THE SUN GROVE RESORT VILLAGE PONZI SCAM

THE AREI/OAKDALE HEIGHTS PONZI TRIAL

JAMES KOENIG - ON TRIAL
AREI/OAKDALE HEIGHTS PONZI
MASTER MIND

California’s largest PONZI SCAM, AREI/OAKDALE HEIGHTS, went to trial on 02/06/13. The mastermind, James Koenig (picture 1), is charged with 42 counts of criminal fraud. James Koenig refused the plea-agreement and elected to go to trial.  This Ponzi scam defrauded 2,000 investors of $250 million. They were promised huge returns, tax dodging benefits, and a “No-Risk” real-estate-secured with 24 senior living facilities. The other investment brokers involved in this Ponzi scam cut deals. Jeffery Guidi (picture 2) plead guilty, became a witness for the state, and paid a nearly $300,000 back to investors. Gary Armitage (picture 3) took a plea agreement for ten years in jail which avoided the trial and a possible longer prison sentence. The James Koenig’s Trial is scheduled to last three months until April 2013. James Koenig never disclosed to his investors that he had spent 2 ½ years in prison for his former gold scam in the 80’s.

JEFFERY GUIDI
AREI/OAKDALE HEIGHTS PONZI
STATE WITNESS - JAIL TIME WAIVED

GARY ARMITAGE
AREI/OAKDALE HEIGHTS PONZI
TOOK 10-YEAR PLEA DEAL

ASSET & REAL ESTATE INVESTMENT (AREI) bought the 24 senior living facilities and OAKDALE HEIGHTS was the management company that managed the properties. Sun Grove Resort Village (SGRV) is one of the 24 senior living properties that are involved in the AREI/OAKDALE HEIGHTS Ponzi trial. James Koenig owned Oakdale Heights Management Company that ran many of the senior living facilities and SGRV. James Koenig drained all the properties’ operating capital and ran the properties into the ground.  The 20 SGRV owners bought the property for $4.1 million in 2006 as tenants-in-common. They were promised a 1031 Tax Shelter, an 8% to 12% annual return, and doubling their investment when the property was sold in the future. The Ponzi Scam collapsed in 2007 and the investors received the SGRV deeded ownership in May, 2008. They asked for and received my assistance in getting my former employer Bank of America to rewrite SGRV’s four month past due loan which saved SGRV from foreclosure.

The SGRV owners decided to keep Scott Green as the Executive Director without doing any background checks on him. The SGRV owners hired Seniority Inc. to manage their senior living facility.  Seniority, Inc. hired Scott Green to be their employee and to manage SGRV. Seniority, Inc., a subsidiary of American Baptist Homes of the West (ABHOW), failed to do any background checks that would have discovered Green’s criminal record of defrauding seniors since 1999. Scott Green abused and defrauded Seniors at SGRV for over seven years.

SCOTT GREEN
FORMER MANAGER OF
SUN GROVE RESORT VILLAGE
2005 MEDICARE FRAUD FELON

Some of the SGRV Investor/Owners that lost money were: George Grandemanche, 66-year old retired school principle, lost $150,000, Linda Jones lost over $250,000, and Kathy Adams, 66-year old beauty salon owner, lost $600,000. The 20 SGRV Investors lost all their money since the property had no equity and was in terrible condition. The SGRV owners operated SGRV on a shoestring which allowed the property to deteriorate to being dangerous. They allowed Scott Green (picture 4) to break the law in obtaining new residents, hiring illegal alien workers, and raising capital in order to keep the senior living facility in operation until it could be sold. The SGRV Investor/Owners that became involved in SGRV’s daily operations are: Kathryn Martin, Leonard Matiniak, George and Jeanne Emmett, and Melchoir Lumetta.

KARL NUNLEY
PRESENT MANAGER
SUN GROVE RESORT VILLAGE
SCOTT GREEN'S ASSISTANT

The SGRV Owners’ lack of ethics and their desperation to recoup their losses gave Scott Green the opportunity to continue to defrauded and abuse seniors at SGRV. Scott Green was convicted in 2005 for Medicare Fraud. Scott Green was terminated from SGRV on 08/28/12 and the SGRV Owners are presently investigating Scott Green for embezzlement. The SGRV Owners replaced Scott Green with his assistant Karl Nunley (picture 5) who continues all the illegal activities at SGRV.

SUN GROVE RESORT VILLAGE
10134 W. MOHAWK LN.
PEORIA, AZ 85382

The 28-year old, 86-unit, 86,541 square foot SGRV (picture 6) senior living facility has been listed for sale several times by US Preferred Realty for $4,574,734.00. This property never should be sold because it is a hazard to the Public. The SGRV property should be destroyed because of the dangerous conditions of the property and because the property is full of toxic mold.

LIST OF SGRV INVESTOR/OWNERS

Verified on Public Documents

1.  Kathleen A. Adams

      Healdsburg, CA

2.  Thaddeus J. Drzazgowski 

     Deceased 07/14/11

3.  Marilyn J. Drzazgowski

     Jericho, New York

4.  George Emmett – Manager

5.  Jeanne Emmett – Manager

      Pleasanton, CA

6.  George Grandemange – Managing Member

      Marlin, CA

7.  James S. Hawton

8.  Beverly A Hawton

      Napa, CA

9.     Carole Hebertson

10.   Wally Hebertson

        Deceased 04/28/12

        Sun City, AZ

11.  Charles Edward Johnson

        Contra Costa, CA

12.  Linda Jones

        Fremont, CA

13.  Melchoir J. Lumetta – Manager

        Bend, OR

14.  William Martin

15.  Kathryn Martin – Manager

        Concord, CA

16.  Leonard J. Chris Martiniak – Manager

17.  Sarah M. Martiniak

        Berkeley, CA

18.  Michael McClenahan

        San Mateo, CA

19.  Alfred D. Nannini

        Windsor, CA

20.  Frances E. Pearson

        Marlin, CA

THE RECORD SEARCHLIGHT OF REDDING – 02/06/13

 “Redding man’s Ponzi scheme trial finally under way”