Court bars Gearhart tax sale

July 3, 2012

Kelly Gearhart

An Ohio court barred the San Luis Obispo County tax collector from selling former North County developer Kelly Gearhart’s properties at auction during a hearing on Monday.

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 her ruling, Judge Marilyn Shea Stonum noted that San Luis Obispo County Tax Collector Frank Freitas had previously been given a notice by the Ohio court and did not respond in time to challenge the stay.

In early June, the SLO County tax collector’s office send out an renouncement that several of the Gearharts’ tax-defaulted properties were to be sold at auction on July 1. A few days later, an Ohio court trustee filed a motion to stop the proposed sales.

The Gearharts moved to Wadsworth, Ohio in 2008 after being accused of helping to defraud more than 1,200 investors of more than $100 million in an alleged Ponzi scheme. An FBI investigation into the alleged fraud has been ongoing.

In February 2009, the Gearharts filed personal bankruptcy in Ohio claiming $6.5 million in estimated assets and $45.1 million in estimated debts. The bankruptcy court has a tentative settlement in place and plans to use proceeds from the property sales to pay taxes as well as the Gearharts’ creditors.


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9 Comments

  1. buckeyefan says:

    It wasn’t secret when he moved back here what he did out there. I just can’t believe how stupid he was to come back to hide in his hometown. Word gets around like a wildfire in this county and town. Read more about his indictment today in the akron beacon journal. http://www.ohio.com He could spend as much as 300 years in prison

    (1) 1 Total Votes - 1 up - 0 down
    • buckeyefan says:

      Article in ohio.com Friday July 6, 2012
      Wadsworth resident indicted on fraud charges

      Former California developer Kelly Gearhart, now a resident of Wadsworth, was indicted Thursday on federal fraud and money-laundering charges, the FBI announced. Gearhart, 50, could face a maximum… of dollars between 2004 and 2008. Gearhart was named in a 16-count indictment returned by a federal

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

    Will someone please ask Kelly to send these guys some new headshots?
    Thanks…

    (3) 5 Total Votes - 4 up - 1 down
  3. willieslo says:

    How can the SOB afford to fight the tax sale if he tried to file bankrupsy?
    And why is he fighting the tax sale, it not legitimately his wealth (nor his spouse)!

    If this worthless Frank Freitas is able to to get a tax sale:
    Tax collectors get their money first
    Creditors get their money second
    (Don’t forget the attorney’s cut)
    Maybe nothing left for the victims

    This is how it typically ends
    We are simply fortunate to be able to see how it typically goes
    End of story for this high class pimp

    (12) 16 Total Votes - 14 up - 2 down
  4. isoslo says:

    Does this mean we are going to war with Ohio?

    (14) 16 Total Votes - 15 up - 1 down
  5. Mr. Holly says:

    “and did not respond in time to challenge the stay.” It sounds just like the rest of the story, nobody is responding and this whole caper will probably just disappear as soon as all of the attorney’s have performed their parasite duties and have cleaned the coffers out.
    Another beautiful day in San Luis Obispo-the nicest place on earth. Kelly has to be luvin it.

    (21) 25 Total Votes - 23 up - 2 down
  6. cheseburger says:

    I have a good friend that said he knew a guy who helped Gearhart stuff card board boxes full of cash, (ours), and fly them to the bahamas, where if truth be told he could easily deposit this cash in a friends name or like he did everything else just make one up, the FBI has been notified, but it just seems like this thief’s hand should of been cut off and dried by now!
    My wife has relative in the philipines who can shink his head!

    Seriously she said quote,
    “the people would of chopped him up already” the biggest pieces go to the biggest investors, end of story!

    (22) 32 Total Votes - 27 up - 5 down
  7. fhill123 says:

    Bankrupt? I will bet he is living like a prince while being a parasite.

    (25) 31 Total Votes - 28 up - 3 down

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