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.)


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 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


By: Anonymous on 5/24/08

ok investors i will tell you what i know,

i know for a fact that karen guth and joshua yaguda are guilty of every violation they are bound by dre and dept of corp to not commit. heres the scenario, republic properties took out loans to finish projects that karen had taken from borrower, then they change name to first press, first press and many other llcs. mt view loans fully funded, interest being paid by other loans that karen had that she funded, funnelled money into mt view to pay interest and build out some of the homes that had been started, sold homes and submitted demand for original amount of old loan, pocketed the proceeds and now created another development of fully funded loans that she spent funds to finish other projects, she did this to her borrowers also, funded up lots for construction that were not ready for construction to make interest payments and pay for construction costs of other projects, hense most of loan funds ended up going out in interest payments. houses not get finished, loan fully funded, borrower cant make interest payment

karen step in take project and the viscious cycle continues. except one thing happened she didnt expect, housing went down, and she has thousands of loans fully funded, some with partially built homes and some with nothing but bare land, funded for more than they worth. so she wants you to wait till houseing goes back up, sit on those properties that she has now started to take from borrowers because she can and let her finish the jobs then u get your money yea right sheneeds to go to jail, her assets sold and you people need to take what you can get and walk away, cause you cant afford to finish these projects, and you have no idea how many of them there are that she has aquired. and how do it know this, i wrote the checks out of these construction accounts

By: Anonymous on 5/23/08

To K in Paso,

The San Francisco SEC department does have jurisdiction. I don't know who you spoke with but I do know this for a fact. Please try them again and talk to someone else. Perhaps the person you spoke with didn't think Paso Robles was their area. It definitely is. Good luck!

By: Anonymous on 5/23/08

I called the SEC today, they do not have jurisdiction.

By: Anonymous on 5/23/08

If investors think it's a good idea to position a receiver or a law firm to take over EFI without NEGOTIATING THE TERMS first then all are in trouble. Blind eyes of faith can put all in danger. Find a third party lawyer to negotiate terms. SJLM, managers or receiver needs to be negotiated with if offering take over of EFI. Scrutinize.

Karen DOES need to go regardless.

By: Anonymous on 5/23/08

I don't know who posted that last blog re: meeting but it wasn't me. The true insider.

By: Anonymous on 5/22/08

Dont give up!! I think I will be able to give you the date and time of the fund investors meeting tomorrow.

Stay in touch we will know more soon.

By: Anonymous on 5/22/08

Also, this does violate SEC regulations and that department is very powerful. Contact the SEC at by email and make your complaint. If you feel this is a ponzi scheme state why you feel this way. If you have been told by Karen Guth remarks like 'I gave you your money back in interest' or like remarks please document them and tell these agencies. Make ANY complaint you don't feel is fair regardless if you have a lawyer or not. Go to the Under the Investor Information section there's 'File a Tip or Complaint' click on that and complain! The more complaints the better. This is the most likely agency to act. I believe the Dept of Corporations would have made their move by now if they were going to shut Karen down. Add 'filing a complaint to the SEC' to your list of activities this week!


By: Anonymous on 5/22/08

From personal experience I know that employee’s of regulatory agencies are not looking for work. They will do their job but they don’t want to devote agency resources and their time to something that isn’t going have results or end in a conviction. The District Attorney’s Office is especially sensitive to conviction rates. What made a good case in 1908 is the same thing that makes a good case in 2008. Someone who knows what went on comes forward and tells their story. Anybody with inside information about criminal activity can give investigators what they need for an indictment and a conviction. If someone has culpability in the crime they can generally trade information for immunity. If you know of someone who was involved with Estate Financial, you can send them a variation of the following letter or talk to them and encourage them to come forward. I sent this letter to one of the Karen’s pet borrowers. He probably won’t respond but the first time a regulatory agency contacts him, he may be ready to share what he knows.

Dear ______,

I know you were involved with Estate Financial which I am sure you regret. However, as they always do, property values cycle and now we seem to be at, or headed towards the bottom of the cycle. The good news is that property prices will re-bound, so at some time property values and your standing in the community will come back. The important thing is to plan for your future and this is what my letter is about.

You were one of the primary borrowers of money from Estate Financial. According to the print out I have, you have borrowed on over 50 loans from Estate Financial. Those are loans that were processed in your name. I don’t know how many other loans you have taken out in other names or in partnerships but it is clear that you were one of the prominent users of Estate Financial Investor money.

Even though the days of developers owning a jet airplane and yacht are over, things are going to come back. Someone who has put the energy and effort in achieving what you had achieved will become successful again. The key thing is to keep your eye on the future and protect yourself now.

I have enclosed a copy of the case filing of from the California Corporations Commissioner concerning a complaint against Estate Financial Mortgage Fund. In the filing there are allegations that Karen Guth didn’t disclose she was no longer making interest payments to investors, failed to provide investors with the subscription agreement, operating agreement and other documents, and most importantly, failed to disclose that Karen had loaned herself and her partners more investor funds than was allowed in the Offering Circular.

I think you and I both know this is the tip of the ice berg. Anyone who drives through the partially abandoned developments through out the State of California can see there are problems and mismanagement beyond the average person’s ability to comprehend.

I don’t know if there was any corners cut or regulations violated in your transactions with Estate Financial. I don’t know if there was any funding that wasn’t used for its stated purpose. I don’t know who would be the subject of an investigation into an ongoing criminal conspiracy or who might be caught up in a RICO investigation for misappropriation of funds.

What I do know is that the person who comes forward with any relevant information is always going to fare better than the person who waits until they are named in an indictment. If you have any information about questionable dealing or illegal practices that Karen Guth was involved in, it is in your family’s best interest as far as your reputation and your financial future to come forward now. If you are free of any illegalities and nothing even slightly indicating that the many regulations involving investor money has been broken, then please ignore this letter. If you have questions about what has transpired, or, upon reflection think that some of the things Karen Guth did were violations of the law, I have included the phone numbers of the regulatory agencies and the names of the officers in those regulatory agencies who are knowledgeable about the Estate Financial situation. Protect yourself and your family by giving them a call if you have information or concerns.

John Tule District Attorney’s Office for San Luis County

805 781 5894

Chris Lewis Department of Corporations

866 275 2677

California Department of Real Estate559 445 5009

D. Vincent Federal Bureau of Investigations-Santa Maria

805 346 2728

By: Anonymous on 5/22/08

Thank you to "K in Paso" for laying out the steps to take— I will do those things today— I think it's hard for folks to even know all the things to do, and in what steps— thank you


By: Anonymous on 5/22/08

Things I did this week to be proactive…

1) I called the Dept of Corporations, they strongly encouraged me to make use of their complaint form. I have been gathering up the docs that I need to include and will be mailing that off to them by the end of this week.

2) Downloaded the Department of Real Estate complaint form. I will file that as soon as I have the DOC form done.

3) I contacted a local lawyer with experience in these types of cases. His advice to me (a small investor with limited resources) was to go with the group and their lawyer SJL&M in SLO. He spoke highly of them.

4) I called SJL&M, the paralegal said that the meeting place was being secured and that the notice of the time & place will be going out soon. She said that the delay was because several of their first choices for a location for the meeting couldn't be rented.

5) I called the SLO DA's office. The officer I spoke with in the Economic Crime Unit said that they are gathering the names of investors and are waiting the the DRE and DOC to complete their investigations. The DA's office will proceed with criminal charges based upon the other two regulatory agencies findings. Here is the e-mail I received from the Economic Crime Officer…


Economic Crime Officer

District Attorney ECO Crime Unit-Bad Check Program

Small Claims & Consumer Advisory

San Luis Obispo Office

Thank you for contacting our office.

The District Attorney's Office refers individuals with complaints such as

yours to the proper investigating agency with original jurisdiction over

the matter. In turn, that agency conducts its investigation into the

matter then submits its results and recommendations for charges, if any, to

our office for review, filing, and prosecution.

The California Department of Real Estate (DRE) and the California

Department of Corporations both have jurisdiction over this kind of

business, and are both experts in this area of the law. Please use the

Internet links below to submit your complaints to them.

According to Dept. of Corporations, they oversee and regulate finance laws

and security laws in California. They also make sure the business complies

with the law, and they monitor the status of the business' license or

licenses. Also, if their investigation shows any violation of the law,

including securities violations, they may refer the case to our office for

criminal prosecution as well.

The DRE handles the issuance and revocation of licenses as well, and also

has the power to submit a criminal complaint request with our office.

We recommend complaints be filed concurrently with all concerned agencies

Here is the link to the on-line complaint form process for the DRE:

Here is the link to the complaint form process for the Department of


Additionally, if you have questions, you can contact the following folks:

DRE — Enforcement, Fresno: 559-445-5009, option 3

Corporations — Client Resource Center 1-866-275-2677 (1-866-"ASK CORP")

Also you may want to contact a private attorney.

[end e-mail]

It is very important that all of us take a multi pronged approach and not depend on only one law firm, membership meeting, or regulatory agency. We must put the pressure on from more than one direction. Here are the recommendations I have today…

-All of the investors need to file complaint forms with both the DOC and the DRE. This will strengthen the case against EFI with the two agencies that have jurisdiction at this time and in turn the DA's office will be notified of criminal wrong doing and then get involved.

-Call the SLO DA's Office. They need to know that we are still out here and want them involved. The officer said that they would like to be sure that they have a complete list of investors.

-Get the advice of an attorney.

-Go to the meeting.

**The Economic Crime Officer also said that the DA's office would be interested in hearing from ex-employees of EFI**


By: Anonymous on 5/22/08

I was again blown away by the recent letter from Karen Guth claiming that she had the support of the majority of investors. She says that the information on the doesn’t begin to tell the full story. Somebody made a valid point that they didn’t want to hire an attorney because they might not be enough of their investment left to pay the attorney at the end of the suit. Here is what everyone who has a stake in this can do. Find one of the “majority” of the investors that Karen claims support her and ask them to refute the following…

Karen lent out more money than she had available. Think of it like writing checks. You have a hundred dollars in the bank, you write checks for a hundred fifty dollars and now you have to scramble or your checks will bounce. In her case she had to scramble or the projects wouldn’t have the funds to be completed and the investors wouldn’t receive their interest payments. In the middle of that process, the real estate market lost twenty to thirty percent of its value and now no interest is being paid and no projects are being completed.

How much a company or individual was hurt by falling real estate values depends on how much leverage was used in your investments. If you were counting on rising real estate values to get you out of a mess, things are now desperate. To the individual buying an expensive ski boat and new truck that they couldn’t afford, then refinancing the house to pay for it all, things are in a mess. To Karen it meant promising more money to builders than she had available, hoping more investors would invest in a booming real estate market.

Some people didn’t go out and buy a new boat or luxury car because their house appraised for more money and those people are not in financial trouble. Some hard money lenders only loaned money that they had available and they are not in trouble either. When the real estate market went south, they built out the projects they had lent money on, sold those projects at a small loss and now they are ready to ride the market back up. Karen didn’t follow a conservative or prudent path. She pressed on, becoming a partner in many, many projects, depending on rising real estate to pull her out. She loaned Estate Financial Funds to builders, and in many instances became partners with those builders in bad projects. When the real estate market fell those projects became horrific money pits with no exit possible. Because they were funded for the full amount, the properties have been sunk into debt many, many times worse than if they were a simple 70% loan to value as Karen advertised in her circular. Despite Karen’s attempt to blame the real estate market for her trouble, the real estate market didn’t force Karen to make loans for 100% of the value of the project and then not fund those projects to completion. That is why so many of her projects are sitting partially completed and losing more money every day.

Karen Guth has made terrible management decisions. Just like the head of Citi Bank and the CEO of American Express, when you lose a lot of money you lose your job. It’s that simple. The only problem is Karen refuses to go away. At the next meeting that Karen attends I will have these questions to pass out to any interested investor, any Karen supporters and to Karen herself. I then intend to ask Karen these questions at the meeting.

Why would Karen make these non-performing loans to her many LLC’s, loaning herself much more money on the properties than her stated loan to value guidelines?

What percentage of the non-performing loans made with investor money are loans Karen made to herself?

How much money does First Press Partners owe to Estate Financial Investors?

How much money do all the Limited Liability Corporations controlled by Karen Guth owe Estate Financial Investors?

How much money is currently owed in back taxes on Estate Financial controlled property?

If children go into one of the unlocked, partially completed houses on Regio Place and injure themselves or start a fire, are the investors in the mortgage fund liable?

Why did Karen fail to fund and complete half the houses in the Regio Place development when she was a principal partner in the subdivision?

Why was money spent on a public relations firm rather than an independent accounting firm who would present and certify a financial statement for the investors to examine?

What is the current number of lawsuits filed against Estate Financial?

Has Estate Financial defaulted (failed to respond) on lawsuits filed against them?

Has there been any default judgments filed to quiet title on the property Estate Financial loaned against, resulting in investor money being lost?

What is individual investor liability on the lawsuits filed against Estate Financial?

Who ever Karen’s “majority of investors who support and understand” need to at least consider the above questions.


By: Anonymous on 5/22/08

To Truman,

You are right about the law firm protecting their clients, you just missed one important point. In The fund it is one for all and all for one. Nothing can be done for one investor that doesnt effect the other 1700.

The fund is so polluted that unless it is taken away from Karen, with or with out an attorney, we are all going to drown. If you have a plan and funding for that plan I would love to hop on board. So please post your solution and how you will pay for it. Everyone is waiting for someone else to take action.

It would be great if that someone is you.


By: Anonymous on 5/21/08

Yes, I agree with Truman. And there are many people who have paid for their lawyers. They aren't blogging.

By: Anonymous on 5/21/08


To answer your question -"Do you really think that the largest legal firm in SLO has made a deal for their clients and left you all hanging?"

Yes, the largest law firm in SLO is doing exactly what they are required to do by the "code of ethics". They are representing their clients and only their clients. Yes, I really think—-

By: Anonymous on 5/21/08

EFI investors-this is what lies around the corner for you (read below) – unless you get a receiver appointed now. Only other choice is to continue to wait while EFI spends your money with new web sites, PR firms, consultants, and the best smoke screen I have ever seen.

Don't believe me -where do you think the money is coming from for all of this??? Better to pay a receiver who you can trust to follow the law rather than Karen and Josh who have already broken the law. And the receiver will no cost more than the fees EFI is taken every day from the minimal cash flow they are generating – NO MORE THAN THAT.

"Sitting at the center of the troubled Cedar Funding real estate investment company, owner David Nilsen says a little patience would do much to ease the furor.

After being hammered by bad news for several weeks — regulatory crackdowns, investor lawsuits and allegations that he has mishandled millions of dollars invested by Central Coast investors — Nilsen offered his view of the controversy Tuesday in an interview.

Nilsen and his private attorney, Roy Gunther III, said he would seek protection this week under Chapter 11 bankruptcy laws to forestall several civil suits by investors and a related bid for a court-appointed receiver to take over Cedar Funding's $160 million loan portfolio."

By: Anonymous on 5/21/08

Do you want action!!

It sounds like some of you are loosing focus and forgetting what the real problem is.

I am a bit dismayed reading some of the latest blogs.

Do you really think that the largest legal firm in SLO has made a deal for their clients and left you all hanging. Lets get real!! Every one is afraid of paying legal fees but some of you seem less afraid of loosing their investment.

Yes, it does take money and time to get something this large under control.

Be a little patient and dont bite the hand that is feeding you. As far as I know none of you have spent a cent on your defence but are complaining that your free legal advice is not moving fast enough. I can asure you that every thing is being done in a timely fashion.

There are certain legal requirement and time lines of notification that need to take place. This meeting will happen and you will be notified shortly. If anyone has a better idea and is willing to pay for it, please step up. We are all overwhelmed with the fear of loosing our investment but I only see one plan taking shape. Lets be greatful we can come together and try for a solution.

In the mean time be proactive in a positive way. If you have information than share it and if you want to throw stones remember who the enemy is and throw stones at her.

By: Anonymous on 5/21/08

What Fredrickson is doing for his clients shouldn't be a secret. I've heard he hasn't even filed for his investors which means, in the end, there's been no step in the right direction. Sure, he potentially accumulated dirt on Karen but what good is that if it's not public knowledge. I'll be livid if his meeting is designed to gather even more investors together with a plan to work with Karen. Karen can NOT be worked with. It's an all or nothing proposition. Stop wasting time and find a real pro lawyer that will know what to do and FAST. I saw a listing about Cedar Mortgage Fund. Call that lawyer and retain him, he's a mover and a shaker. Who ever is in favor of removing Karen, please write in. If enough yes write into this blog (no names needed) I'll start an email account we can all write into and get acquainted. Yes or no to removing Karen? Which will it be?


By: Anonymous on 5/21/08

To Ex Employee,

Thank you for coming forward with what you know.

I am one of the investors that has retained an attorney to help everyone in the fund.

It would be very helpful if we could talk.

If you are willing to communicate with me you can send your contact information to a secure e-mail address and know all will be confidental.

please send your e-mail address to

By: Anonymous on 5/21/08

to K in paso, you probably have no clue as to who i am, and i would be more than happy to offer whatever information i can to help the investors, but, the bottom line is these investors need to STOP listening to anything that Karen and Josh have to say, the simple fact that they have not answered the #1 question all of you have "is my money gone" speaks for itself, its time to start going after her assets and get her out of EFI or if there is any money left, she will be sure and take it all, the fact that she is still doing business and that the DRE and Dept of Corporations has not put a lock on her door and seized all of her assets is troubling to me, this woman has committed every crime imaginable and broke every law that these two departments are there to protect you from baffles me, like i said before, time to get your own attorneys people, there is not one person who she has in her corner doing anything other than protecting their own investments or being paid to protect her, time for the blogging complaining to stop and action to be taken, the more rope you give her, the more likelihood you will be the ones who get hung out to dry, KAREN GUTH IS A VIPER, SHE IS A RUDE BIOTCH AND IS OUT FOR HERSELF AND ONLY HERSELF, lets get EFI as it is today SHUT DOWN, and assets in the hands of people who will help you recoop some of your investments, forget your interest and be prepared to take less than what you invested, but get out with what you can before there is nothing left and you get stuck with the debt already accumulated on these properties. TRUST ME, GET OUT WITH WHAT YOU CAN, OR STAY IN AND GET NOTHING

By: Anonymous on 5/21/08

to Ex Employee

If Jim is trying to get a message to you, please respond… I am nextdoor.

or… you might not be who I think you are, in that case this cryptic message means nothing to you.

Either way I am sure that the DA would love to have a statment from you.

By: Anonymous on 5/21/08

I for one can't afford an attorney and my investment isn't as large as some of the folks we know, so even if we saw any return of our investment through a suit it most likely wouldn't cover my attorney costs. If I lost I would be screwed out of even more money by EFI because I would have to not only pay my attorney's fees I would have to pay Karen's attorney too.

Couldn't Mr Frederickson and SJL&M file a class action suit?

Does any one know if the DA's office is actively pursuing this?

By: Anonymous on 5/20/08

I think it's time everyone log onto their accounts and contact the builders/developers of their FTD properties. Get their side of the story and post it on this blog with all the details! Do this for yourselves and others.

By: Anonymous on 5/20/08

There are still many people still in the dark about the dirty deeds of EFI. She will do what ever it takes to find a way to win in the end.. eveyone must do what it takes to find out the truth and expose her.


By: Anonymous on 5/20/08

wait and lose says:

id like to know how all these investors found eachother, what a joke! No suit against Karen yet of any magnitude, contractors and builders are getting their property back because

HMM, How would I beleive such an accusation?

You are making Joshua look like he is just another oblivious victim.

By: Anonymous on 5/20/08

What happened to Fredrickson?

Could he have made a settlement for his original clients and is now giving Karen some space to gather thier money. Any good attorney would wouldn't they.

By: Anonymous on 5/20/08

I've done my due diligence and have found there is enough fraud on Karen and Josh already to put them in jail. And there are folks who want to leave them in charge of their money? I'm guessing they aren't paying attention to the news or refuse to believe what they hear. Karen and Josh are going to jail! They have passed 'Go' to many times. It's prison time!

By: Anonymous on 5/20/08

id like to know how all these investors found eachother, what a joke! No suit against Karen yet of any magnitude, contractors and builders are getting their property back because karen isn't responding to their suits. Your FTD property is danger of being taken over by leins, insurance problems, taxes, foreclosure, more and investors are waiting for a meeting? Dah. karens trying to take all from you. waiting for the state to help it should have happened by now. If your lawyer is offering a meeting and not a suit get rid of him! find a lawyer that means business! and to all EFI lovers, wait and see. with charlie gone the devil was left to do as she pleased with your money. as ex employee said she doesn't give a hoot about you. has one ex employee written into saysomething nice? No. get a clue. am i missing something here?

By: Anonymous on 5/20/08

you people need to stop listening to all these great ideas and start taking your own action, face it investors, your money is all tied up in LLC's owned by Karen, start law suits with your own attorneys or Karen will manage to manipulate the court system by getting all those properties in names you will not be able to trace, Your money went to pay you interest payments, this is a practice thats been going on for almost 3 years, borrowers loans were increased due to funding for interest payments, loans were fully funded for interest payments, get off this blog and call an attorney cause all this is doing is wasting time and money and giving Karen the upper hand, trust me, she is vicious and doesnt give a hoot about any of you whether you are in her little circle or not, she is out for numberal uno and that is her, Josh doesnt even fall under that category

By: Anonymous on 5/20/08

Congratulations Fredrickson for delaying the meeting. Karen needs your type of support. Who's side are you on? Investors are now waiting on you and you can't make up your mind on a date? You alone are strangling the investors by the throat. Granted maybe you do have a really good plan up your sleeve but remember KAREN WON'T WORK WITH YOU! Either she's in her office or out entirely. Don't think you can work with her – just call her husband up and ask. For far less money the investors could have had a receiver appointed by now. Way to go Fredrickson! I'll support you only if I find out later that you are taking action right now. Otherwise, why are you wasting our time?

By: Anonymous on 5/20/08


Just another dey again. Meeting postponed to next month. Congratulation


By: Anonymous on 5/20/08

To wake up call and all,

AMEN to wake up call! At this point I barely feel sorry for the investors. Get a suit filed ASAP! Are you all going to let Karen and Josh ride you like fools right to the end? All talk and no action. Stop crying and file suit! Karen has to be loving these ideas of managing committees and meetings to come at some future date. Just more delay, delay, delay. Everyday that goes by is just more money you investors kissed off. No reason to wait for the Fredrickson meeting. If it's a dud of a meeting, aren't you going to feel stupid for waiting. File now!

By: Anonymous on 5/19/08

Has anyone heard when the meeting is going to take place, please let us know

By: Anonymous on 5/19/08

You have to hand it to Karen. She disrupted the last meeting and made it all about her. She will surely do the same here. Whether you attack her or praise her she will undermine your purpose. Don't you think. Who succeeded at the last meeting Ron or Karen?

By: Anonymous on 5/19/08

Are we having refreshments at the fund member meeting? Freddie Wright is living in his car and probably could use a sandwich and drink of water

Folks hasn't Karen and Joshua taken advantage of enough of us long enough. Now she's coming to the meeting with and hand picked list of advisors – to placate us.

We need an independent court appointed and court supported person to take over all of Estate FInancial and all of their related companies. Just replacing Guth and the fund manager is a total waste of time.

Anyone now wen this investor meeting is going to take place?

By: Anonymous on 5/19/08

K in Paso says:

To Insider & Anonymous

I am sure it will come to light son. In the meantime, mcuh of the money will be gone while people still beleive in Karens stewardship.

By: Anonymous on 5/19/08

To Insider & Anonymous

That's what it looks like to me too, but we need proof and a timetable. Something the courts could order to be discovered.

By: Anonymous on 5/19/08

to K in Paso

Anonamous has it correct. Instead of funding construction Estate used the construction funds to make interest payments that way all payments were on time and in full. Everyones happy untill the money runs out. There wasn't any problem till the payments stopped flowing was there?

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