INSIDE EFI: Under The Microscope

May 4, 2008

Part 3: The good times are gone

(Editors’ note: This is the third and final article in a series examining the high-rolling, multi-million-dollar Paso Robles financial lender, EFI, and its current problems.)

By DANIEL BLACKBURN

One of the down sides of divorce is its very public nature, proceedings often revealing things about people they’d rather keep secret.

Had it not been for the bitter 2004 divorce of Guth and Charles Applebaum, then co-owners of Paso Robles’ Estate Financial Inc. (EFI) and Republic Properties, much regarding their businesses probably never would have found its way into the public domain. And if legions of investors were not today concerned about money they’ve invested with EFI, details of the pair’s divorce would have interested few.

But now the once high-flying North County hard money lending firm — bending under pressure from simultaneous federal, state and local investigations — is more exposed today than ever before. Complaints have been raised about the firm’s practices and investors have voiced concerns about conflicts of interest, mismanagement, and improper use of EFI’s mortgage fund. Investors have gathered by the hundreds in a series of meetings all over San Luis Obispo County seeking ways to recover monies that had been entrusted to EFI. Last week, the state Department of Corporations lifted EFI’s permit to sell off any of its real estate investments while the agency probes dozens of formal complaints.

EFI is in the business of making construction loans, charging high interest and – when times are good – paying high dividends to investors. When the real estate market began souring, Guth told investors that EFI’s slide was temporary, that it was just a result of the market downturn. But when investors had more questions than answers, the EFI story began to unravel.

Much of EFI’s present quagmire can be traced to Guth’s and Applebaum’s divorce, and to the couple’s increasingly hostile court confrontations over division of their personal assets… battles which continue even today.

Court documents spanning four years show that Applebaum’s departure had several immediate effects: Guth cranked up the sales and marketing machine, and EFI stopped paying much attention to construction projects in progress. In the years immediately following Applebaum’s departure, Guth and her new partner, son Joshua Yaguda, began concentrating almost exclusively on attracting new investors and making new loans.

After all, that was how they got paid: for each dollar that went out in a loan to a building contractor, EFI took one to three percent right off the top. There was more motivation to loan, less to maintain any semblance of quality control of any project.

The increased effort bore fruit. In a little more than 12 months after Applebaum left the firm, Guth and Yaguda had increased EFI’s mortgage portfolio from $95 million to $135 million.

Guth was hitting her stride in a very fertile real estate marketplace. “Fundamentally, I am a saleswoman,” she said in court documents describing the separate professional functions of the feuding couple.

In those 1994 documents, Guth explained why she thought additional business was accruing to EFI after Applebaum’s departure:

“We maintain excellent lender records and notes to ensure investors get whatever special attention they require,” she avowed. “Overwhelmingly, the reason new investors seek us out is because they have been told that when you call EFI you can always talk to Karen or Josh. Secondarily, EFI’s excellent reputation for protecting their investors, providing a continuous stream of loans for them to invest in, and the level of explanation, disclosure and attention they receive from us.”

Applebaum, on the other hand, said he didn’t think EFI’s expanding portfolio was attributable to Guth’s “expertise and personal effort,” but to the simple fact that “demand for capital in the construction market and the ability to pay ten percent when banks are paying one percent.”

And the big numbers Guth and Yaguda were putting up were misleading, he testified: “As of Nov. 28, 2007, of some approximate $172,687,619.32 in construction loans (assets) only $36,160,142.99 was invested in current, performing funds… (thus) “it is clear that only 21 percent of the entire mortgage fund portfolio is current and performing.”

Early in the property division fight, Applebaum sought financial information on one of the couple’s companies, Republic Properties. When EFI would make a bad loan, Guth would transfer it into Republic Properties, he told the court, because “she wishes to use all the cash flow from these investments… to pay interest into EFI.”

Information he sought, including the status of construction projects, was not provided, he reported.

Because Guth was at the time claiming that monthly debt service was costing EFI $107,106, Applebaum said he believed the bad debt portfolio carried by Republic Properties exceeded $12 million three years ago.

In what may turn out to be a fateful commentary, Applebaum hypothesized on Guth’s use of Republic Properties: “The real reason that EFI has had to transfer ‘bad loans’ to Republic for workout is that (Guth) decided to advance certain funds which were invested by investors in one project, to the builder for use on another project. This action is clearly inappropriate. I do not trust (Guth’s) judgment in this or other ways .”

Applebaum described one circumstance involving an office building in Paso Robles, referred to by Applebaum as the “9th Street Project,” which became a particular focus of attention during the property division hearings.

In what she termed an “update” of Republic after her separation from Applebaum, Guth sought $250,000 to finish the 9th Street project, which now serves as the company’s home office.

“I am certain,” he alleged in sworn testimony, “that (Guth) has unilaterally removed sums from the investment account without prior notice or consent and spent them in various ways that she has determined are ‘joint’ expenses.'” He also claimed that Guth “has certainly misappropriated the nearly one half million dollars we placed in the (9th Street project) investment account in October 2003.”

He claimed that the $900,000 construction fund for the 9th Street Project was spent by Guth “prior to putting a shovel in the ground.”

The travails articulated by Applebaum, ironically, echo many of EFI’s investors. Some have expressed concern that Guth has moved investment funds around from project to project in what might be a violation of contractual agreements. Still others hint at fraud.

The good days may be gone for EFI. Many of Guth’s personal assets have been liquidated to satisfy liens, judgments and other payouts. On last Valentine’s Day, the county sheriff delivered an order for Guth to sell her Paso Robles ranch, valued at between $2.5 million and $3 million, to pay the remaining debt to Applebaum and two banks. Sources have told UncoveredSLO.com that just last week Guth was busily attempting to raise capital or trade property to cover the Applebaum obligation, hoping to avoid selling the ranch.

And last but not least, her personal income is evaporating. Guth reported a $2.8 million taxable income in 2005. One year later, that had shrunk to only $1.4 million.

Tags:, Applebaum, EFI, Estate Financial, fraud, Guth, paso robles


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Stefan

By: Anonymous on 5/10/08

to K in Paso and everyone else,


Those are good qeustions, K. I agree that a meeting should be called and it is our right. I think that a meeting will be good place to get some questions answered. I gree with Ready to listen. What have we got to lose? I know I can't lose much more because I've already lost it all. This a good opportunity for us to get together to see what our options are and to hear about what is going on with Estate Financial from someone who has been looking into her business. I think we should call a meeting and hope that there are at least 10% of us who do. Listening won't cost us anything and will give us a chance to ask questions like K has.

By: Anonymous on 5/10/08

K IN PASO:

GREAT QUESTIONS, GO THE THE FREE MEETING AND ASK ROGER. WHAT DO HAVE TO LOOSE? WE ARE ALL IN THIS TOGETHER. ALSO READ (MONTEREY COUNTY) "THE HERALD" ARTICLE POSTED BY "READY TO LISTEN"

By: Anonymous on 5/10/08

For your information those foreclosures will be right back in Karens hands the day of the foreclosure. Since Karen is the managing partner of the fund and since from what I hear the fund owns 51% of everything on paper anyway the property provided no one steps up with the cash will revert to Estate with Karen as the Manager of the fund. If someone accutally arrives with the cash it will also go to Estate to be distributed to the partners after fees. Karens fees of course.

By: Anonymous on 5/10/08

K in Paso:


YOUR QUESTIONS:

1) If a new manager is voted in for the fund what about the poison pill? As I read my agreement, if we vote out the manager we could be responsible to pay the outgoing manager for un-reimbursed expenses… that is what I am calling the Poison Pill.


2) If we vote out the fund manager what about the other side… the individual investments? Wouldn't all those individual investors have to take majority control of those projects at the same time?


RIGHT ON. And these are two questions that Karen will never answer. Only by attending the free meeting will we ever know the truth. Yes, we cold wait for the justice system to take its course, but justice moves at a snails pace. We all know that.


Isn't it time we take things into our own hands and manage our own money. Karen as certainly not doing an honest job. I know I could have done better.


See you at the meeting

By: Anonymous on 5/10/08

Fellow Investors:


See posting below by me.


Correction: website is –


http://origin.montereyherald.com/realestatenews/c


(not htpp as I wrote in my previous comment.


Stefan

By: Anonymous on 5/10/08

to Paso Guy


I totally agree, we need to know our options and their associated costs, and I agree that some of the posts here may not be the most helpful, but this is the nature of a public forum.


But, I would like to address some of your points about the letter and it's contents.


I didn't receive any "letter of intent", it was only a form for fund investors to indicate their desire to call a meeting of the members – our right to do so according to our agreement with Estate Financial. To call a meeting of the membership there needs to be 10% of the members requesting such a meeting. That is all this form is, a vehicle to exercise our right and to make that wish known. Perhaps you are not invested in the Fund as I am and therefore received a different letter.


As to the lawyers "main source of information" being this blog, they were only citing this blog as one of three places investors could go to for information about what is going on. The other two sources of information listed in the letter is the San Luis Obispo Tribune website and the California Department of Corporation's website.


Here is the link given in the letter to the CDC Enforcement Actions, Desist & Refrain Orders website page:


http://www.corp.ca.gov/ENF/list/e/estateFinancial


…now having said all that, what ever course of action we take there are going to be costs and I agree we need to find out what those costs are.


I would like to post some of my questions and concerns that I am eager to bring to the membership meeting…


1) If a new manager is voted in for the fund what about the poison pill? As I read my agreement, if we vote out the manager we could be responsible to pay the outgoing manager for un-reimbursed expenses… that is what I am calling the Poison Pill.


2) If we vote out the fund manager what about the other side… the individual investments? Wouldn't all those individual investors have to take majority control of those projects at the same time?


Those are some of the questions that cause me to wonder if we should we take action now or wait for the wheels of justice to turn?


Let's continue work together to bring good, productive, quality posts to this blog – we both have a lot a stake, our financial future. We are both on the same team, we just need to keep talking so we can figure out what the next move should be.


Stefan

By: Anonymous on 5/10/08

Fellow Investors:

If you received the letter from Roger Frederickson regarding the calling of a meeting of investors in the Mortgage Fund, please sign the form and return it. If you read the letter, it clearly states that there is no charge for the meeting and that he intends to provide information (which certainly has not been forthcoming from Karen) and present options for protecting Fund assets and maximizing the return on your Fund investment. So, I ask you, what have you got to lose? A free meeting, presented by the biggest law firm in San Luis Obispo, which has been investigating Estate Financial (along with state and federal agencies) since February? WAKE UP! If Karen were operating a legitimate business and looking after our interests as she was paid to do, there certainly wouldn't be all this interest in her company. Replacing her as MANAGER of the fund may be our only salvation. We should do it before she goes belly-up or and the court appoints a RECEIVER. A MANAGER would do what Karen has failed to do -provide information to investors, provide accountings and be accountable to investor questions (as opposed to Karen, who hangs up when she doesn't like your questions) records, and make decisions based upon on what is best for us – not for Karen and her own affiliated companies. If you're interested in what is happening to a Monterey County hard money lender who employed many of the same business practices as Karen, and who also got his permit suspended by the Department of Corporations last week,go to:

htpp://origin.montereyherald.com/realestatenews/ci9167623


and scroll down to "most viewed" and click on "Cedar Funding sued to block sale". This is just one of several articles that have been recently written about this lender. Substitute "Estate Financial" for "Cedar Funding" and see if the shoe fits. Please, don't sit home waiting for Karen to take care of your investments. She hasn't and won't. Roger Frederickson and his law firm may very well be our last best hope. And if you want to know "their definite plan" as Paso Guy (and all of do), sign the form so a meeting can be called, come to the meeting and find out!

By: Anonymous on 5/10/08

Before you all run off and sign the letter of intent, you might want to call the layers office and ask what their definite plan is and how much it will cost you.


The fact that the letter refers to this blog as their main source of info is scary. So much of what is posted here is purebullshit….maybe this included.

By: Anonymous on 5/10/08

To grateful and all: You are right! Have any of you seen the books that Karen says you have the right to view? If so, I would sure like you to put that on the blog. It is NORMAL for managers to send out statements letting you know what your money is doing in a project or Fund. To my knowledge Karen has done neither. I don't mean those monthly letters but some real details. The question is still out there 'Where did the money go' Don't forget projects were fully funded (all money paid to borrowers), construction never finished, and these projects then went belly up. The investors put up the money and the work was never completed (especially the Karen Guth partnered project – Three Bells for example. Many non-partnered borrowers never received their full amount causing foreclosure – so sad for them). Hear what your options are and send in your vote for the meeting! Please do this ASAP. Karen took control of the last meeting and crucial points were never made. You need to hear what your options are. Trust these investors who retained lawyers and are being active. There is a reason for this letter, please sign and send back within 5 days!

By: Anonymous on 5/10/08

To all of you that are worried and don't know what to do please just be greatful that a handful of your fellow

investors have put in their time effort and money on the line to try to protect you.

If you received a letter today asking for your vote I hope you know it may be your best chance of saving what is left of the fund.

This action has not been taken without cause and we should thank the brave for pointing us all in the right direction. I think a meeting called by the investors can only bring facts to light and put us on the same page. I for one want to hear what this investivation has uncovered and would like the right to choose who is managing my life savings.


Stefan

By: Anonymous on 5/9/08

My question is why? Do people actually pay to support this site?


After reading some of the post on this website I cannot believe that you would let someone post with blatant disrespect towards others! Does anyone censor this site?

As for the 210 comments on your recent posting it ended as this is written at 258. Close to 100 of them were from two people, Insider and Anonymous I don't believe that to be real readership!You should be so proud and so should your sponcers for I will not support either!

By: Anonymous on 5/9/08

So Karen's buddy is putting on the foreclosure sale of the projects that Karen and her other buddy Amico partnered up on? How frickin' convenient! It'll be interesting to see who buys this property. Either Karen or one of her buddies at a great deal. Of course, the investors will lose out big time!!! DON'T YOU KAREN/EFI LOVERS GET IT YET???? This is unethical it make me want to puke! Go on, keep lovin' Karen but you'll just be the last to let go of that love later when you see that your money has been stolen right out from under you!


Also, think about it. If your loan was a 70% loan to value ratio and the market declined 25% – you shouldn't be making pennys on the dollar! Wake up!


And Mike Adler – how foolish are you? Karen is good at Mortgages and making herself money in the fees (not to be shared with the investors). She's not good at making money with real estate for her investors – she's already proven that! Have you not attended a meeting regarding even one project? Don't judge her off of blind faith or past history (lies and ponzi scheme has finally collapsed). Find the facts and look at the numbers – the numbers scream that she could care less about the investor. She only cares about how much money she can make! Wake up and smell your burnt money!

By: Anonymous on 5/9/08

Joe Schacherer says:


I'm accumulating email addresses of just EFI investors.

I already have 25. I want to keep everyone in the loop as facts and options become available.

Please send your "real" email address to jschacherer at hotmail.com

I will not share your address with your approval.

Joe (805) 489-5791

By: Anonymous on 5/9/08

Gettin' Personal?

To Insider:

My mother's pride has nothing to do with calling a spade a spade. You judge gender by content? That must please your mother as well. I find no joy whatsoever in what's occurred, perhaps you need to review my words. I'm sorry that so many have their life savings at risk. I'm sorry that more hasn't been be done to address this fiasco, and I'm sorry that so much denial has kept this Titanic afloat. I'm even sorrier that I have to explain myself to someone who apparently doesn't get it.


Stefan

By: Anonymous on 5/9/08

My previous post should have been directed at Michael Adler. One of the best left in our dwindling number of cheerleaders.

By: Anonymous on 5/9/08

Date of Sale 5/30/08 11:30 AM also the foreclosure's are through All American Foreclosure. Karen's buddy Don Vaughan

By: Anonymous on 5/9/08

Interesting Legals in the Telegram Tribune. Notice of Trustees Sale on Loan B352-05 – B366-05 Signature Homes and Al D'Amico in the amount of $7,584,421.10 APN: 026-281-055/056 and Three Bells,B193-06 Karen Guth- Al D'Amico in the amount of $6,453,285.89 APN: 040-111-024. Open your eyes

By: Anonymous on 5/9/08

Anon, Are you serious? You truly believe this can all just be fixed with a little time? Gosh, maybe you know something I've missed.


It all seems amazingly simple. Not as sophisticated as you would have hoped. Your principal and my principal were being used to pay each other interest until it was all gone (nice). The so called "history of success" was the result of new people continuing to bring new money. We might all agree that this market for new money has, how shall we say, declined. So in a way you could say the current problems are market related, just not the real estate market that they were marketed to mirror.


But wait, your optimism is starting to penetrate me now. I think I'm seeing the light. So keep up the cheerleading as posts like yours spread hope. Maybe this can be fixed. Have you some friends, or perhaps family who might like to "invest" with EFI? It's really just a short term liquidity problem they're currently experiencing. Nothing a good inflow of new cash wouldn't help fix.

In fact, I would even consider directly selling them my shares at a bit of a discount so not only would entry be easier, but it would also assure this lucky person an even greater profit when this is all fixed. The more I think about this, I think it might do me good to pass my shares along. Guess I'm just feeling generous all of the sudden.

By: Anonymous on 5/9/08

to You Know Who


Well if your not the Slow one or dogdoo you sure want to run in thier pack. How proud you must make your mother. Peoples grief is your joy. Your a fine young man.

By: Anonymous on 5/9/08

Letters to the Editor

Not worth suing lender


Iaman investor with Estate Financial, the “troubled Paso real estate lender.” I don’t think anyone should lose sight of the fact that Estate Financial is an employer of a good number of people and a taxpayer in San Luis Obispo County. It also has a good reputation among others in the finance world.


Suing Karen Guth and Estate Financial will only slow her down and take time and money away from what she does best: real estate. Anyone who sues her will get nothing if they win — in about 10 years. Your investments should be fixed by then. Paying a lawyer to start a lawsuit will be like lighting $100 bills on fire.


Karen is a dedicated and very competent professional who built that business putting her heart and soul into it. She’s not going to give it up. She knows she has obligations she’s responsible for.


Michael Adler


Karen mustbe releived. There are still some in the community who keepsdrinking her kool aid. wonder if Mr. Adler be willing to put up his money if he has so much faith in her?


Stefan

By: Anonymous on 5/8/08

Sorry Mr. Rick and Insider…YKW ain't a bear or slow. But here's a fun thought…how about someone who invested over $100,000.00 into the EFI fund as recently as December 2007…about three months after investor payments had stopped??

Gosh, that just doesn't seem right. Something like that, directly reported to the our D.A….well that must have been worth pursuing….Ya Think? Guess what?…..guess not. Risky investment concept..seems to be the EF trump card. That and the fact that everything will be terrific in 60-90 days or so….

Especially enjoyed the letter to the Editor in today's Tribune…make mine a double shot of denial.

By: Anonymous on 5/8/08

to You Know Who


Come on SLOWWWWWWWW Bear Mr. Rick naile you. Don't try and sneak your crap in here.

By: Anonymous on 5/8/08

the employees of Estate Financil should watch this show. they can see some of what they are doing wrong and how they are severly hurting others. are they really that stupid? do theynot understand they are breaking the law? they see the lawsuits and servers arrive at their office. employees should wake up and get the hell outof there, they now are co-conspirerors.

By: Anonymous on 5/8/08

i saw the episode. Explained how it was done wiht uncollectible notes from another ccompany created by the Baptist group. Estate Finnancial other company is Republic Properties. Everyone should watch when aired again. i think Estate will file BK sooon just like them. history repeats itself.

By: Anonymous on 5/7/08

Aired on American Greed tonight was a documentary of the Baptist Foundation of Arizona. I missed the first part of it, but this company/foundation was promising their investors 12% derived from real estate deals. It happened in the 90's but oh, the similarity is stunning to EFI. It ultimately turned into a Ponzi scheme. If you want to understand what so many believe is true about Estate Financial, I suggest watching this show. It concludes with prison time for both owners of the Company. The next airing I can find is Sunday 5/11 at 8:00 CNBC – American Greed.

By: Anonymous on 5/7/08

Rick – that's not me.

By: Anonymous on 5/7/08

Thank you SLO Bear DewPoodle for yet another fine contribution of wisdom and courage.

By: Anonymous on 5/7/08

Gosh, if only I'd had known this was really happening early last year when people first started complaining about it. Who would have ever guessed that this type of activity would have really threatened people's life savings? Aren't these just risky investments?????

It's sure a lot easier to deal with these things when the bad guys are dealing drugs, driving drunk, or using guns. Who would ever have thought that they might wear white collars? This is starting to sound almost as bad as the folks who sell mary-jane to the cancer patients…..pretending to make their lives better…kinda like those high interest rates they were offering….

Yes siree, if this keeps up, just might have to do something here pretty soon.

Just haven't figured out what that something is quite yet…..maybe someone should restrict a license or something…that'll show em.

That'll make everything right….That's bound to make everyone happy.

By: Anonymous on 5/6/08

Came by your site from a plug at SLOcomment.com (who loved your site). Fantastic Reporting!! Thanks so much for your investigations.


Stefan

By: Anonymous on 5/6/08

Seeking investors who are invested in 919 Mountain View Ave. and Carmel Road.

By: Anonymous on 5/6/08

I have cash says:


I'm buying if anyone is selling!


Investment opportunity with EFI Mortgage Fund. High returnwith no fluctuation in value unless stocks. BTW. if you try to sell you maybe out of luck, but you can roll over like everyone else.

LOL

By: Anonymous on 5/6/08

To I Have Cash


Why don't you buy an ad on this site instead of exploiting Dan and Karen???

By: Anonymous on 5/6/08

I'm buying if anyone is selling!

By: Anonymous on 5/6/08

To Anonymous: You're right, they do need the money more than me. But only due to their fraudulent play. Do I have pitty on them? No. A real business woman can make money without screwing over the precious investors. Without the investors she would have no business.


BTW, the divorce docs are dirtier than discussed in the 3 part articles. Thank you Dan for writing those – good job. But I'm suspecting writers have to be careful what they put in print. Get the divorce docs for yourself and you'll see just how nasty Karen really is. Who woulda thunk the woman is this 'off base.' Too bad for the investors. Don't blame yourselves. This all could have worked if Karen and Josh followed her own rules and didn't lie.

By: Anonymous on 5/6/08

Anyone thinking of a reciever? I suggest all of you who are serious about disposing of Karen and Josh start Googling "recievers, mortgage fund, etc." These folks are willing to talk to you and are very educated. More than Karen and Josh can imagine. Get busy and start calling these management teams and receivers! And then call anyone you suspect may be of the same opinion and GET INVOLVED! You can make a difference!


By: Anonymous on 5/5/08

Rhonda


Karen and Josh have their own expenses too. Who do you think you are? Just because its your money,? Go get a life!! They need your money more than you do.

By: Anonymous on 5/5/08

To Horse's Mouth: So sweet of Karen Guth to think of herself first. Her employees probably think Karen needed that money to pay for office expense. How much does the building and employees cost a month anyway?

By: Anonymous on 5/5/08

"For the first time since its inception, the Mortgage Fund has made no distribution this month. The net proceeds available to the Fund were $235,274.75. Of this amount $147,598.04 was taken for applicable fees and the balance was applied to the loss reserve."


Quoting Karen Guth's letter dated 11/19/2007


Stefan

By: Anonymous on 5/5/08

insider


Hey, mommy knows best for her puppy.

Don't think for a minute he was not well rewarded. He lives free of charge on the ranch and his Mercedes SUV is paid for by EFI (ie. investors money) his wife's car and all incidental expenses are covered by EFI's funds. The ranch's payroll is paid for by EFI(investor's) funds. Everything else is gravy. How did we miss the boat?

By: Anonymous on 5/5/08

Josh probably got not much more than sallery out of this deal. I'm sure Karen and Charlie milked this cow to its full extent. Josh however will get an equal share or more of the punnishment that is yet to come. Mom made sure of that when she sent him down to get the brokers license. Apparently Moms not licensed for anything accept greed.

By: Anonymous on 5/5/08

Are there any properties that have been reposessed?

By: Anonymous on 5/5/08

fyi: Great information on the slocourt.net site. These lawsuits are obviously, according to Guth, figments of the court's imagination, because as late as 90 days ago she was still telling investors she had no lawsuits against her. She's really been caught this time.

By: Anonymous on 5/5/08

The increased effort bore fruit. In a little more than 12 months after Applebaum left the firm, Guth and Yaguda had increased EFI’s mortgage portfolio from $95 million to $135 million.


The increased loan amounts resulted from loans that were not intended to be fully funded. It allowed the principals to withdraw fees from loans upfront. There was no regard to the borrowers how projects will be completed on time. The result of Karen G. and Joshua Y.'s activities what we all paying for. Unfortunately for them, State and Federal agencies are investigating the Company and its principals.

To make matter worst for them, the divorce documents speak for themselves even if they only a small portion of information. Rest be assured, the Feds and the State can look into bank records as to where all the money is gone.


By: Anonymous on 5/5/08

Where are the investigative reporters from the national newspapers? They should be covering this story. Anyone have a personal relationship with this type of reporter? This needs national coverage!

By: Anonymous on 5/5/08

Great Story, and very interesting.

By: Anonymous on 5/5/08

Pulitzer Prize reporting.

By: Anonymous on 5/5/08

I'd really like to know how much Joshua's hard earned income was in the past. The divorce docs reveal Applebaum being surprised to learn shortly after their seperation that Joshua received excessive bonuses, Over a quarter million easy. Someone with the docs care to look that up? I do know Charles was unhappy about it! And I'm sure Joshua deserved it since he is so very diligently did appraisals for the company! For those of you who don't know, he DOESN'T have an appraiser's license and ethically had no business appraising what so ever (But, hey, why pay an appraiser when EFI could save a few bucks using Josh?) If you are a fund member, take a look in the Circular, they gave themselves the right to do this! Who would have thought they would take such LARGE advantage of the clause. But 'taking LARGE advantage' is more the norm for Karen and Joshua. Joshua's appraisels have been off by well over 7 figures! Is Josh just sloppy, not educated enough, or commiting plan crime – your choice!


Stefan

By: Anonymous on 5/4/08

The increased effort bore fruit. In a little more than 12 months after Applebaum left the firm, Guth and Yaguda had increased EFI’s mortgage portfolio from $95 million to $135 million.


This sudden increase in loan portfolio was phantom. Thats why weall in deep dudu today.

Today its us, tomorrow is them, unless their passports are ready for the go.

By: Anonymous on 5/4/08

fyi says


All that legal expenses isbeing paid by investors.Her income fell almost 50% in a year.

By: Anonymous on 5/4/08

http://www.slocourts.net

if anyone wants to see karen in action just look up her current court dates. when this web site comes go down to the CALENDER heading then under that is the sub heading CIVIL & FAMILY LAW BY NAME-click on that and you'll find karen guth's name and three bell's name and al d'amico's name. court dates are may 5 & 7. go see the old girl in action.

By: Anonymous on 5/4/08

(Editors’ note: This is the third and final article in a series examining the high-rolling, multi-million-dollar Paso Robles financial lender, EFI, and its current problems.)


This story is not over. There will be more updates to come. Its just the begining.

By: Anonymous on 5/4/08

Still Applauding Karen?


Well, she just started taking mngt fees sincelast October. Gofigure? When was she lying, at the meeting or who knows?

BTW Howdo you know when lies?

When she opens her mouth

By: Anonymous on 5/4/08

What is happening with her co conspirator, Josh? How much his income shrank?

Or is he still the FUN(D) dude?

By: Anonymous on 5/4/08

I'm in tears. Karen's income declined to 1.4 million in 2006? How will she make it?

By: Anonymous on 5/4/08

I hope Karen Guth has surrendered her passport. But now I wonder if she shouldn't be on some kind of suicide watch.

By: Anonymous on 5/4/08


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