Paso Robles Pasolivo olive ranch sold

November 16, 2012

Pasolivo olive oil processing facility

A Newport Beach family has purchased the Pasolivo olive oil business and its surrounding 131 ranch in Paso Robles, with the proceeds slated to help pay the victims of hard money lenders Karen Guth and Joshua Yaguda. [Tribune]

Though the purchase price is currently undisclosed, in 2011, the 131 acre ranch including three standalone homes, a studio apartment with a garage, a barn, an olive oil tasting room, a processing facility, and 34 acres of olive trees was listed for sale at $3.2 million.

Estate Financial Inc. owners Guth and her son Yaguda defrauded more than 3,000 investors out of more than $300 million in a Ponzi scheme. The fraud was uncovered, the two were arrested, eventually plead guilty and the court ordered their personal assets sold to help reimburse their victims.

In September 2011, the San Luis Obispo County District Attorney’s office said it was close to finalizing a deal to sell the Pasolivo Ranch property and that the bidding was closed to new bidders. The proposed sale angered some investors and potential buyers who said the prosecutor’s office had approved a secret process that kept potential buyers from learning about the sale or bidding up the price of the property.

Deputy District Attorney Steve von Dohlen said he chose not to advertise the sale of the property because advertising would be costly for the investors. Instead, von Dohlen said, he and the receiver for the property chosen by the district attorney’s office, used e-mails and telephone calls to notify potential buyers.

However, California law requires openness in the sale of seized property including mailing letters to all interested parties and advertising in a paper of record.

Shortly after CalCoastNews uncovered the private sale, the proposed sale was stopped and the property was listed with Nancy McWhorter of Keller Williams Realty for $3.2 million.

Von Dohlen told the Tribune that once the remaining assets have been liquidated — including Guth’s portion of a Ninth Street office building in Paso Robles and personal property such as vehicles and household items— the money will be distributed to the victims.

 


16 Comments

  1. Jeanne Blackwell says:

    If the investors put in $300 million and the property was selling for 3.2 million why weren’t the investors given the option of purchasing the facility first with the money recovered from the sale of all the personal assets of Karen Guth and Joshua Yaguda? The investros were really the owners anyway weren’t they? At least the investors would now have a working facility in which to recover even more of their money in sales over time. And I am sure the courts could have assisted in a fair and equitable way in which the investors could have purchased the property as part of the recovery settlement.Just a thought.

    Like or Dislike: Thumb up 11 Thumb down 0

  2. rogerfreberg says:

    Congrats to CCN for publicizing this…

    I dare say we will not see much of this from the ‘investigative’ reporters of the dry paper media.

    Like or Dislike: Thumb up 11 Thumb down 0

  3. Jim says:

    What little information comes my way… comes from Cal Coast News… to date I have received approximately three percent of my “investment” in the mortgage fund at EFI… I am glad to read of the sale of this property… and like others… hope that some of my $$$ may be returned to me…

    Like or Dislike: Thumb up 11 Thumb down 0

  4. Mr. Holly says:

    FYI

    Asking price $3,200,000

    Reported sales price $3,155,294

    Like or Dislike: Thumb up 7 Thumb down 0

    • racket says:

      Thank you Mr. Holly. I am glad to know the transaction appears to be ” arm’s length.”

      I wonder if anyone around here has asked the Newport family whether they have any connection to the Guth/Yagudas.

      Like or Dislike: Thumb up 9 Thumb down 0

  5. MaryMalone says:

    Regardless of what the Newport family’s money is going for, the reality is this: the family is just one of the “Chinatown-esque” interests that–despite the condition of the groundwater basin–are snapping up parcels of acreage to establish claims to water rights.

    They are, in effect, establishing what amounts to mining claims for water.

    Whatever the family paid for the property, they will receive a many-fold return just from the sale of the water itself.

    Like or Dislike: Thumb up 2 Thumb down 19

    • OhHenry says:

      Wow, Mary , your comment is so far away from anything this story is about. It is not even a stretch. Your comment should be an opinion piece at best. Please re-read the story. It is about one piece of property that has finally been sold that investors will get at least something (albeit probably not very much) for their investment. That is all.

      Like or Dislike: Thumb up 20 Thumb down 1

    • Black_Copter_Pilot says:

      Your comment has qualified you for one free tin hat, compliments of BCP.

      What size hat do you require, Mary?

      Like or Dislike: Thumb up 15 Thumb down 0

      • racket says:

        Do you have a small one? I take my orders from my cat, and his judgement seems to be getting loopy. I wonder if the rays are getting him. T.I.A.

        Like or Dislike: Thumb up 1 Thumb down 2

    • BeenThereDoneThat says:

      Earth to Mary, come in Mary. Can you read me? This is reality calling.

      Like or Dislike: Thumb up 2 Thumb down 1

    • photocal says:

      Mary… after Your many pot shots about Paso Robles, and its news worthy citizens going to jail types… I think Your really right. The wine industry (and Olive ) are draing the area dry. Go out Hwy 46, or South on Hwy `101.. and miles and miles of new grape fields… where does their water come from.?….. We have rock garden yards for lack of water in the City. Yet……. every weekend theres another wine tasting event for some obscure, and little heard of charity.

      Like or Dislike: Thumb up 9 Thumb down 1

    • SuperDave says:

      Forget about it Mary, it’s Creston…

      Like or Dislike: Thumb up 2 Thumb down 0

  6. Cicero says:

    Without CalCoastNews shining a light on the closed door inside dealings of the receive, the victims in this case would have been victimized a second time.

    Like or Dislike: Thumb up 32 Thumb down 0

    • Black_Copter_Pilot says:

      CalCoastNews would serve the victims best by looking into the expense paid for by the investors for the liquidation and distribution of all the investment property involved.

      The beancounters and lawyers are making a killing while the victims get the crumbs

      Like or Dislike: Thumb up 21 Thumb down 0

      • OhHenry says:

        I agree with you BCP. I would assume that CCN is doing as you suggest which would go along with Cicero’s comment as well.

        Like or Dislike: Thumb up 13 Thumb down 0

Comments are closed.