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!

I don’t know, I am not the Department of Justice.  I think the DOJ is the only entity who could investigate & determine whether this is the case.  I think there is enough evidence on this blog to ask a question or two, don’t you?

What Injustices do I See?

I. Obsidian, Kevin’s company, was contracted to assist Summit in their restructuring efforts. They took the information Summit provided them and got themselves a better, more lucrative job as Trustee and Consultants to Trustee. These actions causing the majority of the $2 Million in Fees charged so far and the increasing claims 13 Million to 40 Million.  See schedule of fees

II. These “professionals” are seizing bank accounts that have other peoples’ money in them, filing documents with the state under false authority, ignoring FMV offers, ignoring capital calls, ignoring people’s credit problems, harassing people for no reason with Rule 2004 Examination Requests.

So far there are Rule 2004 Examination Requests on Umpqua Bank, Dan Cardot, Erich Shultz, Bruce Thompson and me.  There are many more related parties on their list.  Are you next? Here is my 2004 Response without my documents.  Pages 12-15 contains the list of “possible aiders and abettors”. You can see that they want to torment a lot of so-called “aiders and abettors of a “Ponzi Scheme Conspiracy”.   Do you 1031 Exchangers really think there was this “Ponzi Scheme Aiding & Abetting Conspiracy”?  Do you want them spending your money on this?

III. These “professionals” tell lies…Here are a couple:

1. Kevin Padrick Testifies that Summit Principals transferred roughly 90% to Inland Capital, but I have the numbers and since 2002 it never went over 41.9%. Did Kevin Padrick perjure himself?  

2. Kevin Padrick’s Attorney, Tonkon Torp…David Aman said the camera equipment was concealed (matter of opinion), but most importantly David Aman sent me an email that says“Terry Vance has confirmed that he, like Mr. Padrick and the other Obsidian staff, did not see any operating video camera or other recording device in the room when the meeting took place.” Click here to see part of the video.

i)I spoke with Terry Vance (CRO whose job was taken by Padrick) and he said that he told Jeanette Thomas (Perkins Coie – Creditors’ Committee attorney) that he did see the camera equipment.  I believe Vance confirmed this with the  police so they haven’t been bothering me with my posting on the Internet of this taping.  See for yourself if you think the video equipment was concealed.

I had a criminal attorney, Mark Anderson, assess the matter prior to posting and I collected all the evidence…

a) Audio of a hearing

b) Email to Ms Vivienne Popperl – attorney for US Trustee.

c) Taping Kevin Padrick and Obsidian Finance Presentation

ii) Mark Anderson gave me the go ahead – Click Here for Letter.

 iii) You can see in the video when Terry Vance looks at the laptop with the web cam & you can see that Here - the video equipment was not concealed.

 IV. These “professionals” are seizing bank accounts that have other peoples’ money in them, filing documents with the state under false authority, ignoring FMV offers, ignoring capital calls, ignoring people’s credit problems, harassing people for no reason with Rule 2004 Examination Requests, See Exhibit F (not all is posted out of peoples’ fear)

 V. Word on the street is Ewan Rose of Obsidian Finance is telling innocent parties that they will give them amnesty (from a “Ponzi Scheme conspiracy”) in exchange for their interest in their LLC investment AND a cash payment.  Additionally, Obsidian will release property that is upside down (loan is greater than FMV) to them.  These are properties where the innocent party previously financed 100% of the property to pay back Inland in full.  Great DEAL don’t you think!!? Letter to the Department of Justice

VI. Is the US Trustee’s Office in Bed with the Attorneys & Professionals?  Maybe.  When I send an email with concerns, the US Trustee’s Attorney, Ms. Vivienne Popperl, sends the email directly to Kevin Padrick – the Person you are having concerns about.  See correspondence with Ms. Vivienne Popperl.

Thanks Vivienne, that was so very helpful. 

Summit Principals have and will continue to pay for their role in this. If you let your hate and anger get in the way of you doing what you have to do to protect your money, then you are fighting – well against yourself. I think the 4 principals should pay whatever consequences they need to pay. That is the way things work. But so should the Attorneys and Professionals and the Justice system which are intentionally keeping you in the dark so that they can steal your money the legal way. If you don’t do something, you won’t get your money back. There are solutions that will help the whole group of people who are suffering because of the fallout of Summit 1031 bankruptcy. We should not all suffer because of the greed of a few. We have rights and we need those rights to be protected.  If you are being quiet and letting these people, who only care about their own pocket book, make decisions on your money while making sure they get maximum benefit for themselves, then you will be the one to blame when you don’t get your money back. INACTION will only add to your demise. There are not many times where the TRUTH gets out early enough for you to do something about it. There are not many people like me who will go the extra step to make sure justice is being done. I define justice as getting the victims paid back in all ways emotionally, financially, and physically. Please open up your mind so that your money is not squandered away to one greedy man and the rest of the Attorney Fraternity.

THERE IS MUCH MORE YOU SHOULD KNOW ABOUT WHO IS IN CONTROL OF YOUR MONEY AND WHAT THEY ARE DOING WITH IT SO GO TO ALL THE INFORMATION SITES OUT THERE. SIMPLY GOOGLE “KEVIN PADRICK” OR “OBSIDIAN FINANCE” TO FIND OUT WHO IS GOING TO MAKE MONEY OFF THIS DEAL, WHILE SUMMIT 1031 EXCHANGERS GET DUPED TOO.

FIRST KEVIN PADRICK & OBSIDIAN FINANCE DUPED THE SUMMIT PRINCIPALS (Summit Principals contracted with Obsidian Finance to assist them in their restructuring efforts, BUT instead they assisted them in throwing them off a cliff)

SECOND KEVIN PADRICK & OBSIDIAN FINANCE DUPED TERRY VANCE CRO – While Terry was actually working to save your money, Padrick & Obsidian Finance somehow convinced Judge Dunn; the US Trustee – Robert Miller, Pamela Griffith, & Vivienne Popperl; the Creditors’ Committee’s legal counsel – Perkins Coie; and even Summit 1031′s own bankruptcy attorney, Sussman Shank, to vote Padrick in and Vance out. The whole Attorney Fraternity joined Padrick in his GAME – which is your MONEY!!!

Go to my blog to see what other ventures Kevin Padrick has had in his career where he, ONE MAN, made a boatload of money off of 100′s of people:

http://summit1031.blogspot.com

ANOTHER BIG QUESTION- Why did Sussman Shank rollover and vote Padrick & Obsidian in when they were the one’s who counseled Summit Principals to hire Terry Vance as CRO? Can’t tell you, but I did hear that Susan Ford, their lead attorney, was out of town when their minds changed. Who was driving the ship when Susan Ford was gone and why did they jump into Padrick’s ship?

THERE ARE SO MANY BIG QUESTIONS- Why did Perkins Coie let a Summary Judgment go through that has absolutely NO TEETH for the creditors’ committee – their own clients? You tell me. Seems like the attorney’s are making a BOATLOAD, $2 Million already, for absolutely no protection of their OWN CLIENTS rights.

How did I get involved in this?

First Reason – My Dad (Mark Neuman), Brian Stevens, Lane Lyons, & Tim Larkin are good men that were following the regulations set forth for their business and now they lost everything.

My dad worked very hard for many years, helped everyone in the Bend Community, and cares very deeply about others and their well-being was being looked at like a criminal for following the rules and regulations of 1031 exchange companies. Everyone was happy when Summit 1031 helped them save taxes. Now he is being looked at like a criminal – well he has done nothing like Kevin Padrick. He never intended to not have your money available.

Brian Stevens & my dad put their personal real estate up as security for Inland, just to put their partners, Tim Larkin & Lane Lyons, at ease. The bulk of the Inland loans were in various real estate investments related to Mark & Brian. So they both put did $5 million trust deeds and secured it with almost all of their property (none of which had Inland debt- at least not the property dad had).The FBI was chasing the $10 million for a couple months. They, of course, found the trust deeds and immediately concluded that the $10 million was in a Swiss bank account. Not sure what you think, but why would someone record a trust deed to steal money and send it to a Swiss bank account?? Soooooo…….

Second Reason – There are 106 Innocent Parties who are also suffering from the Bend economic crash, but now have to deal with someone who wants to bully them, force them to use their cash (Summit 1031 Exchanger assets) to protect the investments for being taken by Obsidian and from going into foreclosure (LOSING Summit 1031 Exchanger value).

The following is my list of what I call “list of atrocities” which include all of the things these highly compensated professionals are charging Summit 1031 Exchangers $112K to do with no value for the Summit 1031 Exchangers

Click here for a list of atrocities!

Obsidian Finance seized another bank account Monday! Obsidian Finance sends letters to Renters for them to send their rent checks to them, while the 106 Innocent Parties are having to pay the debt service payments and operational expenses. Well, guess what, they won’t be able to keep up for long, forcing the properties into foreclosure. Then my guess is that Padrick’s friends (if that is what you call them) will buy these properties at discounted prices from the banks. Later to end up with the Windfall when the economy comes back!

Well these 106 Innocent Parties put their hard earned money into these investments, they take care of them, and they pay the bills. I see this as Legal Extortion, but according to Judge Dunn these properties are not in his Jurisdiction even though his court allowed for the transfer of the Summit Principal’s interests to be transferred to Kevin Padrick. Doesn’t Judge Dunn know Kevin Padrick’s track record or has he been duped too?

Third Reason – I got the notice on the Attorney & Professional fees in this case and was dumbfounded. I decided to go through Obsidian Finance, Kevin Padrick, and Tonkon Torp’s fee applications and I found a ton of OVER BILLING for NO VALUE. Supposedly the Court is supposed to monitor this, but so far I haven’t seen the court monitor anything on this case. It is my opinion that the Court has put your Money and Value in jeopardy and is not doing their job to protect it. There are 100 Summit 1031 Exchangers losing their money!!!

Why is it that Summit 1031 exchangers are footing the $2 Million Dollars of Attorney Billings when none of these “professionals” are watching out for their best interest? They tell me that the Court (Judge Dunn), the US Trustee (Robert Miller, Pamela Griffith, Vivienne Popperl), and the bankruptcy or liquidating trustee (Kevin Padrick) are all supposed to act in the HIGHEST FIDUCIARY DUTY, which means…

A fiduciary duty is a legal or ethical relationship of confidence or trust between two or more parties, most commonly a fiduciary or trustee and a principal or beneficiary. One party, for example a corporate trust company or the trust department of a bank, holds a fiduciary relation or acts in a fiduciary capacity to another, such as one whose funds are entrusted to it for investment. In a fiduciary relation one person justifiably reposes confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests.

“ A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.

A fiduciary duty is the highest standard of care at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the Summit 1031 Exchangers): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the (Summit 1031 Exchangers) consent.

In English common law the fiduciary relation is arguably the most important concept within the portion of the legal system known as equity. In the United Kingdom, the Judicature Acts merged the courts of equity (historically based in England’s Court of Chancery) with the courts of common law, and as a result the concept of fiduciary duty also became usable in common law courts.

When a fiduciary duty is imposed, equity requires a stricter standard of behavior than the comparable tortious duty of care at common law. It is said the fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest. It has been said that fiduciaries must conduct themselves “at a level higher than that trodden by the crowd”[2] and that “[t]he distinguishing or overriding duty of a fiduciary is the obligation of undivided loyalty.”[3]

I am just not seeing how this Court, the US Trustee’s Office and Kevin Padrick are in any way maintaining their FIDUCIARY DUTY to the SUMMIT 1031 EXCHANGERS. Do you see it??

My “list of atrocities” alone should show that Kevin Padrick and Obsidian Finance are not acting with a “stricter standard of behavior than the comparable tortious duty of care at common law”. WHY ISN’T HE ACCOUNTABLE TO THIS SO CALLED FIDUCIARY DUTY?

Why do Kevin Padrick and his Attorney Fraternity stand to make a 10% success fee based on claims racked up?

Why is Kevin Padrick’s company, Obsidian Finance, going to make 15% off the sales of property? A normal trustee usually only makes 1%.

I see a ton of profit-making for Kevin Padrick and Obsidian Finance – DON’T YOU???

SOMETHING IS SERIOUSLY WRONG WITH OUR BANKRUPTCY LAWS AND THE INSTITUTION AND EVERYONE IS PAYING THE PRICE!!!

The entire country is lining up at the bankruptcy courts. Our country’s citizens are losing everything because of this of our economic condition and NOBODY is helping them. I see the suffering everyday as clients visit with their financial heartaches asking me “What do I do to SURVIVE this?” Then you compound the situation with a nightmare bankruptcy case like Summit 1031 where 100 Summit 1031 Exchangers, 106 Innocent Parties, and 4 Summit Principals loose everything to the Attorney Fraternity because our laws are broken???? 210 People SUFFERING while Kevin Padrick and Co. play their GAME!!! It just pisses me off to see so much suffering and ABSOLUTELY NO PROTECTION FOR THE PEOPLE.

I don’t see how these BROKEN LAWS will help our country through this economic crises. President OBAMA – LOOK AT THIS PLEASE!!! If thes BROKEN LAWS don’t get fixed, you will end up with a few rich attorneys spending the money frivilously (is my guess), while hard working people lose everything and aren’t able to contribute to the economy in the GOOD ways they once were able to. President OBAMA – Pay attention – You ask us to all put forth the effort to help our country – Well I think I am doing my share, but I am a nobody with too many hats!

BEFORE SUMMIT 1031 BANKRUPTCY MY HATS WERE: MOM, WIFE, DAUGHTER, CPA, BUSINESS OWNER, AND REAL ESTATE INVESTOR.

AFTER SUMMIT 1031 BANKRUPTCY I HAVE TAKEN THESE HATS ON: “ACTING LAWYER – YUCK!”, VOICE FOR THE HARMED, WHISTLEBLOWER, BLOGGER, REPORTER.

I HATE ALL THESE HATS – I would much rather not be doing this. I would much rather enjoy time off and be with my kids and husband. Instead, they watch me everyday fight this fight! They ask me why. I tell them because TOO MANY ARE SUFFERING for ONE MAN’S GAIN!!!

HERE IS AN ARTICLE BY CRYSTAL COX – REAL ESTATE INDUSTRY WHISTLEBLOWER FIGHTING FOR THE REAL ESTATE CONSUMER RIGHTS.

Saturday, July 25, 2009

Let’s Talk a Bit about the “Evil, Greedy Bastards” at Summit 1031.

Folks, Many of you do not think too highly of the Summit Owners (Principals) – Understandable.

Yes they screwed up with your money. You do not EVER have to Forgive them, however, heck with them.. let’s get YOU – your MONEY…

What I am seeing is that many of you don’t understand that what you are REALLY mad at is the 1031 Exchange Industry, The IRS – Tax Codes that Governs a 1031 Exchange and the horrible Anti-Consumer laws and regulations that are set in place in the Real Estate Industry.

Most of What Summit 1031 did was in the legal limits of a Flawed 1031 Exchange and a Flawed Legal System.. Exchangers everywhere are doing it.. the Laws – the Codes – the Issues need changed..

And you don’t seem to understand that the business model was set up by Government Standards, IRS Codes and the Current BROKEN and CORRUPT real estate system that is in place… There is NO Consumer Protection in your Real Estate TRANSACTION.. NONE.. I guarantee it..

This Current Battle is not to Save Summit 1031 – Heck with Them.. and it is not to Justify any actions of Summit 1031 Exchange – The Current Challenge is Getting YOUR MONEY to YOU… the Real Estate Consumers who I am HERE to Protect the Best I can..

Negativity, Hate, and Serious Disappointment in Summit 1031 is understandable, do what you need to do to feel what you need to feel.

Summit 1031 got caught up in the Real Estate Illusions and the Great Real Estate Hoax that MOST did during this Economic Collapse, ok it happened, this is not where we, YOU need to focus now…

What is done is done. Our goal is to Stop attorneys from now Pirating your money, STOP bankruptcy attorneys from feeding off of your already dead pocketbook – bank account and from that point to help make Bankruptcy Court Industry wide changes that benefit all 1031 Exchangers and Real Estate Victims for years to come. AFTER we SAVE your money, YOU the Creditors, the Exchanger.. YOU are My Goal to Protect, to DEFEND to Give Voice To.

Wanting Summit Accomodator Inc. (Summit 1031 Exchange) to see jail time, and the other nasty grams people are spreading online is NOT solution based. And will not get anyone any kind of relief at any point in time. You are Where you are Today.. through no fault of your own.. I get it.. The Real Estate Industry is Very Broken and at every Level..

Feel Free to email me Crystal@CrystalCox.com about any facts or concerns regarding all of this. However, Know that Hate, Rage, and Blame is not action and will not get you any closer to getting financial relief or in way make all this go faster.

The Lenders, Realtors, Appraisers, Title Companies, Attorneys, Real Estate Laws, Bankruptcy Courts, Dept. of Justice, Bankruptcy Trustees, IRS Code they are all part of the problem with a VERY anti-consumer Real Estate Industry.

I do not believe ANY part of the Real Estate Industry, at ANY level provides ANY real protection for the Real Estate Consumer. I want the whole system to be remodeled, restructured… from Top to Bottom and I want the Real Estate Consumer – the Real Estate Victims Protected and RIGHT NOW…

I do not wish to spend one minute dwelling in the bad judgment of 4 men caught up in a Real Estate Frenzy that millions of others were caught up in at the same time.

I don’t care about Them, I Care About YOU… Work with me Here…

You can see in a completely broken real estate industry, with NAR at the Helm of the Real Estate Hoax saying Buy Buy Buy – and Fraud – Corruption on every level of your Real Estate transaction, and with Federal and State Laws very Anti-Consumer ( and cannot really be enforced anyway), and with the Daily Assault by ALL parties of the Real Estate Industry on the Real Estate Consumer .. that it is really hard to tell who the REAL “Evil, Greedy Bastards”.. Really Are.

At every level there are new hands out to Screw over Consumers.. once your in a Proven Fraud situation – Good luck proving it.. and then the Real Estate Attorneys get a hold of you and take 40% or more from your “winnings” which is really just NO WAY NEAR making you whole or making up for the stress and years of your life you lost to a lawsuit against some party in the Real Estate Industry that lied, cheated and stole from you.

And SERIOUS insult to injury is if anyone one of those parties in the Real Estate Business get screwed by the system as well.. WOW then the game is bumped up to High Finance Real Estate Consumer Fraud, and instead of $200 an hour for a real estate attorney, plus part of your settlement if there ever is one, instead of $50 an hour for a Forensics Engineer who double triple bills you, and instead of all those greedy hands out when your already down to the tune of hundreds of thousands of dollars ..

now once it hits the Bankruptcy Courts the Hands Of Greed, and the Blatant Attack on YOU, the Real Estate Consumer is Really Jacked up.. it is $600 an hour, years upon years that attorneys get to liquidate, your Millions upon Millions get sucked up in attorneys fees and evaporates into thin air, your Federal taxes pays for Congress to make these laws that don’t work for you, your Taxes pay US Trustees that are not protecting you, and well there is a whole lot of hands out to get your money that is already being tied up by the mistakes of the company going bankrupt.

The System is Broken at Every Level. And talk of those “Evil, Greedy Bastards”.. at Summit 1031, is NOT part of the Solution.

And if your NOT part of the Solution You are, indeed, part of the Problem.

From researching the Bankruptcy System, it is not hard to see that one Main point of GREED is the HUGE, overwhelming Pay that the Attorneys get and the Government, the Bankruptcy Trustee seems to have no issue with it .. and even says there is no “unjust enrichment”, the Truth is Buried deep under a giant pile of YOUR MONEY.

This is no longer about Summit Accomodators, Summit 1031 Exchange, Hate them if you need to but HEY let’s get your money pointed in your direction in the mean time. Whatever happens to Summit 1031 is their fate. They made choices and they will live with the consequences, this issue is BIGGER then them.. it is YOU.. your money.. held up by what I see as a Severely Corrupt Bankruptcy Court System.

Go to : http://www.obsidianfinancesucks.com