Ed Note: Below is another story about the WB Coyle TIC/Ellis Act disaster in North Beach. In light of the many longterm tenants evicted and the financial shenanigans underlying Coyle's scheme, this is a cautionary tale for those who have previously not understood the risks of purchasing TIC's created via the Ellis Act.
From Federal Bankruptcy Court documents and title searches, Dissolution Properties LLC (DP) is another one of William Bernard, WB Coyles, mastermind LLCs. In 2004 DP was a “trojan horse” brought forward to the walls of civilized society with the sole purpose of hiding assets and defrauding investors and lenders.
From its inception, DP would encumber millions in loans mainly with Trust Deed Investments (TDI). TDI is the hard money lender run by Phil Goldstein and operative Adam Kahn, who had previously loaned Coyle money on several other projects but had become skeptical of his investments.
TDI for the first time was able to see Coyles empire start to crumble and were able to get all their loans cross collateralized amongst the four Coyle/DP properties:
• 1427 Grant Street-housed the offices of the once busy with fraud and deceit, offices of Telegraph Hill Properties (THP), Coyles Real Estate Brokerage firm. The center of Coyles wicked empire, which terrorized the tenants of North Beach and investors/buyers alike. This property was not a DP property but Coyles own personal asset, which was part of TDI's cross collateralization program. The offices are housed illeglally according to SF DBI code. The first floor is the only commercial unit in the 3 units property, yet Coyle uses the 3rd floor as the main THP offices.
• 10 Reno Place- Coyles party palace, where he threw lavish parties for future homeowners/investors/buyers.
• 400-408 Union/1401-1405 Kearny-10+ unit rental building.
• 369A and 369 Green Street.
Cross collateralized means that any one default would result in a foreclosure of all four properties.
1427 Grant Street is the white ugly building which has recently been wired with more than 15 security cameras, these apparently to thwart process servers who continue try to serve Coyle with a multitude of outstanding lawsuits. It is a game Coyle and his attorneys play. Hide and seek with the process servers, not showing up at bankruptcy hearings, depositions, meetings to produce financial records, even scheduled teeth cleanings and haircuts. All these court ordered or basic hygiene agenda items, pushed off in delusional desperation to slow down the sinking of the ship and to stop the “30 day answer period” regarding any litigation.
Once you file a lawsuit, you have to “serve” the defendant. If the defendant hasn't been served, the clock doesn't start. So this litigation can go on for sometime. It has been reported that the Charitis Insurance Company, who is currently suing THP/ Coyle, tried to serve Coyle at his offices over 35 times with no results.
■ Knock knock...
■ Who's there?
■ Is Mr. Coyle there?
■ Who wants to know?
■ Process server...
■ Uhhhh, no, he went on a 30 day cruise and won't be back for 29 days....
A court order allowing the publication of the service was granted by the Judge in that case.
Coyle over the last year has been seen scurrying like a rat about North Beach to and from different sleeping areas, avoiding service. His favorite trick has been to “slime” out the back of his offices on Bannam Alley, directly behind 1427 Grant Street. It was here that Coyle was served on November 30th2011 after evading service for 6 months. Here is the video from “Majors Investigations” website showing Coyle after being served, with his arms full of approximately 9 lawsuits all served by Private Investigator, Jason Majors:
Just like Dudley Do-Right, Jason Majors, “always gets his man”....
There are just too many lawsuits for Coyle and his longtime accomplice/attorney Paul Utrecht to defend. Currently there are at least 5 lawsuits in which Coyle has been scurrying around to evade.
Back to DP....
On 10-27-04 Ivy Properties loaned Coyle $900,000. A couple, well into retirement hoping to live off a nice “nest egg”. (encumbered by Union/Kearny)
Shortly thereafter, over a three year period, TDI loaned Coyle/DP over 2.5 million dollars in several differerent loans. (cross collateralized) Franklin Mattei loaned Coyle/DP $300,000 (he did not record the loan, encumbered by 369A and 369 Green Street)
In February 2010 Barb Thompson, (mother of former realtor Erin Thompson who holds a court ordered restraining order against Coyle) loaned Coyle/DP another $500,000 (who took first position ahead of Mattei and recorded the loan on 369A and 369 Green Street). It is also purported that Coyle told Thompson “whatever you do, don't tell Mattei, he will go crazy”.
As you can see from the first loans, they started just prior to the apex of the real estate bubble, which according to the Case Schiller Index, occurred in the spring of 2006. Hence, Coyle piled on the debt into his lifeboat as the market tanked. “USS Coast Guard Cutter” TDI was more than willing to comply with the requests from the sinking “USS Coyle”.
In the summer of 2010, Coyle defaulted on the Ivy loan and thus began the demise of DP.
Shortly after defaulting on the Ivy loan, and in preparation for his obvious upcoming bankruptcy filing, Coyle started to shed assets out of the DP name.
In July 2010 Coyle transferred the assets at 400 Union/1401 Kearny and 10 Reno Place out of DP into two new LLCs. Kearny Union LLC and Reno Place LLC, this currently being investigated in Federal Bankruptcy Court.
In February 2011 former realtor Erin Thompson left THP. When she left, according to the Restraining Order filings at SF Superior Court and the only person who sell could anything at THP, she downloaded the entire THP server and files. Sources indicate that Coyle didn't even give her or any of the other homeowners/investors/employees any of the financial records, so she made sure she got them before she left.
Court Documents filed by Coyle mention the server contained his “trade secrets, proprietary business plans, models and formulas, client (victim) lists, bank statements, hundreds of tax returns....” and so on.
(Someone do the world a favor and throw this thing in the trash! So apparently it houses all the garbage that didn't work for him, which is why he is being sued by countless parties and in numerous bankruptcies...if you are reading this and Coyle did your tax returns, you are in big trouble...
Tax Trouble LLC, that is... yes, that is the name of his tax return service....)
With the departure of Erin Thompson and loss of revenue from her many sales, Coyle predictably defaulted on his $500,000 loan to Barb Thompson. Shortly thereafter Coyle defaulted on all of his loans with TDI. These defaults include properties not related to DP, including Turbulence LLC as well as Hades LLC. (all three currently in Federal Bankruptcy Court)
Barb Thompson was set to foreclose on the loan and in a last ditch effort, Coyle sent a threatening email to one of Barb Thompsons attorneys:
“We could postpone for a month and see if a better option comes to the table. one more month. what harm comes from one more month? the benefit is that litigation may be avoided and your client gets an interest payment. i may be willing to include in the deal, to postpone the launching of (a website) where i will share with the world the truth about erin thompson....let me know what you decide. as for now i am set to file bankruptcy for dissolution properties and the web site launch is a key stroke away...”
Barb Thompson foreclosed and DP/Coyle declared BK the following day on 10-18-2011. Coyle hired former Gary Rossi bankruptcy attorney Joel Belway, to clean up the bankruptcy messes numbering only three at this point. During several preliminary bankruptcy hearings Coyle, the perpetrator, refused to show up and face his victims, not only fearing the wrath of these victims, but also the service of a multitude of lawsuits, which ended up being served anyway, by PI Jason Majors, AKA “Dudley Do-Right” on November 30th (see above).
My mother always told me, “sonny boy, take ur medicine like a man...”
With the filing of the DP bankruptcy, Franklin Mattei now found out that he was in a second position behind Barb Thompson. The story is, he heard the news and almost jumped out of his NYC building, but instead started a rant of curse words so loud he could be heard at Laguardia Airport 7 miles away. “*&()%#(*^^())*&^%$^@@)*^^*00”
It went on for a full day. It took three days to regain his voice and composure. After doing so, Mattei finally “lawyered up” with at least 3 attorneys at different lawfirms to unscrew the messes that Coyle had gotten him into. All of Matteis assets are either tied up in the listed bankruptcies or in other Coyle related litigation.
After the DP bankruptcy, Barb Thompson sued Coyle for the $500,000+ attorneys fees + interest.
When the case hit the judge’s bench, Coyle was given until May 1, 2012 to refinance the debt on the 369 and 369A Green Street properties. The judge also ruled that Coyle had to make his required interest payments to Barb Thompson, which was approximately $2500 each month. Where was Coyle going to get this money from?????
Coyle and both mother and daughter Barb and Erin owned a property at 817 Lombard Street under the name of “Possession LLC”. Coyle, like in most of his LLC partnerships, was the managing member of the LLC. After a remodel of 817 several years earlier and unable to find buyers, Coyle got a renter in the unit for approx $3000 per month. The renter paid Coyle and Coyle paid the HOA. 805,807,815 and 817 Lombard is a nice looking 4 unit building caddie corner to Cafe Sappore at Lombard and Taylor. Just a few doors down from 817 Lombard is another Coyle related building currently in litigation, 847-851 Lombard. (lets save this unbelievable story for the next author).
805-817 Lombard is an HOA and it has one blanket loan on the property from Citibank. The four owners pay the HOA and then the HOA pays the bank.
Guess where this is going?
Coyle, in order to pay Barb the court ordered $2500 interest payment, decided he would take the rent from the tenant in 817 Lombard and use that money to pay Barb. He then sent an email to the tenant in 817 and told him if he didn't continue to make the payments directly to Coyle, he would have his attorney Paul Utrecht sue him. After 5 months of Coyle pocketing the rents, the HOA ended up buying 817 from Possession LLC at a 100,000+ loss to the Thompsons (most likely including the monies Coyle took in rents)
Want to get involved in a TIC with THP?
Rapidly approaching the 5-1-12 date, Coyle was unable to find financing for the Green Street properties. The judge refused to grant another extension to Coyle and ordered the auction of 369 and 369 A Green Street on the Courthouse steps.
What happened next is about the most absurd thing you could ever imagine, or could you? It is WB Coyle and his attorneys, right????
The morning of the auction, Coyle claimed he had the financing. Coyle’s attorneys Joel Belway and Paul Utrecht, communicated with Thompsons attorneys and everyone thought there was a deal. However, the funds did not come through and the auction was postponed for 24 hours until 2 pm on 5-2-12. Once again that morning promises were made, and according to court documents, Coyle’s attorney Joel Belway saw Thompsons attorney David Wiseblood while out at lunch. Small talk was made and Wiseblood thought all was in order.
Then at 1:49PM or 11 minutes before the auction, the unfathomable happened....
Coyle and his attorney Joel Belway filed another bankruptcy in the same name of Dissolution Properties LLC. That’s right folks, in order to stymie the auction and cause further damage to Thompson, Coyle and Belway had been planning the ambush all morning long. A fraudulent abuse of the federal bankruptcy laws and the court system by an licensed real estate broker and a licensed 30 year bankruptcy attorney. Joel Belway and WB Coyle signed the fraudulent “second filing”.
The auctioneer had no choice, “369 and 369A Green Street have been postponed due to bankruptcy, next up”
The auctioneer had no idea what was going on, only that a bankruptcy had been filed.
Paul Utrecht, is purportedly owed at least a half a million dollars from Coyle and had his dirty mitts in the misdeeds as well, trying to convince Thompsons attorney all was on the “up and up”.
The only thing on the “up and up” are Coyle’s legal bills....and lawsuits naming Coyle as the defendant....
Thompsons attorney responded with a barrage of motions calling Belway out on his misdeeds. Proper etiquette would preclude this in normal peer working relationships, however this egregious behavior by Belway and Coyle would not go unpunished. With the Thompson motions filed, Belway responded with a request for an immediate dismissal of the case, with the hopes of washing the misdeeds under the carpet.
Not so fast said the judge....
It now appears that Coyle may have screwed himself and allowed new claims to be filed against DP. The HOA at Green Street never received any of the notifications of the DP bankruptcy, because Coyle was the one receiving the claims on behalf of the HOA. Do you think Coyle called up the HOA and asked them if they had any claims to file against Coyle/DP?
They have the chance now....Anyone else not notified of the DP bankruptcy? Line up.
However, if Coyle doesn’t come up with financing by 2pm on Friday 5-11-12 its going to get ugly for everyone except Barb Thompson....