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