Business

Wednesday, Jul. 01, 2009

Biz Buzz: Suit seeks to force bankruptcy of Hurst Financial's Jay Miller

Lawyer wants court to stop other lawsuits ‘before his assets disappear’

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Three Hurst Financial creditors have filed a petition with the U.S. Bankruptcy Court to force company president Jay Hurst Miller into an involuntary Chapter 7 bankruptcy.

Miller, who ran the $100 million lending company in Atascadero until he surrendered his license under allegations of fraud last year, is facing at least 10 lawsuits and a criminal investigation into his business dealings.

The FBI most recently seized hundreds of thousands of dollars from the sale of Miller’s personal residence, alleging that he engaged in racketeering and money laundering.

As to the bankruptcy petition, “our goal is to stop all the suits in court so that we can sort all this out before his assets disappear,” said Peter Josserand XIII, the attorney representing the bankruptcy petitioners, Pete Evans, Kelly Christensen and Gary Luttrell. The three invested in a Paso Robles commercial development called Beacon Road. Hurst Financial collected about $8 million for that development, but the 8.2-acre parcel remains vacant and is currently valued at less than $100,000 an acre, Josserand said.

The property is owned by Miller and his partner, developer Kelly Gearhart, Josserand said. Gearhart, who filed for bankruptcy after moving to Ohio, is also under investigation for fraud, according to San Luis Obispo County Deputy District Attorney Steve von Dohlen.

Josserand said the bankruptcy filing forces Miller to do one of three actions: show there is a bona fide dispute; prove that he has the ability to pay his debts; or submit to the bankruptcy proceedings.

Miller must also open his books to reveal his assets and liabilities, Josserand said.

“Right now, different people are freezing assets against Jay, he’s been getting hit with sanctions because he’s not cooperating with discovery, and the FBI is seizing his assets,” Josserand added. “It’s also possible that Jay ends up in jail and he won’t have the ability to pay (restitution to investors). I don’t want any more assets to be spent without being spent equally.”

A bankruptcy trustee would also be in a position to see if money has been moved and can make recommendations to the state Attorney General’s Office, which can then work with the Department of Justice, Josserand said.

— Melanie Cleveland

Jewish center chooses Bandari

Lauren M. Bandari was recently named director of The Jewish Community Center of San Luis Obispo. Among her responsibilities is reaching out to the county and coordinating programming, such as educational events, cooking and dance lessons and a cultural club.

Bandari recently worked as an analyst for Harley-Davidson Motor Co. and previously as the fine arts administrator for Sotheby’s in Chicago.

Bandari holds a master’s degree in public administration from the University of Illinois-Chicago, and a bachelor’s degree in history at the University of Wisconsin-Madison.

The newly formed Jewish Community Center board of directors includes president Jody Belsher, vice president Jan Durocher, treasurer Jayne Cohen, secretary John Belsher, interfaith liaison Janice Mehring, and members-at-large Jon-Erik Storm, Susan Shalit, Boris Pilch and Leah Moore. For more information, the JCCSLO, which is open to the community, can be reached online at www.jccslo.com and on its Facebook page.

— Julia Hickey