Kevin D. Padrick of Obsidian Finance Group is one such professional. Kevin Padrick has been in a position to take advantage of a Debtor over and over, it seems to be his thing. And the Debtors, Creditors have no way to stand up to him. If they do he sues them into submission.
Blogger Crystal Cox, me, heard about Kevin D. Padrick of Obsidian Finance Group through the Summit Bankruptcy Whistle Blower Blog ( http://www.summit1031bkjustice.com/ ). I was sued by a Portland Oregon court for Exposing the actions of Kevin D. Padrick of Obsidian Finance Group in the Summit Bankruptcy, though I was telling the story as I knew it from many other sources and I brought that information to the attention of Judge Marco Hernandez for an Entire Year. And this Federal Judge did not take the information I provided and report the actions of Kevin D. Padrick of Obsidian Finance Group, as clearly there was enough evidence to warrant a Special Investigation of the Dept. Of Justice, FEB, and Attorney General. I even showed this Judge the Homestreet Case to show Pattern and History and I was ignored.
This Blog Post is about Homestreet Bank filing a Motion to Disqualify Kevin Padrick and to Object to the Millions in Fees. Also note, Kevin Padrick was somehow court appointed to advise the Debtor, then ends up owning part of the Debtors Companies.
Here is a Bit from that Court Filing
Objection of Homestreet Bank To Allowance of Professional Fee Application
"Miller Nash LLP ($768,432.50), as the Debtor's Chief Bankruptcy Counsel, and Obsidian Finance Group, LLC ($645,705), the Debtor's Court-Appointed financial advisors, have applied for allowance of a total of $1,414,137.50 in pre conversion professional fees and $52,657.38 in costs."
"Together, Miller Nash and Obsidian thus seek allowance of a total of $681,576.00 in professional fees arising directly from their efforts to produce a Chapter 11 plan for the Debtor. At the end of the day, however, these Plan-related efforts failed completely. By the time the Court granted Homestreet's Motion for Relief from a Say on August 6, 201 and refused to re-impose the automatic stay on September 22, 2012, there was no Chapter 11 Plan at all pending before the Court, much less a Plan that could possibly merit a confirmation Hearing"
"Under these circumstances, Homestreet believes that it is simply unreasonable for the Court to allow priority payments in full of these enormous Plan-related fees. Allowance of these fees, in these amounts, will likely deprive unsecured creditors in this case of a dividend (or will substantially reduce the amount of an such dividend), while at the same time rewarding Debtor's counsel and Obsidian for producing nothing of value to the estate. A debtor's professional should not be permitted to gamble freely with unsecured creditors' money. If a debtor's professionals want to roll the dice on a demonstrably "long-shot" reorganization scheme and be compensated for their efforts from the estate, they should also bear the risk of failure."
"Motion to Disqualify Obsidian. On January 28, 2010 the Court issued its Order Authorizing Employment of Obsidian Finance Group, LLC as Financial Advisor for the Debtor (Dkt #188). Under the terms of its Court-approved engagement, Obsidian agreed to reduce its hourly rates charged to the bankruptcy estate by 50%; however, if Obsidian "participated meaningfully" in the "preparation and confirmation" of a Chapter 11 Plan that contained a "meaningful distribution" to unsecured creditors, Obsidian would be entitled to obtain a "success fee" equal to three times the total amount of its 50% hourly rate reduction."
"Accordingly, in its current Application Obsidian quantifies the total un-discounted value of its services at $1,350,785 but seeks $645,705 in payment from the estate. Had Obsidian met the test of Plan preparation and dividend distribution, by contrast, Obsidian would presumably have sought payment of the $645,705, plus an additional "success fee" of $1,937,115. THe existence of a such a large success fee obviously provided a tremendous economic incentive / motive for Obsidian to produce a Chapter 11 Plan at all costs."
"As, set forth above, on May 31, 2010 the Debtor filed its proposed Disclosure Statement and Plan of Reorganization. The Letter of Intent attached to the Plan revealed that one of the "new investors" in the Plan was none other then Obsidian itself, which had committed to investing $1.1 million of the $55 million in initial Plan funding. But Obsidian's involvement in the Plan was not merely as a $1.1 million investor. Section 3 of the LOI provided that the Cascadia project would be managed by a newly created "Servicing Entity" owned 60 percent by Yarrow Bay and 40 percent by Obsidian." Moreover, under the proposed servicing agreement, the "Servicing Entity" would be paid a monthly servicing fee of $75,000 for its services and for being responsible for indirect overhead."
"Bankruptcy Code 327(a) provides that a court-appointed professional to a debtor must be "disinterested" and cannot hold an "interest adverse to the estate." Concerned that Obsidian's dual role (as professonal advisor and asset purchaser) violated the "disinterestedness" requirement of the Code, on June 15, 2010 Homestreet filed a Motion to Disqualify Obsidian (Dkt. #400). In its Motion, HomeStreet called particular attention to In re Wet Delta Il Co., Inc., 432..." "in which the Fifth Circuit disqualified professionals (attorneys) who had acted as special counsel to the debtor but who had also sought to acquire the debtor's assets from the bankruptcy estate. "
Source of Information Above and Full Document, Check it Out. Kevin Padrick does this over and over and he has so many focused on Blogger Crystal Cox when he really is creating victims and violating Bankruptcy Code. Though Judge Marco Hernandez and so many others seem to believe that I am the only one who ever claimed that Kevin Padrick violated Bankruptcy Code.
How does Kevin D. Padrick of Obsidian Finance Group get these "Court Appointed" Gigs?
How does Kevin D. Padrick of Obsidian Finance Group make so much money at a time when he claimed that Blogger Crystal Cox lost him Millions upon Millions?
How does Kevin D. Padrick of Obsidian Finance Group in his Tonkon Torp and Miller Nash Connections, and Of course his history of working with Leon Simson of Tonkon Torp and Pamala Griffith of the Department of Justice, get so much free reign and total lack of accountability and transparency.
Cascadia Project LLC, Yarrowbay. Look Deep
The same issues that the Homestreet Bank is raising regarding Kevin D. Padrick of Obsidian Finance Group, were raised in the Summit Bankruptcy. Kevin D. Padrick of Obsidian Finance Group and Tonkon Torp Law Firm were charging way too much and there was an Objection to the Fees and the Actions of Kevin D. Padrick of Obsidian Finance Group.
Also there was an issue of non-disclosure of past working relations with Steven Hedberg the Creditors Attorney who use to work under Kevin Padrick at Miller Nash. And there seemed to be non-disclosure issues over the past working relationships of Leon Simson of Tonkon Torp and the Department of Justice Trustee Pamela Griffith, they used to work together at Ransom, Blackman, and Simson.
Leon Simson of Tonkon Torp and the Department of Justice Trustee Pamela Griffith also worked with Kevin Padrick on this Bankruptcy Case. She was not a DOJ Trustee then, I Believe.
Note that in the Obsidian V. Cox Trial, Pro Se Defendant, Blogger Crystal Cox asked Kevin D. Padrick of Obsidian Finance Group about the Homestreet complaint and he said it was different and a technical issue. Thing is another Company, Homestreet Bank complained just as Mark Knowles, Stephanie DeYoung, and Jim Hull did in the Summit Bankruptcy. Yet the New York Times David Carr, Jeff Manning of the Oregonian, Kashmir Hill of Forbes and many others claim that Kevin Padrick has no other complaints and no one has an "Issue" with Kevin D. Padrick of Obsidian Finance Group except for one Blogger, they claim, Crystal Cox. This simply is not based in fact or documented TRUTH.
Bankruptcy Code Violations, Conflicts of Interest, Non-Disclosure, Objection to Fees and More that were the same in the Summit Bankruptcy and Judge Marco Hernandez failed to report this situation to the proper authorities and Kevin Padrick and Obsidian Finance Group are out there creating more victims with the same Pattern and History. Where is the FBI, where is the DOJ, where is the IRS, and the Attorney General? NO one is watching the U.S. Bankruptcy Courts. There is no protection for Creditors or Debtors.
Kevin Padrick was not really a disinterested party in the Summit Bankruptcy either, as he was hired by the Debtor to for a Plan of Reorganization and instead he used their privileged information and got a job as the Trustee against his own clients, while under contract with them, Summit, the Debtor. And Judge Randall Dunn and US Trustee Pamela Griffith, as well as Perkins Coie Law Firm helped him to do this, knowing full well that it would hurt the Creditors and Investors.
Debtors file for Bankruptcy to get help and what they get is screwed over by the Bankruptcy Court System, which is certainly of Public Interest.
For more on what Investigative Blogger Has to Say about Kevin D. Padrick of Obsidian Finance Group and the Homestreet Case Click Below
For the Summit 1031 Bankruptcy Whistle Blower Blog by Stephanie Studebaker DeYoung Click Below
Here is the Summit 1031 Bankruptcy Objection to the Fees of Kevin Padrick, Obsidian Finance Group, and Tonkon Torp Attorneys, this was filed by Creditors and Investors within the Summit Bankruptcy
Here as videos o Kevin D. Padrick of Obsidian Finance Group at a meeting with his clients, the Debtor Summit 1031, he was at this time advising the debtor as their financial council. This was before Kevin D. Padrick of Obsidian Finance Group was appointed as Trustee, essentially on the opposite side of the best interest of his client and while under contract with his clients, Summit, the Debtor.
For More on the Obsidian V. Cox Transcripts where I ask about these issues, Click Below
Investigative Blogger Crystal Cox,
Online Bankruptcy Investigations
Researcher, Reporter,Industry Whistle Blower.
Cascadia Project LLC, Obsidian Finance Group, Miller Nash Law Firm, Kevin D. Padrick, Homestreet Bank, Pattern and History, Geoffrey Groshon, Washington Bankruptcy Courts, Graham and Dunn, Paul Battaglia, Judge Karen Overstreet,Bankruptcy Code 327