Many roads lead to hell, and some of them wander through patches of good intentions on the way. Some don't.
I know a man--very successful at property development in the 1970s--who lost all his investors' money and all his own in the 1980s. He was very smart, honest, and overconfident by the end. His waterloo was co-housing for the elderly. Nobody wanted to buy into that ambitious experiment. It was so sad; none of his investors even sued him.
Referencing an earlier observation I had regarding the intersection of western US "new conforming" loan limits and ski country...I was initially confused by the reference to "Prineville", wondering why anyone would consider Oregon real estate east of US-97 to be a form of 401-K. In contrast the article references other, more likely, locations, most notably Bend.
Not saying that flipping substitutes for a 401-K, whether or not anyone bothers to actually build the homes. Rather, some of this flipping-for-retirement seems to be in areas that continue to be pricey, though one wonders how much longer.
Thanks for the advice about that last paragraph. I have a glass of Syrah...I'd hate to be cleaning that off my monitor.
The plan seemed straightforward enough: Desert Sun would build a home for employees, taking care of design, materials and construction. Employees could buy the completed home from Desert Sun at cost and assume monthly mortgage payments, or sell it and split proceeds 50-50 with the company.
The 50-50 split sounds like the sale of an unregistered security, not just the sale of a lot or home.
The difference is that buyers of unregistered securities have a right to recision (cancel and get a full refund) under blue sky laws of most states.
The deflationist argument would perhaps have some credence if not for the sheer stupidity of Americans. Deflation can only occur when only intelligent people have access to capital (see US in 1930s prior to rabble having power to elect politicians based on lapel pins and bread and circuses and 1990s Japan. America's political power is more comparable to Zimbabwe's political power - not in power because of their merit/intelligence.) Reading that last paragraph of the article demonstrates said American stupidity. I believe that consumers will continue to purchase plasma televisions and inflated 500K homes on 27K/year incomes as long as banks continue to lend. With the federal government doing everything in its power to keep banks lending to prop bubbles in residential RE/commercial RE/FIRE economy/debt creation in general combined with American stupidity, the monetization of all debt will be occurring at some time between 2010 and 2018. This hyperinflation will be preceded by a period of severe inflation that we are just now beginning to experience. Just think about all the measures Bernanke has taken to keep institutions solvent when the poop hasn't even hit the fan yet. Meanwhile you Americans don't realize your standard of living has decreased because it has happened so gradually. Did you know what an assembly line worker prior to the 70s recession could buy on his salary (with no wife working) without taking out much debt? House with a 5-15 year mortgage with 20% down, pay for 2-3 children to go to college, yearly vacation, new gizmos that were state-of-art at the time, staying in the hospital overnight without insurance, dental visits without insurance, doctor visits without insurance, food and energy used up less of his real income. Conversely have you ever seen Japan or Dubai or Switzerland or Germany? Their societies are about 5-10 years ahead of you in terms of technology. Soon joining them will be Brazil,China and India as well as Litter Tiger economies. I'm sure you have plenty of statistics to tell me that Americans have a higher PPP and such, but I prefer to believe my lying eyes. Wealth is the means of production and you don't have that anymore. Even in emerging tech such as solar, the start ups AND production are in Germany, Japan, China and even Abu Dhabi. Americans are also very primitive and superstitious (See: stem cell research and creationist theory) Soon your professors and intellectuals will flee (See Harvard Medical School in Dubai) and you won't even have that edge anymore.
What's the betting the land they sold to their own builders was bought from...themselves? It also sounds a lot like the mortgages were going straight into cashflow.
"According to people quizzed by the agents, investigators are focusing on Desert Sun's financing and its relationship with a bevy of Oregon banks, which threw millions of dollars at the company. "
I wonder how many of these banks are FDIC insured?
Remember kids: we shouldn't claw back money from the people who benefited from this debacle. Rather we should commit tax payer dollars to bailing out the system that made fraud of this scale possible.
"The median home value in Eugene in 2006 was $224,900, about four times median family income. The median home value in Bend was $345,400 just under six times the median family income. "
Interesting coincidence with the economistview blog about a bubble in Bend, Oregon...
"The median home value in Eugene in 2006 was $224,900, about four times median family income. The median home value in Bend was $345,400 just under six times the median family income. "
In general I'm not sure it makes sense to compare housing prices (relative to median income) in tourist-intensive areas with the same ratio in other areas. If SF Bay Area people are buying houses in Tahoe then Tahoe prices may respond independent of Tahoe incomes. I've always thought this must suck for people trying to make a living in Tahoe, but even pre-bubble the market paid no attention to my preferences. Bend seems to me to be in-between the two extremes, a local-based economy together with a tourist-based economy, but probably on the tourist side of the line.
Attorney Bill Palmer represents her and countless other citizens in a class action lawsuit against the state of California.
"They figured the safety-deposit box was safer than keeping it under the mattress," Palmer said. "In the case of a lot of citizens, they were wrong, weren't they?"
Bitter employees? Well, if my emoloyer flipped a lot for a $110,000 gain in one day without my knowledge I might feel a little bitterness too, while making bankruptcy arrangements. Those desert sun principals might want to be careful - bitterness may turn into anger.
[In general I'm not sure it makes sense to compare housing prices (relative to median income)]
I agree. During the bubble many flippers and equity locust buyers were purchasing 4+ homes on a median income. At one point the bulk of sales were second homes. Kind of makes the statistic meaningless.
Ooo... he bought a Ferrari. He must be a real man. What a street smart, clever, cool guy. Ladies. Time to line up. Yeah... over there... under the 'Loser' sign.
Anonymous, I do not understand anyone who would use a bank safety deposit box. I use a private vault service, it elevates some of the concerns I have with banks storing my valuables.
In 1997 the government of Albania disintegrated and many Albanian people were impoverished due to government sponsored ponzi schemes. In Eat the Rich, PJ ORourke went to Albania and interviewed the people there to find out what they were thinking. He found that in the begining, "The Albanians didn't believe they were the victims of a scam, they believed they were the perpetrators. . . . "
"Laws that are not enforced, perhaps, should not be laws."
Was it Oliver Wendell Holmes who commented that unenforced laws, or laws enforced arbitrarily, bred contempt for the rule of law itself? Somebody help me out here.
Last spring I was passing through central Oregon and stopped in at a truck stop / convenience store for lunch. The GPS was telling me that I might not find another restuarant for 30 miles, so that was as good as I was going to find.
Service was slow. It took an hour to get a roast beef sandwich. While I'm waiting - forever - the 3-4 employees were sitting around yacking about what they and their friends had recently sold and bought their homes for. Every one of them was in the $400K-$600K range.
TFMH stands for too fun making Hooey! Funny money wins. I love game of Life and Monopoly, outrageous risk and fancy accounting means everybody loses except me!
In this situation, somebody needs to be going to jail. Several sombodies.
A person with kids making 27 gets a 400k loan. Without any extenuating circumstances like, say , having 100 million in assets.
WHO let that through underwriting? Who possibly thought it was a good idea?
I feel bad for the woman, who has been screwed-- generally you do not think that your employer is using you to committ fraud.
But somebody did something so that loan would meet underwriting- did thye just add a bunch of 000's? Because at 270k per year, a 400k loan isn't bad at all.....
Well, I thought this bank holiday notice was a naive joke, but after these thieves got another line of credit maybe it will pick up some traction. It should for the bank that gave Fitzsimmons a line of credit for his new RICO adventure.
And when Oregonians are reading that they are sure glad it isn't them, guess who's picking up the social safety net costs for the health care, education, police and fire protection, basic infrastructure, disability payemnts, unemployment ... etc.
Knowing their employer he probably 1099'd every one of them, so unemployment probably isn't even an option.
The more I see these stories, the more I think that litigation is the only aversion therapy we're going to be able to create for this type of behavior (and perhaps the only way to change the rules of the game).
Re: the last paragraph and Columbia River Bank making large loans in FEBRUARY on the basis - we presume - of inflated real estate assets... you don't need to worry about them!
Thanks to the Fed and it's acceptance of dodgy assets, the Bank has no doubt been able to transfer the risk neatly to you, the ultimate Fed financial bag holder!
I gotta buy some stock in that bank - clearly it IS run by geniuses...
I think that everybody who has an opinion in this should stop reading everything that they read. If we all beleived what we read we would really be in a world of hurt!!! I think that it's sad that people want to point fingures when things don't work out the way they wanted them. I find it funny that the employees found it to be a good deal when somebody offered to build them a house at cost. A benefit to them! But everybody must be missing that!!
Here is what really sucks in this situation, is that everyone forgets there is two sides to every story. I just so happen to know the owner personally and he just so happens to not be the tyrant everyone is making him out to be. He tried to do something good for so called friends and was stabbed in the back (repeatedly). I laugh at the article if people only really new the truth. The truth about employees forging documents or stealing money, how about the ones who up and quit leaving the their mess for someone else to pick up. I watched from a far wondering how it was ever going to stay a float with some of the people he gave a chance, or how about those with the second and third chances. Not one man could do all that he did on their own, and he picked a lot of piss poor people to help him. Probably the biggest down fall of the company. Anyway to get back to this housing problem, personally I think, anyone of any intelligence knows that buying a house is a risk and can be a liability in many aspects. Most smart people plan ahead and do not count there eggs before they are in the basket. These people knew what they were getting themselves into (I mean how could you not, making that big of an investment) and all they could see were dollar signs. If you can't afford a five hundred thousand dollar house you should have thought of that before you signed the papers. After all really was anyone twisting your arm? Whats interesting is I saw how they were all on board when things are going great and run as fast as they can when it gets tough. It reminds me of sheep (mindless). I was offered this housing program once, I remember thinking to myself, "I can't afford this at this point in my life", regardless of what anyone said to me. I remember thinking,"I can't for see financially sustaining a payment like this at this point in my life". For those reasons I did not do it. Look where I stand not a bitter ex-employee pointing my finger. The truth is he is the business so for that he has to take the fall for all those who did him wrong as well as the company. It makes me so sad and angry because he is a great person, who has done remarkable things for many people. If I were him I would start calling everyone out on all the horrible things they did, I Would not take the fall like he is (much stronger person than I will ever be). He never deserved this but you know he is the type of person who takes the fall a fall that should have never happened to him. As for the Ferrari a car that represents relentless hours of hard work (literally watched the guy work 18 hour days), a car that was much deserved I imagine will not be around much longer. While the world might think there is all this money for himself probably should think again. As for the last paragraph I can't wait to see the comeback. So what if he took a 3.4 million dollar loan to try again, so what if he is trying to start something for the people that did stand by his side. To those of you smiling happy this happen to him you just pruned the tree you didn't chop it down. I leave you with some words of wisdom he gave to me. I carry it every day when my life gets tough and I want to give up. "NOTHING GOOD COMES OUT OF ANYTHING THAT IS EASY". You will rise above these hard times Tyler I just know it, your going to be great. There was never nothing easy about anything you did this is just a minor road block. To those of you in financial trouble now you have to start looking at the big picture. You will not die losing the house or property, your credit will not be ruined forever. Be thankful you had the opportunity, be thankful you do not live in a country where your biggest worry is surviving. Rent a house for a while build your credit score. Society as modified you into thinking you must own your own nest to show success. Stop being so bitter, your bitterness will only bring more misfortune. Stop and think what if you were him. Would you really want to wear his shoes? Anyone who was involved knows he never wanted this to happen to anyone, he always wanted great things for everyone he was involved with(nobody deep down can deny that). Everyone in this situation will be fine no matter what, and in the end it won't really matter.
AZ- I'm not blaming the employees of this company. I am however, blaming the hell out of whomever got the idea to start blatantly lying on the paperwork about income & assets.
Therealtruth sounds like she has been popping pills with Tyler too much.
You will rise above these hard times Tyler I just know it, your going to be great.
His greatness will be limited by the bars of his prison cell for the next couple decades.
Tyler promised all of his employees that he would buy them out of their houses anytime they wanted out of the program. In fact he even said that if an employee resigned, retired, or got fired, they would be forced to let Tyler take over their house. People who pound nails for a living and see their boss drive exotic sports cars naturally assume they are making a safe move.
Tyler also hired and fired based perceived credit worthiness and housing program participation. There was arm twisting.
Tyler knew exactly what he was doing and his narcissism prevented him from seeing the consequences. There will be parties all over Central Oregon when this criminal is taken off the streets.
Tyler's only intent was to use these poor soles as an alternetive means of getting more money, "STRAW BORROWER". The only good this scum bag has done for people is to support unmoral activities. If his heart was truely with the employee's best intent, then why would he or Jeremey Kendall keep going down the road they where if it was on the "up and up" They knew the only way to get these people qualified was to cheat, but when the Dan Pena's, Dana Vincent's, Dell Barber's, and oh don't forget Sean Little's are helping and letting it happen,"go figure". Let's ask the question,"HOW MUCH DID THOSE FOUR MAKE OFF OF THE LOAN FEES, $20,000's of thousands. The only way Tyler knows how to get ahead is to lie and steal, just like his new "IDEA" they might let him have his pharamcey in prison.
TF is a low life loser dirt bag. Everyone in Bend knows this and has known this for years. He squandered over 15 million with nothing to show. The banks involved are even dumber. Dell Barbr lost his license and got fined some 75 grand by the state for loan fraud, forgery and a bunch of other illegal stuff. According to rumors the state had been after this low life for years. CR Bank, Community First Bank and West Coast loaned out construction money based on loans from the worst offenders in the area. How could they fall into this? They fell into this mess because they got greedy. When banks hire people who have had no prior mortgage lending experience and employ managers who barely have GED's who get greedy about profits and shut off their brains, then they get to bite the bullet. The CEO's and officers of these banks should be voted out by the share holders.
Tyler Fitzsimons has been stealing from people for years. The common denominator in this scandal is most of these people are all from Prineville and got the lust for easy money. Prineville is a great small town USA with an honest population base and home of Les Schwab.
It is not surprising banks are losing money when they are operated by losers who have no idea what they are getting into. Would it not be a good indicator when other banks have turned them down?
It is not correct when we the tax payers have to bail out banks like this thru the FDIC and we all get stuck holding the bag with higher taxes due to the incompetency of a few.
The talk of the town is how Tyler also had a nose candy habit you could not control. He became just like any other dirtbag looking to steal from someone else to get his fix.
Hearsay..... (Inside tip)
The authorities might want to take a closer look at a man named SID (X - felon) who allegedly was involved with insurance fraud.
Mr. Fitzsimons paid him off for burning down an old home that sat on 2AC (+/-) of developable land in Redmond Oregon on Salmon Ave. If its true, the story will surface.
Hans Tyler prayed on his daughter first to get money. Apparently now they own a pharmacy together. After Tyler locked up the Pharmacy, he quickly dumped the daughter (Amy). Hans pays Tyler in cash; because Tyler has so many judgments against him he cannot have a checking account. Hans has the Ferrari (Tylers Ferrari), paid 150K cash. Hans is another one of Tylers victims. Tyler has stolen over 500K from his own family, even taking 90K from a young women that worked for him, promising to pay her back. Tyler belongs in prison. More will surface -Tylers web of deceit and lies.....
a sucker born every minute - and 2 to take them, no?
Jail is too good
second...
Enron, Bear Stearns, etc. -- always the employees that end up the biggest koolaid consumers.
Many roads lead to hell, and some of them wander through patches of good intentions on the way. Some don't.
I know a man--very successful at property development in the 1970s--who lost all his investors' money and all his own in the 1980s. He was very smart, honest, and overconfident by the end. His waterloo was co-housing for the elderly. Nobody wanted to buy into that ambitious experiment. It was so sad; none of his investors even sued him.
Referencing an earlier observation I had regarding the intersection of western US "new conforming" loan limits and ski country...I was initially confused by the reference to "Prineville", wondering why anyone would consider Oregon real estate east of US-97 to be a form of 401-K. In contrast the article references other, more likely, locations, most notably Bend.
Not saying that flipping substitutes for a 401-K, whether or not anyone bothers to actually build the homes. Rather, some of this flipping-for-retirement seems to be in areas that continue to be pricey, though one wonders how much longer.
Thanks for the advice about that last paragraph. I have a glass of Syrah...I'd hate to be cleaning that off my monitor.
The 50-50 split sounds like the sale of an unregistered security, not just the sale of a lot or home.
The difference is that buyers of unregistered securities have a right to recision (cancel and get a full refund) under blue sky laws of most states.
Rich--Maybe they can argue it is an unregistered security and get off the hook that way. Even tho it looks like something else. .
As to the last paragraph. . .unbelievable. Even I who know how stupid banks are, would
never have expected that.
Buying a house as a 401k? Have a friend who was a mortgage broker, built a house for $1mm on spec. Couldn't sell it and had to do a short sale.
Said he had to do it because he didn't have a retirement plan.
Umm, yeah how many retirement plans pay off 100% returns (or lose it all).
jb
Fraud by sticky-fingered lending officers caused a number of regional bank failures in the 1980's. Just sayin'.
Glad to see you found it interesting Tanta; especially that last paragraph. I think the reporter put that in for people like us.
People in Oregon are still in denial because our home prices havent fallen that much but were getting there
Laws that are not enforced, perhaps, should not be laws.
The deflationist argument would perhaps have some credence if not for the sheer stupidity of Americans. Deflation can only occur when only intelligent people have access to capital (see US in 1930s prior to rabble having power to elect politicians based on lapel pins and bread and circuses and 1990s Japan. America's political power is more comparable to Zimbabwe's political power - not in power because of their merit/intelligence.) Reading that last paragraph of the article demonstrates said American stupidity. I believe that consumers will continue to purchase plasma televisions and inflated 500K homes on 27K/year incomes as long as banks continue to lend. With the federal government doing everything in its power to keep banks lending to prop bubbles in residential RE/commercial RE/FIRE economy/debt creation in general combined with American stupidity, the monetization of all debt will be occurring at some time between 2010 and 2018. This hyperinflation will be preceded by a period of severe inflation that we are just now beginning to experience. Just think about all the measures Bernanke has taken to keep institutions solvent when the poop hasn't even hit the fan yet. Meanwhile you Americans don't realize your standard of living has decreased because it has happened so gradually. Did you know what an assembly line worker prior to the 70s recession could buy on his salary (with no wife working) without taking out much debt? House with a 5-15 year mortgage with 20% down, pay for 2-3 children to go to college, yearly vacation, new gizmos that were state-of-art at the time, staying in the hospital overnight without insurance, dental visits without insurance, doctor visits without insurance, food and energy used up less of his real income. Conversely have you ever seen Japan or Dubai or Switzerland or Germany? Their societies are about 5-10 years ahead of you in terms of technology. Soon joining them will be Brazil,China and India as well as Litter Tiger economies. I'm sure you have plenty of statistics to tell me that Americans have a higher PPP and such, but I prefer to believe my lying eyes. Wealth is the means of production and you don't have that anymore. Even in emerging tech such as solar, the start ups AND production are in Germany, Japan, China and even Abu Dhabi. Americans are also very primitive and superstitious (See: stem cell research and creationist theory) Soon your professors and intellectuals will flee (See Harvard Medical School in Dubai) and you won't even have that edge anymore.
What's the betting the land they sold to their own builders was bought from...themselves? It also sounds a lot like the mortgages were going straight into cashflow.
where were the banking regulators during all of this?
"According to people quizzed by the agents, investigators are focusing on Desert Sun's financing and its relationship with a bevy of Oregon banks, which threw millions of dollars at the company. "
I wonder how many of these banks are FDIC insured?
Remember kids: we shouldn't claw back money from the people who benefited from this debacle. Rather we should commit tax payer dollars to bailing out the system that made fraud of this scale possible.
Otherwise the terrorists have won. Or something.
Cheers,
prat
Economist's View: Bubbles, Not in the Abstract
"The median home value in Eugene in 2006 was $224,900, about four times median family income. The median home value in Bend was $345,400 just under six times the median family income. "
Interesting coincidence with the economistview blog about a bubble in Bend, Oregon...
"Columbia River Bank " ???
If you are in Oregon, make a run on that bank, its managers are incredibly stupid.
What a complete scam. This is not a sophisticated operation. I assume these guys are going to go to prison for quite a while.
A WONDERFUL story! and another reminder that if you give some people a clue,they will use it as a suppository.
"The median home value in Eugene in 2006 was $224,900, about four times median family income. The median home value in Bend was $345,400 just under six times the median family income. "
In general I'm not sure it makes sense to compare housing prices (relative to median income) in tourist-intensive areas with the same ratio in other areas. If SF Bay Area people are buying houses in Tahoe then Tahoe prices may respond independent of Tahoe incomes. I've always thought this must suck for people trying to make a living in Tahoe, but even pre-bubble the market paid no attention to my preferences. Bend seems to me to be in-between the two extremes, a local-based economy together with a tourist-based economy, but probably on the tourist side of the line.
Attorney Bill Palmer represents her and countless other citizens in a class action lawsuit against the state of California.
"They figured the safety-deposit box was safer than keeping it under the mattress," Palmer said. "In the case of a lot of citizens, they were wrong, weren't they?"
Not-So-Safe-Deposit Boxes: States Seize Citizens' Property to Balance Their Budgets
- ABC News
Lot of boning going on.
Bitter employees? Well, if my emoloyer flipped a lot for a $110,000 gain in one day without my knowledge I might feel a little bitterness too, while making bankruptcy arrangements. Those desert sun principals might want to be careful - bitterness may turn into anger.
[In general I'm not sure it makes sense to compare housing prices (relative to median income)]
I agree. During the bubble many flippers and equity locust buyers were purchasing 4+ homes on a median income. At one point the bulk of sales were second homes. Kind of makes the statistic meaningless.
Anon,
The ABC story refers to escheat, which is hardly new.
Well, yeah, but you usually have to give some notice. And if the boxholder has an acct there, they surely know who she is.
Ooo... he bought a Ferrari. He must be a real man. What a street smart, clever, cool guy. Ladies. Time to line up. Yeah... over there... under the 'Loser' sign.
Anonymous, I do not understand anyone who would use a bank safety deposit box. I use a private vault service, it elevates some of the concerns I have with banks storing my valuables.
24-7 Private Vaults - We draw the line for your peace of mind!
Columbia River Bank is unlikely to be innocent enough in this matter to be merely stupid, though I suppose time and further investigation will tell.
As for that last paragraph, well, it is their profession, isn't it? They won't quit unless enforced.
In 1997 the government of Albania disintegrated and many Albanian people were impoverished due to government sponsored ponzi schemes. In Eat the Rich, PJ ORourke went to Albania and interviewed the people there to find out what they were thinking. He found that in the begining, "The Albanians didn't believe they were the victims of a scam, they believed they were the perpetrators. . . . "
Sound Familiar?
Eat the Rich: A Treatise on Economics - Google Books
All of 2 visitors online! (despite the Tanta-lizing topic). And I'm one of them. But not for long. Bye!
"Laws that are not enforced, perhaps, should not be laws."
Was it Oliver Wendell Holmes who commented that unenforced laws, or laws enforced arbitrarily, bred contempt for the rule of law itself? Somebody help me out here.
generally ranged between $300,000 and $500,000
Is that poor writing?
Shouldn't the "and" be "to"?
RW: Arthur Koestler certainly thought it was the foundation for a police state.
ugh: No. It's "and" following "between" or "to" following "from".
Last spring I was passing through central Oregon and stopped in at a truck stop / convenience store for lunch. The GPS was telling me that I might not find another restuarant for 30 miles, so that was as good as I was going to find.
Service was slow. It took an hour to get a roast beef sandwich. While I'm waiting - forever - the 3-4 employees were sitting around yacking about what they and their friends had recently sold and bought their homes for. Every one of them was in the $400K-$600K range.
the faster the car, the smaller the penis
Yankee, addendum to your rule:
Unless said car (or motorcycle) is a racing vehicle. In that case it's the smaller the wallet...
TFMH stands for too fun making Hooey! Funny money wins. I love game of Life and Monopoly, outrageous risk and fancy accounting means everybody loses except me!
In this situation, somebody needs to be going to jail. Several sombodies.
A person with kids making 27 gets a 400k loan. Without any extenuating circumstances like, say , having 100 million in assets.
WHO let that through underwriting? Who possibly thought it was a good idea?
I feel bad for the woman, who has been screwed-- generally you do not think that your employer is using you to committ fraud.
But somebody did something so that loan would meet underwriting- did thye just add a bunch of 000's? Because at 270k per year, a 400k loan isn't bad at all.....
Well, I thought this bank holiday notice was a naive joke, but after these thieves got another line of credit maybe it will pick up some traction. It should for the bank that gave Fitzsimmons a line of credit for his new RICO adventure.
http://thisjune5th.com/images/Public_Notice_lg.jpg
@ Yankee | 05.18.08 - 11:09 pm | #
Does it count if I drive very slowly?
Hm...at the 1st page he is 29 and it says at the next page that he founded the company in 2004, aged 19. Not adding up.
I'm going to bed.
Typical lying sacks of shit.
They were all begging to get into the deal, and now that the music stopped they claim to be victims.
And when Oregonians are reading that they are sure glad it isn't them, guess who's picking up the social safety net costs for the health care, education, police and fire protection, basic infrastructure, disability payemnts, unemployment ... etc.
Knowing their employer he probably 1099'd every one of them, so unemployment probably isn't even an option.
The more I see these stories, the more I think that litigation is the only aversion therapy we're going to be able to create for this type of behavior (and perhaps the only way to change the rules of the game).
MLM meets real estate. And I thought it was just for
franchisees. Whoodathunkit?
Re: the last paragraph and Columbia River Bank making large loans in FEBRUARY on the basis - we presume - of inflated real estate assets... you don't need to worry about them!
Thanks to the Fed and it's acceptance of dodgy assets, the Bank has no doubt been able to transfer the risk neatly to you, the ultimate Fed financial bag holder!
I gotta buy some stock in that bank - clearly it IS run by geniuses...
The symbol is CBBO in case anyone wants to bet on the IQ of the bank's managers.
If Jas starts in with the CROOKZ! bit on this one, I may be in his corner for once.
Hm...at the 1st page he is 29 and it says at the next page that he founded the company in 2004, aged 19. Not adding up.
It said that he started his first construction company at 19. Desert Sun was started in 2004(not his first company).
For anything that is not a 30 years fixed interest rate plain vanilla mortgage, the GrandPa Axiom still hold true: GYOFLD!!
Get Your Own Freaking Lawyer, Damnit!
As for Fitzsimmons and Columbia River Bank...some jail time would definetely be an option.
I am not done yet, but this struck me:
"The program apparently worked for some employees, particularly for those who joined early."
Ya think?
Also, those guys are going to give motocross riders a bad name, something I didn't think was possible.
I think that everybody who has an opinion in this should stop reading everything that they read. If we all beleived what we read we would really be in a world of hurt!!! I think that it's sad that people want to point fingures when things don't work out the way they wanted them. I find it funny that the employees found it to be a good deal when somebody offered to build them a house at cost. A benefit to them! But everybody must be missing that!!
Here is what really sucks in this situation, is that everyone forgets there is two sides to every story. I just so happen to know the owner personally and he just so happens to not be the tyrant everyone is making him out to be. He tried to do something good for so called friends and was stabbed in the back (repeatedly). I laugh at the article if people only really new the truth. The truth about employees forging documents or stealing money, how about the ones who up and quit leaving the their mess for someone else to pick up. I watched from a far wondering how it was ever going to stay a float with some of the people he gave a chance, or how about those with the second and third chances. Not one man could do all that he did on their own, and he picked a lot of piss poor people to help him. Probably the biggest down fall of the company. Anyway to get back to this housing problem, personally I think, anyone of any intelligence knows that buying a house is a risk and can be a liability in many aspects. Most smart people plan ahead and do not count there eggs before they are in the basket. These people knew what they were getting themselves into (I mean how could you not, making that big of an investment) and all they could see were dollar signs. If you can't afford a five hundred thousand dollar house you should have thought of that before you signed the papers. After all really was anyone twisting your arm? Whats interesting is I saw how they were all on board when things are going great and run as fast as they can when it gets tough. It reminds me of sheep (mindless). I was offered this housing program once, I remember thinking to myself, "I can't afford this at this point in my life", regardless of what anyone said to me. I remember thinking,"I can't for see financially sustaining a payment like this at this point in my life". For those reasons I did not do it. Look where I stand not a bitter ex-employee pointing my finger. The truth is he is the business so for that he has to take the fall for all those who did him wrong as well as the company. It makes me so sad and angry because he is a great person, who has done remarkable things for many people. If I were him I would start calling everyone out on all the horrible things they did, I Would not take the fall like he is (much stronger person than I will ever be). He never deserved this but you know he is the type of person who takes the fall a fall that should have never happened to him. As for the Ferrari a car that represents relentless hours of hard work (literally watched the guy work 18 hour days), a car that was much deserved I imagine will not be around much longer. While the world might think there is all this money for himself probably should think again. As for the last paragraph I can't wait to see the comeback. So what if he took a 3.4 million dollar loan to try again, so what if he is trying to start something for the people that did stand by his side. To those of you smiling happy this happen to him you just pruned the tree you didn't chop it down. I leave you with some words of wisdom he gave to me. I carry it every day when my life gets tough and I want to give up. "NOTHING GOOD COMES OUT OF ANYTHING THAT IS EASY". You will rise above these hard times Tyler I just know it, your going to be great. There was never nothing easy about anything you did this is just a minor road block. To those of you in financial trouble now you have to start looking at the big picture. You will not die losing the house or property, your credit will not be ruined forever. Be thankful you had the opportunity, be thankful you do not live in a country where your biggest worry is surviving. Rent a house for a while build your credit score. Society as modified you into thinking you must own your own nest to show success. Stop being so bitter, your bitterness will only bring more misfortune. Stop and think what if you were him. Would you really want to wear his shoes? Anyone who was involved knows he never wanted this to happen to anyone, he always wanted great things for everyone he was involved with(nobody deep down can deny that). Everyone in this situation will be fine no matter what, and in the end it won't really matter.
AZ- I'm not blaming the employees of this company. I am however, blaming the hell out of whomever got the idea to start blatantly lying on the paperwork about income & assets.
Therealtruth sounds like she has been popping pills with Tyler too much.
You will rise above these hard times Tyler I just know it, your going to be great.
His greatness will be limited by the bars of his prison cell for the next couple decades.
Tyler promised all of his employees that he would buy them out of their houses anytime they wanted out of the program. In fact he even said that if an employee resigned, retired, or got fired, they would be forced to let Tyler take over their house. People who pound nails for a living and see their boss drive exotic sports cars naturally assume they are making a safe move.
Tyler also hired and fired based perceived credit worthiness and housing program participation. There was arm twisting.
Tyler knew exactly what he was doing and his narcissism prevented him from seeing the consequences. There will be parties all over Central Oregon when this criminal is taken off the streets.
Tyler's only intent was to use these poor soles as an alternetive means of getting more money, "STRAW BORROWER". The only good this scum bag has done for people is to support unmoral activities. If his heart was truely with the employee's best intent, then why would he or Jeremey Kendall keep going down the road they where if it was on the "up and up" They knew the only way to get these people qualified was to cheat, but when the Dan Pena's, Dana Vincent's, Dell Barber's, and oh don't forget Sean Little's are helping and letting it happen,"go figure". Let's ask the question,"HOW MUCH DID THOSE FOUR MAKE OFF OF THE LOAN FEES, $20,000's of thousands. The only way Tyler knows how to get ahead is to lie and steal, just like his new "IDEA" they might let him have his pharamcey in prison.
TF is a low life loser dirt bag. Everyone in Bend knows this and has known this for years. He squandered over 15 million with nothing to show. The banks involved are even dumber. Dell Barbr lost his license and got fined some 75 grand by the state for loan fraud, forgery and a bunch of other illegal stuff. According to rumors the state had been after this low life for years. CR Bank, Community First Bank and West Coast loaned out construction money based on loans from the worst offenders in the area. How could they fall into this? They fell into this mess because they got greedy. When banks hire people who have had no prior mortgage lending experience and employ managers who barely have GED's who get greedy about profits and shut off their brains, then they get to bite the bullet. The CEO's and officers of these banks should be voted out by the share holders.
Tyler Fitzsimons has been stealing from people for years. The common denominator in this scandal is most of these people are all from Prineville and got the lust for easy money. Prineville is a great small town USA with an honest population base and home of Les Schwab.
It is not surprising banks are losing money when they are operated by losers who have no idea what they are getting into. Would it not be a good indicator when other banks have turned them down?
It is not correct when we the tax payers have to bail out banks like this thru the FDIC and we all get stuck holding the bag with higher taxes due to the incompetency of a few.
The banks need a good house cleaning.
The talk of the town is how Tyler also had a nose candy habit you could not control. He became just like any other dirtbag looking to steal from someone else to get his fix.
Hearsay..... (Inside tip)
The authorities might want to take a closer look at a man named SID (X - felon) who allegedly was involved with insurance fraud.
Mr. Fitzsimons paid him off for burning down an old home that sat on 2AC (+/-) of developable land in Redmond Oregon on Salmon Ave. If its true, the story will surface.