BULLETIN: Gearhart crashing, burning
September 16, 2008
By THE EDITORS
Attorneys for North County developer Kelly Gearhart, the darling of Atascadero city officials, hard-money lenders, and local banks, encountered Judge Charles S. Crandall Tuesday morning.
The San Luis Obispo County Superior Court jurist took position and control from Gearhart on his Morro Road LLC and appointed a limited receiver. The LLC owns real property leased to Tastee Freeze in Atascadero, and numerous unfinished projects, all funded by Hurst Financial Corp. (HFC) investors.
Tuesday’s action accrued from a lawsuit filed by Murray Powell and David Rios alleging fraud by Gearhart and HFC principle Jay Miller. Crandall approved a plaintiff request and appointed Susan Uecker as the troubled project’s receiver.
Uecker was ordered to provide the court with a report within 90 days regarding status of the Morro Roads LLC’s holdings.