All Forum Posts by: Victoire Van der Pas

Following is the ownership of the Hughberry family homes. Note that the last two are owned by LLC's controlled by Greg Hughes and were the only homes sold at market value. Those two homes are not part of the HPC bankruptcy since "Polo Estates Manufactured Home Community LLC" is not part of the HPC family and they are also not HPC investor owned.

4016 E Oak St

Hughberry Homes LLC (88.82%)

Fortuna Real Estate (11.18%)

6902 E Hearn Rd

Hughberry Homes (48.66%)

Leon Rozin (30.74%)

F&J Properties LLC (20.60%)

6445 E Kings Ave

Hughberry Homes (56.86%)

Castello Joseph Nacy (33.42%)

Stephen T Doyle Trust (9.72%)

12402 N 74th Pl

Paula J Keifer Revocable Trust (100%)

16621 E Greenbrier Ln

12 Bridges LLC (100%)

6309 E Desert Cove Ave

Polo Estates Manufactured Home Community LLC (100%) (Greg Hughes controlled entity)

8231 E Malcomb Dr

Polo Estates Manufactured Home Community LLC (100%) (Gregh Hughes controlled entity)

You may all know that Hughes Private Capital has filed for Chapter 7 bankruptcy. The second 341 meeting was held 29 June 2023. I listened in and heard several questions about my lawsuit against HPC fund Assuravest which I settled in 2021. Attorney Ms. Fletcher (I think) asked a question about the Assuravest deposition. She asked whether HPC admitted that investor funds were used to pay the returns to other investors. Greg Hughes denied all of it. The sworn deposition of my lawsuit says otherwise. Here is the relevant portion of the deposition:

".....

Q. Then what is the source of the funds that is being used to repay -- or to pay these preferred returns to Mr. Hartwell and Mr. Adreini?

A. Investor capital.

Q. So it would appear that Assuravest, LLC was using investor capital to pay dividends. Is that correct?

A. Yes.

Q. So, for instance, Mr. Hartford -- or Hartwell is a -- is an earlier investor, so whoever is making the investments that are referenced on the dep -- on these -- on any of the deposits, those investors' funds are being used to pay the earlier investors their dividends?

A. Correct.

Q. Why were dividends being paid when there wasn't money from the notes that was coming in which would be sufficient to pay the dividends?

A. That was how it was structured.

Q. And who made the decision to structure it that way?

A. We did.

Q. We being you and Mr. Hughes?

A. Correct?

Q. What were the -- what was communicated to these investors about the ability to have these preferred returns paid to them?

A. That they had the option.

Q. To get their preferred returns paid?

A. Yes.

Q. And is it fair to say that all of the preferred returns that are referenced on Exhibit 62, and it goes through February of 2016 through September of 2017, it totals about $169,880.40, virtually all of these preferred returns would have been paid by another investor's money as they invested?

A. Virtually all, yes.

........"

Source:

Oral deposition of Steve Sixberry appearing remotely from Nevada, January 22, 2021.

In the United States District Court for the Western District of Texas, Austin Division

Victoire van der Pas, Plaintiff versus Assuravest, LLC and Hughes Private Capital, LLC, defendants

Case: 1:20-CV-00235-RP

Note: HPC stopped paying returns after September 2017. My redemption request in 2018 was denied. Filed suit in the district court of Travis County, Texas in July 2018, D-1GN-18-002929. Moved to Federal court in 2020, 1:20-CV-00235-RP.

Frank Mullen from the Reno News & Review did an excellent article on Hughes Private Capital. Just released today. Features me and several other investors. Very comprehensive, have a look:

https://renonr.com/2023/05/26/...

Quote from @Sharon Hoefling:

I missed the meeting due to work.  Does anyone know how to get a recording or transcript of the 341 meeting?

 Send an email to edward.m.mcdonald[at]usdoj.gov

Big red flags from the Q1 investor update and the Guardian bankruptcy meeting that nobody seems to be paying attention to.

As per the Q1 investor update, Mr Noe said that they have completed properties that needed up to $5K in repairs. They have moved onto repairing properties that need $5-10K. Once that is done, they will move onto properties that need even more money. Mr. Noe said additional capital is needed to work the properties. Since the fund has no money, where do you think this money is coming from? Exactly: investors

Mr. Noe said in the bankruptcy meeting that he wants the court to allow him to amend the master lease agreement. Guardian currently pays for improvements per the lease agreement. This is obviously getting very expensive because properties are in shambles. Many need a complete overhaul to make them habitable.

Two problems arise if investors become responsible for the cost of improvements.

First problem: the 2% return for the lease may not cover the cost of these improvements. Example: a 2% return on a $100K investment is $2,000 per year. However, a $100K dilapidated house can easily cost $20-30K to fix. Sounds like investors would be on the hook for that. What is the point of getting $2K if you have to fork over $20-30K in the form of capital calls in return?

Second problem: why would the fund repair houses if the investor pays for the improvements? For example, an older roof might last another 5-10 years with a $500 repair. Guardian investors do not have to pay for repairs. However, under an amended lease agreement, investors would have to pay for a new $5K roof. Why would the fund repair it?

Quote from @Sharon Hoefling:

Why/How is Hughes Private Capital, LLC the registered agent of 12B Residential?

Also, Hughes Private Capital, LLC is supposedly no longer in business. Hughes Private Capital, Inc was established on March 13, 2023. Contacts are Greg Hughes, Kyle Krch, and Steve Sixberry.

12B Residential was formed on 2/17/23.
The registered agent of 12B Residential Inc is Hoy Chrissinger Kimmel Vallas PC.
Officers are Aaron Noe et al.

12 Bridges Inc was formed on 3/14/23 when it was converted from 12 Bridges Inc.
The registered agent of 12 Bridges Inc is Hughes Private Capital.
Officers are Hughes, Sixberry and Krch.

Hughes Private Capital Inc was formed 3/13/23 when it was converted from Hughes Private Capital LLC (which was formed 1/29/09).
Ownership percentages (in 2021): Greg Hughes (52%), Krch (30%), Sixberry (18%) 

It is easy to confuse 12 B Residential with 12 Bridges. They are named so similar on purpose. HPC does it all the time. They have created several new entities recently and then they have the LLC to Inc conversions.


 

HPC BANKRUPTCY

The latest development is that Hughes Private Capital filed chapter 7 on 12 May. This was initiated by investors. HPC had plans to file bankruptcy (probably chapter 11) but they were beaten to it. 

Last month they converted both HPC and 12 Bridges from LLC to Inc. HPC created a myriad of new LLC/Inc's in the last few years. I have a pretty good grip of most of the NV entities as I had to dig into HPC and their books for 3 years when I successfully sued them. I have followed them for 7 years now.

Many of the entities are titled similarly to confuse, deceive and comingle. The different entities are not operated as separate entities. Investor money flows freely between different entities and their personal bank accounts. Not a great idea when you go down in bankruptcy.

FILE A SEC COMPLAINT

If you have not done so, please file a complaint with the Nevada SEC. The criminal investigator is in communication with the victims who filed. I understand that many of you have lost almost everything. Don't put it off. 

https://www.nvsos.gov/sos/inve...

You all may want to have a virtual look around in these two luxury vacation homes in Scottsdale, AZ. Purchased for $4,610,000 cash in February 2022 by an LLC that Greg Hughes manages. Btw, these properties are NOT owned by any of the HPC investor funds.

Greg Hughes Vacation homes

Owner of record: Polo Estates Manufactured Home Community, LLC, an entity registered on 3/1/2018 in South Carolina. Managed by Greg Hughes of Reno, NV

Note: this video was a deleted YouTube video originally uploaded by HPC that I recovered.   

I am a CPA and long time real estate investor. I was a HPC investor 2016-2021. I successfully sued Hughes Private Capital 2018-2021 and settled in 2021. I have done a financial analysis of their latest Hughberry fund. Please have a look at it, link below. It is bad. It also reveals where some of your savings went. I have also documented the questionable role of Mr. Aaron Noe in the Hughberry fund (who now oversees 12 Bridges and Guardian during bankruptcy). I do not believe Guardian will survive chapter 11 bankruptcy. I believe the plan is to first wipe out investors and then shut down as soon as possible. 

NV SEC has opened a criminal case on Guardian and HPC. If you are a victim in any of their funds, please contact the NV SEC with your story. They are conducting interviews and collecting evidence. Do it now. Strength is in numbers. Government has to step in. Once companies are shut down/bankrupted, it may be too late to find out where the money was transferred to. No point going after the remaining "assets" in the investor funds. 

https://www.biggerpockets.com/...

https://www.nvsos.gov/sos/inve...

One correction to my post: Greg Hughes cashed out his vacation rentals in March and April 2022 (not 2023).