Author: Karen Velie

Lenders accused of fraud agree to surrender licenses

Posted by Karen Velie | Oct 21, 2008 | Uncovered SLO | 0 |

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 order giving the pair 22 days to surrender the licenses.

U.S. troops deployed for U.S. election control

Posted by Karen Velie | Oct 20, 2008 | Uncovered SLO | 0 |

By KAREN VELIE and DANIEL BLACKBURN

For the first time in more than a century and in apparent violation of federal law, the U.S. military soon will be policing American streets — ostensibly to control anticipated post-election disruptions.

Battle-trained infantry troops will be in place and ready to conduct hostilities against American citizens, according to reports in Army Times. Unknown is how many troops will be deployed for what the military has dubbed “Consequence Management Response Team” operations.

STAKEOUT CONFIDENTIAL: Seeing Guth and Yaguda in handcuffs

Posted by Karen Velie | Oct 19, 2008 | Uncovered SLO | 0 |

By THE EDITORS

Law enforcement plans to grab Estate Financial Inc.’s principals some time Thursday raced through the investor community like rumors of rain during a drought.

So we knew what was going to happen, we knew who, why, and where. But exactly when? That piece of information was missing.

EFI ‘s Guth, Yaguda arrested on multiple fraud charges

Posted by Karen Velie | Oct 16, 2008 | Uncovered SLO | 0 |

By KAREN VELIE and DANIEL BLACKBURN

Beleaguered Estate Financial Inc. (EFI) principals Karen Guth and her son Joshua Yaguda were arrested Thursday morning on 26 felony charges.

A parade of a dozen San Luis Obispo County Sheriff, District Attorney, and state vehicles roared into the Pasolivo Olive grounds at 10:15 a.m. armed with arrest and search warrants.

Before they were handcuffed and taken away, Guth and Yaguda could be seen talking to investigators near a large barn on their property.

EFI UPDATE: Corporate criminals?

Posted by Karen Velie | Oct 11, 2008 | Uncovered SLO | 0 |

By KAREN VELIE and DANIEL BLACKBURN

In an attempt to explain the ongoing financial calamity created by Estate Financial Inc. (EFI), trustees recently held a meeting in which they frequently used the “F” word (fraud) and appeared to explain an apparent Ponzi scheme without dropping the “P” word.

EFI is one of at least four San Luis Obispo County hard money lenders that has participated in lending schemes and inappropriate management practices that may have already cost investors more than $500 million and created an environment that could cast a shadow over personal and business finances in this county for decades.

Paso city computer pressed into service to slam citizen

Posted by Karen Velie | Oct 7, 2008 | Uncovered SLO | 0 |

At least one Paso Robles city computer was used to post on this Web site’s blog dozens of derogatory, revealing remarks and private information about a citizen in the aftermath of a recent CalCoastNews commentary on Paso Robles police practices.

A message for the birds: Avoid this no-fly zone

Posted by Karen Velie | Oct 2, 2008 | Uncovered SLO | 0 |

Pigeons are dropping from the Atascadero skies, bleeding from the eyes and dying after allegedly being drugged by pest control workers

Santa Margarita School principal convicted of DUI

Posted by Karen Velie | Sep 18, 2008 | Uncovered SLO | 0 |

By KAREN VELIE

Santa Margarita Elementary School Principal Melanie Karp has been sentenced to two days in the county jail and three years probation for driving under the influence of alcohol.

Commissioner Stephen B. Sefton also levied a fine of $1,726 and ordered the school official to attend alcohol abuse classes after she pled no contest to a drunk-driving charge.

Hurst records held hostage by family friend

Posted by Karen Velie | Sep 18, 2008 | Uncovered SLO | 0 |

By KAREN VELIE and DANIEL BLACKBURN

Investors of the failing Atascadero lender Hurst Financial Corp. (HFC) say they are being prevented from collecting their records by a relative of Hurst’s beleaguered president.

Robert Borba of Stinchfield Financial, another hard money lender, was given possession of the records by James Hurst Miller. Borba is refusing to release any of those records and blaming a state agency for resulting problems.

Clarification

Posted by Karen Velie | Sep 18, 2008 | Uncovered SLO | 0 |

A Sept. 16 article erred in reporting that Morro Road LLC owns Tastee Freeze in Atascadero. In fact, the LLC owns only the real property; the restaurant is a lessee not owned by or connected to Kelly Gearhart or any Gearhart company.

BULLETIN: Gearhart crashing, burning

Posted by Karen Velie | Sep 16, 2008 | Uncovered SLO | 0 |

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 unfinished projects, all funded by Hurst Financial Corp. (HFC) investors.

Local group trying to buy The Tribune

Posted by Karen Velie | Sep 12, 2008 | Uncovered SLO | 0 |

A group of county investors, hoping to keep The Tribune locally owned, is making an attempt to purchase the struggling daily from its parent McClatchy Newspapers.

Both Publisher Chip Visci and McClatchy treasurer Elaine Lintecum declined comment.

The investment group advocates a focus on the community, said San Luis Obispo attorney James Duenow, who is working to broker a deal with McClatchy officials.

COMMENTARY: Girl chief gone wild?

Posted by Karen Velie | Sep 11, 2008 | Uncovered SLO | 0 |

By KAREN VELIE and DANIEL BLACKBURN

Lisa Solomon, chief of the Paso Robles Police Department, just loves to dance.

But is she dancing with the stars? Or dancing on the bars?

Dancing is what she does whenever she’s asked if she thinks there is much of a gang problem in her city. It’s what she’s doing in federal bankruptcy court while proclaiming a million dollars of debt.

And it’s what’s she’s known for far and wide… dancing on the bar at the Paso Robles Inn. There she’d be, strutting her stuff up and down the slab, and if the place was too crowded, well, a table top would do.

Woman attacked, gang connection alleged

Posted by Karen Velie | Sep 10, 2008 | Uncovered SLO | 0 |

By DANIEL BLACKBURN and KAREN VELIE

A Paso Robles woman was sexually assaulted shortly after midnight Tuesday in her own front yard by three Hispanic men who shouted racially-charged slurs.

The woman, in her mid-20s, was attacked from behind as she parked in her driveway on Trigo Lane. She told authorities she was raped with an object, probably a sprinkler head. She said the men called her vile names and referred derogatorily to her race during the violent assault.

Investigators at the crime scene said “initiations” for membership in a local gang are currently underway, according to friends of the victim’s family.

DUMPSTER CHRONICLES: Lender Hurst in a can

Posted by Karen Velie | Sep 9, 2008 | Uncovered SLO | 0 |

FIRST IN A SERIES

By KAREN VELIE and DANIEL BLACKBURN

Atascadero lender Hurst Financial Corp. (HFC) is fielding accusations of fraud from a second state agency, but the company’s bigger problem might already be in the bag.

Hurst’s president, James Hurst Miller Jr., and his daughter, HFC employee Courtney Lee Brard, are similarly accused by both the departments of Real Estate and Corporations, and already have had their permits to operate either suspended, revoked or threatened.

But in the end, eight bags of trash might weigh in more heavily than mere allegations.