Thursday, August 7, 2014

Investigative Blogger Crystal L. Cox FILES Attorney General, DOJ, FBI, IRS and other ... Complaint Against KEVIN Padrick of Obsidian Finance Group for his actions in the Summit Bankruptcy.

"Regarding:  Complaint Against Oregon Attorney / Financial Advisor Kevin Padrick of Obsidian Finance Group in his capacity as TRUSTEE in the Summit Bankruptcy, Oregon Bankruptcy Case 08-37031-rld11.


My name is Crystal L. Cox, I am an investigative blogger who has been reporting on the Oregon Bankruptcy Case 08-37031-rld11 since December of 2009.

I have owned my own real estate company since April of 2000.

Through the years I had taken many classes by the Summit Accommodators Company and recommended clients to them, as they operated in 5 states, 2 of which I was licensed in, Montana and Oregon.

Currently my Real Estate Brokerage is based out of Washington State.

When Summit announced bankruptcy I took a professional and personal issue on this massive matter that concerns all real estate agents and the public at large, due to potentially affecting all real estate consumers.

I began reporting on the story in December of 2009, and from there received tips from insiders. After this I read massive amounts of court documents, interviewed insiders, listened to hearings, watched videos of meetings, read blogs, read depositions, read operating agreements, and studied the case as much as possible. I also received a large amount of emails and information from several insiders over 3 years.

After about 3 years into my reporting, the bankruptcy trustee, Kevin Padrick of Obsidian Finance Group, who had been under contract with the debtor to give them financial advice, and his attorney, David Aman of Tonkon Torp Law Firm,  who was also alleged to be involved in the activities I was alleging, Sued me for 10 million dollars over a blog post that discussed dollar amounts and other details of E and O insurance, attorney fees, insider documents and more.

This information was given to me on this particular blog post from Oregon CPA and Summit insider, whistleblower, Stephanie Studebaker Deyoung. I posted the information she gave me on December 25th 2010.  3 weeks later on January 14th 2011, David Aman of Tonkon Torp Law Firm acting as attorney for attorney Kevin Padrick, the bankruptcy trustee filed a 10 million dollar lawsuit against me.

The information on the blog post they sued me for came from Stephanie DeYoung, however it was also in her blogs and in a court document, and all related EXHIBITS filed by Summit insiders Mark Knowles, Jim Hull and Stephanie Studebaker DeYoung called, OBJECTION TO ATTORNEY AND PROFESSIONAL FEES OF OBSIDIAN FINANCE GROUP LLC; TRUSTEE KEVIN PADRICK & TONKON TORP LLC & REQUEST FOR HEARING.  It was filed on July 2nd 2009.

This motion can be seen attached to this complaint, it is is EXHIBIT 2.

The blog post I was sued on also discusses issues of tax concerns, as Summit 1031 was a business model based on the IRS 1031 Exchange Code. therefore any unethical actions or violation of law in the company would relate back to the 1031 IRS Statutes.

26 U.S. Code § 1031, IRC Code Section 1031

I believe that Kevin Padrick, as Trustee, illegally held up Exchanges in order to wait for his 15% commission on each Exchange. As this was money, assets, property belonging to Creditors.

I believe that Kevin Padrick deliberately held up the 180 Days as in 26 U.S. Code § 1031 for his own personal benefit of a commission for himself being in place first.

“related person” means any person bearing a relationship to the taxpayer described in section 267 (b) or 707 (b)(1). It is my belief that Kevin Padrick was an insider, had control of the Debtor and was not a qualified intermediary and thereby violated 26 U.S. Code § 1031.

It is also my belief that the personal exchanges of the debtor taken over by Padrick were not dealt with properly per 26 U.S. Code § 1031, per discussions with Stephanie Deyoung, and with Mark Neuman and per emails I read between Terry Vance CRO and Kevin Padrick, as well as other parties. As shown in the Objection to Fees in Exhibit 2 there is also an email there between attorney Kevin Padrick's attorney David Aman and attorney Robert Opera discussing the matter of tax issues on 1031 Exchanges, see Exhibit 6.

I have been in court proceedings with David Aman of Tonkon Torp Law Firm and Kevin Padrick of Obsidian Finance since December 22nd, 2010 when AMAN, acting as Padrick’s attorney made contact with by a legal threat.

I now feel compelled to file this complaint, in effort to warn the public at large and to report what I know in this case, in effort that Justice is served.




Background

Kevin Padrick was introduced to the Summit Principals Mark Neuman, Brian Stevens and Tim Larkin by Bend Oregon Developer William Smith.

Kevin Padrick and his financial firm Obsidian Finance Group was recommended by William Smith in claims that they knew people with deep pockets and could help Summit to liquidate quickly in order for Summit to avoid bankruptcy, and be able to responsibly pay off Creditors quickly.

Summit liked what Kevin Padrick and his firm Obsidian Finance Group proposed and therefore they began working with Kevin Padrick.

Summit 1031 contracted with Obsidian Finance because Kevin Padrick, Obsidian Finance Group Senior Principal, told the 4 Summit principals that their company (Obsidian Finance Group) could “…move quickly, engage the insurance companies almost immediately, work fast enough perhaps so [they] could preserve some exchanges.”

Summit Accommodators’ principals explained the whole situation to Obsidian Finance Group in detail, including specifics on many individual properties and LLC’s that had significant value.  

Kevin Padrick told Mark Neuman, Brian Stevens, Tim Larkin, and Lane Lyons that he understood exactly how to handle the situation.  

Padrick said his company had been very successful handling situations like Summit’s with a large investment portfolio to liquidate.  He understood the complex services like exchanges and their related tax consequences, mitigating costs and funding issues.

Padrick said his company had extensive knowledge on exchanges and would be able to handle completion of the in-process exchanges.  Of course, this was an important issue to the principals.  They had a specific interest in getting exchanges completed quickly in order to help the exchangers, creditors (real estate consumers) as well as avoid additional liability.  

Kevin Padrick stated he had connections to all sorts of financial resources from which he believed he could arrange funds to take care of exchange fund shortages in the interim, until the hard assets could be liquidated.  Getting interim cash would help complete the exchanges on a timely basis.  Wouldn’t you hire him if he told you this if you were in a similar situation?


Kevin Padrick Was Under Contract with Debtor

As seen in the initial press release on the Summit Bankruptcy dated December 19th 2008, put out by Summit’s attorneys Sussman Shank, Exhibit 4, Kevin Padrick, Obsidian Finance Group had been hired to provide financial consulting services to Summit.

Summit hired Kevin Padrick in hopes he would do as he pitched to them previously and sell their assets quickly to his friends and colleagues with “deep pockets” so that Summit could pay off the Creditors and get on with their life.

Page 2 of the Press Release, Exhibit 4, Says;

“3) 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.”

Obsidian Finance Group, Kevin Padrick had been working with Summit, had meetings and told Summit they were working on the situation.

Though Obsidian Finance Group, Kevin Padrick had been working with Summit prior, they signed a contract with Summit on December 18th, 2009, as seen in Exhibit 1.

Between the time Obsidian met with Summit and signed the contract, it appeared that Kevin Padrick was investigating what opportunities there were for him to work against Summit, instead of with Summit

Exhibit 9 is alleged to be billing from Obsidian Finance Group, Kevin Padrick for having meetings with the Creditors Committee attorney Steven Hedberg to pitch himself to them to be the TRUSTEE in the Summit Bankruptcy. Even though, clearly, Kevin Padrick was under contract with the debtor / defendant and obligated, under contracted to act in their best interest and to do as the contract stated to the best of his ability.

Kevin Padrick had worked with Steven Hedberg at Miller Nash and was his superior. It is alleged that Steven Hedberg helped Kevin Padrick to be appointed as Trustee, even though Padrick was already under contract and fiduciary obligations to the debtor.

Kevin Padrick has worked in the past with Department of Justice Trustee Pamela Griffith and Leon Simson of Tonkon Torp. This connection allowed for DOJ Trustee Griffith to be motivated to pull favors to have Padrick appointed as Trustee even though she knew there was records in the court and a signed contract that clearly showed that Kevin Padrick was under contract with Debtor, and hired to help them to restructure debt that later became a debtor in possessions, until Kevin Padrick was appointed TRUSTEE by Griffith’s office and basically did a hostile takeover of his own clients, he was under contract to help.
Department of Justice Trustee Pamela Griffith had Kevin Padrick appointed, knowing full well that he was under contract with the debtor / defendant and that he would then be essentially the Plaintiff and working directly against his own clients, with an unethical and unfair advantage as he had all their records, files, secrets, strategies and history and was under contract, as see by the details of Exhibit 1.

DOJ Trustee Pamela Griffith had Padrick appointed, even AFTER Sussman Shank attorney Susan Ford circulating an email, as seen in Exhibit 3 to all involved in the bankruptcy, including her office, that appointing a trustee was an extreme measure and was NOT beneficial to the Creditors.

It is a FACT that the only person that benefitted directly from Kevin Padrick’s appointment as TRUSTEE is Kevin Padrick and his financial firm Obsidian Finance Group and to the direct detriment of the Creditors, in violation of contract law, 1031 exchange laws and bankruptcy laws and to the harm of his clients the debtor / defendants SUMMIT.

Indirectly and in the millions there were many others who benefitting from Kevin Padrick’s appointment, such as and not limited to: David Aman, Leon Simson, David Peterson and the Tonkon Torp Law Firm. David Brown and Patricia Whittington of Obsidian Finance Group, Sussman Shanks Tom Stilley and Susan Ford, Judge Randall Dunn’s relative CEO Michael Dunn of Pacificorp, Steven Hedberg, Jeanette Thomas and Michael Simon of Perkins Coie law firm, Annie Buell and deals with Kevin Padrick to be ahead of other Creditors for property sales and pay offs, Jim Hull who allegedly later made deals with Padrick to be paid off sooner than other creditors and many others.

Sussman Shank Filing Regarding Obsidian Finance Group, Doc. 141

Attached Exhibit 7, Case 08-37031-rld11, Doc 141 Filed 02/10/09 shows that Obsidian was retained by Summit, and that the attorneys and the courts knew that Obsidian Finance Group, Kevin Padrick was under contract to provide financial services for the Debtor.

The DOJ Trustee and Judge Randall Dunn approved payment for Padrick as a financial advisor, under contract with the debtor AND then appointed and approved PADRICK as TRUSTEE on the opposite side of this legal case as his own clients. From working for the debtor / defendant to being the TRUSTEE / Plaintiff.  

This is unethical at best, and violates Oregon laws and rules for attorneys, of which Kevin Padrick is, and this violates contract law, as well as bankruptcy code.

Judge Randall Dunn and DOJ Trustee Pamela Griffith clearly knew that this action of appointing PADRICK as trustee was a violation of public trust, of bankruptcy law, of contract law, of due process laws and of the constitutional rights of the debtor, whom PADRICK was CLEARLY under contract with and had a fiduciary duty to.

Exhibit 7 also shows another date for the contract between Summit and Obsidian. And it shows clearly that Obsidian Finance Group is under contract and working allegedly per that contract, for the best interest of the debtor, who later would be the “defendant” in the following years of legal actions surrounding the Summit Bankruptcy, and indictments thereafter.

Therefore as seen clearly in Exhibits and is a matter of record in the courts in the Summit Bankruptcy and the Obsidian Finance Group v. Crystal Cox case, Obsidian Finance Group, Kevin Padrick clearly worked for the debtor / defendant SUMMIT and was clearly under contract with the debtor / defendant for their best interest to help them restructure debt, sell assets and to provide financial consulting services.
Obsidian Finance Group, Kevin Padrick had SUMMITS files, software, computer data, strategy, and decades worth of personal, private and financial information.

Obsidian Finance Group, Kevin Padrick was paid, under signed contract, $100,000 to provide services to SUMMIT as seen in in Exhibit 1 and Exhibit 7.

Therefore, I, Crystal L. Cox, allege that Obsidian Finance Group, Kevin Padrick violated breach of contract laws, as well as bankruptcy code.

As clearly stated in David Aman’s deposition of Mark Neuman, Kevin Padrick, though he had been under contract and fiduciary obligation with SUMMIT, the Debtor / Defendant, became the PLAINTIFF;  “Mr. Padrick is also the plaintiff on behalf of the bankruptcy estate in a case that has been filed in bankruptcy court against you,” ~ See Mark Neuman Deposition, September 28th, 2009, Exhibit 5, page 4, line 18-20.

I allege it is a violation of contract law and bankruptcy laws for Kevin Padrick to have been appointed as TRUSTEE, after he had been under contract with, working for, in control of the debtor / defendant.


I, Crystal Cox allege that Kevin Padrick violatedBankruptcy Code 11 U.S.C. § 1104(a), 11 U.S.C. § 101(31), 11 U.S. Code § 101 (14)

I Allege that Kevin Padrick was an insider per bankruptcy law and that he was under contract with the debtor and that this BARRED him as a matter of law from being the bankruptcy trustee in the SUMMIT Bankruptcy.

Kevin Padrick did not declare in his trustee statement that he had prior contracts with Summit and therefore clear conflicts of interest in being a TRUSTEE in this case.
Kevin Padrick  had been working for the debtor and was therefore legally an insider, and in bankruptcy code, an “insider” is not allowed to be a Trustee. And per the record a TRUSTEE was NOT in the best interest of the creditors PERIOD.

Per Bankruptcy Code;

"The party seeking appointment of a chapter 11 trustee has the burden of showing, by clear and convincing evidence, " as in (3) below.  

"the appointment of a § 1104 trustee is an extraordinary remedy" and it was unnecessary in the Summit Bankruptcy and cost the investors and creditors millions on top of millions a month it seemed and for no real reason of the best interest to them or the estate.

I allege that those who set up this bankruptcy scam took millions from the estate and that was money that they simply had no legal right or reason to take.

Section 1104(a) of the Bankruptcy Code governs appointment of a chapter 11 trustee. It provides:

a) At any time after the commencement of the case but before confirmation of a plan, on request of a party in interest or the United States trustee, and after notice and a hearing, the court shall order the appointment of a trustee--

(I) for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor by current management, either before or after the commencement of the case, or similar cause, but not including the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor;

(2) if such appointment is in the interests of creditors, any equity security holders, and other interests of the estate, without regard to the number of holders of securities of the debtor or the amount of assets or liabilities of the debtor; or

(3) if grounds exist to convert or dismiss the case under section 1112, but the court determines that the appointment of a trustee or an examiner is in the best interests of creditors and the estate. "

"The party seeking appointment of a chapter 11 trustee has the burden of showing, by clear and convincing evidence, "cause" under § 1104(a)(I), or the need for a trustee under § 1104(a)(2)."

"the appointment of a § 1104 trustee is an extraordinary remedy"

"("The decision to appoint a chapter 11 trustee is a factual determination entrusted to the discretion of the bankruptcy judge.")."

in "the interests of creditors"

("[T]he factors constituting a basis for appointing a trustee under § 1104(a)

(2) are amorphous, diverse, and necessarily involve a great deal of judicial discretion"). In essence, § 11 04( a)

(2) reflects "the practical reality that a trustee is needed." In re V Savino Oil & Heating Co., 99 B.R. at 527 n. 11. "

Appointing Kevin Padrick as TRUSTEE was not only a violation of bankruptcy code and a breach of contract laws, but it was NOT IN THE BEST INTEREST OF THE CREDITORS. And all parties were made aware of that as seen clearly in Exhibit 3.


I allege that per Bankruptcy Code 11 U.S.C. § 101(31) Kevin Padrick was an Insider and NOT a "Disinterested Party".

In looking at Bankruptcy Code11 U.S.C. § 101(31), it is clear that due to Kevin Padrick being under contract to advise the Debtor, that Kevin Padrick of Obsidian Finance Group was not legally allowed to be "appointed" as the Trustee in the Summit Bankruptcy.


Bankruptcy Code. See 11 U.S.C. § 101(31)

"(14) The term "disinterested person" means a person that

(A) is not a creditor, an equity security holder, or an insider;

(B) is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and

(C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the
debtor, or for any other reason."



A Bit on 11 U.S. Code § 107

Exhibit 2,Document Filing of this Oregon Bankruptcy discusses the very things that Cox's blog post does, and even has Exhibits, per 11 U.S. Code § 107 - Public access to papers this information should be public. Yet David Aman of Tonkon Torp Law Firm, on behalf of Kevin Padrick of Obsidian Finance Group SUED an investigative reporter / blogger, me, Crystal L. Cox, demanding that I stop posting / publishing on this bankruptcy. They sued me for defamation, and the District of Oregon is protecting these top Oregon Law Firms and finance companies and especially protecting Judge Randall Dunn. DOJ Trustee Pamela Griffith and Judge Michael Simon who was a creditor attorney from Perkins Coie who SUED Umpqua Bank with Kevin Padrick, allegedly in the best interest of the creditors. More Commission to TRUSTEE Padrick, 15% I believe and a large amount of money directly to attorney Michael Simon of Perkins Coie who is now Federal Judge Michael Simon.


Bankruptcy Code 11 U.S. Code § 101 (14) States;
"(14) The term “disinterested person” means a person that;

(A) is not a creditor, an equity security holder, or an insider;

(B) is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and

(C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason."

See Mark Neuman Deposition, September 28th, 2009, Exhibit 5, Page 92, Line 3 Through Page 97 talks about Kevin Padrick being brought in to help them financially and that he had friends with deep pockets to help them liquidate and that this was all BEFORE Summit Filed for Bankruptcy.

There is also a video tape of a meeting where kevin Padrick of Obsidian Finance Group is discussing the work he had done prior for his clients, whom he was under contract with and took a $100,000 for his services.

Here is a link to the videos of that meeting
Kevin Padrick is in the back on the far right.

The videos are important as they are further proof that Kevin Padrick was working with and for the debtor and therefore was an insider and SHOULD not have been appointed TRUSTEE, as a matter of law.

I was told by Stephanie DeYoung that a Lynne Hoffman, I believe a principal in Inland or something, I don’t know, and have never communicated with her but I was told that she was threatened into silence by Kevin Padrick and his attorney David Aman.


Judge Michael Simon, former Perkins Coie Attorney

Perkins Coie Creditor attorney Michael Simon worked with Kevin Padrick TRUSTEE in the $30 Million plus settlement with Umpqua Bank, this affects shareholders of Umpqua Bank and should be reported to the SEC and banking authorities.

I allege that Perkins Coie Creditor attorney Michael Simon and Kevin Padrick TRUSTEE targeted Umpqua because they had the deepest pockets, and best insurance. They strong armed Umpqua and made threats to top executives of getting them indicted so they would settle and cooperate for over 30 million in settlements of which Kevin Padrick TRUSTEE got paid hundreds of thousands in billable hours and millions in commission (15%).  And Perkins Coie Creditor attorney Michael Simon made large amounts of money as well.

I, Crystal Cox allege that Judge Marco Hernandez was brought in to the Obsidian Finance Group v. Crystal Cox case, removing Judge Ancer Haggerty to protect Perkins Coie and former Perkins Coie attorney Michael Simon, note Judge Michael Simon, sworn in at the same time and I allege is friends with Judge Marco Hernandez. Perkins Coie law firm threw a party for Judge Hernandez welcoming him.

Judge Michael Simon and his wife Democratic U. S. Representative Suzanne Bonamici are alleged to be Portland, Oregon’s most powerful political couple.

Neither Judge Michael Simon nor Judge Marco Hernandez were Federal Judges when Obsidian Finance Group, through their attorneys David Aman and Steven Wilker of Tonkon Torp law firm SUED Crystal Cox for Defamation for reporting on what she alleged and still alleges is violations of Bankruptcy Code, Breach of Contract Laws, Ethics, and 1031 Exchange Code.


Breach of Contract

I, Crystal Cox allege that Obsidian Finance Group and Kevin Padrick violated the constitutional rights, bill of rights and due process rights of the Summit Principals and to the detriment of the Summit Creditors (Real Estate Consumers).

Note on page 88 line 6-16 of Mark Neuman’s Deposition, Exhibit 5, he CLEARLY tells David Aman that Crystal Cox, me, is a Real Estate Consumer Advocate. Yet AMAN, enabled by Judge Marco Hernandez sued COX and tried to chil her speech, intimidate her into silence and continues to do so to this day and to claim that Cox had and has malice when COX, me, has always been fighting for the rights of Real Estate Consumers and the transparency of bankruptcy courts and especially those that directly affect real estate consumers.



I, Crystal Cox allege that Obsidian Finance Group and Kevin Padrick set up their clients and that they could do this to others in the future as they have already done this same thing in the Cascadian Bankruptcy and Homestreet Bank fought back.

I, Crystal Cox allege that Obsidian Finance Group and Kevin Padrick got “IN” with the SUMMIT principals by offering them a quick way out and to pay off creditors so they could get on with their life.

OFG and Padrick alleged they had connections to real estate buyers, and insurance companies and that SUMMIT would be able to pay creditors quickly but instead OFG and Padrick got ALL of SUMMIT’s asset information, all their financial secrets, strategies, personal information, software, files and they used this to pitch themselves to be on the OPPOSITE side of their client and send them to prison while pillaging their assets for the personal gain of OFG and Padrick.

OFG and Padrick used information they got under contract and fiduciary duty working for the debtor, their clients, directly against them, for the personal and professional gain of Obsidian Finance Group and Kevin Padrick.

The debtor had no way to fight back as they were painted out in the media as the criminal while PADRICK ran off with their money, to the direct HARM of the real estate consumers, the Creditors and Investors involved.

This Violation of public trust should not be allowed ethically and is certainly a violation of contract law in which enabled OFG and Padrick to illegally make millions a year for 5 years, while his clients fought for their life as they were headed to jail.

Summit whistleblower Stephanie Studebaker DeYoung told the FBI, they said they don’t know bankruptcy law. She told Judge Randall Dunn and the DOJ Trustee as is clear in hearings and documents of the bankruptcy.

This got her locked away in involuntary incarceration at a hospital, to shut her up and discredit her.

Patty Whittington, Obsidian Finance Group VP was on the board of Cascade Health Systems, that runs the hospital that incarcerated Summit whistleblower Stephanie Studebaker DeYoung and FORCED her to STOP talking to me an investigative reporter.

Cascade GAVE Kevin Padrick and David Aman her case file number and her medical information in violation of HIPAA Laws.

When the whistleblower was finally reached 40 days into her lockup, she had this to say;

Interview Video part ONE;

Interview Video part TWO:


Obsidian and Media

OFG and Padrick used media, law firm, judicial and political connections to paint SUMMIT out as monsters, evil, bad guys and they have done the same of me, Crystal Cox, in BIG MEDIA and abuse of the courts. All this to protect their own illegal actions and HUGE personal profit.

Kevin Padrick uses any and all tactics to bully, harass, sue, retaliate, intimidate and threaten those he targets. His goal is to get in personally and to offer help, then to betray his clients or those he advised and destroy their companies to his benefit.

Pattern and History RICO

See Cascadia Bankruptcy and the Homestreet Bank Objection, Exhibit 10.
The motions and documents involved in CASCADIA PROJECT LLC, Debtor, No. 09-20780, KAREN A. OVERSTREET, Bankruptcy Judge.2011 WL 2134379 (Bankr.W.D.Wash.) are hereby now included in their entirety as evidence of Kevin Padrick and Obsidian Finance’s pattern and history.

In the Cascadia Bankruptcy Kevin Padrick sold himself as helping them as well, just like in Summit and instead got his company a deal on assets, by liquidating and bullying those he had offered to help and was under contract with.  

Ruling by KAREN A. OVERSTREET, Bankruptcy Judge. 2011 WL 2134379 (Bankr.W.D.Wash.) May 26, 2011. MEMORANDUM DECISION.

“In this case, Obsidian failed to disclose it's conflict under Rule 2014 immediately when it arose on May 17, 2010. Instead, the conflict was not disclosed until after HomeStreet filed its Motion to Disqualify on June 14, 2010. By that time, Obsidian had been acting simultaneously as the estate's financial advisor and as a proposed investor in the Debtor for a month and the path to the Debtor's reorganization was fixed with TPG for purposes of the upcoming Evidentiary Hearing. Accordingly, the Court finds that Obsidian's belated disclosure does not absolve it of the consequences of the conflict of interest.”

I recommend looking at ALL of the Homestreet Bank filings against Padrick and Obsidian, as they clearly show a pattern and history.

JUDGE RANDALL DUNN

I, Crystal Cox, allege that there were deals made that benefitted Judge Randall Dunn and his family through the assets and dealings of the Summit Bankruptcy.

I allege that Judge Randall DUNN profited from real estate and related utility company and development deals stemming from the Summit bankruptcy Case. Including connections to 20 million dollars in wattage contracts with Pacificorp CEO Michael Dunn, whom I allege is related to Judge Randall Dunn.

Judge Randall Dunn FORCEFULLY suggested that Kevin Padrick be the Trustee in the Summit Bankruptcy. This is clear in the hearing of the Summit bankruptcy that he appointed Padrick though the TRUSTEE office is suppose to and made that clear to him.

At this hearing you can clearly hear Stephanie DeYoung ask about Obsidian working with Summit and she is ignored by the courts.

It is an error in law for a JUDGE to appoint a trustee, especially when he knows that the person he is appointing was working for the debtor and he knows it is not in the best interest of the creditors to appoint a trustee.

When you listen to the hearing, it is clear that Judge Randall Dunn is forcing the DOJ office to appoint Padrick.

Listen to the hearing starting at 3:03 where the Judge seems to make a clear case for Obsidian to be the Trustee, which a Bankruptcy Judge would have to know that an Entity cannot be a Trustee, so thereby Kevin Padrick was chosen, appointed, forced in as TRUSTEE when they ALL knew that Obsidian was under contract with the debtor, and could not as a matter of law be the TRUSTEE.

The hearing used to be posted on Stephanie DeYoung’s blog, and attorney David Aman questioned Stephanie DeYoung on August 25th, 2009 as to where she got the recording. This was asked right after AMAN asked who Crystal Cox was, yet three years later sued Cox and claims she had malice in her reporting on corruption in the Summit Bankruptcy.


Kevin Padrick interjected himself into all the Media he could.

The Ninth Circuit said in a hearing on the Obsidian v. Cox appeal, that it would be improper for a Trustee to contact Media in a case. It was my understanding that media would have to report on the story and that a Trustee cannot simply create a media storm. Especially one whereby the TRUSTEE was using the media to make his former clients whom he betrayed, look bad to officials so they go to PRISON while he gets a reward, commission and billable hours for the following 5 years from their hardship, which in the end game, he made sure happened.

Yet Kevin Padrick conspired with, contacted and made sure that media had information to ensure that SUMMIT looked bad and he looked good.

I, Crystal L. Cox allege that Kevin Padrick, Obsidian Finance Group, as well as Patricia Whittington and Ewan Rose intentionally set up SUMMIT so that they could make millions a month, and then millions a year off of their assets and related deals.

Which includes and is not limited to the the legal action against Umpqua by Kevin Padrick TRUSTEE and Perkin Coie attorney Michael Simon who is now Judge Michael Simon.

The Umpqua Bank lawsuit should NOT have happened, should be VOID and money returned. It was not proper, as a matter of law for Kevin Padrick to have inside information on the debtor / defendant and therefore Umpqua Bank and then actually be the PLAINTIFF against his own clients, which he was under contract with.

Perkins Coie lawyer Michael Simon, now Judge Michael Simon worked with Kevin Padrick on this 30 Million plus settlement.

Kevin Padrick had an "IN" with Steven Hedberg of Perkins Coie and made a deal with the Creditor Committee, while under contract and being paid by SUMMIT to help the Debtors in  "Development of Restructioning Alternatives", "Implementing Critical Restructuring Alternatives"  and other terms of their agreement.

While working for the Debtor, Summit, Kevin Padrick's Client, and billing his client, Kevin Padrick had meetings with Tom Stilley and Steven Hedberg.  These meetings, per inside emails on the record, were not authorized by the CRO, Terry Vance nor by the Debtor.


The SUMMIT Bankruptcy was Supposed to be
a DEBTOR in POSSESSION

Exhibit 7, Case 08-37031-rld11, Doc 141 Filed 02/10/09 ALSO shows that also shows that the bankruptcy, once filed was to be a debtor in possession, another words the company, SUMMIT, was to go on.

It was NOT to be a liquidation.

Though OBSIDIAN FINANCE GROUP'S illicit intentions were all along to LIQUIDATE Summit, send them to jail and get commission from their assets for years to come. As seen in Patricia Whittington, then Obsidian Finance Group's VP, under oath in her testimony at the Obsidian v. Cox Trial.

The testimony below clearly shows that Obsidian Finance Group was providing services under contract with the debtor. OFG was paid by the debtor, thought they did a good job for the debtor and worked for them.

The testimony also shows intention, as it was clearly OFG’s intention to destroy, liquidated SUMMIT so they they would cease to exist and not “go on”. Which was the direct opposite of a “debtor in possession” filing which was to say that SUMMIT planned to “go on” and to still exist as a viable business.  OFG made sure they did not “go on” and in fact made them look very bad in every media outlet and court motion they could. Even though OFG had a contractual and fiduciary obligation to SUMMIT.

Page 109, Line 12 of the Transcripts of Obsidian v. Cox,
as seen in Exhibit 8

Below, Pro Se Defendant Crystal Cox is asking the questions (Q)

AND Obsidian Finance Group VP Patricia Whittington is answering (A)


" Q. Are you aware that Obsidian Finance Group had a contract with Summit at any time?
A. You'll have to -- Summit?

Q. Summit Accommodators?

A. I think -- I actually don't know if it was ever approved by the bankruptcy court. So there was a draft, I do know. I don't know whether it was approved by the bankruptcy court."

Q. Are you aware of -- You say you do the accounting for Obsidian Finance, right?
A. Yes.

Q. Are you aware of a -- or Summit Accommodators, the Summit principals, the owners, had a contract with Obsidian Finance, a signed contract? They took a $100,000 retainer to represent them as their client. Are you aware of this retainer?

A. I was aware of the retainer, yes.

Q. Was this retainer returned to Summit or was it part of the income of Obsidian?

A. It was not returned to Summit. It was applied against the fees.

Q. Are you aware of what services Obsidian Finance provided for Summit?
A. Well, where do you want me start?

Q. Would you say that Obsidian Finance Group -- that Summit Accommodators was a client of Obsidian Finance Group via this retainer and this contract?

A. Yes. I don't -- I'm not sure that's how the bankruptcy views it, but I'm not a lawyer. So I would
have called it a client."

THE WITNESS: I'm not -- I'm not sure I understand. Used their money? Whose?

BY MS. COX: (continuing)

Q. My question is: Was Obsidian Finance Group under a contractual obligation? Was there -- I'm looking for, there was a possible breach of contract. Was Obsidian Finance -- you just testified that they took a $100,000 retainer for service, so that would mean that Summit was a client of Obsidian Finance Group.

A. Yes."

THE WITNESS: I'm not -- I'm not sure I understand. Used their money? Whose?

BY MS. COX: (continuing)

Q. My question is: Was Obsidian Finance Group under a contractual obligation? Was there -- I'm looking for, there was a possible breach of contract. Was Obsidian Finance -- you just testified that they took a $100,000 retainer for service, so that would mean that Summit was a client of Obsidian Finance Group.

A. Yes."

Q. But your company took a $100,000 retainer, yes?
A. I confirmed that, yes.

Q. And this was taken onto the books as a service rendered?

A. Do you want to know what we did at first?

Q. No, just a yes or no, that it was a service rendered to a company, $100,000.
A. Yes.

Q. And this company was Summit?
A. Yes.

Q. So you agree there was a contractual agreement between Obsidian Finance Group and Summit?

A. I'm not a lawyer, so I don't know how you're using those terms, so I don't know how to answer that.

Q. And Obsidian is your company?
A. Yes.

Q. Does this look like a familiar --

THE COURT: Hang on a second. The plaintiffs don't have any objection to this evidence. If you want to offer that exhibit, why don't you tell us what number it is.

Q. So this is your letterhead from your company?
A. Yes.

Q. And this contract is a contract that you recognize as being, so far, from this first page, familiar with the contract within your company?
A. Yes.

Q. This is the second page of the contract. Does this seem like a reasonable part of the contract?

A. It appears to be, yes.

Q. This is page 3.
A. Okay. I can't see the page numbers, but --

Q. It talks about conflicts of interest.
A. Okay. "

Q. And it's a contract basically between -- this is a contract between Obsidian Finance Group and Summit. And this is -- is this the signature of Kevin Padrick?

A. No. That's me.

Q. This is?

A. Yes, PLW.

Q. So you signed for Kevin Padrick?

A. Yeah. He may have been not in the office."

Q. So you took a $100,000 retainer, which was taken in as a service. So you were under -- so Obsidian Finance Group was under contract with Summit to prepare -- to provide financial services to help them restructure their debt?

A. Restructure their debt? They were in bankruptcy and they were liquidating, not restructuring."

Q. Was -- you're saying -- you're testifying that Obsidian -- that Summit was in bankruptcy when they hired Obsidian Finance Group.

A. To my knowledge, yes. We weren't -- we didn't work for them before."

Q.  Mr. Padrick testified earlier that he was -- talked to the Summit principals before they filed for bankruptcy. The records show that he was under contract. This contract was before the Summit principals filed for bankruptcy. And you signed this contract?

A.  We do those in connection with the bankruptcy. So I don't know the exact dates. It was about -- just about three years ago. But if we were working on it, it was just starting at the time of the bankruptcy filing. They were preparing to file or something like that."

Q. But you are in agreement that Obsidian Finance Group was in contract to represent Summit and took money for those services?

A. We had that agreement, yes.

Q. And that Summit was -- so Obsidian Finance had a contractual obligation to the Summit principals?

THE COURT: You've asked that question several times now, and it's already been answered several times.

MS. COX: Okay.

BY MS. COX: (continuing)

Q. What are the pros and cons between a liquidating trust versus a debtor in possession of reorganizing a debt, in your opinion, or your professional opinion and experience?

A. I think it's a legal question. If you would like my -- my understanding, debtor in possession reorganization means the company goes on. Liquidating trust, the company is liquidating; it does not go on. "

Q. So Obsidian Finance Group was under contract with Summit when they were trying to reorganize their debt; and a liquidating trust, then, is part of a bankruptcy, which happens later?

A. I -- I don't know what the contract says. I don't remember it ever as a reorganization. I always recall it as a liquidation."


Q. This contract with Obsidian Finance Group wasn't to help them reorganize?

A. Unless it says that. In bankruptcy, you can be in Chapter 11 and be liquidating."


Q. I'm not an attorney either --
A. Yeah.

Q. -- or a CPA. I'm not sure what this contract means, that Obsidian Finance Group was obligated to Summit. Can I -- can you tell me what this contract says the obligation from Obsidian to Summit is?

A. I would have to read the whole thing, think about it. I don't know. It was three years ago. It is what it
says. I'm telling you my memory is it was a liquidation, not a reorganization."

Q. Are you aware of any privileged or financial information that Summit -- that Summit provided Obsidian Finance Group before their bankruptcy?

A. Privileged? No.

Q. Did -- was there any software, any database at all that Summit turned over to Obsidian, where Obsidian would know any financial information about them before they were involved as a trustee?
A. Before trustee?

Q. Before they were appointed --

A. Trustee wasn't until February. So yes, after the bankruptcy."

Q. Do you feel that Obsidian Finance Group ethically and legally honored their contract with Summit?
A. Yes, I do.


Summit had not filed for bankruptcy when they hired OFG. Patricia was wrong in this.  They were NOT in bankruptcy as of the Date this contract was signed, Summit had not yet filed for Bankruptcy.

This contract is dated December 18,2008. Per Schedule A of this Contract, Exhibit 1, Summit hired Obsidian Finance Group to help "Restructure", not to help in Liquidating the entire business.

Patricia Whittington, Obsidian VP Said, "They were in bankruptcy and they were liquidating, not restructuring" yet the contract clearly says that Obsidian Finance was hired to  "Development of Restructuring Alternatives", "Implementing Critical Restructuring Alternatives", "Evaluating the assets and liabilities", Preparing a "Plan of Reorganization" and more.
Clearly Summit and Obsidian were in a situation to "Restructure" and NOT to flat out liquidate. Also it was to be a Debtor in a Possession, why else have a CRO, (Chief Restructuring Officer) as Terry Vance was?

Summit hired Obsidian to Restructure Debt NOT to Liquidate them.

Summit HIRED Obsidian, gave them spreadsheets, confidential information, BEFORE Summit Filed for Bankruptcy.

Kevin Padrick did not declare in his trustee statement that he had prior contracts with Summit.


Crystal Cox Notified Court of Jury Tampering

I, Crystal L. Cox allege that Kevin Padrick, Patricia Whittington, and David Brown of Obsidian Finance Group, along with David Aman and Tonkon Torp Law Firm, and with the assistance of Judge Marco Hernandez were involved in jury tampering.

I, Crystal L. Cox allege that head juror Joseph Whittington is / was related to Obsidian Finance VP Patricia Whittington and that Joseph Whittington did marketing work for the Obsidian Finance Company for their Christmas Valley solar projects.

It is clear on the court transcripts that Judge Marco Hernandez picked / appointed Joseph Whittington to be the head Jury.

I, Crystal L. Cox first notified Judge Marco Hernandez of jury tampering as soon as I discovered it, as seen with Document 119 and 120 with ALL attached Exhibits of Obsidian v. Cox, filed on 02 -13 - 2012. (These documents and Exhibits are now hereby included in this complaint as evidence in their entirety.)

Exhibit 11 is a court filed memorandum in support of this accusation.

Crystal Cox has also recently moved the court, Judge Marco Hernandez, to investigate this situation further and he has refused yet again.

I, Crystal L. Cox intend to file a separate criminal complaint as soon as I can with details of this matter to the best of my ability.


CONCLUSION

Instead of helping Summit to sell off assets, so that they could pay off creditors and get on with their lives, Kevin Padrick saw an opportunity to make 15% commission on every sale FIRST, he saw a way to get his firm Millions monthly for a 5 year period, and along with that get jobs for his colleagues Tonkon Torp Law Firm in the millions a year for years to come.

The SUMMIT bankruptcy proceedings in ALL ways that Kevin Padrick was the deciding authority, should be VOID.

The Umpqua Bank lawsuits should be investigated, the contract Kevin Padrick had with the debtor should be investigated, as it looks to me that Kevin Padrick was legally an insider and not qualified per bankruptcy law to be a TRUSTEE in this case.

Kevin Padrick did not declare in his trustee statement that he had prior contracts with Summit. Kevin Padrick was, by law, not legally allowed to be the trustee in the SUMMIT Bankruptcy and thus all related transactions should be null and void, as a matter of law and Kevin Padrick and all co-conspirators should be indicted.

I swear that all of the above is true to the best of my knowledge.

Crystal L. Cox
/s/
For more information please feel free to contact me any time at SavvyBroker@Yahoo.com or my mailing address

Crystal L. Cox
PO Box 2027
Port Townsend, WA  98368

OR to phone me at 406-624-9510

I, Crystal L. Cox allege the above to the best of my understanding of the situation and upon my knowledge and belief.

Crystal L. Cox
/s/"

You Can Download the Complaint HERE