Divorce allows peek between EFI’s sheets

August 16, 2008


It took an acrimonious divorce and a protracted asset scrap to finally address the big question for investors in Paso Robles’ Estate Financial Inc.: Where did their money go?

Now, EFI principal Karen Guth has answered at least part of that question in the midst of her contentious court battle over marital assets with ex-husband and former partner, Charlie Applebaum. By her own admission, Guth utilized hundreds of thousands of dollars in investor money to capitalize her personal holdings.

Guth disclosed to the courts that she spent EFI funds to cover expenses for at least two family businesses over a period of at least three years, according to court documents.

Utilizing a number of hard money strategies, EFI principals Guth and her son, Joshua Yaguda, enticed more than 3,000 investors to place more than $300 million with the promise of high interest through secured construction investments. But for months, numerous sources have been alleging that Guth utilized funds for project construction to pay for a number of outside business interests she operated while at the helm of EFI.

The Guth-Applebaum drama continued recently when the pair engaged in a litigious battle over a $100,000 reimbursement check from the state for chemical cleanup of two service stations known as Templeton Products Inc. Guth told the court she wanted to use the check to cover some of the $760,000 in “advances” EFI has made to fund the service stations.

Templeton Products still owes $300,000 to $550,000 to EFI for those advances. Guth acknowledged June 24 in papers submitted to San Luis Obispo Superior Court that she made the cash advances between 2004 and 2007. By designating the monetary payments from EFI to Templeton Products “advances,” they became, in effect, non-interest-bearing loans.

“As is her style, she runs Templeton Products any way she sees fit, regardless of formalities and corporate law,” Applebaum claimed in sworn testimony.

Investigations by UncoveredSLO.com suggest that Guth wrote checks from EFI accounts for insurance payments, merchandise, and employees’ salaries for her Pasolivo Olive company.

The Guth court papers also put the spotlight on a practice of many local banks, that of loaning millions of dollars to local hard money lenders without securing the debt with borrowers’ assets.

Guth employed Templeton Products to secure a previously unsecured $5 million Heritage Oaks Bank loan, according to court records.

“Incredibly… she mortgaged both properties to the hilt,” Applebaum reported in sworn testimony. “By placing these liens against the gas stations, the gas stations are now grossly over encumbered.”

Applebaum claims officials at Heritage Oaks Bank authorized the loaning of millions of dollars to his ex-wife on property he owns without his knowledge or consent.

“The transaction came as a complete shock to me as I was in direct communication with Heritage Oaks Bank,” Applebaum asserted in sworn testimony.”

Heritage Oak Bank officials did not respond to numerous requests for comment.

“The bank is saying, as long as it is a corporate resolution, the lien is good,” said Gregory Abel, Applebaum’s attorney. “Hopefully, we have found responsible people at Heritage Oaks Bank willing to work together so that Mr. Applebaum is not personally adversely affected by the liens.”

Guth claimed she agreed to place the lien on her portion of Templeton Products following a request from Heritage Oaks Bank to secure an already funded personal loan. Applebaum’s interest in the property is not impacted by the agreement, she told the court.

Heritage Oaks Bank has doled out at least $15 million in loans to Guth. The bank secured a loan for $4.8 million through a lien on a Guth and Applebaum commercial property on Ninth Street in Paso Robles; and a second lien for $5.9 million on Guth and Yaguda’s Pasolivo olive ranch.

Applebaum and Guth purchased the Paso Robles hard money lending company in 1994 and divorced in 2004. Their bitter battle over personal assets became public when the company fell on hard times, along with 3,000 of its investors and a legion of creditors. EFI now finds itself in bankruptcy and its remaining officers, Guth and her son, Joshua Yaguda, under the critical gaze of regulators.

Early in June, creditors forced EFI into involuntary Chapter 11 bankruptcy proceedings. About a week later, EFI owners Karen Guth and Joshua Yaguda voluntarily placed EFI’s mortgage fund into Chapter 11. The state Department of Real Estate (DRE) has suspended EFI’s permits and has publicly alleged that many of EFI’s practices were fraudulent. Guth and Yaguda are being investigated by a host of state agencies and federal and local law enforcement.

Even as the lending business began to self-destruct under pressure from worried investors and a legion of creditors, and with bankruptcy actions proceeding, Guth appeared to be transferring properties and other assets in a helter-skelter fashion.

Concern by investors and creditors now may have been partially addressed by state actions which have had the effect of icing any business that can be conducted by EFI.

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Going forward, Tom and Brad agree that they need an advocate who can relay info to us investors. Paying them almost $500 and hour for writing is waaaayyy too much—even though we all want the info. They are considering someone for this work.

The top 20 investors in The Fund have been identified. It was stated that there are people in that mix who are smart and are leaders. They will soon meet with the help of the BK court and hire a lawyer to represent Fund investors. This group will be to represent all Fund investors so that a few thousand people are not knocking on the door and making phone calls. Another needed expense on the horizon.

The same will happen with the investors in the First Trust Deeds side of the house but this is not as far along. Another lawyer–another expense.

The good news here is that the process should take guys like me out of the picture. Another very vocal fellow who started some of the collapse is actually a borrower and not an investor. While his intentions remain loud, wide spread and for the common good, it’d be nice to have (what I presume is money he owes to EFI) retuned and get sent to us investors.

At some point, Tom and Brad and crew will move out of EFI into a different space. Karen and her ex apparently co-own the EFI building. How they are paying the mortgage is anyone’s guess. Expenses to use the building (gas, elect. water, etc) are being paid by the cash still existing in EFI in aggregate.

There was a good discussion about priorities. Certainly getting returns to us on our investments at the lowest cost is the #1 goal. However, we as investors need to have detailed communications so we can somehow make our own plans as to paying our own bills and planning for a far different future than we anticipated 18 months ago. We need to know what we own and in what condition it is in and what’s it’s worth. Thus, I pushed for the analysis of the properties to be as high on the list as finding the money trail. Until we have the analysis, we are wandering like sheep in the desert. We can’t make any personal decisions until we have some idea of what’ll be left from our investments.

My sense on this is that the surface is only scratched so far. Further, I believe that it’ll be a long long time before any money flows our way–money will flow but not to us. I sense the men are genuine in their desire to help us but as I said a few days ago, when they turn out the lights at night, they’ll sleep in a different state of mind than we will.

Embarrassingly, somehow I did not ask about the K-1’s for the 2008 tax year. My goof up. We need to do that soon.

I also did not deeply ask about Heritage Bank’s real or imagined involvement. We scooted over it but it’s on Tom’s list to chase the money.

This was not in any part of the meeting but I think it makes sense for all of us to look at our own Wills and Living Trusts. Many of us are a bit older and these funds may come when we are not able to make it clear as to what was what back in 2008. Someplace there might be a stipulation of what happens to “The Estate of—”. Maybe I’m goofy but I think of things like this.

Tom and Brad did truly appreciate the list of questions we posed to them and I believe it will be of some use as they choose what to focus on out of the myriad of possibilities that exist.

Lastly, many of you have figured out that my 2 hours with them yesterday cost us (me

included) almost $2000. For that I am truly sorry but I hope that in some way, the info

presented here will be of some benefit to all of usTom and Brad included. They have

an immense task for which hopefully we will thank them some day but in the meantime, we

must be diligent in our pressure to have them perform. Personally, I encourage letters to

Judge Riblet to ask her to fine-tooth-comb each Fee Application and hold everyone’s feet to

the fire for results. If we investors don’t continue to push firmly, you can come up with

your own estimate of how many cents per dollar we’ll get back sometime during the next 10


Thank you to Joe for sending this around to everyone. I’m as sick in my gut as you are but I do feel a smidgen better in now having some news. I hope it helps and thank you for reading and for all your messages.

God Bless us all. We are in a deep boiling un-tasty soup and it’s gonna take the guidance of One bigger than we are to get us out. Forgive my typos.

Chuck Desmond

My docs: EFI meeting with Tom and Brad Sept 2008

By: Anonymous on 9/3/08

By: Anonymous on 9/3/08


In grew up in orange county…was there before the 55 Fwy went in…Paso is not even close to a mini OC, not a smigeon, fool

By: Anonymous on 9/3/08

insider says:

to susp mind

I think Ron Coopers possition is a simple one even though it pisses a lot of investors off.

To many investors sorrow, its tru with other borrowers. Karens criminal actions over the years having a desasterious effect today

By: Anonymous on 9/3/08

to susp mind

I think Ron Coopers possition is a simple one even though it pisses a lot of investors off. EFI made a loan to Cooper that they did not fulfill their end of the bargin. In other words when it came time to fund the money it wasn't there. He went broke and lost his project due to their neglegence. He therefore sued them. EFI did not show up at court and therefore Cooper wins by default. Its called a default judgement. So at that point EFI owes Cooper the default judgement award which is whatever he sued for. At that moment Cooper becomes a creditor and thats where it stands. Thank Karen once again.

By: Anonymous on 9/3/08

what monies does EFI owe Ron Cooper? Did he do work for them and not get paid? Was he an investor that sits in limbo with the rest of us? What $ are you talking about?

By: Anonymous on 9/2/08

Susp. Mind says:

seems to me, one reason to go Chapt 11 is to settle with the creditors using EFI assets, not calletral for our investments. Ron Cooper has an agenda, just curious what it might be

Well, ask yourself a question! Why would anyone spend so muchtime, energy and money? Of course he has a motive. He wants his money that was taken from him. And of course, placing EFI into BC was a way to force the issue. That in the meantime PONZY SCHEME is being uncovered and other frauds, justproves that everyone was taken in by a master FRAUDSTER. For so long, so many investor beleived Karen is proof that without filing for BC, she would have been anle to take more cash out of everyone's hide.

By: Anonymous on 9/2/08

seems to me, one reason to go Chapt 11 is to settle with the creditors using EFI assets, not calletral for our investments. Ron Cooper has an agenda, just curious what it might be

By: Anonymous on 9/2/08

Suspcious Mind says:

How does Ron Cooper fit inyo this. His name keeps coming up but he is not an investor. Why should I care what this guy thinks and does?

Ron Cooper and others are creditors and they have priority over investors.

By: Anonymous on 9/2/08

How does Ron Cooper fit inyo this. His name keeps coming up but he is not an investor. Why should I care what this guy thinks and does?

By: Anonymous on 8/30/08


Good reporting. This is the kind of ongoing information we need on this site.

We need to be more informed now that the new Bankruptcy group is in place.

By: Anonymous on 8/29/08

Notice of 341a Meeting of Creditors


Estate Financial, Inc. and Estate Financial Mortgage Fund, LLC

Date: Tuesday, October 7, 2008

Time: 9:00 a.m. Registration

10:00 a.m. 341a Meeting of Creditors

Location: Fess Parker’s Doubletree Resort

633 East Cabrillo Boulevard

Santa Barbara, CA 93103

Santa Ynez Room

By: Anonymous on 8/29/08

To Ronnie –

What do you mean? could you be a little more specific? Keep an eye on for what?

By: Anonymous on 8/29/08

Here is one company you just might want to keep an eye on, SANTA MARGARITA CATTLE COMPANY, LLC, the web of connections and $$ goes far and wide.

By: Anonymous on 8/29/08

Here is one company you just might want to keep an eye on, SANTA MARGARITA CATTLE COMPANY, Inc. the web of connections and $$ goes far and wide.

By: Anonymous on 8/29/08

The two managers who were appointed by Karen to replace her,and who were in place for approximately 2 weeks before the bankruptcy judge determined that they were "tainted" by the fact that Karen Guth had appointed them, have submitted their bills (to be paid from EFI and EFI Mortgage Fund) to the Bankruptcy Court for approval. The total amount is $244,161. Of this amount, $114,045 is bills from FTI Consulting Inc, a financial advising company hired by Reiss and Gould. Reiss happens to be the Managing Director and Leader of Company Services for FTI Consulting. How did this happen? Any objections to the charges submitted by Karen's appointees must be submitted to the court by no later than September 3.

By: Anonymous on 8/28/08

You know, I keep wondering what EFI was doing. Were the employees of Pasolivos being paid with money that belong to the fund? Were the checks they received written on EFI, Inc., or the fund. Does it make a difference? Was EFI, Inc., a company which could pay pasolivos bills, or my phone bill or your gas bill — if it so elected? What does the fact that pasolivos employees were paid off a EFI, Inc. account signify? Is this what they call, "piercing the corporate veil," or what?

By: Anonymous on 8/27/08

To Roxanne: I really hope that you are not using the name of an employee who used to work there to post the message u just posted, because I know for a fact that the employee Roxanne is not the one who posted this message

By: Anonymous on 8/27/08

pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo pasolivo

By: Anonymous on 8/27/08

To Roxanne…

Thank you for providing this information… the more people that know about them… the better it will be… (well… except for them)…

By: Anonymous on 8/27/08

I checked and it's true. Uncoveredslo.com's blog is highly searchable. Due to this, I'd like to post the below.

If you are searching for information about Karen Guth, Joshua Yaguda, and Paso Olivo, you should read the statements below.

Karen Guth and Joshua Yaguda have allegations against them supported by the Department of Real Estate and Dept of Corporations for defrauding investors in their other company Estate Financial, a hard money lender.

The ongoing allegations which are being investigated by the FBI, DOC, DRE, DA include fraud, dishonest dealing, co-mingling funds, failure to secure loans, negligence, and more. Thoughts are Guth and Yaguda swindled over 2500 investors, many elderly, from their savings by misrepresenting their company. Guth and Yaguda misappropriate many funds in the 300 million plus investor-built portfolio and then walked away claiming bankruptcy. Yes, they flew away in their 'golden parachutes' with much money unaccounted for. Paso Olivo employees were paid by with Estate Financial checks. Karen and Joshua have willfully disregarded or violated state real estate law and investors have suffered immense losses due to their activity. Trustees are currently sorting out the mess. However, Karen and Joshua are free to roam. That is, until they are tried criminally in court. Most concur they will serve significant prison time, not for a mistake but for purposely breaking the law for their own personal financial gain. What a wonderful way to make money to do what Karen and Joshua love best – olives. Please learn more before you support their olive ranch! Please read the below link:


Key words: Paso Olivo Oil, Karen Guth, Willow Creek Olive Ranch Tasting Room, Paso Robles California, California Olive Oil News, California Olive Oil Council, LA County Fair Olive Oil Winners, Joeli Joshua Yaguda, 140-acre ranch, Olives101.com The Olive Oil Source, COOC Olive Oil, Nancy Ash, Charles Crohare, Paso Olivo Olive Oil, extra virgin olive oil, award-winning estate olive oil, Guth / Yaguda Family, criminals

By: Anonymous on 8/27/08

To Anonymous…

Thank you for providing this information…

By: Anonymous on 8/27/08

Be sure to use Karen and Joshua's full name (and anyone else you feel is involved in this scandel) when you write in this blog. These entries are highly searchable on Google. By typing in Paso Olivos or any other of her companies or a key word like 'olives' others innocently searching will fall upon this site. Just food for thought.

By: Anonymous on 8/27/08

I'm guessing Karen Guth and Joshua Yaguda (yes, the two active owner or managers of Paso Olivos Olive Ranch / Farm http://www.pasolivos.com) are not very computer literate. Otherwise they would know that there is no paper trail. It's all traced so quickly now days by the short electronic trail. An older lady like Karen may believe she left behind a paper mess too untraceable for the pros but her lack of computer knowledge will be a slap in her face when forensics are done with her.

By: Anonymous on 8/26/08


By: Anonymous on 8/26/08

There is a rumor circulating that EFI has 544 out of 545 loans in default. Does anyone know for sure if this is true? If this true, it can not all be blamed on a down real estate market. It looks more like a complete melt down of real estate BAD MANAGEMENT.

By: Anonymous on 8/26/08

Getting a Grip

There is always a bad laon even in good market let alone in bad market. The problem with Estate Financial that many of the loans were made way before the market turned down, some in 2001 or 2002. Since than the market went up a lot but loans did not get paid off. Many loans were due in 2002, 03, 04 etc., but couldn't be finished because of funding problems. Other similar operations have problems resulting from bad market.

If handled properly, most these loans would have been paid at least $.80 on the $1.00.

Loans like the one on Templeton Mix use, originally made in 2004, no progress so far other than plans, but no approval what so ever. The property is worth less tan 50% of the loan on it. Money was spent on who knows what? Other loans are in similar or worst situation.

Loans in bad market could've been handled with small losses. Loans in good and bad market where the money never made it to the intended receipient can not be explained away.

By: Anonymous on 8/26/08

So I have this one worry. Say some of the failed loans were the result of a bad market. How are those which were mismanaged distinquished? You know, there is some bad stuff going on out there in the real estate market. How do we distinguish between a bad market and bad management? And then, how do you place a dollar value on the bad management if the bad market had so much impact? Sorry if I offend anyone by asking this question, but it's been bothering me from the very beginning.

By: Anonymous on 8/25/08

Please… let's not have… vague, rambling… discussions… about… karma….

By: Anonymous on 8/25/08

The trustees are not going to be paying any of Karen's "management fees". She’s dreaming if she thinks she will. Once properties are sold, Mortgage Fund monies will be held in an escrow account until fraud and embezzlement are proven, then the funds will be used to pay the new trustees, creditors, finish building out properties that have value and returning monies to investors. Karen’s plan was to stay on board as a "consultant" to her hand-picked managers and see that she got her $3 million while she looked over their shoulders and micromanaged them. The BK judge threw a wrench into that plan when she dismissed Karen's new hires and had new trustees appointed. It will be a cold day in hell before she gets her hands on any more of our money.

By: Anonymous on 8/25/08


Guth and Yaguda have caused so much suffering… and to what purpose…? Hundreds (more likely thousands) of investors bilked of their savings…

I believe in Karma: you know… the force generated by a person's actions… and its ethical consequences to determine the nature of the person's next existence…

Well… my guess is… that their punishment… which they will (soon I hope) receive in this life… will follow them into the next…

By: Anonymous on 8/25/08


So? who cares about the needy? She had to pay her fees and expenses on the Olive Farm along with the cost of other more urgant needs she beleived. BTW, she still has a claim of $3,000,000.00 againts the EFMF as creditor for past due mngt fees with interest.

By: Anonymous on 8/25/08

Taking newly invested funds… paying dividends to current shareholders to keep them complacent… then taking the rest for other purposes (their own gain) is called EMBEZZLEMENT…!

Soon… their arrest… prosecution… and hopefully a conviction for operating this Ponzi scheme… will result in years… and years… and years of imprisonment for both Guth and Yaguda…

By: Anonymous on 8/25/08

Sounds familiar;

President Of Mortgage Company Gets 9 Years For Ponzi Scheme

Anthony G. Christou, 57, Dunwoody, Georgia, was sentenced to over 9 years in federal prison by United States District Judge William S. Duffey on charges of wire fraud and money laundering arising from a multi-million dollar investment fraud scheme.

As previously reported by Mortgage Fraud Blog, Christou was convicted by a jury in federal district court following a five day trial on charges of wire fraud and money laundering relating to an investment fraud scheme.

According to the United States Attorney for the Northern District of Georgia, David E. Nahmias, and the evidence presented in court at trial: Between January 2004 and January 2006, Christou, who was at the time president of his own mortgage company, ”Atlas Mortgage Inc.,” engaged in a scheme wherein he and others acting on his behalf solicited individuals, including business associates, personal friends and members of his church, to invest with him. Christou informed his investors that he would use their money to underwrite safe and secure bridge loans for wealthy individuals who were selling a house and needed funds to use as a down payment on newly acquired real property or to assist real estate developers with their short term capital needs. Christou entered into short term promissory notes with his lenders, the terms of which were dictated by Christou, to memorialize their investment.

Christou falsely represented that his investors’ money would be secured by his borrowers’ equity and would be repaid, with substantial interest, in a short period of time. Between January 2004 and January 2006, Christou took in more than $29 million from investors, purportedly to fund bridge loans. Instead, he used his investors’ funds to repay his principal and interest obligations to earlier investors and, unbeknownst to his later investors, laundered more than $7 million of their assets to fund his gambling activities at casinos in Nevada, Mississippi, and New Jersey.

Christou was indicted by a federal grand jury on November 20, 2006. The four wire fraud counts for which he has now been convicted each carry a maximum sentence of 20 years in prison and a fine of up to $250,000 per count. The three money laundering counts each carry a maximum sentence of 10 years in prison and a fine of up to $250,000 per count or not more than twice the amount of the criminally derived property involved in each money laundering transaction. Sentencing is scheduled for May 6, 2008 at 9:30 a.m. before United States District Judge William S. Duffey, Jr.

“This defendant personally met with dozens of victims, telling each that he would use their money to underwrite legitimate mortgages. He knew at the time that he had no intention of using his investors’ money legitimately, but rather that their funds would be put to use in keeping a massive Ponzi scheme afloat,” United States Attorney Nahmias. “Mr. Christou racked up more than $29 million in fraudulent investment in just two years, a significant portion of which was diverted to his gambling activities. The jury’s verdict after only five hours of deliberation and the likelihood of a long prison sentence in this case should send a clear message that this type of fraud will not be tolerated.”

Rebecca A. Sparkman, Special Agent in Charge, IRS Criminal Investigation, said, “Nearly a century after the first Ponzi scheme was prosecuted, unscrupulous individuals have continued to use this scheme to defraud innocent investors. IRS Criminal Investigation will do its part to ‘hold the line’ against such individuals in order to protect the investing public.”

By: Anonymous on 8/25/08

Forensic accounting will discover what she and Josh did with the monies she received from Heritage Oaks Bank – $20,000,000 has gone into something somewhere and it will be ours. The Olive Oil company and its contracts with various distributors and the ranch equipment are assets as are her vehicles, jewelry, art, and anything else of value. When fraud is proven, the trustees can make claims on all this.

By: Anonymous on 8/25/08

Other LLC's

Cayucos Pierponit, LLC

EFI Property Management, LLC

Renascent, LLC

By: Anonymous on 8/25/08

Sorry to say investors, but if you are holding on the the hope that Karens personal assets are going to end up in your hands, you are going to be very disappointed, if you read the article above it clearly states that Heritage Oaks Bank owns everything that Karen has, and then some, lets just hope that some of the llc property she has bought does not have liens on them from some other bank she seems to have duped

By: Anonymous on 8/24/08

To check the "officials" people behind the LLC entities go to the Secretary of State website search form at:


Type in any LLC or Corp and the man (or woman) behind the curtains will be revealed.

As for Brizzolara 8, LLC that search revealed Fetyko. The link is:


Your ISLAY 6, LLC results Fetyko again.


Please contact our group at fullyfunded93401@yahoo.com? I may have more information for you.

By: Anonymous on 8/24/08

Happy to hear that Karen and Josh are enjoying their remaining time on the outside. I'm all for getting that award winning olive oil out there. It's to our advantage that she make it as profitable as possible before we take possession of it. Don't get any on ya, Karen and Josh! Also heard that someone copied Hodin's cartoon and slipped it in with the Palolivo brochures. Hope it didn't cause any embarrassment.

By: Anonymous on 8/24/08

Thanks for the LLC list. I'm sure the Trustees will be interested in looking at them. What about Brizzolara 8, LLC and Islay 6, LLC? Any connection to Karen?

By: Anonymous on 8/24/08

I was in Paso Robles this Saturday afternoon and I saw an interesting thing. There was a booth featuring Pasolivo Olive Oil. You might be familiar with Pasolivo. That’s the company that used Estate Financial checks to pay venders and employees. If you invested in Estate Financail, you might even say that Pasolivo is your olive oil company, and not just because you like their product.

Anyway, I was curious if Guth and Yuguda would be brassy enough to be there and sure enough, they were. It was just like nothing criminal had happened and they were the bright new stars of the olive oil business they had always pictured themselves to be. Not a hint of shame or wariness. Not a fleck of remorse or embarrassment or guilt over the ruined lives and shattered dreams they have created for other people.

There they stood, the dangerous old cow and her pus gutted calf, basking in the sun and enjoying the fruits of their hard earned swindle. I think Karen must have made one hell of a campaign contributation to the District Attorney to be that confident about showing herself in public. But then, at least so far, they have had nothing to fear from the authorities. I guess it is better for her to be peddling olive oil in the park than to be basking by the pool in Brazil.

I am collecting quite a set of stories about Karen and her history in New York and Southern California before she opened up Estate Financial. Anyone who would like to contribute,

By: Anonymous on 8/23/08

Most District Attorney’s, at least in San Luis Obispo, nearly always has designs on being elected judge. I would think that an offer of the Estate Financial victims to fund an advertisement describing how the largest criminal conspiracy in the history of the county was not acted on in a timely manner after the District Attorney was aware of what was going on, would be an election issue. To pour salt on the wounds of Estate Financial Investors ( let me point out I am an investor, not somebody who writes to this post stroke their own ego publicly about how smart they were because they didn’t invest) the investors, through property taxes, pay the District Attorneys salary. Law enforcement hates it when citizens use that argument but in this case it has a little more weight. By encumbering deeds for more than the property is worth, Karen Guth increased the tax revenue for San Luis Obispo by millions of dollars. She hasn’t created any current revenue because she never paid the tax obligations on the property but down the road San Luis Obispo County is going to get a wind fall in revenue. The District Attorney’s Office gets its fair share of that money.

There are no doubt a boat load of rationalizations why the DA didn't do his job. If you contact the office, an administrative assistant, not a law enforcement professional, will get back to you with a form letter. There is evidently no need to bother the District Attorney about the misappropriation of millions of dollars. The point is, Karen Guth is a megalomaniac. I would imagine her most audacious moves, as far as transferring deeds to muddy the water and hiding money for her own enrichment came pretty late in the game. Where a normal person would back off, Karen became energized and really increased her efforts to rape and pillage.

Looking into one misappropriation of funds and arresting her would have stopped the looting. I contend it was a lack of action by the D.A. after it became apparent what was happening that resulted in many more millions of investor money disappearing. I don't think anybody who knew the specifics of the District Attorney’s inaction would want someone like that as a judge.

I for one am willing to donate money to make sure this D.A. am never elected as a judge. If he had been willing to arrest Karen Guth for one clear cut act of fraud, as defined by the Penal Code, early in the game, a lot of investor funds would still be invested in real estate belonging to the fund instead of having the money in Karen and Joshua's pocket.

Years from now, when NBC Dateline does it’s investigative story on this fiasco and our current District Attorney’s children ask him why he didn’t stop what was going on, I wonder if he will tell them it was a complex case and he just didn’t have the expertise or the courage to do anything about it.