It has come to my attention that Marc Randazza (http://randazza.wordpress.com/2012/04/02/new-york-times-chimes-in-on-the-crystal-cox-story/) has been obsessed with a blogger fight with Crystal Cox.  He seems to be getting old posts off of my blog that were deleted a long time ago and posting them on his blog.  Not sure how this works, but I thought when you delete a post it does go away.  I am wondering if he is getting this information from Kevin Padrick or David Aman. 

Anyway, I commented on his posts regarding these deleted posts, but he decided to not allow them to show up on his blog.  So, I will put them here on my blog…

1.  Stephanie DeYoung says:

Your comment is awaiting moderation.

April 4, 2012 at 8:06 am

Dear Author,

It is nice that you have used an old post of mine that I have removed. My post was in part true and in part emotionally based. You see, Crystal was fighting for me because my family had me hospitalized because I had a manic episode after fleeing for my life from Kevin Padrick of Obsidian Finance and David Aman of Tonkon Torp. They had harrassed me, bullied me, and took all my investments using tactics such as freezing bank accounts, filing court proceedings, making false accusations in the newspaper and in the court documents, making me do a deposition before any of the Summit 1031 Accommodators owners had to, making me do a 2004 documentation request, ignoring my rights in my ownership in various properties, etc. While trying to fight for my rights, they played their attorney games with my attorney’s making my attorney bills huge. I finally ran out of money to fight for my rights, so they got my properties by me filing for bankrupcty so they couldn’t keep coming after me. They simply took my children’s investment illegally, but again I have no money now to fight it and even if I did, it wouldn’t be enough because Kevin Padrick has way more money and resources, that no justice could ever be found.

So Crystal attacked my family because they hospitalized me in a total innappropriate manner and I believe there was some other powers higher up that contributed to the way things went down. Anyway, I removed the post you have here on this blog because after I was done being angry at everyone including Crystal, I realized it was emotionally charged and without merit.

I wish you would get the story straight on who the true predator is.

Sincerely,
Stephanie Studebaker-DeYoung

2.  Stephanie DeYoung says:

 Your comment is awaiting moderation.

April 4, 2012 at 8:54 am

 Since this story is not transparent and there has been no real investigation into the matter, I have let the public see my original blog on this story. I took it down because I wanted nothing to do with Kevin Padrick of Obsidian Finance, but somehow he has convinced the media that he is this good guy who has been damaged. He is not anything close to good. He is a vulture who waits for his kill to die and he takes all that he can. The blog that originated this story was my blog. You can read it at http://www.summit1031bkjustice.com.

 Crystal Cox based much of what she wrote on either what I told her or what was on my blogs. She fought for the victims in this case and that seems to be forgotten. She did this for no money at all.

 Kevin Padrick was originally hired on as a consultant (not the highest paying job). He took Summit’s financial information to the creditors (other side and definite conflict of interest) without anyone’s direction to do so but himself. He has not proven otherwise. That manuever made him approximately $6.5 Million as Trustee of the bankruptcy – a much higher paying job. Like he didn’t know exactly what he was doing when he made false promises to the Summit Accommodator’s shareholders when he was selling his consultant services to them in their time of need.

 Maybe Someone Should really get the FACTS straight here.

 Thanks,
Stephanie DeYoung

 Do They Teach Attorneys to Lie In Law School????

Marc Randazza put a video on his blog saying these posts were from Crystal Cox and that is why he did not allow them to be published on his blog, but Marc Randazza is a LIAR.  He emailed me right after I made the above comments….The blue type is my response to his email below…

 You are just like all the media folk.  Talk about the nut jobs to divert the publics’ attention to the real corruption happening in our country.  I wouldn’t expect anything less.  However, this crackpot as you call Ms. Cox does write on my story and the stories of many, but that doesn’t make my story a joke.  My blog is my story, the truth, and not a joke no matter how anyone else reiterates it.  If someone reads my blog, they will either get it or hate it.  I don’t care.  It is my story and not a joke.  You see no matter what you media people do to divert peoples’ attention from the scamming going on in our bankruptcy system and basically every other governmental based system we Americans have, we the people are not all blindly falling for it.  If you are not part of the solution, you are part of the problem and that seems to be good with you because you think it is news and you play the media game – right or wrong – you really don’t care about much at all.  Don’t worry you have many friends in your business who are the same as you.  No heart, just news to divert attention away from the real bad guys.

 Please don’t email me back as I have no more time to waste on typical news reporters.

 Ms. DeYoung,

  I see your point.  I take no position on the facts of your particular case.  I do not know Kevin Padrick.  The story, however, is no longer about Summit, Kevin, or Obsidian.  

 The story is about Ms. Cox and how she is, as you described her, an “internet predator.” 

 I realize how frustrating it must be for you that Ms. Cox has changed the narrative of the story from one about Kevin to one about her.  But, that’s what her behavior has done.  None of us writing about this matter really are interested in anything that Obsidian might have done.  It isn’t that we don’t care about corruption.  We most certainly do.  But, Cox is the story — not Obsidian.   

  Even if what Cox says about Kevin is true, the way she does it is beyond unethical.  When you want to get a message out, you say your message and see how the marketplace of ideas reacts to it.  As you can see, the marketplace of ideas has embraced the story that Crystal Cox is a nutcase and a sleazy predator.  Nobody had to “google bomb” her to spread that word.  Nobody had to register hundreds of domain names with her name in it to do that.  If the story about Padrick was compelling enough, other people would have talked about it.  The way Cox did it destroyed all credibility of the criticism of him.    

  Lets just presume for a moment that everything you have to say about Obsidian is true.  Here’s the problem — when a complete crackpot like Cox starts screaming your message, everyone thinks that your message is false.

  Finally, even if Kevin Padrick is a horrible person, Cox is demonstrably and provably worse.  They say “don’t shoot the messenger,” and I agree with that.  But, when the messenger is a twisted and insane troll, you don’t shoot the messenger, you just turn your back on the messenger.  

  The fact is, nobody cares if Kevin Padrick is corrupt or not.  Cox made sure of that.  Now, all anyone cares about is showing the world what a nut she is.  

  I would be very interested in speaking to you about this more.  Feel free to give me a call.  

  ________________________________________
Marc John Randazza*
Randazza Legal Group
6525 West Warm Springs Rd. Ste. 100
Las Vegas, Nevada 89118
Toll Free: 888-667-1113
email: mjr (at) randazza (dot) com
eFax: 305.437.7662

On March 19,2010, I was interviewed by the local FBI agent and local IRS agent. I asked them what they were trying to do with this Summit 1031 bankruptcy case where 200 people lost their money through the US Bankruptcy Court?

They said they don’t know about what goes on in the Bankruptcy Court. Only a few understand the bankruptcy law. That is not their forte. Besides, that is not what Congress is telling them to investigate. They were given the job to TARGET the Summit 1031 Principals, indict them, and seek restitution. They claim this is how they will find justice for the exchangers. They claim this is what the 200 victims are asking for.

Here is where I run into a wall over and over again because the math does not add up.

Summit 1031 Assets on 12/19/08 (Time of Filing Chapter 11 – Debtor In Possession Bankruptcy)

Cash                                                               $14 Million

Bond                                                              $10 Million

E&O                                                                $3 Million

Note Receivable Steve White                        $1.2 Million

Notes Secured by Real Property

and Summit Principal Real

Property Investments                                     $11.5 Million

Summit Principal Interests’

In Business Interest                                           $1 Million

Amount Summit Principals

Voluntarily Transferred to

BANKRUPTCY ESTATE                             $40.7 Million

Summit Settlement                                    $16.8 Million

OK – So the Summit Principals transferred $40 Million in assets to the Bankruptcy Estate. Now, even though the $40 Million was all they had, they now owe $16.8 Million More.

So even though all the value EXISTS, nobody even acknowledges it. I said the money is there, it is in the Bankruptcy estate. They say that is not their expertise and it doesn’t matter if the money is in the bankruptcy estate, because the Exchangers are angry with the Summit Principals.

The agents I spoke to say that they know that the restitution will not come close to amounting to what is owed to the Exchangers, but they are SURE that is what the exchangers want. They want indictment and they want their money. So the IRS and the FBI say don’t you worry, we will indict and we will get restitution. What does this really mean?

I said do you know how long it will take to pay the exchangers back if your only TARGET is the Summit Principals who will be paying the price for a third time?  The system is  seeking restitution and assets over and over again from the same people. Each Summit Principal is around 55. They have about 10 years each of working age. Let’s say they each make $60k per year for 10 years – $600K times 4 worn out old guys equals $2.4 Million. Take away 33% for taxes = 1.6 Million. This won’t even come close to paying the Settlement they already owe to the Summit Bankruptcy Estate. It just makes a tiny dent. Oops, I forgot, they are going to jail, so never mind the 1.6 Million in restitution. Instead these guys are sitting in jail.

Is this the answer the FBI is giving the angry exchangers? Do they tell them where the money is? No, they don’t have anything to do with that money. The bankruptcy court has that money and that is really none of their business. They don’t work together to get your money back. They don’t even understand that you really would like your money back. They just understand you are angry.

I understand your anger. I wish the Summit Principals had been more forthcoming with me about what kind of risk they were subjecting me to. I thought I had solid partners in common real property interests, just like the other 105 innocent parties who are losing their property interests to the bankruptcy court. You thought your money was safe and sound at the bank. They should have been forthcoming with telling you what they were doing with exchanger monies. Their exchanger agreement said the monies were deposited into deposit accounts. They didn’t say that they were going to invest 25% of those funds in short-term real estate backed loans.

Who else wasn’t forthcoming with what they were doing with your money? Is the Government forthcoming with what they are doing with your money? Is Wall Street forthcoming with what they are doing with your money? Are the Banks forthcoming with what they are doing with your money? Is Kevin Padrick forthcoming with what he is doing with your money?

I have to say there are many organizations not being forthcoming about what they are doing with your money. Luckily for the Exchangers (sort of I guess) they have the FBI and the IRS making sure they take down the Summit Principals who were not forthcoming with what they were doing with your money.

Well what about the organizations that are not monitored by any agency?

Both the IRS agent and the FBI agent said they don’t know what organization monitors the Justice System. Apparently, we must voice our concerns with these HIGH POWER/HIGH PROFIT agencies via our Congressmen (Jeff Merkley and Ron Wyden). So I will write a letter describing the wrong doings I believe have been conducted in the name of justice.

Your anger with the Summit Principals just helps Kevin Padrick keep up the facade. While you jump on board the anger train, Kevin Padrick and Company (Obsidian Finance) and legal counsel, Tonkon Torp have FREE REIGN on what to do with the $40.7 Million they have in assets the Summit Principals gave up to help pay you back.

By the time our FBI agents get through their investigation process, indictment process, the court proceedings, and whatever else is in the schedule of the ONE goal the FBI and IRS have to TARGET & INDICT. Somehow this is supposed to make you feel better about losing your money. In the meantime, I know Kevin Padrick has your money and is able to do whatever he wants with it. Our Justice System just willy nilly handed your money to a self-indulgent, self-interested, CORPORATE RAIDER.

And everyone is OK with this I guess. Problem is that there are many like Kevin Padrick in every organization and every system. Our MEDIA is not talking about this, our President is not talking about this, our Governing Agencies are not talking about this.

We spend a lot of time tearing people down in the media which keeps our focus on issues that aren’t really important in the big picture of harmony, being humanitarians, and righting the wrongs.  Instead, our Media, has a hay day taking down people, like Tiger Woods because he is a human being.  You forget how many years of beauty he brought to us with his amazing Golf Game.  We don’t even remember this and this was his gift to us.  When he needs us to be compassionate and forgiving, we throw him down the drain.  I am ashamed of this behavior.  This is not the American Way and it isn’t the HUMAN way.  It is simply the F*d up way!!! 

We put no value on their intent. We put no value on their desire to right their own wrong. We put no value to the victims losses. Our agencies take care of their own, help TARGET the ones they can get their hands on – mostly those of us who have no power and no money. Do we care?

The agents initially assume that I don’t care about the rights of you exchangers because I am screaming at the top of my lungs about where your money is and what the person who is in COMPLETE CONTROL of your money is doing. I suppose I come off angry, but I am not angry – I am passionate about righting the wrongs. I have lots of sadness around the many victims of all the money deception going on. If you are taking care of some one’s money you should do so with extreme care. Just like our Government should not be taking our tax dollars and dumping the funds into the same institutions that caused the economic collapse and we are OK with this?

Why aren’t we angry at the deception everywhere – on every level.

You know when everybody knows there is a problem, but nobody is talking about it. It reminds me of the big elephant in the living room of a dysfunctional family situation.

Well I didn’t love my visit with the IRS agent and the FBI agent because it showed me another level of our Nation’s brokenness. I left there a broken hearted. Why? Because we really have NO HOPE if we rely on our servants and our systems to protect us in any way, shape, or form. They have no idea how to protect the masses and I don’t believe they are working with your best interests in mind and there are CONFLICTS OF INTEREST everywhere you find MONEY.

There was a moment of clarity in all of this. If WE THE PEOPLE don’t start waking up to the betrayal that is everywhere then we will lose the war

12/19/08 – Summit 1031 Press Release

“Vance as CRO of the Company has retained Obsidian Finance Group, LLC (“Obsidian”) as financial consultants to provide advice with respect to all tax issues affecting Summit Customers and a plan to mitigate damages to the maximum extent possible of currently unfunded exchanges. In addition, Obsidian has been retained to review substantial real estate investments and recommend the best method to realize value of such investments to satisfy claims. Obsidian is a national financial consulting firm, which specializes in distressed enterprises and assets.”

link: Press Release – Written by Susan Ford at Sussman Shank.

In Bullet Points – Sequence of Events

• Early 12/2008 Summit Principals see a liquidity crisis coming in two or three months.
• Early 12/2008 Principals meet with Susan Ford at Sussman Shank.
• Early 12/2008 Susan Ford recommends Chapter 11 Debtor in Possession bankruptcy
• Early 12/2008 Susan Ford recommends Terry Vance to come in and run show as CRO
• Early 12/2008 Key Bend Developer refers Summit Principals to KEVIN PADRICK
• Early 12/2008 Padrick, owner of Obsidian Finance Group, meets w/Principals
• Early 12/2008 Kevin Padrick sells himself to Summit Shareholders.
• Early 12/2008 Summit principals give OK to hire Padrick and Obsidian. Obsidian Finance gets $100k
• 12/18/2008 Summit files Chap. 11- focuses on selling properties and investments to pay back creditors.
• 12/19/09 SUMMIT’S WEBSITE ANNOUNCEMENT – EXPLAINS OBSIDIAN FINANCE’S ROLE AS HIRED BY TERRY VANCE AS FINANCIAL CONSULTANTS TO SUMMIT ACCOMMODATORS INC. THEIR JOB WAS TO ADVISE ON TAX ISSUES, PREPARE PLAN TO MITIGATE DAMAGES, AND HELP LIQUIDATE ASSETS TO SETTLE CLAIMS
• Obsidian did not do the job they were supposed to do, instead they charged the estate to get a better job by working for himself instead of for Terry Vance.
• Late 12/2008 New Summit CRO Vance hires KEVIN PADRICKas approved by Summit Principals to help liquidate assets.
• Late 12/2008 Summit Principals provide Padrick with all financial information on properties
• 01/2009 & 02/2009 KEVIN PADRICK works with STEVEN HEDBURG more than Terry Vance to take Terry’s place. Not sure how this is working to help Summit???
• 02/2009 PADRICK SELLS HIMSELF TO THE CREDITORS’ COMMITTEE
• 2/10/09 – Sussman Shank and PERKINS COIE file a joint motion to replace Terry Vance as CRO with Obsidian Finance as CRO. In the document it says that Terry Vance was on board with replacing himself with Obsidian - Huh! Recordings & EMAILS show that Terry Vance was not on board and had not been communicated with.
• 2/11/09 – JUDGE RANDALL DUNN, KEVIN PADRICK, STEVEN HEDBURG OF PERKINS COIE, SUSAN FORD OF SUSSMAN SHANK AND MS. VIVIENNE POPPERL OF THE US TRUSTEE’S OFFICE DECIDE TO APPOINT A TRUSTE IN ABOUT 40 MINUTES. THE ALL WANT OBSIDIAN TO BE TRUSTEE. THEY ALL AGREE THAT THE PROFESSIONALS ARE CAUSING THE DELAYS, SO THEY WANT TO RESOLVE BY MUDDING IT UP WITH MORE PROFESSIONALS. Breaking their own code section 1104(a). RIGHT HAND COLUMN – 2/11/09 LISTEN TO HEARING
• 2/12/09 OBSIDIAN FINANCE & KEVIN PADRICK come to Bend to give us the Presentation instructed by the Judge at the 2/11/09 HEARING. The presentation was supposed to start at 10AM. This is when I set up the camera. Ryan Norwood and Ewan Rose were in another room. – RIGHT HAND COLUMN – 2/12/09 VIDEOS
• 2/12/09 KEVIN PADRICK was tardy bay about 40 minutes. He was having trouble landing his plane. You all know how that goes. So a lot went on in this 40 MINUTES. It is like a picture of time. WHAT HAPPENS AT THE 02/11/09 HEARING DOES NOT MATCH WHAT HAPPENS AT THE 2/12/09 OBSIDIAN FINANCE PRESENTATIONS.
• 2/12/09 WE LET THE US TRUSTEE’S OFFICE KNOW OUR CONCERNS.Terry Vance puts his name in the hat. US Trustee chooses KEVIN PADRICKas trustee because an entity cannot be a trustee.
• Result – Kevin Padrick got himself appointed trustee where he personally gets paid:

1) 3% on the assets (including $15 million of cash already sitting there- that’s a cool half million up front),

2) 15% on the on all liquidated assets, proceeds from bonds, and proceeds from actions against third parties.

3) 10% success fee for recovery of assets in excess of principal claims of $13 million. He also can choose to share a part of the success fee with his own attorney, Tonkin Torp.

4) His charge rate at $600/hour for all time spent being the trustee of the Summit Accommodators Liquidating Trust, and

5) His charge rate $600 and the charge rate of all other profesisonal services (including those from Obsidian) to pursue all third party claims, assets of principals and third party claims against financial institutions. Oh yes, that is right Kevin Padrick is not ACCOUNTABLE to anyone.

6) The agreement allows Kevin Padrick to pay his attorneys’, Tonkon Torp, hourly rates at $600/hour.

• PADRICK BLOWS OFF REAL PROPERTY OFFERS PRIOR TO THE PLAN CONFIRMATION BECAUSE HE DOESN’T GET THE BONUS PAY (15% AND 10%).
• Once plan is confirmed, Padrick sort of works at selling properties. More wastes time with lawsuits where he is accussing everyone of aiding and abetting. What does UMPQUA SAY ABOUT THIS?
• I have to find out fees but I think they are around $5 Million at this time. A year later and the situation has exploded from $13 Million in Claims to $40 Million in Claims.
• Creditors get change on the dollar of what they would have got if they Reorganization was handled with the Highest Fiduciary Duty.

My heart, mind, and soul have been taken a well needed rest from the drama that surrounds the Summit 1031 Exchange Bankruptcy.

Sharon Stevens is Brian Stevens’ wife. Brian Stevens was partners with my dad, Mark Neuman since 1989 (Both Summit 1031 Principals). I have known Brian and Sharon Stevens since I was 12. I babysat their first born child. Sharon Stevens played a major role in rallying my loved ones into hospitalizing me once I told her I was making a documentary about my experience in this bankruptcy case. As soon as I told her this, she was showing up uninvited to my house, having private conversations with my dad, and made the above phone call anonymously to Crystal Cox, internet blogger, two days after I was hospitalized (entirely due to Sharon Stevens shenanigans and the stress related to the bullying by Kevin Padrick because I called him out on his shenanigans).

Today I remained stunned at the way people behave and the extent they will go to keep their dirty secrets from getting out into the public. What dirty secrets does Sharon Stevens have to try to shut me up?? Not sure, but I do know that Brian Stevens lent $3 Million to Steve White without collateral. When pressured by his partners to collect this money, Brian financed his own properties and paid off about $1.8 Million. Steve still owes $1.2 Million plus interest, but Kevin Padrick doesn’t seem to be going after Steve White with the same fierce determination he has used to come after me, everything I owned, and now my freedom with an upcoming trial related to the videos I took and posted with Good Faith and following the letter of the law unlike some others we know.

Written by Joe Whitlock – http://joewhitlock.evonybuddy.com/

“Today many investors often exchange their investment properties to avoid paying federal and state capital gain taxes. This 1031 exchange often requires the involvement of a qualified intermediary or 1031 exchange company to avoid constructive receipt. Otherwise your transaction may not be qualified for 1031 tax-deferred exchange. The exchange company will keep all of the money from the relinquished property for up to 180 days while you are looking for a replacement property to complete the exchange. Many investors do not know these companies are in a business that is not regulated by both the Federal government and any of the 50 states. There have been petitions over the years to the Federal Trade Commission (FTC) to regulate the industry. However, the FTC declined the petition as recent as August of 2008. This means these exchange companies can use your money to invest in anything they want. They don’t need to disclose where they invest, what they invest or the risks of their investments. In September 30, 2008 State of California passed Senate Bill 1007 which provided some consumer protections for 1031 exchange investors. This bill prohibits exchange companies in California from

Comingling exchange funds with the operating accounts of the company.
Investing exchange funds in the manner that does not provide sufficient liquidity or does not preserve the principal.

There have been sad stories about exchange companies losing investors money in risky investments and then declaring bankruptcy. Investors can only recover a fraction of their money. On top of that, they may have to pay capital gain taxes because they do not complete the transaction within 180 days! For example:

On November 26, 2008, LandAmerica 1031 Exchange Services, a subsidiary of LandAmerica, a major provider of title insurance company, Landam.com, filed petitions for Chapter 11 bankruptcy protection. Investors had over $400 Million deposited with the company but its auction-rate securities were illiquid and worth much less.
On December 15, 2008 Summit 1031 Exchange, Summit1031.com, announced that it has ceased all funding of existing accounts. Its account balances were less than the $24.8M investors deposited. The author knew an investor in San Jose who deposited over $2.5M with this company. As of March 2009, he was able to recover just over $625K. How much more he can recover depends on the result of its assets liquidation.

So the risks are very real and it could happen to anyone. How do you avoid being a victim? To answer this question, you will need to understand a little bit about the exchange business. Most exchange companies make money by charging a fee per transaction. They in turn invest your money somewhere with higher returns, pay you low .5-1% interests, and pocket the difference. This is how exchange companies normally make most of the profits. In the case of LandAmerica, it put much of the customers’ money in high-yield auction-rate securities backed by federally-insured student loans. However, these securities have become very difficult to convert to cash due to the tight credit market. LandAmerica had to sell these securities for less than the value of the securities when the exchange customers need money to complete the exchange. As a result, it did not have enough money to cover its obligations and had to declare bankruptcy.

There are 3 main types of exchange companies:

Some exchange companies are just a division or subsidiary or an entity owned by an escrow or title insurance company. For example:
First American Exchange Company (FAEC), is a separate Limited Liability Company (LLC) owned by First American which is also in title & escrow business. FAEC occupies the same office and even has the same phone number as the First American Title office.
Old Republic Exchange, is a member of The Old Republic Title Insurance group.

Some banks also offer 1031 exchange services. For example:
Wachovia Securities Bank.
Bay Commercial Bank.
Comerica Bank.
Washington Mutual. Note: as of December 2008, Wamu does not accept new customers and is looking for a buyer for this division.

Companies that specialize on 1031 exchange. They could be a mom-and-pop company or a franchise with offices in many states. For example:
IPX, Inc.
Equity 1031, LLC.
Equity Preservation, Inc.

The fees charged by these companies vary from $200 to $750 per transaction. However there are different restrictions:

The company that charges low fee often does not pay interest on your fund or only pays interest if your fund is above a certain amount. If your sales proceed is significant, e.g. several hundred thousand dollars, you may save on the fee but may lose a significant amount on the interest payment.
Some companies charge higher fee, e.g. First American Exchange charges $750, but may allow you to make as many offers as you want. Each time your offer is accepted, the exchange has to review the contract, and wire the money to the seller’s escrow account.
During the economic downturn many big companies faced big losses and failed. You should choose an intermediary on 2 factors
The most important factor is which company can provide safety, security and timely disbursements of your funds. When the amount of money is substantial, e.g. several million dollars, this is even more critical.
Fees, interest rates, and staff competency should be a distant secondary requirement.

To ensure your money is safe, you should ask the exchange company if

Your money is FDIC-insured (Federal Deposit Insurance Corporation, a US government corporation created by Glass-Steagall Act of 1933). When it comes to deposit insurance of your bank accounts, FDIC insurance probably provides the best protection for your money. The account is insured up to $250K per customer. So if the exchange account is under both husband and wife’s names, it’s insured up to $500K. When you have more than $500K you want the bank to put your money in a Certificate of Deposit Account Registry Service, or CDARS account. Your money is deposited in multiple banks to be insured up to $250K per customer per bank for up to $50 Million. CDARS account is a CD account so you probably want a short term CD to make sure you don’t pay penalty for early withdrawal. An intermediary may advertise that it carries $100M in fidelity bond. However, this bond is intended to protect the company against theft or embezzlement, not investment losses. It may also say that your account is guaranteed by the assets of its publicly-traded parent company. However, this guaranty does not mean much if the company has more liabilities than assets.
Your money is deposited in the operating (comingled) account or separate account under your name. When the money is in the operating account, the exchange company can use it for anything; e.g. pay salary for its employees or invest in the stock market in China. In addition, the money in the operating account belongs to the company. Should the company declare bankruptcy, it’s harder to prove whether the money in the account is your money. On the other hand, the separate account is your account to keep your money for your own use. Should the company declare bankruptcy, it’s easier and faster to recover your money from your separate account. The fact your money is in a separate account does not make your money safer, just easier and faster to claim it’s your money. Normally if you don’t say anything, your money is deposited in a general account.
The separate account is called trust account if the exchange company is a subsidiary or a division of a bank. The account name should be something like “John & Jane Smith Trust Account” with your tax ID. This trust account is regulated by the government and the exchange company cannot use money for its business.
The separate account is called segregated account if the exchange company is a subsidiary or a division of a title company. The account is under your name and tax ID. This account is not regulated by the government. The exchange company can still invest in the way as other non-segregated accounts if you don’t specify anything.

Where your money is invested, e.g. money market. Again, since this is an unregulated business, it does not need to provide you a prospectus and does not necessarily need to invest in where it says it does. If the money is invested outside the US in which you probably don’t know anyway, there may be a delay from the time you request your money to the time you actually get it.

Conclusion: when you choose an exchange company, you should consider its fees, services, and most importantly the safety, security and timely disbursements of your funds. You should consider an exchange intermediary located in California in which your account is FDIC insured.”

Tonkon Torp told my attorney, Matthew Goldberg, that Kevin Padrick  would not Standstill on his actions against me and my real estate investments.  I believe Kevin Padrick would not STANDSTILL on any actions related to his desire to take my interests in these Real Estate investments, even though a conflict that existed and supposedly they are supposed to help resolve these conflicts.    I am now sharing this PRIVILEDGED INFORMATION.  By doing so I am subjected to them coming into any area of my life they want to come into according to my attorney.  I have been afraid to do this, but why???  They have come into every area of my life already.  Nothing stops them.  I can no longer be fooled by their so-called protective advise and proceedures.  None of their suggestions of protection work in the REAL WORLD.  All of this is for your information.  It isn’t doing anything sitting in my email box.  So I give it to you…

From Black Eyed Peas Song – One Tribe

“If I had an enemy to {enemy}
If I had an enemy to {enemy}
If I had an enemy, then my enemy is gonna try to come and kill me
Cause I’m his enemy

1. 08/20/09 – Summit Accommodators – reset of evidentuary hearing/expedited hearing!
2. 08/20/09 – Filing a lawsuit against Kevin Padrick.
3. 08/26/09 – Status of Matthew Goldberg Costs for representing me at my desposition, representing me in the Objections to FEES hearing, and representing me in my law suit against the liquidating trustee.
4. 08/26/09 – Yes! Official Vindication.  DO NOT POST THIS TO YOUR SITE. 
5. 08/26/09 – Lane Lyons as expert witness at hearing on objection to fees.
6. 08/27/09 - Issues for fee objection – Communications between Mark Neuman and Matthew Goldberg.
7. 08/27/09 – Matt Goldberg on Suing the Trustee.
8. 08/27/09 – Terry Vance & Mark Neuman subpoenas.
9. 08/31/09 – Objection Hearing Prep.
10. 08/31/09 – LLC’s that Stephanie Studebaker-DeYoung has an interest in.
11. 09/01/09 – Fee Hearing-Related Questions.
12.  09/01/09 – Unrecognized legal document #554 – Kevin Padrick’s Supplementary Response to his response to my objection to fees already submitted to the court (Doc 551). 
13. 09/02/09 – Lane Lyon’s Hearing Appearance.
14. 09/03/09 – Is  the Court really that BIASED against the Summit Principals (shareholders)?
15. 09/04/09 – Emails I have with Terry Vance around 6/27/09 – the ones in Ex. E and D.
16. 09/08/09 – Exhibit Spreadsheets.
17. 09/09/09 – Your fees so far are much more than I predicted and we haven’t even stepped into the 1st Courtroom.

Saturday Morning Cartoons – My boys love cartoon and I was watching the newer cartoon called “Star Wars: The Clone Wars.”  It looks like a Senator was fighting for the Freedom of all and what do you know – Someone poisoned him.  After he was buried, Princess Lea was ordered to the Emperor’s chambers.  She got to be HARANGUED by an Lietenant.  The Lieutenant is investigating the murder of the Senator.  He notifies her that she is a primary suspect to her friend, the Senator’s death.  Of course she was Questioned about this.  “Princess Lea, did you Poison your friend?”.  After being barraded with a few more violating questions about her friends death.   He didn’t really ask, he stated it like it was the GOAL of the Senate to get a fall guy.  Well that fall guy is Princess Lea.  She is driving force behind the fight for FREEDOM.  Looks like the Emperor wants to Kill two birds with 1 stone.  Looks like this lietenant has been given a mission.

Just like the FBI agent and the IRS agent in the Summit Principal Case.  They have been instructed by Congress to target the 4 Principals as fall guys.  Congress can then divert your attentions from the real sources of deception of Money on Wall Street, and get us to focus on all those people (all those who’s businesses have had liquidity crisis’ as a result of Wall Street abuse of our financial system. People who don’t work in our high powered/high profit system have a MONITORING SYSTEM like the FBI and the IRS to go after these organizations as where others weren’t forthcoming with other people’s money.

The HIGHER POWER/HIGHER PROFIT organizations on Wall Street and in our CONGRESS has NO MONITORING system like the FBI or the IRS. The agents said it themselves…We do not know of any organization who monitors these powers. Well I was a bit flabber-gasted when I was pleading with them to follow the MONEY and they will be able to get the money back to the exchangers. Problem is they don’t even understand who has this money. They are going to get it from the Summit Principals for a 3rd time. That is how smart the people working in this system are. They say they are fighting for the exchangers to get their money back, but they aren’t chasing that money because that money has been transferred to our Nation’s Bankruptcy System. I asked, “Who monitors our Nation’s Bankruptcy System?” The looked at each other, puzzled. They had not a clue who monitors this system. All they could tell me is the bankruptcy system is very complex and only a few understand it. So they feel comfortable with that??? I guess so. I mean, apparently, the Summit Principals were vague in their contract with the exchangers. This led the exchangers to believe their money was in the bank. Kevin Padrick, the Liquidating Trustee, is not vague in his contracts. He flat out incorporates false statements after false statements to make the exchangers believe the money is with the Summit Principals (although they handed that all over in May 2009 as they had planned to do since Sussman Shank and Kevin Padrick told them all would be transparent and we can help fund your short-term liquidity problems. Happy day, right? WRONG. That was the 1st FALSE STATEMENTS. In order to get their contracts signed and some money in their bank to help them start their BIG SCORE jobs. Did they tell the exchangers or the Summit Principals that this was the plan? NO, because the purpose of the bankruptcy was supposed to be to get the exchangers paid back. Do you know that if Kevin Padrick & Sussman did what they told the Summit Principals they were going to do to help resolve the looming worry that they couldn’t quite figure out by themselves – How were Summit Principals going to get their illiquid portfolio liquid, so they could pay the exchangers back ASAP?

Kevin Padrick never mentioned that anything he saw they were doing was Ponzi like or illegal. He just said he was there to save the day. I mean Clay Smith, FBI agent said Summit Principals shouldn’t have hired Kevin Padrick for the job if he is such a crook. I guess that wold be the case if they knew he was a crook, but Kevin didn’t tell them that did he, because if he would have they would have kept looking for help elsewhere. The IRS agent, Kathy Fern, said that the Summit Principals should have liquidated all the property. I said they were trying. Problem is nothing was liquidating, no banks were financings, and the only person who said he would help by asking his buddies with deep pockets to help fund Summit’s short-term liquidity proplems. Summit Principals were successful in liquidating and paying down the Inland Corp loans owed to Summit 1031.

12/31/07 – Exchanger Funds held $100,000,000
Less illiquid portion – real estate backed loans
EQUALS Liquid portion $75,000,000.

12/19/08 DATE OF BANKRUPTCY FILING.
Exchanger Funds held $28,000,000.
Less illiguid portion – real estate backed loans
EQUALS Liquid Portion – $14,000,000

So when the Econamic Collapse Wall Street was responsible for finally hit all of us Americans who were working in a false system and a false reality, were sitting ducks. These Summit Principals were not forthcoming with this Inland Loaning company and that some of the exchangers money was held in short-term real estate loans. Just like Wall Street was not forthcoming in 2005 & 2006, with their increasing investments in the sub-prime mortgage back securities. Their own analysists told them they were too heavily invested in really high risk loans. I mean every financial instution was on a loaning frenzy and We the People said sure I want a home, I will borrow the money. If I don’t buy now, I will never afford a home because the prices just keep going up and up and up.

You know who suffers the consequences of Wall Street high risk investments with our money??? WE DO. You know who pays the price though taxes and the bankruptcy court? WE DO. They tax us on the money we work very hard for just to give it to the very people who profited from this collapse and then it busted on them. Well they don’t have they money to help them in their financial crises, right??? So what does the President and Congress do? They dole over Billions upon Billions of our tax money to these faulty businesses because they believe our economy depends out their financial well being. Do any of you have any BIG ALERTS going of in your hearts and your minds. I mean I put a value of some sort to everything and this DOES NOT ADD UP.l

Even if you question this, what are WE THE PEOPLE going to do. Clay smith says that is a civil case, it is up to you to manuever through their justice system to get JUSTICE. I mean get an attorney and file a case. BLAH BLAH BLAH. I got an attorney, Robert Opera. He did the work to help me save my investments and the others who were my partners in these investments. We spent $40,000 in a matter of months for NO results because Obsidian and Kevin Padrick weren’t interested in letting us buy our properties or helping us pay the debt service payments. So it would not matter what rights we have because when the PERSONS OF POWER get this information they IGNORE it. So $40K down the drain. Let’s try something else. Judge Dunn said if you don’t like the fees being charged and you think they are unfair, you will be able to Object to these Fees when the attroneys submit their fee applications to the Court. So I did this. As soon as I did this, I became a TARGET. I brough to the attention of the Court all the duplications of services, the broken contracts, the conflicts of interest, and that the exchangers were being charged for all of this. All of a sudden, I had to pay an attorney to help me with the 2004 Document Request I received shortly after I filed this Objection to fees. I had to spend to unbilleable weeks gathering the documents and organizing them. When I turned this into the attorneys, they immediately said I was to have a deposition regarding this document request. I had to have an attorney and this cost me another $6500 for one day of asking me questions. My attorney said it would cost another 5k to represent me in the courtroom with the Objection to fees and another $5K to sue the TRUSTEE because of the FALSE statements he put in his Declaratory response to the Objection to fees and for his ignoring my RIGHTS in these property intersts I had sunk my extra earnings from the past 6 years of working my ass off – approximately 33K per year. I mean, I had earnings that were in excess of my living costs and my tax liability. So I invested in what I thought were safe investments at the time. BOY WAS I FOOLED. 5 Investments were supposed to be real safe and they probably would have been if Summit did not fail and Kevin did not get the money and the power. I had 1 investment that was more risky and this one would have failed either way.

Lucky for Kevin Padrick, he already used Judge Dunn’s comment early on that Summit was “arguably, a “resulting-ponzi” “. That’s an important legal distinction. A “resulting ponzi” is a business that doesn’t have any of the intent issues, and doesn’t have new client funds going to old investors, but rather a business that has sufferred losses in its operations and new revenues (or client deposits) are utlized in its operations to fund those losses as well as current operations. Many, if not most, businesses that fail can be characterized as a resulting ponzi upon their demise. A resulting ponzi, to my knowledge, is not a crime typically. Once that hit the papers, Kevin’s simply seizing on the one word he wants ppl to hear. -Lane

The number ONE question from the IRS and FBI agents was “What was the loan application process?”

This was my answer…

1. The 1st Loan with Inland Capital Corp was a 1 year line of credit in October 2003.  This was a Line of Credit to my first business partnership, McGregor & Studebaker Tax and Accounting Services.  Sandy McGregor and I worked for Stevens & Neuman, LLP (CPA Firm) for about 5 years together.  We had started our own accounting firm after they sold their practice to Shackelford, Hanson, & Parr, LLP.  We needed some short-term funds to get us through to Tax Season.  I knew Inland Capital Corp did short-term lending because of word of mouth and because I did people’s tax returns who had borrowed from Inland in exactly the same way as a bank. 

My dad, Mark Neuman, said that if I wanted a loan, I would have to talk to Tim Larkin.  So I did.  I told Tim I was going to need short-term money until tax season.  I knew we could pay them back because when we left Shackelford Hanson & Parr, we had about 170 clients confirm they wanted us to do their business.  In many CPA firm employment contracts, they have detailed the price of a what it would cost an employee if they left and their clients follows.  We had to pay them 100% of the revenues that came with that book of business over a 3 year term.  The first payment wasn’t due until after our first tax season.  Sure, our ex-bosses weren’t too happy about it, but they were going to get their money and it was per the terms of our employment agreement. 

Anyway, Tim Larkin said my plan sounds sound, he knows I have the means to pay them back. 

Tim Larkin gave me the terms of the line of credit and I agreed to them.  Click here for document

 The Terms of the Line of Credit were as follows…

Available Credit $15,000

Interest Rate 6% per annum from October 6, 2003.

Due and payable on or before October 6, 2004

One half of one percent loan fee totaling $75

Loan activity was as follows…

10/08/09 Cash Advance $6,000

 11/10/03 Cash Advance $1,000

12/09/03 Cash Advance $2,500

Total Advances $9,500

5/24/04 Payoff Balance $9,575 (Includes $75 Loan Fee)

2. The second loan in question was the 60 day, $100,000 loan from Inland for the 9/6/06 purchase of this real property located at 55725 Snow Goose, Bend, Oregon.  The property was refinanced on or about 10/25/06 with a loan from Umpqua bank for $99,200.  The loan was paid off in full with interest.  (documents attached).  PAYOFF DOCs. Documents included

My dad, Mark Neuman, said the lots down in Oregon Water Wonderland seemed to keep their value.  He thought that if I purchased the lot in a price range of $100K-$120K, that price would hold and be a good long-term investment.  I said well how am I going to purchase the property?  He said he had heard that Umpqua was doing lot loans.  I don’t even remember their loan process, but I remember Mike Donaca said it would take 30-60 days to get the money.

My dad said that, in the meantime, you could see if Inland would do a short-term loan.  He said I had to talk to Tim Larkin.  I met with Tim and told him the plan to purchase this lot and the loan I already had been told I would have no problem getting the loan.  We agreed that a 60 day term would suffice, and he told me the interest rate.  Then he told me to talk to Lynn Hoffman.  She handled the Inland Loan documents at the time.  I went through all the details of this particular transaction again with Lynn.  She prepared the Documents and I sign for the loan.  I couldn’t remember if they game the the funds first or it went to escrow.  Kathy Fern, the IRS agent, had loan information handy and said that they wired the funds to escrow.

The lot loan was refinanced as planned