County officials did not provide CalCoastNews the press release regarding the possible termination of David Edge and the appointment of Jeff Hamm. This is not uncommon.
Because of this, the following e-mail was sent to County Counsel Warren Jensen:
Read MoreBy KAREN VELIE
San Luis Obispo County’s top two administrators are currently missing in action, and county employees have been ordered not to discuss their absences.
Monday, a source told CalCoastNews that County Administrator David Edge had stepped down following allegations of sexual harassment leveled by Assistant County Administrator Gail Wilcox. Our source alleged that the Board of Supervisor’s closed session discussion on May 8 regarding the allegations had resulted in the pair being placed on paid administrative leave.
Read MoreBy 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 North County developer with ties to Hurst Financial Inc. (HFI), is a primary partner in the syndicate. Gearhart’s questionable land dealings, bankruptcies, and financial losses have caught the attention of law enforcement.
Gearhart has linked up with attorney Grigger Jones, Chris Molina and Dan Phillips to sign a contract with the Salinan Tribe of San Luis Obispo County to “develop a large community self-sustaining, green energy producing Indian reservation development,” according to the project’s business plan.
Read MoreBy KAREN VELIE
A federal bankruptcy judge slashed fee requests and ordered professionals working on the Estate Financial Inc. (EFI) bankruptcy to practice frugality in an attempt to protect assets for EFI investors at a hearing on Wednesday in Santa Barbara Federal Bankruptcy Court.
“I don’t want to see money frittered away on fees,” Judge Robin Riblet said. “No one should be surprised; I took a cleaver to the fees.”
Read MoreBy KAREN VELIE
Prominent North County developer Jimmie Shores says he doesn’t have to repay a $700,000 hard-money loan because his brother, Ronnie Shores, stole the money, while Hurst Financial President Jay Miller, maintains the Shores are trying to defraud investors.
“I don’t think he (Jimmie Shores) had any intention of building anything,” Miller said. “He never even took out the permits. I took them out and paid for them.”
Read MoreBy 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 supplant individual investors. Bank officials have attempted to foreclose on properties in which hundreds of investors, primarily retired locals, already have a prior financial stake.
In addition, a large, unsecured loan made by Heritage Oaks Bank to Guth, Yaguda, and high-rolling developers created a false air of credibility that may have duped some hard-money investors.
Read MoreBy KAREN VELIE
California State University Chancellor Charles B. Reed informed California Polytechnic State University President Warren Baker that he will not approve a student fee increase at this time, said Cal Poly Provost Bob Koob Tuesday.
Students voted earlier this month to increase fees $100 to $200 per quarter to protect their degrees and help guarantee the availability of classes and labs.
Read MoreBy KAREN VELIE and DANIEL BLACKBURN
A federal bankruptcy judge overseeing the division of assets of failed North County hard money lender Estate Financial Inc. (EFI) balked Wednesday at professional fee requests totaling nearly $4 million and said she will examine those claims more closely.
Trustees of EFI’s funds sought the court’s approval of the fees for themselves, attorneys, and others working on EFI’s bankruptcy proceedings during a hearing in a Santa Barbara U.S. bankruptcy court so that they could start dispersing funds monthly to professionals working on the bankruptcy.
Read MoreBy KAREN VELIE
A third figure emerged as a possible suspect in fraud precipitating the collapse of hard money lender Estate Financial Inc. (EFI) during yesterday’s courtroom squabble over the remains of the once rich and influential entity.
San Luis Obispo County Superior Court Judge Jac Crawford said questions linger about one-time co-owner Charlie Applebaum’s possible participation in alleged EFI crimes. Crawford also pointedly wondered about the legitimacy of claims put to the court by a gaggle of claimants, including Heritage Oaks Bank.
Read MoreBy KAREN VELIE
Systematic killing of protected animals at the Dancing Star Foundation’s Cayucos sanctuary and excessive salaries of a husband-wife team of self-proclaimed environmentalists may violate the non-profit corporation’s filings with the state of California.
Lucy Sheldon, a with assistance from the Animal Place Sanctuary, applied to California’s Secretary of State for the non-profit corporation’s filings and said she will send them to the Attorney General with a request seeking an investigation.
Sheldon and the Animal Place will join complaints of numerous animal welfare groups from throughout the nation who have asked the Attorney General’s office to determine if Tobias and Morrison’s management of the Dancing Star Foundation violates non-profit corporation and IRS laws.
Read MoreBy KAREN VELIE
While most people touched by the Estate Financial Inc. (EFI) debacle have been monetarily devastated, a select few are in line to do quite well. Trustees and their special attorneys have collected, or are requesting, compensation of $4.5 million for their effort to organize the failed North County lenders’ debts.
Charges includes approximately $4 million for the current trustees and their staff and about $500,000 in charges from two previous trustees. That averages more than $20,000 a day.
Read MoreBy KAREN VELIE
During the latest battle over assets of failed Estate Financial Inc. (EFI) , attorneys for trustees, former co-owner Charlie Applebaum, Joshua Yaguda’s wife, and Heritage Oaks bank argued their clients alleged claims at an asset hearing on Friday.
San Luis Obispo Deputy District Attorney Steve von Dohlen objected to Joeli Yaguda’s request that the court recognize an undocumented ownership she claims to have in the Willow Creek Olive Ranch. Currently, Mrs. Yaguda manages the operation under the watchful eye of the district attorney’s office. Von Dohlen noted that “Mrs. Yaguda has done a good job managing the property.”
Read MoreBy KAREN VELIE
Centervest, the group that contracted to take the torch from Ernie Dalidio and propel his proposed development through the system, has backed out, reportedly because of the economic downswing. Meanwhile, Dalido’s team continues attempts to unmask their mysterious foe, the Responsible County Development LLC.
Centervest principles John Wilson, Rudy Bachman, and Tom Morrell have elected to focus on their Promenade shopping center after learning Gottschalk’s was following in the footsteps of Mervyns and planning to shut their doors, sources said. Kohl’s is likely to replace Mervyns, and Macys is a probable candidate for the Gottschalk’s site.
Read MoreABC’s John Stossel explores an American anomaly — medicinal marijuana which is legal in some states, including California, but unlawful under U.S. law. Stossel’s third segment of his series “Bailouts and Bull” examines the extraordinary case of Charles Lynch of Morro Bay, who was arrested and convicted on federal charges after San Luis Obispo County Sheriff Pat Hedges initiated action against the business.
Read MoreBy KAREN VELIE
San Luis Obispo County’s daily newspaper, The Tribune, will terminate seven employees, and its top officials are reported to be warning of massive layoffs to come in the wake of a similarly foreboding announcement this morning by parent company McClatchy Newspapers Inc.
Tribune executives told staff, said one employee, that “they are facing bankruptcy if [the newspaper] is not sold within 30 days.”
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