Dear Fellow Investor,
I just want to get a show of hands so we can see how many people to expect today. How many of you think you will be able to attend the Press Conference? Just respond to this message so I can give the organizers a count. Here are the details again:
When: Thursday February 28th
12:30 PM (to assemble).
Where: Embassy Suites Hotel - Orange County Airport North
Santa Ana Room
1325 E. Dyer Rd.
Santa Ana, CA 92705
(714) 241-3800
The press conference is expected to start at 1:00 PM.
On the Point Center Bankruptcy:
It seems that a number of investors are not aware that Point Center filed for bankruptcy last Tuesday, February 18 as counsel in Charton v Point Center began to argue motions. Motions in response to the bankruptcy have already been filed in federal court to stay the bankruptcy for the Plaintiffs so that the Orange County Superior Court trial can proceed. Everyone is now waiting for the bankruptcy court's ruling. If the bankruptcy court returns a favorable ruling before March 4, the superior court judge (Perck) will proceed with trial. If not, it only means that the 80+ plaintiffs will have to wait longer for the trial to start (weeks to months).
It is my understanding that the clock counting down to the five year statute of limitations on the Charton trial will be stopped as long as the bankruptcy is active. So the Harkey's tactic only serves to delay the inevitable.
Point Center's counsel (Jeffrey Benice) stated to the court that the Bankruptcy was filed to fend off the appointment of a receiver from another trial that is going to cost Point Center $2.8 million dollars. But the fact that Point Center waited until the day of the Charton trial to file, and the fact that they listed investors in their top 20 creditors list, contradicts that statement. So much for Dan Harkey's "absolute obligation" to repay investors their money.
Nevertheless, Counsel's admission to the court that it was not about the trial is one of the arguments presented to the bankruptcy court in support of grant a stay.
One investor asked if counsel could argue fraud to stay the bankruptcy. This is one of the underlaying premises of the Charton lawsuit. However, fraud has to be proven before it can be used as an argument in bankruptcy court. It's a chicken/egg situation. But there are other compelling arguments that were made to the bankruptcy court judge to support the plaintiff's motion that court can consider in contemplating its ruling.
I've recently published a blog at http://pcfinvestor.blogspot.com to provide information on the situation with the Harkeys, provide details on the trial, and post publicly available documents to help keep investors up to speed. There are still many who think it was just a bad market and/or blame themselves for poor judgement. It was neither and there are good reasons why.
I have also started an Investors only discussion group at http://www.pcfinvestor.com with private sections to allow investors to meet and discuss topics only between themselves (Something that Point Center has aggressively sought to suppress.) For example, how many of you are aware that 29 investors have been sued by Point Center individually (not as a group) over RCS chandler, since October. 5 of those suits were filed just last week. In addition, Point Center filed similar suits alleging "Breach of Contract" on the Witzman property, and the most recent, on the sale of the Palm Springs Country Club asset.
You might ask yourself, "why would Point Center incur the expense to file these suits individually?" Because if the individual defendants pooled resources and banded as a group, they could save money and affordably mount an aggressive defense. Isolated, many of these defendants had no choice but to cave into Point Center's heavy handed bullying tactics. This is not okay, but it underscores why it is critical that investors know each other and be able to communicate at will.
The discussion group site at http://www.pcfinvestor.com is there specifically to provide an open but private venue for point center investors to meet, communicate, and exchange notes. Signups are fairly straight forward and only slightly onerous so that non-investors and trolls can be weeded out. It's a new tool and its there for your use and benefit. Content is minimal at the moment but will expand as membership and momentum builds. Don't let the Harkey's of the world suppress your rights to speak, know, and associate with whom you wish.
Sincerely,
PCFInvestor
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