?
By: Anonymous on 8/11/08
Hey Joe did you get a license yet?
By: Anonymous on 8/10/08
This is just a nasty, angry forum for people to rip on each other and tell you what they're going to do to somebody, whether they can prove anything or not. It's a childish thing, calling your neighbors names. The real problem with this site is that people on here just can't seem to act like adults. There's really nothing to it. This blog is worthless and the people who want to believe it is are just fooling themselves or worse. If the people who read this thing really care about getting accurate information, they'll look elsewhere. That goes for "Insider" and all the "anonymouses." Get a grip and then get a job.
By: Anonymous on 8/10/08
Idle minds are the devils worshop. Many of the posts on this thread support that thought.
As Rodney King said on the way to one of his many trips to the slammer, "can't we all just get along?"
By: Anonymous on 8/10/08
EXTRA EXTRA
Congratulation, but cares? This is not a political campaign here. we have real issues!! Get it? Can he get us a few hundred MIl? If not leave us alone!!
By: Anonymous on 8/10/08
Joe you seem a little angry. Did someone step on your money purse?
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By: Anonymous on 8/10/08
Joe Dirt
First of all, who cares about Gerhart.
Who cares about Phoenix Recovery,
Who cares about you
and who cares about people who lost money?
Some I do, but lets get something straight
You can have a business for anything without a license. Just hire the right people.
UncoverdSLO has the right and the fiduciary obligation to take money where it can. You haven't send them any, have You?
You cheap bastard!! You want something for nothing? Life just ain't so. When you do something, you expect to get paid. Do you know where that money comes from? Likely not and you still take it. How many times you check it out the sourec before you pick up your paychaeck. Do you care to know where that dividend check comes from? Absolutely not!! Do you care where that interest paymenmt on your CD comes from I don't think so.
Do you realize that someone had to pay a high interest on their loan to the bank before the bank is able to issue a check? You don't give a d..n at all as long as you get it.
So just get off your high padestal and supposed moral ground and get back to the subject.
If you can't than get out of here you jack a…ss
By: Anonymous on 8/10/08
to Joe Dirt
Gee Joe you seem to be real good at research. Yeah everything except the ability to determine the legality of contracting without a license.You can ruin Kelleys chance at City Council but you can't make it legal to contract without a license.
By: Anonymous on 8/10/08
To insider,baker, hey baker, anonymous, or should we say Bob Kelley. You are the perfect candidate!
1. gearharts best friend
2. revoked licensed contractor
3. three time loser
4. you will fit right in
This is joe dirt signing off, but will return some with more boulders such as Bob Kelley's disgraceful departure from the C.H.P.
By: Anonymous on 8/10/08
Pam Heatherington is running for Atascadero City Council.
Congradulations Atascadero. A true, honest, capable candidate has stepped up.
By: Anonymous on 8/10/08
to the editors
Here's what I'm talking about, see the quote below and the possible impression you may have left readers with. You might want to run the old standard that although they may be advertising on your sight that it should never be seen as an endorsement on your part. You know the old infomercial blah blah.
to insider
"If they are a construction management team, I do not think they need a license.
Also, are Dan and Karen supposed to investigate any one that advertises?"
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By: Anonymous on 8/10/08
I am not Bob Kelley. Bob does not like some of the questions I've asked. You seem out to get him as some form of revenge. The Pheonix group is taking money from what I understand to manage the completion of construction on what looks like thirteen projects to date. I assume they are taking that money under contract. In other words they are not on the Owners payroll recieving a hourly fee with detuctions. The point is this relationship in at direct odds with the law. The law is meant to first of all protect consumers and this relationship is strickly to protect the investors/owners of the properties and financialy enrich the Pheonix Group. After they have gotten the people together and forclosed on the property why don't they just turn it over to the investors. Why because thats not where they see the big bucks. Trust me when I say there are many qualified licensed companys and individuals out their that would be more than happy to construction manage those projects. They now have thirteen when does this arangement get the scrutiny it deserves when they have one hundred and thirteen. I an LLC has these unlicesened individuals complete these projects who does the consumer have recourse against for the problems every new home has. No one is the answer since an LLC by definition has no liability and there is no licensed contractor. If Pheonix wants to participate in the completion of construction on these residences then Pheonix needs to be a licensed contractor. There is a process where they have a Responsible Managing Employee that has or gets a California Contractors License from the state. With that come rules about the employees level of supervision over the construction activities. Apparently the individual currently acting in this possition does not qualify. If he does they should get the license and all properties they work on should have them listed as contractor on the permit. These projects probably got where they are from people taking short cuts in life. This is just a matter of who gets their money not how much money it costs. A general contractor could step in and write a managment contract and do the same service for the same price. The only difference is it would be legal and most likely the issues regarding liability would be deliniated and discussed upfront open and honestly between all parties.
By: Anonymous on 8/10/08
What happened tothe subject on this site? Aren't we following EFI and their (X) principals?
Did we just relagated ourselves to such a low level that the only thing I read in here now is mud slinging.
Get back to the subject!!!
By: Anonymous on 8/10/08
You all need to start revealing the facts of what is happenening. I found your site due to neglect by a builder from Ventura, RW Hertel et al. He has defaulted and beedn fined on many loans and projects. His tow Partners Gene Haas in Federal Prison Lompoc, CA and recently his close financial parnter Richard D Willrodt who is partnered with Several deals in Atascadero CA, with Heritage Oaks Bank loaning the two 7 Million on a fraud case now Mr. Willrodt was arrested for molesting a 15 year old boy in Los Angeles and he has now implicated Ron Hertel Bob Fowler and Bill Zech you all better be aware of what evil and horroble crimes are being done the Bee and Times and Ventura Star have reported where are you ?
By: Anonymous on 8/10/08
to truthseeker
I've got the right Bob Kelley ! or should i say anonymous,baker, or the insider. He is nothing but a bitter loser who can't except the fact nobody wants him as a city counselman.
By: Anonymous on 8/10/08
To Joe Dirt- Please make sure you have the correct Bob Kelley – there are many in town and a couple that are or were contractors. . . . We want facts, but should be responsible. . . .Thanks
By: Anonymous on 8/10/08
To Joe Dirt – Interesting post – I suggest you copy and paste on the "Brennler and Luna won't run again" article – we will need all the facts we can get regarding all of the council candidates. Thank you.
By: Anonymous on 8/10/08
Dan & Karen,
Are you going to be up all night deleting posts?
Crawled in a den of rattlesnakes did you with your new advertiser.
By: Anonymous on 8/9/08
Keep drinking the kool-aid.
By: Anonymous on 8/9/08
Get back on the point! To try to make this about advertisers takes mondo gall!
EFI. Get it?
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By: Anonymous on 8/9/08
Phoenix Group says "We help victims of investor fraud"
Did I miss it or was there a trial with guilty verdicts for fraud?
Who was convicted?
Aren't we innocent until proven guilty?
By: Anonymous on 8/9/08
to anonymous,baker,say baker,insider,and editors say or should i just say Bob Kelley! Thats right Bob Kelley or should we say candidate Kelley. Have you ever heard the saying " if you live in a glass house you should'nt throw stones" well i'm throwing boulders, here goes
1. in 1995 you were convicted on eight counts of business and professions code violations and had your contractors license revoked. License # 495532
count one : 7109a departed fron trade standards
count two : 7109b departed from plans or specifications
count three : 7113 exceeded contract amount
count four 7115: failed to comply with contractors license law
count five: 7083 failed to report license changes
count six: 7097 other license was suspended
count seven: 7098 other license was revoked
count eight: 7121.5 qualifier prohibited against association.
I guess you just might qualify as an expert in construction law since you have been convicted of violating almost all of them.
Second, you run a realty company out of your home which is not zoned light commercial, however i don't think the neighbors really mind since you have no business!
Third you have bragged about flying in Gearhart's or should we say the investors jet and how you and he were best friends. He was your biggest supporter in your failed campaign ( my bad, both failed campaigns) and you rode his coat tails right to the cash register of Jay Miller.
this is joe dirt signing off with the pledge to throw more boulders in the near future, right Bob !
By: Anonymous on 8/9/08
Can't Pheonix just HIRE a licensed contractor? If that's the case, why everyone is fighting? They aren't claiming to be a one stop shopping from LLCs to finishing a construction project all by themselves, are they?
By: Anonymous on 8/9/08
Now, kids, You all fighting over nothing. Aren't you way off the subject?
Who gives a rat a..s bout Phoenix? Do't hire them if you don't like them.
Blaming UncoverdSLO for taking their sponsorship is really none of your are to go to. Get a life!!!
By: Anonymous on 8/9/08
Any permit for work over $500 requires a licensed contractor. Any permit requiring work in three or more trades requires a licensed general contractor. The only exception is for an Owner Builder which requires ocupancy by the owner for a minimum of 12 months following final. You tell me how a LLC of multiple investors is within the law. Basically it's not only the guy managing the construction who's could be breaking the law it's his clients. Since they are signing a permit that has conditions they no way intend on following. Then when they sell the property they violate the law again for what the consqences are I'm not sure. What about the unsuspecting consumers who purchase these properties who do they call. Well we've had the DOC, the DRE, move over here comes the CSLB.
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By: Anonymous on 8/9/08
to Dan Blackburn
Whether these individuals who are working on properties without the benefit of a contractors license have become your sponsors does not in my view require you to review their legal status and that of the legal status of their operation. It does appear in your comments that you have taken a possition that they appear legitimate to you and that might encourage people to engage them for services which some have challenged their right to provide. It would seem it would be wiser to have taken a more conservative stance on this issue and not to make any statements and or recomend that if anyone has any concerns regarding their right to provide this so called construction management service to check with the state regarding what requires a contractors license and what doesn't before making any decisions.
By: Anonymous on 8/9/08
Editors: You wrote a "Commentary" on June 4, 2008 about the importance of confidentiality on your site. Now you write that "We know this person's identity and he knows we know." So does that mean you choose to threaten outing those who choose to write confidentially if they challenge you? Do you now only offer confidentiality to those whom you agree with? If you know the identity of the writer, why don't you simply get in touch with them to discuss the issues rather than threatening them? As you know, you have received many posts challenging the qualifications of Phoenix from many different writers, why do you misrepresent that they only came from one source? Does "Free Speech" only extend to those whom agree with your point of view? You have called into question the integrity of may different individuals and entities on your blog, why do you get so defensive when valid questions are posed to you?
P.S. The writer indicated neither reported owner of Phoenix has any type of construction license. (You confirmed this "baseless" allegation.)The poster indicated Phoenix has existed for less than a year. (You additionally confirmed this fact as well.)
The point is this: Many people have lost tremendous amounts of money. Now, others are moving in to capitalize on their victimization and who is watching out that these same people don't get burned again by fly by night entities? Several writers wrote in challenging you to investigate Phoenix. You chose not to and instead took their advertising after they wrote in on EFI related stories seeking to solicit customers from the base of former EFI investors. Don't you think you have some duty to ask some basic questions like: What is you background in actual construction in this State? What licenses if any have you ever held such as to qualify you as being a "Construction Manager." What projects have you managed, if any? What recognized contracting firms have you worked with? What public officials such as building departments will verify your qualifications? Mr. Berry confirms he has no construction license, nor does he indicate he has ever held any type of construction related license. What qualifies him, or anyone, to hold themselves out to the unsuspecting public as a "Construction Manager"?
P.S. The State Bar of California recognizes certain areas of specialization including Family Law, Criminal, etc. I don't believe "real estate" is a certified specialty. This information is publically available on the Bar's website.
This is a terrible time as hundreds of people have lost tons of money. Isn't there some duty to challenge those who seek to "help" them so they don't get swindled again? Perhaps a truly independent media source shouldn't take any paid advertising so this question never arises?
By: Anonymous on 8/9/08
to to insider
The law is the law you don't pick and choose which ones you follow. Either they are within the law or not. My opinion is they are not. I am not an attorney however this law is very clearly stated in the business and professions code and it appears to be crystal clear to me. I suggest you have your attorney review it. Can a contractor act as an attorney? No. Can an attorney act as a contractor? No. Investigate this properly instead of looking for the answer you want and I am sure you will see the light. I am not a licensed contractor but if I was I would take this straight to the California Contractors Board for an Opinion. Perhaps they could check my contacts or hemroids next time their in the area. I'm suprised they aren't taking care or the sales too. I'll bet if they tried to do that without a brokers license the local realtors would give them a real once over.
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By: Anonymous on 8/9/08
TO INSIDER SAYS: Interesting, a little while ago it was Cooper who got us in this mess. Now it is local contractors. Make up your mind. Personally I know who it was – Karen and Joshua.
By: Anonymous on 8/9/08
There is a lot more to recovering investment funds than the construction. Yes, someone could hire an attorney to get the property back, a foreclosure company to handle the foreclosure, than if needed a contractor. Though many of the properties, those that were never started, may just be sold.
And while there may be many local contractors in need of funds, many of them are the reason we are in the predicament we are.
If they are a construction management team, I do not think they need a license.
Also, are Dan and Karen supposed to investigate any one that advertises?
By: Anonymous on 8/9/08
to UncoveredSLO
I think there is some validity to questioning the operation of the Phoenix Recovery Group as described. The state of California requires any work over $500 to be done by a licensed contractor. The only exception is for an Owner Builder and in order to be an Owner Builder you need to sign an affidavit at the building department stating so. If you are one you can only work on your own home with your own hands or with licensed contractors or with your own employees that are subject to witholding and all the trimmings. In addition if you choose this path you are required to occupy the property you are developing for a minimum of 12 months after a final inspection. This is to allow people to work on their own homes or build their own homes. This is obviously not what is going on here. Number one although these investors are owners none of them is living in or intends to live in these structures. This appears on the face to be a subversion of the law and the attorney should be well aware of this. If this was acceptable then there would be no need for a General contractor license ever. Just get an owner to sign the permit. This has been the case in the past and the reason the law is written as it is. I believe if you were to investigate this more than to just ask the people providing this service whether they think its OK say at the contractors state license board you would get a much different view of the law. In a time where there are many well qualified General Contractors out there barely able to feed their familys and keep their own homes from going back to the bank it does not seem right to provide back up to someone posibly taking advantage of difficult times when all they need to do is get a contractors license if they quallify or hire someone who has one. I hope you will look a little deeper into this because I think your reader has a legitimate beef and should take this to the State board as a complaint if this practice continues.
By: Anonymous on 8/9/08
FROM THE EDITORS
We have never identified writers who post commentary in these threads if they have chosen to write anonymously, or under a pseudonym. But several comments posted this morning – from “Compromised?”, “Baker?”, and “Hey Baker” – require some open discussion. These allegations contain unfounded charges against a new advertiser on this site, Phoenix Recovery Group LLC of Paso Robles, as well as allegations regarding our professional ethics. These comments were posted by a frequent contributor to this thread, one who always posts anonymously. We know this person’s identity, and he knows that we know. He has made these same baseless allegations in other posts, and has repeated them verbally to UncoveredSLO.com.
The facts these: Peter Josserand XIII and Ron Berry started the Phoenix Recovery Group, LLC, in September, 2007. Josserand is a duly licensed California real estate attorney, has been since 1990, and is in good standing with the California Bar Association. Berry is a construction manager. We have no evidence of problems or complaints about either.
Berry said today, “We are not remodeling or altering properties. We get groups of investor/lenders to form limited liability corporations (LLCs). We have a foreclosure company, and we do foreclosures. The investor/lenders become the property owners. We consult with the owners, inspect the properties, and help the owners deal with prime contractors. We are a construction management company, and we do not have to be licensed for that.”
Our readers at UncoveredSLO.com know that we write under our own names. Our advertisers place their messages openly, and avail themselves to the public. Critics who use this site to levy unsubstantiated allegations of wrongdoing or ethical shortcomings against others should display at least the same backbone, and properly identify themselves, at least to the editors.
It is, we might add, a matter of some pride for UncoveredSLO.com that we now have been roundly criticized by anonymous posters for (1) existing; (2) having no advertising; (3) asking for contributions; (4) accepting advertising; and (5) accepting specific advertisers.
Whatchagonnado?
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By: Anonymous on 8/9/08
One more thing….Karen waited to file BK on July 1, because their is a provision that allows her to claim management fees if she was in charge of the fund for six months of that year. She knew she was going to file BK on July 1 when she was at the meeting in SLO in June.
As if ripping us off and lying to us about projects and funding for years wasn't bad enough, she has to go out with a request for management fees for 2008.
By: Anonymous on 8/9/08
Karen felt confident that her handpicked managers would stay in place. In was only after attorneys and investors went before the BK judge and expressed their concerns that the judge determined that they were "tainted" by their relationship with Karen and discharged them and then the US trustee appointed the trustees. If this had not occurred, the two that Karen chose could have been approved by the court and appointed as trustees. That was Karen's plan, but it backfired when she got too confident and proposed herself as a paid consultant. Her arrogance caught up with on that one.
By: Anonymous on 8/9/08
It must be intentional, right? "their" — as in their reputation.
Handpicked trustees or managers — As I recall the people she wanted to step in were supposed to be managers — not trustees. After filing, the court appoints trustees, and the debtor's nominees ? — ha! Not likely. So this whole idea that K thought she could keep control of things after declaring BK is nonsense. That was the moment of surrender. There was nowhere else to go. The BK court takes charge and that's why people who seemed to want to perpetuate this idea of a long-term plan to continue business after the BK without strict oversight are, to be charitable, uninformed. Now, I didn't say you were ignorant.
Come back ?
By: Anonymous on 8/9/08
Phoenix has been in business for less than a year with no stated experience whatsoever. A lawyer and a transmission guy posing as experienced developers. But careful, nobody question anything if they happen to be a "sponsor."
By: Anonymous on 8/9/08
Baker:
Many posts have questioned Phoenix previously on this website. Neither principal has any construction license whatsoever. Check with the CSLB's website. Ron Berry had a transmission shop. I guess there won't be any questions now that they are a paid advertiser. "Uncovered" is now no different from that it questions.
By: Anonymous on 8/9/08
To compromised?
What on earth do you know about Pheonix that you aren't telling anyone? You appear speculative at most. Where is your evidence to back up such a harsh posting? If you have good reason to NOT believe they are legit it's best you share with the world before someone makes the mistake you are implying.
By: Anonymous on 8/9/08
Credibility? Ethics? Karen and Dan, I guess you are ok with accepting advertising from an entity whom you were asked to investigate given it has no construction license whatsoever, nor any experience in the construction industry other than one of its principals having been cited by the City of Atascadero for code problems with his business. So now you can continue to write articles whiping up a frenzy from senior investors of EFI and then direct them to one of your "sponsors". You have written articles as to "conspiracies" involving the County Recorder and her husband, yet what you have now chosen to do is a direct conflict of interest and is very sad. The fact you would accept advertising from a predator business set up to rip off the cusotmers a second time is truly appalling. How in the world do you justify this? Maybe you'll write another story smearing Clay Hall regarding conflict of interest while your actions are exactly the same!
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By: Anonymous on 8/9/08
No matter how much trouble thier in the Estate principles seem most concerned with "thier" fees and "thier" money this will ultimatly be thier undoing as even thier most ardent fans will not be able to muster continued empathy for thier situation let alone anyone interested in criminal prosecution.
By: Anonymous on 8/9/08
Ignorant? says:
I am just totally amazed how ignorant you are. You deserve to lose your investment and more. You just can't put two and two togather still. No wonder Karen was able to entice you and screw you and unfortunately everyone else.
Go back to your cave
By: Anonymous on 8/9/08
The reason that Karen filed chapter ll instead of 7 is because she had already handpicked her trustees, she had interviewed them even before the big Madonna meeting where she said she was in for the long haul. She thought she would still be running the show by directed her handpicked appointees. After appointing the two former trustees, she proceeded to have first Mel, and then she and Josh themselves write letters urging the investors to write to the BK judge to have them appointed as "consultants". She thought she could file bk, appoint her own people, have them hire her on to run the place, and have things continue on as they had in the past without anyone the wiser as to what had gone on. I think she actually thought she could prevent discovery of her misdeeds, sell off the property, collect her fees, and stay out of jail. Sounds desperate but that is what she is.
By: Anonymous on 8/9/08
Do you really think the debtor gets to nominate a trustee in this sort of case? And to whom do you think this trustee reports? To the debtor alone?
Cooper's is not a creditor, and has no standing in BK court. That's why he recently wrote about his "position" relative to the filing. He's a goner. Now the only thing the investors have to question is whether he bids for his own projects, that is, if he picks them up for way less than they're worth. Then you will see what dear Mr. Cooper is really all about. Friend?
But then, it's really one of those chicken or the egg stories. Cooper organizes the involuntary filing of EFI. And you say K was ready to file it in a few days. Really? Then how come she filed Chapter 11, on the fund and didn't go straight to liquidation? Why try to save anything? Shed some light, I'm waiting for "anonymous" to display brilliance.
Still waiting.
You're not really in a position to call anyone ignorant, are you?
Just because there are questions to be answered doesn't mean sympathies lie with anyone but the investors. Save your insults.
By: Anonymous on 8/9/08
What Cooper did was right! Karen was only days behind him with a BK plan for EFI. She had her trustees already picked out with titles of CEO and Fund Manager. Both qualified trustees ready for and knowing of the BK to come. These guys, in my opinion were vultures waiting for a high paying trustee job. Already in cahoots with Karen prior to the BK. Frankly, that's scary! Ron's the hero here, not the villian. Learn the facts before you shoot off your posts. Some of you still defending Karen and Josh are only sounding ignorant or perhaps Josh, Joeli, Karen or a couple remaining friends they may have are posting?
And to the person who wrote that Karen and Joshua seemed like nice people. Don't you get it? They are con artist. Con artist usually have likeable personalities! Ask their staff what they think of them and you'll get another version!
By: Anonymous on 8/8/08
To TOO CONFUSING:
Where were you while "Cooper" was being nobody's friend but his own. Certainly not driving the bus. I wonder if you were even on the bus.
Easy to criticize others when you yourself have done nothing for the rest of us. Yes, I do believe what Cooper did was speed up the time frame preventing J & K from looting us for several more months.
Again, what did you do for us?
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By: Anonymous on 8/8/08
I googled Richard Willrodt arrested by LAPD at Bonaventure is it there and records on file show he is a partner with Hertel it is also reported in the Ventura County Star Camarillo Man found in LA Hotel with boy
By: Anonymous on 8/8/08
Right the fund was put into bk by K and J, but Cooper — who was a borrower (!) put EFI into bk. So that means one is the villain and others are — the villains, right ?
I suspect that Cooper is nobody's friend but his own.
There seems to be a few level-headed people on this site, but one or two others who just want to make people mad. I suspect it's one of the authors of this column playing us all like a bunch of chumps. How else to keep people posting? Yeah, I think it's that poster that has a hard time spelling that is probably one of the authors — just trying to throw us off. Pretty sleezy approach. Is that you Dan? Is that you Karen?
I thought the olive oil thing was pretty old. Didn't they start that up years ago? How can anyone connect that to the events of the last year or so? And when did K buy those gas stations? Was it just last year? Never heard of Three Bells, is that a real winery?
Just questions, you can hold the insults.
By: Anonymous on 8/8/08
I googled Richard Willrodt arrested by LAPD at Bonaventure is it there and records on file show he is a partner with Hertel
By: Anonymous on 8/8/08
An attorney was in the process of putting a new managment team together for the fund. If he would have been allowed to do this the fund could have been managed by the fund investors instead of a trustee. Even if Estate was in bankruptcy the fund is a seperate entity. So if your in the fund remember it was Estate that put the fund in bankruptcy and stopped you from determining your own fate not the people who forced Estate into bankruptcy. So what were Estates motives for not letting the investors gain control over the fund and chosing bankruptcy instead. The fund was not being sued Estate was.
By: Anonymous on 8/8/08
Wow…didn't know that. I don't think the press is what makes the oil taste good though. My wife has an expensive set of cookware and she can't cook!
By: Anonymous on 8/8/08
To Esquire:
Why wouldn't their olive oil taste great? Money was no object in buying the best, most expensive press in all of Europe! She and Josh had to travel throughout Italy to find it.
By: Anonymous on 8/8/08
To Esquire:
Why wouldn't their olive oil taste great? Money was no object in buying the best, most expensive press in all of Europe! She and Josh had to travel throughout Italy to find it.
By: Anonymous on 8/8/08
Have you tasted the Olive Oil? It is Fantastic!
By: Anonymous on 8/8/08
If you were asking me…
I am an "almost" investor. I have friends that have invested and lost a lot. That is my interest in this site. The difference is my friends are waiting to see how the chips fall and I am glad. I don't believe they even monitor these comments because of the tumult it causes. I met K and J once and an found them to be very nice people. I was offerred to be an investor, took the paperwork, but in the end decided it was too risky for me. You don't have to be directly involved to be interested in the site, do you?
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By: Anonymous on 8/8/08
Paslolivo Olive Oils! Featured in the NY Times! the Washinton Post! "Best in Show!" "Named one of the Top Ten Oils in the World!" Now we know why Karen and Josh didn't have time to manage our investments, make sure that construction was proceeding as it should, or return our calls – why, they have a "TOP TEN IN THE WORLD" olive ranch to run! Open Thurs-Mon for tastings! 8530 Vineyard Drive, Paso Robles. Why, they even invite us to press our own olives for free on Pasolivo Community Olive Press Day on November 29! Are they just plum full of community spirit or what? See you at the tasting room and be sure to save the date and bring your olives on Olive Press Day!
By: Anonymous on 8/8/08
I getting tired of people spouting off regarding greed. Since when is trying to make a return of 10-12% considered greed. I am comfortably retired because I wasn’t satisfied with 3% return on my investments. I guess some of you favor less aggressive economic opportunity….like they have in Cuba. Everyone has to balance risk with reward. Unfortunately at EFI, thieves had their finger on the scale.
By: Anonymous on 8/8/08
Who are you? Really?
You state you are not an investor and not involved. Why are you on this site?
I understand loosing money if the market goes down. That is the chance we all took. However, when the whole porfolio goes into foreclosure, it isn't the market.
By: Anonymous on 8/8/08
Some folks are on here just to stir people up. They offer no legit insight or knowledge of the circumstances. This is slowly devolving into a place to take random shots at each other.
But I do have one question for anybody who knows. If K is making a claim for money in the bankruptcy, does that mean she didn't take money in the past – that she now claims she is owed? Didn't she pay herself for the last year? How can she have a claim as a creditor?
By: Anonymous on 8/8/08
Question, were you one of the greedy ones who was raking in the profits prior to it all going downhill? Your statements are so harsh! Yes, they are parents and grandparents and the slitherly way you are delighting in this situation is so sad. Maybe we should question your parenting skills. Who would want someone like you being a influence on anyone.
By: Anonymous on 8/8/08
If it is found that the winery, olive oil co, etc were purchased illegally with EFI investor money, would the court not mandate their sale and the proceeds to back to the investors?
I really want my money back, however, if it goes to an attorney or gets burned in a fire, it is better in my opinion that K&J never touch it again. We would never see any return of investment from them.
Just imagine, if (LOL) guilty, they will both sit in prison knowing they put their mom/son in prison and changed their lives negatively forever. (great parenting….) All that for a few years of fun. How much fun are they having now knowing what may await them and knowing how many people hold hatred for ever knowing they existed.
By: Anonymous on 8/8/08
I dig your new advertiser.
By: Anonymous on 8/8/08
I thought they were forming a creditors committee and an investors committee. Why not give these committees a chance to represent your interest and distribute information before flying off the handle.
By: Anonymous on 8/8/08
Hey all: As reported by the tribune this a.m. Mission Medical's 6 year Bankruptcy was just resolved with creditors receiving their proprotional share of what was left. How long do you think this one will take? 2014?
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By: Anonymous on 8/8/08
Anonymous says:
Who should we contact at the Bankruptcy Court for consideration of only one trustee? Does anyone know?
When I find out the mechanism to combine the two Trustee, I will post it. We are at the initial stage of theprocess so confusion is inevitable. Hang on!!!
By: Anonymous on 8/8/08
Who should we contact at the Bankruptcy Court for consideration of only one trustee? Does anyone know?
By: Anonymous on 8/8/08
Remember, Karen was filing BK for 'both' EFI and EFMF. Ron beat her to EFI. Go ahead and complain about lawyers fees from the involuntary BK, they were coming anyway.
What to focus on now….WE DO NOT NEED TWO TRUSTEES!!! along with their attorneys. That is a waste of the investors money. There needs to be a motion to remove one. It's obvious that EFI and EFMF were so entertwined that it should be considered one company.
If all are concerned about legal fees, focus your attention on removing a trustee and you will save a bundle! Express your concerns to the US Bankruptcy court.
By: Anonymous on 8/8/08
Barbara says:
You still don't get it! With BC in place, Investors have a better chance of getting some of the money back. Notall not half but something.
Karen and Josh inplace, they had the money coming to themselves. Not a peny, not a dime, but most of it. Tem liquidating and pocketing as money was coming in based on their claim for expenses and manaegement fees. How much legal cost were they racking up? Look at the creditors list for the EFMF. That does not even show the retainers allready paid upfront.
By: Anonymous on 8/8/08
I say thanks to the judge for appointing the trustees. Now we have people with no conflict of interest (we won't be funding any of their LLC's!) who will be looking out for our best interests (unlike Karen and Josh) and who we will not have to worry and wonder what they are doing. Their actions will be transparent and approved by the Judge. There will be no secrecy and no backroom deals with their buddies. And it will cost us a lot less than Karen and Josh charged us. Do the math and be grateful that we finally will have some accountability for our investments.
By: Anonymous on 8/8/08
Barbara,
How much an hour did Karen and Josh charge?
By: Anonymous on 8/8/08
Have you figured it out yet?
You are Sh*t oout of Luck.Only ones who will get ANYTHING are the Attorneys and the illegals who will strip copper out of the abandoned houses.
By: Anonymous on 8/8/08
To Say What??? $750.00 an hr
They already have! we can thank the group who filed the involuntary bankruptcy -forcing the company into Cht 11 bankruptcy. So now we are stuck with attorneys that will blead us dry. It seems funny the Department of real estate, and the Department of corporations which they operated under have not filed charges against them. I'm not saying they didn't do anything wrong. But all we hear is all the crimes they committed, yet no filings. I think the real crime here is we all getting hurt even worse because some people panicked and got us into this situation, now we are stuck with it, like it or not.
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By: Anonymous on 8/8/08
Three Bells Winery?!….never heard of that! Hard to believe.
By: Anonymous on 8/8/08
$185,000 per month equals $2,220,000 per year. Karen was charging 1% managment fees on a $350,000,000 portfolio. That's $3,500,000 per year. And that doesn't include all her other fees – for "managing" rental property that we didn't want rented, her 6% broker's fee for every property sold, her "monitoring fees" for inspecting construction progress and monitoring disbursements from the Construction Disbursement Account, loan "origination fees" and refinancing fees. So, not only did we pay her for all these services she never provided, but then we had to pay for her entourage of attorneys to defend herself against lawsuits, her PR firm to try to make her look legitimate. So, the way I see it we are getting solid professional help, overseen by the Court (whereas Karen and Josh had NO oversight)for a fraction of the cost.
By: Anonymous on 8/8/08
The winery is Three Bells Winery.
By: Anonymous on 8/8/08
I can't find anything in the LA Times about that. Where did you hear this? Sounds kind of far fetched.
By: Anonymous on 8/8/08
"While at the helm of EFI, Guth and Yaguda accumulated a wealth of holdings, including gas stations in Templeton and Morro Bay; a WINERY and Pasolivio Olive Ranch in Paso Robles…"
Which winery is this?
By: Anonymous on 8/8/08
"While at the helm of EFI, Guth and Yaguda accumulated a wealth of holdings, including gas stations in Templeton and Morro Bay; a WINERY and Pasolivio Olive Ranch in Paso Robles…"
Which winery is this?
By: Anonymous on 8/8/08
RW Hertel & Sons partner Richard D Willrodt arrested for child male rape by LAPD at the Bonaventure more to come the case is closing in on Fowler and Hertel et al
By: Anonymous on 8/8/08
That's rediculous. That isn't even justifiable. Somebody do something.
By: Anonymous on 8/7/08
I see everyone going off on how much we were being ripped off by K. and J. but how about the legal ripoff we are getting now I spoke to someone today who had a meeting with one of the trustees Tom Jormison and he found out that we are a pain these two attorneys $750 an hour apiece that their estimated cost for running the business is $185,000 a month now you want to know why you're not getting your money when a property sells its no different than it was before except now these people can extract $185,000 a month from the investors now let's see if I was making $750 an hour would I be in a hurry to get the job done?
Food for thought and if you have any doubts about it read the court documents you will find out, this is not gossip but fact I don't know too many people making $750 an hour
By: Anonymous on 8/7/08
Careful, you may just step over the line. Ka-ching !!!
By: Anonymous on 8/7/08
Post your e-mail and I'll scan the cartoon and e-mail it to you.
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By: Anonymous on 8/7/08
Anonymous says:
No, unfortunately, Hodin's cartoon isn't available at New Times on-line. You have to pick up todays paper.
Some of just can't drive to pick up the paper. I'd like to see it if could
By: Anonymous on 8/7/08
No, unfortunately, Hodin's cartoon isn't available at New Times on-line. You have to pick up todays paper.
By: Anonymous on 8/7/08
Is the cartoon in the on-line version? I didn't see it.
By: Anonymous on 8/7/08
It's not an article. It's a cartoon by Russell Hodin. Check it out.
By: Anonymous on 8/7/08
Olive Oil !
Gossip? yeh sure! Ask the people who got their pay checks from EFI and the contractor who did for work on the gas station.
Don't worry, it will all come out through forensick accounting. Some papaers have been "accidentally" destroyed and computer storage delated, but most recosrd can be traced through the banks and borrowers records.
So far this site was on the line. So gossip maybe today. Facts tomorrow.
Also, the Trustee will get records from the CPA and wherever they can get it from.
Your defense of the crooks is appriciated by them, keep on.
By: Anonymous on 8/7/08
Where is the article on karen and josh?
By: Anonymous on 8/7/08
Russell Hodin scores big in today's edition of the New Times – check out Karen and Josh. This should be pasted on every bottle of pasolivo olive oil.
By: Anonymous on 8/7/08
Declarations under oath are much different than "gossip." Do your homework and read Karen's divorce documents – they are public information.
By: Anonymous on 8/7/08
Stirring up trouble. If not gossip, this whole site seems to be about making people mad. You put in a simple comment and somebody tells you to "get a grip." Thanks for nothing. Where are your manners, Ms. Manners?
Paso Guy sounds like an adult. Compared to some, for sure.
By: Anonymous on 8/7/08
Anonymous are you certain about paying the Olive Oil employees? I thought that was a profitable operation, why would she need to do that? There are only a handful of people that work there.
By: Anonymous on 8/7/08
What is the point of that comment? If you read the docs you know you didn't..if you didn't read them, them maybe you did
By: Anonymous on 8/7/08
Did we also sign any documents authorizing Karen to pay her Olive Oil employees from our investment funds? Must have been in the small print.
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By: Anonymous on 8/7/08
If thet were operating like RPL or vanguard, the "brokerage fee" was points they charged the borrower (2-6 pts) and always took that $ up front..that was contractual…the ongoing service fee was generally 1%…charged 13% and the investor netted 12%.
The agruement has been that even though the loans were in default or forebarence, they still wanted their 1%.
I haven't done the research, but I imagine we ( the investors) sighned off on this when we signed their contract
Anyone know?
By: Anonymous on 8/7/08
insider says:
Those fees add up to millions. Both in fees and interest.
The answer is yes, when the documents put togather, investors who received benefit from the operation will have to pay back. Not the original principal but the interest receved on it. Even if they never received any actual cash payments but only a book entry and paid taxes on it (I mean roll over interest that was compounding on the books).
There will be many unpleasant suprises and teeth grinding.
By: Anonymous on 8/7/08
One thing that appears that may have been happening for a very long time was the practice of partially funding loans but taking the entire brokers fee at the time of closing. This could have added up to hundreds of thousands of fees that Estate collected for loans that were never fully funded if proved true. Also if Estate was collecting whether on the books or in cash managment fees for loans that were not fully funded that could add up to hundreds of thousands more. A real interesting question will be if one investor got out by being paid off by a new loan by estate to refinance one investor out at the expense of the new investor. Could the court ask for a return of those monies? I think so.
By: Anonymous on 8/7/08
Back at ya Jorge !
Get a gripp of reality!!
If it wasn't for this site, Karen and Josh be still in the office liquidating anything to get more cash out. Haven't you've been reading previous post? She blatantly stated that before any funds will be distributed to investors, all expenses including management fees will be paid out?
Just to redirect your short term memory! In October she stated that within 60 to 90 days they will resume interest payments. Than she so brazenly stated that they are here to stay its only the market faults and the credit crunch. By May she met with Bankruptcy lawyer and Trustees. In June she still acted like its only a few disgruntled investors and a looser borrower making too much noise!
Finally, after the involuntary Bankruptcy petition was filed, instead of bothering to provide an answer or defense on behalf of the investors, she filed BC on the Mortgage Fund.
Prior to that, she and Josh resigned turning over the botton to two handpicked people while asking investors to rehire them as Consultants.
In the BC filing, she so blatantly put her claim for $3,000,000.00 as part of the management fees based on her estimate of the defunct portfolio. She was trumped by the BC filing and unable to take out the $3,000,000 from any liquidation.
I am just amezed how can you still question this site or accuse them of being a "gossip" only. Where was the Tribune all this time. Hiding their heads in the sand while the bleeding continued. Was there any Fraud comitted? In my opinion yes. Big time for that matter. Look at all the LLC set up by Karen and money taken out on either incompleted project or absolutely nothing done like the Templeton Mixed use site.
Hello!! $11,000,000.00 for something that is worth much less than that. Not even applications turned in? Can you see incompetence or FRAUD?
By: Anonymous on 8/7/08
Well, you can quote me. I was not enticed, just a bit greedy is all.
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By: Anonymous on 8/7/08
One thing that everybody has to keep in mind is that whatever is going to happen is going to take a long time. All this stuff about witch-hunting, and torches is nonsense. We have to start thinking and acting like adults. What will happen will be in an orderly process, with investor input, but ultimately it all rests in the very capable hands of a bankruptcy judge. Investors should not dispair. I say, just cool it and let the process work.
Lastly, I have to question the quality of undercover's reporting. This page is more like a gossip column. Were investors "enticed" ???
I don't know if the principals in this fiasco are considered public figures and I don't know if this webpage can avoid being sued for libel if they're not more careful in writing about the "alleged" wrongdoing of private citizens. You know, how news shows are careful to always say "alleged" even when everybody knows what happened? Everyone likes to say that the truth is an absolute defense, but proving what is the truth can be harder than you might think. Just don't want to see Dan or Karen getting sued. It's always better to have quotable sources.
By: Anonymous on 8/7/08
Take heart, investors. Now our investments are being managed by trustees who are accountable to the court and responsible to the investors. Forensic accounting will show Karen and Josh for who they are and what they did with the money we invested. Their LLC's and personal properties will be looked into. If they were funded/bought with moneys which were supposed to have gone into the properties, then we will have other avenues for recovery. Also, insurance and liability of other parties may be a source. Do not be discouraged by all the naysayers on this blog. Ignore them and they will find another site to ramble on. Hang tight.
By: Anonymous on 8/7/08
It is said that posession is nine tenth of the law. It seems by this feeassco that the remaining tenth is for everyone else: Something for nothing, perpetual motion, the check's in the mail and get skinny lotion, get rich investors and cash registers ring. These are a few of my favorite things……
By: Anonymous on 8/7/08
If anything needs to happen in the full light of day its everything and anything having to do with this. The last thing the investors need is someone on thier high horse telling them they made a mistake trusting these people. They get it! All you do is depress them more and give them no hope. Part of the plan I'm sure to not make to much noise. At least by shaking things up the updates are printed and they get some sense of the progress being made. Even if they know one by one properties are being sold and money is being put in an account for future distribution they see progress even if it is at a slow pace. If they know the authorities are looking at the actors in this drama then they at least know that the personal assets of the managment may eventually be a part of the settlement. The last thing the investors need is to be lulled by admonitions regarding thier investment motives. Let them continue thier witch hunt for without it they would have never gotten this far and who knows there may be some witches in this case.
By: Anonymous on 8/7/08
Cred on this site? LOL who gives a rats ass?
Let me say this for anyboby that cares..(why anyone would care is beyond me)…I don't like to think I was ripped off and if that if that proof surfaces I will have to deal with it. EFI or any other hard money lender did not create this bear RE market. Wrongdoing or not, we were all screwed and projects were not going to completed and interest was not going to be paid…let the investigation continue and see what crimes were committed and what crimes can be prosecuted.
No matter where this goes, I'm sorry that some people were so blind to the risk.
By: Anonymous on 8/7/08
Not sure what I am being exposed of except impartialilty. I was not an investor and am not personally involved. With all of the attention to this, if there is wrong doing then it will come out. I am just saying, put out the torches until that happens. The investors are already suffering, no need to whip them into a frenzy when they are already feeling bad.
By: Anonymous on 8/7/08
insider says:
to my money is under my mattress & Paso Guy
Ignorance is blissful, Enjoy it while it last
By: Anonymous on 8/7/08
my money is under my mattress
Good try!!
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By: Anonymous on 8/7/08
to my money is under my mattress & Paso Guy
Well I think your motives are clear at this point. You are exposing yourselves for what you are. Watch out your credibililty is in short supply.
By: Anonymous on 8/7/08
Any one still beleives this was just greed and stupidity is gravely mistaken. Karen and Josh knew what they were doing exactly. Their greed arrogance and total disregard to others wellfare caused all this problem. While the going was good they had many supporters, but hopefully some realize the gravity of the situation.
It was nothing less than a PONZY SCHEME and the law is looking at it that way.
By: Anonymous on 8/7/08
When a person sells a house that loses money, the realtor/broker still gets their commission. Isn't that the way of the world? This seems a little witch-hunty to me. Yes figure out if there were illegal activities…I mean actually prove it. Until we know for sure, stop being a hater. It seems like there are more people to blame here than just K and J.
By: Anonymous on 8/7/08
A few years back, a friend of mine was ready to invest in my project through Karen. She told him that my loans were fully funded, but had other opportunities. I know my friend for a long time and he funded some of my projects directly. I never had problem working with him because he visited the site and when I requested money it was available within 24 hours or by postal delivery.
When dealing with private lenders, all money should be in a segregated account for the project earning interest to the benefit of the borrower.
No way had Karen allowed investor and borrower make connection. That could have exposed her long time ago. If investors took the time and efforts to contact some of the borrowers, maybe this fiasco could have been exposed much sooner limiting the damage to all of us.
Karen when made the loan took her fees upfront even when the funds were not available while charging interest on it. Also, she had the money deposited in an interest bearing account to the benefit of EFI. Investors were charged a management fee on funds that was neither in the account or available. Nice going for her able to charge interest on non-existing funds.
Her $3,000,000 management fee claim to the Bankruptcy Trustee just adds insult to injury. She is still around to liquidate her numerous investments around the county. We can watch her and Josh around town relieved of everyday responsibility at EFI. They enjoying the fruits of our labor, while we wonder what is going to happen the next day. Good going.
By: Anonymous on 8/7/08
Maybe Karen and Josh were over their heads and not con artists. Does insider have any sympathy for their potential greed or stupidity?
By: Anonymous on 8/7/08
You just keep fighting those windmills Insider, and everything will be fine…I gaurantee it!
By: Anonymous on 8/7/08
Yes they were greedy. Since they were stupid too they probably don't even recognize the greed motive. You too whoever invested were greedy. So what! Being geedy and stupid is not illegal last time I checked. I don't care how you intend it, it always seems to come off as an excuse to fogive the perps. I don't by it. I still feel sorry for some 80 year old person that put up thier life savings to a potential con artist whether they were stupid and greedy or not and people who post the smarter than thou comments don't get it or are from the other side the way I see it.
By: Anonymous on 8/7/08
Insider:
Sounds like just want to argue for arguement's sake.
Noone deserves to be ripped off..hell, I had around 25% of investment assets in EFI. I could and will survive even if all is lost. I still don't want to ripped off…just saying that those that put it all on the line were greed driven and not on top of their investment game…same as the folks that took a bath on junk-bonds back in the 80's
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By: Anonymous on 8/7/08
To insider:
No, I would never condone this happening to anyone. I disagree that the smart people knew when to get out, I think the smart people never invested…like myself. It sounded too good to be true to me.
By: Anonymous on 8/7/08
So if people are stupid but honest they deserve to be ripped off by smart but crooked people. Sounds like somebody smart got out while the getting was good and these judges are going to level the playing field between the stupid and the smart. Ouch!
By: Anonymous on 8/7/08
Anyone that was all-in with this and had no time or talent to make the money again is a fool. Investors need to be prudent when deciding how much risk their houshold can tollerate. With absolutely no gaurantee, and we all knew there was no gaurantee, it was too much risk for many…but greed won out.
By: Anonymous on 8/7/08
The US has an Extradition Treaty with Costa Rica Signed at San Jose December 4, 1982; entered into force October 11, 1991.
Website: http://sanjose.usembassy.gov/exttreatyeng.html
By: Anonymous on 8/7/08
To insider:
You are right. I have no empathy. As for my head being up my ass…
Learn how to spell and then we can talk about brains…
By: Anonymous on 8/7/08
In response…
….When you invest your money and are given documents that look greatand show your portfolio is working, why would you question it?….
This entire situation is why I would question it. We are all responsible for ourselves. I agree that there are complexities, but we are culpable for our own decisions.
By: Anonymous on 8/7/08
to My money is under my mattress
AKA if I had a brain it would be up my ass with my head
These people were recieving all the interest on thier money as promised. Hence no reason to be suspicious. Unfortunately they were only getting thier own money back or some poor shmucks money who came in after them. Thats why some are calling it a Ponzi scheme. Your empathy is underwhelming
By: Anonymous on 8/7/08
There have been problems for awhile but the local papers base their article content on advertisement revenue and not based on facts.
Investors have been given a song and dance regarding their investments and when someone has been a squeaky wheel they have gotten the grease. When you invest your money and are given documents that look greatand show your portfolio is working, why would you question it? Investor could not have known that the papers were bogus. Plus think about all the taxes that they paid on money they will never receive.
By: Anonymous on 8/7/08
I am relatively new to this but haven't seen comments/complaints about the company prior to last fall. Were there any or did people have their head in the sand while they were reaping the financial benefits of high dividends? Stop blaming others for your high risk decisions. If you write the check to invest, you should know what you are getting into or suffer the consequences.
By: Anonymous on 8/6/08
Anonymous says:
Tiffini Hughes investment was originally B106-06 (first trust deed position), now is B155-06 (second trust deed positlion.)
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August 6th, 2008 at 7:47 PM
Anonymous says:
Tiffini Hughes, I'm afraid, is in cahoots with Karen. I called and left a message for Ms Tiffini Hughes who never returned my call. Subsequently, however, I was able to contact a sales person involved with Tiffini Hughes condo sales, when I told him I was interested in purchasing a condo in Bakersfield and that the website for Tiffini Hughes looked like what I was looking for, I was told that it is incomplete, there are no salespeople on site, that it is in a "bad neighborhood with gang activity", that properties surounding Tiffini Hughes are selling for considerably less and couldn't he interest me in another piece of property? So, after Karen convinced us all that we had to subordinate our first trust deeds to a second position in order to obtain funding to complete the project, we now most likely will see no return of our investment. By the way, interestingly enough, Ms. Tiffini is selling property in Costa Rica – a country which does not have an extradition treaty with the U.S. Wonder who her investment partners are?????
August 6th, 2008 at 7:43 PM
Anonymous says:
Does anyone have information on the Tiffini R. Hughes Investment loan B156-06 in Bakersfield, corner of Fairfax Rd & Eucalyptus Dr? I have called her and she doesn't return my calls.
Thanks
August 6th, 2008 at 1:18 PM
By: Anonymous on 8/6/08
See last two postings regarding Tiffini Hughes (loan B106-06 and B155-06) on uncovered slo 7/20 report.
By: Anonymous on 8/6/08
To: wheresmymoney:
I'm sorry… I don't know the answer to your question…
I believe that in time… the "new" people put in charge of E.F. will be able to answer your questions…
My guess is… and it is just a guess on my part… is that even they don't know the answers (at this point in time)…
By: Anonymous on 8/6/08
Jim,
How can I find out information regarding my EFI Inc. 1st trust deeds. I have 9 different loans and some of the properties involve unfinished/incomplete
homes and others are just raw land. Who can tell me the status of my loans and how do I contact them?
Some projects were in the process of being sold and now I have no idea about what happened to them.
By: Anonymous on 8/6/08
Hang in there, Jim!
By: Anonymous on 8/6/08
Hey,
I am just trying to buy food!!
By: Anonymous on 8/6/08
to truthfull
Your an ass. Sounds like Jim knows his situation and is dealing with it as best he can.
By: Anonymous on 8/6/08
To Jim, where is your culpability in investing your life savings into a high risk/high interest insitution. Sad the lack of responsibility in this country.
By: Anonymous on 8/6/08
Thank you for publishing this information… I am an "investor" with E.F. and hear so very little about what is going on at this time…
Ya know… there is the "personal" side of this… in that I had invested my entire life savings with this firm… I realize this is going to take quite a bit of time… and I am trying to just ride this out (yeah… like I have any other choice)…
Anyway… thank you for your good work…
By: Anonymous on 8/6/08
Thanks for the update. Guess I'm not buying that beach property.
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