Round two in the Guth and Yaguda asset battle
February 23, 2010
The battle over the assets of Estate Financial principals Joshua Yaguda and Karen Guth is slated to resume next month.
Earlier today, San Luis Obispo Superior Court Judge Jac Crawford continued the asset distribution hearing until next month when banks, developers and a variety of other creditors can resume their quest for financial recovery.
Last April, Crawford listened as alleged creditors laid their claims to the proceeds of two Chevron gas stations located in Templeton and Morro Bay the currently incarcerated pair partly owned. The stations were sold and the funds were placed in a secured account.
At the March 23 hearing, Crawford also will hear arguments and claims over the pair’s remaining assets, which include an office building on Ninth Street in Paso Robles, their Pasolivio olive ranch, the Willow Creek LLC, various rental properties and a beach home in Cayucos.
Even so, most of the properties are over-encumbered and as such hold very little or no value to investors looking for compensation for their losses.
Crawford will also hear arguments for and against the appointment of a receiver for the liquidation of the remaining assets. Creditors who want to address the receiver issue are required to serve all parties with their views by March 9.
In December, Crawford sentenced Guth to 12 years in prison and Yaguda to eight years for fraudulently selling securities without the proper licenses, lying to investors and running a Ponzi scheme.
More than 3,400 people invested their monies with Guth and Yaguda, who promised 12 percent interest on property-secured investments. Estate Financial’s portfolio contained more than $317 million in monies owed to investors when the company filed bankruptcy in 2008.