The Cathies have gone deeply in the hole by plunking $165,000 into undeveloped Nevada land owned by members of the WFP entities, particularly Louis Schooler, according to the complaint. They were peddled by Western Financial Planning. According to the arrangement, the Cathies signed blank promissory notes that the WFP group could fill in, permitting the withdrawal of money from the Cathie bank account. Marron’s filing calls the land investments “highly conflicted self-dealing transactions.” Customers were told they would be general partners in land ownership, but in fact they had put money in unregistered investment contracts, according to the complaint. A person close to Western Financial Planning denies the charges. “The Cathies have neither earned nor recovered any money whatsoever from these transactions” and still have $80,000 in debt commitments.
There were many other losing deals, according to the claim. Coe is asking for money damages of no less than $200,000, while the Cathies want $600,000.
Brandon Reif, attorney for WFP, says, “There are a number of irresponsible claims” in the Coe/Cathie arbitration filing.
That’s all he will say. In the 16 arbitrations, he will have much more explaining to do.