Crystal Cox Obsidian Finance Trial - Proof of Blog Post Source by CrystalCox

VIEWS: 19 PAGES: 15

									                   Statement of Source of Subject Blog Post

                                        Exhibit 520

The blog post that is the subject of this trial is titled     "Kevin Padrick of
Obsidian Finance Group LLC -Chapter 11 Trustee Summit 1031 Exchange Bankruptcy "


Part 1 of Original Blog Post -

"Why Investigative Blogger Crystal L. Cox Says Kevin Padrick, Obsidian Finance LLC is a Liar.
There are Many Reasons Why I Claim that Kevin Padrick, Obsidian FinanceLLC is a Thug,
Thief and a Liar.. Many More Will Continue to Post.. in Detail .. as Oregon Attorney David Aman
of Tonkon Torp LLP Law Firm sent me a Cease and Desist Requesting that I Stop saying such
Facts about his Client Oregon Attorney Kevin Padrick for Obsidian Finance Portland Oregon."

Part 1 - Why I wrote this and/or source of comment -

There really are many reasons I claim Kevin Padrick (“Padrick”) of Obsidian Finance Group LLC
(“Obsidian”) is a Thug, Thief and a Liar. I have written on this bankruptcy case for over 2 years
and have read documents, blogs and depositions. I have also watched videos and at one point
became friends with one of the insiders of the Summit Accommodators, Inc. (“Summit 1031”)
Bankruptcy. Summit 1031 is the company that filed for Chapter 11 Bankruptcy - “DIP” Debtor in
Possession Reorganization). I have a very strong opinion formulated from years of information
on this case.

Padrick of Obsidian, Plaintiff, was supposed to be working for Summit 1031 as a subcontractor
(financial consultant) when this highly publicized Oregon bankruptcy was filed back in
December of 2008. There is a video taping of a presentation meeting (approved and was under
the direction of,Judge Randall Dunn (Judge presiding over the Summit 1031 bankruptcy case))
and contracts that Padrick of Obsidian signed with the Summit 1031 Principals (shareholders of
Summit 1031), and Terry Vance “CRO”. Padrick, Oregon attorney, seemed to me to be a thug,
liar and thief from what I had seen, read, and been exposed to during this time.

The above writings also refer to a Cease and Desist in which David Aman, attorney for Padrick
of Obsidian, Plaintiff sent me, this was on December 22nd 2010, I was never sent a Cease and
Desist for the post I am on trial for, nor have I have been asked to take it down or change any
information. I am simply being sued for 10 Million Dollars for a Blog post on December 25th,
2010 with this Court Case being Filed 20 days after that blog post and I am told that I caused 10
Million in Defamation Damages to Plaintiff.

Part 2 of Original Blog Post -
"In the Summit 1031 Press Release, it was announced that Summit would be declaring Chapter
11 bankruptcy, Terry Vance - Oregon Attorney was the Chief Restructuring Officer who then,
at the advisement of Sussman Shank, Summit Accommodators Inc.’s attorneys, hired
Obsidian Finance Group, LLC as their financial consultants to provide advice on all tax issues
affecting Summit Customers and a plan to mitigate damages to the maximum extent possible
of currently unfunded exchanges. It is also my understanding that Obsidian Finance Group,
LLC was retained to review substantial real estate investments and to recommend the best
method to realize value of such investments to satisfy outstanding claims. Obsidian Finance
Group, LLC is a national financial consulting firm, which specializes in distressed enterprises
and assets."

Part 2 - Why I wrote this and/or source of comment -

Terry Vance was the Original CRO in Press Releases, and Summit 1031’s attorneys,
Sussman Shank, did advise the Summit 1031 Principals. This is a matter of public
record in past press releases I had read and is posted on the blog I linked to
for more information at the bottom of my post www.summit1031bkjustice.com
(“Summit1031bkjustice Blog”), (See Exhibit 511). The Blog post links to that Blog in which
Blogger Crystal L. Cox, Defendant, did not create nor author any pages on that blog, only
commented.

This information is public knowledge in the Summit 1031 Bankruptcy Case. Additionally, I wrote
that it is "my understanding". This does not mean ALL readers would perceive the information
the same as I did.

Here is a list of excerpts from the Original Press Release – Written by Susan Ford at
Sussman Shank (See Exhibit 517).

1) " Tyrell B. Vance LLC, (“Vance”) has been retained as SAI’s Chief Restructuring Officer
(“CRO”) for all purposes in the Chapter 11 case.” (Exhibit 511 - Page 1 - Section 2)

2) “Vance as CRO of the Company has retained Obsidian Finance Group, LLC (“Obsidian”)
as financial consultants to provide advice with respect to all tax issues affecting Summit
Customers and a plan to mitigate damages to the maximum extent possible of currently
unfunded exchanges. In addition, Obsidian has been retained to review substantial real estate
investments and recommend the best method to realize the value of such investments to
satisfy claims. Obsidian is a national financial consulting firm, which specializes in distressed
enterprises and assets." (Exhibit 511 - Pages (1-2) - Section 3)

Part 3 of Original Blog Post -

“Kevin Padrick, Obsidian Finance Group, LLC,, who is 50% owner of Obsidian Finance Group,
LLC, presented to the Summit Shareholders that he had friends with deep pockets who would
help fund their short-term liquidity crisis. (Did Kevin Padrick Lie ?_”

Part 3 - Why I wrote this and/or source of comment -
I remember reading somewhere that Padrick was 50% owner of Obsidian, but cannot find this
information at this time. Padrick is co-founder and senior principal of Obsidian. The only other
co-founder and senior principal is David Brown. It was my belief at the time I wrote this post
that these two co-founders/senior principals shared their interest in Obsidian equally.

The statement about friends with deep pockets also comes from the Summit1031bkjustice Blog
which quotes the deposition of Mark Neuman (“Neuman”), Summit 1031 Principal (Exhibit 521
& 531). In Neuman’s Deposition on Pg 95 he states "I guess the other thing was -- Kevin -
- Kevin led us to believe that he was bringing financial -- he had these financial partners
with deep pockets, and that he could do -- bring in some money in the interim. That was
the last we ever heard of it." (Exhibit 521 & 531).

Part 4 of Original Blog Post -
"Kevin Padrick, Obsidian Finance Group, LLC, never mentioned Ponzi Scheme; he just kept
calling it a short-term liquidity crisis. Then later it was a PonziScheme? Double Talk, Lies,
Greed.. ??"

Part 4 - Why I wrote this and/or source of comment -

(Exhibit 521) Shows a post from the Summit1031bkJustice Blog in which state that Padrick “was
more than willing to help them with their liquidity crisis” and that Obsidian “specialized in helping
save distressed businesses like Summit Accommodators, Inc.”

I then ask 2 questions to my readers. These are ligitimate questions as later in the Summit
1031 Bankruptcy there was alot of talk of Ponzi Scheme. I also ask the question of Double
Talk, Lies, Greed?.

(Exhibit 532) addresses the “later” talking about how “Padrick asserted that Summit’s
owners were trapped in a Ponzi scheme in which they had to constantly recruit new
business in order to avoid collapse.

Summit’s principals were not trapped in a Ponzi scheme, Philpott said, just a liquidity
shortfall, and they were looking for a new source of funds before they filed bankruptcy.”


Part 5 of Original Blog Post -
"The Summit Shareholders of course wanted this our short term liquidity crisis Solution, it would
benefit all and get them out of hot water. But Of Course Kevin Padrick, Obsidian Finance Group,
LLC Flat Out LIED.."

Part 5 - Why I wrote this and/or source of comment -

This information is formulated from information on the Summit1031bkjustice Blog as in (Exhibit
521). Padrick, Plaintiff did lie to the Summit 1031 Principals as far as I understand it.


Part 6 of Original Blog Post -
"Kevin Padrick, Obsidian Finance Group, LLC, did none of these things in this agreement and
the press release. Kevin Padrick of Obsidian Finance Group came in immediately and took
all of the information then used this privileged information Against their Client and STOLE
the Job of the LUCRATIVE position of Chapter 11 Trustee in a 40 Million Dollar Oregon
Bankruptcy.. (Hence Liar and Thief)"

Part 6 - Why I wrote this and/or source of comment -

It is easily notable from the Summit1031bkJustice Blog (Exhibit 521), which I link to at the
bottom of the post I am on TRIAL for, that Padrick of Obsidian had a contract with the Summit
1031 Principals (Owners), Obsidian promised a proposal, but no proposal was received by
Terry Vance, CRO or the Summit 1031 Principals AND privileged information was taken by
Obsidian and used to make a presentation to the creditors’ committee, which is essentially the
opposite side of the Summit 1031 Principals. This is also something I came to know, believe
and understand from writing on this story for the years before.

The Summit1031bkJustice.com Blog, which I link to at the bottom of the post I am on TRIAL
for, talks of court proceedings, a judicial proceeding whereby Insider Stephanie DeYoung and
others filed an Objection to the Fees (Exhibit 510), also in the almost 3 years of covering this
story, it was common knowledge that this “job” was deemed to be Stolen, as Terry Vance, CRO
(Exhibit E-2 of Exhibit 510 - CRO Retention Agreement) seemed to be a shoe in for the Trustee
job if they were going to change from a Chapter 11 Reorganization (with a CRO in charge) to
a Chapter 11 Liquidating Trust (with a Trustee in Charge and a separate Trust). It seemed as if
conflicts of interest, past connections, odd judge decisions and old work affiliates got this “job”
for the Plaintiff, Padrick as the Trustee in the Summit 1031 Bankruptcy. If you Look again at
(Exhibit 527), the contract between Obsidian and Summit 1031 and Signed by Plaintiff Padrick
of Obsidian Finance, you see that this contract could not possibly have been honored as being
the Trustee was working for the Creditors and Against the Client he had the contract with.

This also explains why I say that Padrick, Plaintiff did not honor this contractual agreement.
Keep in mind the words “ Kevin Padrick, Obsidian Finance Group, LLC, did none of these
things in this agreement” words of the subject post link to the contractual agreement between
Padrick of Obsidian, Summit 1031 and Summit 1031 Principals (Exhibit 527). This would allow
the reader to see the reason behind stating this in the post. Please note that the subject blog
post also links to the press release in which discusses issues in this post, the words “the press
release” link to that press release which can be read in (Exhibit 517). Most readers would click
on that press release for more information as to what that was in regard, that’s how blogs work.

(Exhibit 534) is a Declaration of Kevin D. Padrick. In this declaration, Padrick consolidates
these events into one statement, “On December 19, 2008 (the “Petition Date”), Debtor filed
a voluntary petition under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy
Code”). I was appointed as the chapter 11 trustee for the Debtor pursuant to an order dated on
February 17, 2009.” Leading me to believe Padrick was aware of Summit 1031’s bankruptcy
filing and he was appointed Chapter 11 trustee. Both statements are true, but there is no
mention of Obsidian and Padrick’s contractual agreement to Summit 1031 and how Padrick
moved the Judge, Summit 1031 Attorneys, and creditors’ committee Attorneys to replace Terry
Vance.

(Exhibit 535) Padrick’s billing time related to meetings with Tom Stilley of Sussman Shank
(Attorney for Summit 1031) and Stephen Hedberg of Perkins Coie (Attorney for Creditors’
Committee) regarding “substitution of CRO”. Document is dated 2/8/09. At this time, Vance
was Padrick’s “boss”. I don’t believe Vance would direct Padrick to have a meeting with both
parties’ attorneys to replace himself.

Part 7 of Original Blog Post -
"Click Here for Lies, Agreement from Kevin Padrick, Obsidian Finance Group,LLC"

Part 7 - Why I wrote this and/or source of comment -

The above words link to the contractual agreement between Padrick of Obsidian, Summit 1031,
and Summit 1031 Principals (Exhibit 527). I have every reason to believe Padrick did not follow
through on this contract and in fact seemed to walk away from this contractual obligation all
together in order to get a more lucrative job as the Bankruptcy Trustee working for the Creditors
which is the Opposite Side of the "Battle", Legal Fight, Bankruptcy Case.

Part 8 of Original Blog Post -
Click Here for Press Release, Information to Summit 1031 Creditors

Part 8 - Why I wrote this and/or source of comment -

These words link to the Press Release (Exhibit 517) as another Source for Readers of this
Post as to where I got my information and how I came to think, feel and believe that Padrick
of Obsidian was originally hired as a financial consultant who was supposed to be working for
Summit 1031 at the direction of Terry Vance (Chief Restructuring Officer). The press release
also states how Summit 1031 was having financial issues they were trying to resolve by filing a
Chapter 11 Reorganization Bankruptcy and by hiring Padrick of Obsidian for extra assistance
in resolving Summit 1031’s financial issues. Note that the press release never mentions
anything about a Ponzi Scheme. It also shows that this Bankruptcy was cash rich as it had
approximately $14 million in cash and $14 million in illiquid assets which Summit 1031 had
hoped would be sufficient to pay all Summit Customers.

Part 9 of Original Blog Post -
"Kevin Padrick of Obsidian Finance Group told the Summit Principals they would be back in
two weeks with a proposal. Instead, they took the privileged financial information and Summit
spreadsheet on the properties the Summit Principals were always from day one going to turn
over to the bankruptcy estate to the Creditor’s Committee."
Part 9 - Why I wrote this and/or source of comment -

I believe this to be true from the Summit1031bkjustice Blog and from information over the
years as an Investigative Blogger Gathering Data on the Summit 1031 Bankruptcy.

This information is on the blog I linked to for more information. (Exhibit 521) talks of the issue
of being back with a proposal. Obsidian did take the information, privileged financial
information and then instead of coming back with a proposal, Padrick of Obsidian used
this privileged information, without being directed by the CRO or Summit Principals, to
make a presentation to the creditors committee (the other side of this bankruptcy case
and a definite conflict of interest).

Other related sources include the Contract (Exhibit 527), the Summit Press Release
(Exhibit 517) and (Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11 for more
information on this. Keep in mind that Exhibit 510 was part of a Judicial Proceeding which is, in
part, the basis for the Summit1031bkjustice Blog.

On Homepage of the Blog I link to in the subject post, is a Video (Exhibit 536) of Insider
Stephanie DeYoung talking about the spreadsheets that were given to Obsidian. And how this
information was used against them. This is another source as to where I got my information.

Part 10 of Original Blog Post -
"Who Was Kevin Padrick of Obsidian Finance Group really working for when he illegally,
unethically, corruptly got this financial information and used it to make himself TONS of
money?"

Part 10 - Why I wrote this and/or source of comment -

I believe this to be true as stated above due to the information contained in the contracts
signed (Exhibit 527), the Summit Press Release (Exhibit 517), and (Exhibits 521) the
Summit1031bkjustice Blog, which I link to at the bottom of the post I am on TRIAL. The
Summit1031bkjustice Blog discusses many aspects as to question the legality of this
situation.

Signing a contract with a “Party”, getting financial information and then working for
another “Party” and using privileged information seems illegal and corrupt to me, and Padrick
did make “tons” of money. Of course the word “tons” is relative.

Also Note that (Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11, discusses details of
activities that are seemingly illegal and corruption to me.

There is also a Video (Exhibit 536) on the homepage of the Summit1031bkjustice blog I linked
to. In this video, Industry Insider and Bankruptcy Whistleblower, Stephanie DeYoung, talks
about privileged information being used against the Summit 1031 Principals. This is a video by
Oregon CPA, Summit Insider in which I deemed to be from a credible, reliable source.
Part 11 of Original Blog Post -
"Was Kevin Padrick of Obsidian Finance Group working for the Creditor’s Committee or
Terry Vance, CRO of Summit? Looks like KevinPadrick of Obsidian Finance had no intention
on completing his contract with Terry Vance and Summit because they did not receive any
proposals or any word from Kevin Padrick after Kevin Padrick of Obsidian Finance Group
got what he needed to steal the Chapter 11 Trustee Job."

Part 11 - Why I wrote this and/or source of comment -

I believe this to be true, however I asked it as a Question to make the reader think and then
I said it "looks like", this is what it looks like to me, the reader can certainly determine what
it "looks like to them." Also refer to the Summit1031bkjustice Blog (Exhibit 521), Mark
Neuman, Summit 1031 Deposition (Exhibit 531), the Contract (Exhibit 527), the Summit
Press Release (Exhibit 517), and (Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11
for more information on this. Keeping in mind that Exhibit 510 was part of a Judicial Proceeding
which is, in part, the basis for the Summit1031bkjustice Blog .

Also On Homepage of the Blog I link to is a Video (Exhibit 536) of Insider Stephanie DeYoung
talking about the spreadsheets that were given to Obsidian. This is another source as to where
I got my information.

Part 12 of Original Blog Post -
"Kevin Padrick of Obsidian Finance Group took this privileged information to the other side
and sold them something else. Something like we will sue Umpqua, we will take away interests’
from innocent people by suing them, we will sue every attorney who ever did work for Summit . "

Part 12 - Why I wrote this and/or source of comment -

I believe this to be true as Obsidian DID sue Umpqua Bank, and in reading press releases,
depositions and documents in regard to communications with Summit 1031 and Umpqua, I
believe this was part Padrick’s “sales pitch” to the Creditors’ Committee. I also believe that
Obsidian did sue attorneys that worked at Summit, this is my understanding of what happened,
based on the Summit1031bkjustice Blog and based on almost 3 years of research, interviews
and studying, writing on this case.

Part 13 of Original Blog Post -
"Kevin Padrick of Obsidian Finance Group probably never mentioned how much assets the
Summit Principals were handing over already. This way he could get more MONEY for him and
cheat the Creditors.. , oh in my opinion.."

Part 13 - Why I wrote this and/or source of comment -

The above quote from the subject post I am sued on says "Kevin Padrick of Obsidian Finance
Group probably". Most readers would take the word "probably" as most likely but not certainly
a fact of any kind. If the reader by chance mistook the above for a "Fact", well at the end of
this statement I said "oh in my opinion.." How in the world can this be a suspect for a 10 Million
Dollar Defamation Suit with the words Probably and my Opinion?

There is also a Video (Exhibit 536) on the homepage of the Summit1031bkjustice blog I linked
to. In this video, Industry Insider and Bankruptcy Whistleblower, Stephanie DeYoung, talks
about all the assets the Summit 1031 Principals were willingly handing over to the Bankruptcy
Estate prior to the bankruptcy converting from a debtor in possession bankruptcy to a liquidating
trust bankruptcy. This is a video by Oregon CPA, Summit Insider in which I deemed to be from a
credible, reliable source.

Also refer to the Contract (Exhibit 527), the Summit Press Release (Exhibit 517), and
(Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11 for more information on this.
Keeping in mind that Exhibit 510 is a Judicial Proceeding which is, in part, the basis for the
Summit1031bkjustice Blog .

Part 14 of Original Blog Post -

"Cash $14 Million"

Bond $10 Million
E&O $3 Million
Note Receivable – Steve White $1.2 Million
Property Investments - $11.5 Million
Business Interests - $1 Million”

Part 14 - Why I wrote this and/or source of comment -

I linked to the Summit1031bkjustice Blog at the bottom of the post I am on Trial for. This
information is on the Home Page of that Blog (Exhibit 511). This information is also in
(Exhibit 510) - Section F Page 5 of the Judicial Proceeding Case No. 08-37031 rld11
for more information on this. Keeping in mind that Exhibit 510 is a Judicial Proceeding which is,
in part, the basis for the Summit1031bkjustice Blog .


Part 15 of Original Blog Post -
“The Initial Amount being handed over voluntarily by the Summit Shareholders was $40.7
Million. Summit only owed $28 Million."

Part 15 - Why I wrote this and/or source of comment -

This $40.7 Million is on the Summit1031bkjustice Blog, in which I linked to at the bottom of the
post I am on Trial for. This information is on the Home Page of that Blog. (Exhibit 511).

This information is also in original bankruptcy filings. (See Exhibit 510) - Judicial Proceeding
Case No. 08-37031 rld11 for more information on this. Keeping in mind that Exhibit 510 is a
Judicial Proceeding which, in part, is the basis for the Summit1031bkjustice Blog.

The $28 Million Came from a Round up of " it has about $27,831,363" (See Press Release -
Exhibit 517).

Part 16 of Original Blog Post -
"Since the beginning Kevin Padrick of Obsidian Finance Group, and Tonkon Torp have taken
interests’ in property from innocent investors, they passed on sales that would’ve brought more
money to the bankruptcy estate, either because they weren’t going to get their 15% commission
at the time or because they were trying to squash innocent investor’s who were in their way.
(Thug and Thief? You Bet)"

Part 16 - Why I wrote this and/or source of comment -

(Exhibit 510 - see also Exhibit F of Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11
talks of this, as does the Summit1031bkjustice Blog (Exhibit 511 & 521), and the Robert Opera
Letter to David Aman in the Summit Bankruptcy regarding this issue, (See Exhibit 523). (See
Exhibit 533) for “passed on sales”


Part 17 of Original Blog Post -

"Kevin Padrick of Obsidian Finance Group also got a settlement of $16.8 Million from the
Summit Shareholders, they got an unknown settlement from Umpqua Bank, "

Part 17 - Why I wrote this and/or source of comment -

Source, the Umpqua Lawsuit was all over the news.

Part 18 of Original Blog Post -
“and just the other day they are suing every attorney Summit ever used. "

Part 18 - Why I wrote this and/or source of comment -

This is true to the best of my knowledge. I meant to say just the other day I heard. This is
simply what I have heard on the other Attorneys. The Umpqua Bank Lawsuit is online, and yes
Unknown Settlement. I have no reason to believe this is not true in any way.



Part 19 of Original Blog Post -
"Not to mention that Kevin Padrick of Obsidian Finance Group already collected the Bond
of $10 Million, the E&O of $3 Million, the business interest of $1 Million and Several Million in
Property Investments."

Part 19 - Why I wrote this and/or source of comment -
This is true to the best of my knowledge. I have no reason to believe this is not true and
(Exhibit 510) - Judicial Proceeding Case No. 08-37031 rld11 talks of this, as does the
Summit1031bkjustice Blog (Exhibit 511)

Part 20 of Original Blog Post -
"So Kevin Padrick of Obsidian Finance Group made money hand over fist for 2 years and
counting, and he wants me to SHUT Up so he can keep making money."

Part 20 - Why I wrote this and/or source of comment -

This is true to the best of my knowledge. It is also rhetorical in the wanting to Shut me Up so he
can still keep making money.

Part 21 of Original Blog Post -
"It would be impossible to get an exact amount of what Kevin Padrick of Obsidian Finance
Group and Tonkon Torp has received and disbursed. They have jumbled the books I'll bet, and
taken a piece of every dirty deal.. above the law and with no oversight or transparency what so
ever."

"It would seem that they don’t have to report what type of money came in and what type of
payments went out and to whom. No one is monitoring this money and they are dealing with
Millions upon Millions."

Part 21 - Why I wrote this and/or source of comment -

This is true to the best of my knowledge. I say "I'll bet" in the above as to imply that is
what I think happened, this is not defamation. And I fully believe it would be impossible to
determine the "exact amount" received, though it is a federal court proceeding and SHOULD
be Transparent. I say there is no oversight due to the history and seeming conflict of interests
between the US Trustee and Padrick of Obsidian as the Bankruptcy Trustee in the Summit 1031
Bankruptcy.

Also I say this because I read in (Exhibit 511) that Stephanie Deyoung, Oregon CPA and
Insider, asked the FBI in her interview about oversight and the FBI investigator claimed that they
don't know Bankruptcy Law. So who is Holding Them Accountable? There "seemed" no one to
me.

I say in the Subject Post that "it would seem", meaning this is what it seems to me, based on my
perspective, what I read and my knowledge of the Summit 1031 Bankruptcy.

Part 22 of Original Blog Post -
"Kevin Padrick of Obsidian Finance Group - Tax Fraud? Fraud Against the Government?
Gee ya Think?"
Part 22 - Why I wrote this and/or source of comment -

Each phrase ends with a question mark. This portion of the subject blog post is simply
questioning whether or not Tax Fraud exists in the Summit 1031 Bankruptcy case. It is
not accusing Padrick nor Obsidian of Tax Fraud.


Part 23 of Original Blog Post -
"The Summit Principals also did their own 1031 Exchanges during the past years as they
purchased and sold properties. When you do an exchange you have deferred gain that you
don’t pay tax on until you sell the property."

Part 23 - Why I wrote this and/or source of comment -

The above is a Fact, the Summit Principals did buy and sell real estate, and they did their own
1031 Exchanges in this process. And when you do a 1031 Tax Exchange you have a "Deferred
Gain" .

Judicial Proceeding Case No. 08-37031 rld11 Objection to Attorney & Professional Fee of
Obsidian Finance Group LLC, (Exhibit 510). Additionally, I have been a real estate broker
owner for over a decade now and I know what this issue implies. Also see (Exhibit 522) which
talks of deferred gain.

Part 24 of Original Blog Post -
"When Kevin Padrick as Chapter 11 trustee did a turnover of all the assets to his liquidating
trust, these deferred gains became tax liabilities to the liquidating trust.”

Part 24 - Why I wrote this and/or source of comment -

The Summit Principals did buy and sell real estate, and they did their own 1031 Exchanges in
this process. And when you do a 1031 Tax Exchange you have a "Deferred Gain" .

Judicial Proceeding Case No. 08-37031 rld11 Objection to Attorney & Professional Fee of
Obsidian Finance Group LLC, (Exhibit 510). Additionally, I have been a real estate broker
owner for over a decade now and I know what this issue implies. Also see (Exhibit 522) which
talks of deferred gain.



Part 25 of Original Blog Post -
“However, Obsidian Finance’s accounting staff is conveniently leaving these deferred gains
out of their tax returns.”

Part 25 - Why I wrote this and/or source of comment -
This is True as far as I know. I have never been given any information to suggest that this is not
true nor was I asked to remove this information from the Subject Post.

As far as I know, and believe to be true the Summit Liquidating Trust did not pay the deferred
gain on all LLC's interests held by Summit 1031 Principals and Transferred to the Summit
Liquidating Trust. As a Trustee in a Federal Bankruptcy Proceeding, Kevin Padrick is
considered a Public Figure, with him answering to the Department of Justice Trustee. In a
defamation lawsuit, by law it is the burden of proof of a public figure to prove that the subject
post is wrong. Padrick, in his role as Bankruptcy Trustee (a public figure) must prove this is not
true, and if it is not then why not simply ask me to remove the said post instead of a trial for 10
Million Dollars that I do not in any way have?

Part 26 of Original Blog Post -
“They make plugs to the capital accounts of the Summit Shareholders to get rid of the deferred
gain upon the sale or disposition of the property. “

Part 26 - Why I wrote this and/or source of comment -

This is my understanding of how these types of investments work. In order to not take the hit
of the whole capital gain when they liquidate the property, most find that making plugs to the
capital accounts is the best way to remedy this issue. I am a real estate broker owner, I am
familiar with 1031 Exchanges and Real Estate Investments, and my partner was an accountant
for over 20 years, this is simply how it works.

Part 27 of Original Blog Post -
“For an example, Kevin Padrick just gave away the Summit Shareholders’ interest in Century
Drive Mobile Home Park to another owner named Jim Hull.”

Part 27 - Why I wrote this and/or source of comment -

It is my understanding that Jim Hull was given this interest, I was not given any information
to the contrary nor asked to retract the subject post. (See Exhibit 522 - 2011 Annual Report
showing Jim Hull as sole member signed 1/3/11)

Part 28 of Original Blog Post -

“Upon Disposition, the trust should have recognized around $600,000 of taxable gain on behalf
of the interest owned by Mark Neuman and Brian Stevens.”

“No such gain was reported on this tax return and the tax of $174,000 (20% to IRS and 9% to
Oregon) was never paid by the liquidating trust.”
“Why would Kevin Padrick of Obsidian Finance Group pay the tax when no one is monitoring
his work?”

Part 28 - Why I wrote this and/or source of comment -

This is how I believe it works, upon disposition (settlement) the trust, the entity that took over
the liability of the deferred gain should have recognized (paid or took on) “around” $600,000
of taxable gain, that is how it works. Exhibit 529 shows tax chart of gain percentage, I Used
to Determine tax gain to the best of my knowledge. I used 20% Capital Gains Tax, and a 9%
Oregon State Tax, to estimate what was owed. The existence of this deferred gain can be found
in (Exhibit 522) in regard to Century Drive Mobile Home Park and in an Email from Attorney
Robert Opera to David Aman Tonkon Torp on this issue as part of a Judicial Proceeding
Case No. 08-37031 rld11 Objection to Attorney & Professional Fee of Obsidian Finance
Group LLC, (Exhibit 510 (Exhibit F-9)).

I have been given no reason at anytime by anyone to believe this statement is not true, if the tax
was paid then all Obsidian had to do was email me a retraction request with this proof and the
post would have been immediately dropped. I have no information as to believe that this gain
was reported to the IRS.

I do believe that no one is or ever was monitoring What Kevin Padrick of Obsidian
Finance Group did.

Part 29 of Original Blog Post -
“Kevin Padrick of Obsidian Finance Group would rather keep this MONEY and file more
lawsuits to help pad his pockets some more.”

Part 29 - Why I wrote this and/or source of comment -
This is Opinion, and What I Believe to Be True.

Part 30 of Original Blog Post -
“There are many more properties with large amounts of deferred gain and related tax liability
that are probably not being reported. “

Part 30 - Why I wrote this and/or source of comment -
There are many LLC’s, Properties that do have large amounts of deferred gain and related
tax liability and I said they “probably” have not been reported, I did not say they had not
been.

Part 31 of Original Blog Post -
“I, you can file a Whistleblower Lawsuit and get 30% of recovery of what Kevin Padrick of
Obsidian Finance Group has frauded the U.S. Government.”
Part 31 - Why I wrote this and/or source of comment -
I understand this statement to be true, if you file a whistleblower lawsuit you are entitled
to recover of what fraud the U.S. Government Finds, if they find no fraud, no money.

Part 32 of Original Blog Post -
“The IRS and the Oregon Department of Revenue should really look at this, because it means
there is a lot of missing tax dollars to our federal and state governments."

Part 32 - Why I wrote this and/or source of comment -
I fully do believe the IRS and the Oregon Department of Revenue should really look at this, and
I say SHOULD.

Part 33 of Original Blog Post -

"When will be enough money for Kevin Padrick of Obsidian Finance?

Kevin Padrick of Obsidian Finance Group - Thug and Thief will run this score out for as
long as he can because he has and can get much, much more money than what is due to the
creditors. He will be paying his attorneys, Tonkon Torp for cease and desist orders and lawsuits,
while Obsidian Finance Group LLC gets 15% commissions on all sales and Kevin Padrick of
Obsidian Finance Group spends oodles of hours working so very hard to pad his own pockets
that paying back the creditors will be the very last thing he does."


Part 33 - Why I wrote this and/or source of comment -

This is true to the best of my knowledge. Padrick has yet to prove that the above is not true, I
am fully of the mind, my belief that the above is fact. I have no reason to believe it is not fact.

(Exhibit 510), The Judicial Proceeding Case No. 08-37031 rld11 Objection to Attorney &
Professional Fee of Obsidian Finance Group LLC talks about the 15% commission and
hours that pad pockets, and its the main topic of the blog I link to in the subject post
www.summit1031bkjustice.com/ , Exhibit 511.

Part 34 of Original Blog Post -

"Much More Coming Soon.. as David Aman, for the Corrupt Oregon AttorneyKevin Padrick of
Obsidian Finance Group - has sent me a Cease and Desist so I must prove the LIES and
Illegal Activity on the Summit 1031 Bankruptcy out of Bend Oregon ... So stay Tuned.."


Part 34 - Why I wrote this and/or source of comment -
This is true to the best of my knowledge. I do believe Padrick is corrupt, he did have his attorney
send a cease and desist and after that I did set out to prove lies and possible illegal activity, as it
sure seems to me that there was illegal activity surrounding the Summit 1031 Bankruptcy.



Part 35 of Original Blog Post -
"I Sure am Going be Busy Proving that Kevin Padrick of Obsidian Finance Group Oregon
Lies, Commits Fraud, Breaks the Law and is a THUG and a Thief."

Part 35 - Why I wrote this and/or source of comment -

This is true to the best of my knowledge and a Bit Rhetorical and Poking Fun.

Part 36 of Original Blog Post -
"more at

http://www.obsidianfinancesucks.com/

http://www.summit1031bkjustice.com/

Crystal L. Cox
Investigative Blogger
Crystal@CrystalCox.com "

Part 36 - Why I wrote this and/or source of comment -

That was the bottom of my post for the reader to go to for more information or to email me
with any questions that they may have. A reasonable reader would email me for more source
information if they had a question. A reasonable reader would email and ask for a retraction
with documents to back up this request if they had a concern with something I had posted about
them or a company they were researching, say for a job, contract or Loan.

Also Stating ObsidianFinanceSucks.com as a Reference is to show reader the overall tone of
the post and where to find out more about what I think, and what I have researched on this post.
ObsidianFinanceSucks.com is a blog I was already granted a Summary Judgement on with
the basis being Free Speech. The subject blog post for which I am on trial for was posted on
ObsidianFinanceSucks.com on Dec. 24th, the day before the subject post I am being sued on ,
as seen in (Exhibit 516).




Crystal L. Cox
Pro Se Defendant
I Swear this is True to the Best of My Knowledge.

								
To top