The Banker
1.
Royal Oaks Bank – D. McGuire, Crown Financial – D. Tribe
April 2005
David McGuire and his secretary Martha Mazzola mysteriously are not handling my accounts -- they turn me over to Angela McClelland, a temp employee, and Tip Spata, a new young assistant. At the time, it struck me funny because I was a long time customer and a fairly large account for the bank and could not understand why they were doing this. I had no relationship with these people, and David had handled my
accounts personally for over 9 years. Quickly it became uncomfortable when Angela McClelland started asking me
for earpieces for her phone, tickets to Vegas, Nascar events, and miscellaneous things. And Tip started asking me to “change columns”in my spreadsheet because he did not like the positions they were in. These were spreadsheets that had remained unchanged for years, and now an inexperienced bank worker wants to re-do them constantly? I went to David and asked him to let my partner Joe Collet handle this
with them because it was incessant. When Angela found out that she was no longer dealing with me, it started
more trouble. Angela accusedme of not paying state comptroller taxes -- I brought them to David and proved her wrong. Then I
was accused of using their Fed Ex account, and that, too, turned out not to be true. It just looked like they were purposely trying to create trouble. I told David I couldn’t deal with these two, and he stated for me to deal with them or move on. I was shocked.
June 2005
I had done business with Mr. McGuire for years, and he had handled numerous business transactions without a problem until 2005. (He had approached me after his dismissal from Sterling Bank and stated he was opening a new bank and wanted me to come with him. Around 2004, I did so). He approached me about assisting me in a $350,000 warehouse line of credit for my car business. The initial conversation for this loan and all the restructure was to pull my children and wife’s money out of the business. They were well established, and I wanted to get my personal finances back in order. In June 2005, he told me he was going to provide me with this warehouse line of
credit, but when I went to his office to sign the docs, he said he did not have it done yet but convinced me to accept a loan for the accounts receivables (car loans) part of my business. I was very reluctant and told him so because I was taking on a new loan without any
capital to expand. McGuire promised me the $350, 000 line of credit would be done the next meeting. My businesses were thriving and
growing. Creating a huge monthly loan payment instead of the line of credit I was promised over-extended me and McGuire knew it. By holding off on the $350k, he was destroying my car business. So I contacted my mother-in-law Kristine, who immediately agreed to back me with more collateral so the bank could free up my lines of credit. At the time McGuire was just acting funny, and I wanted to make him comfortable. I still to this day do not know what he was thinking. He promised he’d get it straightened out.
Sept 2005
McGuire still had not given me the $350,000 warehouse loan and had my other credit lines locked up. All the while my mother in law Kristine
Garbo was waiting to assist me because I had explained to her my banker had me in a stall. McGuire knew there was
available collateral if he was not comfortable but stated it was okay, that I had plenty of equity, and he would get my loan done. I explained to him this was not right and he was locking up all my business, and McGuire told me to hold
off paying any loan payments until he got this straightened out.
My partners from F&S Ventures, John Spence and Chris Parker also contacted David McGuire to see if
there is anything they could do, and David told them he would take care of me.
Oct 2005
McGuire one more time tells me to pay current these loans, ( email ) and he will get the $350,000 warehouse
line of credit done. I pay, but he does not do it. He is telling me to sell cars to keep current and that he will get the job done.
This is now costing me more money by losing notes and hurting my business. ( provide emails where david tells me if i cannot get along with his new people then it will not get done, because he has moved in another direction in the bank) This is not what our discussion was when he promised this and talked me into signing a new loan taking on $10k in more debt monthly.
Susan’s Aunt Edit comes over and tells me about a man that owed her money named Greg Zak, a car dealer backed
by McGuire. She also told me Zak had filed for bankruptcy, and she was having a hard time getting her money from
him. I knew who Zak was because McGuire had introduced us at the bank. McGuire had also backed John Newman who
had bought my previous car business back in 1999. I had not seen Newman in years, and did not even know McGuire and he were
doing currently doing business until Edit told me her story. Since things with David were becoming so difficult, I went in and asked
him about why he was dragging his feet on my loan and why he was backing Zak and why Zak was not paying his debts.
I also asked if he was deliberately dragging his feet so that he could give Zak my accounts receivable business (part of DMG). I
also asked if he knew that the money Zak was using came from his father-in-law John Matthews (former talk show host in Houston) and that Matthews’ radio show was pitching offers for investments returning high interest rates. This was how Aunt Edit got swindled.
I also let him know that John Newman, who I sold my company to, was also being investigated for child
molestation, and that I was very concerned that Newman and Zak spent a lot of time together, and asked if he knew all these things.
He said nothing but was obviously aggravated. It turns out that I was right to be suspicious because McGuire made sure
Zak ended up with my notes . I was asked to give them to Zak, which I did right about the time I filed bankruptcy. I don’t understand why
these assets were not seized by the court, and the Trustee refused to explain this to me. His own assistants told me they knew nothing about this transfer to Zak, even though I presented the paperwork to the Trustee as instructed by my lawyer.
Nov 2005
McGuire called the house around late November approximately 6:00 pm and spoke with Susan Sissom , he said
to have Jimmy call him because he would have my loan ready in the morning and wanted to get it done before he left town on vacation. But when I called him back that night when I returned home from a car auction, he told me he had changed his mind, that it was too late and we would have to do it when he got back. I told him you just called a few hours ago, let me know what time and I will be there.
He said no, just wait till I get back.
January 2006
McGuire calls me and has a solution to get me capital until he can restructure my loans. He states it will make it easier for me and quicker because his bank is now going through some changes, and he needs more time. He said he had already spoken to Dick Tribe at Crown Financial who does bridge loans and called to set an appointment for me.
February 13, 2006 – CROWN
FINANCIAL, Dick Tribe
I didn’t know Tribe before this transaction. McGuire set up this loan up. I contacted McGuire about the interest rate and payment because it was high, but he stated that he would waive interest payments until he got all of my loans restructured, and that I should not have to make more than 2 payments to Crown Financial. Royal Oaks was paid $14,600 directly from the bridge loan to bring them current per McGuire’s instructions, and Tribe was paid a $10,000 payment for F & S Ventures and $750 payment for DMG. The total
proceeds to me were $189,000 and $35,360. I immediately returned $34k to DMG and $26000 to me for a home equity loan we took out for a loan to DMG (documented). There were several cars that had to be paid off, and the rest went to wife, as was our usual practice, to be used as needed for business – all documented.
NOTE – I discovered
May 2012 that Tribe had put an encumbrance on F&S prior to the loan being signed which I was never notified of or agreed to.
He represented this encumbrance fee as a title search fee to me.
Wouldn’t David McGuire be
putting his bank’s interest in F&S at jeopardy when he allowed me to “sell” the property for less than 1/5 of what was owed his own bank? Shouldn’t there be a non-assumable clause in R.O. Bank’s loan contract for F&S? Wouldn’t Crown
Financial have to assume the R.O. Bank note along with the
“purchase”?
February 18, 2006
McGuire started foreclosure proceedings on DMG within 2 weeks of taking payment for loans and and, since my loans were cross-collateralized, he was really foreclosing on everything. I did not know this until March 2006, so in the mean time it was business as usual and I had already used the money from the bridge loan to start financing operations for DMG.
Financial position on this date:
11.323 acre storage facility (35,389 sq ft of storage - climate/non-climate + 2 concrete pads ready for more units) 50% shareholder, $1,000,000 my net w/ over $141,000 total annual income – total worth $3 - 3.5 million (preconstruction appraisal $2.2mil-- unimproved, uncleared, no utilities, no structures)
$45, 000 CD in Royal Oaks Bank
$500,000 accounts receivable –DMG (depleted from at least $1,020,000 in Sept. 2005 because McGuire broke his oral contract
with me)
Inventory DMG - $100,000
Life Insurance - $250,000-
secured at Royal Oaks Bank
Life Insurance - Farmers -
$250,000
Inheritance money invested
in businesses from Susan - over
$150,000
Other personal loans to
businesses - over $300,000
House - $253k
Wholesale car buying had been cut off since around Oct 05 because McGuire locked my credit lines up,
costing me another $10,000 monthly – hurting his own bank in the process. Plus, he kept telling me to pay
interest only and kept putting off my attempts to pay him more collateral.
Royal Oaks Bank – D. McGuire, Crown Financial – D. Tribe
April 2005
David McGuire and his secretary Martha Mazzola mysteriously are not handling my accounts -- they turn me over to Angela McClelland, a temp employee, and Tip Spata, a new young assistant. At the time, it struck me funny because I was a long time customer and a fairly large account for the bank and could not understand why they were doing this. I had no relationship with these people, and David had handled my
accounts personally for over 9 years. Quickly it became uncomfortable when Angela McClelland started asking me
for earpieces for her phone, tickets to Vegas, Nascar events, and miscellaneous things. And Tip started asking me to “change columns”in my spreadsheet because he did not like the positions they were in. These were spreadsheets that had remained unchanged for years, and now an inexperienced bank worker wants to re-do them constantly? I went to David and asked him to let my partner Joe Collet handle this
with them because it was incessant. When Angela found out that she was no longer dealing with me, it started
more trouble. Angela accusedme of not paying state comptroller taxes -- I brought them to David and proved her wrong. Then I
was accused of using their Fed Ex account, and that, too, turned out not to be true. It just looked like they were purposely trying to create trouble. I told David I couldn’t deal with these two, and he stated for me to deal with them or move on. I was shocked.
June 2005
I had done business with Mr. McGuire for years, and he had handled numerous business transactions without a problem until 2005. (He had approached me after his dismissal from Sterling Bank and stated he was opening a new bank and wanted me to come with him. Around 2004, I did so). He approached me about assisting me in a $350,000 warehouse line of credit for my car business. The initial conversation for this loan and all the restructure was to pull my children and wife’s money out of the business. They were well established, and I wanted to get my personal finances back in order. In June 2005, he told me he was going to provide me with this warehouse line of
credit, but when I went to his office to sign the docs, he said he did not have it done yet but convinced me to accept a loan for the accounts receivables (car loans) part of my business. I was very reluctant and told him so because I was taking on a new loan without any
capital to expand. McGuire promised me the $350, 000 line of credit would be done the next meeting. My businesses were thriving and
growing. Creating a huge monthly loan payment instead of the line of credit I was promised over-extended me and McGuire knew it. By holding off on the $350k, he was destroying my car business. So I contacted my mother-in-law Kristine, who immediately agreed to back me with more collateral so the bank could free up my lines of credit. At the time McGuire was just acting funny, and I wanted to make him comfortable. I still to this day do not know what he was thinking. He promised he’d get it straightened out.
Sept 2005
McGuire still had not given me the $350,000 warehouse loan and had my other credit lines locked up. All the while my mother in law Kristine
Garbo was waiting to assist me because I had explained to her my banker had me in a stall. McGuire knew there was
available collateral if he was not comfortable but stated it was okay, that I had plenty of equity, and he would get my loan done. I explained to him this was not right and he was locking up all my business, and McGuire told me to hold
off paying any loan payments until he got this straightened out.
My partners from F&S Ventures, John Spence and Chris Parker also contacted David McGuire to see if
there is anything they could do, and David told them he would take care of me.
Oct 2005
McGuire one more time tells me to pay current these loans, ( email ) and he will get the $350,000 warehouse
line of credit done. I pay, but he does not do it. He is telling me to sell cars to keep current and that he will get the job done.
This is now costing me more money by losing notes and hurting my business. ( provide emails where david tells me if i cannot get along with his new people then it will not get done, because he has moved in another direction in the bank) This is not what our discussion was when he promised this and talked me into signing a new loan taking on $10k in more debt monthly.
Susan’s Aunt Edit comes over and tells me about a man that owed her money named Greg Zak, a car dealer backed
by McGuire. She also told me Zak had filed for bankruptcy, and she was having a hard time getting her money from
him. I knew who Zak was because McGuire had introduced us at the bank. McGuire had also backed John Newman who
had bought my previous car business back in 1999. I had not seen Newman in years, and did not even know McGuire and he were
doing currently doing business until Edit told me her story. Since things with David were becoming so difficult, I went in and asked
him about why he was dragging his feet on my loan and why he was backing Zak and why Zak was not paying his debts.
I also asked if he was deliberately dragging his feet so that he could give Zak my accounts receivable business (part of DMG). I
also asked if he knew that the money Zak was using came from his father-in-law John Matthews (former talk show host in Houston) and that Matthews’ radio show was pitching offers for investments returning high interest rates. This was how Aunt Edit got swindled.
I also let him know that John Newman, who I sold my company to, was also being investigated for child
molestation, and that I was very concerned that Newman and Zak spent a lot of time together, and asked if he knew all these things.
He said nothing but was obviously aggravated. It turns out that I was right to be suspicious because McGuire made sure
Zak ended up with my notes . I was asked to give them to Zak, which I did right about the time I filed bankruptcy. I don’t understand why
these assets were not seized by the court, and the Trustee refused to explain this to me. His own assistants told me they knew nothing about this transfer to Zak, even though I presented the paperwork to the Trustee as instructed by my lawyer.
Nov 2005
McGuire called the house around late November approximately 6:00 pm and spoke with Susan Sissom , he said
to have Jimmy call him because he would have my loan ready in the morning and wanted to get it done before he left town on vacation. But when I called him back that night when I returned home from a car auction, he told me he had changed his mind, that it was too late and we would have to do it when he got back. I told him you just called a few hours ago, let me know what time and I will be there.
He said no, just wait till I get back.
January 2006
McGuire calls me and has a solution to get me capital until he can restructure my loans. He states it will make it easier for me and quicker because his bank is now going through some changes, and he needs more time. He said he had already spoken to Dick Tribe at Crown Financial who does bridge loans and called to set an appointment for me.
February 13, 2006 – CROWN
FINANCIAL, Dick Tribe
I didn’t know Tribe before this transaction. McGuire set up this loan up. I contacted McGuire about the interest rate and payment because it was high, but he stated that he would waive interest payments until he got all of my loans restructured, and that I should not have to make more than 2 payments to Crown Financial. Royal Oaks was paid $14,600 directly from the bridge loan to bring them current per McGuire’s instructions, and Tribe was paid a $10,000 payment for F & S Ventures and $750 payment for DMG. The total
proceeds to me were $189,000 and $35,360. I immediately returned $34k to DMG and $26000 to me for a home equity loan we took out for a loan to DMG (documented). There were several cars that had to be paid off, and the rest went to wife, as was our usual practice, to be used as needed for business – all documented.
NOTE – I discovered
May 2012 that Tribe had put an encumbrance on F&S prior to the loan being signed which I was never notified of or agreed to.
He represented this encumbrance fee as a title search fee to me.
Wouldn’t David McGuire be
putting his bank’s interest in F&S at jeopardy when he allowed me to “sell” the property for less than 1/5 of what was owed his own bank? Shouldn’t there be a non-assumable clause in R.O. Bank’s loan contract for F&S? Wouldn’t Crown
Financial have to assume the R.O. Bank note along with the
“purchase”?
February 18, 2006
McGuire started foreclosure proceedings on DMG within 2 weeks of taking payment for loans and and, since my loans were cross-collateralized, he was really foreclosing on everything. I did not know this until March 2006, so in the mean time it was business as usual and I had already used the money from the bridge loan to start financing operations for DMG.
Financial position on this date:
11.323 acre storage facility (35,389 sq ft of storage - climate/non-climate + 2 concrete pads ready for more units) 50% shareholder, $1,000,000 my net w/ over $141,000 total annual income – total worth $3 - 3.5 million (preconstruction appraisal $2.2mil-- unimproved, uncleared, no utilities, no structures)
$45, 000 CD in Royal Oaks Bank
$500,000 accounts receivable –DMG (depleted from at least $1,020,000 in Sept. 2005 because McGuire broke his oral contract
with me)
Inventory DMG - $100,000
Life Insurance - $250,000-
secured at Royal Oaks Bank
Life Insurance - Farmers -
$250,000
Inheritance money invested
in businesses from Susan - over
$150,000
Other personal loans to
businesses - over $300,000
House - $253k
Wholesale car buying had been cut off since around Oct 05 because McGuire locked my credit lines up,
costing me another $10,000 monthly – hurting his own bank in the process. Plus, he kept telling me to pay
interest only and kept putting off my attempts to pay him more collateral.