I did not attend this meeting, but I hear the following parties attended:

• Kevin Padrick, HIMSELF
• David Aman, MY BUDDY
• Leon Simson, APPARENTLY NOT HAPPY WITH THE OBJECTION TO FEES
• Annie Buell, LOVES TO BE IN EVERYBODY’s BUSINESS
• Jeanette Thomas, VIA PHONE
• My Attorney, WE WEREN’T SUPPOSED TO GO, but my attorney thought he would stop by JUST IN CASE.

Sure GLAD my attorney stopped in.  Who knows what Kevin Padrick, David Aman, Leon Simson, Annie Buell, & Jeanette Thomas would have done if he didn’t stop by?  These Players could form a basketball team.  They were FULLY PREPARED to defend themselves from something!!

I am not exactly sure, but I don’t think the Judge is going to make me pay for their fees in dealing with the Objection to Fees.

It seems that Leon Simson, today’s spokesman, thinks the Objection to their fees is about 1 thing.  I find it hard to believe Leon really knows what my 1 reason for the Objection to Fees is…Funny thing is the Objection to Fees does nothing for me.  I am trying to STOP the attorneys from getting money they have not earned.  Reason being is that the Summit principals want the Summit 1031 Exchangers to be paid back.  I believe you should EARN YOUR Money.  They should NOT be allowed to take from the 106 Innocent Parties by bullying them and harassing them to Pay the Summit 1031 Exchangers.  If the Trustee would  just do his job and you did not have 5 or so highly compensated attorneys needed to make the most simple decisions, maybe you could save yourself some money on attorney fees.  When Terry Vance was in charge, he did not need all these Players to make a decision.  Those were the days!

Looks like the hearing is still set for September 15, 2009.

For all those who have been following this case, PLEASE NOTE the EVIDENTIARY HEARING DATE HAS BEEN MOVED TO SEPTEMBER 15TH AT 1:30PM.

However, the Court has informed the parties that it IS holding the hearing to allow INTERESTED PARTIES to VENT CONCERNING THE PENDING FEE APPLICATIONS.

READ the OBJECTION TO FEES

According to Doc 551, IF the Court expects to receive Evidence at the September 2, hearing, then Kevin Padrick (The Trustee) and Tonkon Torp intend to call the following witnesses at the hearing:

Kevin D. Padrick – - He is going to tell you HOW EXTREMELY COMPLEX this case is so that YOU can FEEL GOOD about Paying out $992,000 for 3 Months of NOT Producing any ADDITIONAL CASH into the Estate…

Claim No. 119-1 - $184,000 is for Obsidian Finance to Assist the Summit Principals OFF A CLIFF!

Claim No. 120-1 – $469,599.39 is Approximately 3% of the CASH THAT WAS IN SUMMIT 1031’s Bank Account WHEN they Filed for Bankruptcy & 3% of the Property Sales brought in by TERRY VANCE.

I assume this was the CASH Kevin and Obsidian were looking at when they DECIDED to break their CONTRACT with Summit 1031 and instead of assisting them with their restructuring efforts, they went to the other side to get themselves 3% of the CASH ALREADY IN SUMMIT’s Debtor in Possession BANK ACCOUNT.

Kevin Has to tell you how complex it is so he can get this MONEY he has so tirelessly worked to get his hands on AT YOUR EXPENSE!!!

Claim #117-1 $267,000 is for TONKON TORP – Kevin’s Legal Counsel.  You are Paying ATTORNEYs to PROTECT the TRUSTEE in all the LEGAL CHAOS he is creating!

I hope THE 1031 EXCHANGERS feel they are GETTING their MONIES worth!!

Oh- BY THE WAY – ANNIE BUELL will be testifying about the Communications between the Creditors’ Committee and Kevin Padrick.  THIS IS VERY INTERESTING because I would really like to know what would convince the Creditors’ Committee to HAND this over to Kevin Padrick with NO ACCOUNTABILTY & LARGE SUMS OF COMPENSATION…

1. 15% of property liquidation
2. $200-$600/hour charge rates
3. Kevin Padrick has to be GROSSLY NEGLIGENT to LOSE HIS TRUSTEE Hat
4. 5-7 YEAR term as TRUSTEE

Seems a long-term job that Kevin can’t get FIRED from and he already has MILLIONS in the Bank to pay his HIGH COMPENSATION!

Looks Like Summit 1031 the HIGHEST Liquidity RATIO at the time they Filed for Chapter 11 Bankruptcy – 49.82%

From: Danielle Kinyon

Sent: Saturday, August 29, 2009 2:05 PM
To: amoore@bendbulletin.com

Subject: Summit 1031 Exchange coverage

I am a former employee who spent nearly 8 years working for Summit 1031 Exchange.  Working for Mark Neuman, Brian Stevens and later Tim Larkin and Lane Lyons was a very special experience indeed and I miss my job and my work family tremendously.  The partners of that business were very effective in creating an environment that reflected our mission statement “Work Hard, Have Fun, Make a Difference”.  They believed wholeheartedly in that mission and, contrary to what you and others in the media have reported, made it their business to do more than just line their own pockets. 

They made it their business to know their employees on a personal level and to treat everyone that walked through the doors of their business, whether an employee, a client or a friend, with respect.  Over the years they effectively guided hundreds of people in this community and all over the U.S. to build their own personal wealth.  They have all spent many hours and dollars, on a personal level and through the business bettering our community in many ways, from providing pro bono tax work to people in need to sponsoring Neighbor Impact’s Hungry All Year Long food drive and community events such as the Cascade Cycling Classic and Clear Summer Nights music.  They are all men of high intelligence, integrity and compassion.  They, like many people in our area and in the nation, put too much store in escalating real estate values and lost big.  Unfortunately, because of their actions others lost big, too (including me).  As terrible as it is, what they did was not illegal and certainly was not a Ponzi scheme.

As you do when you see people you care about being treated unfairly, I feel I need to speak up.   I implore you; report both sides of this story.  If the principals of this company are ready to talk about it, let them.  Print Mark Neuman’s letter to the editor. 

Danielle Kinyon

My dad wanted to send this letter to the Editor to the Bend Bulletin OR to Andrew Moore at the Bend Bulletin (Reporter Assigned to this Case), but they only allow 200 words for a letter to the Editor and Andrew Moore has not been receptive at all to getting the other side of the story. 

Poor Andrew can’t be all to blame – after all he said it himself “This is obviously a very complex matter and I’m like a caveman at a physics convention”

THE OREGONIAN…has IGNORED THE INFORMATION on this SITE as well.  They spent a GOOD 13 SECONDS here.  I AM GLAD our NEWS REPORTERS are WORKING HARD to get you the INFORMATION YOU NEED TO MAKE GOOD DECISIONS. 

I told my dad to post this letter on my website/blog where the TRUTH can be TOLD.  If you want the whole story in the Bend Bulletin – Contact Andrew Moore at 541-617-7820 or at amoore@bendbulletin.com to see IF YOUR VOICE can be heard.

To the Editor - 

 The failure late last year of Summit Accommodators, Inc., of which I was a principal, has been a humbling experience for me.  Never could I have dreamed that circumstances could intersect in such a way that would cause the organization to crumble overnight.  I’m truly sorry for the pain it has caused all of the exchangers.  I can only sincerely hope and pray that the assets we provided and any other monies available will result in the exchangers being made whole.

But this letter isn’t about me.  I’d like to write out about my former partners at Summit, Tim Larkin and Lane Lyons. 

The bankruptcy trustee and the media have thrown these two men into the Summit fire on equal basis with me.  It is in the best interest of the trustee, Kevin Padrick, to have as many “bad” guys as possible.  Don’t confuse “trustee” with the word “trust”.  He is a hired gun brought in by the creditors’ committee and is paying himself large “commissions”.  So far he gets an A+++ for making the situation seem the worst possible.  The more criminal he can make it sound, the more chance he has at getting settlements from banks, bonding companies, etc.  The more successful he is, the more he fills his pockets with those “commissions”.

The trustee’s insistence on throwing Larkin and Lyons under the Summit bus is just plain unfair.  Both of these men came to work long after the business practice of making business loans with a portion of Summit’s exchange money was part of the business. 

Tim Larkin came earlier in that timeline.  He inherited a business plan which included the business loan strategy.  He was a strong manager and leader.  He helped keep the company focused and made major contributions to streamlining operations along with much higher accountability.  He came to work every day and operated with a high sense of integrity.  I can’t imagine a business team not wanting Tim Larkin on the team.

Lane Lyons came much later in the game.  As an attorney he was invaluable in shoring up legal agreements for Summit.  He brought a much higher level of legal regimen for the organization.  He always operated with the best of intentions.  He doesn’t have a criminal bone in his body.  Once again, Lane’s sense of integrity is among the highest.

Neither of these men benefitted personally from company loans in a significant way.  In fact, Lyons owes the company a very small undeterminable amount.  Tim Larkin owes the company virtually nothing as he is on the hook for a $917,000 personal loan, money which was deposited into one of the entities that has been turned over to the bankruptcy estate.  That amount far exceeds any loans he made.  That property is in foreclosure now and Larkin will take the full credit hit.

These men are not responsible for the Summit debacle.  The impact of their hard work and foresight contributed to a huge reduction in outstanding loans over the last two years of Summit’s operations.  Two years before the bankruptcy, they both insisted on a moratorium of all loan activity.  They insisted on a new business plan which included an end to the practice of loaning a portion of the exchange funds.  That became the policy.  Tim Larkin heartily pursued liquidation of real estate, the majority of which was not his, for the total pay down of all amounts owed.

After bankruptcy was declared, no one worked harder than Larkin and Lyons in doing everything in their power to provide all required information.  Larkin’s very detailed spreadsheet of all related real estate was provided directly to Kevin Padrick so Obsidian Finance had little work to do.  Lyons spent countless hours working with exchangers to help finish their exchanges despite all the hurdles that the bankruptcy attorneys threw at him.  They both did everything and anything they could possibly do to help benefit the creditors.  They did this despite their roles being unfairly characterized by the trustee and the media.  That’s the kind of men they are.  That’s the kind of men they always will be, no matter what the trustee says, no matter what the paper says, no matter what people who like to gossip say.

Respectfully Yours,

Mark Neuman, Former Summit 1031 Principal

Governor Kulongoski signed House Bill 3484 on July 28, 2009. This regulation will go into effect on January 1, 2010.

House Bill 3484 uses model statutory language that has been adopted in a substantially similar form in other states in an effort to protect those who entrust funds with Qualified Intermediaries.

 Key points to this new law require Qualified Intermediaries to:

•  Notify exchangers of change in company’s ownership/control
•  Maintain fidelity bond of $1mm or deposit funds into qualified escrow account
•  Maintain errors and omission coverage of $250,000
•  Invest funds in a manner that meets the prudent investor standard
•  Satisfy the investment goals of liquidity and preservation of principal
•  Prohibits commingling exchange proceeds with operating accounts
•  Prohibits exchange company from loaning funds to any related entities*

*There is an exception to this rule that will be used when working with construction and/or reverse exchanges. Exchange proceeds may be loaned to the exchange accommodation titleholder in accordance with a qualified exchange accommodation agreement.

Well yesterday, I got to be deposed by David Aman of Tonkon Torp.  Ewan Rose of Obsidian Finance attended as well.  They also surprised me and my attorney with a camera man.  I am sure glad I got all dolled up for the camera…whew!  The camera didn’t scare me.  I would rather things be recorded so we can get to the TRUTH faster.

Anyway, Both Ewan Rose & David Aman drove into Bend on Monday August 24th. David Aman stayed overnight at the Ameri Tel Inn and Ewan Rose stayed overnight at the Bend Pheonix Inn .

Cost to Bankruptcy Estate for Stephanie Studebaker-DeYoung Deposition Day…

Not Sure to Prepare???

Ameri Tel – Approximately $120 Plus Tax

Pheonix Inn – Approximately $130 Plus Tax

Travel Time

Ewan Rose $400 times Travel Times 6 Hours Round Trip $2,400 (Ewan Just Sat There) [1/2 time is $1,200] By the way, I NEVER SEE EWAN SMILE like his Website Photo:)

David Aman $325 times Travel Times 6 Hours Round Trip $1,950 [1/2 time is $975]

Deposition Time 4.5 Hours (Ewan @ $400/hr = $1,800 & David @ $325/hr = $1,462.50)

How Much Time Did they spend on me After the Deposition???

Did they have Meals?

Not Sure how much The Camera Man Cost or the Court Recorder….

Even If they charge 1/2 time for their Travel – At minimum the cost is approximately $120 + $130 + $1,200 + $975 + $1,800 + $1,462.50  EQUALS A MINIMUM CHARGE TO 1031 EXCHANGERS of $5,687.50 for My Deposition. 

How many More of us are they Going to Depose?  There are 106 of us.  That is only another $600K of Legal Fees they can rack up!  Shouldn’t you be asking if there is any reason YOUR money should be spent getting nowhere with innocent people?

Click Here to Find Out What Else Your MONEY is BEING WASTED on…

Kevin Padrick - Bankruptcy Trustee Charging the Estate Millions to Strong Arm Innocent People out of their Investments, Credit & Reputation, BUT NOT COLLECTING ANY MONEY FOR THE 1031 EXCHANGERS!!

OR

Crystal L. Cox - Industry Whistleblower, Advocate for the Real Estate Victim, Champion Blogger – All this for no benefit to herself – She just wants you to know the TRUTH!!

Umpqua Bank has struck back against allegations brought by the trustee of the bankrupt Summit Accommodators, saying in a court filing that trustee Kevin Padrick knew his claims were “frivolous and false” and that they were brought in “bad faith.”  READ MORE…

 AND

Umpqua Bank’s Ray Davis’ Opinion - “Let me be very clear: neither Umpqua Bank nor its management team assisted, ignored or was aware of any wrongdoing by Summit Accommodators, Inc. The allegations in the suit will prove to be unfounded, unsubstantiated and unnecessarily inflammatory” READ MORE…