Ron Hertel files for bankruptcy

June 4, 2013

bankDeveloper Ron Hertel, a partner in the failed R.W. Hertel and Sons, filed for personal bankruptcy in April listing $118.4 million in debt and assets of $591,000.

The bulk of his accumulated debt is from personal guarantees he made on business loans for his failed business R.W. Hertel and Sons. In 2009, a group of three creditors forced the home-building business owned by Hertel and his former partner Robert Fowler into involuntary bankruptcy in an attempt to collect debts of $42,000.

During the corporate bankruptcy, Hertel testified that the partners may have used money from the business to purchase luxury items such as yachts and thoroughbred horses.

Federal authorities seized Hertel and Fowler’s 67 foot Bertram yacht, “The Dram Buoy,” in January 2009 because of concerns the developers would steer the ship from U.S. waters.

U.S. Marshals also seized the partners’ 106-foot “Cajun Princess” to cover debts owed for maritime and unpaid contractor liens of more than $4 million. They were refurbishing the 1988 Broward yacht slated to be valued at approximately $14 million after the ship’s remodel, according to court records.

In 2010, Fowler filed for personal bankruptcy listing $127.6 million in debt.

Fowler said $105.6 million of his accumulated debt is from personal guarantees he made on business loans, according to his bankruptcy filing. He claimed assets of $4.8 million that include his personal residence in Santa Margarita.

Hertel owes his largest creditor, Dan Harkey’s Point Center Financial, $30.2 million. A lawsuit filed by Point Center investors accuses Harkey of fraud, using investments to fund the Harkeys’ lavish lifestyle, and contributions from developers of doomed projects financed by Point Center Financial to pay for Assemblywoman Diane Harkey’s (R-Dana Point) political career.

Hertel’s debts include $2.4 million owed to Paso Robles-based Heritage Oaks Bank, a $2.6 million debt to Mission Community Bank and $18.2 million owed to Ventura-based Affinity Bank.


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12 Comments

  1. pasovino says:

    Truthskr hit the nail on the head: “I’ve lived here since the mid 60′s and watched the developer/contractor/builder, real estate “operators” and “lenders” all along with their complicit movers and shakers on the supes and various city councils/planners destroy our county and it’s gullible citizens. The relentless pro-growth profiteers – look at this sorry outfit COLAB – “

    (6) 6 Total Votes - 6 up - 0 down
  2. pasovino says:

    Same guy who is still on loans and paperwork with Santa Margarita Ranch-Wonder how much he stiffed them for?

    (4) 4 Total Votes - 4 up - 0 down
  3. rogerfreberg says:

    They do seem to go a little crazy in the end.

    I wonder after all that has happened how many folks still believe that their safe and sound, backed by government or God, mom and apple pie investments are still…. safe? For example, did anyone take the time to wonder why money market accounts are reported in share values? (a value of a share is currently reported by most to be $1)

    One cannot protect from every eventuality… but one can try to manage ones risks in life.

    (2) 4 Total Votes - 3 up - 1 down
  4. Cindy says:

    What ever happened to the pride and belief that “A mans word is a mans honor”?

    Sad that too often a mans word has become nothing but shallow discourse followed by a catch me if you can attitude. He with the most toys…….. pfffffffffttt and when are we going to start locking these sycophant, predators up for real? That goes for you self seeking politicians too.

    (42) 50 Total Votes - 46 up - 4 down
    • fat chance says:

      Great statement….there’s no deals on a handshake that’s for sure. It’s a shame.

      (12) 16 Total Votes - 14 up - 2 down
  5. BeenThereDoneThat says:

    Since living on the central coast since ’80 I’ve seen a common link here. In the eighties Block and Bower started to head downhill after they bought a personnel plane and other toys.

    Gearhart headed down after he bought his personnel plane and Rolls.

    Now these guys with boats.

    Lesson? When you are invested with these types and all of a sudden you see the toys getting bought, get your money and GET OUT FAST!!!!

    (55) 59 Total Votes - 57 up - 2 down
    • Robert1 says:

      Gearhart, leased his car and plane, with others money of course.

      (14) 24 Total Votes - 19 up - 5 down
      • BeenThereDoneThat says:

        Lease—Plane yes, car no. He flew to Europe to pick out all the goodies on the car before it was made. Of course on his plane.

        (13) 17 Total Votes - 15 up - 2 down
    • ironyman2000 says:

      If I had enough bucks for a personal plane I would hope I would have the decency to also provide a
      personnel plane to shuttle my personnel to the nearest community college in order to learn how to
      write, spell and how to think.

      (4) 12 Total Votes - 8 up - 4 down
      • BeenThereDoneThat says:

        How long did you work for Kelly??

        (0) 6 Total Votes - 3 up - 3 down
      • justchuck says:

        Ironyman 2000,

        In this day and age, language skills have gone the way of honesty and honor. Nothing personnel (sic).

        (-2) 8 Total Votes - 3 up - 5 down
    • truthskr says:

      Oh Yes Been There!! I’ve lived here since the mid 60’s and watched the developer/contractor/builder, real estate “operators” and “lenders” all along with their complicit movers and shakers on the supes and various city councils/planners destroy our county and it’s gullible citizens. The relentless pro-growth profiteers – look at this sorry outfit COLAB – dupe ellay transplants into thinking that growth is necessary. I live in Passso – you know Passssadena. We’re a disaster. These guys are like furniture dealers-bankrupt today, over in the next county tomorrow.

      (3) 7 Total Votes - 5 up - 2 down

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