Atascadero’s C.R. Lara loses $750,000 judgment

March 30, 2009
Mustang Village Mobile Home Park was deemed "too dangerous" for owner to visit, according to C.R. Lara. -- CalCoastNews photo

Mustang Village Mobile Home Park was deemed "too dangerous" for owner to visit, according to C.R. Lara. — CalCoastNews photo

By DANIEL BLACKBURN

A trusted financial advisor alleged to have systematically looted a client’s account over a four-year period has been ordered to pay more than $750,000 to Liz Berman, owner of an Atascadero mobile home park. The February order against Cuauhtemoc Roa (C.R.) Lara includes $100,000 in punitive damages.

Lara, an erstwhile San Luis Obispo County stockbroker, controlled investments for the Liz Berman Family Trust for more than two decades. Lara also managed one of that trust’s major assets, the Mustang Village Mobile Home Park in Atascadero, purchased in 2004 at his behest.

In court papers seeking damages, Berman listed allegations against Lara including breach of fiduciary duty; concealment; breach of contract; fraud and deceit; and conversion.

Berman sued Lara in July 2008 after learning that Lara invested $405,435 in high-risk securities with Ameritrade and lost $223,506 in less than a year, according to sworn court affidavits. Lara also diverted $387,780 in rents from the mobile home park, Berman testified, and “repaid” $30,000 in personal loans from the Berman trust with the trust’s own money.

Lara, 61, was not in court for the judgment and could not be reached for comment for this article.

“I won all claims. That’s because Lara’s a criminal,” said Berman following the judgment. “We trusted him, and he was lying, lying all the time. This man destroyed us.”

In her successful claim, Berman called Lara’s actions “willful, wanton, malicious, and oppressive, undertaken with the intent to defraud.”

Lara failed to inform Berman, she said, that when he left Dean Witter Reynolds Inc. of San Luis Obispo to form his own company, he no longer was licensed to sell stocks or securities.

 Atascadero's Mustang Village Mobile Home Park was at center of big lawsuit judgment. -- CalCoastNews photo

Atascadero's Mustang Village Mobile Home Park was at center of big lawsuit judgment. — CalCoastNews photo

In 2004, Berman said Lara convinced her to purchase the Mustang Village property on Rocky Canyon Road, which included a permanent residence and, eventually, five mobile homes for rent.

Lara, as manager, handled the mobile park finances, but failed to pay taxes and other fees related to its operation. He persuaded Berman to stay away from Mustang Village, she said, “because it would be unsafe for me to ever be at the park.”

“He told me that the people who rented there would find out where I lived and make life miserable for me,” she told CalCoastNews this week. “I later found out that Lara told all of the tenants that he was the Village owner.” Lara required several tenants to pay in cash, and others paid by checks made out to Lara, said Berman.

“He just took everything he could take,” Berman added. “And he always seemed to have a ready explanation for [questionable] transactions.”

Berman learned in February last year that Lara had been allowing a female acquaintance to live rent-free in the mobile home park’s permanent residence for several years – after telling Berman that a family of four was renting it for $1,600 a month. He also was running several private business operations from the Mustang Village office without permission, according to court papers.

Berman said she is “disappointed and surprised that the district attorney hasn’t shown the slightest interest in this case. They told us it was just a civil case.”

Attorney Michael Pick of San Luis Obispo, who represented Berman in the latter part of her civil action, said efforts are under way to recover the judgment from Lara. Lara claimed under deposition that he was “poor and unemployed.” The judgment was won by attorney Dennis Balsamo of San Luis Obispo.


Loading...

One Comment

  1. ccn_debate says:

    Member Opinions:
    By: gsmann on 3/31/09
    I had purchased a mobile home and space at Mustang park prior to the purchase by Mrs. Berman. Lara informed the tenants that he represented the new owners and their intentions were to close the park. Making our parcels worthless. He then made us an offer to buy our unit at 80 cents on the dollar. We accepted that offer since we had no hope of recouping any of our investment otherwise.
    We have since spoken to Mrs. Berman and been assured that she had no intention to close the park.
    Lara refused to let tenants use the swimming pool and then filled it with debris (one of the features of the park and greatly valued in Atascadero) further devaluing our investment and the investments of many others who owned not only their mobiles but also the lots they located on as did we.
    Lara is a criminal and should be prosecuted as such.
    By: Bluebird on 3/30/09
    Why was Lara no longer licensed to sell stocks?
    Did anyone see the letter Berman sent to the DA and his reply?
    It sounds like she won in court but if Lara has no resources what has she won?
    Did the court decision say there was fraud? There are still a lot of unanswered questions.

    (1) 1 Total Votes - 1 up - 0 down

Comments are closed.