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	<title>Cal Coast News&#187; Bankruptcy</title>
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	<link>http://calcoastnews.com</link>
	<description>We are San Luis Obispo County’s on-line independent news source producing in-depth investigative news in the public interest.</description>
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		<item>
		<title>Small-business bankruptcies rise 81 percent</title>
		<link>http://calcoastnews.com/2009/12/small-business-bankruptcies-rise-81-percent/</link>
		<comments>http://calcoastnews.com/2009/12/small-business-bankruptcies-rise-81-percent/#comments</comments>
		<pubDate>Tue, 22 Dec 2009 07:05:06 +0000</pubDate>
		<dc:creator>Dave</dc:creator>
				<category><![CDATA[Daily Briefs]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[California]]></category>

		<guid isPermaLink="false">http://calcoastnews.com/?p=3409</guid>
		<description><![CDATA[More grim economic news for the Golden State: The L.A. Times reports that small-business bankruptcies in California are up 81 percent for the 12 months ending Sept. 30, compared with the previous year. That compares to 44 percent for filings nationwide. The number reflects 19,000 individual businesses that have folded. Experts warn that the actual [...]]]></description>
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		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Former Estate Financial principal files bankruptcy</title>
		<link>http://calcoastnews.com/2009/12/former-estate-financial-principal-files-bankruptcy/</link>
		<comments>http://calcoastnews.com/2009/12/former-estate-financial-principal-files-bankruptcy/#comments</comments>
		<pubDate>Sun, 13 Dec 2009 01:06:48 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Daily Briefs]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>

		<guid isPermaLink="false">http://calcoastnews.com/?p=3076</guid>
		<description><![CDATA[Don Vaughn, the former owner of Estate Financial, Inc. (EFI) has filed for bankruptcy, is accused of defrauding investors through his hard money lending company, and is at risk of losing his contractor&#8217;s license for failing to pay a civil judgment. [Tribune] Vaughn sold EFI to Karen Guth and Charlie Applebaum in 1994. Vaughn than [...]]]></description>
		<wfw:commentRss>http://calcoastnews.com/2009/12/former-estate-financial-principal-files-bankruptcy/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Investor funds diverted to build go-cart track</title>
		<link>http://calcoastnews.com/2009/08/investor-funds-diverted-to-build-go-cart-track/</link>
		<comments>http://calcoastnews.com/2009/08/investor-funds-diverted-to-build-go-cart-track/#comments</comments>
		<pubDate>Tue, 25 Aug 2009 06:02:41 +0000</pubDate>
		<dc:creator>summer</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Templeton]]></category>

		<guid isPermaLink="false">http://69.65.63.95/?p=1928</guid>
		<description><![CDATA[By KAREN VELIE

A North County developer financed a go-cart track at his Templeton home by having the asphalt contractor change the work address so it would be covered by a group of Real Property Lenders’ (RPL) project investors, according to the contractor who did the work.

In 2005, Tony Gaspar contracted with Clint Osborne to do $39,873 worth of grading and paving work at his home on Climbing Tree Lane in Templeton. The five and a half acre estate includes tennis courts, a go-cart track, two fire pits, a custom pool with fountains, a separate guest house, and other amenities.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2009/08/investor-funds-diverted-to-build-go-cart-track/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Hertel and Fowler court ordered to appear</title>
		<link>http://calcoastnews.com/2009/06/hertel-and-fowler-court-ordered-to-appear/</link>
		<comments>http://calcoastnews.com/2009/06/hertel-and-fowler-court-ordered-to-appear/#comments</comments>
		<pubDate>Sun, 07 Jun 2009 18:35:55 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Court]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=1214</guid>
		<description><![CDATA[By KAREN VELIE

Following an emergency motion, a federal judge ordered R.W Hertel and Sons’ principles Ronald Hertel and Robert Fowler to appear in bankruptcy court or face possible arrest, according to the June 4 order.

U.S. Bankruptcy Judge Robin Riblet signed the order following an emergency and ex parte motion by court assigned trustee Sandra McBeth.

“Due to the many allegations of impropriety and the inability to obtain information, the appearance of the principles Fowler and Hertel, are absolutely necessary and time is of the essence,” McBeth says in her motion in which she also notes the “threat of actual removal or destruction of assets of this case.”]]></description>
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		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>U.S. Marshals seize Hertel and Fowler’s yacht, guns, and ammunition</title>
		<link>http://calcoastnews.com/2009/06/u-s-marshals-seize-hertel-and-fowlers-yacht-guns-and-ammunition/</link>
		<comments>http://calcoastnews.com/2009/06/u-s-marshals-seize-hertel-and-fowlers-yacht-guns-and-ammunition/#comments</comments>
		<pubDate>Mon, 01 Jun 2009 18:30:58 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[U.S. Marshal's]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=1209</guid>
		<description><![CDATA[By KAREN VELIE

Federal authorities seized bankrupt developers Ronald Hertel and Robert Fowler’s 2005 Bertram yacht including guns and ammunition, and a 1988 Broward yacht under purchase by Hertel earlier this year as part of an ongoing effort to recoup funds the financially troubled developers owe to lenders.

U.S. Marshal Adam Torres acted on a court order requested by City National Bank to pay off a $1.75 million mortgage the bank says Hertel and Fowler owe on the “Dram Buoy,” a Bertram yacht the developers registered in the Cayman Islands. Hertel and Fowler haven’t made monthly payments of $8,333 since November 2008.]]></description>
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		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Hertel and Fowler caught up in yet another scandal</title>
		<link>http://calcoastnews.com/2009/03/hertel-and-fowler-caught-up-in-yet-another-scandal/</link>
		<comments>http://calcoastnews.com/2009/03/hertel-and-fowler-caught-up-in-yet-another-scandal/#comments</comments>
		<pubDate>Fri, 06 Mar 2009 05:49:32 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Developer's]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=1117</guid>
		<description><![CDATA[By THE EDITORS

Securities and Exchange Commission investigators are probing California Assemblywoman Diane Harkey (R-Orange County), her husband Dan, and his hard-money lending company, Point Center Financial, regarding the Harkey’s relationship with R.W. Hertel and Sons.

The investigation is said to focus on Dan Harkey’s dealings with R.W Hertel and Sons, a company owned by Ronald Hertel and Robert Fowler, and the Burnett Development Company. Both companies donated to Diane Harkey’s campaign before receiving loans from Point Center. Each defaulted on their loans, which were subsequently found to have been massively overvalued. Thousands of investors have been left holding the bag and some are accusing Harkey of perpetrating a Ponzi scheme.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2009/03/hertel-and-fowler-caught-up-in-yet-another-scandal/feed/</wfw:commentRss>
		<slash:comments>4</slash:comments>
		</item>
		<item>
		<title>Gearhart files bankruptcy</title>
		<link>http://calcoastnews.com/2009/02/gearhart-files-bankruptcy/</link>
		<comments>http://calcoastnews.com/2009/02/gearhart-files-bankruptcy/#comments</comments>
		<pubDate>Fri, 13 Feb 2009 04:44:40 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Developer's]]></category>
		<category><![CDATA[Gearhart]]></category>
		<category><![CDATA[Hurst Financial Corp]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=1069</guid>
		<description><![CDATA[By KAREN VELIE

Kelly Gearhart, a North County developer with ties to hard money lender Hurst Financial, has filed for Chapter 7 bankruptcy protection in Ohio.

Gearhart and his wife, Tamara Lowe, filed the bankruptcy petition on Wednesday, stating $6.5 million in estimated assets and $45.1 million in estimated debts.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2009/02/gearhart-files-bankruptcy/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>EFI investor prospects dismal</title>
		<link>http://calcoastnews.com/2009/01/efi-investor-prospects-dismal/</link>
		<comments>http://calcoastnews.com/2009/01/efi-investor-prospects-dismal/#comments</comments>
		<pubDate>Wed, 28 Jan 2009 23:44:28 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=1054</guid>
		<description><![CDATA[By KAREN VELIE and DANIEL BLACKBURN

Investors in both the Estate Financial Mortgage Fund (EFMF) and Estate Financial Inc (EFI) received gloomy reports from trustees regarding recouping investments through the bankruptcy court. The bad news was contained in a letter sent to investors earlier this month.

EFMF investors appear to be in the least likely position to recoup investments, despite assurances from EFI boss Karen Guth to investors that their money was more secure in the mortgage fund. Guth was successful at getting her supporters to cash out of investments secured by first trust deeds in exchange for membership in her unsecured mortgage fund.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2009/01/efi-investor-prospects-dismal/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>Divorce allows peek between EFI&#8217;s sheets</title>
		<link>http://calcoastnews.com/2008/08/divorce-allows-peek-between-efis-sheets/</link>
		<comments>http://calcoastnews.com/2008/08/divorce-allows-peek-between-efis-sheets/#comments</comments>
		<pubDate>Sat, 16 Aug 2008 22:54:24 +0000</pubDate>
		<dc:creator>Daniel Blackburn,</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>
		<category><![CDATA[Paso Robles]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=873</guid>
		<description><![CDATA[By DANIEL BLACKBURN and KAREN VELIE

It took an acrimonious divorce and a protracted asset scrap to finally address the big question for investors in Paso Robles’ Estate Financial Inc.: Where did their money go?

Now, EFI principal Karen Guth has answered at least part of that question in the midst of her contentious court battle over marital assets with ex-husband and former partner, Charlie Applebaum. By her own admission, Guth utilized hundreds of thousands of dollars in investor money to capitalize her personal holdings.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2008/08/divorce-allows-peek-between-efis-sheets/feed/</wfw:commentRss>
		<slash:comments>20</slash:comments>
		</item>
		<item>
		<title>Judge ices EFI fund property sale proceeds</title>
		<link>http://calcoastnews.com/2008/08/judge-ices-efi-fund-property-sale-proceeds/</link>
		<comments>http://calcoastnews.com/2008/08/judge-ices-efi-fund-property-sale-proceeds/#comments</comments>
		<pubDate>Wed, 06 Aug 2008 21:38:26 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=866</guid>
		<description><![CDATA[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.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2008/08/judge-ices-efi-fund-property-sale-proceeds/feed/</wfw:commentRss>
		<slash:comments>22</slash:comments>
		</item>
		<item>
		<title>Night Moves: EFI files fund Chapter 11</title>
		<link>http://calcoastnews.com/2008/07/night-moves-efi-files-fund-chapter-11/</link>
		<comments>http://calcoastnews.com/2008/07/night-moves-efi-files-fund-chapter-11/#comments</comments>
		<pubDate>Sat, 05 Jul 2008 05:45:20 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=817</guid>
		<description><![CDATA[By KAREN VELIE and DANIEL BLACKBURN

Estate Financial Inc. (EFI) principals Karen Guth and Joshua Yaguda placed EFI’s Mortgage Fund LLC into voluntary Chapter 11 bankruptcy with a July 1 appearance in Santa Barbara’s Central District of California United States Bankruptcy Court. Their action puts the brakes on a state court-ordered evaluation.

During the past month, EFI officials have reportedly been spotted packing and moving boxes from their Paso Robles office at 806 9th Street, across from the city public safety building. Last Saturday, three days before Guth’s and Yaguda’s trip to the Santa Barbara courthouse and during dawn’s early hours, a black Mercedes and a dark Cadillac Escalade were parked on the street outside EFI’s private entrance while EFI personnel worked behind closed doors, an eyewitness said.]]></description>
		<wfw:commentRss>http://calcoastnews.com/2008/07/night-moves-efi-files-fund-chapter-11/feed/</wfw:commentRss>
		<slash:comments>21</slash:comments>
		</item>
		<item>
		<title>Update: EFI&#8217;s bankruptcy expectations</title>
		<link>http://calcoastnews.com/2008/06/update-efis-bankruptcy-expectations/</link>
		<comments>http://calcoastnews.com/2008/06/update-efis-bankruptcy-expectations/#comments</comments>
		<pubDate>Mon, 30 Jun 2008 06:33:40 +0000</pubDate>
		<dc:creator>Karen Velie</dc:creator>
				<category><![CDATA[Uncovered SLO]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[Estate Financial Inc.]]></category>

		<guid isPermaLink="false">http://174.132.77.9/~calcoast/?p=807</guid>
		<description><![CDATA[By KAREN VELIE

Estate Financial Inc. (EFI) will remain in bankruptcy for at least the next few months and at the same time independent evaluator Hanno Powell will continue his audit, the Fresno attorney said earlier this week.

A “complete evaluation” of EFI’s books was ordered during a June 16 San Luis Obispo Superior Court hearing. During that hearing, a group of investors requested the court appoint a receiver to oversee the company’s $170 million mortgage fund. A week later, the Department of Corporations, on behalf of the people of California, joined the plaintiffs in their request.
]]></description>
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		<slash:comments>27</slash:comments>
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