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State regulators cancel EFI sales permits

June 9, 2008

By KAREN VELIE

Estate Financial Corp. (EFI) of Paso Robles can no longer solicit nor accept investor money because the troubled lender’s state permit to do so has been revoked.

Specifically, regulators from the California Department of Corporations (DOC) have stopped the firm from selling mortgage fund securities and part interest in real estate investments. The revocation follows on the heels of an earlier suspension.

“We revoked their permit to raise funds,” said DOC Director of Communications Mark Leyes. “They can continue to service existing funds and investors. It does not shut them down.”

San Luis Obispo County’s District Attorney’s Office is investigating numerous complaints from county residents and others who believe their principal investments with EFI have been misused. Local prosecutors are working with DOC investigators to examine the allegations.

“We are doing what we can to make sure the district attorney has what they need to do their job,” Leyes added. “The revocation is just one piece of the puzzle. If there is malfeasance that rises to the level of criminality, it will be up to the prosecutors.”

A top county prosecutor agreed.

“The DOC is also looking at more aggressive or criminal acts they can refer,” said Deputy District Attorney Steve Von Dohlen. “Then we review and decide whether or not to file criminal charges or more investigation.

Prior to taking funds from an investor, the permit required EFI’s owners, Karen Guth and Joshua Yaguda, to provide prospective investors with a questionnaire regarding their individual financial standing. The DOC concluded Guth and Yaguda failed to fill out the required forms. Guth also failed to disclose that she was a partner in more than 15 percent of EFI funded construction projects as stated in a circular distributed by the EFI.

Sources contend Guth knew she was over her allotment and had started to dump properties. A check of county records for properties having “EFI” listed as the grantor or the grantee showed 267 records changes in 2008.

Yaguda declined to comment on the state agency’s permit revocation and referred a reporter to EFI’s Web site.

EFI is one of a number of hard money lenders currently under fire in SLO County. Hard money lenders specialize in real estate-backed short-term bridge loans. These high risk loans are based on the value of the underlying asset rather then the borrower’s credit rating. EFI, during better times, paid investors approximately 12 percent interest on their investments.

On April 28, the DOC suspended EFI’s permit while the agency investigated an onslaught of charges. In response to the allegations, EFI requested a hearing to challenge the suspension, but later withdrew the request.

EFI stopped making interest payment last fall and numerous investors concerned about their money filed complaints with the regulatory agency.

In response to allegations Guth and Yaguda failed to protect investors, the San Luis Obispo law firm of Sinsheimer Juhnke Lebens and McIvor has invited more than 1,600 investors to attend a meeting June 17 at the Alex Madonna Expo Center to discuss replacing the $170 million fund manager.

Guth and Yaguda fired back with a letter last Friday claiming the law firm, required to have 10 percent of fund investors interested in the meeting, represented only a half dozen investors. The mother-son duo claimed the law firm dis not have the expertise to manage the fund. In the letter, EFI did not mention that permits had been revoked the previous week.

Tags:, district attorney, EFI, Estate Financial, San Luis Obispo County


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By: Anonymous on 6/14/08

Here is the web-site that has the lawsuit referred to in the San Luis Obispo Tribune:


http://media.sanluisobispo.com/smedia/2008/06/12/…

By: Anonymous on 6/14/08

It has been an interesting journey. From the first meeting John and Colleen Childress and I held about 90 days ago to Monday's pending receiver hearing, Karen and Joshua Yaguda have continued to misrepresent the facts, spinning the world around their little fingers, and literally misleading each and everyone who has helped them make the financial success they currently enjoy.


Think about it – without investors (and the management fees the investors pay) Karen an Joshua wouldn't be who they think they are.


Without borrowers, who pay loan fees- who would they be?


Together we have made them millions of dollars. And now, when the chips are down they tell us the financial information they post is inaccurate, they are only involved in 7 lawsuits, and the list of misrepresentations goes on and on. I particularly like the way they excuse themselves from buying back defaulted loans they made to related entities.


These are bad people, not soured by a poor economy, or the lack of management skills – just plain bad people.


I hope the Judge grants you what you are asking for. But for me, a "temporary receiver" is not good enough. I want someone with some skill and integrity to unwind not only the financial cobwebs but also to manage the land so that neither the borrowers nor the investors loose any

more in his swindling fiasco.


Remember – there are assets out there that have been ignored in these blogs. Someone with some skills better take a good hard look at those assets before the crystal ball blogger's theory turns into reality and there really are no assets left.


My files have so many emails and so much documentation about Karen and Joshua's misdeeds it would blow your mind, and the Judge's too.


But I'll share that with the receiver – if he/she ever asks for it. In the meantime – win Monday and the job is only 1/3 done. Lose Monday and we cannot give up the fight.

By: Anonymous on 6/14/08

Someone, please tell me exactly how I can find out if I was a a defendant in the Consolidated lawsuit.


I am sorry, but I cannot find the article in the tribune this AM that you referred to which would show who the defendants were in that lawsuit.


Thanks in advance.

By: Anonymous on 6/14/08

K in Paso says:


"These regular messages are just one of several new methods of providing clear, concise,


They never intended to be "clear and concise" with information. Always have a deniability. We are in this mess because they were always dishonest. Don't expect more than that. Karen and Josh would never have come forward with any information limited or other until the DOC, UncoveredSLO got on their case. Their opposition to the Ex Parte motion on Friday clearly illustrates it.

Their defense is full of holes. Only reason she bothered to put up an opposition is because by appointing even a "limited Receiver" would expose her fraudulant activities with our money. She'll do anything to cover up any evidence of wrong doings that caused hers and ours financial demise. How long she hold onto the sinking ship is anyones guess.

We must keep up the pressure.


0

By: Anonymous on 6/14/08

Here is the web-site that has the lawsuit referred to in the San Luis Obispo Tribune:


http://media.sanluisobispo.com/smedia/2008/06/12/…

By: Anonymous on 6/14/08

It has been an interesting journey. From the first meeting John and Colleen Childress and I held about 90 days ago to Monday's pending receiver hearing, Karen and Joshua Yaguda have continued to misrepresent the facts, spinning the world around their little fingers, and literally misleading each and everyone who has helped them make the financial success they currently enjoy.


Think about it – without investors (and the management fees the investors pay) Karen an Joshua wouldn't be who they think they are.


Without borrowers, who pay loan fees- who would they be?


Together we have made them millions of dollars. And now, when the chips are down they tell us the financial information they post is inaccurate, they are only involved in 7 lawsuits, and the list of misrepresentations goes on and on. I particularly like the way they excuse themselves from buying back defaulted loans they made to related entities.


These are bad people, not soured by a poor economy, or the lack of management skills – just plain bad people.


I hope the Judge grants you what you are asking for. But for me, a "temporary receiver" is not good enough. I want someone with some skill and integrity to unwind not only the financial cobwebs but also to manage the land so that neither the borrowers nor the investors loose any

more in his swindling fiasco.


Remember – there are assets out there that have been ignored in these blogs. Someone with some skills better take a good hard look at those assets before the crystal ball blogger's theory turns into reality and there really are no assets left.


My files have so many emails and so much documentation about Karen and Joshua's misdeeds it would blow your mind, and the Judge's too.


But I'll share that with the receiver – if he/she ever asks for it. In the meantime – win Monday and the job is only 1/3 done. Lose Monday and we cannot give up the fight.

By: Anonymous on 6/14/08

Someone, please tell me exactly how I can find out if I was a a defendant in the Consolidated lawsuit.


I am sorry, but I cannot find the article in the tribune this AM that you referred to which would show who the defendants were in that lawsuit.


Thanks in advance.

By: Anonymous on 6/14/08

K in Paso says:


"These regular messages are just one of several new methods of providing clear, concise,


They never intended to be "clear and concise" with information. Always have a deniability. We are in this mess because they were always dishonest. Don't expect more than that. Karen and Josh would never have come forward with any information limited or other until the DOC, UncoveredSLO got on their case. Their opposition to the Ex Parte motion on Friday clearly illustrates it.

Their defense is full of holes. Only reason she bothered to put up an opposition is because by appointing even a "limited Receiver" would expose her fraudulant activities with our money. She'll do anything to cover up any evidence of wrong doings that caused hers and ours financial demise. How long she hold onto the sinking ship is anyones guess.

We must keep up the pressure.


0

By: Anonymous on 6/14/08

Here is the web-site that has the lawsuit referred to in the San Luis Obispo Tribune:


http://media.sanluisobispo.com/smedia/2008/06/12/…

By: Anonymous on 6/14/08

It has been an interesting journey. From the first meeting John and Colleen Childress and I held about 90 days ago to Monday's pending receiver hearing, Karen and Joshua Yaguda have continued to misrepresent the facts, spinning the world around their little fingers, and literally misleading each and everyone who has helped them make the financial success they currently enjoy.


Think about it – without investors (and the management fees the investors pay) Karen an Joshua wouldn't be who they think they are.


Without borrowers, who pay loan fees- who would they be?


Together we have made them millions of dollars. And now, when the chips are down they tell us the financial information they post is inaccurate, they are only involved in 7 lawsuits, and the list of misrepresentations goes on and on. I particularly like the way they excuse themselves from buying back defaulted loans they made to related entities.


These are bad people, not soured by a poor economy, or the lack of management skills – just plain bad people.


I hope the Judge grants you what you are asking for. But for me, a "temporary receiver" is not good enough. I want someone with some skill and integrity to unwind not only the financial cobwebs but also to manage the land so that neither the borrowers nor the investors loose any

more in his swindling fiasco.


Remember – there are assets out there that have been ignored in these blogs. Someone with some skills better take a good hard look at those assets before the crystal ball blogger's theory turns into reality and there really are no assets left.


My files have so many emails and so much documentation about Karen and Joshua's misdeeds it would blow your mind, and the Judge's too.


But I'll share that with the receiver – if he/she ever asks for it. In the meantime – win Monday and the job is only 1/3 done. Lose Monday and we cannot give up the fight.

By: Anonymous on 6/14/08

Someone, please tell me exactly how I can find out if I was a a defendant in the Consolidated lawsuit.


I am sorry, but I cannot find the article in the tribune this AM that you referred to which would show who the defendants were in that lawsuit.


Thanks in advance.

By: Anonymous on 6/14/08

K in Paso says:


"These regular messages are just one of several new methods of providing clear, concise,


They never intended to be "clear and concise" with information. Always have a deniability. We are in this mess because they were always dishonest. Don't expect more than that. Karen and Josh would never have come forward with any information limited or other until the DOC, UncoveredSLO got on their case. Their opposition to the Ex Parte motion on Friday clearly illustrates it.

Their defense is full of holes. Only reason she bothered to put up an opposition is because by appointing even a "limited Receiver" would expose her fraudulant activities with our money. She'll do anything to cover up any evidence of wrong doings that caused hers and ours financial demise. How long she hold onto the sinking ship is anyones guess.

We must keep up the pressure.


0

By: Anonymous on 6/14/08

Here is the web-site that has the lawsuit referred to in the San Luis Obispo Tribune:


http://media.sanluisobispo.com/smedia/2008/06/12/…

By: Anonymous on 6/14/08

It has been an interesting journey. From the first meeting John and Colleen Childress and I held about 90 days ago to Monday's pending receiver hearing, Karen and Joshua Yaguda have continued to misrepresent the facts, spinning the world around their little fingers, and literally misleading each and everyone who has helped them make the financial success they currently enjoy.


Think about it – without investors (and the management fees the investors pay) Karen an Joshua wouldn't be who they think they are.


Without borrowers, who pay loan fees- who would they be?


Together we have made them millions of dollars. And now, when the chips are down they tell us the financial information they post is inaccurate, they are only involved in 7 lawsuits, and the list of misrepresentations goes on and on. I particularly like the way they excuse themselves from buying back defaulted loans they made to related entities.


These are bad people, not soured by a poor economy, or the lack of management skills – just plain bad people.


I hope the Judge grants you what you are asking for. But for me, a "temporary receiver" is not good enough. I want someone with some skill and integrity to unwind not only the financial cobwebs but also to manage the land so that neither the borrowers nor the investors loose any

more in his swindling fiasco.


Remember – there are assets out there that have been ignored in these blogs. Someone with some skills better take a good hard look at those assets before the crystal ball blogger's theory turns into reality and there really are no assets left.


My files have so many emails and so much documentation about Karen and Joshua's misdeeds it would blow your mind, and the Judge's too.


But I'll share that with the receiver – if he/she ever asks for it. In the meantime – win Monday and the job is only 1/3 done. Lose Monday and we cannot give up the fight.

By: Anonymous on 6/14/08

Someone, please tell me exactly how I can find out if I was a a defendant in the Consolidated lawsuit.


I am sorry, but I cannot find the article in the tribune this AM that you referred to which would show who the defendants were in that lawsuit.


Thanks in advance.

By: Anonymous on 6/14/08

K in Paso says:


"These regular messages are just one of several new methods of providing clear, concise,


They never intended to be "clear and concise" with information. Always have a deniability. We are in this mess because they were always dishonest. Don't expect more than that. Karen and Josh would never have come forward with any information limited or other until the DOC, UncoveredSLO got on their case. Their opposition to the Ex Parte motion on Friday clearly illustrates it.

Their defense is full of holes. Only reason she bothered to put up an opposition is because by appointing even a "limited Receiver" would expose her fraudulant activities with our money. She'll do anything to cover up any evidence of wrong doings that caused hers and ours financial demise. How long she hold onto the sinking ship is anyones guess.

We must keep up the pressure.


0

By: Anonymous on 6/14/08

"These regular messages are just one of several new methods of providing clear, concise, and current information to our investors…. And finally, we have set up a simple online method for you to use in order to access your account with us… http://www.lendersviewcentral.com/"

Estate Financial website FAQ page

http://www.estatefinancial.com/faqs.php


"We would like to stress that the information available through http://www.lendersviewcentral.com as it pertains to the Mortgage Fund is not complete, nor is the data “live.” For example it does not reflect the other assets or liabilities of the fund, nor does it include all the members of the fund. We’ve chosen to make it available, incomplete as it may be, as a means to relay loan information to those who would not otherwise see it. As this service was not designed by EFI, nor do we have any past experience with this program, I would caution, at least for the time-being, against using any of the data contained therein to draw conclusions…"

Joshua Yaguda – June 13, 2008- Estate Financial responds to letter from SJLM

http://www.estatefinancial.com/files/EF_Response%…


…So, when the "clear, concise, and current information" provided to the investors is actually examined and found to contain questionable and contradictory data EFI claims that it is not "clear, concise, and current information" and that we shouldn't be "using any of the data contained therein to draw conclusions". Who convenient! Doesn't this take us back to the original complaint that EFI is NOT providing it's investors with information about the fund?

By: Anonymous on 6/14/08

Also, one of those below posts is right. Anyone who has any money left after Karen raping your accounts, please donate to this site. Where would we be without uncoveredslo.com!

By: Anonymous on 6/14/08

Consolidated Properties suit was settled in my opinion because it was still too early in the game. If she blew them off with a settlement then she could buy more time to squeeze more money out of EFI. And…she was right. It's now June and here she is still. Also, again, she's trying to hide her books, so settling was a good move.


That suit was a mere lake shore wave back then now she's dealing with many ocean sized title waves and she's drowning. Chances of her settling anything now is most likely out of the question! Thus the cases falling into default.

By: Anonymous on 6/14/08

Anonymous says:


Why did Karen settle the lawsuit that Consolidated Properties


Thank you for making my point.

Exposure thats all. At some time, we'll find out the details of the settlement that can be used against her.

By: Anonymous on 6/14/08

Why did Karen settle the lawsuit that Consolidated Properties brough against her just 2 weeks after it was filed? They charged her with, amoung other things, FRAUD,INTENTIONAL MISREPRESENTATION, NEGLIGENT REPRESENTATION, UNFAIR FRAUDULENT BUSINESS PRACTICE. They were also suing you, the investor, by name. Just pull up the pdf file from the San Luis Obispo Tribune business section in this morning's paper to see if your name appears on the lawsuit. I'll bet you didn't even know you personally were being sued because Karen, as servicer/manager didn't want you to know. What other lawsuits have you personally been named in that you are not even aware of? There are several other lawsuits against Estate Financial and Karen Guth that you can view on the Tribune website as well. This is nonsense. This has gone on long enough. We need a receiver NOW to protect whatever assets Karen has not squandered, loaned to herself (and defaulted on!) or squirreled away.


0

By: Anonymous on 6/14/08

"These regular messages are just one of several new methods of providing clear, concise, and current information to our investors…. And finally, we have set up a simple online method for you to use in order to access your account with us… http://www.lendersviewcentral.com/"

Estate Financial website FAQ page

http://www.estatefinancial.com/faqs.php


"We would like to stress that the information available through http://www.lendersviewcentral.com as it pertains to the Mortgage Fund is not complete, nor is the data “live.” For example it does not reflect the other assets or liabilities of the fund, nor does it include all the members of the fund. We’ve chosen to make it available, incomplete as it may be, as a means to relay loan information to those who would not otherwise see it. As this service was not designed by EFI, nor do we have any past experience with this program, I would caution, at least for the time-being, against using any of the data contained therein to draw conclusions…"

Joshua Yaguda – June 13, 2008- Estate Financial responds to letter from SJLM

http://www.estatefinancial.com/files/EF_Response%…


…So, when the "clear, concise, and current information" provided to the investors is actually examined and found to contain questionable and contradictory data EFI claims that it is not "clear, concise, and current information" and that we shouldn't be "using any of the data contained therein to draw conclusions". Who convenient! Doesn't this take us back to the original complaint that EFI is NOT providing it's investors with information about the fund?

By: Anonymous on 6/14/08

Also, one of those below posts is right. Anyone who has any money left after Karen raping your accounts, please donate to this site. Where would we be without uncoveredslo.com!

By: Anonymous on 6/14/08

Consolidated Properties suit was settled in my opinion because it was still too early in the game. If she blew them off with a settlement then she could buy more time to squeeze more money out of EFI. And…she was right. It's now June and here she is still. Also, again, she's trying to hide her books, so settling was a good move.


That suit was a mere lake shore wave back then now she's dealing with many ocean sized title waves and she's drowning. Chances of her settling anything now is most likely out of the question! Thus the cases falling into default.

By: Anonymous on 6/14/08

Anonymous says:


Why did Karen settle the lawsuit that Consolidated Properties


Thank you for making my point.

Exposure thats all. At some time, we'll find out the details of the settlement that can be used against her.

By: Anonymous on 6/14/08

Why did Karen settle the lawsuit that Consolidated Properties brough against her just 2 weeks after it was filed? They charged her with, amoung other things, FRAUD,INTENTIONAL MISREPRESENTATION, NEGLIGENT REPRESENTATION, UNFAIR FRAUDULENT BUSINESS PRACTICE. They were also suing you, the investor, by name. Just pull up the pdf file from the San Luis Obispo Tribune business section in this morning's paper to see if your name appears on the lawsuit. I'll bet you didn't even know you personally were being sued because Karen, as servicer/manager didn't want you to know. What other lawsuits have you personally been named in that you are not even aware of? There are several other lawsuits against Estate Financial and Karen Guth that you can view on the Tribune website as well. This is nonsense. This has gone on long enough. We need a receiver NOW to protect whatever assets Karen has not squandered, loaned to herself (and defaulted on!) or squirreled away.


0

By: Anonymous on 6/14/08

"These regular messages are just one of several new methods of providing clear, concise, and current information to our investors…. And finally, we have set up a simple online method for you to use in order to access your account with us… http://www.lendersviewcentral.com/"

Estate Financial website FAQ page

http://www.estatefinancial.com/faqs.php


"We would like to stress that the information available through http://www.lendersviewcentral.com as it pertains to the Mortgage Fund is not complete, nor is the data “live.” For example it does not reflect the other assets or liabilities of the fund, nor does it include all the members of the fund. We’ve chosen to make it available, incomplete as it may be, as a means to relay loan information to those who would not otherwise see it. As this service was not designed by EFI, nor do we have any past experience with this program, I would caution, at least for the time-being, against using any of the data contained therein to draw conclusions…"

Joshua Yaguda – June 13, 2008- Estate Financial responds to letter from SJLM

http://www.estatefinancial.com/files/EF_Response%…


…So, when the "clear, concise, and current information" provided to the investors is actually examined and found to contain questionable and contradictory data EFI claims that it is not "clear, concise, and current information" and that we shouldn't be "using any of the data contained therein to draw conclusions". Who convenient! Doesn't this take us back to the original complaint that EFI is NOT providing it's investors with information about the fund?

By: Anonymous on 6/14/08

Also, one of those below posts is right. Anyone who has any money left after Karen raping your accounts, please donate to this site. Where would we be without uncoveredslo.com!

By: Anonymous on 6/14/08

Consolidated Properties suit was settled in my opinion because it was still too early in the game. If she blew them off with a settlement then she could buy more time to squeeze more money out of EFI. And…she was right. It's now June and here she is still. Also, again, she's trying to hide her books, so settling was a good move.


That suit was a mere lake shore wave back then now she's dealing with many ocean sized title waves and she's drowning. Chances of her settling anything now is most likely out of the question! Thus the cases falling into default.

By: Anonymous on 6/14/08

Anonymous says:


Why did Karen settle the lawsuit that Consolidated Properties


Thank you for making my point.

Exposure thats all. At some time, we'll find out the details of the settlement that can be used against her.

By: Anonymous on 6/14/08

Why did Karen settle the lawsuit that Consolidated Properties brough against her just 2 weeks after it was filed? They charged her with, amoung other things, FRAUD,INTENTIONAL MISREPRESENTATION, NEGLIGENT REPRESENTATION, UNFAIR FRAUDULENT BUSINESS PRACTICE. They were also suing you, the investor, by name. Just pull up the pdf file from the San Luis Obispo Tribune business section in this morning's paper to see if your name appears on the lawsuit. I'll bet you didn't even know you personally were being sued because Karen, as servicer/manager didn't want you to know. What other lawsuits have you personally been named in that you are not even aware of? There are several other lawsuits against Estate Financial and Karen Guth that you can view on the Tribune website as well. This is nonsense. This has gone on long enough. We need a receiver NOW to protect whatever assets Karen has not squandered, loaned to herself (and defaulted on!) or squirreled away.


0

By: Anonymous on 6/14/08

"These regular messages are just one of several new methods of providing clear, concise, and current information to our investors…. And finally, we have set up a simple online method for you to use in order to access your account with us… http://www.lendersviewcentral.com/"

Estate Financial website FAQ page

http://www.estatefinancial.com/faqs.php


"We would like to stress that the information available through http://www.lendersviewcentral.com as it pertains to the Mortgage Fund is not complete, nor is the data “live.” For example it does not reflect the other assets or liabilities of the fund, nor does it include all the members of the fund. We’ve chosen to make it available, incomplete as it may be, as a means to relay loan information to those who would not otherwise see it. As this service was not designed by EFI, nor do we have any past experience with this program, I would caution, at least for the time-being, against using any of the data contained therein to draw conclusions…"

Joshua Yaguda – June 13, 2008- Estate Financial responds to letter from SJLM

http://www.estatefinancial.com/files/EF_Response%…


…So, when the "clear, concise, and current information" provided to the investors is actually examined and found to contain questionable and contradictory data EFI claims that it is not "clear, concise, and current information" and that we shouldn't be "using any of the data contained therein to draw conclusions". Who convenient! Doesn't this take us back to the original complaint that EFI is NOT providing it's investors with information about the fund?

By: Anonymous on 6/14/08

Also, one of those below posts is right. Anyone who has any money left after Karen raping your accounts, please donate to this site. Where would we be without uncoveredslo.com!

By: Anonymous on 6/14/08

Consolidated Properties suit was settled in my opinion because it was still too early in the game. If she blew them off with a settlement then she could buy more time to squeeze more money out of EFI. And…she was right. It's now June and here she is still. Also, again, she's trying to hide her books, so settling was a good move.


That suit was a mere lake shore wave back then now she's dealing with many ocean sized title waves and she's drowning. Chances of her settling anything now is most likely out of the question! Thus the cases falling into default.

By: Anonymous on 6/14/08

Anonymous says:


Why did Karen settle the lawsuit that Consolidated Properties


Thank you for making my point.

Exposure thats all. At some time, we'll find out the details of the settlement that can be used against her.

By: Anonymous on 6/14/08

Why did Karen settle the lawsuit that Consolidated Properties brough against her just 2 weeks after it was filed? They charged her with, amoung other things, FRAUD,INTENTIONAL MISREPRESENTATION, NEGLIGENT REPRESENTATION, UNFAIR FRAUDULENT BUSINESS PRACTICE. They were also suing you, the investor, by name. Just pull up the pdf file from the San Luis Obispo Tribune business section in this morning's paper to see if your name appears on the lawsuit. I'll bet you didn't even know you personally were being sued because Karen, as servicer/manager didn't want you to know. What other lawsuits have you personally been named in that you are not even aware of? There are several other lawsuits against Estate Financial and Karen Guth that you can view on the Tribune website as well. This is nonsense. This has gone on long enough. We need a receiver NOW to protect whatever assets Karen has not squandered, loaned to herself (and defaulted on!) or squirreled away.


0

By: Anonymous on 6/14/08

The entire post;


There is lots of “HOT-AIR” floating on this site for sure. Isn’t it better this way than some disgruntled investor/borrower takes matters into their own hands? I am sure many felt that way on and off until some logic creped into our brain.


This forum allowed many of us to vent frustration and let off some steam. Everyone should give themselves a big applause and send a donation to UncoverdSLO for creating a proper forum.


According to Karen Guth, we are just bunch of complainers with no clue about the real world. Remember, she stated that the entire problem started with the real estate market turn down? In that case, why so many of projects were not completed when the loans were issued some back in 2000 or 2003? Markets were going up fast at that time. So her argument is stating it kindly; “MISLEADING”.


Karen blames us for the difficulties that came upon EFI and her operation


“EVERY TIME AN INACCURATE OR NEGATIVE ARTICLE, COMMENT, OR BLOG IS POSTED, IT HURTS OUR PORTFOLIO, OUR ASSETS, AND OUR INVESTORS. FEAR FEEDS FEAR, AND ACTING FROM FEAR – ESPECIALLY UNFOUNDED FEAR – HURTS EVERYONE”.


DOC revoked her license was just a fluke because many of us made a complaint and been whining to the authorities. She was to defend it vigorously, but when the inevitable happened, it was her idea.


If it was not for this site, she would be happily destroying documents transferring tittles leveraging assets with HERITAGE OAKS BANK and others willing to do so, taking cash out in the process claiming it is rightfully hers. Read the following coming directly from her PR firm.


“THE FUND WILL NOT ESTABLISH A RESERVE FROM WHICH TO FUND WITHDRAWALS AND, ACCORDINGLY, THE FUND'S CAPACITY TO RETURN A MEMBER'S CAPITAL ACCOUNT IS RESTRICTED TO THE AVAILABILITY OF FUND CASH FLOW. FOR THIS PURPOSE, CASH FLOW IS CONSIDERED TO BE AVAILABLE ONLY AFTER ALL CURRENT FUND EXPENSES HAVE BEEN PAID (INCLUDING COMPENSATION TO THE MANAGER AND AFFILIATES), ADEQUATE RESERVES HAVE BEEN ESTABLISHED FOR ANTICIPATED FUND EXPENSES, AND ADEQUATE PROVISION HAS BEEN MADE FOR THE PAYMENT OF ALL MONTHLY CASH DISTRIBUTIONS ON A PRO RATA BASIS WHICH MUST BE PAID TO MEMBERS WHO ELECTED TO RECEIVE SUCH DISTRIBUTIONS UPON SUBSCRIPTION FOR INTERESTS."


Fredrickson made arrangement for investors meeting and Karen so masterfully hijacked it. I don’t blame her for it and as many should attend as possible.


She makes it sound like it was her idea in the interest of the investors. OK now, please stop laughing or crying!

Fredrickson filed an ex-partee hearing for nothing more than be allowed access to files that investors were always entitled to in the first place.


Her response to it so typical (read response in court files) almost like reading the divorce documents; She is being cornered and now she was just simply too busy with more important things. Her CPA is working on the 2007 financial statement and it is just too much paperwork so it will not be completed until July 15, 2007. How convenient, wasn’t it supposed to be done by January 2008, at the latest?


She needs more time that is understandable. By now she transferred plenty titles from her “related entities” to reduce the max. allowed loans to her or affiliates.


Now to all who expressed concern about BC filing; such action is highly unlikely given the ramification of either Chapater 11 or Chapter 7. Chapter 11 is reorganization, very expensive while taking a longtime with little possibility of substantial funds to be recovered. Chapter 7 is liquidation by a Federal Court appointed Trustee and would take much less time and expense. Either way, all books documents transfers’ money movement’s frauds any collusion conflict of interest would be exposed.


I am certain soon after any of the two filings, many of the information could be turned over for criminal investigation while all money and assets Karen hid would be reverted to the trustee for distribution. There is a strong likelihood that others including the CPA who certified her books could be in questioned along with HOB and payment to her X.


Now, facing all that possibility (nothing is certain) what would you do? No way BC.

She’ll fight to the end until cornered like with this hearing on Monday.


Either way, she has too much to lose by opening the books, so that is her real fight.


I welcome all arguments and opinions.


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