Estate Financial evaluator appointed

June 16, 2008

San Luis Obispo Superior Court Judge Barry T. LaBarbera Monday initiated a complete evaluation of the books of Estate Financial Inc. (EFI) mortgage fund.

LaBarbera appointed Hanno Powell — an attorney from Fresno experienced in receiverships — to look into EFI’s records unencumbered for 30 days.

A group of investors, prompted by an UncoveredSLO.com article, hired attorney Roger Frederickson to help protect their investments. Frederickson filed a lawsuit and asked the courts to appoint a receiver.

EFI is one of a number of hard money lenders currently under fire in San Luis Obispo County. Investors have accused EFI of failing to provide required documentation; file deeds of trust as required by their agreements; and pay investors following property sales.

Last month, regulators from the California Department of Corporations revoked the firm’s license to sell mortgage fund securities and part interest in real estate investments. The Department of Real Estate is currently investigating numerous complaints filed against EFI.

While hundreds of investors waited in the court room, the judge and attorneys discussed issues for more than an hour behind closed doors. LaBarbera then announced that an evaluator would be appointed, and that the mortgage fund would be responsible for $10,000 towards the cost of Powell’s evaluation.

LaBarbera scheduled a hearing for July 22 and 23, in which Powell’s findings will be used to determine the management of Estate Financial’s $170 million mortgage fund.


Loading...

32 Comments

  1. ccn_debate says:

    By: Anonymous on 6/23/08
    Barb's Friend says:

    Barb:

    Many of the posts trying to link Hertel related entities are all from a certain con man whom Dan Blackburn wrote a cover story about for the New Times in April of 2004. Since moving to town, all he's done is move from one con to another. His next one is to dupe EFI investors a second time. Be wary as to any of the info you take from bloggers. Give Dan a call and he'll be happy to feed you more information.
    By: Anonymous on 6/23/08
    Thank you for your site and information, FullyFunded here is some other information on hidden assets and phony LLC and the lot. Verdot Group L.P. and associated partner Hertel Group, LLC are all the same people using different LLC's and LP's from Avila Village to Cookham and more. They ALL have the same address of 5200 Telegraph Road in Ventura, Verdot and Hertel are also owners of % Mil Bridge Wines a hiding place of ill gotten gains. The owners of Atascadero Ventures, LLC who have recently defaulted on nearly 21 Million in loans all to hide assets in these other enterprises. Hire a PI the dots all connect to one really big land and loan scam. Good Luck. Avila Village Inn is in Avila Beach is owned by Fowler and Hertel built with your now missing $$

    (1) 1 Total Votes - 1 up - 0 down
  2. ccn_debate says:

    By: Anonymous on 6/23/08
    To Roland and to Fully Funded: You sound like a wealth of information. Could you please write me at fullyfunded93401@yahoo.com ? Thanks!
    By: Anonymous on 6/23/08
    To Ex-Employee:

    Mr. Powell gave his e-mail address – hpowell@powellandpool.com

    Why don't you just e-mail him this information and he will be able to respond to you via e-mail or he may want you to call him. E-mail him and see what he wants to do.
    By: Anonymous on 6/23/08
    to ex-employee

    Why don't you e-mail him. His e-mail address is in his blog a few entries down. I'm sure his e-mail is secure and you can request he call you at a number of your choice or you could request a confidential number and time you could call him so niether of you have to post a phone # on this blog. Good luck. You are important and appreciated.
    By: Anonymous on 6/23/08
    To ex-employee: I'm sure Hanno does not want his number to easily accessible. Tt's easier for him to filter through emails. He's limitied on time. I'm sure he will call you if you are truly an ex-employee with a statement. Please write him ASAP!
    By: Anonymous on 6/23/08
    The name of the LLC is AVILA VILLAGE, LLC Secretary of State filing # 199702210044 it's parent company and the company who has siphened off many of the missing dollars is called COOKHAM HOLDINGS, LLC of Nevada. The interesting thing to note on Avila Village, LLC and Cookham all have the same address of 5200 telegraph Rd. Ventura, CA according to the Secretary of State over 65 LLC's and LP's are registered to that address from SLO. The name listed on the filing for Avila Village, LLC is a misdirection and fraud it is filed as Ronald JS Fowler, who's real name is Robert John Samuel Fowler the partner to the developer and builder Ronald W. Hertel of Hertel Investments they both switch names around to confuse the investors. William Zech is listed on Cookham Holdings same address in Ventura and as it happens he is a Non-Licensed Lawyer working for these scam people and will not join the State Bar so thus he can not be held liable for wrong doing by the Bar. It is a really big scam and many have lost millions. It does appear they are preparing to file Bankruptcy soon.

    (0) 0 Total Votes - 0 up - 0 down
  3. ccn_debate says:

    By: Anonymous on 6/23/08
    Mr Powell,I am an ex employee and i have knowledge of what karen and JOsh did with the funds that they collected for certain loans and then used that money to finish projects in mountain view, 24th street condos, and interest payments, I also have information regarding doya partners, andy fetyko, dan lloyd, who were partners with Karen on multiple projects, they would open new loans, get them thru escrow, then fund them and use the money to finish other projects, pay interest payments, some of the loans were fully funded by Laura Paulsen under full knowldedge that these funds were going to be used for expenses other than the loans the money was put on, seems to me that Laura Paulsen & also the escrow person whose name is Shauna should be served with supoenas and brought to court with the possiblity of being charged in this fraud case along with Karen & Josh if the refuse to tell the truth or if they lie under oath. If you will post a phone number i will call you
    By: Anonymous on 6/22/08
    To roland:

    What was the name of this project? Do you have the name of the developer? Was this a developer who partnered with Karen? If you don't want to answer on the blog, please write fullyfunded93401@yahoo.com Thanks!
    By: Anonymous on 6/22/08
    Well some of your missing Millions went to the builder of Avila Village Inn at 6655 Bay Laurel Dr. Avila about 1.7 Million of the total 5 Million dollar cost went into the developers pockets get a court order for the books before it is too late.
    By: Anonymous on 6/22/08
    To answer a previous question, Yes Judge in the EFI case is the same judge on the Hertel case the Other Judge on another Hertel case is Crandall. Court clerk said late Friday Hertel main Lawyer got wind of Hertel's possible Indictment and did NOT want to get his office raided so he quit citing lack of payment and cooperation. He is out thus far NO lawyers want to touch him. Word is out he is in deep, deep trouble along with several of his partners and multi level LLC's and Scams are apparently coming to a close. My bet is Bankruptcy which would be fraud for him, but good for the Task Force Investigating Loan and Bank Fraud, not to mention Mortgage Fraud and REIT Scam's as well. One issue HOB reported was Hertel and Fowler filed false loan applications and committed Perjury a Federal Offense. Title 18 Sec 1014 to name one the Feds asked one loan officer and FATICO has had a few IRS visits recently as Steve Martin or Rob Rossi. Some time ago some one listed on a site the names of over 20+ associated LLC's etc all connected in this widening Ponzi scam, it is coming to a head soon. Assist Mr. Powell.
    By: Anonymous on 6/22/08
    For those who are wondering when the right time is to 'step up to the plate' and divulge what you know, IT'S NOW!!! I have spoke with an ex-employee briefly and he said he will speak when the time is right. Now is just THAT time! Please contact Hanno Powell! Although, I don't know the specifics of his employment at EFI, he did quote 'I am for the investors.' You know who you are, so PLEASE help.

    Also, for all others, every tid bit helps. Each and everytime I talk with a new investor I hear a bit of new information that could mean mounds to Hanno Powell. Time to spill what you know and quickly. Names and numbers all to Hanno. You may have the one link that makes it all come together. If you already told the FBI, the FBI doesn't share information, so repeat what you said to Hanno. This is your chance to make a difference!
    By: Anonymous on 6/21/08
    I recognize that my request of this blog is unorthodox but given the limited time and budget I will use all means at my disposal to gather the needed information. To that end I am providing my email address below. Thank You. hpowell@powellandpool.com

    (0) 0 Total Votes - 0 up - 0 down
  4. ccn_debate says:

    By: Anonymous on 6/21/08
    I am the court appointed "independent evaluator". I have read with interest the numerous comments on the Estate Financial matter. As many of you have surmised the task which I have been handed has been compromised by the limited budget and the shortened time to gather information, evaluate it and report the findings to the court. I am therefore enlisting the help of all of you to assist in information gathering. I am looking for information about: specific loans; investors in the fund; past employees,agents, or officers of EFI; any known or suspected incidents of fraud, misrepresentation, malfeasance or malfeasance reagrding EFI.
    By: Anonymous on 6/21/08
    To appoint a receiver, all we ever needed long, long ago was to prove Karen would not supply the books and information we were requesting! When this came to light months ago, we should have shoved a reciever in then. Hide sight 20 20.
    By: Anonymous on 6/20/08
    This is why you need the reciever in there. Access to the records, employees statements and your own experiences are all thats needed. Its almost over. Check out the newest article on undercovedSLO. Pack your bags mom were going away.
    By: Anonymous on 6/20/08
    To Barb's Friend.

    How about a name? That would be most helpful. You would be amazed at the number of people who would further investigate on this if they had just a little more facts. A name please. If you don't want to through out a name, have a friend write it in. Some of us do nothing at night but try to fit the pieces to the puzzle. I wouldn't want to bother Dan. I'm sure he's a busy man.
    By: Anonymous on 6/20/08
    Barb:

    Many of the posts trying to link Hertel related entities are all from a certain con man whom Dan Blackburn wrote a cover story about for the New Times in April of 2004. Since moving to town, all he's done is move from one con to another. His next one is to dupe EFI investors a second time. Be wary as to any of the info you take from bloggers. Give Dan a call and he'll be happy to feed you more information.
    By: Anonymous on 6/20/08
    To Anonymous.
    I must disagree with you because if you are reading this site you already know something is very very wrong.
    Is it possible that it is human nature to sit back and see what others do.
    By: Anonymous on 6/20/08
    Barbera…just maybe, all the folks here aren't on the same page as you. I know it's hard to believe after you spent all that money, but it could be that people see it another way.

    Sincerely
    By: Anonymous on 6/20/08
    Searching for records,

    If any investors have information on three bells now is the time we can use it.
    Any varifiable information!!
    I am suprised at how much bla-bla-bla is on this site and when I ask for something only a few reply.
    Get your records together and document your experience with EFI and be ready to help your self and the rest of the investors.
    Do some homework, file a complaint with the DRE.
    and again especially let me know what you have on three bells.
    Hope to hear from you soon.
    Barbera
    bcqueen@charter.net

    (0) 0 Total Votes - 0 up - 0 down
  5. ccn_debate says:

    By: Anonymous on 6/20/08
    Hang on to your seats, Folks! Countdown time – tick-tock, tick-tock! Karen and Josh, you two are DONE! Enjoy the weekend, it will be one of the last few you'll be spending on the outside! You might want to pick up some books on behavior modification. You arrogance will not serve you well where you two are going. Ta-ta.
    By: Anonymous on 6/20/08
    The DRE had all the reason it needed to pull Estate license just on the fact that they violated the DOC rules. They must be really getting thier ducks in line to justify sending in a reciever. Why else would they take so long. The judge bought them some extra time by this temporary thing that for all intents and purposes froze EFI's actions. What can they do put look up evey time they here foot steps. How can these people be any asset to the investors at this time can you imagine thier mental state. Even with ice water running through your viens you would be pretty shook up wouldn't you.
    By: Anonymous on 6/20/08
    odd says:

    Is it true the judge LaBarbera is also the judge for a Hertel lawsuit? Atascadero Ventures and EFI is tied to Hertel. Sounds conflicting, doesn't it?

    Why attack the judge? I see no conflict hearing similar cases. To me its a plus since he doesn't have to be educated in this field.
    It would be a different story if he was an investor or borrower in a similar situation.
    By: Anonymous on 6/20/08
    Does anyone know if the auditor is looking over the books yet? Is he at the EFI office or will he take the records with him to some other office? Anyone know what's happening? What is the DRE doing? What is taking them so long to pull their RE license?
    By: Anonymous on 6/20/08
    to odd

    The government is all over this type of misuse and abuse of investors and borrowers both. Hopefully before the reciever appointed by the judge is through the DRE will do what they should have already done and appoint a permanent reciever. Youre reduced to trying to find some minor problem and yet you tried to hide a elephant worth of discrepancies and misdeeds under a doily. Tick tock.
    By: Anonymous on 6/20/08
    Is it true the judge LaBarbera is also the judge for a Hertel lawsuit? Atascadero Ventures and EFI is tied to Hertel. Sounds conflicting, doesn't it?
    By: Anonymous on 6/19/08
    To Private!

    I am a plaintiff in the current action against EFI.
    I dont have all the info you need but It would be to your advantage to contact me.
    Leave me an e-mail address or phone number to get in touch with you.
    Many investors know who I am and know I can be trusted.

    (0) 0 Total Votes - 0 up - 0 down

Comments are closed.