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.
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PDFHeritage Oaks Bank versus the investors
By KAREN VELIE and DANIEL BLACKBURN Heritage Oaks Bank is battling with Estate Financial Inc. and Hurst Financial investors over first place in the quest for financial compensation. Attorneys for the bank are chasing first position in the pursuit for assets of fraud suspects Karen Guth and Josh Yaguda Estate Financial Inc. (EFI), and Hurst Financial, and in some cases, trying to... (Continue Reading)
DUMPSTER CHRONICLES: Web of deceit
(EDITORS‘ NOTE: For months, a concerned investor sifted through Hurst Financial Inc.’s trash, tirelessly collecting eight bags of “Post-it” notes, hand-written letters, and typed documents from the imploding lending company. The investor then shared that trash with us. Part I of the Dumpster Chronicles reveals how Hurst Financial Inc. principals knowingly defrauded investors. Part II explains how district attorney’s officials... (Continue Reading)
Lenders accused of fraud agree to surrender licenses
By KAREN VELIE and DANIEL BLACKBURN Hurst Financial Inc. president James Hurst Miller Jr. and his daughter Courtney Lee Brard admitted to state regulators their complicity in fraud. The pair agreed to forfeit their real estate licenses rather than dispute a large number of fraud allegations filed against them by the California Department of Real Estate (DRE), according to an October 14... (Continue Reading)
DUMPSTER CHRONICLES: Law, disorder, and the DA
SECOND IN A SERIES By KAREN VELIE and DANIEL BLACKBURN A disengaged and reticent district attorney failed to investigate numerous complaints targeting fraudulent hard money lenders and big-name developers during the past 18 months, even as new and unsuspecting investors were being fleeced of their life savings. Personal, political, and family connections may have had significant influence on decisions made by key members... (Continue Reading)
BULLETIN: Gearhart crashing, burning
By THE EDITORS Attorneys for North County developer Kelly Gearhart, the darling of Atascadero city officials, hard-money lenders, and local banks, encountered Judge Charles S. Crandall Tuesday morning. The San Luis Obispo County Superior Court jurist took position and control from Gearhart on his Morro Road LLC and appointed a limited receiver. The LLC owns Tastee Freeze in Atascadero and numerous... (Continue Reading)
Where did Hurst’s Beacon Road money go?
By DANIEL BLACKBURN and KAREN VELIE Investors wooed by Atascadero hard money lender Hurst Financial’s owner Jay Miller raised $414,000 of an apparent $485,000 loan to help fund a new North County commercial park, but learned within four months that only $198 remained in the investment account. Construction on the Kelly Gearhart/Miller project was never started. And even as the fund money... (Continue Reading)
Hurst, Gearhart drawing battle lines
By DANIEL BLACKBURN and KAREN VELIE Two prominent North County real estate confederates appear headed for a showdown after one announced today he “will be filing notices of default” on many delinquent loans, including at least several with developer Kelly Gearhart. Hard money lender Jay Hurst Miller, president of Hurst Financial of Atascadero, wrote in an e-mail to investors, a copy of... (Continue Reading)
Fraud lawsuit filed against Gearhart, Hurst
By KAREN VELIE and DANIEL BLACKBURN Local investors are alleging they were bilked out of millions by Hurst Financial and developer Kelly Gearhart. David Rios and Murray Powell filed an 11-count lawsuit Tuesday in San Luis Obispo County Superior Court. Allegations include fraud and civil conspiracy by Hurst Financial president Jay Hurst Miller, Hurst loan officer Courtney Brard, and Gearhart, and claims... (Continue Reading)
CORRECTION
In an April 29 story about Paso Robles’ Vista del Hombre project, UncoveredSLO.com reported incorrectly that “Hurst has not foreclosed on Vista del Hombre, despite its contractual promise to protect investors if developers are delinquent on their agreements for at the most 180 days. That delinquency now approaches eight months.” In fact, Gearhart has not paid interest on the project... (Continue Reading)
