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 5/11/08

Intersting,


I met a friend who is a money manager and good at it. One of his client invested money with EFI. She mentioned the situation to him to investigate. He came to the conclusion that Karen and her partner (Josh, he did not know he is her son) are going to FED-PEN. According to him, what he discovered is pure fraud that falls within the RICO.

Its just matter of time. All that money transfers will come back to hunt them even more.


By: Anonymous on 5/11/08

effundinvestors@yahoo.com


I will contact you shorthly

By: Anonymous on 5/11/08

To Anonymous – COMMENT FROM TOPIX


Correction in email address: effundinvestors@yahoo.com

Please contact me!

By: Anonymous on 5/11/08

To Anonymous – COMMENT FROM TOPIX


Please contact me at efffundinvestors@yahoo.com

By: Anonymous on 5/11/08

I for one am in total agreement to call a meeting.

We are scattering our efforts, we must come together and have the professionals give us a clear legal opinion. This is not a fight any single investor can do alone. This meeting is the opportunity to hear our options and join forces. The only option NOT on the table is keeping Karen in charge of my life savings. We should thank the people who have paid for this first step.

I encourage you to be proactive, we can become an army and win this battle.

PLEASE RETURN YOUR SIGNED LETTER. If you have questions call someone and talk about it.

By: Anonymous on 5/11/08

COMMENT FROM TOPIX


note with keen interest the failed dealing of EFI, a posting on uncovered-slo mentioned the BFA ( Baptist Foundation of Arizona) as being similar to EFI demise. Having been involved in the BFA matter years ago let me tell you two things.

John McCain who was and still is attending the same Church that started the BFA Scandal and who advised me and many others to invest into the BFA telling us is was " Safe & Secured" shortly a Phoenix New Times Story unraveled the mess. Pastor Dan Yearly told us it was a safe investment. Only thing is he too was bilked into telling us and the thousands of others at NPBC ( North Phoenix Baptist Church)As it turned out it was a $ 635 Million Fraud and Ponzi Scam. Now that i have friends who did invest in EFI the only one i knew who got out and got the inside scoop was Cindy and she has now left to enjoy her Monies in Nevada. All the others she warned refused to listen to her, well now they wish they had. She warned us it was a fraud and scam. She was connected to Rodewald who told her get out NOW. The other Hard Money lenders and borrows are doomed as well. The money is now sitting in a Holding Company based in Nevada being moved to off shore accounts in small amounts each week as not to get the attention of the Federal regulators.

By: Anonymous on 5/11/08

Kate, this is why I hoped Anon would double check that APN number. I can hunt, if I can find the sources.


Stefan

By: Anonymous on 5/11/08


I didn’t receive any interest payment this last month from the mortgage fund. According to a statement by Guth, published in the Telegram Tribune on Sunday, May 10, there has been a twenty percent reduction in the value of the mortgage fund. By her estimate that leaves over 136 million dollars remaining in the fund.

By not paying any interest on the 136 million dollars that means that either

1)Guth paid other investors in the fund but didn’t pay me because I asked her, at a meeting on April 2, 2008, what the fund’s carrying costs were, ie how much did she lose on the fund every month. Guth told me, as she threw me out of the conference room, that I had lost a lot of good will. When you figure that the only good will I want from Guth is to be paid an agreed upon percentage for the use of my money, then it is logical to assume that because I asked a question that Guth could not answer, my loss of good will equated into Guth refusing to pay me any more returns on my investment.

2)The other explanation for not receiving a penny of interest is that every one of the investments that received the 136 million dollars of investor money left in the fund are now in foreclosure or is in forbearance. That means that Guth managed to put all of the money into non producing properties. That takes some talent to be able to make 177 million dollars worth of real estate investments that all fail to perform, even in a down market.

Either possibility is ominous in its implication. If I am not getting any interest from my investment in the mortgage fund while others are, then Guth is playing games with the money. Any type of megalomaniac, childish behavior from a person in position of fiduciary responsibility is unacceptable. The other possibility, that Guth has managed to place all of the mortgage fund investor money into properties that are not producing rent or that are all being foreclosed on is mind blowing. Of course the worst case scenario is that through the use of leverage, lending more than the stated loan to value, Alice in Wonderland appraisals, excessive management fees, using investor funds to pay for Goth’s personal projects and attorney fees to fight the law suits filed against Guth or using previous investor money to make interest payments to new investors, all the money is gone and there is no mortgage fund money left to make interest payments with.

I forward what I have written in the uncoveredslo blog to Estate Financial, hoping that I am wrong and there is a different explanation. I always include my real name and email as well as my phone numbers. If anyone would like to talk to me, exchange information or have me E-mail pictures of the partially completed housing project started by Guth/Feytco that exemplifies why none of the Estate Financial money may ever be recovered please contact me at mjk122085@aol.com. I extend that invitation to Karen Guth, Josh Yaguda or Rick Rodenwald, the attorney who threatened me with implied legal action on November 5, 2007 for stating that Estate Financial may be in financial trouble.

By: Anonymous on 5/11/08

To Carol,

I see your point now. Someone with some know how needs to look into this. Anyone out here to HELP??

By: Anonymous on 5/11/08

True irony


a 64 year old homeless man who lives out of his car robs a few real estate people of a few hundred dollars. We manage to catch him within days throw him in jail and I bet he will do some serious time.


Now we have some real estate people who rob a bunch of old people of hundreds of millions of dollars. Commiting the same act over and over. Complaints filed over and over. Yet thier still in buisness and in controll of the victims assetts. Free as a bird.


Poor old man he should have asked them to invest.


Stefan

By: Anonymous on 5/11/08

Kate, the APN number tied to Loans B352-05 and B366-05 is 040-289-018. How does APN 026-281-055/056 tie to this specific transaction, the notice of trustee's sale for Signature Homes LLC? This transaction is known commonly as Templeton Hills II. APN 026-281-055/056 should not be tied to these loans, UNLESS something 'hinkey' is going on.

By: Anonymous on 5/11/08

To Carole,

The APN is the Assessors Parcel Number. It is what appears on your property taxes. This number identifies the location of the property. You can look it up on the assessors maps.

By: Anonymous on 5/11/08

To Anon, In regard to the notice of trustee's sale for Signature Homes LLC, Loan B352-06 and B366-05, the APN listed is 040-289-018. How does APN 026-281-055/056 tie to this transaction?

By: Anonymous on 5/10/08

Obviously this posting needs relisting. Here is it again!


Willard says:


I have recently been made aware some of the missing millions was funneled into a Winery called 5 Mile Bridge and the VERDOT Group apparently some of the behind scenes investors have a holding company named COOKHAM HOLDINGS, LLC of Nevada ?


Thanks Willard. Have you people not noticed these names keep cropping up on various blogs. Originally a person named 'Cindy' kept posting the same names with many others. It appears the money IS NOT staying with EFI but moving along to other parties. Aren't you curious about this? If a good management team is put in place, they will follow the money trail!


Want to learn more about these people. Here is a link that refers to VERDOT, Fowler and RW Hertel. There is some real dirt here and it needs to be sniffed out by pros.

http://www.complaintsboard.com/complaints/5-mile-

By: Anonymous on 5/10/08

One last note. A receiver/management team does not have to be appointed by the state. He can be appointed by YOU, THE INVESTOR! Get involved now before your money goes bye-bye!

By: Anonymous on 5/10/08

Don't worry about the poisen pill. A receiver/management team will most likely find enough fraud that Karen Guth and her protege son Johsua won't ever see a dime more. No payoffs to remove Karen. She'll be running scared when a GOOD receiver/management team is done with her.


So many associate a receiver with liquidation. THIS IS NOT TRUE. Many times they act according to the investor's interest. It's up to us to vote what we'd like him to do. A judge must approve it too. Go to the meeting and hopefully Roger will have a receiver there to explain more.

By: Anonymous on 5/10/08

To Roger Fredrickson. I'm hoping not only will you share some of the potential fraud allegations by EFI but mostly, I'm hoping you WILL HAVE A HEAVILY EXPERIENCED RECEIVER at this meeting. Many receivers also do Management work. This isn't to be taken lightly enough to have ONLY lawyers talk that aren't well experienced in this field. Receivers are generally CPAs, CIRAs, and do much forensic CPA work. Also, they utilize their lawyers to sue and regain money from the guilty. Which could include Karen herself, Karen's partners (Three Bells, Signature Homes LLC -D'Amico for example), even banks, and the list goes on. They specialize at getting the money back for the investors. Please think selflessly when conducting this meeting. We need to be informed of ALL POSSIBILITIES! You will be more than awarded by way of reputation for your efforts! Thank you for all that you've done so far!


Stefan

By: Anonymous on 5/11/08

Kate, the APN number tied to Loans B352-05 and B366-05 is 040-289-018. How does APN 026-281-055/056 tie to this specific transaction, the notice of trustee's sale for Signature Homes LLC? This transaction is known commonly as Templeton Hills II. APN 026-281-055/056 should not be tied to these loans, UNLESS something 'hinkey' is going on.

By: Anonymous on 5/11/08

To Carole,

The APN is the Assessors Parcel Number. It is what appears on your property taxes. This number identifies the location of the property. You can look it up on the assessors maps.

By: Anonymous on 5/11/08

To Anon, In regard to the notice of trustee's sale for Signature Homes LLC, Loan B352-06 and B366-05, the APN listed is 040-289-018. How does APN 026-281-055/056 tie to this transaction?

By: Anonymous on 5/10/08

Obviously this posting needs relisting. Here is it again!


Willard says:


I have recently been made aware some of the missing millions was funneled into a Winery called 5 Mile Bridge and the VERDOT Group apparently some of the behind scenes investors have a holding company named COOKHAM HOLDINGS, LLC of Nevada ?


Thanks Willard. Have you people not noticed these names keep cropping up on various blogs. Originally a person named 'Cindy' kept posting the same names with many others. It appears the money IS NOT staying with EFI but moving along to other parties. Aren't you curious about this? If a good management team is put in place, they will follow the money trail!


Want to learn more about these people. Here is a link that refers to VERDOT, Fowler and RW Hertel. There is some real dirt here and it needs to be sniffed out by pros.

http://www.complaintsboard.com/complaints/5-mile-

By: Anonymous on 5/10/08

One last note. A receiver/management team does not have to be appointed by the state. He can be appointed by YOU, THE INVESTOR! Get involved now before your money goes bye-bye!

By: Anonymous on 5/10/08

Don't worry about the poisen pill. A receiver/management team will most likely find enough fraud that Karen Guth and her protege son Johsua won't ever see a dime more. No payoffs to remove Karen. She'll be running scared when a GOOD receiver/management team is done with her.


So many associate a receiver with liquidation. THIS IS NOT TRUE. Many times they act according to the investor's interest. It's up to us to vote what we'd like him to do. A judge must approve it too. Go to the meeting and hopefully Roger will have a receiver there to explain more.

By: Anonymous on 5/10/08

To Roger Fredrickson. I'm hoping not only will you share some of the potential fraud allegations by EFI but mostly, I'm hoping you WILL HAVE A HEAVILY EXPERIENCED RECEIVER at this meeting. Many receivers also do Management work. This isn't to be taken lightly enough to have ONLY lawyers talk that aren't well experienced in this field. Receivers are generally CPAs, CIRAs, and do much forensic CPA work. Also, they utilize their lawyers to sue and regain money from the guilty. Which could include Karen herself, Karen's partners (Three Bells, Signature Homes LLC -D'Amico for example), even banks, and the list goes on. They specialize at getting the money back for the investors. Please think selflessly when conducting this meeting. We need to be informed of ALL POSSIBILITIES! You will be more than awarded by way of reputation for your efforts! Thank you for all that you've done so far!


Stefan

By: Anonymous on 5/11/08

Kate, the APN number tied to Loans B352-05 and B366-05 is 040-289-018. How does APN 026-281-055/056 tie to this specific transaction, the notice of trustee's sale for Signature Homes LLC? This transaction is known commonly as Templeton Hills II. APN 026-281-055/056 should not be tied to these loans, UNLESS something 'hinkey' is going on.

By: Anonymous on 5/11/08

To Carole,

The APN is the Assessors Parcel Number. It is what appears on your property taxes. This number identifies the location of the property. You can look it up on the assessors maps.

By: Anonymous on 5/11/08

To Anon, In regard to the notice of trustee's sale for Signature Homes LLC, Loan B352-06 and B366-05, the APN listed is 040-289-018. How does APN 026-281-055/056 tie to this transaction?

By: Anonymous on 5/10/08

Obviously this posting needs relisting. Here is it again!


Willard says:


I have recently been made aware some of the missing millions was funneled into a Winery called 5 Mile Bridge and the VERDOT Group apparently some of the behind scenes investors have a holding company named COOKHAM HOLDINGS, LLC of Nevada ?


Thanks Willard. Have you people not noticed these names keep cropping up on various blogs. Originally a person named 'Cindy' kept posting the same names with many others. It appears the money IS NOT staying with EFI but moving along to other parties. Aren't you curious about this? If a good management team is put in place, they will follow the money trail!


Want to learn more about these people. Here is a link that refers to VERDOT, Fowler and RW Hertel. There is some real dirt here and it needs to be sniffed out by pros.

http://www.complaintsboard.com/complaints/5-mile-

By: Anonymous on 5/10/08

One last note. A receiver/management team does not have to be appointed by the state. He can be appointed by YOU, THE INVESTOR! Get involved now before your money goes bye-bye!

By: Anonymous on 5/10/08

Don't worry about the poisen pill. A receiver/management team will most likely find enough fraud that Karen Guth and her protege son Johsua won't ever see a dime more. No payoffs to remove Karen. She'll be running scared when a GOOD receiver/management team is done with her.


So many associate a receiver with liquidation. THIS IS NOT TRUE. Many times they act according to the investor's interest. It's up to us to vote what we'd like him to do. A judge must approve it too. Go to the meeting and hopefully Roger will have a receiver there to explain more.

By: Anonymous on 5/10/08

To Roger Fredrickson. I'm hoping not only will you share some of the potential fraud allegations by EFI but mostly, I'm hoping you WILL HAVE A HEAVILY EXPERIENCED RECEIVER at this meeting. Many receivers also do Management work. This isn't to be taken lightly enough to have ONLY lawyers talk that aren't well experienced in this field. Receivers are generally CPAs, CIRAs, and do much forensic CPA work. Also, they utilize their lawyers to sue and regain money from the guilty. Which could include Karen herself, Karen's partners (Three Bells, Signature Homes LLC -D'Amico for example), even banks, and the list goes on. They specialize at getting the money back for the investors. Please think selflessly when conducting this meeting. We need to be informed of ALL POSSIBILITIES! You will be more than awarded by way of reputation for your efforts! Thank you for all that you've done so far!


Stefan

By: Anonymous on 5/10/08

To Someone Please Help,

I hear you. My heart is breaking for you. People think that maybe if they get on Guth's good side that they just might be the one to get their money back. Fat Chance. Take up legal arms and stand up in the front lines. Otherwise you are going down.

By: Anonymous on 5/10/08

OK, what am I missing.


Guth is selling assets. She is foreclosing to get properties in her own or her own company's name:

"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."


Attorney Roger Frederickson is trying to get the votes needed to conduct a meeting that will possibly replace Guth as the Fund Manager.


The DOC suspended Estate's licenses.


Dept. of Real Estate has a file open and is looking into Estate.


SEC has a file open and is looking at Estate.


FBI has a file open and is looking at Estate.


And Guth continues to tell us that things are going to be OK and Estate is not going anywhere.


Do we all just sit by while some government agency takes control of the company, liquidates our investments for pennies on the dollar, or do we stop crying and do something.


Fellow investors we need big help – and we need it now! Who's going to set up and lead us

By: Anonymous on 5/10/08

Paso guy:


I'm suppose to make you a believer. Are you kidding! I'm not preacher. Believe or not – that's your choice.


We need to hire somebody who knows how to develop a plan to get the most out of the assets that the fund and fractionalized interest holders have an interest in. This is not what I do for a living. And obviously it is not Karen or Joshua do for a living.


If the results so far haven't may you a believer – the your head is stuck in the sand with Karen's and Joshua's.


Bye…………….

By: Anonymous on 5/10/08

hey roger


What is your plan for finishing these projects? Be specific


make me a believer


Stefan

By: Anonymous on 5/10/08

Paso Guy


"Lemmings going off the cliff. Are you kidding. Open up your eyes. Guth has been stealing our money, lying to us, and mismanaging our money since 2003 (if not longer). You want to know "what our experts will do."


Well, at a minimum they wont be crooks and liars. That's a good start!!!!!!!!!


Obviously you think the status quo is the best way to solve this problem. WRONG MY FELLOW INVESTOR – DEAD WRONG.


Think you should take one of your own chill pills.

By: Anonymous on 5/10/08

Unbelievable:


Take a chill pill and calm yourself. What is all this 809 9th st stuff?


Know this: I have no use for Karen. On the other hand, I don't want to follow the lemmings going off the cliff.


What is your plan for finishing these projects? Be specific.


I did have a finished house with another lender that sold recently for 81 cents on the dollar. Was I happy? No, but that is the current market.


None of these hard money lenders created the horrible house market as it stands today. Robbing Peter to pay Paul was going on for a long time and was exposed when the market stalled. New managers are not going to create qualified buyers.


WWho are your experts that wil heal this market, provide funds for completion and make us all happy?

By: Anonymous on 5/10/08

To Paso Guy:


HUH???


You don't want "someone who will make a career out of managing your money"? Karen and Josh have been doing just that while pulling down an exorbitant salary and additional fees while MISMANAGING your funds. You don't want "expensive PRO's"? You want to "wait until they have demonstrated they cannot finish the projects"? HUH??? HUH??? That's been made pretty clear during the past ELEVEN MONTHS!! If you know of any projects that have been finished, sold resulting in a return of principal I would love to hear about them. Karen has been scrambling to try to get investors to sign away their first trust deeds so she can form new LLC's so she can borrow more money (that the investors will be responsible to repay) to put in overfunded projects! Don't you get it? If investors are stupid enough to go for that one, she will then rent the projects out and pay herself for the managment of the rentals – and tell us that they have to be rented because they can't be sold for enough to pay back the investors! First of all, we are just trying to get 10% of investors in the Fund to agree TO HOLD A MEETING!!! AT NO COST TO US!! WHAT PART OF THIS DO YOU NOT UNDERSTAND?? WHY ARE YOU AFRAID OF GETTING TOGETHER TO ASK QUESTIONS AND GET ANSWERS FROM AN ATTORNEY AT NO COST???? IS YOUR ADDRESS 806 9th Street as suggested earlier in these comments????


Stefan

By: Anonymous on 5/10/08

To We’ve Got Pay Pal,

Have you even been reading these blogs? If you have been then you would either think that Anonymous is a full blown schizophrenic or it might dawn on you that the name “Anonymous” appears automatically if someone doesn’t enter a name or handle. You sound like the same person who was upset that someone called Kelly a fat ass and you couldn’t understand our anger. Dah

By: Anonymous on 5/10/08

investors:


two other efi slime balls to throw into the pit. daniel r. lloyd (pac-west properties) and david andrew fetyko (builder).

By: Anonymous on 5/10/08

To Paso Guy,

Options must be explored. Go to the meeting. I know you want to trust Guth, everyone wishes that they could but there is no indication that Karen and Josh can finish these projects. Who is going to invest? No one. Without new money they can't finish the projects. The money we all invested is gone up in a ponzi scheme.Get honest with yourself and lets do what has to be done.

By: Anonymous on 5/10/08

to I'm going to the meeting


Just another body on the side of the road for Estate. Another interesting twist is that note will be an asset that will be turned over to the bankruptcy court. The court could pursue Estate on that.

By: Anonymous on 5/10/08

investors:


just talked to another investor 71 y.o. she is filing for bankruptcy. all her money is gone. karen/josh i hope you "slime" are reading this.

By: Anonymous on 5/10/08

To Paso Guy


Somebody is going to make a career out of managing your money. Looks like someone has already made a career out of mismanaging your money. And you seem to want to let them continue without exploring the other avenues. Like I said whos side are you on.

By: Anonymous on 5/10/08

to insider:


No, I'm not FYI and I'm Not "one of them". I'm just another greedy investor, like you, that wants to recover as much as my investment as possible. I went the "take-back" route with TDs I have with RPL and found that getting 10 people to agrre on anything is like herding cats. If possilbe, I want to keep the expensive "pros" out of this until EF has demonstrated they cannot finish the projects. My fear is that the new managers will make a career out of this opertunity and bleed us all dry.


You might think your clever with all your smart remarks, but from the looks of things, the reasonable people see right thru you. Wise up.

By: Anonymous on 5/10/08

investors:


is anyone is invested in B155-06 Tiffini Hughes Development in bakersfield? if you are, do you have any updates to share?

thanks.

By: Anonymous on 5/10/08

All Fund holders should sign the letter and fax it back. The letter indicated the meeting will not cost us. Of course any further action will need funding but at this point we do not have many options.


Stefan

By: Anonymous on 5/10/08

I have recently been made aware some of the missing millions was funneled into a Winery called 5 Mile Bridge and the VERDOT Group apparently some of the behind scenes investors have a holding company named COOKHAM HOLDINGS, LLC of Nevada ?

By: Anonymous on 5/10/08

to all fund investors:


yesterday i talked to a 90 y.o. widowed investor who, over a ten year period, invested and trusted efi with her life savings-$3,000,000. she doesn't have a computer and didn't know about all this. i have never been so moved by someone who felt totally broke and lost. she worked and saved all her life and puff–gone–to efi.

By: Anonymous on 5/10/08

FYI:

TO INSIDER:

YOU TYPE FASTER THAN I DO.


MY LAST REPLY TO YOU WASN'T A CRITICISM. I SAW THE 51% THAT YOU PUT IN AND I WASN'T SURE IF THAT WAS CORRECT. SORRY ABOUT THAT. NO MATTER WHAT, WE NEED ALL THE ANSWERS TO GET THESE CROOKS.WE NEED TO RETURN FORM AND LET'S GET THE MEETING SCHEDULED

By: Anonymous on 5/10/08

To Paso Guy (at 806 9th Street?)


What are you afraid of? Answers? Call the meeting and ask your questions.

By: Anonymous on 5/10/08

to FYI


Is that you Paso Guy?

By: Anonymous on 5/10/08

To K in Paso


I think we should take advantage of the opportunity to hear what our options are at a meeting of Fund members. I do not think we should wait for "the wheels of justice", mainly because they move too slowly and may result in the appointing of a receiver. If we have the opportunity to replace Karen with a competent manager we will avoid a receivership. Since answers are not coming from Karen, bring your questions to the meeting. I'm faxing my request for a meeting right now.

By: Anonymous on 5/10/08

FYI:

TO INSIDER:

YOU ARE STATING SOMETHING WITHOUT KNOWING THE FACTS.ASK THAT QUESTION AT THE MEETING. IF YOU GO TO THE MEETING THIS IS WHERE ALL CONFUSION POSSIBLY COULD BE RESOLVED. ALL QUESTIONS SHOULD BE ANSWERED. A MANAGER OVER A RECEIVERSHIP, THIS WOULD BE A GOOD QUESTION FOR THE MEETING. IF WE ALL GO WITH AN OPEN MIND, WE JUST MIGHT GET SOME POSITIVE RESULTS. I'M TIRED OF THE EFI DOUBLE TALK, AREN'T YOU?

By: Anonymous on 5/10/08

Watch out for Paso Guy he's one of them. How can you pass up a chance to Unite and get some answers from a lawyer for free! One step at a time. it won't be quick but quicker and more fruitfull than where youre heading now