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G by GUESS, the latest store brand from GUESS? Inc., will hold a grand opening Saturday, Aug. 2, at its newest location at Valley Plaza Mall, 2701 Ming Ave.

The grand opening event, scheduled from 2 p.m. to 6 p.m. Saturday, will include a live DJ.

The store features lounge areas where customers can sit and browse art and architecture books, preview new apparel offerings, and enjoy retro and new artist music videos projected onto a wood paneled wall.

Established in 2007, G by GUESS carries apparel, accessories and footwear and has 30 stores nationwide.

If that doesn't excite you, there's Carls Jr., which is sponsoring activities at remodeled restaurants Saturday, Aug. 2, to highlight a new look.

Four dual branded Carl’s Jr./Green Burrito restaurants and a Carl’s Jr. restaurant now feature a retro diner-style design and are holding events to celebrate.

Stop by the first event from noon to 2 p.m. Saturday at 4800 White Lane to see the Kelly 95.3 Street Team. Visitors also will have a chance to win a trip to Las Vegas, Dodgers Tickets, an iPod nano, or Carl’s Jr. gift cards. Sean Venedam with the Bakersfield Condors will make a guest appearance from noon to 1 p.m.

Additional events this Saturday will be held at 815 Real Road from 2:30 p.m. to 3:30 p.m. and at 9000 Ming Avenue at the Marketplace from 4 p.m. to 5 p.m. Those visitors, too, will have another chance to win an iPod nano or Carl’s Jr. gift cards. Free samples of the new Prime Rib Six Dollar Burger and Banana Cream Pie Shake will be available, along with the Kelly 95.3 Street Team.

The dual branded Carl’s Jr./Green Burrito remodeled restaurants are located at 3901 Auburn Ave., 4520 Coffee Road, 815 Real Road, and 9000 Ming Ave.

OK trialheads.

We have a 30-minute break, waiting for Timothy Hubbell to return with the letter from Kevin Sluga he mentioned to reporters yesterday.

Cole's attorney, Glenn Kottcamp, wants a copy. He was not aware of it until reading press accounts.

He asked Hubbell about the contents of the letter...in brief the one-page note from Sluga stated "he was responsible for all the Crisp & Cole activities" and the "loan activities for Jennifer and David," Hubbell testified.

The letter won't be made public until after the court's decision is rendered, said the state's attorney. We'll still ask Cole's lawyer and Hubbell if they'll give us copy.

Keep in mind this is just a license hearing. From the state's point of view, it was only interested in proving Hubbell did not write the letter, state's attorney told me.

During WaMu testimony, an entertaining portion of a letter from Crisp regarding the home purchased from Kyle Carter was read into the record. The home was smaller and cheaper than the home the Crisps were allegedly moving from (remember, it was claimed to be a primary residence.)

The letter contained descriptions of the layout, fountains, waterfalls and how Crisp wanted to leave it to his younger siblings and heirs, etc, how the second floor would be so wonderful for the children to play...not a downgrade at all, the letter explained.

Again, he had in place an open-ended lease agreement with Kyle Carter to stay in the house and was at the same time taking out a loan (also not disclosed to the WaMu subsidiary, Long Beach Mortgage) for the New Quay mansion. Claimed as a primary residence.

Cole's lawyer tried to get the witness, underwriter Julie Korman from the Chicago area, to say such agreements are common between buyers and sellers, that if the seller needs to live in the house a month or two before finishing another house, that is OK.

Korman said she had never seen it done, at least at the underwriting level, where she deals with loans.

"Never in documents have I seen that happen," she said.

State's attorney, on re-direct, asked if WaMu would have made the loan had it known about the open-ended lease agreement with Kyle Carter (or the other loans in play). No, she said.

Crisp's cross exam consisted of asking who the account executive was. Christian Gonzalez (not sure of spelling) from the Stockton office, they found in the paperwork.

What if Christian knew about the lease agreement, Crisp asked.

He would be obligated to inform the underwriters, Korman answered.

There are no more witnesses this afternoon, so after Hubbell returns we'll be ending today's session.

— Gretchen Wenner

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Good morning. We're back up in the basement of the Masonic Temple.

Yesterday's witness, CPA Timothy Hubbell, is being recalled by Cole's lawyer to get into the record what he told reporters after the hearing. (That Kevin Sluga wrote the forged letter bearing his name.) That should be later this morning.

We started with Wells Fargo witness Harmeet Dhindsa, who discussed some wire transfers.

We don't know why this evidence was entered, but here it is.

On May 4, 2006, a cashier's check made out to Crisp Cole & Associates for $517,864.38 (Not positive of amount; will confirm after, but over a half million)

On May 4, 2006, the checking account of Sneha Mohammadi [a former C&C employee named in the complaint who made a deal; her license will be revoked]; a withdrawal of $517,864.33

On May 4, 2006, a wire transfer from Chicago Title to Mohammadi's account for $517,579.95.

I asked DRE Senior Deputy Commissioner Joe Carrillo what the significance of these entries were; he said they will be explained later in the hearing.

Now a witness from Washington Mutual is testifying: one loan app has Jennifer Crisp's job claim: Jennifer Crisp Consultants; she allegedly provided consultancy for Kyle Carter and Crisp & Cole, the loan files say.

-- Gretchen Wenner, staff writer

A new children’s furnishings, apparel and accessories store will open this fall in downtown Bakersfield, in the spot that housed a similar retailer.

Ellie Jaye’s is named after owner Jason Martin’s 9-month-old daughter. He’s a new dad.

The store will be at 1608 19th St.

“The Arts District is a nice jewel in Bakersfield,” Martin said.

In addition to boutique-style merchandise, Ellie Jaye’s will offer children’s photography and massages for pregnant moms, Martin said.

Martin, 35, is planning to open the store Oct. 3.

He acknowledged some may think he’s crazy for starting a venture in a down economy, but he’s willing to take a chance.

“I want a piece of downtown,” he said. “The chances I’ve taken in my life, I’ve succeeded.”

He has 15 years of retail and management experience and a business partner, Jesse Corona.

Martin’s family will help run the business.

Bambini Carini was the previous tenant. It closed in mid-June.

— Jenny Shearer, staff writer
 

TV addicts and couch potatoes have three new high-definition channels to watch.

Bright House Networks Bakersfield Division added three channels to its free HD lineup, including Discovery HD, Animal Planet HD and TLC HD.

“These are channels that our customers have been asking about through surveys and just people wanting quality programming,” said Anne Schoolcraft, Bright House marketing and public relations manager.

The new channels are in addition to 14 existing free HD channels with Bright House’s Advantage Service, which also includes 75 cable and broadcast channels, standard HD converter box and an interactive guide for $57.40 a month.

— Angelle Barbazon, staff writer

Update: It's over for Wednesday.

Witness scheduling means no more folks on tap. So if you were planning on attending this afternoon, make other plans.

The hearing resumes Thursday at 9 a.m.

— Gretchen Wenner

[Note: the Web connection is extremely iffy/slow today, so formatting and other niceties are out the window]

Some general observations as we wait for a cell phone interview with a Wells Fargo witness (we all just missed testimony of an Aegis underwriter, except for an intern from 23 who stayed in the room).

Some folks have mentioned they'd like to watch some of the hearing but are worried they'd be stuck all day. Yes, it's easy to get in and out. It's a big room and the public comes in and out the back. So you can drop by for a little while and go. A few folks have been showing up but it's not a mob scene...maybe 3 or 4 at a time.

Back to Hubbell for a moment: He was apparently supposed to testify yesterday, the same day the forged letter was introduced as evidence. For some reason that did not happen.

Again, as this is a hearing for a judge and not a jury, the state's attorney is presenting evidence without explaining what it's about. When the letter was introduced, it was introduced as a letter with the signature of CPA so-and-so, etc. (something to that effect; not verbatim.).

If "purported" was used in front of signature, that is happening often now as Cole's lawyer seems to be aiming at the forgery defense (maybe a sensible move?) There was no indication during presentation of the forged letter that it was forged...I don't know if future forged documents will be admitted but obviously we now need to treat signed docs in this hearing as "allegedly" signed docs...

— Gretchen Wenner

Outside the hearing, Timothy Hubbell talked to reporters.

Kevin Sluga admitted to writing the forged letter, Hubbell said, after real estate regulators faxed it to him. He was told by regulators copies were made and used for other loans, but none of those loans are involved in the current hearing.

Only 13 properties are involved in the license hearing under way.

Some loan documents indicated Leslie Sluga was making $40,000 a month at Cal Business Solutions, he said. She really made about $400 a month.

Hubbell said Kevin Sluga was remorseful after admitting to using the forged letter. Sluga supposedly sent an apologetic letter admitting to many things around June 2007. Hubbell said he sent the letter to state regulators, who forwarded it to the FBI.

Hubbell also said he never had dealings with Crisp or Cole while at Cal Bus.

— Gretchen Wenner

Now testifying: Timothy Hubbell, CPA, formerly of California Business Solutions

State’s attorney Michael Rich is asking Hubbell general and specific questions about California Business Solutions, a corporation previously co-owned by Hubbell and Kevin Sluga (David Crisp’s father-in-law, Jennifer Crisp’s father).

Hubbell says Jennifer Crisp never worked at Cal Bus. Leslie Sluga, Kevin’s wife/Jennifer’s mother/David’s mother-in-law, worked a couple days a week doing bookkeeping tasks for a few hours at a time. She was paid $8 or $9 an hour, Hubbell said. She got about $200 per pay period.

Now state’s attorney pulls out the letter in Jennifer Crisp’s loan file with Aegis Mortgage, the letter on Cal Bus letterhead dated Sept. 16, 2006 and allegedly signed by Hubbell. (Hubbell left in May 2007.)

Is that your signature there, state asks. No, Hubbell says. Did you write that letter, state asks. No I did not, Hubbell says. The first time he saw it was when regulators faxed him copy later.

Now he is looking at a loan file of Leslie Sluga’s, where she claimed co-ownership of California Business Solutions for 15 years. Hubbell says this is not correct. April 25, 2006 letter: (We don’t know what this letter is) It refers to Leslie Sluga’s loan; he says he does not agree with the claim she was self-employed for two years.

Cross exam: Kottcamp, Cole’s lawyer. He asks if Hubbell recognizes the handwriting on the letter he did not write. He does not. He first became aware of it in May 2007, when the state faxed it to him, he says. No further from Kottcamp. David Crisp: no questions. Hubbell leaves.

— Gretchen Wenner

[Technical difficulties here...posting for now...updating..Hubbell testifying]

Wednesday is off to a rocking start, but I’m having problems connecting (also, fyi, I am going to continue to post as I have been; it’s too hard to manage any other way…apologies to those it bugs!)

1. CPA Timothy Hubbell’s signature was apparently forged on the CPA letter entered as evidence yesterday. He will testify later today….developing.

2. Kyle Carter is on the stand now. He has a written agreement being entered as evidence that he would lease the Marazion Hill property from Crisp after selling it to him (the lease agreement was not contained in the escrow/loan application files; Crisp claimed it as a primary residence in those files).

3. A SunTrust transaction coordinator, Joseph Nieman, said he verified Leslie Sluga’s employment at Crisp & Cole Real Estate over the phone. (Sluga is Crisp’s mother-in-law.) He described the method SunTrust used to verify employment by getting the business number from a third party, in this case 411, and calling the company to check employment, but not income.

Crisp, under cross examination, asked if Nieman had ever spoken to him personally; Nieman said yes.

Crisp then asked if Nieman had ever asked to borrow his car. Nieman said no.

Crisp reminded him he was under oath. Nieman still said no.

Major feedback problems here in the basement…we’re taking a break. Media pack, including me, off to chase Kyle Carter…

— Gretchen Wenner

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Here's a report from John Cox:

A Los Angeles movie theater developer hosted a ceremonial groundbreaking Tuesday on a 16-screen cinemaplex that Bakersfield officials hope will become the centerpiece of a new downtown entertainment district.

Aided by the city’s donation of land valued at about $500,000, Maya Cinemas plans to build a 66,000-square-foot theater and 30,000 square feet of surrounding restaurant and retail space on vacant land on the north side of California Avenue between N and P streets.

The company’s director of development, Ana Maria Quintana, said the project is scheduled to open just in time for 2009’s summer movie season.

Read the full story here.
 

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David Crisp is now cross-examining Dawn Trahey from SunTrust (again with help from judge and others). He refers to himself as Mr. Crisp.

So far we have Cole's strategy: Blame Crisp.

Crisp's strategy seems to be: blame the lenders.

He is asking Trahey about SunTrust's loan programs, including no-income/no-asset and no-ratio loans. Brokers were out in the field marketing these loans, they agree.

Crisp: Pretty risky loan, don't you think? he asks her about a no-ratio loan (which considers only credit score and assets, not income).

He says something, mostly inaudible, about SunTrust marketing reps coming to his house to give him and his wife these loans, not knowing anything about what was on his tax returns...

He also brings up the issue of commisions; did SunTrust consider large commissions abnnormal?

Yes, Trahey replies.

They get to the commission to Crisp & Cole for the New Quay mansion, $51,000. Is it a large commission?

Yes, she says.

Even back in the footloose lending days of 2006, she says, "we were told to watch for large commissions."

Now we're moving on again...

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Hayward, Calif.-based Mervyns LLC Tuesday filed for Chapter 11 bankruptcy protection.

The company said it was too early to say which stores, if any, will be closing, but the privately-owned mid-tier department store chain has been downsizing since 2005 as part of a turnaround effort that has been hampered by the slow economy.

Founded in 1949, the retailer is owned by a group of private equity players that bought Mervyns from Target Corp.

The company operates 177 stores in seven states, according to its Web site. Its two Bakersfield stores are at 4450 California Ave. and at East Hills Mall, 2800 Mall View Road.

What do you think of the venerable retailer's plight? When's the last time you shopped there?

--Courtenay Edelhart
 

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OK, my lame math.

If David Crisp made $350,000 a month, that's about $4.2 million a year gross.

Now an underwriting person from SunTrust Mortgage, Dawn Trahey, is on the witness stand under subpoena.

Michael Rich, the state's attorney, asked about discrepancies in job statements by Leslie Sluga, Crisp's mother-in-law.

Sluga's loan app to Suntrust for the Astoria Park property listed her employment as a transaction coordinator for Crisp & Cole Real Estate, the documents show, saying she had held the post about 2 years.

A loan application she submitted about 6-7 months later to Kirkwood Financial listed her as self-employed owner of California Business Solutions for 15 years.

Would the information have made a material difference in SunTrust's funding of the loan, Rich asked?

Absolutely, she said.

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We're still questioning Diane Taylor from WMC Mortgage for loans of about $1 million for 1805 Grimshaw Court.

Under redirect, the state's attorney points out a document showing David Crisp's gross monthly income as $350,000 (a month, obviously, as it's monthly).

State asks her if anything in her files indicates on the same day, March 16 2006, WMC knew David Crisp submitted a loan application to SunTrust for the New Quay court property showing he made $99,000 a month gross income?

Answer: she does not.

There is also a letter in this file, the WMC file, referring to Carl Cole as vice president of Crisp, Cole & Associates at this time. Not sure of significance as again, lawyers are putting items in record, not talking to a jury. The letter also makes mention that sometimes David Crisp and Carl Cole are paid from the CC&A account.

David Crisp is cross examining a woman from WMC Mortgage...(with the judge's frequent help, and sometimes Cole's lawyer).

His income, he had her reveal, was reported as $185,000 a month. This was a loan app made in about March 2006.

185 times twelve...I don't have a caclulator here and can't do math...someone add it up for me quick!

Plus don't forget the recent IRS lien on Crisp Cole & Associates for $155k or so filed in June.

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More testimony from SunTrust records custodian Doris Carrington.

A loan taken out by C&C office worker Janie Stockton for about $742,000 (counting first and second)…don’t know the property offhand.

Loan interviewer?
Carl Cole, for Tower Lending.

Purpose of loan? Purchase of primary residence.

Janie “JJ” Stockton’s legally estranged husband at the time, Gabriel, told us for one story she made $14 an hour or so. Like the few who spoke to us on the record…The Californian doesn’t use anonymous sources in stories…he later wouldn’t comment further. He believed she was pressured into taking these properties into her name by Crisp and Cole.

As I recall JJ Stockton had 4 properties in her name at one time, including a pricey Ordsall Street flip she bought from Cole’s son Alan Cole.

In previous testimony from Carrington regarding Jennifer Crisp’s loan for 11219 Draper Court, Crisp & Cole’s commission was $150,000 and Tower Lending’s origination fee $10,000.

We continue with entry of documents and details into the record. Cole’s lawyer did not get exhibits regarding the Stockton transaction so will be able to recall the witness; it remains to be seen whether  he will say it’s not really Carl Cole’s signature.
 

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The downtown vintage shop Shabby Chic has closed its doors after eight years so that the owners can concentrate on another store.

Shabby Chic, at 1517 21st St., had been a local mainstay for those who enjoyed vintage clothes and accessories. It was operated by twin sisters Amy and Kelli Davis, who also own Fashionista, a high-end clothing boutique that opened last year in three of the Fox Theater’s old H Street storefronts.

Shabby Chic carried authentic fashions from almost every decade, as well as vintage accessories and classic concert T-shirts.

“It was doing well, it’s just that we’ve opened another business and wanted to focus on that,” Kelli Davis said. “We just didn’t want to deal with it anymore.”
 

--Courtenay Edelhart

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Tidbit:

Remember the New Quay mansion of David Crisp in Seven Oaks? Where the FBI agents carried out evidence framed by a walkway of trees?

Crisp & Cole’s commission on that was $51,150; Tower Lending’s $15,740.

As I recall that was bought from someone’s bankruptcy proceedings, though I’m not sure how that plays into real estate transactions/commissions etc. Maybe  a pro can comment on how that works?


 

We're now hearing from a records custodian from SunTrust Mortgage, Doris Carrington.

Borrower: Leslie Sluga (David Crisp's mother in law) for 800 Astoria Park Drive.

Interviewer for the loan: Carl Cole, employed by Tower Lending.

Verbal job verification for Sluga? She was employed by Crisp & Cole Real Estate, the files say. (In the DRE's complaint, Sluga was never employed by the firm).

Sluga also indicated the property would be her primary residence.

Cole's lawyer hammers her on Carl Cole's signature. Is she sure Carl Cole signed it?

Yes, she says, though she was not there to see it.

He continues to hammer: Is she as certain it is Carl Cole's signature as she is the rest of her testimony?

She appears confused.

Yes, she says. In the normal course of business....

Kottcamp, Cole's laywer, interrupts. You're just making an assumption. He goes on in this vein. You testify this is Carl Cole's signature?

In the normal course of business....she looks around. Yes, she says.

State's attorney does not object.

Now we're on to another property

Good morning. The hearing is under way.

We're starting with witness Mike Balog, now president/general counsel of bankrupt Aegis Mortgage, who appears under subpoena.

Most questions so far are the same: who signed what, etc.

But on this property, 12706 Lanai Ave, the state's attorney asked if the file contained a filing indicating borrower Jennifer Crisp's occupation.

Q: Does the loan application [give her] occupation?
A:Yes, it identifies her as chief operations officer of California Business Solutions

State's attorney asks if there is a letter signed by a CPA supporting this?

Answer: Yes, it is signed by CPA Timothy Hubbell. [Hubbell will later appear as a witness, the state's list indicates].

Documents such as this CPA letter are not public...again these will likely be the core of the state's case. The state's complaint says Jennifer Crisp held no such position (at her father's CPA firm).

I don't have access to the letter so don't know who Hubbell worked for at the time the document was filed.

The defense's strategy seems to be clearer too. Cole's attorney, Kottcamp, hammered on sloppiness in the loan document: two instances where primary residence wasn't checked.

In one part of the loan, Jennifer Crisp had indicated it was to be a primary residence, which would give favorable loan terms.

David Crisp is trying to find documents showing he made a downpayment on this property. So far this doesn't seem to be panning out.

 -- Gretchen Wenner, staff writer 

Witness: Laura Calmes, Fremont Investment & Loan
She appears under subpoena.

The state attorney directs questions.
We’re now on a loan made to Robinson Nguyen (a no-show today, by the way), one of C&C’s former top staffers.

The loan for 3507 Rancho Santa Fe Street was brokered by Tower Lending. Purported loan interviewer: Carl Cole, signatures show.

Fremont loaned $296,000 and a second of $37,000 against the house.

Papers show Robinson Nguyen listed as an asset/liability another property, 1904 Ordsall Street, as his primary residence. (Our previous coverage found a string of Crisp & Cole related foreclosures on that tiny street in Seven Oaks at Grand Island).
 

Nguyen made a simultaneous loan application to Long Beach Mortgage (subsidiary of Washington Mutual), where he listed Rancho Santa Fe as a rental property.

Would that have impacted Fremont's decision to lend the money, the state asks?

Yes, witness answsers. Fremont knew nothing of the WaMu loan.

David Crisp is asking her about Fremont's loans....Jerrad Teixeira...(former Crisp employee)...and his family's loans.

State objection overruled, she can answer.

Crisp asks if there are any tax forms, such as 1099s, for the Crisp family in the Fremont files.

She is confused...the files here? No, she says.

Crisp asks if Fremont is still in business.

Yes, she answers; they no longer make loans but are in business.

He asks who account executive was on the loans...something about who knew him, his income, his family...

She reads name of underwriter, Bernita someone; account executive was Joe [inaudible]; Crisp knows him by name.

Today is over. We meet tomorrow at 9.

-- Gretchen Wenner, staff writer

Sale from Kyle Carter to David Crisp
11402 Marazion Hills Court
Witness: Mary Ann Froehlich of Ticor Title

The state attorney asks if Froehlich is here because of a subpoena; she answers yes.

Questions again as to details of the documents.

Who was the selling agent on behalf of Crisp & Cole Real Estate? Jack Doremus.

Escrow documents contain a residential lease-after-sale agreement between Kyle Carter and David Crisp; Crisp is the landlord, Carter the tenant.

Payments of $35,222 went to Crisp Cole & Associates; $7,407 went to Tower Lending.


HUD1 documents show different amounts: $37,800 fee for C&C, $6,300 origination fee for TL; not sure if this is significant.

Cole’s lawyer questions her.
He points out the lease agreement was signed before escrow closed.
He also points out the property was not listed as a primary residence on loan papers.

Next up:

Laura Calmes, Fremont Mortgage

 

Philadellis Steaks and Subs is going out of business after 10 years.

Co-owners Patricia Taylor and Michael Robertson  bought the sandwich shop from Sandra O’Leary in 2003. O’Leary had opened it five years earlier, along the way moving it from its original location at Truxtun Avenue and Coffee Road to its current spot at 4405 Ming Ave.

The 25-seat restaurant’s signature sub was its Philadelphia cheesestake, but it was also known for sandwiches such as blackened pastrami and oven-baked turkey. All side dishes were made from scratch.

“It hurts me to leave because I stand by our product. I know it was good,” co-owner Taylor said. “It’s just that the economy has really hurt us. Our nights were really slow and fewer people were coming in at the lunch hour, even after I hired one of those sign guys. It’s just a bad time for business owners.”

Taylor said she’d like to reopen at another location some day, possibly in the Rosedale area, but not until the economy improves.

Doors close Aug. 8.

The owner wrote this goodbye note.

--Courtenay Edelhart

More afternoon details:
Witness: Mary Ann Froehlich of Stewart title

State attorney Michael Rich continues to lay groundwork introducing documents…loan documents, escrow disbursements and the like.

For one property, Carl Cole was the buyer. He signed as both the selling broker (through Crisp and Cole) and as the buyer, taking out $1.45 million against the home, the documents showed.
The state attorney also pointed out a compliance document in the HUD1 paperwork Cole signed.


More properties, more disbursements.

A sale from John Balfanz Homes to Jennifer Crisp.
Crisp & Cole were paid $13,186.80 in commissions; Tower Lending $5,274.72, escrow records show.

A sale from John Balfanz to Janie “JJ” Stockton, one of Crisp’s former office workers.
C&C commission: $45,000.
Tower Lending origination fee: $5,943.50.


Later, Cole’s lawyer asks about some document details.
Is there a lease back to seller document, Kottcamp asks Froehlich.
She can’t find it in the file.
Kottcamp says he hasn’t found one either.
“I will concede there’s no written lease in the file,” Rich, the state attorney, says.

Kottcamp also points out a re-purchase agreement for the seller, who has the option to buy the house back for one year for $679,950.

David Crisp cross examines.

He confirms Crisp & Cole Associates got no commission from the sale where Cole bought the home where he was also listing broker.

He refers to $75,000 paid out of escrow.
(It’s not clear who this was paid to or what property is being discussed here.)
Crisp referred to it as a downpayment, but Froehlich says only the papers show it was paid out of escrow. She was not the escrow officer, she said, and did not handle the transaction.


We're now in a 5-minute break.

Seems Cole's lawyer is trying to show David Crisp forged Cole's name on at least one transaction. 

Eric Klein from Chicago Title is back as the witness. Kottcamp had him compare signatures.

The state attorney objected on the basis of foundation (I don't know what that means). It was sustained.

David Crisp raised some issues with Klein, to which the state attorney successfully objected again on the basis of foundation. The judge told Crisp he could bring up the issues when he testifies as the exhibit had already been admitted as evidence.

For those of us here...just reporters now...we're at a disadvantage. Unlike a jury trial, where we can peek at exhibits the jury sees, we've got nothing to look at. They are referring to exhibits with thousands of pages and signatures in those docs, mostly mortgage papers. So it's not always clear what properties or transactions are being discussed.

Now a Stewart Title witness is testifying.

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This morning, I joined a throng of media at Scaled Composites in Mojave for the unveiling of White Knight Two, the craft that will ferry SpaceShipTwo into space.

Scaled and Virgin Galactic have partnered to take regular folks up, up and away. White Knight was christened "Eve" after Sir Richard Branson's mum, Eve. Sir Richard is a billionaire but doesn't put on airs.

Tickets are $200,000, but maybe one day they'll decrease in price. You know, like DVD players (before BluRay). I talked to a L.A.-based entrepreneur who's among the 270 people to pony up to see our planet and experience weightlessness.

If I could swing a ticket, I think I'd go. Would you?

— Jenny Shearer, staff writer 

Update on previous witness names:
• Steve Kirkwood of Kirkwood Financial
• Eric Klein of Chicago Title, manager and vice president in Kern County

Post-lunch reconvene

Summary: So far state attorney Michael Rich has called two witnesses, a mortgage banker and a title company worker, to focus on details of mortgage documents.

The state is putting documents, piece by piece, into evidence as exhibits. So far neither Crisp (representing himself) nor Cole, through attorney Glenn Kottcamp, has objected.

The rest of this afternoon appears to be more of the same, with mostly witnesses from title companies, banks and others testifying.

Now, the hearing has resumed:

Fidelity National Title is up.
Jill Mushaney is the witness.

Property: [?]
Buyer: Initially David Crisp, changed to Jennifer Crisp; bought from Mohammadi
Payments: $150,000 commission to Crisp Cole & Assoc., $10,450 origination fee to Tower Lending
Questions from Cole’s lawyer about lack of signatures on purchase agreement. State lawyer redirects to other pages. Name of agent is typed in, Mike Munoz (a Crisp employee); nowhere is it disclosed listing/selling agents are the same. Munoz’s signature is not on the document.
No further questions. 

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Our latest map for homes that sold in Bakersfield from June 1 to 8 is ready for a peek.

We regularly publish single-family home sale transactions that occurred between individuals as well as foreclosures.

Check out what homes are going for, color-coded by price, with information from First American Real Estate Solutions compiled by reporter Jenny Shearer.

Highlights for June 1 to 8:

78 homes are new on the map.

Priciest? One sold for $610,000 in the 93311 ZIP code. (It was 3,703 square feet.)

Cheapest? One sold for $66,000 in the 93306 ZIP code. (It was 995 square feet.)

What do you think of the prices? Are you trying to buy or sell? How's the market out thre?

— Christine Peterson

Chicago Title testimony, Part II

Property: 1276[?] Lanai Avenue
Buyer: David Crisp
Payments: $30,000 commission check to Crisp & Cole
$4,637.50 to Tower Lending for loan origination
Interspousal transfer from David to Jennifer Crisp

[NOTE FROM ME: These details are probably interesting to real estate junkies as such commission amounts aren’t public information. This is the type of information the state and feds can subpoena from title companies, etc…without that we’d have no way of knowing how much Crisp & Cole/Tower made from these sales]

Property: Haydock Court, redux
Items in escrow account: $34,000, payable to Crisp & Cole, authorized by Sneha Mohammadi. (Mohammadi has settled with the department; her broker license will be revoked Aug. 12)
$517,579.95 Crisp and Cole wire on request, dated 5/3/06, by Mohammadi
[what is it for?; they don’t say]
Letter: Dated May 3 2006 to Chicago Title from Mohammadi, requesting check payable to Crisp & Cole Real Estate

Property: 1904 Ordsall Street
Buyer: inaudible
Payments: $35,501 and $2,595 to Crisp and Cole Assoc; $5,849 (sounded like an ‘8,’ will have to re-check at break) to Tower Lending

Property: 3507 Rancho Santa Fe Street
Buyer: Robinson Nguyen (a Crisp & Cole employee; he is not present today although as of Friday he had not made a deal with DRE)
Payments: $20,515 to Crisp, Cole & Assoc.; to Tower Lending (no amount mentioned, but this is introduced as an exhibit)

Cole’s lawyer: I don’t see this property listed…

State lawyer: this is to show Robinson Nguyen listed this as an investment property…

This concludes questions for Chicago Title witness.

We are breaking for lunch.


Update:  Carl Cole's lawyer is Glenn Kottcamp, a Fresno attorney with his own practice

Witness from Chicago Title; again names inaudible in this setting.

Questions surrounding documents regarding specific property transactions continue:

Chicago Title witness

Property: 800 Astoria Park Drive
Escrow closed: Oct 6, 2005
Agent: Signature illegible, but from Crisp & Cole
Commission payment: Two checks to Crisp & Cole Real Estate and/or Crisp Cole & Assoc.
One check was for $22,330, the other for $1,670
Tower Lending also made $5,003 or so for originating the loan.

Property: 7908 [Revelstoke?] Drive
Buyer: Jennifer Crisp
Agent: Carl Cole was broker [unclear if loan broker or real estate agent], inaudible if he was also agent for property transfer
Commissions: $9,600 payable to Crisp & Cole
$3,200 origination fee to Tower Lending

Property: ?
Buyer: Megan Balod, purchased from Crisp, Cole & Assoc (Balod is Crisp’s sister-in-law)
Commissions: To Tower Lending, $3,180; $34,000 to Crisp & Cole
Escrow instructions show these other payments (not commissions; explanations not given; the state attorney and the witness are just confirming items contained in the documents in front of them)
$142,451.12 to Crisp & Cole Realty
Also a check showing payment to Tower Lending showing $7,410

Property: 10509 [?] Court
Buyer: David Crisp
Commissions/payments: Check register shows $20,707.50 origination fee for Tower Lending. Commision: $51,500 for Crisp & Cole Associates.

NOTE FROM ME: We made a PDF available in our special Crisp & Cole section listing all the properties in the complaint; those with a burning desire can refer to that for more info. You can also download the state’s complaint in PDF form.

Commission on 10509 continued: A commission instruction? Yes…
Q. How was commentary:
$54, 400-something dollars

Q. Is there also a commission between Cavanaugh/Grammy[?] for commission between Crisp and Cole Real Estate?
A Yes.

Q. …closing costs…is there a commission figure for C&C on it?
A. $51,500
Q. I’d like to have this marked as exhibit 19, as it relates to the 5th cause of action…

…NOTE FROM ME AGAIN…I’ll post this for now…more to come, they’re shuffling papers…
 

Witness: The CEO of Kirkwood Financial, a now-defunct mortgage bank in Victorville

Properties: 11504 Haydock court
$1.7 million in loans from Kirkwood
Borrower: Leslie Sluga
Broker: Chris Stovall through Tower Lending (also named in the DRE complaint)


Loan documents show Leslie Sluga claimed $40,000 a month income, the state attorney and witness say as they thumb through documents.

Q. If you had known Leslie Sluga did not intend to reside in the property would you have made the loan?
A: No I would not.

At the same time, the state attorney said, Sluga was taking out a loan from SunTrust Mortgage for 800 Astoria Park. On those papers Sluga claimed she had worked for 2 years at Crisp and Cole as a transaction coordinator, the documents they are referring to say.

Q. Would you have made loan if you knew about SunTrust loan?
A. No

The fee Tower Lending earned for making the loan was $3,187.50.

The lawyer also asked if Kirkwood was aware Sluga was Crisp’s mother-in-law when it made the loan.

Kirkwood said he was not aware; the fact would have made a difference in his decision of whether to fund the loan, he said.

Opening statements, in brief (Note: It’s REALLY hard to hear…there’s an AC drowning everyone out…so this is just the gist of what seems to have happened).

The state (Michael Rich):

Rich referred to the accusations in the DRE’s complaint, saying Crisp & Cole’s applications for 100% financing from multiple lenders was done in a way that prevented lenders from knowing real debt ratios. While one loan was in escrow, the same borrower would apply for another, indicating each home was to be a primary residence in order to get the 100% financing.

Rich described the “scheme” this way: “This plan is not original. It’s not new. It’s been tried before with disastrous results.

“Unfortunately, these schemes were perpetrated deliberately” by the respondents, he said. In Cole’s case – Cole was managing broker responsible for the firm’s activities – he failed to supervise the employees’ actions, Rich said.


Cole’s lawyer (still don’t know name, sorry):

Essentially said that by 2005, when most of the items in the DRE complaint transpired, Cole was focused on the Towers project at Cal State.

The company’s employees engaged in activities “most of which Mr. Cole had no knowledge of,” the lawyer said.

As to a loan Cole took out indicating the home would be his primary residence when it was not, Cole’s attorney said “that was not the intent” when Cole took out the loan.

Crisp gave no opening statement; it seems they’re just focusing on one item now: The 11504 Haydock Court property.

The CEO of the former Kirkwood Financial mortgage bank is now testifying; they are going over the loan given to Leslie Sluga, Crisp’s mother in law, through Tower Lending, the Crisp and Cole mortgage brokerage.

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First bit...it's under way so here's description...it's taking a while to post so I'll be back with opening statements soon.

We’re in the basement of the Masonic Temple, the fantastic building on 18th Street west of the Greyhound station.

The judge is seated at a table in the front of a large, open hall….seems to be a cafeteria. A mural with ivied pillars opening to a mountain scene fills small theater stage behind him. Blue velvet curtains.

Three wood tables face him. On the right, from the audience’s perspective, are the state “prosecutors:” Attorney Michael B. Rich for the state Department of Real Estate and Joe Carrillo, senior deputy commissioner of the department. Next to them are about 17 banker’s boxes filled with documents.

In the middle table is David Crisp, who appears to be representing himself. He has four bankers boxes. Dark blue or black blazer over cream pants, black shoes, the same haircut. White shirt, no tie.

On the left is Carl Cole and a lawyer…not sure of his name yet (the lawyer). Cole has a grey suit and black shoes. That’s all I can see from the back.

The judge just conferred with everyone and sent the camera folks out, as he had ordered.

It’s starting.

The AC is loud in here.
 

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Do you know what Joe Jimenez accomplished?

Take a look at what he and many other Kern County men and women in business have done in this week's People in Business column.

People in Business announces new hires, promotions, awards, professional achievements and other business “people news” in Kern County. Submissions can be mailed to The Bakersfield Californian, business editor, P.O. Bin 440, Bakersfield, CA 93302; faxed to 395-7519; or e-mailed to business@bakersfield.com. Sorry, photos that are submitted cannot be returned. For information, call 395-7345 between 9 a.m. and 6 p.m.

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Check out this news from reporter Jenny Shearer:

British billionaire Sir Richard Branson and other dignitaries will roll out WhiteKnightTwo, the mothership that will take a commercial vehicle into space, at the Mojave Air and Space Port on Monday.

Flight tests for WhiteKnightTwo may begin this fall and could take a year to 18 months to complete.

Branson’s venture, Virgin Galactic, in partnership with Scaled Composites, founded by Burt Rutan, will offer space tourism to travelers who can afford six figures for the ride.

According to Virgin Galactic, WhiteKnightTwo would reach an altitude of 50,000 feet. At that point, SpaceShipTwo would be released, and that craft would take passengers up to 360,000 feet.

Here's a "raw report" press release from the Greater Bakersfield Chamber of Commerce:

Chamber Business After Five Mixer combines business connections and fun
 
Rabobank, N.A. hosts the Greater Bakersfield Chamber of Commerce Business After Five Mixer on Thursday, July 24, from 5:30-7:30 p.m., at the 5151 Stockdale Highway branch.
Make new and renew business connections while enjoying all the amenities of “business after five,” including hors d’oeuvres, DJ, putting contest, giveaways and prizes. Regular admission is $5 per Chamber member and $10 per nonmember. No reservations are needed. For information, call 661-327-4421.

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I was reading a USA Today story about an apparent increase in the fist bump in the workplace. Maybe you already know what that is — two people lightly tapping fists.

Are you kidding? People actually do this at work?

Apparently more men, especially those who are friends or acquintances outside the work world, find this acceptable, the USA Today story said.

Maybe ... but just don't expect me to have a good impresion if you give me a fist bump on a job interview.

— Christine Peterson

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There are probably more, but so far we've found three significant land sales by developers fetching them roughly 21 to 30 cents on the dollar compared to what they shelled out during the boom.

The most recent are two southwest tracts sold last month by Ennis Homes and a northeast parcel sold by KB Home.

Total paid for those sites in 2005? More than $11.5 million. Total they sold for in June 2008? About $2.2 million.

And as we type, the county assessor's office is revaluing all those unstarted and unfinished residential tracts, expecting hundreds of millions to come off the assessment roll in the next few weeks.

I suspect this is an excellent scenario if you have a big pocketful of cash?

-- Gretchen Wenner, staff writer 

Apparently, Bakersfield is No. 9 in the Top 30 Midsize Cities for Doing Business, according to Inc. Magazine.

After looking around some more, I saw that the city also ranked No. 38 in Overall Top Cities for Doing Business, just below Ogden-Clearfield, Utah and above Panama City-Lynn Haven, Florida.

Check it out for yourself here: http://www.inc.com/bestciti...

Read our full story here.

What do you think about the state of businesses in Bakersfield?

— Angelle Barbazon, staff writer

Lassens Natural Foods & Vitamins will offer demonstrations, samples, raffle prizes, local health practitioners and more during a 38th anniversary celebration Saturday.

Actor, author and environmental activist Ed Begley Jr. will be on hand at noon to sign his new book, “Living Like Ed,” and demonstrate eco-friendly cleaners.

The store is located at 4308 California Ave.

Call 324-6990 for information.

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Do you know what Catherine Pickering accomplished?

Read all about what she and many other Kern County men and women in business have done in this week's column.

People in Business announces new hires, promotions, awards, professional achievements and other business “people news” in Kern County. Submissions can be mailed to The Bakersfield Californian, business editor, P.O. Bin 440, Bakersfield, CA 93302; faxed to 395-7519; or e-mailed to business@bakersfield.com. Sorry, photos that are submitted cannot be returned. For information, call 395-7345 between 9 a.m. and 6 p.m.

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Our latest home sales map is ready for a peek. Check it out here. The map is updated with homes that sold in Bakersfield May 26 to 31, color-coded by sales price.

We regularly publish single-family home sale transactions that occurred between individuals. Since foreclosures, or bank-owned properties, now account for an increasing number of weekly sales, sales between banks and individuals are now being included.

Check out what homes are going for with the information from First American Real Estate Solutions compiled by reporter Jenny Shearer.

Highlights for May 26 to 31:

• 73 homes are new on the map.

• Priciest? One sold for $810,000 in the 93314 ZIP code. (It was 3,803 square feet.)

• Cheapest? One sold for $52,000 in the 93308 ZIP code. (It was 660 square feet.)

What do you think of the prices? Are you trying to buy? Sell?

— Christine Peterson

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Starbucks recently announced the imminent closure of around 600 U.S. stores. Under pressure from customers and employees for not being more forthcoming about the exact locations, the coffee giant has released the locations of affected stores.

And guess what?

There are no local Starbucks on the list.

Here's the list.

Castle & Cooke got the OK Thursday night from the Bakersfield Planning Commission to make design tweaks to its Windermere development in the southwest.

Several residents told commissioners they loved Windermere's design touches, including garages that are tucked away in alleys instead of being "front-loaded" or on the street.

But realtor Louie Gregorio told commissioners he had a listing in Windermere for four months and clients consistently said they didn't like the alley feature.

The neighborhood doesn't look like most Bakersfield subdivisions. And that's the problem, according to Castle & Cooke. People who toured models told pollsters they wanted larger yards for their money. The company has sold less than 20 homes since the development came online.

I went through a home in Windermere and its yard was plenty big. The woman has  a lovely pool,  lawn and storage space. Her house is gorgeous.

What do you think? Is there an obsession with big lots in Bakersfield? Could Westchester, arguably the city's most desirable neighborhood, one that has homes that don't look the same, be built today? Would it fly?

— Jenny Shearer, staff writer

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Our state attorney general sent out a press release this morning disclosing "shocking new details" about Countrywide's deceptive practices during the housing bubble, saying employees were rewarded for selling risky home loans and the company igored its own underwriting guidelines.

California filed a lawsuit in June against Countrywide Financial for deceptive lending. Illinois has also sued the company. Bank of America agreed to buy it earlier this year.

(Indymac Bank, by the way, was co-founded by Countrywide's former CEO Angelo Mozilo. If you haven't been following the news lately, Indymac is the Pasadena-based bank that failed last Friday.)

Personally I wish the "shocking new details" revealed what city these loans were made in. Perhaps that will come out in the wash. Countrywide made many loans in Bakersfield and Kern during the real estate boom.

If you're so inclined Atty. Gen. Brown's complaint is attached as  PDF file at the bottom of the press release if you click the link.

-- Gretchen Wenner, staff writer

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So says DataQuick's latest report, out today.

Numbers for Kern aren't included; they typically come out in a day or two.

While June sales were up from the previous month and the strongest in 10 months, DQ reported, it was still the slowest June in the company's 20 years of collecting sales stats.

Read the full report here.

-- Gretchen Wenner, staff writer

Areas of Oildale need help, and Supervisor Mike Maggard believes a redevelopment agency could be one solution to eliminate blight, create jobs and offer residents hope.

Tuesday, supervisors asked county staffers to study what it would take to create a redevelopment agency. It's a small step forward. It's not clear when supervisors may next get a report about agency feasibility.

Bakersfield has a redevelopment agency; Maggard pointed to successful projects such as the Rabobank Arena and downtown's Kress Building. But this would be new territory for Kern.

Examples of redevelopment projects include street improvements, public facilities and housing and commercial projects. Monies come from the taxes entitles, such as the county and school districts, would agree to share with an agency for a period of time. Agencies are accountable, consultants told the board.

The board heard from two residents who urged fiscal responsibility when it comes to redevelopment projects. Citizens for a New Oildale think an agency could help the unincorporated community.

What do you think about redevelopment? Is it a good idea for Oildale — and government? What projects would you like to see attempted?

— Jenny Shearer, staff writer

I wrote a short item about Elaine's Cafe and Market, a new business in downtown Bakersfield, catty-corner from Happy Jack's. It specializes in vegetarian and vegan fare.

Proprietors Tim and Tracy Thompson want to share their love of healthful food with the community. They sell sandwiches, salads and dry and cold and frozen goods. Hot foods will be available before too long.

I tried the vegan chicken salad sandwich for lunch today.  It's made with vegan mayo, soy "chicken" and featured lettuce, tomatoes and red onions. It's a good-sized sandwich for $4. Tracy makes all the food, including the ice cream, which is refreshing and light.

Elaine's is open from 7 a.m. to 7 p.m., Mondays-Thursdays; 7 a.m. to 2 p.m., Fridays; and 11 a.m. to 3 p.m., Sundays.

— Jenny Shearer, staff writer

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Do you know what Duane Henning, the man on the left, accomplished?

Read about what he and several other people in business have done — their promotions, their awards and their professional designations — in this week's People in Business column.

Would you like to be in next week's?

It's best to submit to www.bakersfield.com/yourwords.

You can also mail contributions to The Bakersfield Californian, business editor, P.O. Bin 440, Bakersfield, CA 93302; faxed to 395-7519; or e-mailed to business@bakersfield.com. Sorry, photos that are submitted cannot be returned. For information, call 395-7345 between 9 a.m. and 6 p.m.

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Airport Bus Bakersfield recently scaled back its trips to LAX from seven daily to five. The company said it was the only way to avoid raising ticket prices ($54 round-trip) amid soaring gas prices.

How do you get to the airport when you travel?  Which airport do you use, and where do you park?  Would you be willing to pay more for transportation to avoid earlier departures and later returns, or do you have more time than money?

--Courtenay Edelhart

Our latest home sales map is ready for a peek.

The map is updated with homes that sold in Bakersfield May 19 to 25, color-coded by sales price.

We regularly publish single-family home sale transactions that occurred between individuals. Since foreclosures, or bank-owned properties, now account for an increasing number of weekly sales, sales between banks and individuals are now being included.

Check out what homes are going for with the information from First American Real Estate Solutions compiled by reporter Vanessa Gregory.

Highlights for May 19 to 25:

• 85 homes are new on the map.

• Priciest? One sold for $1.67 million in the 93311 ZIP code. (It was 5,420 square feet.)

• Cheapest? One sold for $73,000 in the 93304 ZIP code. (It was 980 square feet.)

What do you think of the prices?

— Christine Peterson

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It appears Gottschalks has completed its main store transition at East Hills Mall. Read about all the changes in John Cox's story from late May.

This weekend, the spot at the east end of the mall was a fully operational department store. It has an open and airy feel, and a pretty big shoe selection just like when the store was in the middle of the mall.

I asked a clerk if customers had figured out that the store at the east end was now the main location, and she said "they're getting it."

And for the Cheapskates out there, I can say there were a lot of sales, at least this weekend. I got out of there with a dress (originally about $90) and a bathing suit (originally $94) for $55 total, keeping me in budget.

— Christine Peterson

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Do you know what the man to the left accomplished?

People in Business is the place to announce promotions, awards and other good work among professional in our community. Check out this week's list here.

People in Business is the place to announce professional achievements. Want to be in next week's list? It's best to submit to www.bakersfield.com/yourwords.

You can also mail contributions to The Bakersfield Californian, business editor, P.O. Bin 440, Bakersfield, CA 93302; faxed to 395-7519; or e-mailed to business@bakersfield.com. Sorry, photos that are submitted cannot be returned. For information, call 395-7345 between 9 a.m. and 6 p.m.

In a bid to nudge reluctant consumers over to Vista, Microsoft Corp. has announced it is taking Windows XP off store shelves.

Have you used both operating systems?  What do you think of them?

Reporter Courtenay Edelhart would like to talk to you if you have strong opinions one way or the other. (661) 395-7372.

--Courtenay Edelhart

Gov. Schwarzenegger's "90 Days of Hope" campaign has rolled out a series of ads and public service announcements encouraging homeowners to fight to save their homes, according to a Tuesday press release.

“It wasn't easy, but we worked with our lender and we got to keep our home,” a homeowner says in one of the PSAs.

A few months back, I went to a local foreclosure prevention workshop and spoke with some homeowners.

Several said they were frustrated because they'd tried to negotiate with their lenders and hit dead-ends at every turn.

Anyone out there got a success story about saving their home from foreclosure?

-Vanessa Gregory, staff writer

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Have you heard? "Fresh Apple Fries" are the newest kid-menu offering from Burger King.

The "Fresh Apple Fries" are uncooked apple slices shaped like French fries, and they come with a low-fat caramel sauce for dipping, according to the Associated Press.

Why can't apples look like ... apples?

I'm very curious to hear what parents think of this. A good way to "disguise" what your kids eat? What about just teaching kids it's good to eat fruit?

Check out the picture to the left — that's the whole meal you can buy if you are so inclined.

— Christine Peterson