"David Aman Committed Fraud on the Courts. David Aman knew that others brought up Tax Concerns Yet told Judge Marco Hernandez it was ONLY Me. Fraud on the Courts."
Click the Document Above and you See there were Issues brought up by Professionals inside the Summit Bankruptcy and Blogger Crystal Cox was Simply Reporting on the Issue.
Originally Posted On Obsidian Finance Sucks at
"Kevin Padrick Illegally Seized Bank Account. Federal Trustee, Oregon Bankruptcy seems to be above the law and accountable to No One."
SUMMARY OF ACTIONS TAKEN BY THE TRUSTEE AND COUNSEL VIOLATING PROVISIONS OF SEVERAL OREGON LIMITED LIABILITY COMPANIES RESPECTIVE OPERATING AGREEMENTS.
Archives from Summit1031BkJustice.com
Originally Posted At
""Apparently, the Trustee believes that he somehow is not required to comply with the provisions of the Operating Agreement or Oregon law."
- Trustee’s Purported Management Rights. By your e‑mail, on behalf of the Trustee, you provide to me a copy of a Memorandum of Action of the Members of Klondike, purporting to remove the Managers of Klondike and appointing the Trustee as the Manager of Klondike, and purporting to terminate my law firm as counsel for Klondike.
The Trustee’s actions in this regard are improper, and violate the provisions of the Operating Agreement of Klondike, as well as applicable Oregon law.
The effect of the Summit Members’ transfer of their interests in Klondike is very clear: they were able to transfer to the Summit estate only their economic interests in Klondike, and not any management rights or other rights as members of Klondike. In this regard, please take note of the following:
- Section 8.1 of the Operating Agreement provides that any transfer of a member’s interest in Klondike is “prohibited,” and that no member may transfer his interest in Klondike.
Section 8.3.1 of the Operating Agreement provides that the transferee of a member’s interest will not be admitted as a substitute member without the unanimous written consent of the non‑transferring members. Such consent has not been obtained by the Trustee, and will not be given either by Ms. Studebaker or by Ms. Tyler.
- Oregon law is clear that the Summit Members’ transfer of their interests to the Trustee allows the Trustee to have recourse only to the members’ economic interests in Klondike, and that the Trustee does not become, as a result of such transfer, a member in Klondike or obtain any right to participate in the governance of Klondike. See, O.R.S. 63.259 (“Rights of judgment creditor against a member.
On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the membership interest of the member with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the membership interest.”).
The Trustee has no greater rights with respect to Klondike than he has under the Operating Agreement and under applicable Oregon law. See, Butner v. United States, 440 U.S. 48 (1979).
- Pursuant to Section 4.2 of the Operating Agreement, a Manager for Klondike may be elected and removed by a vote of members owning not less than 60% of the ownership interests in Klondike. By the Memorandum of Action, the Trustee asserts that he holds 63.32% of the ownership interests in Klondike, and, accordingly, that he is entitled to appoint himself as Manager.
As set forth hereinabove, pursuant to the Operating Agreement and governing Oregon law, the Trustee has no right to vote the interests that were assigned to him by the Summit Members.
However, even assuming, for the sake of argument, that the Trustee were entitled to vote the interests of the Summit Members, the Trustee still would not have the requisite votes to appoint himself as the Manager of Klondike.
While it may be correct that the Summit Members had at one point an aggregate of 63.32% of the ownership interests in Klondike, they no longer have such ownership interests.
By reason of the Summit Members’ failure to make required capital contributions, as of April 30, 2009, the Summit Members had only 58.07% of the ownership interests in Klondike, and Ms. Studebaker and Ms. Tyler had 41.93% of the ownership interests in Klondike.
Transmitted for your review is a chart, prepared by Ms. Studebaker, setting forth the ownership interest changes that occurred by reason of the Summit Members’ failure to make the required capital contributions.
Governing Oregon law is consistent with this result. Moreover, even if the Trustee had the right to participate in the governance of Klondike ‑‑ and he does not ‑‑ he does not control the percentage of ownership interests in Klondike necessary to appoint himself Manager. The Trustee’s attempt to seize control of management of Klondike, therefore, is blatantly improper, violates the rights of the members of Klondike, and is ineffective.
- Trustee’s Improper Disregard of Purchase Offer. As pointed out in my June 3, 2009 letter toLeon Simson of your office, the Summit Members’ failure to make capital contributions required pursuant to Section 3.3 of the Operating Agreement constitutes a “cessation event” pursuant to Section 9.1(e) of the Operating Agreement.
Moreover, pursuant to Section 9.1(g) of the Operating Agreement, the Summit Members’ bankruptcies, as such term is defined in O.R.S. 63.001(3) (“bankruptcy” includes a member’s “seeking, consenting to or acquiescing in the appointment of a trustee, receiver or liquidator of the member or of all or any substantial part of the member’s properties”) also constitutes a cessation event.
Pursuant to Section 9.3 of the Operating Agreement, upon the occurrence of a cessation event as to a member of Klondike, the remaining members of Klondike may elect to purchase the units owned by the affected members on the terms set forth in Section 9.5 of the Operating Agreement, at 80% of the value of such units, in accordance with the valuation procedures established by Section 9.4 of the Operating Agreement.
On April 20, 2009, Ms. Studebaker’s counsel sent to Mr. Simson, by overnight mail, a copy of Purchase Offer. By the Purchase Offer, Ms. Studebaker provided to the Trustee extensive information regarding the subject real property and regarding Klondike’s financial affairs in order to facilitate the Trustee’s ability to evaluate the fairness of the Purchase Offer.
By the Purchase Offer, Ms. Studebaker offered to purchase the Summit Members’ interests for an amount in excess of any legitimate valuation of such interests. Ms. Studebaker’s offer is a fair offer and should be pursued by the Trustee for the benefit of the Summit creditors.
While the Trustee received Ms. Studebaker’s Purchase Offer more than two months ago, he has not bothered to even respond to her Purchase Offer. Moreover, he has not bothered to respond substantively to my June 3, 2009 e‑mail to Mr. Simson, requesting the Trustee’s cooperation, in accordance with the provisions of the Operating Agreement, regarding the Purchase Offer.
Instead, the Trustee has chosen to employ this brazen “power play,” asserting rights to which he clearly is not entitled under the Operating Agreement or under Oregon law.
Apparently, the Trustee believes that he somehow is not required to comply with the provisions of the Operating Agreement or Oregon law.
If the Trustee does not respond to this e‑mail by July 2, 2009, Klondike will consider pursuing all appropriate remedies against the Trustee. The Trustee then will have an opportunity to explain to the Bankruptcy Court why he apparently is intent on exceeding his duties as a trustee and on ignoring opportunities to maximize the value of estate assets, to the detriment of the Summit creditors, and to justify to the Bankruptcy Court and to the Summit creditors the value of his services in this regard.
This is an "after the fact" situation, whereby a company goes bankrupt and the victims that lose money then seem to have no rights. This bankruptcy was a bit different in a way of it involve a large amount of people in many states, and they were mostly just people, vs companies and vendors which are usually involved in a bankruptcy. This was a 1031 Exchange Company in which had the money of many real estate investors, this was their life's savings, life's work and after the bankruptcy filing the money was in the control of Kevin Padrick, Bankruptcy Trustee as far as I understand it.
So they sued me in January of 2011, and now my Trial is at the End of Nov. 2011, and All I did was tell the story of other people. And post a link to that blog for tons more information for the reader to look into. It is my believe that Kevin Padrick of Obsidian Finance Group simply wanted to silence my blogs as I am very good at Search Engine Marketing and use this talent to get victims heard and to expose possible corruption in the court system.
Originally Posted on Obsidian Finance Sucks at
More information Regarding the Summit 1031 Bankruptcy and the Role of Tonkon Torp Law Firms Attorneys David Aman and Leon Simson, as well as Obsidian Finance Group's Kevin Padrick, Ewan Rose, Patty Whittington and David W. Brown.
Click Below for Full Objection to the Fees of Kevin Padrick, Obsidian Finance Group and Tonkon Torp.