Author: Karen Velie

Local lawyer runs questionable charity

Posted by Karen Velie | Jun 26, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

A local attorney takes out more than 60 percent of monies donated to a nonprofit he oversees before sending the remaining monies to a self declared cleric alleged to have defrauded donors from throughout the world, according to tax documents and news sources.

Founded in 2001 by San Luis Obispo attorney Eric Parkinson, VeAhavta’s stated mission is to “lovingly nurture the physical, emotional and spiritual well being of orphans and destitute elders in a secure home.” Donations allegedly support the day to day operations of the Grace Care Center, an orphanage and home for seniors.

Investors torture financial advisor

Posted by Karen Velie | Jun 24, 2009 | Uncovered SLO | 0 |

A group of four seniors kidnapped, bound, and tortured a financial advisor who they claim was responsible for losing 2 million pounds they had invested in real estate projects. Capturing and binding the advisor took time as his kidnappers kept “running out of breath,” according to MailOnline.

UPDATE: Shores pays thousands to avoid paying investors

Posted by Karen Velie | Jun 23, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

North county developer Jimmie Shores, his brother Ronnie Shores, and Hurst Financial Inc. (HFI) President Jay Miller, in twisted and conflicting deposition testimonies and interviews, each maintains one of the others is responsible for paying back $700,000 to a group of 20 investors, primarily seniors.

HFI granted Jimmie Shores two short term construction loans in 2006. Miller, in turn, placed 20 investors on the deeds of trust of the two parcels used to secure the debts. Located in northeastern Atascadero, the proposed sites of two custom homes remain bare lots except for a tangled crop of weeds.

Earlier this year, Jimmie Shores told investors he had received only $15,000 of the $700,000 he was promised by HFI. After copies of the canceled checks surfaced showing the loans were fully vested by the end of 2006, Jimmie Shores said he didn’t have to repay the debt because his brother Ronnie Shores had stolen the money.

UPDATE: Employees accused of pilfering county vehicles

Posted by Karen Velie | Jun 19, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Randy Ghezzi and Max Keller remain on paid administrative leave while the San Luis Obispo County Human Resources Department investigates allegations the pair pirated county equipment, sources said.

According to multiple sources, road crew supervisor Keller was caught using county equipment for his own use over a weekend. Keller allegedly commandeered a county truck to transport wood, previously cut with the use of county equipment, to a relative’s home to be offered for sale.

Tribune exclusive, Wilcox accuses Edge of sexual harassment

Posted by Karen Velie | Jun 18, 2009 | Uncovered SLO | 0 |

The Tribune reports that Assistant County Administrator Gail Wilcox has filed a lawsuit that levels allegations of sexual harassment against deposed County Administrator David Edge.

In May, CalCoastNews first broke the news that Wilcox had lodged allegations of sexual harassment against Edge.

The strangest part of the lawsuit, which names the San Luis Obispo County Board of Supervisors as Edge’s codefendants, is the rapidly promoted Wilcox’s claims of workplace discrimination as one of her causes of action. This is, in fact, one of the county’s steamiest law suits ever, according to a Tribune update.

Fraud lawsuit filed against Heritage Oaks Bank and Stewart Title

Posted by Karen Velie | Jun 15, 2009 | Uncovered SLO | 0 |

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 seeking punitive as well as compensatory damages.

Con man misleads Hertel-Fowler bankruptcy trustee

Posted by Karen Velie | Jun 12, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Bankruptcy court trustees are investigating claims that businessman Rob Rossi and the City of Atascadero are concealing assets of developer R.W. Hertel and Sons in an attempt to help the bankrupt home builder avoid paying creditors and taxes.

Trustees began their investigations despite information that the man making the allegations is known to have duped Ross Perot, ABC’s Peter Jennings, and the FBI.

Scott Barnes is infamous for convincing Perot to drop his bid for the presidency due to information Barnes was accused of constructing. Barnes has a resume that includes serving time for fabricating evidence, illegal wire tapping, giving false testimony, and sending government investigators on wild goose chases, according to a Times article.

Hertel and Fowler court ordered to appear

Posted by Karen Velie | Jun 7, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Following an emergency motion, a federal judge ordered R.W Hertel and Sons’ principles Ronald Hertel and Robert Fowler to appear in bankruptcy court or face possible arrest, according to the June 4 order.

U.S. Bankruptcy Judge Robin Riblet signed the order following an emergency and ex parte motion by court assigned trustee Sandra McBeth.

“Due to the many allegations of impropriety and the inability to obtain information, the appearance of the principles Fowler and Hertel, are absolutely necessary and time is of the essence,” McBeth says in her motion in which she also notes the “threat of actual removal or destruction of assets of this case.”

Paso Robles Police officer presides over fraudulent charity

Posted by Karen Velie | Jun 3, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

State Attorney General Edmond G. Brown filed a lawsuit against the California Organization of Police and Sheriffs (COPS) alleging they engage in “unlawful, unfair, and fraudulent business practices,” on May 29.

Paso Robles Police officer Nicki Woods currently holds the position of board president of the agency. The state complaint lists 13 causes of action that include allegations that the Civic Development Group (CDG), the telemarketing firm COPS contracts with, repeatedly deceived donors.

U.S. Marshals seize Hertel and Fowler’s yacht, guns, and ammunition

Posted by Karen Velie | Jun 1, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Federal authorities seized bankrupt developers Ronald Hertel and Robert Fowler’s 2005 Bertram yacht including guns and ammunition, and a 1988 Broward yacht under purchase by Hertel earlier this year as part of an ongoing effort to recoup funds the financially troubled developers owe to lenders.

U.S. Marshal Adam Torres acted on a court order requested by City National Bank to pay off a $1.75 million mortgage the bank says Hertel and Fowler owe on the “Dram Buoy,” a Bertram yacht the developers registered in the Cayman Islands. Hertel and Fowler haven’t made monthly payments of $8,333 since November 2008.

FBI accuses Miller of racketeering and money laundering

Posted by Karen Velie | May 29, 2009 | Uncovered SLO | 0 |

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.

Ask Edge: Define harassment

Posted by Karen Velie | May 21, 2009 | Uncovered SLO | 0 |

Recent reports of the firing of county administrative chief David Edge include admissions by Edge to The Tribune that he supported his second in command by providing her a book called “Getting Naked.” Gail Wilcox responded by leveling a “hostile workplace” complaint.

Thanks to KSBY interviews with Edge, you can now view the county’s ex-leader explaining how he did nothing wrong and how deserving Wilcox was of her promotions through the ranks. [KSBY]

Gearhart hiding assets

Posted by Karen Velie | May 20, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Bankruptcy trustees have seized a collectable car and are looking into allegations ex-North county developer Kelly Gearhart and his wife, Tamara Lowe, have hidden assets during their high profile bankruptcy.

Bankruptcy trustees seized a yellow 1935 Packard Gearhart and Lowe owned because the couple failed to disclose the asset in their bankruptcy filing, said attorney David Farmer with the law firm of Farmer and Ready.

Guth and Yaguda plead not guilty

Posted by Karen Velie | May 16, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

Estate Financial Principles Karen Guth and Joshua Yaguda Friday pleaded not guilty in San Luis Obispo Superior Court to charges they defrauded millions of dollars from more than 3,000 people.

Prosecutors have charged Guth and her son Yaguda with 26 felony counts associated with a hard money lending business the pair led.

Edge’s job on the line

Posted by Karen Velie | May 14, 2009 | Uncovered SLO | 0 |

By KAREN VELIE

The County Board of Supervisors will evaluate whether to terminate County Administrative Officer David Edge at their next meeting on May 19.

Both Edge and Assistant County Administrative Officer Gail Wilcox are on paid administrative leave. A source told CalCoastNews the absences were due to allegations of sexual misconduct.