The Estate Sale Wins Arbitration!

Arbitrator Michael Briggs of San Diego Neutrals awarded Micheal Pietrczak and Laura Lynn of The Estate Sale $171,000 for a breach of contract by their original landlord James Jordan of Certified Car Care in San Diego.

The decision stated that Mr. Jordan’s claim of just forgetting to give a contractual first right of refusal to purchase the property did not relieve Mr. Jordan of liability for actual damages.

Mr. Jordan was represented by attorney Daryl Idler. Though the attorneys representing the defendants who were not part of the arbitration, but are included in the lawsuit, might say Mr. Idler couldn’t argue his way out of a bag, it is clear that they will also lose in the litigation. Mike and Laura are also asking for punitive damages and compensation for intentionally inflicted emotional distress against defendants Vicki Kahia, owner of Candy Depot in Hillcrest, and real estate brokers CREV, Randy Rivera, Justin Earley, Rock Solid Real Estate, Peter Michael Rocca (who recently filed for bankruptcy), and agent Anthony Carnevale. Justin Cannatella, owner of P.B. Sports, Tony Bral, a Los Angeles based investor from the wealthy Persian/American Bral family, and The City of San Diego may also be named when the suit is amended to include information found during arbitration.

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Insider Trading In San Diego: Charges Filed Three Years Later

Former Qualcomm Directors Indicted for Insider Trading
Derek Cohen and Robert Herman Bought More Than $500,000 in Securities of Atheros Communications Inc. Just One Day Before Qualcomm Officially Announced its Acquisition of That Company
U.S. Attorney’s Office
May 12, 2014

Southern District of California
(619) 557-5610
SAN DIEGO, CA—Two former Qualcomm sales directors have been charged with four counts of insider trading in an indictment unsealed today.

According to the indictment, Derek Montague Cohen and Robert William Herman were both directors of Qualcomm’s North America Sales Department. In addition to their day jobs, they were also part of an informal stock trading group, sharing tips and opinions about the stock market. According to the indictment, while still employed by Qualcomm, Cohen and Herman learned that Qualcomm (QCOM) was about to acquire Atheros Communications Inc. (ATHR), then a publicly traded technology company headquartered in California. Based on this inside information—and just one day before Qualcomm officially announced the acquisition—Cohen and Herman placed more than $500,000 in trades on various Atheros securities, including stocks purchases and option contracts. At the same time, Cohen allegedly covered a short position that he maintained, in violation of company policy, on Qualcomm stock.

Shortly after Cohen and Herman placed their trades, the New York Times’ DealBook blog leaked news of the impending acquisition, causing shares of Atheros to dramatically increase in value. Cohen and Herman then sold their securities, realizing a total profit of nearly $230,000. The indictment alleges that Cohen and Herman later falsely claimed to in-house Qualcomm lawyers and staff that they had only traded after reading a leaked news item—even though trading records, combined with records of the New York Times Company, show that this was impossible.

United States Attorney Laura E. Duffy said, “Insider trading is a threat to public companies and investors alike. This indictment should send a message throughout Southern California and beyond: the Department of Justice will not tolerate the manipulation of the securities markets for cynical and selfish personal gain.”

In a parallel action, the Securities and Exchange Commission today announced civil insider trading charges against Cohen and Herman.

Michele Wein Layne, director of SEC’s Los Angeles Regional Office, said, “As alleged in our complaint, Qualcomm placed trust in these sales managers who proceeded to exploit the confidential information shared with them and conduct insider trading for their personal gain.”

Cohen was arrested Saturday at Los Angeles International Airport at the request of the Federal Bureau of Investigation after he returned from an overseas visit to the Philippines. Herman remains at large.

Cohen was arraigned on the indictment in federal court in Los Angeles this afternoon; he entered a not-guilty plea and was to be released on a $100,000 bond. He is scheduled to appear before U.S. Magistrate Judge Ruben B. Brooks in San Diego on May 14, 2014, at 10:30 a.m. for a status hearing.

Indictments are not evidence that the defendants committed the crimes charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.

Defendants in Case Number: 14CR1202-JLS:

Derek Montague Cohen
Age: 52
San Diego, California
Robert William Herman
Age 52
San Diego, California

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Henei ma tov umanaim Shevet achim gam yachad

Behold, how good and how pleasant it is for brethren to dwell together in unity! This is the words of the Lord, found in Psalm 133, turned into lyrics of a popular Hebrew song.

How sad that siblings turn on one another, often after the passing of one or both parents, and fight over money.

Unfortunately, Justin Earley of Capital Real Estate Ventures Inc capitalized on the frailty of human nature.

After participating in the interference with Mike and Laura’s right to first refusal to buy the property The Estate Sale is on, he wrote an email, proudly sharing his depravity with his co-conspirators. He said he would hunt down Laura’s mother and sister and “mess up Laura’s little world”.

Instead of beseeching him not to do such an evil thing, James Jordan of Certified Car Care and Anthony Carnevale of Rock Solid Real Estate tried to help Earley find the family members.

Earley did find one of Laura’s sisters, Mary Sherman. Mary and Laura never got along well, and Mary loves money, so it appears that Mary joined forces with Earley, Kahia and the gang to try to ruin Laura financially.

Next time Mary is “masquerading as a Jew” as Laura’s dad, Dr. Norman H. Kramer used to describe people who celebrated in Jewish traditions, without actually having faith, I hope she lets God’s words touch her soul. Henei ma tov umanaim Shevet achim gam yachad.

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Add Insider Trading to the List of Vicki Kahia’s Alleged Crimes

Laura Lynn, who had a right of first refusal to buy the property The Estate Sale is on is a “trust fund baby”. She invested thousands of dollars per month into growing Micheal Pietrczak’s business. In return, Mike took care of Laura’s immediate needs for food and shelter and she knew that when his business was a huge success, he would pay her back tenfold. Mike and Laura considered themselves married in the eyes of God and worked together until they were on the brink of their financial success.

Then Vicki Kahia stepped in and stole Mike and Laura’s opportunity to buy the property.

Immediately, Kahia filed an unlawful detainer action to evict Mike and Laura.

By a miracle of God, Mike and Laura staved off the eviction, and stipulated to filing a civil suit against Kahia and her co-conspirators. They also agreed to pay $4,000 per month to Kahia, who was supposed to allow them continued use of the property until the civil suit was decided. The two cases were to be consolidated.

Kahia did not allow for quiet enjoyment of the property. But Mike and Laura continued to make the outrageous payments to the conniving naturalized Iraqi woman.

The litigation dragged on for over a year. Proceedings in the suit filed by Mike and Laura were stayed pending arbitration with James Jordan, the original landlord and San Diego car care enthusiast.

In arbitration, James Jordan’s only defense was that Mike and Laura knew the property was for sale, and they did not buy it. Baloney!

Mike and Laura knew the property was for sale, but thought the asking price was 1.2 million. Then in October 2012, two months before Kahia put in her $890,000 offer, the trust of which Laura is a beneficiary put in a full list price offer, cash, 30 day closing. At the time, the list price was $825,000. The trust broker never heard back from Jordan’s broker with any kind of counter offer.

It seems to Laura that Vicki was privy to the trust offer and coached by Jordan’s brokers to put in the higher offer. Her own broker had an accepted offer in escrow on the property from a third party, Tony Bral, for $1.2 million. Vicki, as we alleged in the past, stood to flip the property to Bral, grossing a $130,000 profit for the use of her cash. (She probably had to line a few other pockets, including Jordan’s to be the lucky winner of the property bid.)

Since Kahia’s purchase was part of a short sale of a FDIC insured bank loan, and Jordan was not forthcoming with his financial position or alleged secret profits, the conspirators were allegedly involved in a violation of 18 USC 1014, a fraudulent short sale. Since Laura’s family trust had a full list price offer in on the property and was not given the opportunity to bid against Kahia, it appears Kahia also had insider information and was part of a conspiracy for bid rigging.

We hope the FBI is watching and taking notes. They probably are.

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Allison-McCloskey Escrow : Like the three monkeys

See no evil, hear no evil, speak no evil. That seems to be the company policy at Allison-McCloskey Escrow Company with two locations in San Diego, Pacific Beach and El Cajon.

Bill McCloskey of Allison-McCloskey Escrow has a son Brian. Brian works for California Title. California Title had the title order and escrow for the sale of a prime commercial property on Garnet between seller James Jordan and buyer Tony Bral. The escrow stalled. Bral was supposed to pay 1.2 million dollars for the property.

Next thing you know, a naturalized Iraqi woman named Vicki Kahia is in escrow to buy the property for $890,000. Within weeks she closed escrow for $860,000. The escrow company was Allison-McCloskey, though the title company and all the brokers involved remained the same as in the open Bral transaction.

There were leases that would customarily be entered into escrow. The leases were entered into escrow, but Allison-McCloskey tried their darndest to make it look like they never saw the leases. Why?

The lease for the owner of The Estate Sale on the property included a “first right of refusal clause”. This made the owner and the other lessee equitable assignees of any accepted purchase agreement.

Kahia didn’t want the rightful buyers of the property to find out about the transaction. They could have bought the property at the super low price of $860,000. They had private financing available at the time.

For some reason, Allison McCloskey didn’t inform the equitable assignees of the escrow. When asked why not, Bill McCloskey said it wasn’t his job.

There is a lawsuit filed to settle the matter. Allison-McCloskey, Bill McCloskey and escrow officer Alicia Ramirez were relieved by the court from a cause of action of intentional infliction of emotional distress. Judge Richard Strauss said the plaintiffs may have a contractual cause of action against the escrow defendants. In other words, it is arguable whether the escrow company had a legal responsibility to the rightful buyers.

Allison-McCloskey Escrow Company is definitely not the kind of company we would ever do business with on purpose. Especially if the goal was to have a litigation free commercial transaction.

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Realtor Anthony Carnevale Admits to Ignoring Contract to Collect Commission

In an arbitration in the matter of Lynn v Kahia et al, Realtor Anthony Carnevale of Rock Solid Real Estate in San Diego County said he knew that if the property sold to the owner of The Estate Sale, his company and the buyer’s broker, Capital Real Estate Ventures Inc would not receive their commissions of about $25,000 each.

Realtor Carnevale, Rock Solid Real Estate, and Capital Real Estate were apparently willing to interfere with the lease agreement between James Jordan and The Estate Sale that called for a first right of refusal to buy the property, in order to line their own pockets.

Justin Earley later expressed disbelief to Anthony Carnevale by email that Laura Lynn would spend “what little money she had” to protect her rights in a lawsuit.

Believe it.

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Rock Solid Real Estate Corp Broker in El Cajon Has Debts Discharged In Bankruptcy

The Broker of Rock Solid Real Estate in El Cajon, Peter Rocca, filed for bankruptcy and had his debts discharged last month.

It appears that Peter Rocca had his debt to us discharged, even before a verdict in the case, Lynn v. Kahia et al, in which Rocca and Rock Solid are both defendants. Appearances may be deceiving, as Rocca intentionally served notice of his filing to the wrong address for both plaintiffs.

Rock Solid Real Estate’s website does not mention Mr. Rocca’s negative financial profile.

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