Just received a copy. Here is the link. Right-click to download and save.
Couple of notes on first read:
1) It is dated 12/19/08, after the initial 12/15/08 statement.
2) The retainer was $275,000 or $250,000. It's unclear, as one clause says Sussman Shank has received $275,000 before the filing, and another states "...retainer in the sum of $250,000."
3) Of the 20 largest unsecured debts, all from unfinished exchanges, only three are from Oregon: the Tennant's in Portland, $1.035.266.66; Home Valley Bank in Grants Pass, $547,936.88; and the Miller's in Bend, $756,598.82. The other 17 are scattered around the west.
4) A rough tally of the total owed to the top 20 creditors is $21,560,550. The largest creditor is the Alessandro Family Trust, from Rancho Santa Fe, CA, at $2,999,961.
5) The four principals-Neuman, Stevens, Lyon, and Larkin-each own 25% of the company.
The matrix of debtors is not included, so there is a lot more not shown. I'll try to get it from the court.
After I run OCR on the filing I'll update the download with a copy that is searchable.
Many thanks to Ryan Frank at the Oregonian for forwarding this to me. He has a copy and a post about it on his blog as well: blog.oregonlive.com/frontporch/
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42 comments:
Hey Bruce, nice work on the countless hours you blew looking up all these LLC's they are mostly meaningless.
###
Pay NO attention to those 2,000 LLC's if you bother to do a state business search on ...
Lane Lyons, Brian Stevens, Mark Neuman, and Tim Larkin, ... and don't forget John short, ... Yes pay no attention to the 2,000 LLC's that cost $10/yr to renew, pay not attention to anybody putting $20k/yr into the toilet in Bend, OR.
http://egov.sos.state.or.us/br/pkg_web_name_srch_inq.login
Search often, search today.
An long time Bend-over native told me that old man Chandler ( Bulletin owner years ago ), who ran the Bull for years, was a member of the Bohemian Grove. Google up that place if you want to read about power, conspiracy, good old boys, etc. SCARY!
RE:BP, Summit-1031, what the fuck was VSN??
VSN was a partnership involving someone I know "V" "S"= Stevens "N"=Neuman(about six+ years ago)."V" is a very sharp business person and after a few deals with those guys didn't want to have anything to do with their program.
SP
Carry on you Fuggin rabid conspiracy theorists!
UTAH is not Orygun
Below is all the LLC's your looking for in UTAH, stacy point, vsn, odell, ...
Personal Representative's Deed
00768468
B: 1770 P: 1399
02/13/2006 04:24:00 PM
Related: SA-240 From: WRIGHT PHILLIP MICHAEL PERSONAL REP, THIELKE BERNICE MARIE ESTATE OF, WRIGHT BERNICE ESTATE OF To: STACY POINT INVESTMENTS LLC, JORGENSEN BRAD Quarter: SW S 9 T 2S R 4E
BEG 1646 FT E & 206 FT N OF SW COR SEC 9 T2SR4E SLBM TH S 36... Add to PDF
Warranty Deed
00768459
B: 1770 P: 1349
02/13/2006 04:00:00 PM
Related: SA-241 From: MAIR MARY To: STACY POINT INVESTMENTS LLC, JORGENSEN BRAD Quarter: SW S 9 T 2S R 4E
BEG 1646 FT E & 206 FT N OF SW COR SEC 9 T2SR4E SLBM; TH N 2... Add to PDF
Warranty Deed
00777283
B: 1789 P: 1827
05/10/2006 12:06:00 PM
Related: SA-240, SA-241 From: VSN PROPERTIES LLC, ODELL PROPERTIES LLC, JORGENSEN BRAD To: LINDY POINT PROPERTIES LLC Quarter: SW S 9 T 2S R 4E
PARCEL ONE: IN SEC 9 T2SR4E SLB&M: BEGAT A PT 1646 FT E AND ...
Tying Bend's MT-B to the 1031-Bend Scandal ...
For Utah you need to search for LLC's owned by Ian or John Cummings. John's the son. They own Powdr Corp or whatever it is called now.
December 30, 2008 4:11 PM
Blogger bruce said...
Brad Jorgensen
Brad launched the Utah operation for Summit 1031 Exchange in 2002 as the founding partner and President of the Utah Region. He has been personally and professionally involved in the real estate industry in Utah since 1976.
In addition to 1031 exchange expertise, Brad has developed, owned and managed multiple commercial and residential real estate projects/properties. He gained extensive hands-on Title and Escrow experience having spent 13 years in that field. He also spent over 8 years actively brokering mortgage loans as a licensed Mortgage Loan Officer in the state of Utah.
In addition to a successful career in real estate, Brad has a broad base of consulting experience spanning technical and marketing arenas.
Brad is a Utah State certified Continuing Education instructor for CPAs, Realtors®, Title Insurance, and Mortgage professionals. He regularly provides Continuing Education classes on 1031 exchanges throughout Utah, having instructed over 2,000 professionals and investors throughout his career. An experienced speaker and expert in his field, Brad is frequently invited to speak to real estate investors about a variety of 1031 exchange strategies. As an experienced, successful real estate investor with a number of investment properties in multiple states, he draws from personal experience and easily relates to audience concerns.
An active outdoor sports enthusiast, Brad enjoys skiing, road biking, golf and other sporting activities. He currently resides in Salt Lake City, Utah with his wife of 34 years. He is the father of four children and grandfather of eleven.
Brad works in our Salt Lake City, Utah and Park City, Utah locations and can be reached at bradjorg@summit1031.com or at 800-445-6630.
It looks like the common between Cumming, John, is that stuff is owned by Fidelity, just like a lot of west Bend, and MDU ( Patricia Moss[CACB] - KnifeRiver ) is owned by Fidelity. Thus it must have been a Fidelity investment in the first place to build condo's up on MT-B, which makes perfect sense, cuz Moss would have been the bank.
It would also have been the ULTIMATE knife-river project. IMHO the JR was candy to give the father in lieu of the BIG PRIZE.
Judgement
00841339
B: 1923 P: 0161...
04/03/2008 05:24:08 PM
Related: PCA-122, PCA-S-98-SEC-11, From: GILLMOR NADINE, BLUE LEDGE CORPORATION To: UNITED PARK CITY MINES, BLUE LEDGE CORPORATION , MEGUR SUSAN A, MEGUR STEVE, CUMMINGS JOHN J... Quarter: NW S 11 T 2s R 4e, , ,
THE SURFACE ESTATE OF THOSE POR OF WOODROW NO 6, CLEGG NO 2,..., , , Add to PDF
Release of Lis Pendens
00454174
B: 964 P: 145
05/13/1996 03:36:00 PM
Related: From: GILLMOR NADINE To: UNITED PARK CITY MINES, BLUE LEDGE CORP, MERGUR SUSAN A, MERGUR STEVE, CUMMINGS JOHN J... Subd: PROSPECTOR PARK PHASE 1 SUBD S 10 T 2S R 4E, Subd: PROSPECTOR PARK PHASE 2 SUBD , Subd: PROSPECTOR PARK PHASE 3 SUBD , Subd: CHATHAM CROSSING SUBD , Subd: HIDDEN MEADOW PHASE 1 SUBDIVISION ...
ALL OF SEC 10 T2SR4E, , , , ... Add to PDF
Release of Lis Pendens
00450750
B: 953 P: 4
03/25/1996 01:43:00 PM
Related: 00414495 From: GILMORE NADINE To: UNITED PARK CITY MINES, BLUE LEDGE CORP, MEGUR SUSAN A, MEGUR STEVE, CUMMINGS JOHN J... Subd: MORNING STAR ESTATES SUBD Lot: 1
Add to PDF
Release of Lis Pendens
00450749
B: 953 P: 2
03/25/1996 01:43:00 PM
Related: 00414496 From: GILMORE NADINE To: UNITED PARK CITY MINES, BLUE LEDGE CORP, MEGUR SUSAN A, MEGUR STEVE, CUMMINGS JOHN J... Subd: HIDDEN MEADOW PHASE 1 SUBDIVISION S 10 T 2S R 4E
THE NE1/4 OF SEC 10, T2S R4E Add to PDF
Quit Claim Deed
00737594
B: 1703 P: 763
05/27/2005 12:07:00 PM
Related: BHVS-T70 From: CUMMINGS JOHN B To: CUMMINGS ALICIA A Subd: BEAR HOLLOW VILLAGE SUB & AMENDED Lot: T070
Add to PDF
Warranty Deed
00401855
B: 798 P: 117
04/07/1994 01:34:00 PM
Related: MSTE-2 From: BLUE LEDGE CORPORATION To: CUMMINGS JOHN J (JT), CUMMINGS DONNA S (JT) Subd: MORNING STAR ESTATES SUBD Lot: 2
Add to PDF
Warranty Deed
00710653
B: 1646 P: 75
09/14/2004 02:56:00 PM
Related: BHVS-T70 From: BEAR HOLLOW RESTORATION LLC To: CUMMINGS ALICIA A (JT), CUMMINGS JOHN B (JT) Subd: BEAR HOLLOW VILLAGE SUB & AMENDED Lot: T070
Add to PDF
Warranty Deed
00784186
B: 1804 P: 980
07/18/2006 04:33:00 PM
Related: PROMR-2-39 From: PIVOTAL PROMONTORY DEVELOPMENT LLC To: CUMMINGS JOHN L H/W (JT), CUMMINGS KAREN M H/W (JT) Subd: PROMONTORY RIDGE PHASE 2 SUBDIVISION Lot: 39
Add to PDF
Power of Attorney
00710654
B: 1646 P: 76
09/14/2004 02:57:00 PM
Related: BHVS-T70 From: CUMMINGS JOHN B To: CUMMINGS ALICIA A Subd: BEAR HOLLOW VILLAGE SUB & AMENDED Lot: T070
Add to PDF
Substitution of Trustee and Deed of Reconveyence
00717668
B: 1661 P: 1477
11/22/2004 02:07:00 PM
Related: 00710655 BHVS-T70 From: FIDELITY NATIONAL TITLE INSURANCE CO To: CUMMINGS ALICIA A, CUMMINGS JOHN B Subd: BEAR HOLLOW VILLAGE SUB & AMENDED Lot: 170
Add to PDF
Trust Deed
00710655
B: 1646 P: 78
09/14/2004 02:57:00 PM
Related: BHVS-T70 From: CUMMINGS ALICIA A, CUMMINGS JOHN B To: AMERICAS WHOLESALE LENDER Subd: BEAR HOLLOW VILLAGE SUB & AMENDED Lot: T070
Add to PDF
Trust Deed
00784187
B: 1804 P: 981
07/18/2006 04:33:00 PM
Related: PROMR-2-39 From: CUMMINGS JOHN L, CUMMINGS KAREN M To: ZIONS FIRST NATIONAL BANK Subd: PROMONTORY RIDGE PHASE 2 SUBDIVISION Lot: 39
Add to PDF
Trust Deed
00861585
B: 1961 P: 0265...
12/24/2008 10:52:33 AM
Related: PROMR-2-39
Congrad's Bruce, if you google "Bend Oregon 1031" this site is now #1.
A note to the above comments on VSN Properties LLC of Bend Or Speaks up.
It is signed V
That is not the "V" from VSN as the "V" in VSN does not use the "F" word. I also know who "V" is and yes he decided that he didn't want to continue with the boys want to have anything to do with their program.
I don't know the everything involved with this situation but I do know that after reading everything posted all of you sound rediculous!!! Any professional would not curse over and over again and many of you don't know how to spell. I'm sure if you ever got to know the company or the men involved you would realize that they care for every individual they worked with and for the community!!! They have helped many people in their life!! What they did may have not been smart or well thought out in the end!! Many of you just sound as stupid and dumb as you say Summit is!!!
...rediculous!!![sic] Any professional would not curse over and over again and many of you don't know how to spell...
###
Let me share something from Darlene in Austin, TX, who is very familiar with Summit:
"Bruce,
Thank you so much for all the information. They took me for 250,000.00.
I'll pass this information along to everyone here in Austin. I'm doing all I can to try and find the remaining 37 people with open exchanges here in Texas.
Thanks again for all your help,
Darlene"
How many people lost hundreds of thousands of dollar, some over a million, often money they planned to use for retirement, because of the greed of the principals of Summit 1031?
At a minimum, dozens. Thirty-eight in Texas alone.
Taking clients money, passing it through to another company you control, and then loaning it back to yourself to invest in real estate may not be illegal, as long as you have cash to fulfill your obligations when your clients need your money, but it is highly unethical.
And Summit knew trouble was on the horizon. In their last newsletter, dated October, 2008, they stated:
"CDARS, Summit and Your Money!
Today, many exchangers have a heightened degree of concern about the safety of their exchange funds resulting from recent bank failures. In addition to bonding and professional liability insurance, Summit 1031 Exchange uses a variety of measures to protect exchange funds. They include utilization of multiple depository institutions, insistence on access to the highest level executives at those institutions, and continual monitoring of the key financial ratios of the institutions.
Perhaps most significantly, Summit seeks to protect exchange funds through the use of the Certificate of Deposit Account Registry Service (CDARS). CDARS provides Summit with the ability to obtain FDIC insurance on ALL deposits made through this system (not just up to $250,000). However, because Certificates of Deposit are illiquid, all funds can not be placed in the CDARS program. So, Summit seeks to maximize the funds invested in CDARS while maintaining
adequate liquidity to meet the day-to-day cash flow requirements of exchangers."
Note that even though they were loaning client funds to Inland Capital, and then back to themselves, and that the two main principals both signed $5,000,000 trust deeds due to Inland Capital (available at the Deschutes County Recorders office online) at the end of September, this statement is rather disingenuous.
Wow I actually spelt one word wrong I think my odds are better than the rest of the idiots posting on this blog!!! I lost money in this situation as well....that's why it's an investment!!! Investments are risky!! I understand an investment is a commitment; but pull your head out of you rectum and realize nobody meant harm by an "investment." THE ECONOMY SUCKS RIGHT NOW!!!!! They meant well for what they did for people and now they have disappointed many!!! I don't care about your proof, people have lost a ton due to how this country is ran!! Sorry about your bad luck!!!
Re: Wow I actually spelt one word wrong...
###
You misspelled a word while ranting about the spelling of others. That makes you look stupid.
Re: I lost money in this situation as well....that's why it's an investment!!! Investments are risky!!
###
A 1031 is a tax deferral transaction, not an investment. The real estate you purchase through the 1031 is the investment.
Summit had the fiduciary duty to enable you to close on your purchase by supplying the necessary funds when needed.
An investment is when you are not guaranteed your money back when needed. A 1031 exchange is supposed to guarantee you your funds to close as necessary. And Summit was supposedly the master at all types of 1031 exchanges, both forward and reverse.
Re: Sorry about your bad luck!!!
###
I'm very conservative financially. I am better off then ever right now, as cash talks.
The Summit principals took client money and washed it through Inland Capital to loan it back to themselves. It's not my "proof", it's what they admitted doing on their own website. And when the real estate market blew up, they couldn't sell the properties fast enough to supply the necessary funds to enable their clients to close on their 1031 purchases.
That is called "conversion of funds" and is simply illegal.
Guess things are looking up!!
This is my first post here and also having lost significantly in the mess, I agree that it is the economy. If you're getting a return on your money that is being held in a 1031 exchange, which Summit paid, you also had risk. Just like with your bank if you're over this year's $250K FDIC limit which most exchangers were. Summit was actually a lot more conservative than how your own bank uses your money, but as we've seen the best intentions don't always work. 1031's drying up is much like a run on a bank and few banks could survive that on accounts exceeding the FDIC limit. I know these guys. They have helped this community and so many people personally so much. Their hearts were not to hurt but to help others. But like most investments and businesses right now, it didn't work out as expected. Sign me as a former multimillionaire now on food stamps that would do business with them again in a heart beat.
Bummer.
You do know they floated themselves loans, right?
What is the matter with you? Do you not want to admit to yourself that you were friends with people that are essentially criminals? When you put your money with an exchange company, it is not an investment. This is not supposed to be a risky business. They were paid a fee for doing the exchange. They were not supposed to try and make some money off of other people's money. I understand that this industry is not regulated, but there comes a time when you are supposed to understand the difference between right and wrong. Legal or not, there is a moral obligation to your clients. Your don't risk there money for your personal gain. Somehow, these guys forgot about that. Neuman and Stevens each took $5 million from Inland Capital. Look it up on DIAL. What in the world was that for?
In regards to VSN LLC. VSN and Summit are the same. VSN, llc was used to purchase investment property. As for the "V" in VSN, he left the llc within a few months of starting the business when he realized what these guys wanted to do. He had the moral integrity to know that you can't just use other people's money to further yourself. This was over 7 years ago. They just decided to keep the name, even though "V" wasn't there anymore.
So, try to comprehend the fact that your friends did something wrong. And if you want to give these guys your money again, it makes sense that you are a "former" multi millionaire.
What do you think is going to happen now? It appears that Kevin Padrick (Obsidian Finance) have done a great sales (snow) job to the creditors and now he is the Trustee. I believe he gets 16% to liquidate all of the assets and 5 years to do it. I heard the legal fees have already surpassed 1.4 million now and if they don't quit sueing and actually start selling some things the creditors will never see any money! There are creditors sueing trying to get ahead of other creditors. Stevens and Neuman just want to get the creditors paid but Padrick won't allow it to happen. He stands to make too much money on all of their assets. I know that there has been several offers made to settle on some of the LLCs and he won't take them. Some have been appraised by licensed indpendent appraisors. Now I suppose all you people are going to say that the appraisors are crooks too? It seems Kevin has a new phrase he learned called "PONZI SCHEME" and thinks by using it at court it may gain him some more leverage. I think if someone walked into court with 15 million to pay the creditors, Kevin Padrick would fight it because he wouldn't get his 16%. Google him and see he is the one living the lavish lifestyle and at whose expense? It is just an absolute shame that this has spiraled so far out of control and the only ones profiting from it is the attorneys and Kevin Pardrick (obsidian Finance).
So if they think they were not criminal in their actions, then why all of the LLC's? Why not pull the money out and put it into personal accounts? If they claim they have done nothing wrong!
I do also believe they will all be cozy in prison together where they should spend at least ten years and while they are there have all of their personal assets stripped from them. Every single asset they own should be reverted to the clients they STOLE from.
I agree they should have their licenses taken for life and spend their lives as felons as this is what they are. No reason to argue about this as there were no ethics or honor among these thieves who are all whining about how they have overpiad their attorneys as this rumor is running like wildfire in Bend. Neuman and Stevens are both professional whiners and should be the first two to be cell mates with Bubba. Explain how they could afford to pay for their attorneys if they are in fact now broke? what about their lavish lifestyles, vacations and massive spending since they filed for bankruptcy protection?
Like the family who lost all of their money and not able to buy their cattle farm. None of these criminals can face their victims and truly and truthfully state they did not know what they were doing was wrong, immoral, unethical and grossly negligent.
I vote to send them to prison for at least a decade as that is a nice place for common criminals. Goes to show how elitist ego maniacs think when they can walk around and say " We did nothing wrong" they are victims themselves as their scam did not go as planned. I am sure there are plenty of bank robbers in prison who will relate to their stories who are also all innocent.
Some of you need more to do and before you start running your mouths need to figure out what the hell you are talking about first before you throw out baseless arguments. First of all they weren’t all CPA's, if you don't know that then you don't know the first thing about these guys. Second of all, how exactly did they "steal" or are you just regurgitating phrases you've heard people, much smarter than yourself use? These men are some the most honest, sincere, ethical men I have ever met and they made a bad business investment, that's it. The money is all sitting in these completely devalued real estate holdings that they don't have any control over anymore so what do you want them to do? And what lavish lifestyle and vacations and massive spending sprees are you talking about? name one. You're rambling here is almost laughable. It's obvious you don't have a clue what you're talking about. There was no ego and no creed in any of these four men and if you think that, then you really don't know them. These men's lives have completely crumbled around them and they have been left with nothing. And who told you that they all still are able to pay attorney's? Another fact that you have wrong. You obviously have something personal against these guys and are using their misfortune to make yourself feel better about what I can only guess is a sad, miserable and pathetic life. Try writing about something you have the first clue about. It's better to say nothing and be thought a fool than to open your mouth and remove all doubt.
Hey, I also know "V" and I can tell you as someone who knows all 3 VSN that I wouldn't..ever do business with V but would at the drop of the hat do business with Steven and Neuman again. These are without a doubt some of the finest human beings I have ever met and just because you have personal issues with them doesn't make them criminals. They didn't take anybody for any money, they made the best business decisions they could at the time. All of you who lost money...join the club, we all have. 1031's are extremely risky, and you wouldn't have been doing them if you weren't trying to lower your tax liablitity and get out of paying taxes. Give me a break, this holier than though attitude that seems to be a recurring themem in here is ridiculous. A lot of you need to grow up and move on. One last comment. CRB and Umpqua wouldn't have been doing this business w/ Summit if they thought it was illegal. No one thought it was illegal, no personal money was being funneled out. It was just a bad investment and everyone made one and more then just these four men made bad one's with investment money
Lyons and Larkin came on in 2006, exactly when these loans quit being made. Effectively the loans quit being made the day Lyons and Larkin took over the day to day operations of Summit.
The best way to take care of this would be to have a trustee who is anxious to sell. Talked to a Realtor today who had an offer on one of the properties and Padrick AGAIN, said he's got 5 years to sell these and he's in no hurry. So all you creditors ought to be breaking down Padrick's door and demanding he get your money back. Instead of wasting his time going after Umpqua for money that he's never going to get.
Also, I can't imagine when this is all said and done that the Umpqua and Summit principals don't go after Padrick w/ a defamation lawsuit for putting all this erroneous information in the papers, and completely misrepresenting the situation to the public.
Maybe you should check your facts. According to Larkin's own biography, he "joined Summit in 2002, and has since been responsible for the continuous improvement of processes during a period of unprecedented company growth." This can be found at the following link http://www.spoke.com/info/p6W4ctb/TimLarkin
As for Lane Lyons, his biography states that he joined Summit in May of 2005. His info can be found at http://www.spoke.com/info/p6W4cyt/LaneLyons
So, don't think that they didn't know what was going on. You must be delusional about these guys. Maybe there wasn't any ego or greed going on as you say, but they sure knew what they were doing was wrong. They knew that people expected their money to be available in 180 days. If people knew that the only way they were going to get their money was if somebody did an exchange behind them because Summit invested in non liquid assets, people would have never trusted Summit with their money. Perhaps it was simple incompetence. Nothing sinister at all. But that still doesn't mean it was ok. Lack of knowledge of the rules, doesn't mean that you still didn't break them and won't be held accountable.
"working for" and being a "partner" are two VERY different roles. If you want to accuse Lyons and Larkin because they were employees then I guess every employee ever employed by Summit should be investigated as well?
Also, I'm still confused on what "rules" they broke? There is no law or private letter ruling or any other authoritative statement saying where exchange funds are to be held. AND real estate was about the most liquid thing you could be in until 2008 (2 years after Summit was making these loans). I agree it's a mess, and I know these partners want nothing more than to get all these creditors their money back. I don't know what else they could possibly do, they are out of money and have no control of the assets. It seems to me the problem here Kevin Padrick. I don't know why more people aren't demanding that this guy start unloading these properties instead of wasting time and money going after umpqua for additional money? I've heard this guy is making 16% off every asset he recovers. I don't see how that is going to help anyone recover their money...
Re: "working for" and being a "partner" are two VERY different roles. If you want to accuse Lyons and Larkin because they were employees
####
Are you even based in reality?
Lyons and Larkin were principals. Meaning they ran the shop. They told their investors that monies given them were placed in FDIC guaranteed accounts, not in the speculative real estate that those monies were actually invested in.
I have multiple newsletters stating such.
Employees?
You might have scrubbed their website, but we have copies of what they stated before your scrub.
Re: AND real estate was about the most liquid thing you could be in...
####
You are truly in la-la land.
Padrick is in the real world.
Keep posting. It's fun watching you hang yourself.
Yes, real estate "was" extremely liquid. You were living in a cave the last decade if you can't see that.
Larkin and Lyons became Principals in 2006. They were running the shop 2006 and after...AFTER THESE LOANS QUIT BEING MADE! I've heard from more than one source that the partnership agreement Lyons and Larkin entered into, had wording basically saying that Neuman and Stevens were to give up day to day operations of Summit and focus on unloading these investments. I believe in the time that Lyons and Larkin were principals that amount in real estate investment dropped by somewhere in the neighborhood of 30 million. So it sounds to me like the money that came in with Lyons and Larkin in charge, did, in fact stay in the bank. Why in the world would all these banks have been courting them for these funds if they weren't at the bank's disposal???
Unfortunately the other 2 principals had created the original hole that they were unable to dig out of.
Plus, from the sounds of it, if the Bonding Company would do their job and insure the funds, then creditors would be damn close to recovering all their money.
How can you possibly think a guy getting 16% off every asset unloaded is in the real world? A guy who hasn't unloaded a single asset yet? The real world is that there are A LOT of assets out there that, granted, in today's market don't have the highest value....but I know for a fact he's turned down multiple fair offers on these properties. That's all money that could be in these creditors hands if it wasn't for his greediness.
Dear Summit 1031 Exchangers,
I am so sorry your money has been caught up in the Summit 1031 Bankruptcy. You have reason to be very upset. You trusted Summit 1031 with your money and suddenly the company is in bankruptcy court. It is an unfortunate situation for all, but mostly for the exchangers. Summit 1031 owed exchangers $27.8 Million, but they only had $13.6 Million in cash. Their shortfall was $14.2 Million. How could this have happened? It is upsetting and you want answers, but mostly you want all your money back! I can understand the anger you have. Who wouldn’t be angry? You have every right. You also deserve to hear the truth about what has happened.
GOAL: Are there better solutions to getting your money back to you? I want to know and I want to do what I can to make that happen.
Did you know the principals of Summit 1031 always wanted to turn over their assets to help pay off their debt to you? They never intended for this to happen and have always wanted to do what was right by their clients. However, since the company filed for Chapter 11 Bankruptcy, this has been practically impossible. All that seems to be going on is rising professional and attorney fees. I just submitted an objection to fees amounting to almost $1 Million. I am doing this to help minimize the cost, help maximize the value back to the exchangers because it is what the principals and I want.
I know you have no reason to trust me, but if you want to know more about what is happening to your money, I have posted the information on a website.
I don’t think the principals of Summit are not to blame. Their business was not able to pay you back. They should have to deal with whatever consequences they get, but based on the truth or at least the complete facts and circumstances that led to their bankruptcy. They did not intend for this to happen and they just want you to get your money back. They have been, since DAY 1, wanting to give all they had to cover the shortfall. They transferred practically everything they owned personally to help pay you back, but with the outrageous legal fees and the falling market it will be tough.
Please know that if the principals could go back and do a better job at getting your money to you they would, but now your money is in the hands of Kevin Padrick and I want you to be aware of what he is doing to get your money back. I think Terry Vance would do a better job and maybe you would not have to pay Kevin Padrick and his team of professionals the $1 Million of professional and legal fees they have submitted in their fee application. This is only for 5 months worth of work. Kevin Padrick is supposed to have this job for 5-7 years. At this rate, it will be at least $11 Million for the duration of his tenure as bankruptcy trustee.
Please go to my website at www.summit1031bkjustice.com for more information. I think you having more information on this case can only help you to get your money back.
Please see for yourself what the goals of the principals have been by viewing the taping of Kevin Padrick and Obsidian’s presentation at: http://www.summit1031bkjustice.com/?page_id=254
Sincerely,
Stephanie Studebaker-DeYoung
(I am an investor in 4 of the LLC’s where the principals’ interest has been transferred to the Trustee of the Summit Bankruptcy and I am the daughter of Mark Neuman, one of the principals of Summit 1031. I am a person who wants your money paid back to you.)
Steph, you forgot to mention this:
2) The home purchase Padrick speaks of occurred in October of 2002, 6 1/2 years ago. My dad foresaw the rise in the Bend market and wanted me to purchase a house before it became unaffordable. I told him that I could not currently afford to purchase a house in Bend, but that I would check out Redmond. He said that I should buy on the west side of Bend, where the properties held their value better. I told him he was crazy. I could never afford a house on the west side of Bend! He said that if I could find a good deal, he would loan me the money for a down payment. I worked hard looking for a deal. At that time, houses were selling for $125/square foot across the board. Then I stumbled on a development called Skyliner Summit. They were selling larger homes for $95/square foot. What if I could one day sell this for $125/square foot? That would be good. Dad thought it was a good deal too, so he agreed. He said that I could pay him back for the down payment when I sold this house sometime in the future.
About a year ago, I received an email from someone at Inland saying that I owed them money for this down payment. I said that was a deal between my dad and me. I never borrowed money from Inland. Then at a lunch with my dad, he asked me to pay this back. I said “But Dad, that wasn’t the deal. The deal was that I would pay it back when I sold the house.” He said that he needed to pay off this loan at Inland. I told him that he should pay it back, not me, because that was not what we had agreed to. I argued that he should consider the down payment his contribution to helping me pay for college, and forgive my debt to him. He must have thought I made a good case, because he agreed to it. He paid interest on this loan for the duration and paid it off in full with his personal funds. What about this is criminal?
####
Criminal? Who knows. Self serving with other peoples money? Fuck, yes.
Get over it, Steph. Your Dad made some risky choices, and they imploded with the RE market. If he had put the exchange funds in the FDIC guaranteed accounts that he stated he would in his marketing materials, none of this would be happening.
But then, you and he wouldn't have had your houses bought using Inland funds.
Greed is pathetic in the end.
Bewert,
Do you want to moan about what has already occurred and is something none of us can change? Are you even using your real name? Nice choice of language? I am trying to save the exchangers money. What are you trying to do?
It is really easy to rant and rave about things you have little knowledge on behind a bogus name.
To everyone else,
I received an email from David Aman at Tonkon Torp, Kevin Padrick’s legal counsel, requesting I remove the taping of the presentation from my website. I already researched the legality of this taping with an attorney and it was allowed because this presentation is considered semi-public and the video equipment was not concealed. Apparently, they don’t want this video out there for the public to see. Why would that be? Take the time to watch the video and read the transcript to see why Kevin Padrick and Obsidian Finance doesn’t want you to see this. It will be interesting to see what Kevin Padrick’s next step will be to get this taping off of my website. I will update you as events occur…stay tuned!
For more complete information on the Summit 1031 Bankruptcy Case GO TO:
http://www.summit1031bkjustice.com
Below is a Complaint I filed with the Complaints Board. It is a more indepth explanation of what is going on with the legal and professional fees and services in this case...
http://www.complaintsboard.com/complaints/legal-amp-liquidation-services-c225684.html
If you want to save yourself almost $1 Million, then listen up! On September 2, 2009, there is a hearing on the fee applications. The fees haven’t been authorized by the court yet. Make sure your money is being used wisely and in your best interest.
To see Kevin Padrick & Obsidian Finance's "professional" presentation Go to http://www.summit1031bkjustice.com/?page_id=254
Best Regards,
Stephanie Studebaker-DeYoung
What is this Spat Between Kevin Padrick and Stephanie DeYoung Really About?
I mean this Stephanie Studebaker DeYoung is an unlikely Source to be standing up, somehow for the very consumers her dad’s company is said to Have “ripped off”. But that is exactly what she is doing. You see it is said that Financial Consultants and Attornies are Eating up the Money that the Real Estate Consumers Should Be Getting.
Tough to Believe Stephanie Studebaker – DeYoung when she is VERY connected to a part owner of Summit 1031 Exchangers, and it is kind of an us against them right.. Consumers that were Trying to do a 1031 Exchange against the Big Bad Summit 1031? The Media, we know they always tell the truth and the whole story, well the Media feels sorry for the Real Estate Consumer, as do I but they are NOT getting down to the Nitty Gritty to Expose where the money is REALLY being tied up at, who or what is holding up Millions upon Millions of Dollars ? What if there is more to the Story and the More is the KEY to you getting your Life Back?
Well there seems to be some sort of Smack Down between Stephanie DeYoung and Kevin Padrick, and Being the Real Estate Industry Whistleblower, I wanted to dig deeper and see if there was anything to all this, if the real estate consumers really need to know, if their was signs of Real Estate Corruption, Real Estate Lies that My Real Estate Consumers ( that YOU) NEEDED to know and it turns out there is a TON of information that you truly do need to know.
Read More...
http://www.realestatelies.com/2009/07/what-is-this-spat-between-kevin-padrick.html
http://www.summit1031bkjustice.com
http://www.youtube.com/watch?v=7-xt6FLCpE0
Steph, sorry but you are just running a rear guard for your father.
This is from their last newsletter, dated October, 2008:
"Today, many exchangers have a heightened degree of concern about the safety of their exchange funds resulting from recent bank failures. In addition to bonding and professional liability insurance, Summit 1031 Exchange uses a variety of measures to protect exchange funds. They include utilization of multiple depository institutions, insistence on access to the highest level executives at those institutions, and continual monitoring of the key financial ratios of the institutions. Perhaps most significantly, Summit seeks to protect exchange funds through the use of the Certificate of Deposit Account Registry Service (CDARS). CDARS provides Summit with the ability to obtain FDIC insurance on ALL deposits made through this system (not just up to $250,000). However, because Certificates of Deposit are illiquid, all funds can not be placed in the CDARS program. So, Summit seeks to maximize the funds invested in CDARS while maintaining adequate liquidity to meet the day-to-day cash flow requirements of exchangers."
I saved it to my server before the entire web site was wiped.
Note that it states, even at this late date, that exchange funds have been safely held in FDIC-insured accounts. Which is simply a bald-faced lie.
Note that it doesn't state that exchange funds have been loaned to Inland, and then to insiders.
Bewert - Who ever you are...
You are old news...Get A CLUE.
I am fighting to get the Summit 1031 Exchangers their money back.
Let the experts determine what Summit's actual legal crime if any is. Who are you anyway? Obviously, one who lacks the balls to provide your true identity.
To everyone else...
The whistle is being blown...toot toot...Kevin Padrick, Obsidian Finance, & Tonkon Torp didn't want you to know that they have been milking the estate and will continue to do so until it is too late. You can stop them...contact the creditors' committee and their counsel and the US Trustees office. Ask your questions, get your concerns heard. Check the court public records. Google Kevin Padrick and Obsidian Finance to see what they have been doing...The TRUTH is finally getting out and it is in time to save you much money and heartache. Please check into this because there is a hearing on September 2nd on the fee applications. If the fees are approved, you may have to pay Kevin Padrick, Obsidian Finance, and Tonkon Torp (Kevin Padrick's Legal Counsel cuz he sure needs it) and say goodbye to $1 Million Dollars. OR start checking into this. Gather your own information. The truth is out there for you to get now.
Contact your representatives...
Jeanette Thomas of Perkins Coie
Portland
PHONE: 503.727.2075
FAX: 503.727.2222
JThomas@perkinscoie.com
Jake D. Miller at Jake.D.Miller@usdoj.gov
Go to My Website for the Whole Truth...And Updates on the case.
http://www.summit1031bkjustice.com
Other Reporting on this case can be found on the following sites...
http://www.realestatehoax.com/
http://www.realestatelies.com/
http://www.realestatenark.com/
http://www.realestateindustrywhistleblower.com/
http://www.kalispellmontananews.com/
http://www.realestateillusion.com/
http://www.brokerszone.com/
It is flat, without a doubt Kevin Padrick's fault that the creditors have not received most of their money back..end of story. Summit made some bad choices...though a far cry from criminal ones. Padrick was supposed to come in and finish exchanges, get money from the insurance and that would have pretty much taken care of the problem. He obviously is not to blame for the situation Summit got themselves into , but he is absolutely, completely, without question to blame for this process being drug out, creditors not getting their money back, and wasting a ton of time and money that isn't his. Kevin Padrick is the only criminal I see in this whole situation.
hahaha bewert is a fraud. look at his product: "Exerscape, a video treat for exercising". The snake oil salesman tries to feign ethics. Stick to teaching home ec or wood shop "mr. bruce". btw your name makes you sound like a pervert. i wouldn't let my kids be taught by you
You don't have to--I'm sure you home school your kids.
Yep, check out my invention:
US Patent #6004243 and US Patent #6142913 and Australian Patent #735562.
It's been licensed by companies doing in total about $1.5B of sales.
But, hey, whatever.
yeah you were most likely pretty excited when some billion dollar companies were sniffing your ass. then you realized, this is how billion dollar companies work. they have deep pockets, so they cast their nets far and wide, picking up any old garbage from the street in hopes that it will contain a gem. yours was not a gem. it was snake oil and these companies easily detected that. the story is painfully obvious from your website: the last activity dates to 2003. clearly a dying venture, but you will keep talking about it for the next 20 years because this "accomplishment" is the only blip on your success radar. people like those involved in summit accomodators are a perfect vent for your frustration that stems from a life full of mediocrity and one risk that ended in failure. you can blame your current position on their "corruption", but you're only fooling yourself brucy boy. you're only fooling yourself
Yeah, that's why I don't deposit those quarterly royalty checks. Makes more sense to keep fooling myself that they aren't real...
Yeah, I know I need to update that site. But I'm too busy with other things.
Sorry I can't make you happy.
if it were worth your time, you would be busy with exerscape snake oil. you can't update your site if there is nothing to say. google exerscape. there is no talk of it since it was first introduced. the tell tale sign of a garbage invention.
I started working on it in 1988. It was never sold as Exerscape, but first as the Blackburn Motivator in 2001. Now Tacx is a licensee, with their Real Life Video training, and since then I've given a master license to John Ford at Virtual Active Travel. Another large fitness company is coming out with a product that John is working on this fall, or so I am told. We are also in discussions to license Computrainer.
I got bored after so many years, and am doing other stuff more now. But it is still bringing in income.
Summit Principals and the bimbo that is now operating the summit1031bkjustice.com site is and should be thrown in prison. They are criminals. No other way to put it. They belong in prison along the side of rapists, bank robbers and child molestors as they have RUINED peoples lives and then have the nerve to put up a website that states they are innocent and did nothing wrong cause " we did nothing wrong as our industry was not regulated" Amazing the arrogance and ignorance of these idiots.
Mark Neuman and Brian Stevens are criminals. No other way to put it. Mark's bimbo daughter has got to be one of the dumbest people in Bend. Talk about stupid and arrogant. Now that the attorneys are trying to clean up her mess, she and her dad are WHINING about how they are victims like the exchangers....a great manipulation tactic, but in all truth a lie, However it is a family tradition with the Stevens and Neuman family to LIE, CHEAT and STEAL. They are better than the rest of us. Tell that to the people that are renting homes due to finding out in Escrow " Mr. and Mrs. X you cannot buy your home, your dream home you have worked your whole life for because Mark and Brian speculated with your hard earned cash"
Juniper Ridge was a greed factory orchestrated by Brian and Mark. Thank god it did not happen otherwise they would have cleaned out the Summit company completely. The LLC was formed because they KNEW what they were doing was wrong
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