Investor Comments

These are just a few of the comments we have received from investors since we started the blog more than a month ago. Most are not plaintiffs in the civil action.

• Thanks for informing me of what has happened regarding PCF. I have lost 6 figure dollars due to the scam artist's PCF. I have just received "Notice of Chapter 11 bankrupcy by PCF" from the Court, which says there will be a meeting of creditors on May 2, 2013 in a Santa Ana building.  I do not like this Chapter 11 thing as this scam artist will drag the whole process while enriching this artist and his underlings by management fees  etc.  I think the victims of PCF try to get Chapter 7 of PCF liquidation in some way. March 28, 2013 3:35 PM

• Thank you for your work on this matter. I too was refused contact information on fellow investors by pcf. March 27, 2013 5:18 PM

• I invested in Land and Cattle, Summerwinds (crooked deal lost $50,000),money markets and one more which I believe is something else. If you gave me a list I would remember. It was a terrible year to say the least. Maybe this is why I can't remember anything - going into shock from all of the crooks that are in the world. Guess just naive that people are honest. March 27, 2013 10:43 PM

• Re: CalComm Capital - Definitely looks like he is setting up the same scam. March 26, 2013 8:01 PM

• My wife and I are pool investors and were not aware that Point Center had declared bankruptcy. Where can we find out about our investments? March 26, 2013 4:34 PM

• I have been receiving your emails and have been in touch in the past with Lloyd Charton.  I just received a request [from Point Center] for funds for the {redacted} property.  I am not sending them a dime ever.  I wonder how we as investors who are sick of this whole mess can discuss this with other investors in this property.  It would seem to me that a lot of investors in this property would like to discuss what is going on as a group.  Dan Harkey has refused to give contact information for the other investors in this property.  Can we get something started through this group, so that we can communicate with other investors in our investments.  Seems as though you have a good forum started here, but it has not really caught on yet. March 22, 2013 1:06 PM

• I think he [Harkey] is cashing out and doing something with all that money!! March 26, 2013 9:44 AM

• I also want justice to be done.  Harkey really hurt a lot of people badly with his greed and self interests.  It's weird to me.  He said he started as a school teacher.  A teacher turned crook.  Might be a movie theme. March 25, 2013 9:16 PM

• My wife and I invested $200,000 into Dan Harkey's pyramid scheme. My {redacted} also has been duped by this man.  Please add my name and email address to your list and anything I can possibly do to help our cause please let me know. March 25, 2013 3:08 PM

• Thank you for expending time and effort on behalf of the investors.  I do not take this work for granted. March 25, 2013 3:08 PM

• Keep up the good work to keep all investors aware of PCF's behavior. DH relies on investors not knowing what is going on so they cannot act collectively. It will be interesting to get DOJ's take on the PCF "restructuring" Chapter 11 program to pay back investors- DOJ representatives are increasingly aware of the real motives behind the Chapter 11 filing due to your and other investor's efforts to provide information relative to this case. March 25, 2013 2:49 PM

• Thank you for updating me and do keep me on the list. I have 350K on 6 TD loans at stake. March 25, 2013 2:49 PM

• Just what do you hope to accomplish out of all this. There is no money to be had. March 25, 2013 2:41PM

• Thank you so very much of taking the time to explain this travesty. I hope that the court case will reveal the total truth and that all of us investors will some day recoup a portion (albeit small) of our investments in this Ponzi Scheme. Please keep me and the other investors abreast of the latest developments and what can be done to right this ship. March 25, 2013 2:37PM

• I do not want to be left out in the cold due to the misappropriation of funds and misleading action of Dan Harkey and PCF. March 25, 2013 1:24AM

• Many thanks for your update. March 25, 12:59 AM

• Is it late to join the lawsuit? March 25, 2013 12:16 AM

• Myself and family members are PCF investors. Together, we invested a very substantial amount with Harkey & Co.  Obviously, I don't need to describe the crimes Harkey & Co. have, and continue to commit.  It's like he fired a stealth torpedo, and "broadsided" many families and individuals....who, as a result, have been critically hurt financially, if not ruined by his premeditated and methodical designs. I despise criminals of this nature, and want to see Harkey brought to justice, pay back every penny he has stolen, and go to jail. As far as I'm concerned, he is a small version of Bernie Madoff. This man Harkey, his wife, and Gwen Melanson must be stopped and put where they belong, in prison where they can contemplate their crimes. March 24, 2013 11:23PM

• Thanks for the update, and the links you provided.  I was not aware that Point Center had actually filed for bankruptcy. March 24, 2013 8:33PM

• Congratulations!   We are so happy for all the plaintiffs,and pray that justice will be served, yahoo! March 24, 2013 5:42 PM

• I am an investor who invested $150K and lost most of it.  How can I be involved in this lawsuit? MArch 24, 2013 4:38PM

• As you may know, we have already received the pittance that PCF received for the sale of our invested property.  However, I am still interested in what happens to these people.  It is still difficult for me to understand how someone who is supposed to be in the investment business could be so poor at their due diligence before putting our money into a company that turns around a few days later and needs to borrow more funds. March 21, 2013 9:39 PM

• I am an investor with PCF. I want Diane Harkey out of office, and both Harkey's exposed for who they truly are. March 21, 2013 3:07 AM

• Through lies and deception, the  Harkey's have been able to maintain their lifestyle, while many of us have lost everything. March 21, 2013 1:29 AM

• My interest in this is anything that will help me recover the terrible losses I have suffered. March 20, 2013 10:41PM

• There will be a day when these two thieves will be found guilty and sent away. March 20, 2013 10:08 PM

• I’ve lost $100,000.00 with Harkey and would help but am now living in {redacted} far away from the fraud and deceit of the Harkey’s.  Know that I am with all of you and that I support your every effort.  Keep up all you do.  I could sure use the money I lost as I am 73 years old and still working to make ends meet. March 17, 2013 4:04 PM

• It is appalling they both are continuing as they are after what they have done to so many. March 15, 2013 7:54 PM

• I have about $300,000 with him spread out in {redacted}. I have conversations with Dan who said he was going through a "rough patch" but that he has been thru this before and can handle it. And now, I wonder? He never mentioned the bankruptcy. He seemed to be a nice guy. I am VERY disappointed with him and my poor judgment. March 15, 2013 3:59 PM

• What is going on? Has Dan gone bankrupt? Is he he dishonest? I have several hundred thousands of dollars with him. Is that money gone? March 15, 2013 2:59 PM

• With all the lawsuits and heavy losses by the Harkey's and point center, will there be anything left to recover when all is said and done. The Harkey's have probably stashed and hidden millions in secret accounts God only knows where. Seems like the crooks always win. March 2, 2013 10:17 AM

• I am one of the investors and was not aware of the Bankruptcy... March 1, 2013 4:28 PM

• Perhaps the walls are caving in on these screwballs..... March 1, 2013 11:47 AM

Steve Cash Opines

STOP THE HARKEY’S NOW

I URGE YOU TO WRITE THE STATE ATTORNEY GENERAL’S OFFICE SENDING SAME TO THE GOVERNOR AND THE NEWS MEDIA EVERYWHERE ESPECIALLY 60 MINUTES NEWS ATTENTION: STEVE KROFT AFTER READING THIS. LET THEM KNOW YOU HAVE BEEN VIOLATED. THE MORE COMPLAINTS, THE MORE PRIORITY. PLEASE PASS THIS ON TO OTHERS.

Many of you have been receiving communications from Dan Harkey about me. Until now, I had no way of responding. The same tactics being used against me have been used on other investors like Jerry Fisher. 

I have investigated Dan Harkey since January of 2008. In the thousands of hours I have spent I’ve discovered he has been intentionally dishonest. He states in his DVD sales presentation there would be no management fees. It even says this on a sign on the back wall at his seminar, “NO MANAGEMENT FEES.” Then he plays stupid or thinks I’m stupid and asks not only for a management fee, but an increase in that fee. This is called misrepresentation, fraud and theft. Through the use of false promises and representations, Dan Harkey took in upwards of $ 1 Billion dollars from investors all of who trusted him including myself. I don’t want any of you to think I’m here to slander Dan Harkey. I’m not! I’ve never had that intention at all in any way. I’ve only wanted honesty from our transactions.

In 2004, Harkey told me at his office in San Juan Capistrano it was nearly impossible for me to loose my money stating we would have to have a nuclear bomb attack for me to loose my money, that it was well insulated by the loan to value ratios. But I understand the LTV’s are false. He also said 3-5% of my portfolio would go into foreclosure, but I would get my money back within 15-18 months. Harkey advised me in person and in writing to diversify my money, my life savings, in order to lower my risk. I followed his advice and instead, 100% of my portfolio, which consists of 6 fraction[al] deed investments, has gone in the hole and I haven’t gotten back my money as he represented I would. It’s been far past the 15-18 months as well.  

Harkey told me of the extensive measures he took to select good borrowers, that he didn’t do 2^nd trust deeds anymore because of peoples money he lost before. But I found all that to be a giant lie. In my view, this man is mentally sick. A pathological liar who stalks his victims praying on the elderly telling them anything to get their money.  Did any of you realize this crime is national? I found in Deer Canyon Preserve in Utah, the property was fraudulently conveyed and there was no evidence I owed Harkey any money as he claimed. He opend the escrow for this property originally with First American Title and Escrow in Salt Lake.  But to close the escrow, First American wanted proof of a Loan Policy, clear title for deceased investor Saul Izam, whose partner, Phyllis Morgan, needed to provide an affidavit and death certificate, a 100% vote, as required by Utah state law, [showing] all the investors wanted to sell, and a list of other requirements.

But instead, Harkey moved the escrow, which is not unheard of, to attorney John Hanlon who buffaloed the deal under the carpet breaking Utah law and wrongfully transacting the sale. Hanlon was dishonest with me and I believe he conspired for monetary gain [on] the sale of the property. I have confirmed from separate attorneys in the area that real estate ponzi schemes are abundant in this area of Utah. Though I wrote the State Bar and the Department of Insurance, both referred the matter to civil litigation(s). Both departments refused to investigate and evaluate the transaction.

Harkey quotes to you from my numerous letters such as the one sent to President Obama. But have any of you asked how Harkey got hold of my letter to the President and why it’s in his possession? How is it Harkey’s business to have this? I wrote Pat Bates, a Supervisor in Orange County. But instead she felt more inclined to give my communications to Dan Harkey. Her office is located at 333 West Santa Ana Blvd., Santa Ana, CA 92701. Don’t you think she should have done the right thing and tried to help or report it to law enforcement instead of aiding the Harkey’s? Do you think she should be working for the people?

To my fellow Estancia and Andalucia investors. Did you know a sale occurred at Estancia in 2008 between the developer and someone named Pappas? I never saw any money from that sale and Harkey never told me it took place. Even when we were in escrow for properties in the beginning, Gwen Melanson wrote to First American Title and Escrow claiming I was part of the LLC in order to obtain money that didn’t belong to Point Center. Did you know I signed the paperwork for the current sales long ago? Are you aware in no way have I ever asked at any time for my money to come from any of you? That’s right! I’ve never asked for it to come from investor proceeds. It is to come from Dan Harkey himself. 

Did you know in 2008, I recommend[ed] a Commercial Coldwell Banker agent to market Andalucia? On 1-30-08, I spoke to Coldwell Banker Commercial agent Michael Lynch, (760) 778-3430 out of their Palm Springs office.  He knew of the property, its history and has been with CB since the 1980’s. He estimates the value at $12-15,000,000 and sellable in a six month period. He also stated the city won’t allow residential to go in. Commercial only! Harkey said he was trying to make a deal with the neighbor next door to expand the residential park. I alerted Dan Harkey via certifed letter and he willfully acted with negligence. Senior Managing Director Mike McClean of Prudential Commercial Realty drove by this property telling me Dan Harkey had no For Sale sign up nor was it listed in the Multiple Listing Services anywhere, not even on Harkey’s own website. Why would anyone trust Dan Harkey?  

I’ve asked for proof of fair market values in addition to other information since 2009 for my investments and I’ve asked for it for the current sales in Estancia and Andalucia. Harkey still has not provided this. His accomplice Jeffrey Benice, who hides behind the title of attorney specializes in criminal law if you check his website. In my survey of law firms, it is rare for an attorney to specialize in criminal and civil law. Now Jeff Benice is representing investors in a law suit Harkey originally filed through a Los Angeles law firm of whom refused to respond to me and First American's attorney. This law suit is against First American Title and Escrow for the Mi Arbolito project in Balboa Park, San Diego, CA. This would be under title law and I can tell you an attorney can not effective and specialize in so many complex areas of law. Purportedly Benice has received around $3,000,000 in legal fees of our money.  These two would like all of you to believe everything is a result of the economy. But this has no relevancy to the situation. How do I know? I have a paper trail showing otherwise that has been presented to Harkey and Benice and Harkey sends what he sends to you because I am a threat to their con scheme.

Did you know Harkey has 3 CCW, (Carrying A Concealed Weapon) licenses for guns? If he was all that honest and a nice guy like he touts in his DVD, why would he need those? Dan Harkey could have said to me in 2008 in our March meeting something to the effect of ”I’m sorry you’re unhappy. I’m returning your principal and interest and I hope you’ll consider coming back to us in the future. We’d like to have you.” I would have been fine with that. But to his own detriment, Harkey chooses to create all this stress in his life and in others. He could have returned peoples money and still walked out the winner. But he didn’t think of that. In my business experience, that is what has happened with honest, good people. Harkey has had repeatedly many opportunities to act in good faith to me. But with the scourge of servants to the people coming to Diane Harkey’s side, it’s just a testimonial to what I believe is criminal conduct within the Orange County, CA government. Enough is enough!

Anyone like Harkey, Benice and their employees who get up every morning to destroy peoples lives and finances are not just inhuman, they are monsters and these people and their employees have to be stopped. Even Dan Harkey’s daughter Jaclyn works along side of him willingly. She knows the extent of the situation and fully participates to aid her father in what I believe are crimes against us all. I believe these people all know what they are doing. 

But what is worse, is the very government I have been writing to for years have done nothing. Last week I discovered senior law enforcement officials like District Attorney Tony Rackauckas and Sheriff Sandra Hutchens actually support Diane Harkey in her political campaign. I have a giant problem with this because I believe this is a significant conflict of interest, not only for myself but for all of the other investors who were victimized by the Harkeys.

I wrote to Rackauckas in 2008. He wrote back, letter enclosed, stating he wasn’t taking a position on the matter. How can this be true when he acts as an honorary chair for a Diane Harkey political fund raiser? I filed a complaint with the sheriff’s department in 2009. Yet, Sheriff Hutchens also appears to supports Diane Harkey as an honorary chair in her current political quest for Board of Equalization.  These people might say there is no proof Diane Harkey is participating in a crime. But if those responsible for law enforcement refuse to investigate a crime and later support the very people committing it, isn't it reasonable to assume they have conspired. This is just why you must act after reading this. 

Out of morality and a duty to protect we, the people, these two and the others shown on Diane Harkey’s 'Honorary Chairs' list have no business politically supporting someone who is under scrutiny for enriching herself and her campaign at the expense of so many victims of her husband.  If it were me I would arrest these individuals for criminal support, remove them from their offices, and hold them accountable financially. 

Like everyone else, they have done nothing. It’s clear to see why. They are politicians building political influence at the expense of their constituents along with other governmental bureaucrats who betray us. all in treason. These people operate with impunity and are free to destroy our country and our lives, betraying the very foundations we and others before us fought for to make the United States a fair and principled democracy. All these people in government have lost their way and do us wrong. As well, in my many letters to Senator Dianne Feinstein, I had to conclude her to be dishonest. She lied to me repeatedly and doesn’t even care for the senior citizens that are the victims of Dan Harkey, though she is a senior citizen herself.

Did any of you know I’m the one who got the investigations open with the Securites and Exchange Commission only to later be lied to repeatedly by investigator Carol Lally and other employees? Did you  know I got the file opened with the FBI? Unfortunately investigator Nora Quintana of the Santa Ana, CA office demonstrated not only was she a new comer, but lacks necessary skills for this level of crime. These people were dishonest to me.

The conflict here is Dan Harkey. A con man who is so dishonest aided and abetted by his daughter Jaclyn, his attorneys Jeff Benice, Vernon Alan Bergfeld, the employees of Point Center Financial and now as of last week, District Attorney Tony Rackaukas and Sheriff Sandra Hitchenson of Orange County. In 2008 and 2009, I filed complaints with both the DA’s office and the Sherriff’s office. Toney Rackaukas stated in his letter to me I’ve posted here he wasn’t taking a position on the matter. The Sheriff’s office ran me in circles, refused at first to allow me to file a complaint and finally after a year I drove all the way to them to do so only to have it covered up and closed. Now I can see why. By supporting Diane Harkey, both these individuals have created a conflict of, by and for the people which mandates their arrest and expulsion from office. These are serious charges and they participate in serious crimes. They are suppose to take a neutral position as public servants. But the fact they both and other government individuals support Diane Harkey as she is named in our law suit regardless and because she is married to Dan Harkey, presents itself in a light that violates the basic of basic principals.

What can you do? Write the State Attorney General’s office and Steve Kroft of 60 Minutes. Write Fox News to expose all these people. It is outrageous we have been treated like this.

I can tell you in the thousands of hours I have spent investigating this since January 2008, Dan Harkey is a dishonest above and beyond any defense he could possibly make. He strikes me as an indivigual who is mentally ill in need of treatment because he can’t even recognize the benefit I provide him as I have many times before, in returning my principal and interest.

YOU MUST ACT NOW! STOP  DIANE HARKEY FROM BEING ELECTED. STOP THIS FAMILY OF VIOLATORS, THEIR EMPLOYEES AND ATTORNEYS FROM HURTING OTHER PEOPLE.

PLEASE CALL AND WRITE:

Office of the Attorney General

PO BOX 944255, Sacramento, CA 

94244-2550 

1-800-952-5225

60 Minutes News                        

c/o Steve Kroft & Alison Saltstein (assistant)

524 West 57^th Street

New York, N.Y. 10019

1-212-975-4321 ask to be transferred to his office          

Dan Harkey resides at:

76 Ritz Cove Dr.

Dana Point, CA 92629

Harkey’s former in house attorney who helped for years:

Vernon Alan Bergfeld

19271 Jasper Hill Rd.

Trabuco Canyon, CA  92679

949-709-8567

                 

Destroyed Our Lives

October 17, 2012


It was approximately February, 2006 when we went to the offices of Point Center Financial. We had an appointment with one of the staff, Kate Hurley, to discuss a potential investment. While she was showing us around we ran into Dan Harkey in the hallway. We were not introduced.  Afterwards, Kate told us that he had never lost money for any of his clients because even if the investment lost money, he made up the difference out of his own pocket. And I believe she was told to say that because we think she was a very honest person.

Our investments include The Preserve ($50,000 by my husband and $50,000 by myself), Georgetown ($50,000 by my husband) and Palm Springs ($50,000 by my husband $50,000 by myself). Later Gwen Melanson called to ask me to invest another $50,000 in The Preserve, telling me it was a good return on my money and should close in another month. The total is $300,000.

We only met Dan Harkey once at a bar-b-que his company gave for the investors. He seemed very pleasant.

An email was sent to each investor from Lloyd Charton saying that the properties were worthless.

We’ve been informed since investing that the value of the Preserve has gone down from the $38 million to $16 million; Georgetown was supposed to be worth $16 million and we may get $2-3 million for it. Palm Springs was a loan of $19 million and we may not getting anything back, unfortunately, the way it’s going.

After Lloyd Charton’s email exposure to the value of the property Dan Harkey called me about the investment at Georgetown that he had overpaid for it and also that someone was following him in his car whenever he left his office to his home. Why he called me, I don’t know. I’ve only met him once.

To my knowledge he took tremendous fees and commissions on the sale of the property and that’s where he made his money.

At my age the investments never should have been sold to me. I’m now 83 years old and have Parkinson’s Disease. I feel I was taken full advantage of. This investment has completely destroyed our lives.

   
Updated on April 1, 2013. Their identities were withheld at their request.