From Crystal Cox at: http://www.ethicscomplaint.com/2009/09/kevin-padrick-cartel-obsidian-finance.html

Below are the reasons I am withdrawing the Objection to Fees:

1.  Obsidian Finance, Kevin Padrick, & Tonkon Torp Threatened to make me pay all their legal fees IF I would not withdraw the Objection to fees.  The Judge did not with certainty say that I would not have to pay it.  He just said, he wasn’t going to talk about it at the hearing.  I could not financially carry that cost.

2.  Susan Ford, Sussman Shank, had an off the record conversation with my attorney.  During this off the record conversation she hinted to him to fish for a deal between Steve Hedberg, Kevin Padrick, & Annie Buell.  Even so, when we Subpoenaed Tom Stilley & Susan Ford from Sussman Shank – Sussman called their professional liability insurance for attorney malpractice.  Is Sussman worried about the deal they made with Kevin Padrick to have them get their fees and keep them on to earn additional fees doing the exchanges?  Now I would have attorney charges dealing with the attorneys protecting their dirty laundry.

3.  These attorneys are going to use all their legal bags of tricks to keep the TRUTH of their side deals from getting out.  I don’t have any more desire to learn all of these dirty tricks.  Especially when The Creditors don’t care if they lose their money!  Even if they do care, I don’t blame them from not pursuing it because the Attorney Fraternity and the Fraud in our Bankruptcy system is RULED by the attorneys who play the GAME.  Real Good Judicial System don’t you think.  The only ones it works for are the Attorneys. Oh and by the way, these attorneys get to make deals, switch sides, lie their tail off, harrass, bully, and take the money all at the creditors expense.

So I leave the rest up to God and hope the US Department of Justice gets off their tail and investigates this particular group of attorneys because I believe they will find corruption on all levels.

I will also continue to post things as they are pertinent to getting information about this case to the public and to all the Government Agencies who have spent days & hours looking at this site.  I sure don’t mind helping them investigate the Attorney Fraternity!

To David Aman,

Your so-called “serious inaccuracies” should be resolved in the court room in front of the Judge. If you want to file a motion, I will file an objection to your motion. By the time you do all this, you will again be WASTING THE 1031 EXCHANGERS MONEY and we will all be at the hearing on September 2nd anyway.

See this is where you and I are different. I already did my work without your help.  You need to do YOUR WORK. This means that you just need to provide what is inaccurate about the information in my Objection to Fees. For what you get paid, I would think you should be competent enough to do so without deposing me prior to the hearing. And if you get to depose me, then I get to depose you or Leon Simson – Whoever is leading the ship over there at Tonkon Torp…(Redacting all your time so no one can know what you work on all day for all enormously high rates) and I should get to Depose Kevin as Trustee. When you set that up on the same day, count me in! Plus you have to pay for my attorney and my day off of work. I won’t do it before I get a check from you to pay me for my time and my expenses. Just because you and Kevin Say that this and that, does not mean this and that.

I told Kevin a long time ago that this is in God’s hands. Kevin, of course, disagreed. He said it was in the Judge’s hands. We continued to argue about this until I figured we were not going to agree so I told Kevin let’s stop this and agree to disagree.

If it is God’s Will that you get me in a deposition for your own gain and not for the best interests of the 1031 Exchangers and the Innocent Parties then I will be sitting in a room on August 25th enjoying more blissful times with you fun people.You see this Summit 1031 Bankruptcy and how it affects People is still greater than Tonkon Torp, Kevin Padrick, Obsidian Finance, Perkins Coie, Sussman Shank, Pamela Griffith, Robert D. Miller & Judge Dunn. Many are suffering at the expense of a few and I don’t believe that is God’s Will.

This is a clear case of the market turning to crap!

Then attorneys and professionals taking advantage of it and keeping their high paying jobs in this Chapter 11 trap. The attorneys & professionals lead unsuspecting business owners down this path as if that resolves anything. The only thing it resolves is for the attorneys and professionals to create a profit mechanism for 5-7 years, while everyone else gets screwed. Frankly, I don’t think that is in God’s Will and no matter how powerful your client thinks he his, he is no match for the Higher Power in our world.

From: Stephanie Studebaker-DeYoung

 ——————————————————————————–

From: David Aman [mailto:david.aman@tonkon.com]

Sent: Monday, August 10, 2009 9:23 PM

To: Stephanie Studebaker-DeYoung

Subject: RE: Summit matter: Deposition

 Ms. Studebaker-DeYoung:

 We intend to proceed with filing a motion to take your deposition on August 25 in the afternoon. You have filed objections to the fee applications that the Trustee and his advisors have filed, and we have the right to question you concerning those objections–particularly given the serious inaccuracies in the objections.

 Regards,

 David S. Aman

Summit 1031 BK Reporting by Stephanie Studebaker-DeYoung

The above video is 20 minutes of the story as I see it to date…

“Click Here to SEE TIME Kevin Padrick Spent With Steve Hedberg of Perkins Coie Re: CRO Substitution”

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.

Here is the page with attorney connections…

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 $184 to Obsidian Finance (Kevin’s Company) Total $653K for 5 months to 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.

Go to http://www.anniebuell.com/ to see their role in this.  Annie Buell is Tennant Family!

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 a profit 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…

Our Objection to Fees

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 posts Click here

Click here for 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 of Kevin 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:

#130682-v1-KlondikeEMailLSimsonReOddFellowsBldg, klondike-offer, KLONDIKECAPITALCALL21009 6/4/09

KlondikeE-MailDAmanRePadrick-Final, Klondike2009OwnershipChanges 6/24/09

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:

CenturyDrEMailDPetersenRePadrick 6/15/09

CenturyDriveMobile-DeferredGainSheet, CenturyDriveMobile-Email, CenturyDriveMobile-IncomeSheet, CenturyDriveMobile-TIC Agreement, CenturyDriveMobile-Resignation 7/1/09

Bankruptcy Fraud

Bankruptcy Trustees

The Predators Within

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.