Harkey Solicits Ballots Despite Court Order

PCF Investors Important Point Center Update August 15, 2013 Dear Fellow Investor, Part 1: Bankruptcy Court Nullifies Management Change Vote On August 2, 2013 Bankruptcy Court Judge Albert ordered: "Any ballot, letter or correspondence received, in response to a solicitation from the Debtor, that casts a vote in favor of replacing PCF as servicer and/or manager under any Agreements, is of no force and effect and PCF shall not be removed or replaced, as the servicer and/or manager, unless and until further order of this Court". Have you received a call or letter urging you to cast your vote since the Bankruptcy Court's order? Did you vote "Yes" unaware that it is illegal to transfer the assets of a bankruptcy estate without the expressed permission of the bankruptcy court; and that our Agreements with Point Center to manage our investments are considered assets of the Point Center estate?  If you received a call, the US Trustee, who was appointed to protect our investments and manage Point Center Financial, would like to know about it. If you voted yes we ask you to reconsider and and expressly rescind your vote. Here's why: Dan Harkey sent a letter at the end of July to all Investors asking us to vote to "approve the replacement of Point Center as Servicer under the Loan Servicing Agreements and as Manager under the Operating Agreements of the real estate owned limited liability companies ("REO LLC's)." An emergency hearing was called for by the Creditors Committee that was heard by the bankruptcy court on July 31st and the Judge found that there was "good cause to grant the Committee's motion" and ordered that the Office of the United States Trustee to "immediately appoint a Chapter 11 Trustee" to manage Point Center Financial, National Financial Lending, the REO LLCs, and all related assets.   Judge Albert further ordered:"Any ballot, letter or correspondence received, in response to a solicitation from the Debtor (Harkey), that casts a vote in favor of replacing PCF as servicer or manager under any Agreements, is of no force and effect and PCF shall not be removed or replaced, as the servicer and/or manager, unless and until further order of [the] Court." In recently filed motions and briefs in support of the emergency hearing it was disclosed that in 2012 Harkey appeared to have transferred $2.3 million of investor trust funds from National Financial Lending to a company called "Cal Comm Capital" (another Dan Harkey entity) and paid his attorney, Jeff Benice, over $1.2 million from NFL for representation in the Charton lawsuit - even though the NFL LLC was dropped as a defendant long long ago. Harkey also appears to have endorsed a check to Jeff Benice in 2012 from the borrower of the Preserve loan for $302,000.   We subsequently learned that proceeds from the sales of the Palm Spring Country Club and Georgetown assets were apparently paid to Cal Comm Capital. Palm Springs Country Club was sold on March 4, 2013. To date, no information about the $1,000,000 sale, nor cash-call reimbursements have been received by members of the Palm Springs Country Club Investments REO LLC. Neither has any timely information or reimbursements been received by investors on the sale of the Georgetown asset. To date, none of the sale proceeds have been returned to Point Center. Rather than opine about the above we prefer to let the information speak for itself. We do, however, recommend investors who have not sent in their ballots to vote "No". If you already mailed in your vote and wish to rescind it, we urge you to do so promptly. According to the Court's Order, your vote rescissions can be emailed directly to Harkey's bankruptcy counsel, Robert Goe, at rgoe@goeforlaw.com. If you would like us to forward your rescission to the new Trustee and related parties, feel free to copy pcfinvestor@gmail.com and we will see that they promptly receive it. If you were contacted by Point Center or called and were urged to cast your vote after the August 2nd Court Order we would like to hear from you. Contact us at pcfinvestor@gmail.com or simply reply to this message.   We believe that the appointment of a Trustee is in everyone's best interests and will ensure an orderly and ethical management of the Point Center estate while protecting the remaining value of our investments. In time a clear picture of what happened to our investments and why should emerge. We recommend patience and cooperation with the new Trustee who will have his hands full for a while until he can get his feet on the ground. In the mean time, every document filed with the bankruptcy court can be found online at the following URL:  http://pcfbankruptcy-pcfinvestor.blogspot.com/2013/03/docket-filings-and-rulings.html Part 2: The Charton v PCF Civil Trial Many investors are unaware that the jury in the Charton v Point Center civil litigation decided in favor of Charton and awarded $11,000,000 to the plaintiffs in damages in this first phase of a four phase trial.   On July 11, 2013, after nearly three months of trial, the jury reached a verdict and found "by clear and convincing evidence", that Point Center Financial and Dan Harkey "breached their fiduciary duty to their investors acting with malice, oppression or fraud and engaged in acts and omissions that constituted gross negligence, intentional misconduct or a knowing violation of law without the utmost good faith." The jury further found that Mr. Harkey and Point Center Financial committed elder abuseupon a number of pliaintiffs who were 65 years or older at the time of their investments and that he "took/hid/appropriated/obtained or retained plaintiff's property for a wrongful use, with the intent to defraud, or by undue influence." Relevant questions to the jury and their responses are as follows: 1. Did PCF engage in any act or omission as it relates to the plaintiff that constitutes gross negligence, intentional misconduct or a knowing violation of law without the utmost good faith? X        Yes      _____No. 2. Did Harkey engage in any act or omission as it relates to the plaintiff that constitutes gross negligence, intentional misconduct or a knowing violation of law without the utmost good faith? X        Yes     _____No. 3. Did Dan Harkey take/hid/appropriate/obtain or retain plaintiff's property for a wrongful use or with the intent to defraud or by undue influence? X        Yes     _____No. 4. Did any of the Plaintiffs prove by clear and convincing evidence that Point Center acted with malice, oppression or fraud? X        Yes    _____No. 5. Did any of the Plaintiffs prove by clear and convincing evidence that Dan Harkey acted with malice, oppression or fraud? X        Yes    _____No. Behind the scenes, the Harkey defense team had numerous motions pending designed to overturn or nullify the jury's verdict. Judge Perk, upon hearing oral arguments ruled as follows: 1. Harkey committed fraud upon Lloyd Charton, 2. That Dan Harkey is the alter ego of Point Center and that Point Center is the alter ego of National Financial Lending, 3. Both Defense motions for nonsuit were denied. It was left unproven whether or not Diane Harkey was an employee of Point Center and she was dropped from that portion of the trial. While there was strong evidence to suggest she was involved in the fraudulent transfer of the Harkey Ritz Cove home, Judge Perk did not believe the evidence was sufficient to justify a ruling for the plaintiffs and she was dismissed with prejudice. ____________   Phase 1 of the trial addressed issues with the National Financial Lending pool, Phase 2 of the trial will address the Mortgage Note Program and is scheduled to begin on August 20. ____________   Sincerely,     PCFInvestor     PCF Investor Blog PCF Investor Discussion Group  (forums) PCF Twitter Feed    PCFInvestor is an email newsletter researched and published by concerned investors for fellow Point Center Financial investors. We are not affiliated with any other web sites other than those mentioned immediately above, nor are we employed by Point Center, Dan Harkey or related entities. The information herein is derived primarily from public records, testimony, and confidential sources. All opinions expressed are our own. While we make every attempt to ensure the accuracy of the information provided the authors assumes no responsibility for any errors or omissions that appear in this document.

Point Center Financial Trustee Appointed

PCF Investors PCF Investor Bankruptcy Update - Trustee Appointed July 31, 2013 Dear Fellow Investor, The US bankruptcy court Judge Albert ordered a Trustee be appointed to manage Point Center Financial. The order stated: "the Court has found good cause to grant the Committee's Motion" and ordered The Office of the United States Trustee to immediately appoint a Chapter 11 Trustee. In recently filed motions and briefs it was revealed that in 2012 Harkey transferred $2.3 million of investor trust funds from National Financial Lending to Cal Comm Capital and paid his attorney over $1.2 million from NFL for representation in the Charton lawsuit - even though the NFL LLC was dropped as a defendant long long ago. Harkey also apparently diverted over $300,000 from the Preserve to his attorney, Benice, in 2012.  The reason these transfers are important is that Harkey represented to the bankruptcy court under penalty of perjury that Point Center had $109 million dollars in assets against $54 million in liabilities. If this was actually true, then Point Center should have a positive net worth of $55 million and adequate resources to cover its obligations, including the recent San Diego judgement for $2.7 million dollars on the Mi Arbolito project. Why then, would Harkey need to play a shell game with NFL funds? Harkey's attorney, Jeff Benice was quoted by the press as saying that Point Center had no assets. Rather than speculate, we prefer to give the new Trustee time to get to the truth. In the meantime, the entire court gallery was full except that Dan Harkey and his entourage were nowhere to be seen; and his bankruptcy counsel appeared only by phone. In addition, Harkey was ordered to turn over the names and addresses of all recipients who received letters and ballots "suggesting or making reference to replacing PCF as servicer and/or manager under any agreement." This will allow the Trustee to notify investors that "Any ballot, letter or correspondence received, in response to a solicitation from the Debtor (Harkey), that casts a vote in favor of replacing PCF as servicer or manager under any Agreements, is of no force and effect and PCF shall not be removed or replaced, as the servicer and/or manager, unless and until further order of [the] Court." Coincidently, the Point Center web site mysteriously disappeared from the Internet. In response the Court ordered Harkey to "take all steps necessary to reactivate PCF's website and all on-line services if so ordered by the Trustee;"  This hopefully means that anyone denied access to their MyPCF accounts, such as the Charton plaintiffs, will soon have their access restored. The appointment of a Trustee is a good thing and will ensure an orderly and ethical management of the Point Center estate while protecting the remaining value of our investments. In time a clear picture of what happened to our investments and why should emerge. We recommend patience and cooperation with the new Trustee who will have his hands full for a while until he can get his feet on the ground. In the mean time, every document filed with the bankruptcy court can be found online at the following URL: http://pcfbankruptcy-pcfinvestor.blogspot.com/2013/03/docket-filings-and-rulings.html We recently updated the site content for the bankruptcy so all of the information at the above link is current as of the end of the day today. We promised details on the Charton litigation decision and information is on the way. In the mean time, a new organization has been formed based on Point Center's breach of fiduciary duty. It's called Association for Senior Investment Victims. They are working with Madoff victims groups as well as others. For more information go to: http://www.seniorinvestmentvictims.org It's free to join. Stay informed and help stop others from falling victim to predators like Dan Harkey. Sincerely, PCFInvestor PCF Investor Blog PCF Investor Discussion Group  (forums) PCF Twitter Feed

PCF Bankruptcy Hearing

PCF Investors PCF Investor - Urgent - Bankruptcy Update - Action Required July 28, 2013 Dear Fellow Investor, This past week Dan Harkey mailed one or more letters to a select group of investors requesting that they approve the replacement of Point Center Financial as Manager under the Operating Agreement of National Financial Lending LLC and the REO (real estate owned) LLCs. Upon a majority approval the new Manager would be National Financial Lending, Inc., a California corporation ("NFL INC"), which, as Harkey states: "is a totally separate corporation [Harkey] formed 17 years ago (May of 1996) and not related in any way to the mortgage pool investment National Financial Lending, LLC." Regardless of the name of the Harkey entity, transferring management is not in investors' best interests. It is against federal law to move the assets of an estate in bankruptcy without the expressed permission of the bankruptcy court. No such permission was requested nor granted. These laws are in place to protect our assets. Attorneys for the Creditors' Committee promptly filed an emergency motion requesting a hearing to prevent Harkey from moving these critical assets of the Point Center estate. Several related parties have stepped up submitted their own briefs to the court in support of the Committee's motion including David Lally who represents many investors as bankruptcy counsel; David Grant, counsel for the 87 plaintiffs in the civil trial; and John Menchaca, the Chapter 7 Trustee of the estate of the Preserve, LLC. In fact, the only party who is expected to object is Dan J. Harkey. In response, bankruptcy Judge Albert ordered (in part) as follows: "The hearing on the motion for appointment or conversion is advanced to Wednesday, July 31 at 2:00 PM at the US Federal Courthouse at 411 West Fourth Street, Santa Ana, CA 92701."  (All investors are encouraged to attend - see directions below.) "All ballots and letters or correspondence received requesting a change in management under the Operating Agreement of National Financial Lending, LLC are of no force and effect pending the hearing scheduled below. PCF's role as manager under the Operating Agreement of National Financial Lending, LLC, shall not be changed or altered unless and until further order of the Court. Debtor and its management are enjoined from acting upon any such ballots until further order of the court." "The Official Committee of Unsecured Creditors is hereby authorized to send to all persons and entities who received the PCF Replacement Letter, a letter/notice notifying them that regarding the PCF Replacement Letter there will be no change of the manager under the Operating Agreement of National Financial Lending, LLC unless and until further order of this Court. This notice is to be one sentence only and is to avoid any advocacy or inflammatory rhetoric." Judge Albert also ordered Harkey to transmit the following letter on Point Center letterhead to the recipients of Harkey's letter as follows: "Dear Members, As you are aware, I sent a letter to you a few days ago dated July, 2013. This letter asked that you vote to transfer the Management Rights from the Debtor, Point Center Financial, to another entity I own entitled NFL, Inc. Please be advised that I am now asking you to ignore this letter, and to take absolutely no action in response to the letter. The request to transfer management has been rescinded. PCF shall remain the manager of NFL, LLC. If you have sent a consent to change of management, I request that you send to PCF a letter withdrawing that consent. Please send a copy of that withdrawal to my attorney, Robert Goe at rgoe@goeforlaw.com Sincerely, Dan J. Harkey" How you can help: It is important to understand that if you received and responded to the original Harkey letter consenting to a change in management, you should immediately send PCF a letter withdrawing your consent.  You can email your withdrawal letter to rgoe@goeforlaw.com.   If you want to help yourself, your fellow investors, and the creditors committee to advocate in our best interests to the bankruptcy court and have received the recent Harkey letter and related ballots please scan and forward your documents to us at pcfinvestor@gmail.com. Furthermore, if you have not filed a claim with the bankruptcy court, now is the time to do so. We want to encourage as many investors who can to attend the hearing at the federal courthouse in Santa Ana on July 31 at 2:00 PM. Your presence will show the court your concern. In our view, appointment of a Trustee or conversion to a Chapter 7 is the appropriate course of action. Chapter 7 would allow the appointment of a Trustee and fiduciary who will wind the business down in an orderly fashion that is in the best interests of all investors. Otherwise, Harkey will use Chapter 11 as a shield to buy time to milk our remaining assets. For those who intend to attend the hearing, here is a map to help with location and parking. You must enter the courthouse from West 4th Street. All other entrances are blocked. Google maps shows parking at Markers 'A', 'B', 'C', and 'D', and I've shown additional parking at the Santa Ana Civic Center, and there is parking on W. 5th Street, behind the courthouse. In addition to the above, we wish to point out that the Harkey letter you may have received grossly misrepresents the outcome of the recently completed phase one of the civil trial.The Charton plaintiffs won this phase and were awarded over $11 million in damages against both Dan Harkey personally and Point Center Financial for breach of fiduciary duty and breach of contract. The civil court also found that Harkey specifically defrauded Lloyd Charton.  We will post more details of the civil trial, the award, and what it means to you in our next update. Stay tuned.   Sincerely,     PCFInvestor     PCF Investor Blog PCF Investor Discussion Group  (forums) PCF Twitter Feed

PCF Investors Point Center Financial Bankruptcy Update May 7, 2013 Dear Fellow Investor, The Point Center Financial 341(a) Creditors Meeting was held last Thursday, May 2 at the Ronald Reagan Federal Building. Dan Harkey appeared and was sworn in to testify under oath. His testimony was as revealing as the questions asked. He was accompanied by CFO Gwen Melanson, bankruptcy attorney Richard Goe, in house counsel Dale Martin, and civil trial attorney Jeffrey Benice. The meeting was conducted by Frank Cadigan, Assistant Trustee for the US Department of Justice and his staff who tape recorded the session. Also in attendance were several attorneys an at least 50 investors. For the benefit of investors who were unable to attend we have posted the following links where you can listen to the entire 3-1/2 hour session at the following URL's: YouTube:    https://www.youtube.com/watch?v=7l3T9CQHEiw SoundCloud:      http://soundcloud.com/pcfinvestor/dan-harkey-point-center-341-a   Representing the Creditors Committee was attorneys Kristine Thagard  and Richard Marshack from the firm of Marshack Hays, LLP. Attorney David Lally was in attendance representing the plaintiff/investors involved in the Investors v Dan Harkey & Point Center Financial civil trial at the Orange County Superior Court. Richard Davis, an attorney representing the judgement creditors: Brewer Company, Dynelectric, and Division 8 was also there. The 341 meeting takes place about 20 to 40 days after the debtor files a bankruptcy petition. Often the 341 is informal and short but the debtor must attend, must testify under oath, and must be able to answer the questions to the satisfaction of the Trustee, creditor attorney(s), and any individual creditors. The creditors who are listed in the debtor's petition are given notice but are not required to attend. Creditors who do appear are granted the opportunity (after the creditor attorneys) to ask questions. But more often than not, creditors often do not attend. It's strictly a fact-finding meeting, but the debtor can be asked to produce books, records and other documents related to his business's finances. Last week's meeting deviated slightly from the above expectation. It is doubtful that the Trustee expected to walk into a room fully filled to the brim with creditors, have to listen to Harkey's entourage answer questions for him, or see the meeting turn contentious. Nevertheless, that's what we interpreted from the CD. Listen for yourself and draw your own conclusions. The recording speaks for itself and should stand on its own merits. CORRECTION: We would like to correct some mis-wording in the Civil Trial Update we sent earlier this morning. The corrected paragraph should read: "Gwen Melanson took the stand last week and testified that borrowers never paid origination fees out of their own 'independent' borrower funds at closing. She stated that once investors purchased "shares" in NFL that their money "belonged" to NFL. She then tried to claim that loan origination fees and Interest hold-back accounts were funded with NFL's funds. Let's examine this for a minute."   We regret any confusion. Sincerely,     PCFInvestor     PCF Investor Blog PCF Investor Discussion Group  (forums) PCF Twitter Feed

Civil Trial Update

PCF Investors Civil Trial Update Dear Fellow Investor, First the meat: Dan Harkey Testimony Dan Harkey is expected to be called to the stand to testify as early as this afternoon, Tuesday May 7, 2013. For those who attend, and because there is little room for plaintiffs behind the attorney's table, we request that plaintiffs be given gallery seating priority over non-plaintiffs. Otherwise we expect interesting testimony when Harkey is questioned by the plaintiffs' attorney, Dave Grant, and well rehearsed speeches and sound bites when questioned by defense attorney Benice. Because trials are fluid and events can change on a moments notice, do not be disappointed if Harkey goes on the stand sooner than the afternoon, later in the day, or even tomorrow. The court has a mind of its own. Gwen Melanson Testimony Gwen Melanson took the stand last week and testified that borrowers never paid origination fees were ever paid out of 'independent' borrower's funds at closing. She stated that once investors purchased "shares" in NFL that their money "belonged" to NFL. She then tried to claim that loan origination fees and Interest hold-back accounts were funded with NFL's funds. Let's examine this for a minute. You buy a share of stock in NFL with your money. You write a check and your money is deposited into a Point Center Financial trust account designated for the NFL pool. Your money (because there is no other money in the trust account other than yours) is used to pay Point Center's origination fees that Point Center collects up-front, when the loan closes. Then, your money is used to fund an interest hold-back account where it sits until it is time for Point Center to distribute your monthly interest payment; to you; with your own money. So you've paid Point Center's loan origination fees and you've paid yourself borrower interest with your own investment. What ever happened to the "borrower has to have skin in the game" speech that Harkey pontificated in the seminars and on the DVD? That is not to say that all borrowers never made their interest payments. But on the loans that were underfunded, that defaulted into foreclosure (especially the big loans), where the borrower rarely if ever made an interest payment, you received interest payment funded from your own principal. Melanson testified that whenever Point Center partially funded a loan that Point Center paid itselfall of its loan origination fees; not it's pro-rata portion. She also testified that if an underfunded loan defaulted that Point Center never refunded any fees back to the investors (or the pool) on the unfunded portion of the loan, nor did she feel that they had any obligation to do so. Melanson also testified that "loan servicing" fees and "management" fees were "one in the same". Yet the governing documents for the NFL clearly stated that there were "no management fees".  What, then, gave Point Center the right to pay itself "accrued" management fees? To understand this better, "loan servicing fees" are earned as long as a loan performs. When the borrower defaults and the property goes into foreclosure (and becomes an REO asset) the loan isextinguished. It cannot pay itself a "loan servicing fee". Instead Point Center accrues a "management fee". But if the NFL governing documents clearly state that there are no management fees, then by what right does Point Center have to pay itself fees for something it is expressly not entitled to? If you're confused, think how the jury feels. Diane Harkey Testimony Diane Harkey's Testimony was lackluster at best. When questioned she mostly answered with "I don't know, you need to ask Dan." She testified that the FEC reports that expressly reported that she was an employee of Point Center did not reflect what was filed. The matter of fraudulent conveyance of the Harkey Home to Diane Harkey shortly after the NFL redemptions were fully frozen in 2007 not allowed to be testified to during this portion of the trial. The decision not to allow testimony before the jury however will not prevent it from being heard before the judge at a later date along with matters of "alter ego" and piercing the corporate veil.  Boring Stuff Unlike television and the movies, civil court trials tend to move at glacial speeds and the trial at hand is no exception. Once the bankruptcy stay was lifted and the trial was allowed to proceed in civil court there were a number of procedural "issues" that needed to be argued before the court before jury selection could begin. These issues are presented to the court as "Motions in Limine". There were 23 and they will soon be posted to the web site along with more recent filings. (Time (and our wallets) have limited our ability to collect and post filings for the case online (but we promise to try to do better.)) The Motions in Limine addressed many issues, such as whether or not the term "Ponzi" could be used in front of the jury, whether the Harkey's lavish lifestyle (built on the backs of defrauded investors) could be disclosed, whether fraud in the inducement outside of the documents investors signed could be argued, etc. The resolution of these issues were critical in shaping how the trial would be conducted because the court's rulings could (and in some cases should) restrict the kind of evidence that can be presented by both sides. All but two of Point Center's motions were denied by the Court. Jury selection took almost 10 days to complete. The court tries to start the selection process with a pool of 60 prospective jurors however criminal proceedings preempted the selection process twice. There came a moment when Judge Perk became so concerned about the availability of pool members that he suggested the parties consider either a non-jury trial (trial by judge) or select a smaller jury of 7. In the end the court was able to supply sufficient jurors for a 12 person jury plus 4 alternates. Plaintiff Investor Testimony Over the course of the past three weeks a number of plaintiff/investors were put on the stand. Their stories were heart-wrenching. Plaintiffs described how Harkey and other employees of Point Center assured them that their investments were safe, conservative, and well diversified when they put their money into the NFL pool. One plaintiff described how Dan Harkey had personally assured her how safe her money would be; money her husband had left after his passing to ensure she was taken care of through the final years of her life. Most of the plaintiffs are elderly. Several have passed away without ever tasting justice, or knowing whether or not they would have something of value to pass onto their heirs. Others are having a very difficult time making ends meet. True to form, Harkey's defense was to draw attention to the "four corners" of the documents signed by each investor and pontificate about the "global economic meltdown" of 2007. What will become clear over the next several days is that the loans that failed were doomed from the start and would have failed regardless of the state of the economy. Twitter Feed We have started a Twitter feed @PCFInvestor which can be found on the web at: https://twitter.com/PCFInvestor We're behind on the blog website, but plan to catch up soon. In the meantime, we do post interesting soundbites as they occur from the courtroom almost every day on Twitter if you want to tune in. That's all for now. Sincerely,     PCFInvestor     PCF Investor Blog PCF Investor Discussion Group  (forums) PCF Twitter Feed

PCF Investors  March 26, 2013 Investor Stories We've added a section to the web site/blog for investors who want to tell their stories focusing on people who were victims of Dan and Diane Harkey and Point Center Financial. They have hurt a lot of folks and we would like to share your stories. We will not use your contact details without your expressed permission.   To give you an idea of what we think people will be interested in reading we've provided a fairly simple form to follow below, or you can use your own format.   ---Begin form--- Name: Address: City:   State:   Zip: Phone:   You may use my name (yes/no): Your age at the time you made your investment:    Amount Invested: Amount Lost:   How were you impacted by your investment loss?: What did you invest in? (Trust Deed Mortgages, NFL Pool, Mortgage Note, Commercial Paper - elaborate if you wish):     Are you a plaintiff in a law suit against Point Center? (yes/no): Are you being sued by Point Center? (yes/no): Would you be willing to be interviewed on video for posting  to the web site? (yes/no):   Would you be willing to speak directly to the media? (yes/no): By replying to this email message I am giving my expressed permission for my enclosed story to be published by PCFInvestor. I understand and agree to allow my story to be republished for appropriate, non-commercial use on the internet, news media outlets, and/or other publications without waiving any of my rights or privileges. ---End form--- ___________________ Feel free to fill in the blanks above or submit your own version. What is most important is that we get your stories out. Thanks for your help! Sincerely,     PCFInvestor     Investor Blog  Investor Discussion Group (forums)

Harkey Disinformation Campaign

PCF Investors    Monday, March 25, 2013 Harkey Disinformation Campaign Dear Fellow Investor, Over the past couple of weeks, Dan Harkey has executed a massive PR campaign to discredit Lloyd Charton and several other plaintiffs in the pending Orange County Superior Court trial. It was expressed to me, and I agree, that these attacks are due, at least in part, to the work being conducted by PCFInvestor on behalf of all investors who were conned by Dan Harkey and his merri band of thieves. I regret that Lloyd and the others are being targeted for activities that they are not a party to, and it's time to set the record straight. I am not Lloyd Charton; but I did start the PCFInvestor email list, blog site, and online discussion forums. The list, blog, and online discussion forums are growing with the help of a few investors who have agreed to collaborate and help me build a communication network designed to link ALL 3,000 investors together in a forum that will allow free discussion without encumbrance or impediment by the likes of Dan Harkey and his crew. Frankly I am amazed that the rats at Point Center (now operating as CalComm Capital) haven't jumped ship sooner but I appreciate the few insiders there who have been forthcoming with critical and timely information that we intend to reveal to the courts, the media, and to the entire Point Center investment group. (You know who you are and we applaud your courage.) Dan Harkey mistakenly deludes himself that Lloyd Charton is behind PCFInvestor. As if deluding himself isn't bad enough he now wants everyone to drop acid and share his delusion. Except he's wrong. PCFInvestor is not the voice of Lloyd Charton. Lloyd has his own voice and his own mailing list and is perfectly capable of voicing his own opinion. I do not answer to him in any way. Neither is PCFInvestor Steve Cash, Kurt Sipolski, Danny Sullivan or any other boogeyman that Danny Joe Harkey wishes to conjure. As far as I am concerned PCFInvestor is your voice, the voice of ALL 3,000 investors, plaintiffs or otherwise. PCFInvestor is the voice of anyone who lost their money to this pathological narcissist and his cronies. I have no intention of revealing who I am nor who I am collaborating with. Anonymity serves my purposes and protects the other investors that I collaborate with. More importantly, many have asked for the contact details of their fellow investors and told by Rene Esparza to go 'pound sand'. I want to change that. I want to gather all willing investors together in one place and provide a forum where they can be heard. I want all investors to be able to communicate freely with each other and be able to exchange critical information in a timely fashion. For example, was anyone aware that the $20,000,000 REO asset: Palm Springs Country Club, was sold on March 6, for $1,000,000 plus unpaid property taxes? Today is March 25. It's been almost three weeks. Have you received a check, a closing statement, or know how much Dan Harkey has taken from you in fees? Did anyone know that the sale was pending, who the buyers were, what condition the property was in, or ask for the contact details of your fellow LLC members so you could freely discuss the disposition of the property? Were you aware that Harkey tried to divert the proceeds to CalComm Capital? I'm confident that once this information is openly circulated you will receive a communication from Point Center containing their "spin" on the deal claiming the bankruptcy and civil proceedings are to blame. But there is a lot more to tell that will soon be revealed. Dan Harkey betrayed each and every one of you. He ravaged the accounts of the elderly, the infirm, folks on limited incomes, people who put their faith and trust in him. He broke our trust. He failed to protect us but enriched himself, mismanaged our assets, and failed to perfect the personal guarantees and insurances that might have salvaged the fiction he called loans. If you want to get involved, join the investor forums. Write your story and submit it to the blog. Your stories need to be heard regardless of how old or how insignificant you think your losses were. I'm asking you to use your voices and help draw attention to this travesty called Point Center Financial and exact some justice. Help make PCFInvestor the voice of all of us. "My name is Legion for we are many." Sincerely,     PCFInvestor   Investor blog Investor discussion groups (forums)