Thursday, April 5, 2012

Summit Bankruptcy "What Did Sussman Shank do in the first days?" " What did Obsidian Do in the First Days?" Summit Bankruptcy Whistle Blower Stephanie DeYoung Regarding Sussman Shank, Obsidian Finance, Terry Vance CRO and the Summit Bankruptcy.

" "What Did Sussman Shank do in the first days?" "

"Right away Sussman instructed the principals that they could no longer take any money from exchangers nor could they wire money out.  The criminal attorney advised the principals to not discuss the situation with anybody.  Meanwhile, Sussman needed at least a week to get the bankruptcy filing done.  What were the folks at Summit supposed to say in the meantime?  Sussman told the principals, ”Just say nothing!” 

That did not work out very well.  Exchangers got suspicious when wires were sent back and wires that were supposed to be delivered didn’t come.  Of course, Summit 1031′s clients (exchangers) got worried in a hurry.  The principals wanted to help, but they were told to sit tight and wait for their attorneys to post a notice on Summit’s website.  That day finally came.

All the attorneys worked hard and charged multiple hours before they agreed on what notice should be posted on Summit's website.  The corporate BK counsel had to approve. The corporate criminal counsel had to approve. The individual BK counsels had to approve. The individual criminal counsel had to approve. As you can see, this notice turned out to be very expensive. The notice still did not provide much information for the exchangers who wanted answers.  Click her for Summit's Website Announcement"

For answers, whom did the exchangers call?  The notice on Summit’s website said that, “[s]hould you desire or require bankruptcy advice to protect yoru rights, you should contact a qualified attorney to assist you with this process”.  No one wants to retain an attorney unless they really have to because of the money involved.  
Many exchangers tried to contact Sussman Shank or Summit 1031 offices for answers.  Customers left messages but no one was calling back.  Those exchangers were thinking, “What’s going on and where the hell is our exchange money?”

The exchangers wanted to know!  Sussman said they were too busy working on the bankruptcy to field calls from exchangers.  The principals were still advised to not talk to these folks.  So whom should they call?  How about the Oregon Attorney General?  How about the FBI?  How about the US Attorneys’ office?  Yep, that’s whom they called in hopes to get some answers.  So much for keeping things off the radar!  Those up front attorney fees (which could have gone to the exchangers) were paying great dividends!!
"
What did Obsidian Do in the First Days?"

Right away Obsidian had its people in Bend.  The principals started going through the list of properties, providing background on the properties, estimated values and information on the other partners in these ventures that they would want to talk with.  Dad even took Ewan Rose, one of the Obsidian guys, on a tour of Bend owned properties because he thought it would be a faster way to help them get their arms around things.  Tim Larkin worked effortlessly to compile all the property information they would need in a detailed spreadsheet (Padrick used this impressive spreadsheet in his presentation to the creditors’ committee). In the hearing with the Judge, he said the creditors’ committee was impressed by this spreadsheet.  If they only knew Tim Larkin had created it.
Even more important was introducing Obsidian to the exchange files.  Summit’s exchange managers were kept on board to help get those exchanges done.  Lane Lyons finally ignored the advice to not talk to any exchangers, got on the phone and went to town trying to help exchangers complete their exchanges before the exchange deadlines. 

The Obsidian folks stuck around for a week or two, and then headed back to Portland with the files and other information provided.  The principals did not see or hear from Obsidian for the next two months.  Suddenly, the court wanted to replace Terry Vance as CRO and put Kevin Padrick in as CRO.  I decided to go to the courthouse in Portland.  I requested that we be allowed to see the same presentation Padrick gave to the creditors’ committee.  The principals still had no idea how Obsidian was going to bring more value to the estate to help compensate for Obsidian’s large fees.  Obsidian’s fees are 15% of what they bring in, plus rates averaging $400/hour and reimbursed expenses.  Terry Vance was getting things done without these large costs.

What did Terry Vance, CRO, do in he first days?
Vance took charge in his first week at Summit.  Terry told the principals he would need their help in getting to understand the entire situation and figuring out exactly how to approach liquidation of assets in order to help get creditors repaid.  All the while, he had to provide the bankruptcy court with all the information it required (he kept Summit personnel on to help him accomplish this).

Terry built a rapport with the Summit principals.  It was a good recommendation from Sussman.  Terry’s goal was to get the properties liquidated at maximum value and in the least costly manner.  He reviewed the most valuable properties first with the principal that had the most knowledge on that particular property.  He talked with realtors and asked for appropriate comps.  He assessed the realtors and the comps and made listing decisions.  Properties were listed for sale.

One deal was accepted on a property in Park City, Utah.  Another offer was accepted on a lot in Whispering Meadows south of La Pine.  To my knowledge, these are the only sales that have occurred since Summit 1031 declared bankruptcy.  To date, Obsidian has received at least 6 different offers which they rejected.  I think their only accomplishment was to sell all the office furniture (about 25 workstations) for $7,501.  That was a good deal for someone!   Vance made much more progress with 2 large sales in the first two months.  Vance was respected by the LLC members and the principals. 
I believe that if the exchangers knew that Terry was there every day getting a good understanding of the situation and getting things sold so that money went to the exchangers in a quick way, they would have left Terry in place as CRO.


Note Part of the Sussman Shank Press Release was in the Post I was Sued 10 Million Dollars For. I gave this proof to Judge Marco Hernendez. ~ Crystal Cox Investigative Blogger

Here is Exhibit 520 that I gave Judge Marco Hernandez, Portland Oregon To Show the Source of the Post I was on Trial For. Which included the above press release.

Judge Marco Hernandez called my proof of the Source of the Post Hearsay, yet Let the Plaintiff simply state Million in loss from the time the Subject Post was posted, December 25th 2010 and the time the Lawsuit was filed which was January 14th 2011. Judge Marco Hernandez seemed to believe that millions in damage happened in those 20 days over what I wrote in one blog post.  Judge Marco Hernandez denied my proof of the post as hearsay, yet their Star Witness and Oregon CPA Gary Stachlowski in his testimony provided opinion and hearsay and that was taken as fact.  

Here is the Entire Trial Documents I Gave Judge Marco Hernandez
Trial Memorandum


Portland Oregon Federal Judge, Judge Marco Hernandez FAILED for a Year and Counting to sign a Conflict of Interest Disclosure, though I Crystal Cox in my Pro Se Capacity asked over and over as the "Record" shows.  Judge Marco Hernandez accused me of a crime in a Motion to Deny a New Trial and Violated my Rights in doing so. I was not on trial for a crime and as you see in the Trial Transcripts, they were accusing me of extortion during my trial and I asked for a Public Defender, Judge Marco Hernandez said that David Aman was not accusing me of a Crime though he plainly was, and Judge Marco Hernandez said if Mr. Aman does accuse you of a crime, then plead the fifth.  Then months later Judge Marco Hernandez accuses me of a crime in a Motion to Deny a New Trial and I have no way to Plead the Fifth, nor to defend myself. I am simply GUILTY and not the "Innocent until proven Guilty" as it should be. 

More on Obsidian V. Cox 

Bankruptcy Whistleblower Stephanie DeYoung's Blog Regarding the Summit Bankruptcy

More on the Objection to the Fees of Tonkon Torp Law Firm and Kevin Padrick, Obsidian Finance Group

Meeting of Kevin Padrick, Obsidian Finance Group with his then clients Summit, whom he was under contract with to for a Plan of Reorganization, this was in the Contract between Obsidian Finance Group and Summit, that Patricia Whittington of Obsidian Finance Group signed for Kevin Padrick of Obsidian Finance Group .  Here is a Play List of the Meeting

Kevin Padrick betrayed his own clients, misled the Summit Principals, Set them Up, even using their spreadsheets to sell himself to the Creditor Committee to get the Trustee job, which is alleged to have made Obsidian Finance Group 6.5 Million Dollars and counting last I looked at the Court Docket in January. 

Here is the Objection to the Fees of Tonkon Torp Lawyers and Obsidian Finance Group, filed by Summit Bankruptcy insiders.

Umpqua Bank Fought Back When Kevin Padrick Sued, there Was No Ponzi, Kevin Padrick made it up to get Media Attention, FBI Attention on the Summit Principals so he could run away with the loot and the guys that knew the truth would have to much heat on them to be deemed credible. 

Judge Marco Hernandez is protecting the Portland Oregon Elite Law Firms of Miller Nash, Perkins Coie, Sussman Shank, and Tonkon Torp.  And Judge Marco Hernandez is protecting Oregon Lobbyist and Obsidian Principal David Brown, as well as Kevin Padrick and Obsidian Finance Group. Judge Marco Hernandez is protecting is also protecting Department of Justice Trustee Pamela Griffith, and Bankruptcy Judge Randall Dunn who STRONGLY suggested that Obsidian Finance Group ( an Entity, not an Individual, be appointed as Trustee), this was after emails went to all parties from counsel claiming that appointing a Trustee was bad for the creditors.

Lot's More Coming Soon to Clarify What REALLY Happened. 

Posted Here by 
Altruistic Investigative Blogger Crystal Cox
Now Reverend Crystal Cox ( as I am now a Minister, this of my own personal choice)
Crystal@CrystalCox.com 

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