Hurst’s lending practices under scrutiny

May 10, 2008

By KAREN VELIE and DANIEL BLACKBURN

Hard money lending schemes and questionable business practices have jeopardized hundreds of millions of dollars of investors’ money and placed several San Luis Obispo financial firms directly in the path of a sweeping probe by federal, state, and local investigative agencies.

Some lenders have closed up shop; others have simply ceased making interest payments on loans.

(See previous UncoveredSLO.com articles, “Fraud lawsuit filed against Gearhart, Hurst,” May 6, and “Gearhart’s $28 million Paso project imperiled,” April 29, on this site.)

Among the lending companies currently under scrutiny is Hurst Financial of Atascadero, owned and operated by Jay Hurst Miller. Hurst makes high-risk, generally short-term “bridge” loans to contractors. Investors, during good times, would receive 12 to 14 percent on their money in monthly interest payments, with their entire principal returned upon maturation of the loan.

Now, however, many of Hurst’s monthly interest payments on numerous construction projects have abruptly stopped, and investors are becoming increasingly concerned about the future of their funds.

Rita is a 65-year-old Cambria resident who suffers from multiple sclerosis and can no longer walk. Her husband placed the couple’s savings, $830,000, with Hurst Financial prior to his death from a long term illness, thinking he had guaranteed his wife’s financial security.

“I need 24-hour care,” Rita explained. “Without my interest and possibly my investment, I’m not going to be able to afford my caregivers and I will have to sell my house. I don’t know where I will end up. I am scared.”

According to Rita, Miller failed to return numerous calls she placed to him requesting information. In the midst of the financial turmoil, Miller took a 10-day trip to Hawaii.

“I am appalled that they would leave their business in the state it was in,” Rita added. “How do they dare go on a vacation? It shows they have no concern for their investors’ situations.”

Miller did not return phone calls and e-mails from reporters requesting comment.

Professionals with intimate knowledge of details of the unfolding venture disaster predict that local investors will be lucky to recover pennies on the dollar. UncoveredSLO.com interviewed numerous individual local investors, contractors, attorneys, law enforcement agencies, and lenders while preparing this article.

Hurst’s key player’s lifestyles were allegedly right out of the movies: fancy cars, gold jewelry, private jets, and high rolling excursions to Las Vegas. Investors allege Hurst and his associates used construction monies to live the high life, while paying interest from one account to fund another.

The pitch was alluring. Investments were supposedly secured by first trust deeds; had low loan to value ratios; and all monies were placed into secured accounts with a draw system – funds to be paid out only as construction work progresses.

Hurst assured investors they would be provided with copies of construction agreements on projects in which they were vested; Hurst failed to provide the documents, according to investors.

Numerous investors claim they were wooed with talk of accurate property appraisals, only to find out later that many projects had been given alleged inflated values. Hurst’s appraiser, Terry L. Pippin, is licensed only as a “certified residential” appraiser, licensed to appraise residential property from 1 to 4 units, each with a maximum market value of $250,000; or commercial properties valued at no more than $250,000. Investors report Pippin’s name has appeared as the appraiser of record on commercial projects valued at millions of dollars.

The firm also sold securities out-of-state, according to investors in Texas and Idaho. Generally, state regulations governing hard money lending require lenders to be licensed in the state where the investor resides.

Jim and Michele Mitchell live in Idaho. The retired couple has the bulk of their retirement funds, $638,000, invested with Hurst. The entire transaction occurred through the mail between Hurst’s Atascadero office and the Mitchell’s Idaho home.

“We made a trip [to California] to talk to Jay last month,” said Jim Mitchell. “We went to a couple of properties. There was no structure, nothing. It’s disturbing to me.”

Allan Beil, a 65-year-old retired Texas resident, also claimed Miller knew he was living out of state when he asked Bell to invest his retirement, $480,000, into Hurst construction loans.

“Jay absolutely knew I was living in Texas,” Beil said. “I think it’s going to be very hard for anyone to get money out of this. It took us 30 years to put that money together, and he just took it all. My wife and I are talking about going back to work. It’s an appalling thought to me. We worked to get to a point where we can retire comfortably. Everything I worked for is literally falling apart. They destroyed it. They stole the money. It is not about investment risk.”

Hurst maintains one-person offices in Arizona, Nevada, New Mexico, Oregon and Florida. Sales originating in each respective office generally must be made to qualified investors in that state only.

Yvonne Zamora, an investor with both Hurst and Estate Financial, took matters into her own hands when interest payments on her loans ceased last fall.

After checking with local law enforcement officials, Zamora began marching back and forth in front of Hurst’s Atascadero office, carrying a sign that read, “Hurst is the worst! Don’t Invest!” on one side and “Hurst is cursed! Don’t invest!” on the other side.

Within 45 minutes, Miller agreed to return Zamora’s investment. She was paid in full the following day.

Zamora proceeded to Estate Financial, another beleaguered hard money lender, where she picketed for three days to no avail with a sign that read “Meet your fate at Estate” on one side and “Burned at the stake by Estate” on the other.

Tags:, Estate financial, Gearhart, Hurst Financial, Paso Robles


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Stefan

By: Anonymous on 5/13/08

To Deeper and Deeper,

Go Shop at Wal-Mart in Paso Robles. The people of Atascadero have been lied to enough with all the hidden agenda's. There are stores that were willing to come to Atascadero. We were lied to. Best Buy was one of them, just ask Karen Velie who did a "little" investigating on the subject. Wal-Mart was and is all about another inside deal.

By: Anonymous on 5/13/08

To Insider,

I have lost all respect for you, You are no insider. Luna has been SCREAMING about these shanigans for years and has always voted against any development where there was "special interest" involved. You are blowing smoke and have again revealed yourself(for about the tenth time).

By: Anonymous on 5/13/08

Of course this is total heresay I admit. A subcontractor that used to do work for me would relate stories to me regarding the Hurst developers during BS sessions. I would laugh and not take much stock in it. He would tell me how Shannon, Gearhart, Graves and other developers that borrowed from Hurst would take of to vegas and gamble big dollars from what he felt were thier construction loans. He was allways having trouble collecting from these guys so when they would ask him why he wasn't gambling he would routinely respond that he was every time he worked for them. I would laugh with him. Apparently it was all true.

By: Anonymous on 5/13/08

I would imagine that George Luna and his "follower's and/or "cult" are thoroughly enjoying watching these developers go down the tubes. You must remember what they stand for.

Not to justify by any means what has gone on, the City of Atascadero is going to pay a severe price for this also. Who has done most of the commercial development in this town? As of now you can pretty much say that is over. Consequently there will probably be even more empty commercial buildings that will be tied up in litigation. Along with the commercial projects the housing developments that are not completed, not sold and that have never been started will more than likely be tied up in litigation also. Just another black mark for the City of Atascadero and unfortunately the majority of our City Council is probably enjoying this. But if you don't believe me just go to one of the Council meetings and listen to what a great job that they are doing for us. Pleasshow us what you have done.

By: Anonymous on 5/13/08

to deeper and deeper


What about Luna? George is the most senior member of the council. Certainly all these shenanigans couldn't of gone unnoticed by his artfull eye. He was there. He participated in every single act. If acts occured.

By: Anonymous on 5/13/08

COURAGE-What are you talking about. The City Manager, McKinney, has orchestrated the FBI-FEMA investigation by applying for fraudulent "loan" applications, and who knows what else they have done since they are not talking about the investigation and have finally "dumbed up" and don't know anything. just like we have been talking about in this blog. The FBI has been there and will be here soon. Mayor Brennler and the balance of the City Council have done nothing courageous except lead our City into the lowest sales tax revenue, deficeit spending, robbing the reserve accout, just like this blog.-

robbing Peter to pay Paul. The 2 factions are actually appear to act in tandem. Hurst is ripping off investors and your courageous city leaders are ripping us off. Both factions will fail. Another beautiful day in the mudhole. There are no winners just whiners.

By: Anonymous on 5/13/08

Remember, with out the courage of Mayor Brennler, the former council and City Manager would have had two additional years of going unchecked.


Just think about that for a minute.


Do not fear, the "Lone Wolf" is here and watching out for us.


Stefan

By: Anonymous on 5/13/08

projects + planning dept. + McKinney + Council (O'Malley) + Hurst = bad projects = financial failures


It's a vicious circle

By: Anonymous on 5/13/08

to Marylin and Deeper and Deeper


Perhaps you two should find a better format for your outright speculation. This site should be more directed to the bad loans made be Hurst Financial to Kelly Gearhart and others. This is not about your grand political conspiracy. Perhaps MarylintakesitDeeper.com

By: Anonymous on 5/13/08

Yes, Wade has a History of quid quo pro…. Shafter to Atascadero, he gave inside information and favors to several developers in exchange for Monies and some other things.


Jeff Hook left due to Wade's corruption and favors to builders. An example was about 2 years ago a Developer named El Jardin at Las Lomas dba Atascadero Ventures, LLC with Robert JS Fowler got caught in a Criminal Investigation. Illegal Toxic Dumping of Construction Dirt into the Salinas River. State Fish & Game Agent Tognazzini requested Criminal charges be filed against two builders Fowler being the worst violator with RW Hertel & Sons who is in reality Atascadero Ventures, LLC 5 Mile Bridge, El Jardin etc.. the DA being in bed declined and case closed. Wade covered for the builder on the lack of permits for cash into his accounts off shore.

By: Anonymous on 5/13/08

Why do you think the Treasury Dept. $$$$$$$$ was in town talking to Wade McKinney and Tom O'Malley and the rest of them? Like they say follow the money. I'm surprised that Mayor Mike Brennler isn't all over this. Maybe it's too big for hime to take on or he is trying to protect the culprits at city hall and any reputation that Atascadero has left.

By: Anonymous on 5/12/08

to Marylin:


You seem to know more than the City will admit in protecting their City Manager. What exactly do you and this Jeff Hook staffer know that makes you say McKinney is definitely a crook? I have heard rumors from inside city hall and from former Atascadero employees that something terrible is wrong at the management level. Do you think money or special favors were involved amongst Wade or other city officials and Gearhart or Hurst? Even a hint of this would be more than awful news.

By: Anonymous on 5/12/08

Broken Promise says: 'how do you find Powell?'

I assume you want to connect with someone who is doing something other than just talk. Murray is.

For you and others trying to make some sense of this you can e me some info and I'll put you in the loop with others agitating for progress.


rippedoffinvestor@yahoo.com.


check this out : http://www.dre.ca.gov/pdf_docs/re35.pdf

And read your loan documents, carefully. You will find oodles of protections for investors-IF the broker does his job. Of course he didn't, maybe never has.


Stefan

By: Anonymous on 5/12/08

To Marylin Says:


How can we find out if the crooks actually are insured?

By: Anonymous on 5/12/08

To Marylin Says:


Do I understand it right that these crooks can actually insure themselve for fraud?

By: Anonymous on 5/12/08

dewdog is here, not an acomplishn not an investor but just trying to help you folks out with info. Don't need all of the insulys.

By: Anonymous on 5/12/08

…So Ok. Can I ask an obvious albeit stupid question without incurring a barrage of personal assaults from insider? How does an investor go about getting their money back? I really don't want to go 'picket' outside the Hurst office if I can avoid it. How do you get ahold of Powell? I couldn't find him in the phone book. I'd like to know if there's a class action suit being organized by folks invested through Hurst. I'm not even sure what "project" my money is "in".

Sigh.

By: Anonymous on 5/12/08

rdog, poodle, dewdod, lapdog-who are all these dogs? All these hounds are diluting my gig, I am the true dog. the bearer of the torch, the holder of the flag, the dispenser of the truth.

Anyone know about Pippin, the appraiser? If he is not licensed to do commercial, larger projects we have a big issue with that.

By: Anonymous on 5/12/08

To answer all the questions as follows: Yes, the insurance companies and their investigations will never see the light of day it is protected and privileged. The insurance companies could loose lots of monies if there insured clients are sued and found guilty. The Insurance companies would have to pay big. So they are doing damage control now. The local DA Shea up in SLO has had a long $$ relation ship with several of the Firms and Developers. My Hubby would prefer i not say who since he is in a active Insurance Fraud investigation and the Local's in SLO are not to be trusted. Sorry, but he does say there are several mega million dollar suits now pending against several of the Developers and Investment scams mentioned in the blogs, hint !

By: Anonymous on 5/12/08

to rdog


my money says dewdog makes a living off of Gearhart. Realtor? maybe.

By: Anonymous on 5/12/08

ONCE AGAIN!


NOTHING FROM dewdog, poodle, lapdog. Could he possibly be an investor or accomplice?

By: Anonymous on 5/12/08

Marilyn,

It sounds like the insurance company is gathering info but that the perps are actually the ones who are insured. Does this mean that the insurance comapny will hold the investigative results confidential?

By: Anonymous on 5/12/08

Marylin,

How have insurance companies lost any money?


Also, spell out the connection between the DA and the real estate players you allude to.


Stefan

By: Anonymous on 5/12/08

Yes, the Feds are going to have a field day. Wade McKinney is deeper than you know ask his mother Sue or Dad Tom from Lake Isabella all were once involved in some Real Estate Scams, both are in Real Estate in the Kern River Valley Wade got in deep trouble in Shafter years ago and according to one of his former employee's Jeff Hook now working in City of SLO Wade is a crook. As I said earlier today the Insurance Fraud Investigators are indeed hot on the trail of these and many others in the Central Coast Realty Investment Fraud scam. Kelly, Little, Rossi, Habbick, Fowler and Ron Hertel.


Again Cookham Holdings, LLC SLO-HAAS, LLC Atascadero Ventures, LLC Woodlands Ventures, LLC HFL Express, LLC and so on, the big money has been secreted to VERDOT Group, LLC dba 5 Mile Bridge Winery. Watch the now 5 + Law Suits pending in San Luis obispo Courts and many others state wide and in Georgia, Florida, etc. Remember their are two of these con men who are major gamblers ( Lost Millions ) and have Race Horses as well as Expensive Cars hiding the ill gotten monies made from the elderly investors who are now getting screwed. The Local DA was suppose to go live on KVEC the Congalton show but declined once he learned some callers were going to ask him about his close relationship with many of these now cheating developers. People it all documented and the insurance companies are now going to protect there assets. The gambler is Ron Hertel of RW Hertel do a google search on them and the others.

By: Anonymous on 5/12/08

Yes, the Feds are going to have a field day. Wade McKinney is deeper than you know ask his mother Sue or Dad Tom from Lake Isabella all were once involved in some Real Estate Scams, both are in Real Estate in the Kern River Valley Wade got in deep trouble in Shafter years ago and according to one of his former employee's Jeff Hook now working in City of SLO Wade is a crook. As I said earlier today the Insurance Fraud Investigators are indeed hot on the trail of these and many others in the Central Coast Realty Investment Fraud scam. Kelly, Little, Rossi, Habbick, Fowler and Ron Hertel.


Again Cookham Holdings, LLC SLO-HAAS, LLC Atascadero Ventures, LLC Woodlands Ventures, LLC HFL Express, LLC and so on, the big money has been secreted to VERDOT Group, LLC dba 5 Mile Bridge Winery. Watch the now 5 + Law Suits pending in San Luis obispo Courts and many others state wide and in Georgia, Florida, etc. Remember their are two of these con men who are major gamblers ( Lost Millions ) and have Race Horses as well as Expensive Cars hiding the ill gotten monies made from the elderly investors who are now getting screwed. The Local DA was suppose to go live on KVEC the Congalton show but declined once he learned some callers were going to ask him about his close relationship with many of these now cheating developers. People it all documented and the insurance companies are now going to protect there assets.

By: Anonymous on 5/12/08

The Federal jusice system is gonna shred them boys mercilessly. The notion that they can hide assets is laughable.

By: Anonymous on 5/12/08

To Insider


Planning Department + Wade McKinney + Tom O'Malley + Gearhart = FBI & Treasury Department investigation. Ask them. It's not political, never mentioned Brennler or Beraud just the relationship between the above mentioned palyers. You should take it and run. It only cost the city $90,000 in legal fees.

By: Anonymous on 5/12/08

to insider:

thanks for the powell info.

have you talked with powell?

By: Anonymous on 5/12/08

to the deeper brothers


Here you go again. The "Smokey the Bear" Brennler and Ellen "The Turtle" Bereau Advocacy Group. Trying to turn any issue into a political thing. As much as I have ranted agains Gearhart and what he has done I must say I have rarely seen anyone at City Hall who agrees with much of what he does. They are usually forced to deal with him. Pandering, I don't think so. Save the politicing for the election. This is about retired people getting separated from thier life savings not your petty games.


Stefan

By: Anonymous on 5/12/08

ATTENTION Hurst investors:


Powell/Rios Gameplan = How You Get Paid.

By: Anonymous on 5/12/08

Deeper is going there. Ask Wade McKinney & Tom O'Malley about their interview with the FBI and Treasury Department $$$$$.

By: Anonymous on 5/11/08

Speaking of crooks, is it not a coincidence that so many of the higher ups at city hall have been pandering to Kelly Gearhart and his variety of LLC projects for years now? We have seen lots of favoritism ranging from those controlling the past City Council and Planning Commission to the ongoing accommodations within the Planning Department. I even heard Gearhart helped build the City Manager’s house. It sure seems strange to me and certainly could use a closer look at why he has received the affection of city officials for such a long time.

By: Anonymous on 5/11/08

Laura says

hot dog says

Ohhh well; I am not the same who knows nothing. I know more thanmost. Karen and urst and many others are crooks. They are goingdown fast. Its matterof time and not so much time as theywant to think. Too bad!!!!!!

By: Anonymous on 5/11/08

to new to site


Murray Powell is an investor who invested $500k between himself and a friend in a loan brokered by Hurst financial on a Kelly Gearhart Project. He is started a law suite against Kelly, & Jay Miller of Hurst and Jay's daughter. Apparently a 2 mil. dollar loan was made on a commercial project and when escrow closed instead of the money going into an account for construction disbursement it was all given to Gearhart at close of escrow. To date I think a year into the deal not a shovel of dirt has been turned and no one knows where the money is. You can read the article on UncoveredSLO.com. I think its about the third story from the top. Whats most interesting is Powell is the first person to go after Hurst, Gearhart, or Estate financial.

By: Anonymous on 5/11/08

to insider:

who is murray powell?

By: Anonymous on 5/11/08

Anonymous.

Why don't you go away? Your posts are bloated with nothing. If you have something of merit to say then say it.

I know (and can prove) many of the issues in the article are true. Of course the previous article has all the real juice and I would back that up too. Want to meet up somewhere and compare notes?

Didn't think so. Are you Kelly, Jay or just someone with nothing to do?

Back up your comments or beat it.

By: Anonymous on 5/11/08

Anonymous Poster. Tell us one single item that isn't true. Uncovered gets the facts and backs what they say with documentation. Guth won't speak to them because they ask the hard questions that Guth wont answer. The Trib on the other hand has printed continued mis-information and even helped Gearhart to bilk more investors. They don't have any real investigative reports and wouldn't tell the truth if they had it anyway.

By: Anonymous on 5/11/08

Anonymous says:


UncoveredSLO.com interviewed numerous individual local investors, contractors, attorneys, law enforcement agencies, and lenders while preparing this article.


YEAH OK… The tribune could never print an article like this becasue this is all crap. I listened the radio show where all these "facts" come from, This article is so biased and so filled with holes that all it is, is a blog. Please dont confuse this trash with journalism…


Obviously you know nothing. BTW how much did you get from EFI?


Stefan

By: Anonymous on 5/11/08

to Karen


Sorry for the long list. Just didn't want to exclude anyone that might be of help to the inocent untill proven guilty.

By: Anonymous on 5/11/08

to anonymous


Is it. Perhaps you could be specific as to whats not correct.

By: Anonymous on 5/11/08

UncoveredSLO.com interviewed numerous individual local investors, contractors, attorneys, law enforcement agencies, and lenders while preparing this article.


YEAH OK… The tribune could never print an article like this becasue this is all crap. I listened the radio show where all these "facts" come from, This article is so biased and so filled with holes that all it is, is a blog. Please dont confuse this trash with journalism…

By: Anonymous on 5/11/08

Nag, nag, nag.

By: Anonymous on 5/11/08

If you don’t like a post, rebut it. Please don’t attack the author. Also, when pasting from the net, please watch length.

By: Anonymous on 5/11/08

Check out this story of investor fraud in Oregon.

http://www.ktvz.com/Global/story.asp?S=8171123&nav=m...

By: Anonymous on 5/11/08

Thank you for the blog referral Mr. Insider and happy mother's day to everyone.


The Tribune will be running their Gearhart/Hurst story tomorrow – I can't wait to see their spin.


I just watched CNBC's American Greed show about the Baptist Foundation of Arizona. The similarities are striking and those guys weren't even stealing the funds. It took the feds almost 15 years to get it to trial, but now the ring leaders are doing time (8 years for fraud).


If you want to know where we are in the current economic time line – open your history book to 1928 – the part where the government is doing everything in their power to prevent recession.

By: Anonymous on 5/11/08

Insider, your post is too big, way. You could have taken out all the spaces and saved us real estate. You could have edited it small, could have offered something way smaller. Showing off?

By: Anonymous on 5/11/08

To Black Helicopter..

Hold onto the lithium and any other drugs you might possess. You need all that you can ingest.

By: Anonymous on 5/11/08

I'm uphauled that The Tribune would print such an article. They haven't done any research. They haven't mentioned that the projects aren't built and have been fully funded. They make it all sound like a waiting game. As if we should silently all wait 3-5 years until the market picks up and the Ponzi Scam can resume. Where else do they think a return on these investments is going to come from? EFI needs new management. Not a recievor but manamgement voted in by the investors. Take control of your investments.

By: Anonymous on 5/11/08

I will be handing out free lithium to those whose perscriptions have obviously ran out.


Stefan

By: Anonymous on 5/11/08

to Anonymous


Your Quote:

I'm deffinetly concerned about this hosing market and investment recovery.


Somebodies definately taking a hosing allright.


now Sloww Bear has something to thank me for someone saw his blog.

By: Anonymous on 5/11/08

Quote from Karen and Dans Article


After checking with local law enforcement officials, Zamora began marching back and forth in front of Hurst’s Atascadero office, carrying a sign that read, “Hurst is the worst! Don’t Invest!” on one side and “Hurst is cursed! Don’t invest!” on the other side.


Within 45 minutes, Miller agreed to return Zamora’s investment. She was paid in full the following day.


Insider


They try to intimidate you. You wait meekly for your money so as not to upset them. When will you learn that he who screams the loudest and draws the most attention will get theirs first. You are lucky for Murray Powell willing to file suite. Be assured they are scramblilng right now to get his money and when they call him to pick up his check he will. As he should. And what will going on the attack have gotten him? Answer his money back. The meek may inherit the earth but they wont get thier money back.

By: Anonymous on 5/11/08

If you think they covered Guth's but just wait until you see what they will do with Kelly Gearhart. They only did the EFI today to take a stand so that it won't be so obviuos when they start protecting Kelly.The Tribune will lie to everyone right up until the day Guth & Gearhart and a few others fo to prison for fraud and misapproriation of investor funds.

By: Anonymous on 5/11/08

We need to see to it that this is properly investigated and that all the facts come out. We can't have the Tribune continuing to encourage investors to wait it out, and even blaming them for making investments that they couldn't afford to lose. The Tribune is adding to the pain of the problem and protecting the high rollers. In the mean time whatever if left is going into the pockets of the crooks.

By: Anonymous on 5/11/08

I was just reading Slo Bears site. It's quite informative.

I'm deffinetly concerned about this hosing market and investment recovery. Check Ou

http://www.housingbubblecasualty.com/

By: Anonymous on 5/11/08

from Dan and Karen's Article


Rita is a 65-year-old Cambria resident who suffers from multiple sclerosis and can no longer walk. Her husband placed the couple’s savings, $830,000, with Hurst Financial prior to his death from a long term illness, thinking he had guaranteed his wife’s financial security.


“I need 24-hour care,” Rita explained. “Without my interest and possibly my investment, I’m not going to be able to afford my caregivers and I will have to sell my house. I don’t know where I will end up. I am scared.”


According to Rita, Miller failed to return numerous calls she placed to him requesting information. In the midst of the financial turmoil, Miller took a 10-day trip to Hawaii.


Stefan

By: Anonymous on 5/11/08

Rita is a 65-year-old Cambria resident who suffers from multiple sclerosis and can no longer walk. Her husband placed the couple’s savings, $830,000, with Hurst Financial prior to his death from a long term illness, thinking he had guaranteed his wife’s financial security.


“I need 24-hour care,” Rita explained. “Without my interest and possibly my investment, I’m not going to be able to afford my caregivers and I will have to sell my house. I don’t know where I will end up. I am scared.”


According to Rita, Miller failed to return numerous calls she placed to him requesting information. In the midst of the financial turmoil, Miller took a 10-day trip to Hawaii.

By: Anonymous on 5/11/08

to sorry to say


That goes to you too!!

By: Anonymous on 5/11/08

to reality


You sound exactly like that idiot that calls himself Sloww Bear. He has his own blog, you know, where a person like you, you know, one who has no empathy at all for the retired people who have been systematically been ripped off by these scoundrels. Why don't you join him he would love to discuss this with you. Drop dead.

By: Anonymous on 5/11/08

I'm not pleased to hear about Pippin's qualifications. This just keeps getting worse gor Hurst and his integrity.

By: Anonymous on 5/11/08

I want to thank Dan & Karen. I've been able to make some connections here and a dose of reality. I hope the Hurst investors start to organize as the EFI groups are doing. Its a long road ahead and we all know that if we wait we will lose. This isn't about the market it's about theft.

By: Anonymous on 5/11/08

Looks like the Tribune decided not to do a story for Kelly today. Instead they put a slant on EFI and made it sound like it's the market causing the problems. If they had done this with Kelly it would have been way too obvious what they were up to. Can't wait to see what they come up with next. Someone should picket that rag sheet.

By: Anonymous on 5/11/08

I'm absolutely amazed at how many people here seem to think that stupid investors are the problem here. Can anyone say "greedy, criminal exploiters?" Pickpockets have more integrity than these hard-money lenders. Prepare the prison blues!

By: Anonymous on 5/11/08

Anyone that puts their nes tegg into only one investment vehicle has to have their heads examined! Especially the retired folks.

What in God's name were they thinking?

If it sounds too good to be true it probablly is!

No responsible investment counselor would ever support such an single source investment. Never!

Hurst is either very slick or people with money are very stupid!

I don't have a huge nest egg but I protect it like a mother does her cub!

By: Anonymous on 5/11/08

That facts are clearly the facts. Very unfortunate to all of the investors/lenders. It's time to end all of the name calling etc. and just blog any new facts. Investors/lenders need to take these facts and proceed with whatever their next legal move may be.The name calling is really getting old.

Maybe uncoveredslo.com could give us something positive to blog.


Stefan

By: Anonymous on 5/11/08

12% interest for life, while the banks are paying 3%, while the stock market is stagnating. RISK what RISK, its worked in the past. Why wouldn't it work through every up and down turn in the economy? Forget about the fact that Builders are paying the high interest because they cant qualify for a 6 or 7% interest loan at a real bank, they're simply not strong enough and cant show the income a real bank requires. THIS ALONE SHOULD LET ANY INVESTOR KNOW HE'S IN THE REALM OF HIGH RISK INVESTMENTS. What builder wouldn't want a lower interest rate and fewer points to pay. In the best of times at least half the profit in a hard money loan goes to points, interest, reality fees, escrow, etc. Where do you think the profit or return on investment is going to come from during these worst of times?

By: Anonymous on 5/11/08

I just read the Tribunes story on EFI. What a slant. They make it sound like it's just a downturn in the market and that people shouldn't have broke the rules by investing more than they can afford to lose! That paper is just out of touch with reality. I wonder what they'll print when Guth goes to jail.

By: Anonymous on 5/11/08

Want to join up with others who share your concerns? Post your e or come to us:

rippedoffinvestor@yahoo.com

By: Anonymous on 5/11/08

It is amazing to witness the different slant put on this story by the Sunday Fibune. They just don't get the severity of this issue and make it sound like the lenders are to blame.

By: Anonymous on 5/11/08

Reminding you folks again, give to Uslo so they can continue to do this for us. See the top right of the page for a way to donate. They will maybe save us millions, can't you give them $100 or more to be even more effective?

I am not affiliated with them in any way, I just cherish a free press (almost gone in this country) and think we should all support it.


By: Anonymous on 5/11/08

I'll be happy to keep an eye on them for you. Just send them my way.I know what to do with these "molesters of the elderly".

By: Anonymous on 5/11/08

Cripe, ho bad is this going to get? Its so blatant. They got away with it for so long. There should be some check and balances like banks have to adhere to. These hard money lending groups need to have some oversite. Throw them in f**king jail and teach everybody to be more trustworthy. Doesn't anybody have any integrity anymore.

By: Anonymous on 5/11/08

Come on Say What and give Pippin a break. If he isn't license to appraise anything over 250 then 14 acres and a couple of porta-potties would seem like a whole lot to him. Besides he probably gets paid well and was so busy appraising that he didn't have time to upgrade his license.

By: Anonymous on 5/11/08

They absolutely believe that they can steal your money with complete impunity.

By: Anonymous on 5/11/08

I take it that Pippin is the appraisor of record on the $100 Million, 14 acre golf course by the airport. Great just Great


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