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 5/30/08

Im sorry but because i do not know who these people are who are wanting me to email them, i am very reluctant to reveal my identity thru this blog or to an email address listed in this blog. I will think about how i can help thru the weekend, take your recommendation of contacting the people listed thru government agencies into consideration and let you know. I am currently employed and wish not to have my identity revealed to unknown blogger who might have some affiliation with my current employer or give someone who might be blogging on EFI's behalf without anyone knowing that to have that information to share with EFI staff or anyone working on their behalf. It surprises me that you as investors have not been able to get ahold of the records that prove everything that i have revealed, because everything was done on their computers thru their programs.

By: Anonymous on 5/30/08

K in Paso says:


Just remember folks…


In due time, Karen's activities going to be diposed.

By: Anonymous on 5/30/08

K in paso:


can you explain #2 in more detail.

thanks

By: Anonymous on 5/30/08

Just remember folks…


1) Until we can prove fraud Karen can use OUR money for her legal defense.


2) If she is voted out she can be reimbursed for her expenses from OUR money.


3) Karen's other companies OWE us over 25 MILLION DOLLARS according to the 2005-2006 balance sheets.


We need DOC, DRE, and the DA involved… please file those complaint forms.


By: Anonymous on 5/30/08

to ex-employee


Thank you for your desire to help! Please do make those phone calls, I know first hand that the DA's office would like to hear from you.

By: Anonymous on 5/30/08

To ex-employee:


Please don't waste any time. Call Vincent Otto of the FBI and Chris Lewis at the DOC. The DOC number is 916-327-7585 and then ask for Chris. The FBI # is (805) 346-2728 and ask for Vincent Otto. If you truly care about the investors, please make these calls right away!


You should also know, the lawyers generally act on a civil basis. Criminal charges are generally executed by a state or Fed agency. Please contact these agencies! Sadly though, most of the information the agencies have, they WILL NOT share with the lawyers. The investors are left to find out this information by themselves. Your contribution would be more than appreciated. I highly suggest you write to one of these emails in the below blogs! A whistle blower is exactly what the investors need for this case. You will be indemnified of any wrong doing if you chose this path. Ask for complete protection before you talk to authorities. Please, please do this! Good luck!


By: Anonymous on 5/29/08

The website list doesn't tell us much about the properties. I know APNs and addresses have been requested, but in the mean time, if anyone knows whether a project is vacant, under construction, or complete, please email effundinvestors@yahoo.com.


Stefan

By: Anonymous on 5/29/08

TO EX – EMPLOYEE!!


I cant tell you how much your help would mean to so many of us. We are spending hundreds of man hours trying to get a handle on this mess. The only thing we know for sure is that Karen has lied every step of the way and we dont have access to the books. I have spoken to dozens of seniors that have lost everything, some even their homes and they need help.

I feel that your best contribution would be to communicate with one of the attornies working on behalf of the fund. They need all the evidence they can find to make the case to replace Karen. Also most of the agencies are looking for someone like you to move forward with a criminal case but they are not going to protect the investors.

It is up to you and all of us who are proactive to provide them with what we know. If you would contact me on a secure e-mail site I can connect you with the people that will use your experience to actually save what is left for the victims.

Please know that our interaction will be confidencial.

This is your chance to be a hero!!!

Reach me at effundinvestors@yahoo.com

By: Anonymous on 5/29/08

TO EX – EMPLOYEE!!


I cant tell you how much your help would mean to so many of us. We are spending hundreds of man hours trying to get a handle on this mess. The only thing we know for sure is that Karen has lied every step of the way and we dont have access to the books. I have spoken to dozens of seniors that have lost everything, some even their homes and they need help.

I feel that your best contribution would be to communicate with one of the attornies working on behalf of the fund. They need all the evidence they can find to make the case to replace Karen. Also most of the agencies are looking for someone like you to move forward with a criminal case but they are not going to protect the investors.

It is up to you and all of us who are proactive to provide them with what we know. If you would contact me on a secure e-mail site I can connect you with the people that will use your experience to actually save what is left for the victims.

Please know that our interaction will be confidencial.

This is your chance to be a hero!!!

By: Anonymous on 5/29/08

rest assured investors, i am not afraid of karen guth or joshua yaguda. In fact i would say with most certainly that they have no idea that i have even posted to this blog. I have not worked for EFI for over 2 years, but rest assured this downfall of the fund and EFI in general started before i got there and escalated when i left. I have had no contact with EFI staff and am not worried about any repercussions because of what i have said. I might be concerned what future and present employers might think about me me revealing private company information but the way i see this is that there are over 1500 people whose money has been swindled and i feel it makes me a better person to release this information than to sit back and watch investors hard earned money waste away to nothing. If the DA ever decides to get on the band wagon and get these crooks off the street, i will be willing to testify what I know, and possibly i will be notified by other agencies for example DRE, or Dept of Corp, and I will not hesitate to tell the truth

By: Anonymous on 5/29/08

The way Karen treated the Borrowers of these projects may result in some liability to all. Of course that will depend on any of them to accually muster the resources and be willing to take the risk of a lawsuit.

By: Anonymous on 5/29/08

Another dirty little secret that Karen would rather you not find out is that when loans were partially repaid, she selectively doled out the proceeds – not on a pro rata as she is required by law. Whoops! Caught again. It's all piling up and coming to light. Pack your toothbrush and cigarettes Karen and Josh.


Stefan

By: Anonymous on 5/29/08

WELL,


I finally had a chance to look at the loan portfolio on the website. Its much more obvious why Karen was so reluctant to share information until the DOC pressure her. Too many question, example;

Why some of the loans that were made in 2002-2003-2005 etc matured long ago was not resolved sooner?

There will be much more to see. When notes will be compared with borrowers, we'll see much more discrepencies.

I don't think the DA has the resoureces and capilities to review everything. It will go furthere than the local agencies.

GOD save the queen!

By: Anonymous on 5/29/08

insider says:


I was looking at the Financial Statements posted on the estate website.


There is a good explenation to your curiosity regarding the exponential growth in Karen and Josh's ownership of the fund. As loans became due, most of them were refinanced with the FUND being the new lender with ever increasing amounts to cover unpaid interests. Again, most projects were not completed on time because funds were not being available to subs and contractors.

All investors must beg the simple question; Why hasn't the DA got involvolved investigating the obvious "PONZY SCHEME"?

Callers should direct their questions today on the radio. Seems that the entire case is too complicated for the local office and will be handled by the FEDS. People!!! we have not seen anything yet!!!

Stay tuned.

By: Anonymous on 5/29/08

New management means answers to questions and a plan for getting information and making decisions on what happens next. We may have to get a receiver but I think without more information it is a mistake.


I called Mr. Frederickson's office and more information about the meeting on the 17th is supposed to come out soon. I am ready to hear the facts and know what my options are.

By: Anonymous on 5/29/08

Remember the DA is going to be on Dave's radio show at 5:00 pm 920kvec.com. Call in!

By: Anonymous on 5/29/08

At first glance it looks like Estate owns 22% of the fund this should present a extra difficult challenge to wrestle control from Karens clutches. It will be necessary to secure more than two thirds of the remaining stock holders. Who says she's not smart?

By: Anonymous on 5/29/08

Without the help of a pro none of the numbers will make much sense at first glance. Mr. Cooper is right, it is too complex to just have a new manager take over the Mortgage Fund. We need to talk about more than just one option, court appointed receivership needs to be on the table too.

By: Anonymous on 5/28/08

The numbers of affiliated companies is more, I am not even sure the accountants know all the LLCs she is a part of.


I looked at the figures on the website, and I am wondering how the amounts could differ from January if no payments have been received on any of these loans (per the website)?


By: Anonymous on 5/28/08

I was looking at the Financial Statements posted on the estate website. Very interesting. In 2003 the holdings of the interelated parties Josh, Karen, Charlie were somewhat modest 7% of total and a little over one million but by 2005 and 2006 they represented 22% and twenty five million. Tell me they didn't know they were in trouble then. Thier statement says all is good and all payments are current. Yeah all current by using refinancing and putting more and more people in jepardy. Take a look the numbers are stagering. All the accountants are not taking any responcibility other than the financial statements as provided by Estate add correctly. They had no real accounting oversight.


Stefan

By: Anonymous on 5/28/08

Barbara:


I also have reviewed the Estate Financial accounting on their web site, with particular interest in the two projects I own.


I agree with you, the numbers make no sense. Why-because this accounting does not reflect the fractionalized TD holders in those projects.


This is why there is absolutely no way to have one person manage the fund and someone else manage the interest of of the TD investments. It just plain and simple, won't work.


A forensic CPA needs to be hired to put out a real accounting so all of he investors and the borrowers know where their money went and the current/real value of their assets.


Want to know more? I can tell you lots more and send you some pictures of some of Estate's unfinished projects. They are quite horrific. My email is ron@cooperdevelopment.com

By: Anonymous on 5/28/08

I don't get it!!

I am sure you were all glad to see the new online accounting system that EFI put in place so we could feel more confident about their bookkeeping.

So let's just talk about the first entry. the company is First Press Partners, one of Karens's companies.

Loan #B100-04, there are five seperate amounts shown totaling $261,083.00

it is almost three years behind in payments and if you click on the loan number the profile tells us that the loan balance is $719,000.00

I am not a math major but somewhere we lost over $450,000.00

And to add more confusion I know for a fact that in January that loan number owed $944,921.00

I need some help to figure this out. On just one loan the numbers have changed three times.

LUCY YOU HAVE SOME SPLANING TO DO!

Anyone who feels this is trustworthy accounting of your money let me know.

I would like to check out more loans but why bother the numbers arn't real. If you would like to comment to me you can contact me at effundinvestors@yahoo.com

By: Anonymous on 5/28/08

To Insider

Mel M is another lackey of Karens. He's invested with Estate Financial and has been hired to perform inspections of uncompleted projects and to provide estimates of what it will cost to complete them. He meets with borrowers/builders who are facing foreclosure, makes recommendations to Karen as to what should be done and is then promptly ignored (speak with the borrowers on the Desert Hot Springs Village (B101-06)for one example. He is not a licensed contractor. As to what he is being paid, who knows? More than he was receiving in interest payments. He's just another one of Karen's lemmings hired to try to pretty her up.

By: Anonymous on 5/28/08

Who is this Mel McColloch and where did he come from?

By: Anonymous on 5/28/08

Be Wary of Mel McColloch

By: Anonymous on 5/28/08

So now she jambs her hand picked realtor down your throat at 6% for a min. 6 month contract. Your judgment of value is by the person making 6% on a over million dollar sale. I would venture to say she will make far more on the sale whatever you get than her fund investment was. The realtor is now Karens lackey and she will speak as programed. Did anyone ever think of getting a legitimate appraisal. No we don't work that way.


Stefan

By: Anonymous on 5/28/08

I just spoke with a very helpful deputy at the DRE. There are complaints being filed by investors and the DRE is looking at them very seriously. They need the investors to file their complaint forms asap so that the DRE can establish that a pattern exsits in the way EFI conducted business, specificly in the area of failure to disclose important information about the fund to investors and potential investors.


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


http://www.dre.ca.gov/cons_who_to_call.html

http://www.dre.ca.gov/cons_complaint.html


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

Corporations:


http://www.corp.ca.gov/ENF/about.asp

http://www.corp.ca.gov/ENF/default.asp

http://www.corp.ca.gov/ENF/complaint.asp


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

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


Let's get on this folks. The DA can't move until the DOC & DRE complete their investigations… we are the key to giving them the info needed to make a good case against EFI.


NOTE: A follow up on the SEC. I had three phone conversations with a diferent office yesterday… couldn't get a bite. If any one has had DIRECT contact with them and was able to get them interested, please post specificly what it was that caused them go take interest.

By: Anonymous on 5/28/08

This is also a message from lendersviewcentral…This property says it is in the FUnd? If it is,why do they need 100% vote? Is this a 1st Trust Deed Property? Has anyone received a ballot? Did the ballot approve the realtors? Shouldn't we spread this out amoung many realtors to avoid any windfall to one realtor (who is also a Fund Investor)?


From Estate Financial, Inc.

To Estate Financial Mortgage Fund, LLC

Subject Loan B104-06

Date 5/23/2008 3:49:57 PM

Message Update 5/23/08

B151-06 Alan Little Custom Homes


Dear Investors:


The foreclosure on this house is now complete and ownership has reverted to the investors. The house is finished and has received the final by the City of Pismo Beach.

We assume that you will want to sell the house. We are recommending that you list the property with Gordon and Diane Hansen of ReMax. They are investors on this and other properties with Estate Financial. They have told us that the asking price could in the $2.1 to $2.3 million range. They are currently preparing a market survey for this property.


Enclosed is a list of the other investors on this loan. Enclosed also is a ballot for your vote to proceed with listing the house for sale. If you have any questions, please call me at 805.238.6570. Please remember, that when the house is finally sold, 100% will have to agree to that transaction.


Thank you in advance for returning the ballot within the timeframe on the following page.


Sincerely,

Mel McColloch, Consultant


(Ballot sent to you via mail 5/23/08)


Stefan

By: Anonymous on 5/28/08

The Message below was from the the lendersviewcentral website. Question – Did anyone get a ballot on this??? And was approving the realtors included on the ballot???


From Estate Financial, Inc.

To Estate Financial Mortgage Fund, LLC

Subject Update on Loan B531-05

Date 5/23/2008 3:49:57 PM

Message Update 5/23/08 on Loan B531-05

Morro Bay


Dear Investors:


The vote is complete on the above loan. More than fifty one percent (51%) of the dollars invested in the loan voted to sell the house 'as is'. Therefore the house will be listed with Gordon and Diane Hansen who are with Remax Realty. Gordon and Diane are investors with Estate Financial and have an interest in seeing that the house is sold at the highest price possible. They have recommended the house be listed at $1,142,000. The total funded on the house, plus sales expenses was $1,275,051. We will keep you advised of any reasonable offers on the house. Thank you for your help, input and participation in getting to this point in your investment.


Sincerely,

Mel McColloch, Consultant

By: Anonymous on 5/27/08

After reading all this, is there anything Ms Guth can do right beside take the investor's money? What a scam!

By: Anonymous on 5/27/08

to Mike Knecht


To add on to your comments. Would not a good manager have brought the fact that these properties were underwater years ago and allowed the investors to participate in solving the problem at an early state and avoid the tragedy you have now. Shouldn't she have come to the investors and said we're not funding construction and we're not paying taxes. Maybe they did with thier friends and thier friends got out.


Stefan

By: Anonymous on 5/27/08

The unpaid tax bill seems like small potatoes when you compare it to the compensation Karen paid herself. Still… of the eighteen houses that Doya Partners still own on Regio Place in Atascadero, the unpaid tax bill is slightly more than $147,363.00. Next tax bill will bring the unpaid tax bill on these properties to $221,044.00. I don’t know much but I do know that who ever doesn’t get paid, it won’t be the tax collector. The tax collector always gets paid and it comes right off the top.


What is the overall unpaid tax bill for the properties held by the mortgage fund? If the Regio Place Development is any guide, the mortgage fund properties owe millions in unpaid property taxes. How Karen can say with a straight face she is the best management choice once again defies imagination. A manager would have

1)Set aside enough money to finish the projects, especially if they were also a partner in the project

2)Built the houses out and sold them in a timely fashion.

3)Had the money available to pay the taxes as they became due, and not incur penalties.


I ask Karen once during a meeting what the APN’s were on the mortgage fund properties and she refused to reveal them. Her reason’s for that are becoming quite clear. Anyone who would like to double check my figures can go to the SLO Tax Collectors web site and start with APN 049 104 002 and go through to APN 049 104 032. You can tell the houses that aren’t owned by Doya Partners. Those are the houses who don’t owe back taxes.

By: Anonymous on 5/26/08

One thing for sure if you leave it with Karen pretty soon she will be making nothing because all the money will be gone.

By: Anonymous on 5/26/08

to wake up!!


Thanks for posting your infomation about Karen's income. Unbelievable!

Your data could be very helpful in our attempt to get control of our investments.

I have no doubt tha a new manager would not cost more than Karen is taking from us now.

many people are very concerned about what the investors would have to pay for a new team.

If you can verify your numbers you could be a major help in moving our plan forward.

I can connect you with the right people if you would like to help.

effundinvestors@yahoo.com is a secure e-mail address.

Please send your contact information to that address.

Everyone needs to know that those paying for the present action can only go as far as an investor vote after that it is every man for themselves.

The time has come, Anyone who can help, step up now when we have our best chance to succeed.

By: Anonymous on 5/26/08

To those of you who are worried about what a new manager will cost – do you have any idea what Karen charged you for mismanaging your funds in 2007? Take a guess. In 2007, she took approximately $5,630,000 in fees for servicing our loans. Yup, that's $469,135 a month. That's $117,283 a week, or $2,932 per hour. She's worth it, right? Think that she's not collecting fees in 2008 on all our nonperforming loans? Still worried about what competent professionals will charge? Wake up.

By: Anonymous on 5/26/08

to curious


There is truth to the real estate decline being a problem. No one can argue that. The issues with Estate, Hurst, and Gearhart extend far beyond the problems of current economic times. Could other hard money lenders be having problems? Of course. These problems could even be ligitamate. Do not confuse these with our local problems.


Stefan

By: Anonymous on 5/26/08

Are hard money lenders All American Funding or Point Center Financial involved in similiar fraudulent activities? Are there hard money lenders that are legitimate?

By: Anonymous on 5/25/08

My personal thought is the DA isn't going to do a thing. I know someone who talked with him and it's evident he's doesn't care to be active (our hero). I think either he's already ate out of Karens hand or has a reason to fear. The DA office will tell you they are taking names and numbers but try calling them and see what questions they ask. I called 3 times over a 1 month period and they just asked for my email address so they could forward that DOC/DRE letter to me, the one posted on this blog. Two out of three times they didn't ask for my full name.


As for the contract stating they aren't covered by the SEC – oh, yes it is! Any Ponzi scheme will put the SEC into attack mode. And that's exactly what EFI has become. And even worse! The SF SEC does care!

By: Anonymous on 5/24/08

TO oh well,


Lets not take issue with SLO firm. So far they are the only organized movement we have. June 17th is still a couple of weeks away but we now know that a plan is going forward. For anyone who has been involved in legal action you will know that if you dont dot the I's and cross the T,s all your work can be thrown out. There is no faster way! All the agencies that are involved want us to bring them the evidence and then they will go after Karen and Josh. They are not going to help get our money back.

Now that we will be taking another step forward I hope all of us are prepared to do whatever it takes to get control of our investments.

We may have to swollow a big pill when all in the open but we will at least save what we can. I emplore you all to get behind this action step up to help if you can.

By: Anonymous on 5/24/08

Looks like the SLO firm has it nailed. Put it off, off, off, investors and their lawyers alike will wait. move forward on your own. Investors frozen, Karen still taking. What a blessing for Karen.

By: Anonymous on 5/24/08

REGARDING THE PROPOSED MEETING FOR EFI MORTGAGE FUND INVESTORS:


You will be receiving a letter in the mail regarding the meeting, next week. The meeting is scheduled for June 17, 2008 at 10:00AM at the Madonna Expo Center in San Luis Obispo. To date, that is the information known. Be on watch for your letter, and PLEASE MAKE A GOOD EFFORT TO ATTEND THE MEETING! SEE YOU THERE!!!!!!!

By: Anonymous on 5/24/08

to estate investors


You need to let ex-employee know you appreaciate thier help and mean them know harm. I assure you Karen has told them different and has them scared for thier own well being. Embrace this person. Thank them and guarentee them thier safety. This is exactly what the DA needs to make a case. And or your attorneys need to collect Karens assets.


Stefan

By: Anonymous on 5/24/08

to Think


I called the SEC Washington DC office and described the type of investments offered by EFI, I was told that the SEC does not have jurisdiction over EFI and the invesments they offer. Our contract with EFI also states that these invesments are not covered by the SEC.


No matter… Ex Employee needs to contact the DA's Office ASAP.

By: Anonymous on 5/24/08

to all estate investor


ex-employee is your smoking gun.Give her/him immunity and welcome her/him with welcome arms. This person knows the whole story.

By: Anonymous on 5/24/08

Are you still on ex employee? Any take on the below recorded doc? How does this fit into your story?

By: Anonymous on 5/24/08

Document Number 2007057751


Date 08/24/2007 Pages 2 Document Type DEED(GRANT,JOINT TENANCY,QUIT)


Grantor

FIRST PRESS PARTNERS LLC


Grantee GUTH KAREN


This is an interesting one in the public records. Anyone clued in to this particular record?

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 oh and those uncollectable loans to republic properties, karen guth has those funds, someone really needs to get ahold of her accounting records for construction disbursemnts, its all there, and every person who worked or works for efi who holds a real estate license is guilty of fraud also, so those people should come forward, ask for immunity and help these investors who trusted you with their life savings get some of their money back and the only way they gonna get it, is going after karen personal assets, and by the way, josh holds the brokers liscense for efi

so i guarantee ya if it comes down to her or josh going to jail, she gonna claim she not the brokers licesne holder andlet josh take the fall she is a viscious viper, he once told me that she had never said the words "im sorry" to anyone not even him all his life, and about fell over when he heard her say it to me