Kelly Gearhart: Fraud, arson and betrayal

November 18, 2010

Kelly Gearhart

(Editor’s note: This is the first in a four part series about the story of North County developer Kelly Gearhart and his political allies.)

By KAREN VELIE

Amid a federal investigation into racketeering, money laundering and mail fraud, developer Kelly Gearhart’s stepmother claims her notorious stepson’s illicit activities also included forgery, bribing public officials and arson.

The latter exploit was one that helped fund Gearhart’s transition from being a prison guard to become one of San Luis Obispo County’s most prolific builders.

Marion Warner, Gearhart’s common-law stepmother of 35 years, said Gearhart’s father gave him a building in 1985 that the younger Gearhart held onto for a year before asking his father to hire an arsonist in order to collect on the structure’s insurance.

The fire left 16 people homeless, injured four firefighters, destroyed two apartment buildings and damaged three additional structures, according to The Athens Messenger, a newspaper in Ohio. Firefighters from five cities fought the flames, which authorities said was set by an unknown arsonist.

After being silent through much of her stepson’s publicized financial troubles, Warner agreed to speak for the record in a series of interviews with CalCoastNews about Gearhart.

In the interviews, which took place over several weeks, Warner talked about her view of the rise and fall of Gearhart, Atascadero Chamber’s former Citizen of the Year.

Marion Warner, John Gearhart, Kelly Gearhart, Tamara Lowe, Doug Gearhart and Brenda Grenough

On his 18th birthday, she said Gearhart’s father gave him the family’s traditional gift for a man coming of age: a box of condoms. A few days later, John Gearhart and Warner left Atascadero for Ohio.

At the time, Kelly worked at a Scolari’s market in Atascadero. He put himself through the police academy and, after graduation, worked as a prison guard at the California Men’s Colony near San Luis Obispo.

Not long after he started his five-year stint as a prison guard, he began doing construction jobs on the side.

“He started out honest — building houses for guys at the prison,” Warner said.

While Gearhart was in his mid 20s and still working as a prison guard, his father suffered a massive heart attack and decided to move back to San Luis Obispo County, but not before transferring the small three-unit apartment building he owned in Ohio into his son’s name.

Gearhart owned the property for about a year before asking his father to hire an arsonist to follow through on their plan to collect on the insurance, Warner said.

On Oct. 9, 1986, authorities said an unidentified arsonist started the fire in an upstairs apartment in Gearhart’s building at 22 Hocking St. in Nelsonville, Ohio. A pair of tenants moved from the apartment building the day before the fire, leaving the three-unit building vacant, according to The Messenger.

The fire spread to a second apartment and business complex leaving 16 people homeless, many escaping with just the clothes on their backs. Three additional buildings – the WAIS radio station building, the Nelsonville TV cable office and a residence – sustained smoke and water damage.

Four firefighters suffered smoke inhalation, one seriously, according to the Messenger. Volunteer firefighter Pat Bullock was admitted to Doctors Hospital where he remained for three days in the intensive-care unit.

According to the Athens County Tax Assessor’s office, Gearhart’s former apartment building was destroyed and the land where it stood is now a parking lot.

“The Gearharts are not above a little larceny,” Warner noted seriously. “They got a healthy chunk of change out of it.”

Marion Warner and John Gearhart

Warner said she was with Kelly Gearhart’s father John Gearhart when the authorities called to inform him about the fire.

“He acted surprised,” Warner said and added that she knows the person from Nelsonville who John Gearhart hired to start the fire.

The money received from the insurance, along with Gearhart’s connections to government officials, helped to start his new career as a developer in Atascadero.

Although arson was the determined cause, no one has been accused of or arrested for setting the blaze.

Following the fire, Gearhart suddenly had the funds to go ahead with his projects while avoiding many of the hurdles and fees less connected developers had to deal with in Atascadero.

Gearhart’s alleged ability to manipulate public officials by plying them with favors and gifts helped make him immune to some of the building inspections and fee requirements that were required of other developers.

Kelly Gearhart at his home in Atascadero

Warner said Gearhart would brag to his father and to her that he had “paid off”  public officials such as Atascadero City Manager Wade McKinney and County Tax Assessor Tom Bordonaro with cash, excursions in his jet and exclusive event tickets.

“He would say that McKinney had been taken care of,” Warner said. “Kelly said you had to put money out to get things done.

“Kelly gave goodies like the dream ticket (boxing). It was OK, like a realtor buying a contractor a case of booze after a sale.”

During family visits, she said Gearhart would boast to his father and her that Atascadero City Councilmen Tom O’Malley and Jerry Clay were his guys and those who wouldn’t do what he wanted were described by him as “commies” or “nuts.”

“While he was on the phone, I would hear him saying stuff like. ‘I told you there is no way anyone is going to find that’ ”, Warner quoted him as saying. “One time, he said, ‘I told you, I took care of that guy, he won’t ask any more questions.’ ”

As Gearhart worked to build more than 400 new homes in the Atascadero area, some city inspectors and officials looked the other way, allowing Gearhart to avoid paying city fees due to falsified and unfinished inspection reports costing the city several hundred thousand dollars.

After former Mayor Mike Brennler went to the San Luis Obispo County District Attorney’s office with information that the city had failed to collect more than $200,000 in fees from Gearhart because 30 cottages were not finalized correctly, he was chastised by local news reporters for attempting to tarnish Gearhart’s name.

Several employees and city officials said that City Manager Wade McKinney, Assistant City Manager Jim Lewis, and Community Development Director Warren Frace instructed city staff to allow Gearhart to skip the city’s Planning Department and deal directly with upper-level city employees.

City officials contend staff would have noticed if initials had been forged.

Warner describes afternoons at Gearhart’s office on Morro Road in Atascadero with Kelly’s wife, Tamara Lowe, and Gearhart laughing over which one was the best at forging initials of Atascadero employees on the city’s inspection reports.

After forging the documents, Gearhart had an employee in the city who would place the falsified reports into city project files, Warner said.

“We were ordered to do illegal things,” said one city employee, who refused to be named — as did a handful of other city workers – out of fear of being fired or blackballed for future jobs.

“Gearhart’s projects were fast tracked. Projects went directly to Warren Frace and skipped planning,” this city employee added.

Gearhart had a number of sub-contractors that he worked with when he started building homes locally in the 1980s. During that time, he persuaded them to move into positions where they could assist him, several sources claim.

Two of the most notables among these former sub-contractors are former Atascadero City Councilman Ken Lerno and current San Luis Obispo County Planning Commissioner Bruce White, Warner said.

Lerno, Gearhart’s former electrician, got into the lending business and began working for Hurst Financial Inc., the lending company that allegedly worked with Gearhart in running a Ponzi scheme that has left area investors claiming more than $100 million in losses.

While Lerno worked for Gearhart’s lender, he continued working with Gearhart and the pair began developing properties together.

Gearhart and Hurst Financial Inc. CEO, Jay Miller, asked Lerno to a weekend in Lake Tahoe where they wined and dined Lerno while encouraging him to seek a seat on the Atascadero City Council, where his votes could have a financial benefit for each of them, said a former friend of the builders who has asked to remain unnamed because of fears of those involved with Gearhart.

Lerno agreed and in 1996 he was elected to the City Council.

In 1999, Gearhart purchased a property on Traffic Way close to a property he and Lerno owned, according to city documents.

A few months later, Gearhart transferred the Traffic Way property to one of his longtime business partners, Daniel Mackey.

However, Gearhart’s name remained as the communication contact for the city and Gearhart continued to attend planning meetings to discuss the proposed project known by some as the “Shacks on the Tracks,” a high-density, low-cost housing project.

Lerno voted to approve the project, which included the proposed construction of homes that were to be built on a narrow piece of land adjacent to Union Pacific’s railroad tracks.

A concerned citizen then stood before the council and explained Lerno’s financial ties to Gearhart.

Lerno resigned from the council on the same day.

“Kelly was really upset when he resigned,” Warner said, contending that her stepson wanted Lerno to weather the storm and remain on the council. “Lerno was afraid of going to jail. And then the FBI started crawling up Kelly’s ass.”

After Lerno’s resignation, Warner said FBI agents tag teamed the Gearharts in an attempt to get information about the alleged collusion. Agents found Tamara Gearhart at the Gearhart office in Atascadero and Kelly Gearhart at a job site in Santa Ynez in Santa Barbara County, where he was working on a project with his longtime golfing buddy and one of the owners in a group of bars in San Luis Obispo, Habib Tavassoli.

Shortly afterward, the grand jury interviewed his father John Gearhart over the allegations of collusion. According to Warner, he took direction from his son before he testified.

“Dad said what he was supposed to say,” Warner said, adding:

“Gearharts don’t worry about telling the truth, they worry about later on. No one got in any trouble.”

Bruce White

Kelly Gearhart’s former plumbing contractor and executor of his and his wife’s will, San Luis Obispo County Planning Commissioner Bruce White, who was appointed by county Supervisor Frank Mecham, was one of the few people who knew how her stepson ran his business, Warner said.

White said he was not aware of any payoffs or that he was the executor of Gearhart’s will.

“Yes I did work for Kelly as a plumbing contractor,” White said. “I do not know what Kelly did with others, but he never promoted me into any positions.”

Gearhart also bragged to his family about his productive relationship with county Assessor Tom Bordonaro, his stepmother told CalCoastNews.

“He laughed and joked with his dad about buying a dinner with the governor for Bordonaro,” Warner said. “He spent a lot more time with Bordonaro than others knew.”

San Luis Obispo County Assessor Tom Bordonaro

An employee of Bordonaro’s said the assessor bragged that he and Gearhart went to Sacramento for a fundraiser with Republican Gov. Arnold Schwarzenegger and showed off a picture of himself and the governor to employees in the assessor’s office.

Seats at the governor’s table required a donation of between $50,000 and $100,000.

“I have never received a ticket to any fundraiser from Kelly Gearhart,” Bordonaro told CalCoastNews. “In fact, I do not have, nor have I ever seen, a picture of myself with the Governor at all.”

At about the same time, critics say Bordonaro directed his staff to do favors for Gearhart, including pushing the developer to the top of the list when processing housing subdivisions.

“I have never given Kelly Gearhart any special treatment, nor am I aware that any staff has either,” Bordonaro said in response to the allegations of favoritism.

However, it appears that Gearhart and his partners were not held to the same property deed requirements as other county builders.


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LensCleaner

Looking at the photos of Gearhart, Bordonaro and White reminds me of that 60’s song by the Temptations called Smiling Faces ….. here are some of the lyrics.


“Smiling faces sometimes pretend to be your friend

Smiling faces show no traces of the evil that lurks within.


The truth is in the eyes

‘Cause the eyes don’t lie, amen

Remember a smile is just a frown turned upside down

My friend let me tell you


Smiling faces, smiling faces sometimes they don’t tell the truth, uh

Smiling faces, smiling faces tell lies and I got proof.


Beware, beware of the handshake that hides the snake

I’m telling you beware, beware of the pat on the back

It just might hold you back

Jealousy (jealousy), Misery (misery), Envy.


Smiling faces, smiling faces sometimes they don’t tell the truth, uh

Smiling faces, smiling faces tell lies and I got proof.


Your enemy won’t do you no harm

‘Cause you know where he’s coming from

Don’t let the handshake and the smile fool ya

Take my advice I’m only tryin’ to school ya.”


Cindy

I couldn’t help but notice the wedding photo. What a strange family. The father wore a plaid shirt to his son’s wedding and the best man ( brother of the groom ) didn’t do much better! I mean, this is a wedding photo and it’s not as if the groom didn’t wear a tux.

Since John didn’t marry Marion in the 35 years that he spent with the lady, I wonder if that was his way of saying that getting married is to big deal?

I am reminded of the saying, “a picture say’s a thousand words”!


Thoughtful

And what is it they say about “judging?” I’m a student interested in forensic accounting which is what brought me to this article and blog. How does the media affect facts? After reading through, sometimes I think that I would rather be ripped off by Gearhart and his counterparts than spend any time with the likes of you people! Good grief, judging, and life threatening are just as bad, if not worse than fraud and corruption.


Cindy

Tell me another one Thoughtful, we’ve all seen your other posts. It’s a bit late to take on a new persona. Better to change your moniker rather than come up with a new story. I have no doubt that your IP address comes out of Ohio.


TacomaRose

If you’re a student you get a D-


Come talk to us and offer your drivel after you have lost your life savings like many of us have.


Are you thoughtful or gullible?


Nancimeek

Dear thoughtful


Go to Scrib’d.com and look at all the documents related to our father’s probate fraud against Grigger Jones and elizabeth meek then let me know your opinions on the forgery forensics report prepared by noted forensics expert Reed Hayes regarding the 1st amendment with forged signatuers. Our stepmother Elizabeth meek admitted in court she didn’t sign the document. Jones provided it to attorneys in Hawaii, talked about it in his affidaavit etc. and when on the stand last july looked at it as if he had never seen it. He also stated under oath that he had never seen the document before and that he had never seen his OWN affidavit which had his signature and his assistant Colleen Alexander had notarized it………………..Amazing. Also look over the Findings of Fact and Conclusions of Law we prepared That’s your Grigger jones.


BY the way he admitted on the stand that he is or was a partner with Kelly Gearhart and stated he primarily utilizes his law practice in the field of real estate development HELLO? Hmmmmm Grigger Jones primarily deals in real estate law? And his partner is Kelly Gearhart. DO THE MATH!


Nancimeek

Karen Velie? I want to say THANK YOU so much You are a gem in the field of news reporting and you should be applauded by the citizens of the Central Coast every where you go.


ANY news agency or newspaper would be fortunate to have you. I hope you take your story to the next level EVERYONE needs to know what happened here.


THANK YOU THANK YOU THANK YOU


thinkaboutit

Karen’s work single-handedly carries this site. I don’t always agree with the coverage, but she consistently does the homework of ten would-be reporters.


Right on.


Mr. Holly

This is all very interesting and I appreciate that CCN is keeping the story on the table. But after several years of allegations from all sorts of people I wish that some true facts and evidence would be provided to back up this story. If Karen has documents please post them. Mike B had 2 years with the keys to City Hall, does he have any documented proof to substantiate his allegations.

The bottom line is that I hope they do so that if the the City and/or Citizens of the Year are dirty lets sweep them out of town to where they belong.


MikeB

It would not be appropriate for me to post any corroborating documents/evidence as I don’t want to compromise any official investigation. What I had has already been transmitted to the Feds and Grand Jury and I trust they will be dealt with appropriately.


Mr. Holly

MikeB are you saying that you have the evidence to back up this story of corruption at Atascadero City Hall? Have you been interviewed by FEMA or the FBI regarding the evidence that you have? If so, when do you suspect that the s–t will hit the wall?

If you are correct, my hat is off to you.


Nancimeek

I have documents shedding light on Grigger Jones who was Gearhart’s attorney and partner. Let me know if you would like to see those. I have nothing to hide. I also havae tax returns prepared by Mike Gould the accountant hired by Jones in Paso Robles currently under review AGAIN by the IRS in Los Angeles for fraud. OOOOHHHHHHH The tax returns were prepared FOUR YEARS LATE and only after we complained and a n audit was prompted We were not notified as to the court hearings and therefore the IRS looked the other way and said everything was alright Not anymore


standup

Doesn’t it seem strange that both Gearhart and McKinney were both Citizens of the Year. More like Criminals of the Year.


MarkJames

Don’t forget about Grigger Jones. He is also under investigation and with good reason. Didn’t he assists Gearhart in several fiasco’s including hiding a million dollars in the Pi Ji Ho Ta casino fraud and then transferring the funds between several LLC’s? Wasn’t he complicit in advising Hurst in how and way’s to manage the funds he bilked from the investors? Didn’t he forge documents to Alvin Meeks last will and testament?

Ah alas, he was another Atascadeo ‘Citizen of the Year’.


Nancimeek

Hey mark James


Actually it is ELVIN Meek but my father had a sense of humor so no problem. If he was alive he would say “What? Am I one of the chipmunks” I sure do miss him. Contrary to what Robert Jones would have people believe. If you talk to Grigger he will tell you I am incompentent, a mental case, mentally unstable, among other words he has used to described me in the past. Does it hurt? You bet But considering it is coming from Grigger? What can you expect. If I had forged documents, coerced a poor english speaking widow who was not even an american citizen at the time of her soon to be ex husband’s death, I guess I would be desperate to slander the dead guys children. If you would like more information on our most recent court hearing (Grigger was a witness and took the stand for two days of questioning) contact me and I will e mail you the Findings of Fact and Conclusions of Law Grigger DID ADMIT in court that he was the attorney for Gearhart, that he handled transactions for the “NOW DISSOLVED” pe ji ho ta casino. If y ou want more e mail me at nmeek48409@aol.com and I would be more than happy to provide the 22 page document to you. There is a connection between Jones and the MLW LLC corporation. And some other transaction he was trying to complete in Utah…………………also the judgment against our estate for $300,000 plus will have to be paid by my dad ‘s trust and yet it was Grigger who brokered the deal. The Arkansas proeprty he assisted Elizabeth Meek to sell that DID NOT belong to the trust

That and with the blessing of Judge Tageman he moved the case from CA to Hawaii once he realized that it was getting sticky He said it was because the Bank of Hawaii was the co-trustee however elizabeth had her citizenship finalized in AUgust of 2005 at the same time the case was moved she didn’t need the Bank of Hawaii as a trustee after becoming a citizen but that didn’t stop Jones from moving the case to Hawaii.


Mr. Holly

You have to remember that McKinney, Jones and Gearhart were and are still real “close” to JoAnn Main who is the executive director of the Chamber.


MikeB

A footnote to my last comment:


I am indebted to Cal Coast News for their continued investigative journalism and encourage everyone to make a contribution so that such work can continue. It is the only way we can rid our communities of certain political impropriety.


MikeB

I think I am safe in saying that the vast majority of citizens want a government that is reasonably honest and acting in the interest of their community.


As we are learning this isn’t always the case. It is painful to confront certain maladies within our own communities.


When I left the Atascadero City Council in December 2008 I did so with the knowledge that there were significant breaches of ethics and probable violations of law within the walls of Atascadero’s City Hall. While on the council I did my best to blow the whistle and alert the citizens of what I believed was corruption, particularly as related to Gearhart’s dealings with city officials and what I firmly believe to be FEMA fraud.


I went so far as to provide information and documents to the DA’s Office where to my surprise I received a less than stellar reception. Only later did I learn that one of the investigators assigned to conduct an initial evaluation had family members who were financially linked to Gearhart. To say I was disappointed with the District Attorney is an understatement.


I had also raised a warning flag in reference to Assessor Bordonaro, but I do not know the extent or adequacy of the Grand Jury inquiry.


As related to the revelations of a Gearhart insider, I now see that my own knowledge of malfeasance was just the tip of the iceberg. I appreciate Warner’s candid interview with Cal Coast News for it sheds a new light on my own suspicions. Although I wish Warner had come forward sooner, I am mindful of the adage, “better late than never,”


During my last meeting overseeing the Council, I attempted to set the record straight reference a city employee who had been done a great injustice by City Manager Wade McKinney. I also warned that we hadn’t heard the last of the Gearhart saga.


Having seen the damage wrought upon our community and many decent people, I take no consolation in proclaiming my prediction was accurate.


Mike Brennler


standup

Mike, I personally didn’t agree with some of your decisions made as a council member, however, I must commend you on the whole Gearhart debacle. You were right about your suspicions along with O’Keefe. Hopefully heads will roll right into jail.


MarkJames

Judging by the verbal attacks that you received while you served on the Atascadero City Council and the contempt that continues to be directed towards you on occasion, it’s clear that you shook some trees, Mike. I appreciated you as did many of my acquaintances, friends, associates and neighbors. I am embarrassed that I didn’t do more to support you and would have if I’d been aware of what was happening down at City Hall. Many was the time we heard about the gang that disrupted every City Council meeting and even that they were encouraged to continue obfuscating the real issues by none other than Tom O’Malley and Jerry Clay (big Gearhart supporters) as the approving ring leaders.


I would like to remind every voting citizen that it isn’t enough to elect a leader or representative, they can not support alone, they are but one voice, elected or not. Taking that action upon ourselves is simple, speak up and rally behind the officials that you trust. It’s difficult to watch good people with honest intentions take the constant abuse that people like Mike was subjected to. It could have been different if those who had elected him stood up and spoke up during the time that he represented us and that includes me, I am guilty as charged.


How many of you ever dropped in on a City Council meeting to witness the outrageous shenanigans being perpetrated by the Good Ole Boy gang? It was obtuse, slanderous and inappropriate beyond all reason, yet only a hand full of residents spoke out against the powers that were turning that wheel. Shame on Atascadero and others who stood by in silence while the perp’s stoned the messengers.


PaulJones

Well said Mark, I too am guilty of voting for Mike and Ellen and then expecting them to “just do it” for us. I didn’t agree with everything they did and it would be rare if I ever agreed with everything that anyone did. I voted for them to clean up City Hall. I always felt that I had done my part, I didn’t consider how dirty it could get. In hindsight, the abuse of our elected officials who ran on a platform for transparency was right there in everyone’s face and should never have been tolerated. Hopefully the FBI will now do what the citizens and Mike couldn’t.


cheseburger

Ever occur to you maybe the citizen’s of A-town were afraid, they are not as ruthless as the good old boy crew, so I would rephrase this, it’s a little to extreme,” Shame on Atascadero and others who stood by in silence while the perp’s stoned the messengers.” There is no shame in no being killed, and it seems more and more likely that this gang the good old boys are capable of anything, hell Gearhart already got away with killing Ramon Gin and the unborn baby in the Cadillac in the head on crash, he hit head on on El Camino Real not Traffic way,(fictitious one car roll over), anybody no about this besides Ramon and the girl who lost her baby to drunk driving Gearhart.


Cindy

chese, I can follow your point about people being afraid. That’s why they needed to rally as a group which is easier said than done at times.

As for Kelly killing someone in a drunk car accident, It’s my understanding that this story/rumor is false. The word is that Kelly never drank or used drugs, not even in high school. Apparently he never killed anyone in a car accident either, that is supposedly just a rumor that bears no factual basis, although he surely has done plenty of wrong that can not be disputed.

Can anyone shed some factual light on this DUI accident and/or the death of a pregnant woman, one way or the other?


OsborneCox

Cheseburger, would you please stop it with the misinformation! I believe you must have have Kelly’s July 3, 1977, accident confused with a separate accident mixed up with another – how else could you get the facts so ass-backwards?

1) There was no unborn baby;

2) Kelly’s crash involved only one vehicle – a green Mercury Capri owned by a classmate (initials L.N.)

3) Accident was on Traffic Way, near the current site of Atascadero Door;

4) Kelly wasn’t drunk.


cheseburger

Ha you believe the fixed story, I’ll believe the eye witness, maybe go talk to Norm Norton. This unfortunate accident happened. Raymond Jen died and the girl in the Cadillac lost her baby, you think some one capable of arson is not capable of having an accident fixed and I don’t mean the dent.


centralcoastcoyote

I have been reading these posts for some time now, either everyone has begun to run out of things to say or are putting personal opinion into what they say. I lost some serious $ like most of you on this blog but refrain from putting my “THOUGHTS” on this site. Think about the how true this story really sounds…..

1. market takes a turn so does gearharts business

2. a man threatens someone at the gearhart residence and then turns his anger onto his own truck?

3. gearhart moves to ohio and is seen living in an industrial building

4.gearhart is seen in atascadero

5.gearhart is seen in las vegas with body guards? and is beat up. even put into the hospital

6.and now we are printing storys directly from the mouth of marion warner?


1,3 and 6 have supporting facts/ proof


I have to say from previous encounters with ms. warner she’s not the sharpest tool in the shed and I just cant take her seriously nor would I invest time and $ into the “FACTS” she says are true.


In the end something will come of this however we need to start filtering the facts from fiction


OsborneCox

CHESEBURGER, Norm Norton passed away about four years back and got the name wrong on the young man who died in the accident. Why don’t we just pretend you never joined this discussion?

I don’t know where you’ve been, but I’ve directed at least two posters on this site to documents (newspaper articles, police reports, hospital records) regarding the accident, and I’m sure they’ll confirm I am 100 percent accurate here.


OsborneCox

“Norm Norton passed away about four years back and YOU got the name wrong on the young man who died in the accident,” I meant to say.


cheseburger

Aledged on belief and information Norm had this accident fixed, he had connections and was related the accident in some way, they were drunk according to my source and the accident was a head on on El Camino Real with a Cadillac, Red Cadillac, what’s your stake in this, can’t you see by the green that it’s all true? And if your still in the dark after the last article, TURN ON A LIGHT,…!


bulwark

Don’t forget Warren Frace. He’s the Community Development Director that ordered the signing of many deficient field inspections, among other things. There have been key community development employees that left the city over the last 5 years knowing what was inevitably coming. At least two of them are still local.


There are field inspection cards in several of Gearhart’s project files where the building inspector signed off on a particular phase of construction and noted next to his initials that he was ordered to sign off by Frace. Last I looked, those records were still in the files. If anyone else wants to see them, you’d better hurry after this article.


Marion’s interview is heresay at the moment but if even half of it proves to be true heads will roll. Get ready for the media blitz from Kevin McCarthy. Even if he did unknowingly take tainted money (and I’d like to think that was the case), his handlers knew better.


standup

Warren is most likely a yes man when it comes to “Party on Wade” dictating what goes on. I used to trust Warren but I am starting to have my serious doubts. If Warren was smart, he should spill the beans now if he is even a little bit guilty. I am starting to wonder what liability the city has in Gearhart not paying us contractors when they aided and abetted his rouge development. Maybe class action time when this starts to show its head.


Cindy

standup, You just took the words right out of my mouth. I always thought Warren was honest too as I also believed the same of his associate, Kerry Margson. Kerry isn’t working at A-Town City Hall any longer. I sure hope Kerry reads this site, I bet she does if she still lives in the area, maybe she will do the right thing if Warren doesn’t.


willie

I use to wander how slimeballs like Gerhart get super rich.


I now wander whick slimeball attorney or law firm is gonna represent him.

Many of the investors are either dead or too old and lacking not only time but funds and resource to make any kind recovery or partial recovery.

For those still able to seek restitution, it’s been a long time coming and almost a hopeless struggle but it is still gona be an uphill struggle.


Of course I understand those he greased and are living well assisted by it are not sympathetic to this from their enormous lying bag of perspective.


PS There is no statue of limitation on fraud until sufficient evidence of discovery!


Good luck all, be careful of a ruthless cornered animal, nothing is beyond him (and his buddies or lawyers)!


willie

Be thankful, that Cal Coast News Investigated


racket

I wonder if there is something we could do to ensure the continuance of this type of excellence in reportage… …


dismayed

I went to school with kelly Gearheart as well since 7th grade. You are right. He is an arrogant snake who deserves everyrhing coming to him and then some. I have lived here for many years. I hope we can finally get him out as well anyone in his pocket. especially public officials. You are all going DOWN…I am totally outraged by all of you connected to kelly Gearheart.


WiseGuy

A man like Gearhart couldn’t have perpetrated all this unless the community he was plundering included many immoral and cynical people in places of power. Gearhart simply exploited a sickness that was already there. Gearhart is a symptom of a disease with roots that go deep and broad in SLO County.