Banks on thin ice after risky loans to developer

May 17, 2008

By KAREN VELIE and DANIEL BLACKBURN

Bank loans which appear inadequately secured made to a well known North County developer — as well as an accompanying tangled web of loan transfers — may have created significant problems for some San Luis Obispo County banks.

Kelly Gearhart owns an 884-square-foot house on a small, oddly shaped Atascadero lot at 5120 Traffic Way. The property transferred several times between Gearhart family members before San Luis Trust Bank, in 2005 and 2006, lent Gearhart a total of $3,696,677 on the house. The property is worth approximately $250,000 in today’s market, according to real estate experts contacted by UncoveredSLO.com.

According to court records, the loans have not yet been repaid. Neither Gearhart nor bank officials returned calls and e-mails from reporters.

San Luis Trust Bank reported earnings of $1.03 million for the first quarter of 2008, down from $1.08 million for the same period in 2007. In a recent press release, bank officials boasted of their $3.4 million loss reserve fund.

However, due to a recent $1 million hit linked to the failure of Cameron Financial Group’s First Choice Mortgage, coupled with $3.7 million in what may be under-secured loans made to Gearhart, San Luis Trust Bank’s “cushion” is stretched thin during the current climate of economic uncertainty.

Federal authorities began keeping tabs on the fledgling bank not long after its inception in 1999.

Following a lengthy examination of San Luis Trust Bank, the U.S. Treasury’s Office of Thrift Supervision (OTS) determined the bank had engaged in unsafe and unsound acts and practices. The OTS and San Luis Trust Bank signed a 16-page agreement in May 2006, written to bring the struggling lender back into compliance.

Heritage Oaks Bank also has made arrangements with hard money lenders and their developers that appear to be overly-risky.

Heritage Oaks Bank loaned Gearhart $1 million on Jan. 16, 2008, on his 14-acre Vista Del Hombre project — located near the airport in Paso Robles — with a deed of trust to secure the indebtedness.

(Vista Del Hombre’s problems were detailed in an April 29 UncoveredSLO.com article.)

Gearhart has stopped interest payments to hundreds of private investors who put $27 million into the project through Hurst Financial in 2005 and 2007. Those investors, though, are positioned above Heritage Oaks Bank in case of a default.

Gearhart claims his Vista Del Hombre project is worth between $100 and $150 million. However, real estate experts contacted by UncoveredSLO.com estimate the property to have a value closer to $5 million.

That property now includes some infrastructure, a golf course, three temporary buildings, a group of Porta-potties, and a small trailer housing both a pro shop and a cafeteria.

A cursory search of Gearhart’s holdings could have alerted bank officials to his current financial standing. Of dozens of properties Gearhart owns throughout the county, many have intertwining title profile histories.

Between 1994 and 2003, a residence located at 6305 Alcantara Avenue in Atascadero was transferred nine times between different Gearhart family members. At various times, it was listed in his wife’s name, Tamara Gearhart. Then the property’s ownership transferred frequently, listed to either June or Raymond Knight, Gearhart’s relatives, according to a title report. Because of state regulations governing interfamily transfers, these exchanges cost Gearhart nothing.

On November 7, 2006, Gearhart deeded a residence on Encinal Avenue in Atascadero to his son, Jeremy Gearhart, at no cost. A month later, on December 8, 2006, Central Pacific Mortgage Company provided the junior Gearhart with a $250,000 loan on the property. Later that same day, the property was deeded back to Kelly Gearhart, according to the title profile history.

Anticipating a rash of bank closings nationally, the Federal Deposit Insurance Corp. recently announced plans to beef up staff by as much as 60 percent, according to the Wall Street Journal. The key concern is not residential lending, but commercial and construction loan concentrations at smaller, locally-owned banks.


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Stefan

By: Anonymous on 5/19/08

To Listener,

As an escrow officer of many years I can tell you that while it's true that the escrow company records the amount of a loan, THEY RECORD THE AMOUNT REPORTED TO THEM BY THE LENDER..

By: Anonymous on 5/19/08

What people are not getting is these are probably buisness loans that may list one specific property and have the right to all Gearhart assets. The problem is they are working off information provided by Gearhart outlining his entire financial profile with profit and loss statements and financial statements which should have been prepared by certfied accountant with numbers this big but were probably prepared by Gearhart himself. The point is the banks were not loaning on any one property but a buisness. I think this will be the flaw in Karens reporting, however in the end these loans may have been approved on fraudulent financial statements provided by Gearhart. Either way the bank is probably severly undersecured which supports the overall condition that the reporter has uncovered at uncoveredSLO. In other words if Gearhart has overstated the value of his assets to all lenders he deals with whether it is Hurst, San Luis Trust Bank, or even HOB then any loans these institutions have to Gearhart are possibly not worth the paper they are written on.

By: Anonymous on 5/19/08

I listened to The Dave Congalton Show on May 19, 2008. After the exec from the San Luis Trust Bank. It was asked who reports the amount of the loan and it was said the lender does… But actually it is the Escrow Company.

By: Anonymous on 5/19/08

I listened to The Dave Congalton Show on May 19, 2008. After the exec from the San Luis Trust Bank. It was asked who reports the amount of the loan and it was said the lender does… But actually it is the Escrow Company.

By: Anonymous on 5/19/08

This is a public appeal to the Gearhart Family. If you are reading this blog, and I know you are, please give us our money back. JAKE GEARHART: I know it was nice to get 1.5 million dollars for your 18th birthday but that was not your fathers money to give away. It belonged to people who believed in him and trusted him with their life savings. If you think you are 'set for life', think again. That blood money will haunt you in ways you never dreamed possible. Please do the right thing, Jake. Be a better man then your father and see to it that money goes back to the investors and keep yourself clean. You don't have to continue the dirty legacy of your father. Show your father he did do one thing right…he raised an honest man for a son.

TAMORA GEARHART: You are a woman of faith. Don't let your husband continue down his path of temptation. I know you don't want to visit him on weekends in prison, and have to make friends with the wives of other inmates. Help him do what's right by the investors. Do what you can to help get the money back to us. We'd like to send our kids to school and some of us are old and depended on that income. People will be mad at all the pain he has caused, but you can help him make it right rather then trying to hide all the money and assets so we're stuck with nothing. You know in your heart what you need to do.

TO THE REST OF THE GEARHART FAMILY: If Kelly has hidden properties or monies in your name, please don't be part of it. What goes around comes around and you, too, will pay dearly for it. Ask yourself if it's really worth going to jail/prison for receiving stolen property/goods, or being an accomplice in a multi-million dollar fraud. Get out now, do the right thing before it's too late. Wash the blood off your hands.

Thank you for reading this.

By: Anonymous on 5/19/08

insider says:


Oh well, that bank is toast. Atleast someone got the money. Now the bank can foreclose on the property. The loss ratio is about the same as EFI's. The difference between the bank's depositors and EFI is that FDIC will bail the bank out while Investors at EFI are fried.


Stefan

By: Anonymous on 5/19/08

Just plain thanks. It's a brave thing that you have done. Hopefully, this information will help in bringing Karen (and those who illegally supported her effort) down.

By: Anonymous on 5/19/08

The managers at San Luis Trust must really be pleased with the direction this blog has taken. Probably sitting back at having a couple and a nice lunch with Kelly Gearhart. Has everyone missed that the bank that only makes 1 mil. a year made a 3.6 million dollar loan to Gearhart with a 250 k piece of property as security. Thats the story not some bank account #'s at HOB.

By: Anonymous on 5/19/08

Where was Gloria when this all started? It appears that this has been a long term process. Gloria needed to report this to the proper authorities way long ago if she was aware of this. Why has she been hiding this information? Anyway you look at it Gloria will be the loser by violating the trust of the bank and by holding this information from the proper authorities.

Heitage Oaks Bank needs to address this issue ASP because if true it has breached any confidentiality that the bank has or had.

By: Anonymous on 5/19/08

whoisjohngalt says:


We are not talking about some inocent bystandards here. EFI caused many people's financial problems and all the ill that comes with it. Why shouldn't it be public knowledge? For a long time they were able to hide and now that things coming to light, why should they be able to keep hiding. Bring it on Gloria. You have done a great service to many.

By: Anonymous on 5/19/08

When was the last time you reported a supposed crime on a blog? There is local law enforcement, the DA, and investors that have posted e-mail addresses to share information. It was never necessary to post it here.


By: Anonymous on 5/19/08

Sure I'd report it – to the proper authorities. I like this blog, but I think it's irresponsible and unethical to use it to post other people's private, confidential financial information.

By: Anonymous on 5/19/08

whoisjohngalt says


When you see a robbery in progress, would you report it?

By: Anonymous on 5/19/08

Gloria should be fired immediately for revealing confidential information.

By: Anonymous on 5/19/08

King of the Gearhart blog


Who's got the last laugh now Gearhart lovers?

By: Anonymous on 5/19/08

uh, Incoming…


the money isn't from drugs or…it's already clean….he just can't/won't pay it back

By: Anonymous on 5/19/08

Has anyone actually thought of logging off of here and getting in front of these businesses with signs for the mass public to see? Sounds like a much better way to get the word out to me.


Stefan

By: Anonymous on 5/19/08


It's my understanding that Gearhart also has properties and developments with his brother in Ohio. Can anyone check on this? Probably another way he's laundering his money……

By: Anonymous on 5/19/08

I will be on Dave Congalton's radio show tonight at 5:05 p.m. to discuss this story. Tune into KVEC 920 AM or listen live at 920KVEC.com.

By: Anonymous on 5/19/08

If you want to get the word out on your great site then start a local & national issues blog! It's blogs today that bring in the people!

Do NOT rely on congalton! he will only send you his radical left socialists and trust me…you don't want them here!

Do it on your own!

Congalton can't even run his own blog. He has nothing for you!

Start a blog!

Grow your site

Bring in advertisers

Get paid help when possible!

The potential is huge!


Please re-think it! Your work is way to valuable to rely on "has beens" for a handful of radical loyals!

By: Anonymous on 5/19/08

To Kyle & Paul,

That was the other anonymous! There are always a few on the blogs. Unfortuately we have a few of our own. For the most part, the blogs are informaive. Karen & Dan let some of these people "do their foolish thing" because they have a "free speech, free press" policy.

By: Anonymous on 5/19/08

Kyle


welcome to the site. half the stuff posted here is fabricated. lot of lithium uses

By: Anonymous on 5/18/08

WOW! Gloria sure is a hard act to follow. Got more for us? I'll be checking in.

By: Anonymous on 5/18/08

Anyone want to hook up with others send a note:rippedoffinvestor@yahoo.com

By: Anonymous on 5/18/08

Kyle


Wellcome on the site

By: Anonymous on 5/18/08

Just heard about this site. I live in Atascadero and a lot of people don't know about you yet. Seems like it spreads by word of mouth or Congalton. Excellent source and the information in the bloggs is "mind blowing" to a newbie. These people have really been able to organize and get information out! I wish you could get more coverage. The other papers don't talk about you. Have you asked the A-News to do a story about you? This site is BIG NEWS.

By: Anonymous on 5/18/08

The song you wrote about insider over on the blog "Hurst, Gearhart drawing battle lines" is hysterical. I sang it to the Davy Crocket tune like you suggested. Speaking of the Davy Crocket tune, I guess for those of us who remember it, we are the old farts around here.


Stefan

By: Anonymous on 5/18/08

I have a couple of accounts at Heritage also. Both account numbers are 9 digits however the first 4 digits are the same on each account so based on what Bank Of Willey and SLO Bear state these may be real accounts I am just wary of this info.

By: Anonymous on 5/18/08

As an account holder at HOB, I can verify their account numbers only have 7 digits. Whether these are legit or not – I have no idea.


What I do know is these regional banks are certainly not too big to fail. Keep your balance under $100K and stay insured.


By: Anonymous on 5/18/08

to Cindy & Sobia


I'm not supprised you two jumped in the middle of this. You followed Comar of the cliff with his lies why not this. Stick with the story.

By: Anonymous on 5/18/08

To Insider,

Yes the bank routing # is the first nine digits. But the first 3 digits of the next string also represent the bank and account type. Those accounts from Gloria can be traced as Heritage Oaks Accounts. Also a 1000 hoax blogs can't get this site shut down. Its a B L O GGggg. The credibility lies within the reporting and thats what makes the site. The rest is gravy.

By: Anonymous on 5/18/08

The first nine digits are the routing number which is heritage oaks which are obviously not included here the second nine digits represent the account # which is what is supposedly posted. several of those numbers were 7 digits. I still think half of these blogs are set ups by someone who wants to get this site shut down. Kelly?

By: Anonymous on 5/18/08

The account #'s represent different types of accounts. The account #'s can be easily identified, because the first digits will all be representative of Heritage Oaks and the branch. Its the last digits that actually identify the account and its holder.

By: Anonymous on 5/18/08

Aren't bank account #'s usually 9 digits. How do you all not know this is somebody trying to get you all worked up on a hoax to discredit the site?

By: Anonymous on 5/18/08

Your "Right On" with your observations Todd. It appears someone is upset about some account #'s that might have their name attached to them. Insider is around again and up to his same old tactics trying to divert attention from the real issues. People are doing great at staying on track .Lets all keep it up.

By: Anonymous on 5/18/08

to sobia


You really are paranoid aren't you. If it doesn't say insider it's not me. Wait a minute maybe you're not paranoid. Maybe they are out to get you.

By: Anonymous on 5/18/08

Good Story,

I just read all the blog. Go going Gloria. Three Cheers. Sounds like there are some people here with something to hide ( just an observation). Looks like someone would love to distract everyones attention here also (another observation).

By: Anonymous on 5/18/08

This site is the best Sunday reading I found today. Not just the story but the blog is god reading too. Gloria sure to did it up a knotch! Its true that the Tribune isn't capeable of doing this sort of writing or investigations. Many people would still be in the dark without this site and the fact that Congalton picked up the stories and broadcast them. We all owe this site a lot. Thanks


Stefan

By: Anonymous on 5/18/08

To all bank employees:

Remember, for evil to survive, all that needs to be done is for good people to do nothing.

Thank you, Gloria.

By: Anonymous on 5/18/08

Yet another example of this website providing reporting that the Trib is utterly incapable of.

By: Anonymous on 5/18/08

Your support of Gloria is as equal with Wal Mart. Your tactics are equal to what the hard money lenders and developers have done by hiding. I think I would like to donate to OPM, to whom and where do I donate. I hope it's Heritage Oaks Bank and Gloria.

By: Anonymous on 5/18/08

I agree that Gloria is a Hero(Heroine). You have certainly gone out on the line to help the victims find some of their bilked funds. Keep the information coming if you can do it without getting caught. You may never work in a bank again if they catch you. If you have information that you can't pass to us on the blog without bringing attention to who you are then send it to Karen & Dan in a private e-mail. Good Luck and Thank You.

By: Anonymous on 5/18/08

Cindy says:


Please leave WAL MART off of this site.

By: Anonymous on 5/18/08

Gloria, I'm all for you! You are a hero in my eyes. If good people sit idle and watch bad go rampid, then the little guy will most certainly get screwed unless we all join forces. Gloria, keep helping us!

By: Anonymous on 5/18/08

Thanks, Gloria. I hope this information will help the FBI trace some of the investor monies that have disappeared from building projects through Estate Financial/Hurst. I appreciate all the help, from whatever source, that will get to the bottom of this debacle. It's information like this that could break this case wide open and I hope it does – the sooner the better.

By: Anonymous on 5/18/08

LOL. Good point Cindy.


On another note. I asked a number of law enforcement agencies, attorneys, and "important" people in the know that did not want to be identified by name..they all said that whenever you have information regarding a potential crime to "first" post all the information on uncoveredslo.com. They find is much more convenient that way ;) You people crack me up.

By: Anonymous on 5/18/08

WOW.. This is quite a story. The blog is pretty interesting too. There sure is a lot of information here. I seems to have credibility. The FBI probably is going to look into the account #'s that have been posted here and its important not to post things like that unless your certain. I believe that if the FBI wants to they can access a bloggers IP address through the host of the website. No one should run them around for nothing so lets try to keep this stuff truthful.

By: Anonymous on 5/18/08

Anyone who wants to know Oppose Wal-Marts Bank Account # should write them a check. When you receive the cancelled check back it will have their account # on it, silly.

By: Anonymous on 5/18/08

Thanks Gloria, I appreciate your help. I'll be contacting the FBI. We probably won't know much initially.

By: Anonymous on 5/18/08

OutAFewThousand: send me an e for info about a class action suit and other affairs.

rippedoffinvestor@yahoo.com


Stefan

By: Anonymous on 5/18/08


Ha! Speak of the Devil! Well, here we go again….end of this blog too! Nice going, Insider! I was just going to praise you for not sliming this blog like you have the other two. Have fun!

By: Anonymous on 5/18/08

Glad to see you back. Since you are not too concerned about confidentiality and/or corruption what is holding you back on providing us ithe numbers and account numbers for Oppose Wal Mart? Here your chance to show us if you have a backbone or just a gadabout.

By: Anonymous on 5/18/08


Is there any way to double check Gloria's information and find out if it's really true? Alot can be said on these blogs that's only meant to stir up trouble. It's scary not knowing what/who to trust and there's so many rumors flying. And can we please leave Wal-Mart out of this one?! Sheesh!

By: Anonymous on 5/18/08

Aaron, "to Cindy" hit it spot on. It is a matter of confidentiality and professionalism no matter who the customer is. There is a time and a place for everything. This format is fine to discuss the issues of the community and make contacts, but posting personal information is irresponsible. I don't bank at HO, don't work there, and have no affiliation with any of the businesses addressed here. That fact that you'd assume you know something about an anonymous poster shows the inherent flaw in this blog. Same with Cindy, she assumes that since someone points out the problems with Gloria's post that they do not have a problem with corruption. That couldn't be further from the truth.

If you have no problem with personal info then let me know who you are so I can be sure to NEVER hire you for my business.

By: Anonymous on 5/18/08

Totally agree on the confidentiality issue. I do not have a Heritage Oaks account, but if I did I would have serious concerns regarding with whom my personal financial data were being shared.


If the problems are all that they seem to be on this website, I would have a raft of other concerns as well.


Fortunately for me, both my nickels are buried in a jar in the back yard. My sympathy for those who have/had more to lose.

By: Anonymous on 5/18/08

to cindy says:


Confidentiality is the backbone of all bank. Confidentiality kept EFI's problem under the rug for so long. Someone insider with knowlwdge of EFI's action much earlier could have saved many families, investors, retirerees borrowers the grief they experiencing now. Without whistle blowers, much dirt can be hidden until its too late.

By: Anonymous on 5/18/08

Confidentiality is the backbone of a bank. If you can't trust your bank with your financial information they are not worth anything. If there is corruption within a bank there is a proper way to get that information to the proper authority. This blog is not that avenue. I'm sure you wouldn't want me or anyone else privy to your private finances on this blog. Maybe it would be ok for Oppose Wal Mart, that wouldn't even be acceptable. Gloria is way out of line putting that info on this blog.

By: Anonymous on 5/18/08

Whom ever wants to see Gloria terminated from her position has something to hide, big time.. Whats the matter did one of the bloggers recpognise their account #(s) posted here? If you did get worried because the FBI reads this site.


Stefan

By: Anonymous on 5/18/08

I find it so interesting that someone would threaten to leave Heritage Oaks Bank over confidentiality ( a few account #’s thrown around that apparently contain bilked investors money) but doesn’t seem to have a problem with the corruption!

By: Anonymous on 5/18/08

Once the HO info was posted here the FBI knew about it.

Gloria, You have done nothing wrong and whomever owns those accts and has the Tax ID# is probably having a very bad time right now. I suspect a few bank officers are worried too. Don't let anyone threaten you.

By: Anonymous on 5/18/08

Yikes says:


Last year, one of the investor (Mike?) placed an ad in the local paper questioning his problems with EFI. His reward was a nasty letter from Karen's attorney. Look what happened since than.

Gloria, please contact the FBI.

By: Anonymous on 5/18/08

Yikes says:


Maybe, Glori is doing a favor to all investors and clients at the bank. What if, what if, its true. There maybe more under the rug?

She should contact the FBI at the Santa Rosa branch and talk to Otto Vince. Maybe the bleeding stops sooner. If EFI's problems were revealed a year ago or two three, there would no need for this site. get it?

By: Anonymous on 5/18/08

Wow. Ditto that last comment. The lack of confidentiality is pretty shocking. If that info is true then I hope the employee responsible gets sacked. You should be sharing that info with the proper authorities, not every "internet warrior" on this blog. I think you achieved nothing here but possibly hurting "all" those employed by HO.

By: Anonymous on 5/18/08

Some pretty serious allegations here. Unfortunately for those of us that do our banking at Heritage Oaks it appears that there is no confidentiality. If Gloria does work for Heritage Oaks bank this is not where you would divulge private confidential information irregardless of who or what it is. The bank needs toe respond to this asp or I'm gone.

By: Anonymous on 5/18/08

To 'Lost a Few Thousand'

Write to rippedoffinvestor@yahoo.com They are trying to organize things. I did and have gotten a response back already

By: Anonymous on 5/18/08

Gloria says:


Your all on the right track, but the monies are moving faster than you Know. Here at Heritage Oaks are some of the secret accounts #'s 117XX, 329XX ($2,700,941.25) 7075XXX, 7073XXX, 285496XXX, 7406XXX, 7074XXX and the list goes on and on and on not to mention other financial and banking firms. SLO-HAAS, LLC and Atascadero Ventures, LLC are two of many fronts for developers to open and hide illegal monies and launder assets. Federal Tax ID # 77-0582XXX keep in mind some banking officials have gotten some kick backs to conceal real owners of accounts and conceal monies from all of these joint scams, your correct it is a PONZI CON.


By: Anonymous on 5/18/08

Does anyone know who to contact to get in on the class action law suit against Hurst and Gearhart? I am one of the people loosing money. Also, Gearhart is not the only developer who has not been paying for the money borrowed through Hurst.

By: Anonymous on 5/18/08

sobia


Well, isn't it time to short Herite Oaks Bank and SLTB stocks heavy. The fall is inevitable.


Stefan

By: Anonymous on 5/18/08

I didn't think the corruption extended this far. It makes no sense for a bank to lend 3.7 million against 250K collateral. I wonder if they had some kind of agreement that secured the loan with other properties? This is all so blatantly obsured! Alot of good their private agreement(if there was one) is going to do now.

By: Anonymous on 5/18/08

This is the kind of thing that causes folks to panic and pull all their money out of their bank which could REALLY hasten the depression/recession. I can't help but think that some of these banks were sorta "in on it" as well…an awful lot of strings have been being pulled here and there and I can't help but think these people were all 'thick as thieves'. Of course, there's 'no honor among thieves', so if one goes, it will surely pull the others with it.

What a mess!

By: Anonymous on 5/18/08

Having worked as a Correctional Officer at

CMC years ago,

I know better than to

"MAN UP."


NOT GUILTY is the only plea

you'll get out of me !

By: Anonymous on 5/18/08

What kind of insurance do banks have to defend themselves for making unsecured loans to Karen and Kelley? Has anyone gone to the SLO County Clerks office website to research recent filings by "Estate Finl Inc"? There is a flurry of activity here. From April 1 through 5/9 (the most recent update by the County Clerks office), there have been a total of twenty Assignments of Deeds of Trust by Estate Finl Inc to Heritage Oaks Bank and First Regional Bank. There is a much bigger story here. Thanks to Karen and Dan for uncovering it. We certainly can't rely on the local paper. I expect that soon this will be reported in the media statewide. Many more will be caught in their web of deceit.

By: Anonymous on 5/18/08

Kelly will not "man up" because he knows he can stay out of prison far longer of he doesn't…

But in the end (no pun intended) Kelly will get what he has coming!

By: Anonymous on 5/18/08

This sure beats the Sunday Trib for reading enjoyment!

By: Anonymous on 5/18/08

And with ironic timing for this story, the Federal Reserve has just advised banks to beef up their capitalizaton (their "cushion"). Big banks have been able to do this in various ways, but I wonder what options small banks like these have, other than offering free checking to anyone who opens a CD with more than $500.


I guess it's no surprise that local banks were as reckless in property lending as the big guys, and you wonder how widespread this was across the country. Depositors don't need to worry, but these banks are definitely not "too big to fail."

By: Anonymous on 5/18/08

Wow….it just keeps getting better doesn't it.


Can't say that I am surprised that Kelly would pull stuff like this (who transfers the title to their personal real estate like this without an agenda?) but it is curious the banks fell for his game too.


It's going to take some time but I do believe he's not going to be able to get away with the "awww shucks" routine too much longer.


Maybe it's time for Kelly to "Man Up" as he is so fond of telling others to do and do right by those he has intentionally harmed/scammed


Stefan

By: Anonymous on 5/18/08

Good Luck bro.

By: Anonymous on 5/17/08

IT'S OVER PAL! YOU ARE ALL WASHED UP. SEND UP THE WHITE FLAG AND GET READY FOR PRISON SON.

THE PAIN OF THOSE YOU HURT WILL BE VISITED ON THE GENERATIONS OF GEARHARTS FOR DECADES. HAPPY NOW?

By: Anonymous on 5/17/08

I'm still in shock at this one. I don't know the people at San Luis Trust Bank but I can not believe Heritage Oaks loaned to someone in this financial position unless they were provided financial statements and evidence of someone on solid financial ground. We all know now that looks very unlikely and I assume the people at both institutions need to take a very serious look at those applications in order to maintain the faith of thier customers.

By: Anonymous on 5/17/08

Kelly you got some splaining to do here.

By: Anonymous on 5/17/08

Valuation of this project seems like EFI's appraisal on its LLC's it has such a deep conflict of intere with.

By: Anonymous on 5/17/08

let's be courteous says:


actually, let everyone speak their mind. PC has no placein here. Keep expressing yourself better than acting on your emotions

By: Anonymous on 5/17/08

Well?

By: Anonymous on 5/17/08

Everyone should agree to post fact and comments and keep the filth to themselves. Otherwise this blog will stall.The last comment is not necessary in those words.

By: Anonymous on 5/17/08

Hurst is disgusting, but Gearhart is some big fat coward like maggot, looking to milk everyone dry.

By: Anonymous on 5/17/08

Nice job on the title and loan research. Some people will unfortunately learn the hard way that financial leverage only works in expanding markets. Free capital markets do not only expand, therefore financial leverage is not always good. Gearhart represents perfectly a flawed financial mental illness…greed. How many individuals and groups of individuals will suffer as a result?

By: Anonymous on 5/17/08

Anyone surprised? Many of the top execs at locally owned banks were drinking the real estate kool-aide over the past 7 years. They all knew real estate values only go up – right?


Now, a lot of folks are going to realize debt does not equal wealth.


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