Gearhart hiding assets

May 20, 2009
Gearhart's 1935 Packard

Gearhart's 1935 Packard

By KAREN VELIE

Bankruptcy trustees have seized a collectable car and are looking into allegations ex-North county developer Kelly Gearhart and his wife, Tamara Lowe, have hidden assets during their high profile bankruptcy.

Bankruptcy trustees seized a yellow 1935 Packard Gearhart and Lowe owned because the couple failed to disclose the asset in their bankruptcy filing, said attorney David Farmer with the law firm of Farmer and Ready.

The couple also failed to disclose a $48,000 annuity with Jackson National Life they cashed out for $25,450 on Oct. 1, 2008, according to sources.

Another alleged account was first held in Trust Administrative Services in San Diego and then transferred to a local bank. Now, say sources, the $2,659,531 IRA account may no longer exist.

Though Gearhart listed a $10 million insurance policy on himself — with hard money lender Jay Miller as the beneficiary — Gearhart failed to note the quarterly charge of $2,504 he pays to keep the policy active.

Gearhart and Lowe filed the Chapter 7 bankruptcy petition on February 11, in Ohio, claiming $6.5 million in estimated assets and $45.1 million in estimated debts.

In November, the couple moved to Wadsworth, Ohio, following threats of physical violence by an angry investor. Gearhart filed the bankruptcy petition in the Northern District of Ohio U.S. Bankruptcy Court.


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One Comment

  1. ccn_debate says:

    Member Opinions:
    By: CommonSenseChick on 7/10/09
    MO- Who the hell are YOU? And why bring all the past up? This has NO bearing….let’s talk.

    By: BeenThereDoneThat on 6/3/09
    To last comment. YAWN!!

    By: Lifelongatasresident on 6/3/09
    Raymond Gin was killed on Traffic Way in a car driven by Gearheart, no drugs or alcohol were involved, just a kid driving too fast. Michael Gearheart, one of his older brothers died in a swming accident at Nacimeinto Lake on 8th grade ditch day, no fowl play, no alcohol, he swam down and got caught in some wire and could not get free. It destroyed the Gearhart family. So stop the gossip shit. Gearhart was never a partier and his only addiction was working even as a kid and a correctional officer. I lost alot of money invested at Hurst, but its not just Gearheart there are many more like him. Stck to the facts and if you dont know the truth and you were not there, KEEP YOUR MOUTH SHUT!

    By: BeenThereDoneThat on 6/1/09
    P.S. ;-)

    By: BeenThereDoneThat on 6/1/09
    And let’s not forget it’s original orgins, when someone politically connected would tell someone to go down to the bar and GO Sip. Drink while listening to the commoners to find out which way the wind blows.

    Like many words guess it depends on which form of and meaning of many, you are using to make your arguement.

    So in encence I guess all news, any conversation we have, or just plan talking could be gossip.

    By: George on 6/1/09
    Gossip: * normalise and reinforce moral boundaries in a speech-community
    * foster and build a sense of community with shared interests and information
    * build structures of social accountability
    * further mutual social grooming (like many other uses of language, only more so)
    * provide a mating tool that allows (for example) women to mutually identify socially desirable men and compare notes on which men are better than others.
    * be used as a form of passive aggression, as a tool to isolate and harm others
    * provide a peer-to-peer mechanism for disseminating information in organizations

    By: BeenThereDoneThat on 5/31/09
    From wikipedia about gossip.

    It forms one of the oldest and most common means of sharing (unproven) facts and views.

    Hence why I am trying to prove if true for myself instead of taking others word for it. Thanks.

    By: OsborneCox on 5/31/09
    Thanks, George.

    By: George on 5/31/09
    Anyone who doubts its awesome power should see the Wikipedia entry for Gossip.

    By: BeenThereDoneThat on 5/31/09
    Truth be known, stop acting like a poser. I am asking for information so I can base an opinion on facts that I can research for truth instead of taking someone’s word for it. That would be gossip my friend. Getting facts is not.

    By: Truthbeknown on 5/29/09
    In the scheme of things, does any of this gossip matter?

    By: BeenThereDoneThat on 5/29/09
    Thanks Osborne. I wraked my brain last night trying to think of way to communicate other than this but came up with nothing. This is fine. I go through the Library periodically so I will check it out.

    By: mo on 5/28/09
    osbornecox:
    When does a mexican become an indian?

    When the casino application is approved

    By: mo on 5/28/09
    osbornecox:
    I am still not convinced ! As far as being credible, at the time of the accident, Atascadero Police did not exist. All of us kids at that time we basically self-governing. The local sheriff handled that case and no charges were filed. Call the norton family, they suffered severely. I stick by my previous post, gearhart was drunk! Recently Gearhart was seen in Las Vegas at a casino with two bodygaurds by his side. Since he got the sh#t beat out of him resently and he is a complete puss, he know is using borrowed money to defend himself. Maybe Liddell will help!

    By: BeenThereDoneThat on 5/28/09
    Osborne thank you for the offer. I do have a way to make that happen. Could you give me the month/date/year of paper and which paper? Trib., Atas. News, etc. I could probably go to the librarary and look it up I would think? Thanks.

    By: insider on 5/28/09
    Nameless,
    You would never call designated construction loan fees income. To do so would be fraud. If you had rentals you might have income that would be offset by costs, the mortgage, utilities, management fees however even then when someone ask you your income they are requesting your income after costs when you have a buisness. Anyway you can’t consider proceeds for construction as income in no way no form. If you borrow money to build a garage onto your house do you consider that income? Lets get real. So I guess your saying he would just go pick up some borrowed money from Hurst and bingo it’s income.

    By: Nameless on 5/28/09
    insider

    Just for clarification; You can have a $5 Mill income and have $500,001 cost than you still have no taxable income. In booming real estate market having $6 Mill income is no biggie. Its when all finished bills paid whats left what makes a difference. I think Kelly’s problem is what happened to the money he received for construction. was it spent on the projects as claimed, or just wasted as many think.

    By: BeenThereDoneThat on 5/28/09
    Just curious on this whole did Kelly drink and drive and possiblly kill someone, were charges ever brought if this was the case?

    By: mo on 5/27/09
    OsborneCox:
    The truth is Kelly partied his ass off and the night of the accident he was 15 years old, drunk and was driving Linda Norton’s new capri. Its sad you are trying to distort the facts. Chris Molina, A.K.A OsborneCox stop protecting your buddy. He killed a boy while drunk, thats a fact!

    By: DashRiprock on 5/27/09
    Within 18 months he’ll be locked up a minimum of 20-years.

    By: BeenThereDoneThat on 5/27/09
    I checked out Kelly’s property tax sitution back in 06′ not long after I found out you could access it online from the county records. At that time he was up to date on most everything.

    By: insider on 5/27/09
    If we have learned anything about lending money its check their last two year taxes. They may tell you they make 6 mil a year but I bet they don’t tell the IRS that if it isn’t true. Run a credit report. Finally check to see if they have paid property tax on all their real estate. I would venture to say none of these developers would have passed this simple smell test that would only cost $25 for the credit check a request for their taxes and a trip to the county recorders office. But then did anyone really want to know?

    By: insider on 5/27/09
    He put down he was making 500k per month and you loaned him money without even taking a look at his income taxes to see if it was true?

    By: Al on 5/27/09
    Was curious because there must be some IRS issues involved with Gearhart and his LLC’s. On my loan doc’s he listed his income at $500K a MONTH!

    By: insider on 5/27/09
    A CPA only does what he’s paid to do. If you don’t pay him he doesn’t do anything. If you only pay him to file your taxes once a year he files your taxes once a year. Whats the punch line about the guy who interviews three CPAs asking them what 2 plus 2 equals the first two answering 4 of course while the last one that gets the job instead of answering the obvious simply looks back at his future client and responds “what would you like it to equal”

    By: Fedup on 5/27/09
    Fred Russel, CPA was his accountant before he retired. Gearhart also screwed him out of a bundle. He probably doesn’t need a CPA any more.

    By: Al on 5/27/09
    I am sure someone knows who represents K. Gearhart, LLC’s and all as CPA. Refresh our memories please, thanks.

    By: BeenThereDoneThat on 5/26/09
    Insider. You missed the point. I don’t think anyone is crying for him. It is a case of how did we get here. Which you are doing the same with your statement that he was a bad businessman, because he couldn’t balance his books. That is true also.

    Follow the read and I don’t think anyone is defending him. I think all have said if found guilty, let him do his punishment.

    I say innocent till proven guilty and let him have his day in court if charges are found.

    That said in my humble opinion, I think he is guilty and will be found as such.

    By: insider on 5/26/09
    Enough crying for beeffart. 10 to 1 his books haven’t balanced for 10 years. 50 to 1 he never even tried to balance his books. When you run out of money start a new project.

    By: BeenThereDoneThat on 5/26/09
    Yea Osborne. It isn’t easy. I have been screwed out of THOUSANDS by him but again having done business with him for years, I do not think this was his original intention.

    Again I think it snowballed on him the last four or five years.

    His old man was never crazy about the business types he was working with.

    By: BeenThereDoneThat on 5/26/09
    Sad part is, is that I don’t think he started off to be crocked. I think it evolved over time. Specially after he got the plane and a taste of the good life.

    That happens most of the time in these cases. People start off with good intentions but greed eventually grabs hold of some.

    Not saying that is an excuse and excuses screwing all these people, just that seems to be how they get to this point.

    By: xlswede on 5/26/09
    Human garbage, nuff said!

    By: FRACTUREDFAIRIETALES on 5/26/09
    Perhaps he had some type of agenda with anyone who looked to be more successful than himself? It seems that he has had a large chip on his shoulder for a long time and somewhere he missed the honesty gene. Too bad for him. It is easier to forgive an alcoholic than a crook.

    By: BeenThereDoneThat on 5/25/09
    Thanks Osborne. I know a lot about Kelly after High School but not before that. Yea I knew John and heard the story about his brother.

    Hell Kelly didn’t even listen to music till recent years. His drug of choice that I, as many also knew of, was building.

    That said though if Kelly is proven guilty of any of the things about him, he needs to serve whatever punishment is given.

    By: BeenThereDoneThat on 5/25/09
    I know that Kelly didn’t drink or do drugs for years. Is this (Drunk driving) reason why Kelly didn’t drink? Or is this just a story? First I have ever heard of it and I have heard many things about Kelly over the years.

    By: bluemule on 5/24/09
    Gearhart was driving drunk and killed someone? Was he prosecuted and convicted? If so, that means that JoAnn Main and the Atascadero Chamber of Commerce knowingly appointed a convicted felon as Atascadero’s “man of the year.” While I try hard to remain hopeful and positive, this city may just be a lost cause – to remain forever socially and politically backward.

    By: DashRiprock on 5/24/09
    How this guy is still walking the streets is beyond me. He should have been locked up along time ago. What in the world are they waiting on?

    By: mo on 5/23/09
    Gearhart killed a fellow high school student in a drunk driving accident.R.I.P Raymond.

    By: BeenThereDoneThat on 5/22/09
    Yea it’s sitting on a 05′ or 06′ Dodge Viper, frame and engine. I can’t remember exact year. A Viper alone is over $60,000, then all the work done in restoring the rest. Yea I could ss $150 plus.

    Didn’t he also take the Porche with him? I thought that was close to 200k.

    By: Truthbeknown on 5/22/09
    I didn’t know such a small man could have such a big ass-et!

    By: WISEMAN on 5/22/09
    Must say the guy has taste in cars!

    By: Al on 5/22/09
    That pretty yellow Phaeton is worth around $150-175,000.

    By: BeenThereDoneThat on 5/22/09
    Well at least it is another possible felony they can hopefully, eventually, use against Kelly. On the first page of his bankruptcy where he and Tamara signed, it states about disclosing of all assests under penality of perjury and possible five years imprisonment for failure to do so. Maybe Tamara can go to a women’s prison too!!

    By: hotdog on 5/21/09
    Gee, what a surprise Gearhead is not acting honestly. I’m shocked. Is it true that just one threat drove him away? I didn’t know he was such a paper tiger, he put on such a good show as a blowhard and cheat. I hope the little jerk is reading these blogs, and it is lovely to see the A CoC with such a problem child. I wonder who they will choose next time for sap of the year; since Adolph, Benito or Joseph are no longer available who could possibly satisfy their requirements? Bush? He’s still around.

    By: Harlow on 5/21/09
    These crooks have been allowed YEARS to disperse and hide their assets.

    After all this time accounts may no longer exist?

    WHAT a surprise!!!

    By: Al on 5/20/09
    On another note “Trust Administrative Services” seems to be a player in Estate Financial games with investors.

    By: Al on 5/20/09
    Unfortunately the 10 mil policy with Jay Miller as beneficiary would not cover a tenth of the damage caused by this “insult to dogs”.

    By: bluemule on 5/20/09
    I’d like to say that the guy’s crooked as a dog’s hind leg, but that would be an insult to dogs. But hey, as the Atascadero Chamber of Commerce “Man of the Year” it comes as no surprise.

    (-4) 6 Total Votes - 1 up - 5 down

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