Did Kevin Padrick REALLY reveal confidential information to the other side

By Crystal L. Cox

July 20, 2009

Kevin Padrick ("Padrick") is an active attorney and the Senior Principal of a company called Obsidian Finance Group, LLC ('Obsidian"). Padrick took advantage of a liquidity problem at a 1031 exchange company called Summit Accommodators Inc ("Summit").

Originally, Padrick told the principals "back in December, there were several things Obsidian put forth they could do for the shareholders…move quickly, engage the insurance companies almost immediately, and work fast enough perhaps so they could preserve some exchanges. At that time, the 45-day date (exchanger deadline on identification of replacement properties) had not passed. The shareholders spent a week or so putting together all of the information they could with hopes this thing would move forward quickly.

Larkin said, “We’re seeing absolutely no results that you put forth you were going to bring to the table… We have put out $100,000 (Obsidian’s retainer) of exchanger money, essentially, and we’re seeing nothing from it…”

Summit was filing chapter 11 bankruptcy as debtor in possession with a Chief Restructuring Officer in charge. Obsidian was supposed to be reporting to and acting at the instruction of the CRO, (Terry Vance) per the contracts signed. The principals worked hard to compile all of the information for Obsidian on the properties (they owned personally) they were willing to give to the bankruptcy estate.

Obsidian left and did not come back. Instead, Padrick took this priviledged information to the other side (creditors' committe), presented it as his own, and sold himself to the other side.

His company, Obsidian, is charging the estate $184K to bamboozle the principals and land their Senior principal a bigger and more profitable job as bankruptcy trustee. Other things I have caught Padrick and his legal counsel, Tonkon Torp, doing are as follows...

1. Charging fees that are not allowed pursuant to code section 330.

I wrote an indepth objection to the fees if you would like more information on this. (duplication of services, charging much more than a comparable property, charging for time to violate provisions in the operating agreement and bully people around).

2. Betrayed my dad and his partners (they are willing to sign a complaint) by revealing confidential information to the other side.

3. Tonkon Torp attorney, David Aman, said Padrick was going after governance rights of Oregon Limited Liability companys outside the courtroom. When asked by Judge Dunn in the courtroom, Aman said that he was only going after the rights of the shareholders.

4. The debtor in possession bankruptcy was supposed to cost appox 435K. Now we are into this for only 5 months and have attorney and professional fees are at 2 Million.

5. Padrick filed a document with the Oregon State Corporation Division under false authority which I am told is a civil misdemeanor.

6 Padrick seized bank accounts without proper authority.

7. Padrick & Tonkon Torp have made everyone scared of them because of their bullying antics.

8. They were supposed to help with finalizing the 1031 exchanges that were in place at the time Summit declared bankruptcy. His company did nothing which resulted in escalated damages due to failed exchanges, and their tax consequences.

9. Padrick knowingly tells half truths to the public to help support his claim that this was a Ponzi scheme and/or embezzlement. He knows there was no Ponzi scheme and/or embezzlement, but he has too much riding on this allegation to do anything other than lie about it.

10. Instead of working with me, he is harassing me and I don't have enough money to defend myself, my company, my investments, and my children's college savings. Padrick has 6 Million of Summit's money and is using that to harass about 106 innocent parties in an attempt to take their investments away to make more money.

There is a website I have that will have more information on this case. www.Summit1031BKjustice.com.

Thanks for your time,
Stephanie Studebaker-DeYoung

Source of the Above Article

http://www.oregonshyster.com/shyster/padrick.htm