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Hundreds of investors are trying to get their money back from Corporate Funding Financial of America, formerly of B Street downtown, now purportedly located on India Street. The company bills itself as a trust deed investment firm, promising investors 10, 12 and 14 percent a year under various plans. One purpose of the money-raising was to make loans to finance real estate development in San Diego and Las Vegas, two of the hardest-hit real estate markets. On July 30 of last year, the Department of Corporations slapped a desist and refrain order on the company for selling promissory notes that include "an untrue statement of a material fact," according to the order. There are several suits against the company in superior court. San Diego attorney Matthew Powell is rounding up burned investors to try to recover funds, and determine if some of the pending projects can be completed and proceeds distributed to investors. He is also preparing an involuntary bankruptcy proceeding against one of the entities. He says it is important that two principals, Richard Habib and Luis Madrid, be removed from office. He says "multi-millions of dollars" were lost, primarily by Hispanic investors, but the amount of losses cannot be determined yet because "records were not kept very precisely."

Comments
4

Trust Deed investements-that is an area so full of scams that I almost, not quite but almost, feel no remorse for anyone who invested.

NEVER invest in TD's.

March 11, 2008

Response to post #1: I have followed trust deed scams for years in San Diego: Boileau, Lochmiller, Gary Naiman and many, many others. The game works when real estate values are going up, but fails utterly when values crash, as they are doing now. Many San Diegans have gone to jail over this. And many victims have been wiped out. Best, Don Bauder

March 11, 2008

Another great article from the esteemed Mr. Bauder.

Don, you would not remember me, but I know that you remember Z3 & Stella Bella. Your excellent advice kept a friend of mine from making a huge mistake and I have never forgotten that.

Just an update on CFF, Matthew has been actively litigating against other CFF investors in an effort to preserve real property that can be liquidated to settle some claims by members of the firm's CFF Creditor Committee. I have opened a blog about CFF at http://cffacreditors.blogspot.com/ and posted your story along with the link and proper credit (if that's okay). I will be updating the blog on a regular basis and posting information relevant to the firm's Creditor Committee

Sincerely,

John Greenman Law Office of Matthew H. Powell, APC

Oct. 9, 2008

I was a first time investor. I bank at Union Bank of California. The loan officier at Union was helping me take out a home equity loan for a building I wanted to purchase. My original loan was for 300000 but Dora Sue from the bank insisted that i take it out for 500000. All documents where signed by my father in Nogales and never was present in the bank for the loan. Dora Sue was deperatye for me to get the loan. I thought it was her job and never thought anything of it. After I got the loan Dora told me that the bank was investing in a fund that would pay 15% and it didn't make any sense to keep it in the bank. She took me to the Corperate Funding and accompnaied me with Luis Madrid. I trusted her since the bank was doing it it was god for me. I finally fond my chance. Dora made my first deposit at the bank since she was doing this. Letter i fond out that she was in it to. I invested 200000 that was nt my money it was my fathers from the home. If you can help [email protected]

Dec. 13, 2008

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