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Interesting post over on BendBB this past week. Yet another comment by someone that began a chain of events all to familiar:Smart Creative Solutions said:
What could be smarter or more creative than loaning yourself millions of your clients dollars?
bendbb said:
If you have evidence that someone illegally loaned themselves millions of client dollars give that information to the authorities, but if not I need to remind folks that the public record information posted in this topic doesn't prove any wrongdoing. There may be an innocent explanation for Summit Accommodators's "liquidity problem" so let's wait and see what develops rather than posting innuendos.
TYPE: Deed of Trust / Mortgage CONSIDERATION: $5,000,000 DATE REC: 9/22/2008 8:52:58 AM
DIRECT: NEUMAN, MARK A INDIRECT: INLAND CAPITAL CORP
DIRECT: NEUMAN, JANICE L
SUBDIVISION: AWBREY BUTTE HOMESITES PHASE SEVENTEEN LOT: 22 BLOCK: 6
SUBDIVISION: AWBREY BUTTE HOMESITES PHASE 30 LOT: 7
SUBDIVISION: HIGHLANDS AT BROKEN TOP PHASE 2 LOT: 36
So when bendbb tells people to stop posting "innuendo", there's already a fair bit of PROOF that the principals of Inland & Summit are on the grift. They've already removed $10MM in commingled funds. And so it begins:
Smart Creative Solutions said:
Hold on there Mr. Internet Policeman-- I didn't say it was illegal. As a matter of fact 1031 accommodaters are totally unregulated so there is nothing illegal to report to the authorities.
It is a matter of public record, not innuendo, that both of the principals of Summit Accomodators loaned themselves five million dollars from their company recently and that the security for these "loans" have an RMV that is a fraction of the "loan" amount--smart and creative.
bendbb said:
I'm glad to hear you don't think it was illegal, but your post explicitly said they loaned themselves millions of "clients dollars". That's innuendo, and that needs to stop.
Guest said: Oh pleeeease --there is no innuendo that needs to be stopped. It is undisputed that these loans were made by Island Capitol, the company whose sole purpose was to hold "clients dollars".
On their website they confirm these"clients dollars" are missing
Currently, there are significant funds in the exchange fund accounts maintained by SAI. However, the balances are less than the total amount of all currently open exchanges for Summit Customers.
This isn't an alleged incident--it really happened--the clients money isn't reportedly gone, it is gone.
Panda said:
bendbb you need to put the brakes on. I don't see how any of this discussion crosses any lines. People are offering their opinions as to what is going on here. They have a right, perhaps even an obligation to do that, as there is something very amiss here.
I've had personal dealings with some of these principals and I'd be very worried if I had money in their company.
Panda hits the heart of it right here. I'll put to you that at the heart of any thought suppression is SELFISHNESS. Not caring about anyone but yourself. It's how dictators operate, it's how BendBB operates.
I can offer IRREFUATBLE (rhetorical) proof: If BendB was one of Summit Accomodators clients, and had, AT THIS MOMENT, a transaction that he could not complete because of the CURRENT LIQUIDITY ISSUES, that he'd be about as far away as he could be from his current stance:
"Let's presume INNOCENCE of these grifters despite the fact that we have UTTER PROOF that they have VICIOUSLY VIOLATED THEIR FIDUCIARY DUTIES. No, no. Let's give them another chance. Let's see if they CAN WORK IT OUT. They've DIVERTED $10MM+ to themselves, thencly leaving an untold number of people in the Bernie MADE-OFF-TYPE Lurch of not being able to BUY ANYTHING. Yes. The CORRECT thing to do is GIVE THEM MORE TIME WITH OUR MONEY."
But maybe IHTBYB is Too Cynical? Maybe bendbb is protecting people FROM THEMSELVES. He wll permit No Evil against these Reputable 1031 Exchangers:
Freddi said:
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Guest said:
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St Paddy said:
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Freddi said (again):
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Then St Paddy posts something I used to exclaim on a regular basis when posting on BendBB, something that hasn't happened in over a year:
WTF did I violate?
bendbb said:
I don't keep track of removed messages. Don't take it personally.
Great thing about this, is there is no one who knows WTF St Paddy even wrote. It's all gone. No personal arbitration of truth, only bendbb's idea of What Truth Is. And so it degenerates into Parsing Every Word so as not to be called LIAR:
Hypothetically Speaking said:
How about if we say hypothetically; In a hypothetical situation like that, could people voice their opinion?
bendbb said:
Hypothetical situations are fine as long as they don't morph into thinly veiled allegations about real people.
Ah yes, there's nothing like a spritzer of Oblique Language to put a spring in your step!
"Thinly veiled accusations"? Really?
So, the posting on the county clerks office Just Doesn't Hold Enough Water? Did you go along with If It Doesn't Fit You Must Acquit? I mean, WTF do you need?
Thickly veiled Hypothesis said:
Thanks for that ruling.
To thicken up the veil, how about if we say the town was in Ohio, and that it was 2 astronauts that stiffed their 1031 customers?
Perfect. If this CAN'T possibly indict the character of any of bendbb's Possible Associates in Bend, can we actually have a conversation about it? PLEASE?
Then the sarcasm starts, because people can't believe they're being Shut Down for Stating The Incredibly Obvious:
Queen said:
I can't figure out if you're being sarcastic or if you live in a parallel universe where what these guys did is something less than reprehensible.
The most obscene part of this is they are characterizing the the 10 million dollars they made off with as an investment.
From their site;
The current amount owing from Inland to SAI is approximately $13,706,557.21. The existing real estate investments will be made available to repay the loan balance and satisfy claims,
The security for these 2 five million dollar "investments" that were both made 9/22/08 are third trust deeds on houses that were already seriously underwater.
The second most obscene part of this is that were it not for these 2 "loans" and the opulent livestyle the principals treated themselves to, no customer would have lost any money.
Bendbb; this is not innuendo-- I'm not insinuating these guys are scoundrels, I'm coming right out and saying it.
Guest said:
I'm being very sarcastic with more than a hint of criticism for the way bendbb handled this entire thread.
bendbb said:
So maybe I should make like BEM and moderate messages *before* they're posted -- is that what you want?
My vision for the bulletin board is to keep it focused on issues, not on people or personalities. I don't understand why you find it necessary to call people names like "scoundrels". Can't you find another way to express your opinions without name calling?
You BASTARDS! Besmirching BendBB with your flagrant use of terms like SCOUNDRELS! Jeebus would roll over in his GRAVE!
bearishly happy said:
bendbb.
It seems like you have a bit of a tin ear for rumor. I know you got the Cessna guy to deal with (Cessna closing tomorrow!) and other scurrilous rumors, but not all rumors are false, either. I'm not sure why you and RDC feel it necessary to be apologists for obvious bad dealings. Scoundrels is the least word I would use.
Guest said:
bendbb you're really showing your colors on this thread. Do you have some skin in the game or some other association with people at this firm? Your continual chastising of people throughout this thread, at the risk of being being censored, has been childish and petty.
BINGO!
Guest said:
So here's another hypothetical.
I call you and say, "I'm new to Bend, and I need to invest in a 1031. I hear your'e the expert, here. What do you think of Summit?"
Do you say nothing?
bendbb said:
I ask you, "How did you get my number?"
Considering that Summit has filed for bankruptcy and isn't accepting new 1031 customers your hypothetical seems a little far-fetched, but maybe that's true of most hypotheticals.
Ohhhhhhh.... there it is. "THAT'S TRUE OF MOST HYPOTHETICALS"
Uh huh. Commenters held BELOW CONTEMPT.
"You know what, I run this fucking board, and I'm not going to have the FUCKING DECENCY to even put forth a useful answer. And I am going to ASSUME THE BEST about a bunch of thieving FUCK STICKS and continue deleting posts as I see fit. AND BEST OF ALL, I am going to make THE 100% COMPLETE ASSININE statement that MOST HYPOTHETICALS ARE FAR-FETCHED. And no. I will OFFER NO PROOF. It's true BECAUSE I FUCKING SAID SO!"
Guest said:
Of course you refer them to Summit, that is if you use the same reasoning processes as bendbb-- He has read their website where they confess to relieving their customers of 14 million dollars, but notwithstanding this admission, he sees no wrongdoing.
Exactly. Do you realize bendbb that people are INCARCERATED EVERY FUCKING DAY WITHOUT EVIDENCE. They are given their day in court, BUT FIRST THEY ARE ARRESTED ON SUSPICION OF GUILT. NO PROOF. Just suspicion. ALMOST EVERY PERSON IN JAIL WAS ARRESTED ON SUSPICION, BUT NO PROOF.
And what do we have with Summit? My God, the evidence is OVER-FUCKING-WHELMING... but bendbb doesn't have the critical thinking skills God gave a fucking rock, to realize his commenters have PILED UP THE SUSPICION PRETTY FUCKING HIGH, and probably have the RIGHT to make... wait for it:
INNUENDO.
Yeah. These SUmmit fuckers are as guilty as Hitler in my book. This is FRAUD, and ALL BUT THE SENTENCING is fucking DONE. WTF else do you need? A fucking video where they are sitting around LAUGHING DIABOLICALLY ABOUT COMMITTING FRAUD?
Well, apparently the answer over on BendBB is "YES".
Guest said:
Poor clients....
Gotta do an exchange within 180 days to avoid paying taxes.
Unable to close exchange within 180 days because the money's gone.
Taxes now due. No money to pay them because... the money's gone.
bendbb! ALERT! DANGER, DANGER!
My God, this person is IMPLYING INNUENDO THAT THE MONEY IS GONE! AHHHH! INNOCENT UNTIL PROVEN GUILTY! Where are you bendbb? HELP US!!!
Guest said:
If you're the victim of a fraud it really helps you on taxes. This was discussed several places recently due to the Madoff case.
Whew! Glad to hear about The Vast Upside of Summit's FRAUD.
Guest said:
| Quote: |
| As a long time reader and a poster a few times, I am in complete agreement with BB admin, If it's not the truth at the time of posting it is only an opinion. |
Apparently you and bendbb just aren't getting it.
Does anyone ever know the Truth? Or the facts?
Even when you think you've got Truth in a chokehold it gets away.
I think the complaint is that unless bendbb knows for certain something is true (read above) he accuses everyone of spreading misinformation. If he's in a sour mood he deletes stuff.
Which begs the question "How would you ever become enlightened if you weren't first willing to contemplate facts that you might not be certain of at the time?"
Perhaps the funniest part of this whole debate is this board is edited as though its got the readership of the WSJ. But that's Bend. Everyone thinks they are a BSD.
I like hanging out in smoky dark rooms to get the dirt, then I can follow up and figure out whether or not what I've read here is probable or not.
You shut off that spigot and this board becomes worthless. I've watched over-zealous moderators do that time and time again. Pity. I think its happening here also.
I like this guy. But not everyone did.
bendbb said:
If you think this bulletin board is over-zealously moderated feel free to go somewhere else because it's unlikely that the moderation is going to change.
At this point, I'd suggest you go over to BendBB just to read the posting by "Deep Throat" on page 11 of this thread. I'd give a URL, but since bendbb has admitted many times to IP harvesting, I can only give a description of where to go. Deep Throat posts a pretty lengthy and informative comment regarding the Summit mess.
And luckily this debate is nicely sewn up.
Not Deepthroat said:
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See, if you ARE someone WHO HAS ACTUAL real-World knowledge about the Summit-Inland FRAUD, you actually CANNOT post it over on BendBB. Why? Because it will immediately be deleted as INNUENDO.
bendbb, bless his gristly heart, is one of a Vast Number Of Deluded Dumbfuck Who Thinks: This Is Bend, AND EVERYONE IN BEND IS A CUT ABOVE THE REST. EVERYONE. I am a cut above. I am Better.
We're told this EVERY FUCKING DAY by the POLLYANNA BULLETIN.
"No, no. That business is NOT BAD. It's run by Bendites, so THAT IS NOT POSSIBLE. There can't be any FRAUD in Bend, because NOTHING BAD HAS EVER OCCURED IN BEND. THERE ARE PEOPLE WHO ARE TRYING TO FUCK US ALL IN THE ASS, THEN KILL US. They are The Dissenters. THEY DO NOT think Bend Is Special. You MUST NEVER LISTEN TO THEM. EVER! Now Let Us Go Forth To Jonestown, where we might all partake in a glorious LIFE ENHANCING KOOL FLUID..."
Ahhhhh cults. They systematically try to rob you of your ability to THINK. Because if YOU ACTUALLY KNEW THE TRUTH, they would LOSE ALL POWER OVER YOU. Have no doubt, BEND IS A CULT.
And it is RUN by Real Estate. And this story is about a HIGH PRIEST of the Cult of Bend making off with MILLIONS, mind you they have ADMITTED IT and There Is No Doubt, and bendbb and every other Bend Media Outlet is True To Form, and STILL LEAVING OPEN TO QUESTION whether they are worthy of our suspicion.
Even having to THINK FOR 1 MICROSECOND about that, is indicative of CULT-THINK. OF COURSE THEY SHOULD BE ARRESTED UNDER SUSPICION OF GUILT, RIGHT NOW. WTF, indeed.
OK, MINDLESS FUCKING CULT-FUELED CENSORSHIP aside, this Summit thing is a HUGE STORY. We've seen ReMax go down. There have been untold boutique mortgage shops & realtors & builders already bite the dust. We've even seen suicides.
But Summit, like ReMax is LARGE. Now the CIRCUMSTANCES are totally different. ReMax just bled out & died, cuz RE is over in this town.
Summit is PHASE II of the shutdowns. The ENRONS of The Bend RE Collapse has begun. Yeah, this is the Clusterfuck Black Hole Phase where the tide has gone out & The Big Boys are starting to be exposed for what they are. FRAUDSTERS.
Bend RE is The Largest Ponzi Scheme FRAUD on the West Coast. We're penny-anti shit, so I wouldn't want to say The Biggest In The US, or anything. But as PER CAPITA FRAUD GOES, this town is at The Top Of The Pile.
Have no illusions, this place is DOOMED. Why? Because when you CANNOT TRUST the intermediaries & the principals, you CANNOT DO BUSINESS. People will not give WHAT MONEY THEY HAVE, to ANYONE. This town is like a GIANT WashMu branch right before the SEIZURE: People will begin BAILING LIKE MAD, JUST TO GET ANYTHING OUT OF THIS FRAUD-RIDDEN SHITHOLE.
Our motherfucking newspaper is ON LAND GIVEN TO THEM BY The Biggest Developer In Town. WTF?
OK, I'll wrap this up. On a lighter note. Did anyone notice there was no "What's Going Up" section in the paper yesterday? At least not in the website of bendbulletin.com. The week before it was a picture of The Administrative BARN for the Sunriver Stables. THAT is What's Going Up. A barn. And not a big barn. A small barn.
RIP "Whta's Going Up". You did manage to go out on a high note.
Oh right... and file this under Not Everything Is As It Seems. Dunc filed a post, Why Open Now? He talks about Gottschalks, and some supplier problems and such. But here's the problem:
GOTT, 3yr chartThis company is about to go BUST. This company has lost almost 99% of it's value, and that is ALMOST ALWAYS a harbinger for DOOM.
I expect a BK on GOTT very soon, within a month probably.
GOTT & Summit illustrate ONE SINGLE TRUTH in times like these: Things are NOT as they seem. Bend Bulletin EXPOUNDED on the UNPARRELLELED ATTRACTIVENESS of Bend for setting up shop, by using GOTT's opening a store in THESE TRYING TIMES.
Uh huh. And I suppose Mark Neumans 8,000+ sf mansion is PROOF that Summit is on FIRM FINANCIAL FOOTING.
We've seen time & TIME AGAIN, that This Time It Is Different. THIS FINANCIAL COLLAPSE is a different breed. We've had 30 years built on phantom income built on credit card & home equity INCOME. This country is largely built on a base that DOES NOT EXIST. OK, NOT EVERYTHING in the US Economy is a PHANTOM, but far more than anyone ever thought possible IS.
We're seeing WHOLE TOWNS and whole areas that were completely sidestepped by the bubble runup, and are now doing "fine". Look at Harney & Grant counties for high relief illustrations of this. These communities experienced BARELY A BLIP whether up or down in the past 10 years.
But then there are places like Bend. Contrary to the 0% Exposure of places like Burns, we are Almost Entirely Dependent On Bubble Economics.
Burns, strangely enough is The Wal Mart of The Bust, doing Quite Well Thank You. But Bend is The Office Max, Gottschalks, KB Toys, Circuit City of the bust All Rolled Into One. We doubled, tripled, and then QUADRUPLED down on REd.
We are so ridiculously quadruple beta-positive on RE, that we will NEVER RECOVER. And note, 18 months ago I made similar statements and was chided as a Clap Board Lunatic.
But this town will NEVER RECOVER. The tide is going out like NEVER IN HISTORY, and the Summit's of Bend are being exposed. Folks, it AIN'T FRAUD UNTIL YOU GET EXPOSED. Go ask Bernie MADE OFF. And the motherfucking tide is GOING OUT.
You will NOT BELIEVE the damage that will be done. Medians at $120K doesn't really fully encapsulate it. $120K medians will happen for a reason. It'll be due to FEAR, FRAUD, and FIDUCIARY ASS FUCKING. People will be SCREWED en masse in Bend.
And I mean WORSE than we have been. Look at our Elected City Council.
This place is 100% DOOMED. And if YOU STAY HERE, or BUY A HOME HERE, you deserve everything you get, including being 100% MADE-OFF'd by Bend's FRAUD-RIDDEN RE INDUSTRIAL COMPLEX.
Bend will only be worth buying once the Emporers Clothes have been proven to be NON-EXISTANT in a court of law, and The Kingdom HAS BURNED. This place will be AWASH in vacancies, both residential & commercial.
There will be a time to Buy In Bend, but that time will NOT BE FOR AT LEAST A DECADE. ALL THE FRAUD WILL NEED TO BE WASHED OUT. All the SCOUNDRELS will have to be THROWN OUT OF OFFICE. We will have to be cleansed, and that isn't even close to happening, if anything our elected slate of Councilors further delays the timeline to recovery. Probably 5-10 years, yet again.
We're fucked. Bend is FUCKED.
#### THE FOLLOWING IS INFORMATION FROM THE 1031 BEND CH-11 FILING ##
VIA juniper-ridge-info.blogspot.com
Monday, December 29, 2008
FLASH--Summit 1031 Bankruptcy Petition
Just received a copy. Here is the link. Right-click to download and save.
Couple of notes on first read:
1) It is dated 12/19/08, after the initial 12/15/08 statement.
2) The retainer was $275,000 or $250,000. It's unclear, as one clause says Sussman Shank has received $275,000 before the filing, and another states "...retainer in the sum of $250,000."
3) Of the 20 largest unsecured debts, all from unfinished exchanges, only three are from Oregon: the Tennant's in Portland, $1.035.266.66; Home Valley Bank in Grants Pass, $547,936.88; and the Miller's in Bend, $756,598.82. The other 17 are scattered around the west.
4) A rough tally of the total owed to the top 20 creditors is $21,560,550. The largest creditor is the Alessandro Family Trust, from Rancho Santa Fe, CA, at $2,999,961.
5) The four principals-Neuman, Stevens, Lyon, and Larkin-each own 25% of the company.
The matrix of debtors is not included, so there is a lot more not shown. I'll try to get it from the court.
After I run OCR on the filing I'll update the download with a copy that is searchable.
Many thanks to Ryan Frank at the Oregonian for forwarding this to me. He has a copy and a post about it on his blog as well: blog.oregonlive.com/frontporch/
Download link: http://www.juniper-ridge.info/summit.bk.filing.pdf
