Tim Larkin: My concern, is that when we originally met back in December, there were several things that Obsidian put forward that they could do for us…move quickly, engage the insurance companies almost immediately, work fast enough perhaps so we could preserve some exchanges.
At that time, the 45-day date had not passed. That was something that you, Kevin, put forth and there was a reason to engage you in the process. So we spent a week or so putting together all of the information that we could with our hopes that this thing was going to move forward quickly. And that, in fact, this thing was going to move forward quicklyand that, in fact, because Obsidian was being retained by us in the process that we would be getting some communication from you.And in the process, at least from my perception, you guys are doing an end around us…selling yourself to the creditors’ committee.We are getting absolutely no feedback.We’re seeing absolutely no results that you put forth you were going to bring to the table. And so, obviously, we start getting concerned. We’re concerned because we start hearing things that perhaps at the presentation to the creditors’ committee you are presenting what we felt was a more complex position and structure than what we have going here. The things like the Three Sisters Development LLC were very complex when truly they don’t even come into play, or minimally, in this whole thing. That’s when I think all of us became concerned about what we have done here.We have put out $100,000 of exchanger money, essentially, and we’re seeing nothing from it and we’re getting no communication from this firm that we retained to help us with that. If you could, kind of respond to what it is you have been doing and why none of the communication is coming to us.
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.
Cork Andrews is a high profile member of the Creditors’ Committee. Word on the street is that Cork originally said Kevin Padrickwas a shyster. Then on another day, Cork changes his mind and votes Kevin Padrick in to take care of all your money.
I find it funny to see that Cork put a lien on a Montana property owed by two of the Summit Principals and 2 innocent parties. This tells me that Cork was trying to position himself first in front of all of you. This also tells me that Kevin Padrick and/or Obsidian should know about this lien if they have done any work on this property.
So now we have Annie Buell and Cork Andrews as Chair and High Profile members of the Creditor’s Committee pushing for Kevin Padrick to be put into the CRO/Trustee role in this case.
Looking back, I don’t see any reason why Kevin Padrick or Obsidian needed to be involved. This could have been handled just fine in its original format with Terry Vance as CRO and actually WORKING on the JOB. My opinion is that Kevin Padrick & Obsidian were simply SELLING THEMSELVES for the JOB. They had good allies in Cork Andrews & Annie Buell.
Cork Andrews completely changes his position and gets himself in front of the line.Then Kevin Padrick allows this. I wonder what this is about? Maybe another deal was made at your expense?
It seems to me that Annie Buell acts as a good instigator for Kevin Padrick and maybe there is a deal there too. I hear Annie Buell pushes Jeanette Thomas at Perkins Coie around. Why is Jeanette Thomas being pushed around by Annie Buell??
Seems like individuals who have their own interests in mind are big players in this Bankruptcy Case. Ask yourself why this is the case? Dig Deeper! Find your own Answers. Ask the questions you are scared to ask because you don’t want it to be the Truth. Only then will you be able to see what you need to do to save your money. THE MONEY IS THERE! It is YOUR HARD EARNED money! The Attorneys look at your money as a game. I don’t think money is a game. It is what we use to pay for our living expenses. We shouldn’t want all of it, but I don’t see why we shouldn’t be able to PROTECT the money we did earn and is still there. Do you see why you should not get your money back if someone just did their job and looked out for your best interest?
This time looks to be for time with Steve Hedberg, Kevin Padrick, & Tom Stilley for Conferences RE: CRO Substitution and Susan Ford Email. I need to get this email because there was something in the email that made every one upset???? Although, Lane said at the presentation that he read the email and didn’t see what would make everybody so angry.
Players with connections so far. Some more connected then others.
Pamela Griffith, Assistant US Trustee – Worked with Leon Simson of Tonkon Torp when she was at Ransom, Blackman and Simson - Tonkon Torp got paid only due to the Switch from Terry Vance CRO and Kevin Padrick CRO/Trustee.
Steve Hedberg, Senior Principal, but not really lead attorney of Perkins Coie. Lead attorney is Jeanette Thomas. However, Kevin Padrick is not having conferences on the CRO substitution with Jeanette Thomas. Instead he is conferencing with Steve Hedberg who worked under Kevin Padrick at Miller Nash. Steve Hedberg, Leon Simpson and Kevin Padrick all worked together at Miller Nash.
Leon Simson, Senior Attny of Tonkon Torp – Kevin Padrick “Trustee” legal counsel - Fee application $267K in 3 Months
Tom Stilley & Susan Ford, Lead Attorneys at Sussman Shank, Summit 1031 Bankruptcy Attorneys – They said do Chapter 11 and everything would be transparent.Nothing has been Transparent and that is why we have this problem. Kevin Padrick continued to use them for to process the exchanges even though initially Kevin Padrick told the principals that Obsidian Finance could facilitate and fund the exchanges (he had connections!). $407K plus $117K to come.
Kevin Padrick – Take over Job and build his own profit center $469 Plus $184to Obsidian Finance (Kevin’s Company) Total $653K for 5 monthsto land a job and hire his own company at hourly rates, plus 15% plus Trustee 1% or 3% plus a success fee of 10%.
Terry Vance CRO – was supposed to be the boss (Click Here for Summit 1031 Contract with Obsidian) for Obsidian & Summit 1031, but instead Sussman Shank was making all the calls. Under the contract, Terry should have been more aggressive since he was supposed to be running the show. Sussman Shank, Kevin Padrick, & Obsidian Finance were supposed to be working at the direction of Terry, but Terry never OK’d any of these meetings between Kevin Padrick, Susan Ford, Steve Hedberg & Tom Stilley. So why were they conferencing and what was discussed here??
Click here for a clip from the audio from the February 11, 2009 Hearing. Prior to this clip of the audio, Judge Dunn decided the case needed “Structure” so a he made a Motion to Appoint A Trustee. The US Trustee’s Office Picks the Trustee. Both Kevin Padrick’s and Terry Vance’s names were in the hat to be picked and the US Trustee’s Office (Pamela Griffith) picked Kevin Padrick even though he had not done the job he was contracted to do and knew nothing about the entire situation…Terry Vance had an indepth knowledge of the TRUE picture and he didn’t need to have LEGAL COUNSEL to protect him from his actions, like Kevin Padrick does.
The $2 Million of FEES are Outrageous in this case for only 5 Months of Billing. I Still don’t know what they have billed for 5/15/09 through Today.That is another 3 Months unbilled as of this time! Especially when you have cooperative debtors.
So if I were going to tell a story from my viewpoint it would be something like this…
I would guess that Kevin wanted his share of the cash in this very liquid bankruptcy $13.6 Million in Cash, and put a significant chunk of it into Obsidian’s bottom line.
How was he going to do this? He had to get a different job because he didn’t have his hands on the cash, Terry Vance did. It would be too difficult to actually work for the money under the contract.
Kevin Spent time figuring out the situation and how he could get to the Cash. He played off of the creditors anger and I think he played off of the Tennant Lawsuits and the Tennant Family pushing to get in front of the Line for the Money.
Kevin knew he could get Leon Simson on board and therefore, possibly Pamela Griffith. Kevin knew for sure he could get the creditors on board because Annie Buell was chair of the creditors’ committee and Steve Hedberg was the senior attorney for the creditors’ committee legal counsel, Perkins Coie.
It seems like Annie Buell is able to push Jeanette Thomas, lead attorney for Perkins Coie, around to get what she wants..Not sure what the relationship is there.
Sussman Shank was kept on doing exchanges even though they were not competant at it and have cost the estate a ton of money for taking on a job they were not the best professional for. Kevin Padrick should have retained another Qualified Intermediary if he couldn’t do the exchanges which is what he said the could do.
All Players seem to have aprofit motive that is different that the motive they should have which is to do their best to pay back the Summit 1031 Exchangers. And the Portland BK culture seems to work like this, you pat my back on this case, I’ll help you out on another down the road. Status quo is profitable for everyone.
From what I have read on these Chapter 11 Cases, it seems that there are enough strange parts of this case to lead to an FBI investigation into possible Bankruptcy Fraud. I am not a lawyer or an investigator. I am just trying to figure out what the heck has gone on here since none of it makes any sense to me since there was enough legwork and assets put forth by the Summit Principals to get the Exchangers paid back. I don’t get it and I don’t think these people are acting in the highest fiduciary duty since that would mean they had the creditors, best interest in mind.
It is a long story, but hopefully this helps condense it a bit. Below are some very good places for more information…
Click here for Kevin Padrick Complaint – Another recap of this story in another format...
Another way to look at the story is to check out the older postsClick here
Click herefor a story about Kevin Padrick & Longview Fibre.
Click here for story about Kevin Padrick & Oregon Trail Financial Corp.
Click here for a Video Taping of Kevin Padrick, Obsidian Finance, Terry Vance, Summit Principals, my step-mom and myself
Click here to see total fees in case through May 15th, 2009.
Here is an example ofKevin Padrick not letting a “no brainer” sale of a residential home go because he was not set up to make 15% yet…
Here is an example of a perfectly good and indepth offer that has now past and soon will be nothing because this property will go in foreclosure if I can’t continue to make the payments. This offer has been lost and ignored. An example of Obsidian Finance and Kevin Padrick’s “Professional Competance”. Below are all related documents:
Click here for my mobile home park issue. This thing would cost the estate money. Of course, Kevin does not want to part with money, he just wants the money to be brought to him. Jim Hull and I are working for Free to keep this a float and if Kevin keeps it in the estate, it will cost the estate. Below are all related documents:
When you file bankruptcy, the court assigns your case a trustee to administer the case. These people are legally known as Panel Trustees, but commonly referred to as a trustee, or bankruptcy trustee.
They are contract employees. They are not government employees. They are on contract.
During the 1930s, a new division within the U.S. Justice Department called the U.S. Trustee Office was created to deal with the rampant fraud by bankruptcy trustees against citizens and businesses.
But something is very wrong with the U.S. Trustee program. Graft and corruption among the panel trustees has not lessened and victims still have no recourse. Most victims report their evidence of criminal activity goes into a black hole and the U.S. Trustee does nothing.
See the ATP, Whistleblower, Sturman, Solder, cases of the crimes against these people while the U.S. Trustee’s Office is either covering up the crimes or turning a blind eye.
The FBI defines one of their duties as investigating bankruptcy trustee fraud. The U.S. Trustee Program, however, redefined what constitutes Panel Trustee Fraud.
They define fraud as Panel Trustees who recover assets, and divert those assets to the Panel Trustee’s personal enrichment without approval of the court. The operative words are without court approval. Too many cases have emerged where judges approved.
It could be because the bankruptcy judges are rubber stamping cases because the system operates like a cattle call. As an example, see the Smoking Gun case of how Judge Jane McKeag rubber stamped a motion by a trustee that involved flagrant fraud.