Thursday, March 27, 2014

Obsidian Finance Group, LLC and David Aman of Tonkon Torp, and Kevin Padrick, ALL Liars, oh I allege they are lying assholes allegedly.

"

Liquidation Services

Posted:   Summit 1031 Obsidian Finance Complaint

Obsidian Finance Group, LLC

Complaint Rating:  0 % with 1 votes
Contact information:
Obsidian Finance Group, LLC
10260 SW Greenburg Road
PortlandOregon
United States
Phone: 503-245-8800
obsidianfinance.com
I have been dealing with a company, Obsidian Finance Group, LLC, and their Senior Principal, Kevin Padrick who knowingly took advantage of a business, Summit Accommodators, Inc. dba Summit 1031 Exchange, that was having liquidity problems by selling himself and his companies, Obsidian Finance Group, LLC, services to them. He told them his company would help facilitate 1031 exchanges, fund the exchanges, and liquidate the assets for top dollar to earn their high hourly rates and 15% commission.

The shareholders of the company were not familiar with bankruptcy law because their company was not in danger of bankruptcy for the last 15 years. It was only when the real estate market collapsed that they found themselves with a liquidity problem. They couldn't get temporary loans, the could liquidate property, they couldn't get paid back on loans owed to them. However, when they declared bankruptcy, they still had $13.6 Million in the bank account.

Kevin Padrick, Senior Principal of Obsidian Finance Group, LLC, saw the cash in the bank and decided that a few million of the cash should be his. Instead of helping the debtor facilitate the exchanges and liquidate the assets, he and his company did nothing except stall and go to the other side (creditors' committee) with priviledged information (debtor's gave him) claiming he had done all the research and somehow convinced them to give him the job as Chief Restructuring Officer.

Originally, this was a bankruptcy that was a debtor in possession with a Chief Restructuring Officer (CRO) in charge of the restructuring efforts. Obsidian Finance was supposed to be working for the CRO. Obsidian Finance or Padrick did not communicate with the CRO or the debtors. Instead, they communicated with the creditors. All of a sudden, the Court said their needed to be a trustee and Kevin Padrick was appointed as bankruptcy or liquidating trustee.


The CRO had already figured out there was no Ponzi scheme and he was doing his job working with all the parties and liquidating properties. He approved $750K of sales before he was dismissed. Obsidian Finance & Kevin Padrick charged the bankruptcy estate $184K to get their Senior Principal the job of Bankruptcy Trustee. Then simply by transferring the remaining cash (cash not distributed to creditors) OR $6 Million, Kevin Padrick charged the estate 3% or approximately $1/2 Milllion for a simple bank transfer & money in checking when he got the job.

Then Kevin Padrick hired legal counsel, Tonkon Torp, to harass innocent people until they run out of money and energy and give up their interest in properties where they put their hard earned money in and have every right to still own that interest. Tonkon Torp is charging the estate $270K of which most is for services that bring no benefit to the creditors, but hike up their hours and legal fees earned. The more time they waste, the more money they are able to charge. Total charges between these 3 entities is almost $1 Million in just 5 months. The only amount of money they have brought into the estate is $10K. Pursuant to 11 U.S.C. Section 330 of the United States Chapter 11 bankruptcy code, (3) in determining the amount of reasonable compensation to be awarded to a Trustee or professional person, the Court shall consider the nature, the extent, and the value of such services, taking into account all relevant factors, including...


(A) time spent on such services (Who gets paid $184K to land a job)
(B) the rates charged for such services (Kevin Padrick's rate is $600/hour and all he does for the hourly rate is waste time, allege things without proof, and harass innocent people until they throw up their hands and give them their property)
(C) whether the services were necessary to the administration of, or beneficial at the time at when the service was rendered. (Who gets $164K to transfer money from one bank account to another???? The remaining is simply 3% of what was in the Summit 1031's bank account when Kevin Padrick took over the job as Trustee)
(D) whether the services were performed within a reasonable amount of time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed (Kevin Padrick makes it look like it is more complex than it is, he does nothing to make things move quickly, he ignores and loses offers on properties ($900K worth so far), and he has caused the majority of the delays in this case)
(E) with respect to a professional person, whether the person is board certified (Kevin Padrick is an attorney so he does fit this part of the code)
(F) whether the compensation is reasonable based on the customary compensation charged by comparably skilled practitioners (The attorneys are trying to finish the 1031 exchanges and the estate is paying for their learning curve...The attorneys have charged $125K more than a Qualified Intermediary would charge for the same work)

(4) (A) The Court shall not allow compensation for...
(i) unnecessary duplication of services (I identified almost 200K is for duplication of services)
(ii) (I) services that are not reasonably likely to benefit the debtor's estate (Kevin Padrick knows this is not a Ponzi scheme and there was not any Embezzlement, but he is trying to use this to drum up claims against innocent third parties. The fees that have been charged to go after innocent third parties is $111K. By the time everyone figures out there was no Ponzi Scheme or Embezzlement, Kevin Padrick will be $6Million dollars richer and on his way to benefit from someone else's misfortune. He has only netted the estate $3K, but has charged the estate almost $1Million. How is this benefitting the creditors? It seems that it is mostly profitable to Kevin Padrick, Obsidian, and Tonkon Torp for providing absolutely no value to the estate)
(ii)(II) necessary to the administration of the cased (This if for the Court and/or US Trustees Office to determine)

On 7/2/09, I filed an objection to these fees. To view this objection, go to http://www.summit1031bkjustice.com/?page_id=1196.

There is also a taping of Kevin Padrick & Obsidian Finance's presentation to interested parties and shareholders included on this site at http://www.summit1031bkjustice.com/?page_id=254.

At this presentation Kevin Padrick does not want us to take notes, does not tell us who sent him to the creditors' committee, and does not tell us how he is going to bring value to the estate. From this presentation, it is difficult to tell what type of professional competence would warrant costing the estate $1 Million in Attorney and Professional Fees."


Source
http://www.complaintsboard.com/complaints/liquidation-services-portland-oregon-c225742.html
NOT my Post above and posted BEFORE I ever heard of Kevin Padrick.

Tuesday, March 25, 2014

"The debtor hired Plaintiffs Obsidian Finance Group, LLC and its principal, Kevin Padrick, in connection with a potential bankruptcy. After the debtor filed its chapter 11 bankruptcy petition, the Bankruptcy Court appointed Padrick as the chapter 11 trustee. "

Folks, now the Title of this Blog Post is in the Top Ten search for "Obsidian Finance Group".
So why is there no investigation into the Summit Bankruptcy and what sure looks to clearly be violations of Bankruptcy Code?

Investigative Blogger Crystal L. Cox CONTINUES to Allege that it is Not Legal to be "hired by the debtor" in regard to a "potential" bankruptcy, another words an "insider", the way I understand it, and then work AGAINST your clients you were under contract with and be a Trustee

Keep in mind there never needed to be a Trustee, as liquidation was underway.

And there are documented emails between parties, including the Department of Justice that flat out say it is NOT in the Creditors best interest to have a Trustee.

Also keep in mind, that the "debtor" that hired Obsidian Finance Group went to or is going to PRISON due to the actions of Kevin Padrick and Obsidian, in my opinion setting up their own client so they could run away with the LOOT that really should have went to Creditors right away.  Summit was hired Obsidian to help them restructure debt as per the signed contract between Summit and Obsidian that is an Exhibit on the docket of my case Obsidian v. Cox.

Also keep in mind per the testimony of Patricia Whittington, who actually signed Kevin Padrick's name to the now infamous contract between Obsidian and Summit, she believed that Obsidian was hired to liquidate Summit and well seems to not understand the contract said Obsidian was to help restructure debt and not destroy, bankrupt and jail their own clients.

More on that story
http://obsidianfinancesucks.blogspot.com/2012/10/the-summit-bankruptcy-was-debtor-in.html

A Bit on Bankruptcy Code
http://obsidianfinancesucks.blogspot.com/search?q=1104

"Regarding Bankruptcy Code 1104(a). There was no lawful, ethical reason to appoint a Trustee in the Summit Bankruptcy, it was common knowledge with parties, attorneys, US Trustees, that it was NOT in the Best Interest of the Creditors to Appoint a Trustee, Yet Judge Randall Dunn pushed the US Trustee's Office to Do So Anyway. And US Trustee Pamela Griffith went along with it, I believe, because she had worked for and with Leon Simson of Tonkon Torp and Kevin Padrick of Obsidian Finance Group on prior "deals".

http://www.law.cornell.edu/uscode/text/11/1104
The Appointment of a Trustee was a Documented FACT that it was NOT in the Best Interest of the Creditors Period.

Here are insider emails from Sussman Shank Susan Ford to Steven Hedberg Perkins Coie, and including Kevin Padrick, Ewan Rose, Ryan Norwood, and Patty Whittington of Obsidian Finance Group. And Jeanett L. Thomas of Perkins Coie, Tom Stilley of Sussman Shank, Terry Vance CFO.
http://www.docstoc.com/docs/118821982/Emails-from-Sussman-Shank-Susan-Ford-to-Steven-Hedberg-Perkins-Coie

Also Keep in mind in regard to Bankruptcy Code 1104(a), I Believe that Kevin Padrick of Obsidian Finance Group was not a disinterested trustee as in section (b)."

Source
http://obsidianfinancesucks.blogspot.com/2012/10/during-obsidian-v-cox-trial-kevin.html

Why am I still Yappin' about this?   Well because I still have a 10 Million Dollar lawsuit PENDING for one. For two, Kevin Padrick, David Aman and Obsidian lied to reports, lied about an Attorney General Investigation, lied about being extorted and have broke the LAW, yet they have made me, Crystal Cox look to be the Evil One, the Bad Guy, when in TRUTH I was exposing their true and correct actions in the Summit Bankruptcy to the best of my ability based on massive amounts of information I read and did not make up to extort the evil assholes and they knew as they interviewed my main source 3 years before suing me.

Here is the Article the Title came from, pretty much PROVES that there is FOUL Play, So why NOT investigate the Summit Bankruptcy or Obsidian instead of Targeting the Messenger exposing them, Crystal Cox? Hmmmm

"Citation:  No. 12-35238 / D.C. No. 3:11-cv-00057-HZ (for publication)

Ruling:

The Ninth Circuit reversed and remanded for new trial the District Court’s granting judgment in favor of the bankruptcy trustee against a blogger on one count for defamation, and affirmed the District Court’s dismissal of all remaining defamation counts based on First Amendment protected speech.

Procedural context:

The District Court entered judgment against the defendant blogger on the one remaining count for defamation, and dismissing all other defamation counts.

The judgment awarded the plaintiff trustee and his firm $1.5 million and $1.0 million, respectively, in compensatory damages. Defendant blogger appealed the judgment, and plaintiffs filed a cross-appeal of the District Court’s dismissal of all other causes of action.

Facts:

The debtor hired Plaintiffs Obsidian Finance Group, LLC and its principal, Kevin Padrick, in connection with a potential bankruptcy. After the debtor filed its chapter 11 bankruptcy petition, the Bankruptcy Court appointed Padrick as the chapter 11 trustee. 

Following Padrick’s appointment, Defendant Crystal Cox commenced publishing blog posts on various websites accusing Padrick of criminal and wrongful conduct including, inter alia, fraud, corruption, money-laundering, deceit on the government, tax crimes, and fraud against the government. Plaintiffs filed a defamation suit against Cox.

The District Court dismissed all but one of the Plaintiff’s claims holding that Cox’s blog posts were expressions of opinion and, therefore, protected under the First Amendment. On the Plaintiff’s cross-appeal, the Ninth Circuit noted that while opinions are protected speech, a statement that “may . . . imply a false assertion of fact” is actionable.

Applying a three-prong test to determine if a statement contains an “assertion of objective fact,” the Ninth Circuit determined that the District Court did not commit an error in dismissing all but one of the defamation causes of action.

Addressing the remaining count on which the District Court entered judgment in favor of the Plaintiffs, the Ninth Circuit ruled that Plaintiff Padrick was not a “public figure,” and because Cox’s blog posts addressed “matters of public concern,” Cox could not be liable for defamation unless she was found to have acted negligently. Further, “presumed damages” could not be awarded unless Cox was found to have acted with actual malice.

Since the District Court failed to instruct the jury accordingly, the Ninth Circuit reversed the judgment in favor of the Plaintiffs and remanded the case to the District Court for a new trial.

Judge(s):  SMITH, ALARCĂ“N AND HURWITZ, Circuit Judges."

Source of Above Quote
http://volo.abi.org/obsidian-finance-group-llc-v-cox



More on the Crystal Cox Case

http://www.crystalcoxcase.com/

https://www.facebook.com/pages/Ninth-Circuit-Crystal-Cox/1427423480823829

http://ninthcircuitcrystalcoxappeal.blogspot.com/

Archive of Stephanie Studebaker Deyoung's Blog
https://web.archive.org/web/20140207180322/http://www.summit1031bkjustice.com/

Monday, March 24, 2014

Crystal Cox Extortion; When did, and how did EXTORTION become part of the 10 Million Dollar Lawsuit Filed against Blogger Crystal Cox





Hearing Transcript Day Before Obsidian v. Cox Trial
http://www.docstoc.com/docs/117804185/Obsidian-Finance-Group-Vs-Crystal-Cox-Hearing-Day-Before-Trial

David Aman, Tonkon Torp Law Firm, Deposed Stephanie Studebaker DeYoung 3 YEARS before he Sued Blogger Crystal Cox. David Aman knew and knows that Crystal Cox never had actual malice, and in FACT was simply "reporting" the story that others were posting online, and had been for 3 years.

David Aman of Tonkon Torp is the Attorney for Kevin Padrick and Obsidian Finance Group. Who Crystal Cox alleged was part of the Summit Bankruptcy Corruption, as was other Tonkon Torp attorneys such as Leon Simson who was connected to Pamela Griffith, Department of Justice Trustee, and Steven Hedberg of Perkins Coie, who allegedly all worked at Miller Nash together and in other law firms over the years.

Here is the David Aman Deposes Whistleblower Stephanie DeYoung and asks about the "intentions" of Blogger Crystal Cox.



Eliot Bernstein Interviews Whistleblower Stephanie DeYoung
While Hospitalized against Her Will by her Husband Bret DeYoung.

Part One



Part Two

 

Saturday, March 8, 2014

"SUMMARY OF ACTIONS TAKEN BY THE TRUSTEE AND COUNSEL VIOLATING PROVISIONS OF SEVERAL OREGON LIMITED LIABILITY COMPANIES RESPECTIVE OPERATING AGREEMENTS"

"EXHIBIT F

SUMMARY OF ACTIONS TAKEN BY THE TRUSTEE AND COUNSEL VIOLATING PROVISIONS OF SEVERAL OREGON LIMITED LIABILITY COMPANIES RESPECTIVE OPERATING AGREEMENTS

A) History of Corney Investors, LLC (“Corney”), and Padrick, Obsidian, and Tonkon Torp’s attempt to take governance rights away from existing Managers and Members

History
June 10, 2005 Corney Investors LLC is formed.
Corney Investor LLC is managed by VSN Properties LLC (“VSN”).
March 31, 2009 VSN resigns and all members agree to Larry Sirhall becoming the manager.


Attempts by Trustee to take governing rights away from existing Manger
On May 26, 2009, David S. Peterson (“Peterson”) sent Corney members a memorandum of action of the class “A” member of Corney removing the current manager, Sirhall, and appointing the Trustee as the manager of each company. (Exhibit F1)

Trustee Seizes LLC’s Bank Account
On June 25, 2009 Corney members learn that Obsidian (apparently acting at the instruction of Padrick) seized Corney’s bank account and sent a letter to Corney’s tenant directing him to hereafter make all payments directly to Obsidian. These funds are held by the LLC as reserves to pay for the taxes, insurance, maintenance and upkeep of the real property held by the LLC.

 Corney Interested Parties did not approve this distribution of the LLC’s cash to the Trustee in his role as liquidating trustee of debtor’s bankruptcy.

 This money belongs to the LLC and the other 10 Interested Parties who are not the debtor. Since the Interested Parties are not a debtor in this case, their money should not be used to pay for the claims against the debtor. More importantly, the Trustee as an assignee of VSN’s interest in Corney had no rights under the operating agreement to take any such actions.

On June 26, 2009 Opera emailed Peterson regarding the violation of the LLC’s operating agreement. (Exhibit F2) The violations are as follows…

Section 6.1 of the Operating Agreement of Corney provides that a member cannot transfer its membership interest in Corney without the consent of a majority of the members of Corney, and that any such transfer will not entitle the transferee to “become or to exercise any rights of a Member.”

 Section 6.1 provides further that, during a five-year “Option Period,” the transferee is not “entitled to any rights as a Member of the LLC,” and will be entitled to receive only the distributions and allocations of Corney profit and loss to which the transferor would be entitled, until such time, if ever, that the option to purchase described in Section 6.1 is exercised or the transferee is admitted as a substitute member.

 Accordingly, Padrick as VSN’s assignee is not entitled to vote as a member of Corney and is not entitled to exercise any management rights under the Operating Agreement.

 Governing Oregon law is consistent with this result. See, O.R.S. 63.259…VSN has committed a number of material breaches of its fiduciary duties to the members of Corney, including, without limitation, the rendering of inaccurate and misleading accountings to the Corney members and the misappropriation of Corney funds, to the detriment of the members of Corney, which preclude VSN from acting as manager of Corney or asserting any management rights.

 Based upon the foregoing, Corney, acting through Sirhall, believes that VSN has no management rights and, therefore, that Padrick cannot act as the Manager of Corney.

B. History of Klondike Point LLC (“Klondike”), and Padrick, Obsidian, and Tonkon Torp’s attempt to take governance rights away from existing Managers

History
January 1, 2005 Klondike is formed to own and operate a commercial building in downtown Bend.
Initial managers are Studebaker and Larkin.

On January 1, 2009 Larkin resigns as a manager, all members agree to Barb Tyler (“Tyler”) becoming a manager.

On February 10, 2009 a required capital call is made to all members.

By March 11, 2009 Studebaker and Tyler make their capital call requirements. Stevens, Larkin, Neuman did not make their capital call requirement.

Trustee Ignores Offer.

In accordance with the provisions of Sections 9.3, 9.4 and 9.5 of the Operating Agreement, on April 15, 2009, Windermere, acting on behalf of Ms. Studebaker, sent to Stevens, Larkin, and Neuman an offer to purchase their respective interests in Klondike. NO RESPONSE.

On April 20, 2009, Klondike’s business attorney sent to the Simson, by overnight mail, a copy of the purchase offer. NO RESPONSE.

On May 26, 2009, Opera sent an offer (Exhibit F3) to Simson from Studebaker to purchase the building owed by Klondike. Opera communicated to Peterson that the Trustee received the purchase offer about six weeks ago. He has not bothered to respond to the purchase offer.

 In accordance with the provisions of the Operating Agreement, request is hereby made that the Trustee, as the assignee of the defendants’ economic interests as members of Klondike, respond[s] to the Purchase Offer as promptly as possible, but in no event later than June 11, 2009.”

 Opera tells Counsel that “it has come to our attention that the Trustee has either ignored or rejected out of hand any and all offers that have been extended to him to purchase limited liability company membership interests of the four principals of the debtor. This appears to us to be a blatant disregard of the Trustee’s obligations to the debtor’s creditors…

The Trustee’s duty to maximize the value of the debtor’s estate for the benefit of the debtor’s creditors, the Trustee should act promptly to consummate a transaction in accordance with the provisions of the Purchase Offer. Otherwise, given the precarious state of Klondike’s financial affairs, the Trustee will run the very significant risk of losing all value on account of the debtor Members’ interests in Klondike.”

Trustee’s Counsel responded by saying the Offer submitted via mail on April 20, 2009 was LOST/MISPLACED.

In reviewing the detail of Tonkon Torp’s billings, Simson’s time and billings details shows that on April 22, 2009 there was a “Telephone conference with Mr. Padrick regarding REDACTED (.3); review offer to purchase Interests in Klondike Point LLC (.2); conference with Mr. Aman regarding REDACTED (.2)” (Exhibit F4) Simson’s time here totals 0.7 of an hour. Simson’s rate is $450/hour. Total charge to the estate $315. Other professionals have charged their time for this as well. Padrick (.3) at $600/hour is $180 and Aman (.2) at $325 is $65. Total charge to the estate to lose an offer is approximately $560 ($315 +$180+$65).

Trustee’s response to Studebaker’s offer was to take away governing rights from existing Manager’s.
On June 4, Padrick filed Articles of Amendment/Dissolution with the Oregon State Corporation Division (Exhibit) changing the company from being member managed to the LLC being manager-managed an action requiring consent of 60% of the members of the LLC pursuant to Section 4.2 of the operating agreement.. By reason of the defendants’ failure to make required capital contributions, as of April 30, 2009, the defendants’ had only 58.07% of the ownership interests in Klondike, and Studebaker and Tyler had 41.93% of the ownership interests in Klondike. Padrick signed the document as Manager of the LLC.

 As an assignee of Larkin, Stevens, and Neuman interests’ in the LLC, Padrick is not entitled to exercise any management rights under the operating agreement unless or until the remaining members vote to admit him as a member (Exhibit F5).

 The Oregon State Corporation Division told Studebaker that falsely filing documents with their administration is a CIVIL MISDEMEANOR.

On June 23, 2009 Aman emailed a response to Opera enclosing “copies of memoranda of action of the members of both Klondike and Century, removing the current managers of those companies and appointing the Trustee as the manager of each company.” (Exhibit F6)

In this same email, the “Trustee, acting as manager of both Klondike and Century” notified Opera that he was “terminated as legal counsel for either company, effective immediately”.

On June 26, 2009, Opera emailed Aman regarding the violation of the LLC’s operating agreement. (Exhibit F7)

Section 8.1 of the Operating Agreement provides that any transfer of a member’s interest in Klondike is “prohibited,” and that no member may transfer his interest in Klondike. Section 8.3.1 of the Operating Agreement provides that the transferee of a member’s interest will not be admitted as a substitute member without the unanimous written consent of the non‑transferring members. Such consent has not been obtained by the Trustee, and will not be given either by Studebaker or by Tyler.

Oregon law is clear that the debtor Members’ transfer of their interests to the Trustee allows the Trustee to have recourse only to the members’ economic interests in Klondike, and that the Trustee does not become, as a result of such transfer, a member in Klondike or obtain any right to participate in the governance of Klondike. See, O.R.S. 63.259. The Trustee has no greater rights with respect to Klondike than he has under the Operating Agreement and under applicable Oregon law. See, Butner v. United States, 440 U.S. 48 (1979).

Pursuant to the Operating Agreement, the Trustee is not entitled to vote as a member of Klondike, and is not entitled to exercise any management rights under the Operating Agreement. Governing Oregon law is consistent with this result.

C. History of CFalls Investors, LLC (“CFalls”), and Padrick, Obsidian, and Tonkon Torp’s attempt to take governance rights away from existing Managers

History
October 27, 2005 C Falls Investors, LLC, was formed.

CFalls was member managed with VSN Properties LLC acting as the Operating Member.
On April 20, 2009 there was a transfer vote to make Gross the new Operating Member of the LLC.

Attempts by Trustee to take governing rights away from existing Operating Member and the LLC, including approximately 44 other LLC Members

On May 26, Padrick filed a memorandum of action to take over as Operating Member.
On June 1, 2009 Opera received email from Rose requesting monies the LLC member uses to retain Opera for legal representation

Per the provisions of the LLC’s operating agreement, VSN Properties LLC is in default because of not contributing the capital necessary to maintain and complete the project agreed in Section 3.2 of the operating agreement and the majority of remaining members can vote at any time to elect a new Operating Member pursuant to Section 4.1. Also under Section 8.1 the Trustee has no rights as a member, being merely an assignee of another member interests’ and having not been admitted as a member by the remaining members.

D. History of Century & Padrick, Obsidian, and Tonkon Torp’s attempt to take governance rights away from existing Managers

History
The company was formed October 4, 2005.
Initial managers are/were Studebaker and Neuman.

On 2/12/09 Studebaker spoke with Padrick about the cash deficiencies and negative equity to the estate resulting in ABSOLUTELY NO ASSISTANCE AND NO COMPASSION FOR JIM HULL’S LOSS.

On 2/18/09 Studebaker sent all the information she had to Ryan Norwood of Obsidian, WITHOUT ANY RESPONSE. (Exhibit F8)

On or about July 31, 2008, Hull entered into a Tenancy in Common Agreement (“TIC”) with the company and became a co-owner of the property owned by the company.

Century needed cash and a capital call was made December 28, 2008 in the aggregate amount of $86,414.03, but only an aggregate of $8,473.90 was received by the LLC. The Trustee has made no attempt to pay the debtor’s shares of the capital contributions.

On January 1, 2009 Neuman resigns as manager and all members agree to Hull becoming manager.
On or about February 4, 2009, the property was listed for sale thru Fratzke Commercial Real Estate.

 Fratzke received offers between $1,000,000 and $2,650,000.

 The property was taken off the market because the highest offer was approximately $573,000 SHORT of paying off the debt obligations of the LLC.

On April 20, 2009 Opera sent an offer requesting the Trustee to, essentially, sign off or sign on to making the Shareholders’ capital call contributions.

10. June 15, 2009 Opera emailed settlement communications to Peterson including details of Century’s cash flow difficulties, the current value being short of the current debt obligations, and how there is no value for the foreseeable future for the estate. (Exhibit F3)

Trustee’s response to Opera’s communications was to take away governing rights away from existing Managers

On June 23, 2009, Aman emailed a response to Opera enclosing “copies of memoranda of action of the members of both Klondike and Century, removing the current managers of those companies and appointing the Trustee as the manager of each company.”

In this same email, the “Trustee, acting as manager of both Klondike and Century” notified Opera that he was “terminated as legal counsel for either company, effective immediately”. (Exhibit F9). The foregoing actions are in clear violation of Century’s operating agreement as follows…

Section 8.1 of the Operating Agreement provides that any transfer of a member’s interest in Century is “prohibited,” and that no member may transfer his interest in Century.

 Section 8.3.1 of the Operating Agreement provides that the transferee of a member’s interest will not be admitted as a substitute member without the unanimous written consent of the non‑transferring members. Such consent has not been obtained by the Trustee, and will not be given either by Studebaker or by Hull.

Oregon law is clear that the defendants’ transfer of their interests to the Trustee allows the Trustee to have recourse only to the members’ economic interests in Century, and that the Trustee does not become, as a result of such transfer, a member in Century or obtain any right to participate in the governance of Century. See, O.R.S. 63.259.

 The Trustee has no greater rights with respect to Century, or any other LLC interest he receives than he has under the Operating Agreement and under applicable Oregon law. See, Butner v. United States, 440 U.S. 48 (1979).

Pursuant to the Century Drive Mobile Home Park, LLC’s operating agreement the Trustee is not entitled to vote as a member of Century, and is not entitled to exercise any management rights under the Operating Agreement. Governing Oregon law is consistent with this result.

NINE PAGES OF ACTIONS BY THE TRUSTEE RESULTING IN NO BENEFIT TO THE CREDITORS OF THE ESTATE"

Source of QUOTE
http://www.summit1031bkjustice.com/?page_id=1687

Tuesday, February 11, 2014

Why So Many Blogs and OUTLETS to Expose Corruption?

To Ensure Accountability and Transparency in the Judicial Process at Every Level of Society

Wednesday, February 5, 2014

Hello Out There. Is it Fact, Fiction or Malice to ask the Obvious Question: Is it a VIOLATION of U.S. Bankruptcy Code to be "hired" by the "debtor" then to "after", be appointed the Chapter 11 Trustee?

Crystal Cox says Kevin Padrick and Obsidian set up, betrayed and violated the constitutional rights of their own clients. 

Crystal Cox says Kevin Padrick took privileged information from his clients, the "debtor" and used it against them to liquidate them and make 15% on each asset plus MASSIVE Legal Fees for 5 years, meanwhile using his media and court connections to make sure his clients are indicted and look "very bad" in controlled media. See with Summit going to Prison, Kevin Padrick has free reign over the real estate consumers money to do as he pleased for 5 YEARS. 

Crystal Cox believes that it is against the LAW to be an insider, working for the debtor, then to jump the proverbial fence, screw your client, violate contract law and be a U.S. Department of Justice appointed Trustee. 

Crystal Cox says that the Summit Bankruptcy should be VOID and all transactions put under extreme scrutiny and investigation by the proper authorities and auditors.


Another Article about my Ninth Circuit Win Discussing this Obvious Issue. 


"Facts: 

The debtor hired Plaintiffs Obsidian Finance Group, LLC and its principal, Kevin Padrick, in connection with a potential bankruptcy. 

After the debtor filed its chapter 11 bankruptcy petition, the Bankruptcy Court appointed Padrick as the chapter 11 trustee. 

Following Padrick’s appointment, Defendant Crystal Cox commenced publishing blog posts on various websites accusing Padrick of criminal and wrongful conduct including, inter alia, fraud, corruption, money-laundering, deceit on the government, tax crimes, and fraud against the government. Plaintiffs filed a defamation suit against Cox. 

The District Court dismissed all but one of the Plaintiff’s claims holding that Cox’s blog posts were expressions of opinion and, therefore, protected under the First Amendment. On the Plaintiff’s cross-appeal, the Ninth Circuit noted that while opinions are protected speech, a statement that “may . . . imply a false assertion of fact” is actionable. 

Applying a three-prong test to determine if a statement contains an “assertion of objective fact,” the Ninth Circuit determined that the District Court did not commit an error in dismissing all but one of the defamation causes of action. 

Addressing the remaining count on which the District Court entered judgment in favor of the Plaintiffs, the Ninth Circuit ruled that Plaintiff Padrick was not a “public figure,” and because Cox’s blog posts addressed “matters of public concern,” Cox could not be liable for defamation unless she was found to have acted negligently. 

Further, “presumed damages” could not be awarded unless Cox was found to have acted with actual malice. Since the District Court failed to instruct the jury accordingly, the Ninth Circuit reversed the judgment in favor of the Plaintiffs and remanded the case to the District Court for a new trial."

Source; 


More on this Bankruptcy Cox Issue;