Sterling Commercial Capital Brian Opert Public Warning New Orleans Louisiana

Emerald Falls Golf Resort and Residential Development 

This project began with a submission through a mortgage broker in August, 2016, seeking a refinance on an assemblage of land called “Emerald Falls Golf Resort and Residential Development”, located in Broken Arrow, OK. Obviously, a refinance presumes that the Subject Property is already owned by the named borrowers, which was the claim. The transaction quickly fell apart. The transaction was later resurrected in December 2016, by Gary Sparkman, who claimed to be the sole principal, and current owner (on title), (as the broker had fallen ill).

In my reply email to Gary Sparkman of 12-12-2016, I specifically asked if the deal was a refi (already owned) or a purchase. After months of back and forth about this specific question, it became evident that the Subject Property was NOT owned by Gary Sparkman, nor any of his listed associates, and that they were endeavoring to perpetrate a fraud by claiming such ownership, thereby securing 100% financing. That was the deal killer.

My email of 12-12-16:

It appears that you are buying the property for $3.8 million, and seeking 100% financing. Notwithstanding what others have invested into the property in the past, we define it as what you are paying for it is what it’s worth. So, as land, our loan would be 50% of the lesser of as-is value or purchase price, 12 months, 15% interest, non-recourse, plus points to be determined.

(If the property has cash-flows from the improvements on the land, we will consider it as a commercial property and can increase our loan amount (based on increased LTV/LTC) up to 65% of actual purchase price, at 12% interest, 12 months, non-recourse, etc. To accomplish this, we need 2016 y-t-d P&L from the property.)

 Please advise

Gary Sparkman’s reply, also of 12-12-16

Brian....thanks for the response, given the holidays and etc.  It appears that I have not articulated the proposal very well.  This is not a purchase, the $3.8MM is a lien and I am seeking equity financing.  I will take time to better articulate the issue and then in doing so, perhaps I can speak with you telephonically with support provided in this response.  Thanks again, oh by the way, the exhaustive submission about 1/10th of data.

We then reviewed the claimed ownership details that were provided by Gary Sparkman as attachments to the above email.

My 12-22-16 email response top Gary’s detailed and lengthy submission:

How does this work? Entity “LLLP” is the borrower and titled owner of the real estate (which will show in the title report), which in turn is 100% owned by Investment Group “Inc”., which in turn is 100% owned by Investment Group (no Inc), and Gary Sparkman is reported to be the sole stockholder of all 3 entities with 100% of the shares.

 At Nevada Secretary of State portal, Gary Sparkman’s name shows as shareholder of the “Inc” – there are no other entities reported where Gary is involved in NV. The Inc also has another shareholder listed, who, by default, will also be an owner of the real estate.  The listed LLLP entity does not exist in NV.

Send us formation docs, list of all officers and shareholders, and certificates of good standing for each of these entities so we can proceed.

 At closing, your attorney will be required to issue an opinion that the deal is valid and the structure you outlined is also legal and valid.  

Gary Sparkman’s 12-15-16 response:

In regards to your last paragraph, I will address that issue and then in a following email, address those other issues with support documentation.  Vijay Chandran speaks very highly of you and so does James Anzelone.  Whether a purported relationship is a tongue in cheek comment lacking merit, I can only go by their comments.  That being said, I am not a person that plays game nor do I attempt to seek enrichment through smoke and mirrors; that being said, I feel somewhat guilty for taking your time, for that I apologize. 

Before becoming involved with this project I paid Vj's firm $25,000.00 to perform preliminary due diligence study of the project to include reported investments of the principals.  Attached in this email is a copy of the due diligence report as well as cancelled check for this payment.

 I will provide all that you request in a following email with support documentation.  All entities of which I am involved with, with the exception of the Nevada Regional Economic Development Investment Group Inc. a Nevada Corporation  ("REDIG"); are entities within the State of Wyoming.  I am making arrangements to port   REDIG from  Nevada to Wyoming because;  REDIG was first created (October 24th, 2011)  for application submittal as a USCIS EB5 Regional Center entity, annual fees were $125.  Comes now, the State over the last 5 years has increased this cost to around $800.    Wyoming charges a flat $50.00 per year. 

The company has three attorneys on staff, each and all will provide that which you request.    In passing if you do have a relationship with Vj Chandran and/or James Anzelone, please feel free to contact these folks, I believe they can provide additional insight as this company as well as my person.

Based on the above, we issued our LOI, with precisely the terms that were initially offered and accepted, assuming a refinance as repeatedly represented, all PRIOR to requesting ANY application fee.

And then on 1-6-17, the following Underwriting issues were reported to Gary Sparkman:

Ownership confusion. The materials report the following:

1)    La Jolla Cove Investors, Inc. purchased the Note from the original lender, Trustee First Fidelity Bank (original mortgage balance of $7 million).

2)    La Jolla Cove Investors, Inc. foreclosed/repossessed the property in 2014 and has placed the property for sale.

3)     After the foreclosure was decided in First Fidelity’s favor, the court appointed a receiver to sell the property in July 2014. By April 2015, a motion was filed to authorize a sale of the property.

4)     Emerald Falls Hotel & Resort LLLP is a Wyoming Domestic Limited Partnership that was organized to purchase the property.

5)     From title insurance page:

“Fee Simple”  

Title to said estate or interest in said land is effective the date hereof vested in:

La Jolla Cove Bullhead City, LLC a California; limited liability company. (Vested by virtue of Sherriff’s deed filed June 8, 2016, Book 2289 at Page 383 and Corrected Sherriff’s deed filed.)

 If the above is accurate, then La Jolla is the vested property owner.

Where is:

(1)   the purchase and sale agreement between La Jolla and Emerald Falls?

(2)   the down payment from the buyer, Emerald Falls Hotel & Resort LLLP

Ownership – key principals

The LOI was executed and returned along with the Exhibit C, which lists only Gary Sparkman as the key principal. Although percentage of ownership was not listed, as the only principal, it is assumed that Gary is the sole owner of 100% of the shares in all of the listed entities. Accordingly, we need the PFS of Gary (and every other principal listed on the Exhibit) along with the shares of the ownership, their bios, and their personal credit scores (actual or estimated).  

 On January 12, 2017, Gary Sparkman replied via email

Brian you are correct presently I do not own the property The Entity that owns the property is LJ CA. I have no interest in LJ CA other than the fact I guaranteed a loan on behalf of those folks that being said I do not mean to complicate the issue so there is no need for you to incur for their expenses by having legal give you an opinion because your opinion is correct thanks for the reply.

So, given all of the foregoing, there was no refinance deal to be had, regardless of Sterling Commercial Capital’s many months of effort.

And regarding this person, “John McCormick, Consultant/Member/Manager Emerald Falls Hotel & Resort”, I do not know him. Over the 4 months of intensive involvement, I do not recall ever talking with him. He is not listed anywhere on anything in our files, and so we never communicated via email with McCormick either. Accordingly, I cannot explain, nor respond to his false complaints nor understand his untruthful and/or bizarre claims, nor his position with regard to the company, the borrower nor the transaction. We will deal with McCormick at another time.