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1Petitioners do not explain how they arrived at this
figure; however, the buyer’s closing statement for the
Atherton properties shows interest of $10,722.60. The
credit is $130,402.48 apart from the interest.
Petitioners have substantiated to our satisfaction that they
borrowed $1.46 million from Pacific to purchase the 3 parcels of
land. However, petitioners have not established that they paid
$2,017,397.50, as they claim on brief.
When counsel for Mr. Assaad asked him at trial whether he
put any money into the project other than the loan amounts, Mr.
Assaad testified that “We put our money in there” but that he
could not “remember exactly”. There is also evidence that other
parties may have invested in the Atherton project. Indeed, at
trial, Mr. Assaad testified that the Atherton project’s general
contractor, Rick Trudell, and a friend of Mr. Assaad’s, Hayden
Coghan, each contributed $200,000 into the Atherton project.12
Mr. Assaad testified:
Q And then the $200,000 for deposit retained, paid
outside.
A We borrowed that from Rick Trudell.
Q Okay.
A Okay. Because he wanted to be like a partner in
the project.
Q Did you pay it or did he pay it?
12Mr. Assaad could not remember whether Mr. Trudell also got
a $200,000 line of credit to be put towards the Atherton
properties.
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