Front Page  »  

EFI forced into Chapter 11

June 25, 2008

By KAREN VELIE and DANIEL BLACKBURN

Creditors forced hard money lender Estate Financial Inc. (EFI) into Chapter 11 bankruptcy proceedings Wednesday in Santa Barbara’s Central District of California United States Bankruptcy Court.

Five petitioners listed more than $6.9 million in debt owed by EFI as the catalyst for their action. The petitioning group includes builders who claim EFI failed to follow through on agreements to fund projects. They further contend the lender did not defend against a lawsuit as agreed.

Some investors allege EFI failed to return their investment after the sale of secured property, and failed to record their names on deeds of trust.

“The purpose of their [the petitioner’s] action was to protect fractionalized interest holders and builders,” said Ron Cooper, a Los Angeles developer who was instrumental in starting the action.

The court’s ruling means that, as of Thursday, all EFI financial transactions will fall under review by the U.S. Bankruptcy Court. The action also requires EFI owners Karen Guth and Joshua Yaguda to provide to the court monthly reports incorporating all purchases, expenditures, and company actions.

“She is under one hell of a scrutiny right now,” Cooper said. “I feel great about this.”

The court plans to serve Guth, EFI’s president, with papers on Thursday.

Asked if she was aware of the Chapter 11 bankruptcy proceedings, Guth said, “Who did it?” She then refused further comment.

Guth will have 20 days to respond, by either filing a motion disputing creditor claims, or by demonstrating to the court that all EFI’s debts are current.

“There are 1,339 defaulted loans listed on her Web site,” Cooper added. “How could Guth, with a straight face, make a plea to a bankruptcy judge that she is paying her debts current?”

In approximately a week, the group plans to ask the judge to appoint a trustee to manage Estate Financial’s investments.

“Karen Guth stated at the Madonna Inn meeting [on June 17] that EFI will take in $4 million in the next few years,” Cooper said. “She plans for $2 million of that to go towards management fees. We don’t want that to happen.”

One of the petitioners, Steve Gardility of Encinitas, a builder who did significant business with Guth, claims losses of more than $6.26 million due to EFI’s negligence or fraud. He wrote in an e-mail to UncoveredSLO.com that he encountered serious problems in getting EFI to make construction loan payments when due. That in turn caused him problems with his subcontractors.

“I received many threats from some subs for non-payment, and worthless vouchers issued by me,” Gardility wrote. “I have used all my funds, personal loans, substantial credit lines, trying to complete my projects. It is still a mystery why EFI didn’t have the funds available when each contract called for the funds to be segregated and paid within two weeks after submittal of vouchers.”

E-mail comments or questions regarding this action to estatebk@ymail.com . A meeting for creditors hosted by the petitioning creditors is slated for July 8 at 6 p.m. at a site to be announced on UncoveredSLO.com.


Loading...
Subjects:         
Related:


19 Comments
Inline Feedbacks
View all comments

By: Anonymous on 6/29/08

When I wrote below "For those of you who think Ron did this after Roger filed, that's wrong" What I meant to say is "For those of you who think Ron STARTED this after Roger filed……"

By: Anonymous on 6/29/08

Again, it takes many weeks for a BK Ch 11 to be created. For those of you who think Ron did this after Roger filed, that's wrong. There is no way he could pull off a BK that fast. Roger was trying to keep his action for placing a receiver secret, so he was quiet about his plans. I don't blame Ron for taking action because it "appeared" no one was going for "any" action since Roger was so hush about it. It's foolish to think Ron filed in "response" or "against" Roger. It was already in the making. If Roger would have overtly said from the beginning that this was his intent, he most likely would have had a rush of investors join his cruisade and would have been more effective faster.


Also, for all of you who believe that the judge would have favored for a receiver, don't be so sure. Hanno was very limited since he was reduced to an 'independent auditor.' That's seriously different from a receiver's power to investigate. His funding was extremely limited as well. Also, he is not a forensic CPA. I'm not claiming he couldn't find fraud either, he very well may have. Let's say he did get appointed as receiver and with the DOC help he probably would have, but regardless consider this ….


MOST IMPORTANTLY, after a STATE level receiver (helped by the DOC or not) is appointed Karen Guth could have very easily filed a FEDERAL CH 11 bankruptcy on HERSELF. This is a very common reaction of business owners when a STATE receiver is appointed. Her decision to act on a Federal level would completely take out any action on a STATE level, including the placement of the receiver. And again, we would be back to square one, to the Ch 11 BK. Of course, this is after much time has passed. So in my opinion, Ron saved a couple months by filing the Ch 11 BK now.


I suspect those of you who feel Ron is some type of crook HAVE NOT spoken with BK attorneys, trustees, or receivers to find out what your options were. Call some on Monday and run this scenerio past them. You may be very surprised and humbled.

By: Anonymous on 6/29/08

duped by the coop says:


Wwhy should conservations be kept private with cooper from all of the investors. his agenda is not our agenda. this is why he wants to keep conversations secret. he needs money to go forward. a private sales chat is what he wants. two crooks looking for a hand out. he has screwed up a situation that could have been resolved on july 22. now karen will have until sept. to fleece us for more fees–under the table. good going smart guy cooper.


So, how much information have you received so far? None what so ever. The RECEIVER Fredrickson asked for was watered down to an "INDEPENDANT AUDITOR" whis is really amounts to not much. Top of it, his hand were tied for all practical purposes. At least Cooper had the balls and move forward. This way there will be real information without limitation what happened to you money. What have you done to date? Nothing, just whine and cry waiting for the big MIRACLE.

By: Anonymous on 6/28/08

Befor you make any criticism against Cooper or the ones who filed BC please e-mail with questins and concerns.

You must understand the legal implication of the process


estatebk@ymail.com .

By: Anonymous on 6/28/08

TO Duped by the Coop:


Another blog by someone who is afraid to tell us his real name. My name is Alex Porter – I am a Trust Deed holder in a trust with my family.

If you don't include your name in your blogs, particularly if you are criticizing someone by name, your blog has no creditability. That's just my 2 cents worth.


0

By: Anonymous on 6/28/08

to: estatebke@ymail.com.

why should conservations be kept private with cooper from all of the investors. his agenda is not our agenda. this is why he wants to keep conversations secret. he needs money to go forward. a private sales chat is what he wants. two crooks looking for a hand out. he has screwed up a situation that could have been resolved on july 22. now karen will have until sept. to fleece us for more fees–under the table. good going smart guy cooper.

By: Anonymous on 6/28/08

This is an email address established by the Petitioning Creditors in the BK as a resource for anyone to ask any questions that they may have including why the BK was filed.


Responses to your questions will be sent directly back to you and not shown on any blog. It is private and accurate. By the way it is ymail not ymmail.

By: Anonymous on 6/28/08

To Sickened

I was wondering the same thing. How is a bankrupcy going to help us investors? TI thought thet with a auditor in there we would finally get some results?

By: Anonymous on 6/28/08

I have a question that all investors should be asking themselves. Why did Ron Cooper file for Chapter 11 bankrupcy? Not to benefit the investors cause there was already an attorney working on behalf of investors. The judge had already ordered an independent evaluator to review EFI's books and report back to him. There was already a court date scheduled to determine whether or not a receiver would be put in place. We all know that the evaluator would come up with enough evidence for the judge to appoint a receiver. The DRE must take action against EFI to suspend and revoke their licenses, especially since the DOC has joined with Roger Frederickson’s plaintifs in their lawsuit. Once the DRE pulls EFI's license, the judge could have ordered that a receiver take charge of EFI as well as the Fund, to the benefit of all investors – first trust deed investors and mortgage fund investors. All of this would most likely have been accomplished on July 22, or earlier if the DRE takes action sooner. So what is Ron's motive? Now, there is a chance that Karen will be able to stay in place, continuing to collect her fees, continuing to screw us until Ron's attorney takes it to court – which could be months. Check with the Santa Barbara court to see how soon cases get scheduled there. Who is working on behalf of the investors? We know. An evaluator had already been placed. Who is working on behalf of Ron Cooper? Ron Cooper with his bankruptcy filing. Do you think that what is best for Ron Cooper is best for the investors? We don't know how much of our investments went to the builders, many of them say not enough. I want to know how much was paid to them for their projects and what was done with the money – whether it was enough to finish their projects or not, I want to know. The way to find this out is through the evaluator/receiver – and that is exactly the direction that we were headed before Mr. Cooper filed in Santa Barbara court.

By: Anonymous on 6/28/08

Koto says:


If you really meant "ymmail.com", it's a domain name from red China (Lin Qing (01688@126.com)

+86.02031255585

GuangZhou

GuangZhou, 510000


Contact estatebk@ymail.com for information.


Please don't try so hard to discredit any one. This is a very serious matter for many even if you disagree

By: Anonymous on 6/28/08

Anonymous


The e-mail address was set up by Ron Cooper for information regarding the BC filing. as you may gather, there will be nothing coming from EFI

By: Anonymous on 6/28/08

If you really meant "ymmail.com", it's a domain name from red China (Lin Qing (01688@126.com)

+86.02031255585

GuangZhou

GuangZhou, 510000

CN


0

By: Anonymous on 6/28/08

Who is behind the email

estatebk@ymmail.com

? Is this uncoveredslo or someone else?

By: Anonymous on 6/28/08

To Anonymous,

To anonymous

Where did you get your informaation about Hanno Powell not working anymore? I thought he was working for the judge???

By: Anonymous on 6/28/08

Does anyone have any information on the meeting in Atascadero at the Carlton Hotel on 7/8? Who's putting it on and what is it about?

Thanks.

By: Anonymous on 6/28/08

Someone told me evaluator is not working anymore. Rogers not signning paperwork so Mr.Powell can keep working? Why would Roger not want Hanno workng? Is that true?

By: Anonymous on 6/27/08

Little wasn't involved in the Hinds Ave. project, it was Dan Lloyd. Little was involved in the Cypress Ave site. 21st Century was the lender on that (non)project.

By: Anonymous on 6/27/08

Fact of the matter is, Karen and Josh "aren't going anywhere." That is, they aren't going anywhere FUN!

By: Anonymous on 6/27/08

I just reviewed my notes from the "fund investor" meeting held at the Madonna Inn. They say – they ALLOWED the Department of Corporation to take their licenses. I can only wonder if they were consulted before the DOC filed their joinder asking the SLO Judge to appoint a receiver.


LAWSUITS – they are being handled properly. Not true. Some of the defaults caused by "a change in attorneys" have now gone way past the date where Guth/Yaguda/Estate can move to set them aside.


TITLE INSURANCE UNAVAILABLE. Ok i checked. None of the big three title insurance companies will touch anything with the name Estate, Guth Yagude on it. That's the truth. So how is the fund going to generate approx. $4M in cash within the next 60-90 days. It can't sell anything that requires title insurance. So where is the cash coming from?


FORECLOSED PROPERTIES – NONE of the foreclosed properties have been placed in the name of the fund or the fractionalized TD holders.


And this list goes on and one. You know what I don't understand – Why Mother and son cannot tell the truth. Must be too painful.


By the way, the DRE is going to revoke Mom and son's DRE licenses next week. Ooooops folks. I guess Karen and Josh are going bye bye – even though the told us they were "not going anywhere".

By: Anonymous on 6/27/08

Can anyone explain the $545,00 in management fees that Ron Cooper's family is suing for? Why would he get management fees for building his own project?


It is very common in loan construction cost breakdowns for the borrower to take a management fee. It is basically what they live on (or pay their office staff) while they are building out the project.

By: Anonymous on 6/27/08

What makes this case so interesting it seems apparent Karen was using some of this money for her life style. Juries just hate that! Other similar cases involve Cedar Mortgage Funding in Monterey and Emvest in southern California. We could all learn from these two. Find the SEC filing for Emvest and just insert EFI. Cedar Mortgage Funding recently had a trustee appointed after a receiver was in place. The owner trumped the receiver position, sadly after the law firm went through the whole process of getting him there, by filing Ch 11 in Federal court. An obvious option for Karen after a receiver was placed. If you google Cedar Mortgage Funding you'll see articles. Follow them by date and the events are eye opening. The EFI creditor's current involentary filing is not very common but came recommended by many BK attornies and trustees when facts were layed out infront of them. A choice that leaves Karen in a position to stop taking her management fees and stop any more hemorraging.


0

By: Anonymous on 6/27/08

to anonymous


Although I think you might have a hard time convincing the investors that personal gain wasn't a motive I would say often this type of thing finds its origin in the attempt to cover up poor buisness decisions and managment. One coverup leads to the next and on we go. It usually takes blind faith and greed by the investors which seems to at the least be a common factor with this case and the babtist foundation. I wonder if this will be on American Greed itself.

By: Anonymous on 6/27/08

insider & DBSLO-


I agree with both of you. This is highly complex and I have been looking for similar cases in the past for which to compare this to and the closest one I can find in both scope and operations is the case of the Baptist Foundation of Arizona.


It took ten years to sort everything out from the time BK was filed – and the directors didn't even commit fraud for personal gain – they were just incompetent.


Google Baptist Foundation of Arizona and you will see the similarities.

By: Anonymous on 6/27/08

to DBSLO


I submit to you this is far more complicated than the investors want to admit. For the most part they probably signed off on most actions. For instance. Lets say a loans not looking so good. They have funded most of the money with little progress. They realize the builders are not able to finish so they simply wright a new loan. Either they convince the first trust deed players to stay or they replace them with new people and then they fund the rest through the Fund with new Fund investors. They get a new origination fee even though maybe the first loan had only been 50% funded prior to payoff which they collect thier fee in full. So now you have all new committed money and a pool to start paying the interest on this loan from. Things get tight and you do it again. Fund investors are not that observant since the sales pitch to them is your investment protected by the whole portfolio first deed investors are just happy the project didn't fail and they are still getting thier interest. Everything is good untill there are no more investors coming in. This is all hypothetical of course. But if this was the pattern they would argue that everyone was informed and everyone signed off on it. My point is its not called white collar crime because the people committing it are stupid. Again I don't know this is what happened I'm just saying this is the way it could happen.

By: Anonymous on 6/27/08

Insider-


*If* a crime was committed at EFI, investigators always describe the earliest date that this is provable. As Dan & Karen pointed out in the Guth divorce articles, the wheels started falling off back in 2003. When were investor funds being diverted for interest payments (allegedly)? I don't know.


What I do know is, any money taken from an investor to pay to another without the permission of the investor will be subject to judgement if the investor is not made whole. And we know no one will be made whole with EFI. Discuss this with your attorney – they will concur.


This isn't the Feds or the courts first rodeo.

By: Anonymous on 6/27/08

to anonymous


Would you go to the office if you were them. Lets grab a shovel and help dig our own grave. I don't think so.

By: Anonymous on 6/27/08

to DBSLO


Usually a bankruptcy looks very carefully at all transactions within the last specified time say 3mo. or 6mo. in this case. I don't think they will look back in term of reversing daily buisness decisions as far as you state. Although the buisness practices may be suspect and could end up with civil or criminal charges I don't think the bankruptcy court will be undoing all payments to investors over that amount of time. Like I say the most recent transactions will recieve the highest degree of scrutiny as to the bankruptcy. The concept is to prevent actions that are the result of setting up for a bankruptcy. It's just too dificult to put the toothpaste back in the tube.


0

By: Anonymous on 6/27/08

Yes, you are exactly right. I've done some research on this and it'll be a sad day for all when prior investors and others involved get their notice demanding money back.

By: Anonymous on 6/27/08

Perhaps they are all on a plane to Costa Rica. Call their cell phones.

By: Anonymous on 6/27/08

Insider – that is exactly my point. If you are an investor and you received ANY interest payments since 2003, that money will likely be subject to judgment during the bankruptcy proceeding.


This will take years to pan out and the amount of pain felt by creditors and investors will be substantial.

By: Anonymous on 6/27/08

Is anyone in the Estate Financial office today? I can't get an answer.

By: Anonymous on 6/27/08

You guys have consumed way too much coffee this AM. I'm having a "weekend special" on tin hats…any takers?

By: Anonymous on 6/27/08

to there's no hiding


The John Does could be other investors who recieved interest payments from the Fund. It now seems possible the last investors in the Fund were just funding interest payments to other investors. I'm not saying the other investors knew what was going on however they could be part of the suit to recover.

By: Anonymous on 6/27/08

I'm sure that is why Frederickson filed his lawsuit against Karen, Josh, Estate Financial and "Does 1-100" to cover any co-conspirators who have yet to be named. I for one have no sympathy for them. Those involved in misdeeds knew what they were doing and will be held accountable just as Karen and Josh will be.

By: Anonymous on 6/27/08

One of the side effect of this scam that many of the "employees" who knew what was going on will be labeled as co-conspirators. When one knows that laws being violated and not reporting it to the proper authorities, they can be charged as well. we don't theextent of the problem yet so I say this with qulification for now.

By: Anonymous on 6/27/08

DeepBlueSLO


That explains where some of the money went. With the BC filing, Karen will not be able to hide any of the documents pointing to this massive FRAUD.

By: Anonymous on 6/27/08

After Mr. Palmer's past was revealed, several commentors expressed their unflattering opinions of Mr. Palmer. You don't have to have a good case just to sue someone. Others think his lawsuit is more about retaliation.


I memory serves me correctly, Alan Little was involved with the Hinds Ave. project in Pismo. $9 million for a dirt lot with nothing to show for it. Strange times indeed.

By: Anonymous on 6/27/08

I agree. Where is the DRE in all this? What more do they need to pull the license of EFI? What's the hold up?

By: Anonymous on 6/27/08

So Alan Little got funding from Kennedy and Estate Financial? Karen sure did a great job of investigating the builders before she handed our money over to them. And how could Palmer sue if the posts were factual? If he went to jail, he went to jail. I would think that that would be pretty much a public record.

By: Anonymous on 6/27/08

Insider-


Ed Palmer was a critical player and partner with Alan Little Custom Homes. Many say he was the brains behind the operation while Alan was the salesman. Mr. Palmer became very upset when it was revealed on SLOBear's blog that he served a couple years in prison for conspiracy and mortgage-related bank fraud. His customers fled and subsequently he is suing the commentors that posted the information. So, be careful what you post.


Alan Little Custom Homes received much of their financing through Linda Kennedy at 21st Century – both are now out of business and bankrupt. The web of Paso-based hard money lending extends far and wide.


0

By: Anonymous on 6/27/08

What more does the DRE need. They should have been the first to act. The DOC has not only pulled thier permit but has joined in the Fredrickson lawsuit as plaintives. Come on. What kind of oversite and public protection is this?

By: Anonymous on 6/27/08

to Anonymous


Maybe if it was up thier ass they could find it.

By: Anonymous on 6/27/08

Hey shitforbrains (insider)


Just mebbe they found no smoking gun? Yet anyway

By: Anonymous on 6/27/08

Does anyone know whats going on with the DRE. Apparently anything short of murder must be OK with them. EFI, Karen, and Josh are all sqeaky clean if you look ar the DRE site. Thier #1 mission is supposed to be to protect the public. What's #2 protect EFI and they just got the order reversed.

By: Anonymous on 6/27/08

to DeepBlueSLO


Who's Ed Palmer and what connection is he to any of this?

By: Anonymous on 6/27/08

Insider-


I am not SLO Bear. I used to post anonymously on his blog and now that Ed Palmer is throwing lawsuits around, I decided to wall myself in behind a fortress of proxy servers, routers, and hardware encryption. I will also be starting my own blog shortly.


Keep up the good work – I enjoy your posts.

By: Anonymous on 6/27/08

unknown says:


Is al damico a bad guy or just caught up in a bad situation? who was the business man he was in a physical altercation a couple weeks ago at level 4, I would think if he has defrauded all these investers he would be laying low


Once the DOC's request for receiver gets and BC Trustee gets into the files we'll know more.

By: Anonymous on 6/27/08

Is al damico a bad guy or just caught up in a bad situation? who was the business man he was in a physical altercation a couple weeks ago at level 4, I would think if he has defrauded all these investers he would be laying low.

By: Anonymous on 6/27/08

Somebody asked me if Karen was trying to take the builder's equity then why are builders not listing as damages? Does anyone know?

By: Anonymous on 6/27/08

Three Bell Winery. The loan dispersement sheets with that info is already with authorities. Amico will have some explaining to do to prove where he spent the money. Looks as if Karen can't stand being taken by someone else but she sure can dish it out!

By: Anonymous on 6/27/08

I'm guessing but I'm pretty sure the two builders listed in the BK are not listing their equity already in the project before the loan. At least in Ron's case that looks to be true. The legal system may not be allowing it.

By: Anonymous on 6/26/08

I would assume the 545,000 is the management fees that were paid to Karen for the loan that Ron cooper received and then never received all the money that he borrowed— I believe those mgmt. fees are paid up front out of the loan, that the investor's lent. so, bottom line is if he borrowed 12 million dollars- the 545 would be taken out of that for her managing the loan, and obviously she never mgd. the loan, because if she did we wouldn't be in the mess we are in.


0

By: Anonymous on 6/26/08

To Insider,

Karen hasn't provided and records showing what was funded to the borrowers. Do the borrowers have records showing what was loaned? Without an independent accounting, we will not know. Hopefully that will be forthcoming.s

By: Anonymous on 6/26/08

I heard that Karen gave Al four trust deeds to properties to try to shut him up. Guess it didn't work. They're suing each other. Court date sometime in August.

By: Anonymous on 6/26/08

Hello out there – management fees – $545,000 – does anyone have an answer to this questions?

By: Anonymous on 6/26/08

Sorry Correction


Do you know for a fact that Karen actually gave all this money to the builders? I know you gave the money to HER. Do you have proof that she acually gave it to them. I'm sure

By: Anonymous on 6/26/08

Do you know for a fact that Karen actually gave all this money to the builders? I know you gave the money to you. Do you have proof that she acually gave it to them. I'm sure many of these builders are guilty of converting the money they got to other purposes. The question is did they get all the money or did EFI do other things with it. Thats why you have to have a paper trail. Follow the money. What I see is all these other guys are not yelling which sort of looks like they may have been in it. Only Cooper seems willing to say take a look at me.

By: Anonymous on 6/26/08

D'Amico? Fetyko? Ha, ha, ha! In my opinion, they are going to prison. I heard Karen was suing Amico in the Three Bells situation because the invoices he submitted, that she paid, were erroneous! The bill would state it was for one thing and instead he was out buying yet another car! Karen paid without even questioning the bills. That's where your money went in Three Bells. Karen didn't care whether she managed your investor money well or not. Remember she got her fees up front. And HER management fees for 'MANAGING' Three Bells. Sorta make you sick doesn't it? Here's were it is even worse. She still continued doing business with him. Huh??? Please slap me in the face someone?

By: Anonymous on 6/26/08

Can anyone explain the $545,00 in management fees that Ron Cooper's family is suing for? Why would he get management fees for building his own project?

By: Anonymous on 6/26/08

Can anyone explain the $545,00 in management fees that Ron Cooper's family is suing for? Why would he get management fees for building his own project?

By: Anonymous on 6/26/08

What about builder/developer/partner Dan Lloyd? Did he get screwed by Karen too? What became of the millions of investor money that went into the Hinds AVenue project in Pismo? They took nearly $9,000,000 in investor money and three plus years later, without even entitlements in hand, it was foreclosed upon by the 2nd trust deed holder. The property has not had a stick of development on it. And what about Templeton Mixed Use Partners – don't even know who they are but you can bet your ass that they're holding hands with Karen. Karen gave them over $11,000,000 of investor money. NOTHING HAS BEEN DONE ON THIS PROPERTY. They are "still waiting for an EIR report" which they have been waiting for for 4 years! The property is worth $235,000. Where did the $11,000,000 plus go? Oh, yeah, I've got a lot of faith in builders.

By: Anonymous on 6/26/08

What about Al D'Amico? Builder/developer/partner of Karen's? Did he get screwed too? Or what did he and Karen do with the 3Bells Winery money that they took from investors?


0

By: Anonymous on 6/26/08

Did Andy Fetyko get screwed by Karen too or is he an exception? I hear he is such bad financial shape that he had to sell his airplane.

By: Anonymous on 6/26/08

Why would it be better to be a creditor during a bankrupcy filling?

By: Anonymous on 6/26/08

I apologize Insider. I thought you had the capacity to figure it out.


SGS = Small Genitalia Syndrome

______________________________

insider says:


to 1iJack


I think your the 1uJack. I'm doing just find. None of my money was invested with these guys and girl. Not sure what SGS stands for but maybe you will tell me. I'm against the dirty players, Hurst, Gearhart, EFI. I'm for free enterprize and WalMart. I'm against lefty socialist that want to tell everyone what to do and where to go Ellen "the turtle" Beraud, Smokey the Bear Brennler, Luna and his lunatics, the great Union leader Tom "the king" Comar and his little court jester David "brush" Broadwater. Hopefully this eposode is nearing an end and the grifters will be in thier cell blocks soon. The investors recover whatever they can and we can build a better future with this stuff behind us and a new City Council dedicated to new growth in the City :')


June 26th, 2008 at 8:59 PM

______________________________


1iJack says:


Insider is obviously one of the good ol boys (or girls) in ATown. Probably going to suffer in the landslide of EFI and Hurst. Greed always catches up with you Insider!


Your constant comments about the ATown council cleary indicate that you are suffering from a severe form SGS :)


June 26th, 2008 at 8:11 PM


______________________________

By: Anonymous on 6/26/08

Okay, I'll bite. Why are investors filing with the buiders?

By: Anonymous on 6/26/08

They had two loans with Karen. One property was sold and they were never paid. On another property, Karen never put them on the deed. So they are now creditors. I think most of the investors will end up as creditors. A much better position to be in during a Chapter 11.

By: Anonymous on 6/26/08

question


Investors who had a first TD on any property when sold or paid off their money should have been returned to them. Karen failed to inform of the sale and placed their money into the fund.

Any of these type of investor is a creditor.

There are others out there with similar situation should contact Ron to become a creditor.

There are many other irregulatrities that will be discoverd soon. Every one should investigate their own sitution.


0

By: Anonymous on 6/26/08

To Rediculous


Don't jump to conclusions. I know the builders got screwed. I know the game. If you read my writings you would have read the part where there was nothing wrong with Ron Coopers strategy. But to not admit he has a strategy is what's rediculous. As this thing plays out any builders who were honest and got taken by EFI may end up being instrumental in helping the investors recover some of thier money while getting back some of thier own at the same time. Karen has made a living off of putting the builders and the investors at odds and reaping the rewards. For me I figure Ron's honest or why would he put himself in the exposure he has and will be. You can't fault a guy for getting what's his. Anyone who's angry with him for taking advantage of his rights is pretty stupid. Without him standing up for himself no telling how long it would have been to bring this thing down.

By: Anonymous on 6/26/08

On the bankrupcy petition that was filed by the builders, they list that their nature of claim is MANAGEMENT FEES. Cooper claims $545,000 in managing fees. What's that? I thought they were suing because they didn't get the money promised to them for building their projects. Also Steve Gardality didn't list the nature of his claim for $6,269,768. What is the nature of the claim? This is very unclear in the filed document. I hope it was filed right.

By: Anonymous on 6/26/08

Has anyone started to put their thinking caps on and ask why there are investors as plaintiffs in this BK filing yet? Ponder on that for a moment.

By: Anonymous on 6/26/08

For those of you who think Ron panicked and filed BK due to Roger's attempted receiver placement, I personally know filing a BK Ch 11 takes a rediculous amount of time to create! I'm sure it was in the making long before the San Luis Obispo firm made their move! So stop throwing stones!

By: Anonymous on 6/26/08

DeepBlueSLO


Are you SLObear? Gotcha!

By: Anonymous on 6/26/08

Obviously, those writing in attacking the BK plaintiffs are either one of Karen's clan or are completely scared and don't get it. I'm discrediting any personal attacks on these builders. Do readers not understand that both Ron and Steve never received the money they were suppose to get? It's that plain and simple. EFI promised and then didn't deliver the money in full. They delayed sometimes as long as 6 months before making a payment (keep in mind the contract between builder and EFI has a time limit) and one of these builders had to sell just about every asset under the sun just to honor debt to his subcontractors. EFI's promised payment to his subs in many cases and then wouldn't pay. EFI seriously screwed over these builders. Are people so silly as to think just because they are developers, they are rich and can somehow come up with the money inspite of the loan owed to them? I've spoken with many other EFI builders (non-partnering) and it's apparent this is a pattern with Karen and Joshua – initiate the loan (yummy loan fees), start some funding, get the project to a certain stage, and then make further building next to impossible by stopping the phases of money promised to the builders. It's a serious pattern with EFI. Oh did I mention these builders need lots of equity in these projects before Karen will lend? Lots and lots! That way when Karen forecloses, she's win the equity as well. Don't believe this, then be in BK court to hear the builder's stories! Karen appears to be a wicked greedy crook! It's not the builders against the investors, everyone was a victim of EFI!

By: Anonymous on 6/26/08

to 1iJack


I think your the 1uJack. I'm doing just find. None of my money was invested with these guys and girl. Not sure what SGS stands for but maybe you will tell me. I'm against the dirty players, Hurst, Gearhart, EFI. I'm for free enterprize and WalMart. I'm against lefty socialist that want to tell everyone what to do and where to go Ellen "the turtle" Beraud, Smokey the Bear Brennler, Luna and his lunatics, the great Union leader Tom "the king" Comar and his little court jester David "brush" Broadwater. Hopefully this eposode is nearing an end and the grifters will be in thier cell blocks soon. The investors recover whatever they can and we can build a better future with this stuff behind us and a new City Council dedicated to new growth in the City :')

By: Anonymous on 6/26/08

Why can't I find the name of TOdd Nielsen listed on the website for LECG? Where can we find out about him?


0
1 2 3