Hurst Financial of Atascadero (defunct)
Atascadero based Hurst Financial Inc. James Hurst Miller
A 2008 CalCoastNews’ investigation revealed James Hurst Miller and former north county developer Kelly Gearhart allegedly swindled some 1,200 investors out of more than $100 million in a lending scheme involving hard money.
Hard money lenders specialize in short term, high interest construction loans that are often used as bridges to help a developer finish a project. Loans are based on the value of the underlying asset rather then the borrower’s credit rating. These kinds of loans are primarily funded through private investors.
Miller, 63, the former president of the Atascadero-based Hurst Financial Inc. (HFI), was charged in a four-count criminal information filed in United States District Court. It charges Miller with mail fraud, wire fraud, money laundering, making a false statement to a bank and aiding and abetting Gearhart in making other false statements in seeking funding.
The "Continue Reading" links open in a new window or tab.
Print 
PDFFormer Atascadero lender sentenced to 7 years
By KAREN VELIE Former Hurst Financial principal James Miller was sentenced to seven years in federal prison on Monday for misappropriating millions of dollars that victims invested in Central Coast real estate projects and for helping developer Kelly Gearhart defraud a bank. Miller, 67, pled guilty in 2011 to charges of mail fraud, wire fraud, […]... (Continue Reading)
Chuck Liddell lawsuit goes to jury
Following a five-week trial, a San Luis Obispo County jury is now deliberating as to whether Cuesta Title Company aided and abetted former North County developer Kelly Gearhart in defrauding mixed martial arts champion Chuck Liddell. [Tribune] Liddell claims he lost $2 million after his signature was forged on an escrow document. Liddell testified that […]... (Continue Reading)
James Miller pleads guilty, daughter gets immunity
By KAREN VELIE Former Hurst Financial President James Miller agreed to plead guilty to a four-count criminal complaint under an agreement that his daughter Courtney Brard will not be prosecuted. Miller, 63, pled guilty in 2011 to charges of mail fraud, wire fraud, money laundering, and making a false statement to a bank. Miller and […]... (Continue Reading)
Kelly Gearhart and James Miller receive another reprieve
By KAREN VELIE For the fifth time, former North County developer Kelly Gearhart’s fraud trial and Hurst Financial president James Miller’s sentencing hearing have been delayed. A federal judge continued Gearhart’s trial from Feb. 18 to June 17. Miller’s hearing has been continued from March 17 to Sept. 8. “Failure to grant the requested continuance […]... (Continue Reading)
James Hurst Miller’s sentencing delayed, again
An Atascadero lender facing up to 80 years in federal prison will have a few more months of freedom after a judge delayed his sentencing for a second time. James Hurst Miller, the former president of Hurst Financial Inc., agreed to plead guilty to charges of swindling as many as 1,200 investors out of more […]... (Continue Reading)
Jay Miller on borrowed time
Federal prosecutors prompted a federal grand jury to look into the alleged criminal acts of Hurst financial principal Jay Miller. [Tribune] Miller is one of the subjects of a two-year racketeering, money laundering and wire fraud investigation that includes former North County developer Kelly Gearhart. The investigation is complicated, not because of the alleged Ponzi […]... (Continue Reading)
HFI’s Jay Miller forced into bankruptcy
By KAREN VELIE Several investors in Hurst Financial Inc’s (HFI) hard money lending schemes thrust HFI President Jay Miller into involuntary Chapter 7 bankruptcy citing Miller’s failure to repay loans he personally guaranteed. Before their meltdown a little more than a year ago, HFI’s key players’ lifestyles were reminiscent of Fitzgerald’s Jay Gatsby: lavish parties, exotic cars, and high rolling excursions in... (Continue Reading)
Fraud lawsuit filed against Heritage Oaks Bank and Stewart Title
By KAREN VELIE Investors have filed a lawsuit alleging Stewart Title and Heritage Oaks Bank (HOB) aided and abetted and/or conspired with Hurst Financial Inc. (HFI) in defrauding hundreds of seniors through illegal investment schemes. The suit filed by more than 300 investors against Stewart Title, HOB, and HFI lists eight complaints including conspiracy, fraud, financial elder abuse, and negligence. Investors are... (Continue Reading)
FBI accuses Miller of racketeering and money laundering
By KAREN VELIE The FBI seized proceeds from Hurst Financial Inc. (HFI) President Jay Miller’s home May 27 because of allegations of racketeering, money laundering, and wire fraud, according to the seizure warrant. “A racket is an illegal business, usually run as part of organized crime. Engaging in racket is called racketeering,” according to Wikipedia.... (Continue Reading)
Tribe’s casino pact with white men suspect
By KAREN VELIE and DANIEL BLACKBURN A secret, decade-long, eight-phase strategy by a group of local investors – including one notorious individual now under investigation for fraud – outlines plans for construction of a Indian gaming casino in San Luis Obispo County and anticipates huge profits for its principals, confidential documents obtained by CalCoastNews reveal. Those documents show that Kelly Gearhart, a... (Continue Reading)
