- 61 -
On August 1, 1986, Mr. Yamada spoke with Mr. Kersting by
telephone and requested a detailed accounting of the amounts that
the Thompsons had paid to Bauspar and Citizen's Financial, as
well as a status report on the promissory notes executed by the
Thompsons in favor of Bauspar, Signet Financial, Inc., and
Paragon. Following the telephone call from Mr. Yamada,
Mr. Kersting called Mr. Thompson. During this conversation,
Mr. Thompson reminded Mr. Kersting that the Wahiawa property had
been sold. Mr. Kersting stated that he would provide Mr. Chanin
with copies of the documents relating to Mr. Thompson's
participation in the Bauspar program as soon as Mr. Thompson
provided Mr. Kersting with a written authorization to release
them.
By letter dated August 23, 1986, Mr. Kersting notified the
Thompsons that he had turned their file over to Mr. Moseley for
collection and that he sensed that litigation was imminent.
Mr. Kersting's letter states in pertinent part:
Since the odds, however, are in favor of imminent
litigation I consider it to be my obligation to point
out to you the consequences:
The day after you have allowed your attorneys to file
suit I will declare all notes which you have executed
to our companies in default and begin collection
proceedings. We will make an effort to collect from
you not only the $11,844.00 of interest on promissory
notes of which we have sent you billings several times
we will also file suit to collect the principal of all
notes which we hold. The aggregate sum is well in
excess of $250,000.00, as you know.
I will also ask you to return to us the $40,000.00 we
advanced to you after the First Savings debacle. We
will start collection proceedings on the $75,000.00
Page: Previous 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 NextLast modified: May 25, 2011