SLO County battling trustees over Gearhart properties

June 29, 2012

Kelly Gearhart

Following an announcement in early June by the San Luis Obispo County tax collector’s office that several of former North County developer Kelly Gearhart’s tax-defaulted properties were to be sold at auction on July 1, an Ohio court trustee filed a motion to stop the proposed sales.

As of June 6, Gearhart, his wife Tamara Gearhart, and several of their subsidiaries owed SLO County $537,987  in property taxes, fees and penalties.

In the wake of an FBI investigation into fraud and organized crime, the Gearharts moved to Wadsworth, Ohio in 2008. The couple was accused of helping to defraud more than 1,200 investors of more than $100 million in an alleged Ponzi scheme.

In February 2009, the Gearharts filed personal bankruptcy in Ohio claiming $6.5 million in estimated assets and $45.1 million in estimated debts.

Earlier this month, an attorney for bankruptcy trustee Harold Corzin sent a letter to San Luis Obispo County Tax Collector Frank Freitas asking him to stop the proposed auction of Gearhart’s properties because they are in the advanced stages of litigation with a tentative settlement already in place.

“To the extent that you are proposing to sell parcels titled in the name of Kelly V. Gearhart and not yet abandoned by the bankruptcy trustee, this conduct is in violation of the automatic stay of the bankruptcy court,” said Corzin’s attorney Kenneth L. Gibson in the letter.

Corzin explained that the bankruptcy court  proceeds would be used to pay property taxes as well as Gearhart’s creditors. If sold by the tax collector, Gearhart’s other creditors would be left without compensation, according to Corzin’s motion to stop the sales.



  1. Old Salt says:

    Kelly Gearhart as a young “fair haired” Prison Guard ***Correctional Officer***was a most favorite son from the Warden, Captain, Lieutenant’s, and Sergeant’s, all the way down to the “in-the-car” Officers.
    Way back then they were in his pocket, and he was in their good graces getting whatever jobs and or days off he needed that allowed him to do his contracting and in-house favors.
    He made good money both as a Corrections Officer and as a young contractor doing favors for those in positions of POWER. The influence he yielded has always been far reaching.

    (2) 2 Total Votes - 2 up - 0 down
    • cheseburger says:

      Old salt thanks but everybody this side of the Mississippi knows this, I have been around not old, just dam salty!

      (0) 0 Total Votes - 0 up - 0 down
  2. Crusader says:

    I am truly amazed that one or more of Gearhart’s victims have not traveled to Ohio to administer a beating that would require him to eat through a straw for the rest of his life…

    (17) 19 Total Votes - 18 up - 1 down
    • cheseburger says:

      I handcuff my self to a heavy desk every mourning and my wife secures a ball and chain to my ankle every night, in reality he is very lucky to be still breathing, tales of 50,000 for his head on a post have surfaced, offered by an investor who has passed away, rip,,,,Gary L.

      (11) 13 Total Votes - 12 up - 1 down
  3. Nancimeek says:

    If Kelly Gearhart and Grigger Jones were “thick as thieves” as his secretary and stepmother have personally told me, and Grigger Jones accepted 10 properties signed over to him by Jay Hurst Miller before Miller was indicted, and based on what the facts bear out in our case (Go to this link for actual forged documents)

    I would say the evidence speaks for itself. What is taking so long to indict Mr. Gearhart and Mr. Jones?

    (18) 24 Total Votes - 21 up - 3 down
  4. Jorge Estrada says:

    While checking my dictionary I looked up Kelly Gearhart, 1. Donkey Hole 2. Man of the year 3. Law abiding citizen who master’d bait and switch.

    (18) 20 Total Votes - 19 up - 1 down
  5. standup says:

    Kelly is a punk, plain and simple. Some day, we will meet again and I can’t wait. You lied to us and everyone else. See you soon.

    (25) 27 Total Votes - 26 up - 1 down
    • cheseburger says:

      Well me and you agree on this one, he is worse than a punk, he is the slime of the earth even ripped off his own mother, who fied a complaint with the attorney general as I have and you should too,or well like it would do any freaking good! Chese say’s stand up and clock the bastard and all the people protecting him!
      I hope he see’s the inside of an ohio STATE prison, nothing nice, a death in every corner of every room, and that state don’t care! Bet your glad your fat ass ran there?

      (17) 19 Total Votes - 18 up - 1 down
  6. willieslo says:

    Put this boy in prison first!
    Disallow any expected special privileges
    Confiscate all ill-gotten gains from his spouse
    And when he is released from prison, publicize a warning to everyone not to even lend this male hoar a dime

    (8) 10 Total Votes - 9 up - 1 down

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