Fun in the sun for Heritage Oaks Bank officials

April 8, 2010

By KAREN VELIE

Less then a month after Heritage Oaks Bancorp raised $60 million through the sale of securities, some members of the Board of Directors and high-ranking bank officials have taken off for the board’s annual trip to the Hawaiian Islands, sources said.

The junket comes on the heels of regulatory action that banned the company from paying dividends or incurring debt as part of a written agreement between the company and the Federal Reserve Bank of San Francisco.

Shortly after the Paso Robles-based Heritage Oaks Bancorp raised the additional capital, the company released revised fourth quarter losses that increased the year to date net losses from $5.8 million to $7 million. Bank officials blamed accounting errors for a recently discovered additional $1.8 million in losses for the fourth quarter of 2009.

Last year, while bank officials were waiting for the U.S. government to deliver their allotment of $21 million in taxpayer bailout money, at least six bank officials chose to bide their time on an Hawaiian beach. Meanwhile, state side, Senator John Kerry of Massachusetts vowed to introduce legislation to end “the extravagant spending practices” of banks that participated in the federal bailout.

Bank staff told CalCoastNews that CEO Larry Ward recently returned from vacation. Ward did not return requests for comment.


15 Comments

  1. ————–Again, with my April 2010 principal and Interest Payment to Heritage Oaks Bank, they do not appy principal to my property loan! Are Heritage Oaks Banks actions in accordance with Applicable Banking Laws Enforced by the SBA, Department of Financial Institutions and the FDIC?

    Please review my E-Mail to the FDIC after reading “mkaney’ thoughts, again thanks!

    Posted Transactions
    Date Description Withdrawals Deposits Balance
    4/14/2010 REGULAR PAYMENT $2,300.00 $259,112.55 [Send a Message]
    3/12/2010 REGULAR PAYMENT $2,300.00 $259,185.77 [Send a Message]
    2/12/2010 REGULAR PAYMENT $2,300.00 $259,258.99 [Send a Message]
    1/19/2010 REGULAR PAYMENT $2,300.00 $259,332.21 [Send a Message]
    11/30/2009 PRINCIPAL PAYMENT $73.22 $259,405.43 [Send a Message]
    11/30/2009 REGULAR PAYMENT $2,226.78 $259,478.65 [Send a Message]
    11/6/2009 REGULAR PAYMENT $2,300.00 $259,478.65

    From: XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    Sent: Tuesday, April 13, 2010 9:27 AM
    To: ‘legal@fdic.gov’
    Cc: ‘dporter@dfi.ca.gov’; ‘Ombudsman Washington’; ‘ombudsman@sba.gov’; ‘dvallely@co.slo.ca.us’; ‘velie@calcoastnews.com’; ‘Mendoza, Carlos G.’; ‘Truly, Ronald E.’; ‘lward@heritageoaksbank.com’
    Subject:

    April 13, 2010

    Dear FDIC (Adela Coronado/Sachie Tanaka/Ms. Frances Tam) SBA, San Luis Obispo District Attorney and the Department of Financial Institutions

    RE: FDIC Case—Ref. No SCC2009N-000518-0 –Heritage Oaks Banks Mistakes
    RE: Department of Financial Institutions Customer # 26608
    RE: San Luis Obispo letter March 17, 2010—Debra Vallely Director, Economic Crime Unit.
    RE: Mr. William Raver’s November 12, 2009 letter to the FDIC Consumer Affairs Specialist –Ms. Frances Tam.

    Are Heritage Oaks Banks actions in accordance with Applicable Banking Laws Enforced by the SBA, DFI, FDIC?

    Mr. William Raver States November 12, 2009 that Heritage Oaks Bank will only respond to the FDIC as stated! “I Specifically advised him that we would be responding to his complaint only through FDIC and your office.”

    Ms. Frances, SBA, DFI, FDIC as Heritage Oaks Banks (President Larry Ward—Attorney William Raver and Greg Chilina) do not want to answer banking loan questions asked of Heritage Oaks Bank—loan # 302730 Heritage Oaks Banks actions may be impacting other California Banking; customers loans. . I am again asking of the FDIC assistance for my questions asked of Heritage Oaks Bank to be answered per their letter of explanation to the FDIC November 12, 2009. Attached above is a PDF file with Heritage Oaks Banks Retaliation letters since bringing this to the FDIC attention. A letter from the San Luis Obispo District Attorney March 17, 2010, along with previous provided documents and a Pacific Capital Bank letter dated May 17, 2007 dealing with my SBA Loan and Heritage Oaks Bank misinforming Pacific Capital Bank in regards to my SBA Loan # 6641964009!

    According to Heritage Oaks Banks Documents as of October 15, 2009, Heritage Oaks Bank believes that my full payoff amount with my loan # 302730 as of this date is $279,178.58 with a principal balance of $259,625.09 and interest accrued of $19,497.49! This does not compute with an Amortization Schedule that Heritage Oaks Bank had provided to the Internal Revenue Service! Nor does this compute with the “Loan Transaction History” provided by Heritage Oaks Bank to the FDIC!

    From Heritage Oaks Banks Excel Spread Sheet, “Loan Transaction History”–April 5, 2002 to May 25, 2007. The amount owed Heritage Oaks Bank on May 25, 2007 was $286,902.51. From an Amortization Schedule prepared off the internet from April 2002 to May 2007 using $2,232.14 as a monthly payment this balance comes down to $282,248.79 showing Heritage Oaks Bank not accounting for $4,653.72 in regular principal paid from April 5, 2002 to May 25, 2007.

    Heritage Oaks Bank does not account for the extra payments on April 18, 2002 of $5,000.00!

    Heritage Oaks Bank does not account for extra principal payments from June 2003 to May 2007 of $67.86 times 28 which come to $1,900.08 paid to reduce my loan as seen in their excel spread sheet! Heritage Oaks Bank shows no late payment fees at any time!

    The total that Heritage Oaks Bank cannot account for from April 2002 to May 2007 is $12,653.80 in their excel spread sheet is:
    $5,000.00 Mortgage and Principal Payments
    $4,653.72 Regular Principal
    $1,900.08 Extra Monthly Principal Payments
    $12,653.80 —-This puts Heritage Oaks Banks Communications with my SBA lender in 2007 to be inaccurate!
    Heritage Oaks Bank does not account for $1,465.40 paid in extra principal payments from March 2008-November 2009 of $73.22 times 20?

    Heritage Oaks Bank does not account for $3,068.56 additional principal paid to my loan in my payments from February 2, 2008 to present of $139.48 Times 22? When I prepared my own amortization schedule on line from January 2, 2008, it was found that I was paying $139.48 over what my payment should have been?

    With the January 2, 2008 Change In Terms by Heritage Oaks Bank a new mortgage amount was established by Heritage Oaks Bank that they have since tried to change in a request for a payoff amount! This Change in Terms amount as agreed on January 2, 2008 was $265,323.39. This Change in Terms ultimately accounted for Heritage Oaks Banks prior mistakes as seen above!

    Heritage Oaks Bank Reported to the Internal Revenue Service on December 31, 2008 that this loan Balance was paid down to $260,284.07 with $20,041.02 interest being paid for the year! Now Heritage Oaks Banks believes that $279,178.58 is owed?

    The total that Heritage Oaks Bank cannot account for from March 2008-November 2009 is $4,533.96
    $1,465.40
    $3,068.56
    $4,533.96

    The total owed by Heritage Oaks Bank before interest and interest that should have been applied to my loan is approximately $17,187.76 plus $1,737.22 of business working capital taken by Heritage Oaks Bank after complying with their June 10, 2009 demand letter. Heritage Oaks Bank informed the Internal Revenue Service on December 31, 2008 that my balance was at this time $260,284.07. This is where Heritage Oaks Bank should take responsibility actions for their mistakes in accounting.

    I am hoping for the FDIC, SBA and State Banking Authorities see that Heritage Oaks Bank is not allowed to perform this type of banking and that a full investigation is taken into all of Heritage Oaks Banks customer loans!

    Attached below is a news article from Karen Velie of the Cal Coast News in regards to Heritage Oaks Bank. Please review the public comments below as I have been making Heritage Oaks actions and questions of Heritage Oaks Bank public knowledge. “Mkaney” In his comments below makes some good points in his response to Heritage Oaks Banks documents!

    Sincerely

    XXXXXXXXXXX

    Like or Dislike: Thumb up 0 Thumb down 0

  2. mkaney says:

    @Inverse: Though I still do not understand specifically the problems related to your loan, I can tell two things.

    First, the request that you hold your payment for a few days so as not to complicate the analysis is *definitely* not standard behavior for any bank. Of all the letters you’ve posted, THIS should certainly be the one that gets the attention of regulators. Disputes over debt balances are everyday matters in the banking industry and there are standard practices that are applied to handling of payments in these situations. I am shocked by the idea that the VP of a bank cannot provide for an analysis of any loan upon demand.

    Secondly, what the gentleman is requesting from you, when he asks for your accounting proof, he is not really asking for evidence… what he needs, and what would certainly be in your best interest to have available, is a spreadsheet which shows your determination of how payments and interest should have been applied. Let me be clear.. there are not a multitute of different analysis that this bank employee has to choose between. He should be able to take the loan details, combined with your payment transactions and come up with an exact schedule of transactions using standard financial accounting principles.. this should match up to your actual transaction history, and where it does not, an explanation needs to be provided. You really NEED to have your own analysis as well, because without it you will find it hard to get people’s attention, but it does seem like he’s asking you for it so that he doesn’t have to do the work himself either because he doesnt know how to (huge problem) or he knows there are accounting problems with their information systems, or both.

    I think that you may be having some challenges with communicating your issues, simply because you are not speaking financial language with these people. I have seen your transaction histories and do think there are some unusual things in it, but you need to be able to pinpot exact variances between actual transactions and your own projected transactions, and point to specific transactions which you have questions about. This is the way you can make your case and make it quickly without having all these delays and confusions.

    Like or Dislike: Thumb up 4 Thumb down 2

    • cheseburger says:

      “I think that you may be having some challenges with communicating your issues,” hey like the banker only speaks Spanish or Ilocano, this is the banks responsibility! Good post though, and an excellent post, FIX,,,,,,, we buy banker Rosetta Stone Disk! Ha! The bank would normally foot the bill but they can’t after the expensive vacation to Hawaii. Oh and more red please I thrive on it.

      Like or Dislike: Thumb up 3 Thumb down 1

    • ————————-mkaney———–Thank you, This is one of my E-Mail responses to Heritage Oaks Bank after asking Heritage Oaks Bank questions in regards to their mistakes made in my Loan.Transaction History——-Notice that the whole Heritage Oaks Bank board of Director also received a copy of this E-Mail!!!!!

      Heritage Oaks Bank as of October 2009 is now claiming that they are owed $279,178.58 instead of what is seen in their “Loan Transaction History as of 8/27/2009???

      ________________________________________
      From: XXXXXXXXXX [mailto:XXXXXXXXXXXXXXXX@charter.net]
      Sent: Thursday, August 27, 2009 6:18 PM
      To: ‘Greg J. Chilina’
      Cc: ‘ombudsman@sba.gov’; ‘rcoghill@heritageoaksbank.com’; ‘pismobeachdiveshop@charter.net’; ‘mtorres@heritageoaksbank.com’; ‘ptognazzini@heritageoaksbank.com’; ‘mstasinis@heritageoaksbank.com’; ‘jwatson@heritageoaksbank.com’; ‘cheyl@heritageoaksbank.com’; ‘asimas@heritageoaksbank.com’; ‘dcambell@heritageoaksbank.com’; ‘kdewar@heritageoaksbank.com’; ‘dlacy@heritageoaksbank.com’; ‘mmiller@heritageoaksbank.com’; ‘dohare@heritageoaksbank.com’; ‘pismobeachdiveshop@charter.net’; ‘mfugate@heritageoaksbank.com’; ‘pdeline@heritageoaksbank.com’; ‘lward@heritageoaksbank.com’
      Subject: RE: Attachment

      Mr. Chilina,

      Please see that Heritage Oaks Bank corrects their mistakes and apply principal to all payments made. You will notice the Heritage Oaks Banks mistakes even made today under your supervision. No principal was applied to my loan other then my additional interest payment. Please advise your supervisors of your mistakes and then explain Heritage Oaks Banks explanation for yours and Mr. Deline’s mistakes in writing too us!

      Please, again pay attention to the June 10, 2009 letter written by Heritage Oaks Bank Vice President Paul DeLine. This should fully resolve this particular conflict between us!

      Sincerely

      XXXXXXXXXXX

      CC FDIC
      CC OCC

      Current Balance $259,625.09
      Dates 8/27/2000 thru 8/27/2009

      Pending Transactions
      Date
      Description
      Withdrawals
      Deposits

      No Records Available

      Posted Transactions
      Date
      Description
      Withdrawals
      Deposits
      Balance

      8/27/2009 PRINCIPAL PAYMENT $73.22 $259,625.09

      8/27/2009 REGULAR PAYMENT $2,226.78 $259,698.31

      8/27/2009 REV PRINCIPAL PYMT to reapply $73.22 $259,698.31

      8/25/2009 PRINCIPAL PAYMENT $73.22 $259,625.09

      8/27/2009 REV REGULAR PYMT $2,226.78 $259,698.31

      8/25/2009 REGULAR PAYMENT $2,226.78 $259,698.31

      8/27/2009 PRINCIPAL PAYMENT $73.22 $259,698.31

      8/27/2009 INTEREST DUE PMT $2,226.78 $259,771.53

      8/27/2009 REV REGULAR PYMT $2,300.00 $259,771.53

      7/15/2009 REGULAR PAYMENT $2,300.00 $257,471.53

      6/29/2009 REGULAR PAYMENT $2,300.00 $259,771.53

      6/12/2009 REGULAR PAYMENT $4,600.00 $259,844.75

      6/3/2009 REGULAR PAYMENT $2,300.00 $260,137.63

      5/4/2009 REGULAR PAYMENT $2,300.00 $260,137.63

      Like or Dislike: Thumb up 0 Thumb down 0

      • ———————–mkaney——-Again, Thank You, Heritage Oaks Bank on June 17, 2009 with my loan current filed foreclosure in San Luis Obispo County on my loan with it being current. This is a copy of Heritage Oaks Banks response in regards to the questions asked of Heritage Oaks Bank at this time.

        How can a FDIC insured Bank file foreclosure on a current loan and the want its customer to pay for their mistakes?

        Is this legal?

        “From: Greg J. Chilina [mailto:gchilina@heritageoaksbank.com]
        Sent: Thursday, October 08, 2009 3:20 PM
        To: XXXXXXXXXXX
        Subject: RE: Attached

        Mr. XXXXXXXXXXX,

        Whether or not the bank has fully answered your questions or not does not preclude your obligation to make the October payment and the first installment on the foreclosure cost as noted by the chain of letters sent and received by you over the last few to several weeks. As a reminder, the last communication sent by the bank is a 10 day demand which requires your immediate attention.

        Greg Chilina
        VP/Commercial Relationship Manager
        Heritage Oaks Bank
        545 Twelfth Street
        Paso Robles, California 93446
        805.369.5194
        Fax: 805.238.6257
        http://www.heritageoaksbank.com

        Like or Dislike: Thumb up 1 Thumb down 0

        • mkaney says:

          Well of course it’s not legal for any institution to foreclose on a current loan that they made mistakes with… but like I said you’re going to have to be able to document each mistake.. The only documentation that can do that, effectively, is a side by side comparison of your transaction record with a projected amortization of your loan. That is the *only* thing that will be accepted by any legal authority.

          Like or Dislike: Thumb up 1 Thumb down 1

          • ——————mkaney———-Again, Thank You,——–These are some of the Questions asked of Heritage Oaks Bank before Heritage Oaks Bank provided a “Loan Transaction History” to the FDIC confirming their mistakes going back to 2002. I tried to refinance this loan through them with these mistakes as a SBA Loan, however I was turned down by Heritage Oaks Bank, which lead me to ask the following questions of Heritage Oaks Bank!

            From: XXXXXXXXXXXXXXXXXXXXXXXXXX
            Sent: Sunday, October 18, 2009 6:10 PM
            To: ‘nhunt@heritageoaksbank.com’
            Cc: ‘ighotline@fdic.gov’; ‘ombudsman@fdic.gov’; ‘legal@fdic.gov’; ‘carlos.mendoza@sba.gov’
            Subject:

            October 18, 2009

            Heritage Oaks Bank

            Natalie Hunt, Loan Admin Rep

            545 Twelfth Street

            Paso Robles, Ca 93446

            Dear Mrs. Hunt

            Mr. Greg Chilina, Commercial Relationship Manager for Heritage Oaks Bank has informed me that my Business loan with Heritage Oaks Bank does not qualify for a Small Business Administration Loan which is prompting me to question this and find local financing for my business’s in San Luis Obispo County! Heritage Oaks Bank has a long history of making banking errors as written in letters from Heritage Oaks Bank July 19, 2007—September 6, 2007—and December 3, 2007 from Rob Coghill Vice President at this time Commercial Relationship Manager. Please also notice these and other errors in the Banks excel spread sheet attached above provided by Paul DeLine!

            In your October 14, 2009 Payoff accounting of money owed Heritage Oaks Bank account # 302730 are found many mistakes! From October 2, 2008 to present, Heritage Oaks Bank does not account for the $1,244.74 paid in additional principal of 17 times $73.22. Could you please explain this? I would like to know why this money does not appear to be reducing principal as seen in the Heritage Oaks excel spread sheet provided by Paul DeLine attached above?

            Heritage Oaks Bank on May 22, 2007-October 16, 2006-September 8, 2006-June 30, 2006-May 12, 2006 and July 25, 2005 received payments of $2,300.00 in which the additional principal was not applied toward principal! Could you please explain this?

            I have noticed from the Heritage Oaks Banks excel spread sheet as provided by Senior Vice President Paul DeLine, mistakes made prior to January 2, 2008,by Heritage Oaks Banks (Change in Terms signed contract Agreement dated January 2, 2008) These mistakes made by Heritage Oaks Bank now need to be accounted for! As Senior Vice President Paul DeLine and Greg Chilina believe that Heritage Oaks Bank has a bucket of interest attached to my loan as seen in your payoff statement below!

            I am again officially requesting of Heritage Oaks Bank for an Amortization Schedule from the beginning of my loan that my first payment of principal and interest was due on April 5, 2002? This note stated in paragraph 2 that “Payments include principal and interest.” Heritage Oaks Bank has provided an Amortization Schedule from our change in terms signed contract disbursement date of December 2. 2007. In this signed contract our beginning balance as of January 2, 2008 was $265,323.39 per Heritage Oaks Banks Change in terms Agreement!

            Heritage Oaks Bank in 2002 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2003 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2004 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2005 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2006 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2007 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2008 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Heritage Oaks Bank in 2009 in their excel spread sheet does not reduce my principal paid every month! Can you explain this?

            Oaks Bank from April 5, 2002 to September 17, 2002 does not show any principal paid to loan except $19.57?

            Heritage Oaks Bank from February 18, 2003 to May 12, 2002 does not show any principal paid to loan except $765.98 on 5/12/2003?

            Heritage Oaks Bank does not apply any principal with my payment June17, 2003

            Heritage Oaks Bank does not apply any principal with my payment July 22, 2003

            Heritage Oaks Bank does not apply any principal with my payment December 12, 2003

            Heritage Oaks Bank does not apply any principal with my payment February 13, 2004

            Heritage Oaks Bank does not apply any principal with my payment July 22, 2003

            Heritage Oaks Bank on April 16, 2004 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on June 1, 2004 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on June 15, 2004 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank does not apply any principal with my payment August 3, 2004?

            Heritage Oaks Bank on November 24, 2004 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on December 20, 2004 only applies the additional principal of $67.86 to my loan on December 21, 2004?

            Heritage Oaks Bank on December 31, 2004 only applies the additional principal of $67.86 to my loan on January 3, 2005?

            Heritage Oaks Bank does not apply any principal with my payment February 3, 2005?

            Heritage Oaks Bank on March 18, 2005 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank does not apply any principal with my payment April 25, 2005?

            Heritage Oaks Bank on May 20, 2005 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on June 24, 2005 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on 7/25/2005 does not show additional principal paid to loan or principal?

            Heritage Oaks Bank on 5/12/2006 does not show additional principal paid to loan or principal?

            Heritage Oaks Bank on 6/30/2006 does not show additional principal paid to loan or principal?

            Heritage Oaks Bank on 9/8/2006 does not show additional principal paid to loan or principal?

            Heritage Oaks Bank on 10/16/2006 does not show additional principal paid to loan or principal?

            Heritage Oaks Bank does not apply any of my payment of $2,232.14 on November 16, 2006 to my loan?

            Heritage Oaks Bank on November 16, 2006 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank on November 16, 2006 only applies the additional principal of $67.86 to my loan?

            Heritage Oaks Bank payment on 1/4/2007 does not show principal paid to loan?

            Heritage Oaks Bank payment on 5/22/2007 does not show additional principal paid to loan?

            Heritage Oaks Bank does not apply any principal with my payment May 24, 2007. Why?

            Heritage Oaks Bank does not apply any principal with my payment May 25, 2007. Why?

            Heritage Oaks Bank from June 8, 2007-December 28, 2007 began applying all of my payments to principal.

            Heritage Oaks Bank again on January 7 2008 applied all of my payment to principal.

            Heritage Oaks Bank on 3/28/08 does not show principal paid to loan?

            Heritage Oaks Bank on 5/5/08 does not show principal paid to loan?

            Heritage Oaks Bank on 5/27/08 does not show principal paid to loan?

            Heritage Oaks Bank on 7/2//08 does not show principal paid to loan?

            Heritage Oaks Bank on 7/31/08 does not show principal paid to loan?

            Heritage Oaks Bank on 9/4/08 does not show principal paid to loan?

            Heritage Oaks Bank on 9/29/08 does not show principal paid to loan?

            Heritage Oaks Bank on 10/15/08 does not show principal paid to loan?

            Heritage Oaks Bank on 11/28/08 does not show principal paid to loan?

            Heritage Oaks Bank on 1/2/09 does not show principal paid to loan?

            Heritage Oaks Bank on 2/5/09 does not show principal paid to loan?

            Heritage Oaks Bank on 5/1/2009 does not show additional principal of $73.22 paid to loan or principal? What happened to this money?

            Heritage Oaks Bank on 6/2/2009 does not show additional principal of $73.22 paid to loan or principal? What Happened to this Money?

            Natalie, Is this normal for Heritage Oaks Banks to keep this type of accounting for all of their Banking Customers? These mistakes by Heritage Oaks Bank may of had an impact as to the reasons why Greg Chilina stated: “ I sent information down to the SBA Loan Officer to have him review the current profile and he stated your loan would not be eligible for an SBA in-house refinance. The SBA apparently has strict rules about doing in house refinancing;”

            Are other Heritage Oaks Banking Customers having these types of problems in their loans with Heritage Oaks Bank?”

            Like or Dislike: Thumb up 3 Thumb down 1

  3. ————–Aloha, Heritage Oaks Bank!
    I Talked to Larry Ward yesterday at 1-805-369-5260 regarding Heritage Oaks Bank not applying principal paid to my loan #302730. Unfortunately he did not want to talk about the mistakes made by Heritage Oaks Bank in their “Loan Transaction History” that Heritage Oaks Bank provided to the FDIC!

    He did say that William Raver when he comes back from his vacation will contact me. This is a copy of Mr. Ravers E-Mail response in regards to when he will return!

    “From: William Raver [mailto:wraver@heritageoaksbank.com]
    Sent: Tuesday, April 06, 2010 10:19 AM
    To: XXXXXXXXXXXX
    Subject: Out of Office AutoReply: Transaction History

    I will be out of the office on vacation from March 29 through April 9, returning to the office on Monday, April 12. In the event of a robbery or other security emergency, please notify Donna Breuer and Chris Sands.

    If your matter is very urgent, please contact my excellent assistant, Karissa Nancolas, at (805) 369-5267, and she will direct you to the appropriate person.

    For compliance questions, contact Sarah Scott.
    If you have a BSA/CIP matter, contact Joan Lewis, Sara Smith , Megan Gray or Tara Avina.”—

    The FDIC and the Department Of Financial Institutions should be all over Heritage Oaks Bank and their actions. Currently Heritage Oaks Bank has been asked by the DFI # 26608 to answer questions in regards to their not applying Principal to their Principal and Interest Loans as seen in one of their “Loan Transaction Histories”

    Does anyone else have these type of problems with Heritage Oaks Bank in their Loan Transaction Histories? Heritage Oaks Bank now states that they are owed–$279,178.58 instead of what is seen in their “Loan Transaction History dated 7/15/2009 REGULAR PAYMENT
    $2,300.00
    $257,471.53

    6/29/2009
    REGULAR PAYMENT

    $2,300.00
    $259,771.53

    6/12/2009
    REGULAR PAYMENT

    $4,600.00
    $259,844.75

    6/3/2009
    REGULAR PAYMENT

    $2,300.00
    $260,137.63

    5/4/2009
    REGULAR PAYMENT

    $2,300.00
    $260,137.63

    Notice above that the principal does not drop, other then my additional principal payment per month!

    It amazes me that Heritage Oaks Bank would tell the Internal Revenue Service in my 1098 forms that they are owed $260,284.07 on 12/31/08 and then State to me on October 15, 2009 in writing, that they are owed $279,178.58. Is this normal for and FDIC insured Banks?

    Like or Dislike: Thumb up 17 Thumb down 5

    • cheseburger says:

      All be dammed if they don’t have the same secretary writing out the letters, this is exactly what Hurst sent out, even the dates are the same or close,”I will be out of the office on vacation from March 29 through April 9, returning to the office on Monday, April 12,”,,,, I believe, nightmare or what, they are going Bankrupt aren’t they? Check that out, compare it to the letter Jay Miller sent out right before they allegedly stole all the money and buried it under a volcano in Hawaii, with Gearhart’s shovel, Porter and the other creepy guy are right in there with em, these are Gearhart’s buddies, that is reason enough not to trust them and to pull all your monies the heck out of that allegedly corrupt bank, I know now that when it comes to money better safe then sorry,and sorry Heritage but with guys like Paul Deline telling me how much sympathy for the Hurst investors they have and in the same sentence, “We’re still going ahead with the sale of Vista Del Hombre.” It tends to give one a poor opinion of your business.

      Like or Dislike: Thumb up 5 Thumb down 3

      • ————–Cheseburger——This an E-Mail from Heritage Oaks Bank with my payments current and Heritage Oaks Banks actions in attempting to foreclose on a current loan. I do not understand how a FDIC insured Bank can act this way? To this day Heritage Oaks Bank has not provided an “analysis.” for their mistakes! Yes, Paul Deline is involved !

        “From: Greg J. Chilina [mailto:gchilina@heritageoaksbank.com]
        Sent: Tuesday, August 11, 2009 7:55 AM
        To: XXXXXXXXXX
        Subject: RE: RE:

        Mr. XXXXXXXXXX,

        After all has been said, let’s make a few things clear. First, the bank did not “refuse” to take your payment. I simply asked that we wait to post any payments to your loan until after I have completed my analysis. As a predicate of our conversations since late last week, I should have my review/analysis completed by Wednesday, this is an elevated time schedule as a result of your fervent request yesterday. The rationale for this is that we continue to apply payments to the system, it will only make my analysis more complicated. So, it is really important that you, as an intelligent person, understand the difference between “refusing” to take a payment and simply me asking for you to “wait” for a few days to accept/process any payments until my analysis is complete. My logic with this is that an extra few days will not cause further injury and it will not further complicate the matter. Please feel free to pull a cashier’s check from B of A in the amount of the payment that you would have made to the bank and hang onto it for a day or two, again, per our conversation.

        Second, it is important for you to know and truly realize that I am well on my way through the analysis. This is exactly in line with what we discussed last week and earlier this week. Please give me the courtesy I deserve to work on this project because if you extend to me that courtesy, I think you will find it is in the best interest of all parties associated with this loan. I know there is a history here that goes well beyond me but allowing me to do my job will allow quick resolution to this matter.

        Third, thank you for faxing the documents to me today. This will allow me to match up what I have on file for you and the loan and will allow me to ensure that my analysis is comprehensive.

        Fourth, I do not mean to light a fire under you when I say this but I have notice in all of your communications with the bank, you assert “mistakes” without any actual detail asserting what is wrong with the accounting. D you actually have an accounting which you are asserting proof of all of these “mistakes?” Please do not take this question in the wrong way. My reason for such a question is that if you have a spreadsheet of what you are asserting are all mistakes, I can match that up to what I am finding, not that I have currently found any mistakes, to further the breadth and depth of the analysis.

        Thank you for the information and I look forward to receiving the fax.

        Greg Chilina
        VP/Commercial Relationship Manager
        Heritage Oaks Bank
        545 Twelfth Street
        Paso Robles, California 93446
        805.369.5194
        Fax: 805.238.6257
        http://www.heritageoaksbank.com

        —–Yes Mr. Chilina I do have an accounting! It is the Heritage Oaks Bank “Loan Transaction History” that Heritage Oaks Bank provided to the FDIC!

        Like or Dislike: Thumb up 2 Thumb down 2

        • cheseburger says:

          Inverse thanks for the back up , I’m going to sue these jerks, following Steven Sanchez’s outline and at least make them pay legal fees for their part in the Hurst deal with Gearhart, probably couldn’t win but the judge will only judge this case one time, point being, I’ll have the best lawyers out there for me, if I have a complaint on file.
          I lost a boat load of money that I should not of been allowed to invest and if I had known of the reprint of Hurst’s lender/borrowers agreement, you see it didn’t have 99 ways to put the screws to you until they decided, premeditated to take investors money, and did it! D.A. watching the creek though, even got the eggs good work public servants, who tied your hands, Kevin McCarthy? Remember that clown the one Gearhart gave 1.5 million to for the Indian gaming Casino,”We have an assemblyman in our pocket”, and now he’s more then that, maybe that’s why there’s no arrest, to our public servants you can only drag your feet so long, then you have stubs. From the checks you cashed!

          Like or Dislike: Thumb up 4 Thumb down 1

          • cheseburger says:

            Almost forgot this and wanted to highlight on the contempt of these jerks,”I simply asked that we wait to post any payments to your loan until after I have completed my analysis.”
            MY ANALYSIS more like I’m an ANALIST, there trying to burn people, to much up revenue lost by fellow corrupt employees, in closing there going Bankrupt, and you my poor friend are in the midst of being scammed, don’t go down with out swinging, contact Karen V. at calcoast she can see by my post that I want you to have my contact info, I trust her, she has been a light at the end of a dark tunnel for me and many others.

            Like or Dislike: Thumb up 4 Thumb down 1

  4. Cindy says:

    Too bad Michael Moore has so much on his plate. This could be a fun one.

    Hot debate. What do you think? Thumb up 22 Thumb down 13

    • NorCoMod says:

      Michael Moore???

      From the looks of him, nothing stays on his plate for long.

      Reminds me of Jabba the Hut binging on the low hanging fruit!

      Like or Dislike: Thumb up 14 Thumb down 20

      • ApathyWillKillYou says:

        to NorCoMod

        It’s OFF the topic comments like yours that absolutely ruin the legitimate concerned comments that need to be expressed in this unique forum.

        Perhaps there is a third grade chat room on another site that would more thoroughly enjoy your immature rhetoric.

        Like or Dislike: Thumb up 8 Thumb down 9

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