Cedar Funding sued to block sale

The devastation this company and it's business practices has been horrendous thru the years. David Nilson, and his sons have hurt people and laughed about it. It is about time that everything is coming out. The victims of this horrible family can never be made whole, but at least Nilson and company will not be able to inflict more harm.

I don't invest my money locally. Too many Zubicks and Nilsens out there, living the good life on other people's money.

Tom O'Meara with Cypress Investments in Carmel screwed local investors out of about $15 Million and got away with it free and clear. If I were a crook, I'd like him as a mentor

Dave Nilsen and his son looks down at you when you meet them. I hope that justice is served and they end up in PRISON with big Jamal and Ray Ray.

I did a little research and found That David Nilsen and his wife own several properties in the monterey county 12 total including the Regency Theater. 1 property was even sold to them by Cedar Funding Inc. Something really shady is going on here.

This Nilsen is a real swine what he needs to do is sell all of his real estate and other assets asap and pay off all of the investors who belived in him.

Do your homework sheeple.

Past performance is no guarantee of future returns.

I looked into Cedar funding, they were very honest with me, and I realized it was a risky investment. A lot of greedy people got burned by the down-turn in the real estate market and are now looking for a scapegoat.

Taking more money from investors against a property that did not have enough equity to justify that, or not letting current or future investors know that a property had already been forclosed on, or loaning money to yourself is not something that an HONEST company does and it is not because of the down turn in real estate, it is misleading the investors and criminal.

Our firm, Second Angel Bancorp, has a White Paper entitled "Turnaround Lending: Lender and Investor Options and Approaches in Work-Out Situations-- Trust Deed and Mortgage Fund Investments." The Paper provides an overview of Private Money investment, how things go wrong, and what lenders and investors can do to remedy the situation. We'd be happy to forward a copy.
Email us at info@SecondAngel.net

JVS wrote:

DAVID NILSEN ET. EL CERTAINLY MUST HAVE BEEN MENTORED FROM THOMAS JOSEPH O'MEARA, SCOTT WEBB AND MARK EDWARD LAUREN. CYPRESS INVESTMENT HERE IN BEAUTIFUL CARMEL ALSO DEFRAUDED MANY LOCALS AND OUT OF TOWNERS. MANY PROFESSIONALS, DOCTORS, ELDERS, AND FRIENDS. THE SCENARIO IS EXACTLY THE SAME.....WHITE COLLER CRIME. THIS IS AN OUTRANGE AND MUST DELT WITH THE SAME JUSTICE AS ANY MURDERER, THIEF OR RAPIST. THESE PEOPLE MUST BE HELD ACCOUNTABLE FOR RUINING OTHER'S LIVES!!!

Let's call them what they truly are..economic terrorists.

We have been invested in Cedar Funding for over 5 years and had the pleasure of earning a 10% return. At NO time were we under the delusion that this money was FDIC insured or exempt from ALL risk. We signed a statement declaring that our total investment did NOT exceed 10% of our total NET WORTH. We believe that some investors including Catherine Lau were extremely imprudent to invest more than they were willing to lose. As for the integrity of David Nilsen and his team, we believe that although it is in question, it has yet to be decided. We hope the best for all those involved but in acknowledgement of the cost inherent to fighting legal battles, it will ultimately be the lawyers who will profit.

I think that people are missing the point as to the real heart of the subject. Clients are not suing cedar funding because of the lack of dividends paid, they are suing becuase they were told that they held deeds of trust in properties that did not exist. Furthermore, the current down turn in the economy should not affect past investments that were made. Those properties should be servicing themselves as they have allegedly been for years. Excessive loan to value ratios and unrecorded deeds of trust are illegal and unethical. Cedar funding and its subsiquent LLC's have obtained title to so many properties because they were taken back/forclosed on. The deeds to those porperties should be in the investors names not Cedar Fundings and certainly not Nilsens. The ripple effect that is going to travel through this community in the next few months is going to be davastating. Churches, elderly, employee retirement plans. Time will tell.

Want a solution?
If we keep suing we will get less than 30 cents on the dollar!
I want to help Cedar Funding Investors buying the investments at more than the lawyers will leave us with.
There are two "classes" of investors:
1)Fractional Trust Deeds and
2)Mortgage Fund
Those in the fractional trust deeds will have an "easier" time getting their money and will not be able to file a class action lawsuit. All you all have to do is GET TOGETHER and exercise your rights as lenders. You can FORECLOSE.
Those in the Mortgage Fund signed the offering circular stating you will not use the courts to settle differences. Even though there are class action suits being eagerly prepared by lawyers..
Here is a link to one Class Action Lawsuit Engagement letter. READ IT...
http://www.micromeasurementsinc.com/images/Ce...
Thanks,
Dave Korpi
dave.korpi@gmail.com

Dave Korpi wrote:

Want a solution?
If we keep suing we will get less than 30 cents on the dollar!
I want to help Cedar Funding Investors buying the investments at more than the lawyers will leave us with.
There are two "classes" of investors:
1)Fractional Trust Deeds and
2)Mortgage Fund
Those in the fractional trust deeds will have an "easier" time getting their money and will not be able to file a class action lawsuit. All you all have to do is GET TOGETHER and exercise your rights as lenders. You can FORECLOSE.
Those in the Mortgage Fund signed the offering circular stating you will not use the courts to settle differences. Even though there are class action suits being eagerly prepared by lawyers..
Here is a link to one Class Action Lawsuit Engagement letter. READ IT...
http://www.micromeasurementsinc.com/images/Ce...
Thanks,
Dave Korpi
dave.korpi@gmail.com

I agree, but what about the honest borrower who did not get all the money promised by Cedar? Now the project is in jeopardy.

I agree with what Dave Korpi wrote. But what about the honest borrower who did not receive all the money for development that was promised by Cedar Funding, Inc.? He can not complete the project without finding new money.

We got into Cedar Funding a few months ago. I had a long talk with Ken Malone, their agent, asking about security on loans and what assurances he could give us that this wasn't a ponzi scheme. He said there's alway risk in second mortgages and that the markets were bad but Cedar was very careful about who it loaned money to and all loans were backed by second mortgages and that would mean it wasn't a ponzi scheme. He didn't tell us that investors were filing law suits and the State was investigating them. I was robbed. No doubt about it. Lied to and fleeced. I won't rest until I get my pound of flesh I tell you that. It's more than just the money. I have to listen to my wife telling me how she didn't think we should put money into Cedar Funding.

We are more interested in getting the situation accurately assessed and getting the best resolution. Every investor agreed to some risk-however, we all expect our Cedar Funding folks to be investing in sound properties and recording deeds as agreed to at the time of each investment.
I do not believe that a class action law suit is in our best interest. It will be a huge pay out for what will really be relatively little effort.
I urge calm heads. Focus on your bottom line. No revenge is good revenge is you lose your investment.

What is going on now and the things that Nilsen did to save properties is savy investing. (The jury is still out on wrong doing so let's leave that for a different discussion). A lot of people will not understand that. The lenders have to realize that now instead of just being a lender they are part owner in the property. This is when you sit and let the market come back before you do anything. Just make sure the paperwork is in order to prove your interest. Believe me all the attorneys care about is the money. Not what is best for the investors. And anyone who was living soley on the intrest from their investments from Cedar are ignorant. The first lesson in investing is diversify, not go crying when you have put too many eggs in one basket and the basket spills. But where else are you going to get that kind of return,and with Nilsen's track record nobody cared or thought. Also if payments were still coming in like before nooone would care if he was doing shady things if that is what it was taking to get keep the money flowing.

where can you get that return? how about buying a mortgage reit stock (nrf or jrt come to mind). I'd rather take my chances collecting a 15% divvy from subordinate CMBS, than giving it to the local flim flam man.