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Gearhart, Hurst investors dug their own hole, says lawyer

August 9, 2013
Kelly Gearhart

Kelly Gearhart

An attorney for Cuesta Title suggested to jurors Thursday in a San Luis Obispo courtroom that investors’ greed was partly responsible for alleged fraud committed by former lender Jay Hurst Miller, developer Kelly Gearhart, and title company officials.

In a session being live-streamed by Courtroom View Network, attorney Mack Staton acknowledged that Miller and Gearhart “are the bad guys,” but noted that investors were receiving 12 to 13 percent return on their investments. Consequently, they did not pay adequate attention to the way their money was being spent.

Staton also suggested that Miller’s prior relationship with many of the investors caused them to be “lulled” into a sense of complacency.

The civil trial initiated by a group of investors started Monday in Superior Court with Judge Charles Crandall presiding. It is the first of several filed civil lawsuits to go to trial.

Stewart Title of California and Stewart Title Guarantee are also defendants in the trial.

Questionable financial transactions by Gearhart, Miller, Cuesta Title and its associates were first reported by CalCoastNews in 2008, beginning a years-long series of exclusive articles detailing the complicit activities of the group.

Most of investors’ money is unaccounted for.

Both Miller and Gearhart are facing criminal charges in addition to their civil woes. Gearhart was indicted by a Los Angeles grand jury, and both men now await further court action.

Cuesta Title official Melanie Schneider is a key figure in the current case, facing allegations that she knew of, and ignored, the fraudulent activities of Miller and Gearhart.

The scheme involved Gearhart’s utilizing false information to secure multi-million-dollar high-interest “bridge” loans from Miller, purportedly for development deals. Gearhart would then use the money to repay earlier investors, and to support an opulent lifestyle.

Gearhart is a one-time “Man of the Year” in his hometown Atascadero, where his largesse made him a favorite of city officials.


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Staton is a liar, i wonder if he has the cojones to sue me and the others for slander or defamation. What a piece of crap he is. ‘Been There’ has pointed out the issues clearly, it is not the failing economy we are complaining about, it is the fraud! LIAR, Staton, you’re a liar. Get it, you’re a damn liar.


The investors have been failed by the crooks, title companies, the state (overly lax regulation), the courts (endless, time consuming and costly delays and idiotic meanderings) and now this two bit bum in a three piece suit calling us responsible for the crimes.


I have sent a copy r miller’s web site from ’07 to CCN, I hope they will publish it for all to see. Miller claims ‘no hassle, worry free’ investing with all details handled by competent staff. What a cruel joke/pack of lies.


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Staton is an idiot! When your trusted friend tells you he has a way to help your savings grow, who wouldn’t go for it and believe him? I will never forget being told from a friend of mine that he had overheard Jay’s daughter Courtney telling him that what they were doing was illeagle! Did it stop him? Of course not! Jay gave our money away like candy to the builders. No accountabilty for what any of them were doing with our money, just here, the loan is funded, take the entire amount and go play in Vegas if you want to! And then, ooops! The loan is empy, and guess what? There’s not a stick overturned on the property that SHOULD have a house on it! Really? Ok, so hurry, fund another project to help make payments on the loans that are now empty!

In saying all of this, I can honestly say that I believe Jay didn’t start out being the crook that he now is. It wasn’t until Kelly Gearheart came on the scene and took over, that Jay succumbed to Kelly’s wicked ways. Then he became just like him, a cheating backstabbing lair that would throw his own mother under the bus! And now they’ve moved his trial date again? Why? If I was any of his ‘buddys’ out there that were part of the ‘Big Dogs’? Ya, I’d be worried for sure!


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Talking about Melanie altering deeds? Seems I recall an issue over Attorney Robert Grigger Jones’; secretary Colleen also notarizing a document the same document which had already been notarized I would think the attorneys have already looked into that at this stage of the trial process.


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This document notarized twice by Jones’ secretary had something to do with the Cuesta title and Hurst Financial Not sure about the details.


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Mr. Staton,

Your ability to rationalize your clients bad deeds makes you believe that the whole world is as amoral as you and they are. Guess what….it isn’t!


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http://www.mullenlaw.com/contact/attorneys


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Gearhart sold the same properties to different people over and over. Miller loaned money against these properties over and over without clear title. Hard to believe Cuesta folks weren’t aware of this.


One question: how do you live an “opulent lifestyle” in Atascadero??


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They were aware of it. Melanie Schneider altered the deeds so all of this could happen. Then when it came to an end she left her husband and ran off with Gearhart’s brother. Does it get any simpler than that to figure out?


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Here is the thing that all the apologists for Kelly, Miller and the title companies FORGET!! Yes an investor takes a risk and yes if this was a case of a bad economy turning and the investor got stuck holding the bag, then the apologists argument would have weight. BUT here is where the DISTORTION is. Kelly and Jay stuck more investors on properties (like the one off Morro by Circle K and the Golf Course in Paso) than was allowed or known by the investors. Hey apologists this is FRAUD MORONS!!!! And the title companies………..what does a title company do?? Research title. Are you telling me they didn’t know these properties where over encumbered?? Either they are totally incompetent or complete LIARS!!! On the loan the Hertiage gave on the Golf Course I would think that it would have required a title search and at that point they were already encumbered with to many people.


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it wouldn’t matter to the title company whether or not a property is over-encumbered. they just report what they find. now, as for the bankers, they are the guys putting depositor’s funds at risk. did they lend on history or a promise?


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What would Cuesta Title say if you found out you didn’t hold the first on your house? You didn’t watch your money carefully enough? That is specifically the function of a title company. Sure Gearhart/Hurst we’re the guilty ones, but they had a willing and equally guilty accomplice, Cuesta Title.


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until proven otherwise they all stink


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A lawyer lying in a court room? NOOOOOOOOOOOOOOO. Sounds like Robert Grigger Jones during our evidentiary hearing in Hawaii. next you will be hearing “I can’t recall”. But isn’t that your signature? Yes it looks like it but I don’t recall signing this document. A Spin is a spin is a spin……….I think the jurors will see through Attorney Stanton’s spin. I wouldn’t worry.


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Mr. Stanton you prove why most people like myself HATE lawyers. You sir are a piece of S**T!! Besides your B.S. that it was the investors fault, how about people like me? There are many of us that weren’t even investors but had done work for him. I got stuck to the tune of thousands and thousands of dollars. I gave the man a product and he gave me NOTHING. Mr. Stanton I wish I could meet you face to face, so I could tell you in person to GO F**K YOURSELF PR*CK!!!!!!!!


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well, if you have a strong opinion………. not LOL but the atty is getting paid for product, guess he is smart enough to get it up front. i don’t know what that means other than no credit terms


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