Sunday, October 22, 2006

CEO's Mom Blames Employees for Kara's Collapse

Have at it.

snip...

[His mother agreed, saying while Zuhdi Karagjozi was very hands-on at construction sites, he didn't pay enough attention to other operations of the company.

"One person can only do so much, and unfortunately a lot of people they hired weren't doing what they should have," Rose Karagjozi said. "They were getting paid high salaries and sitting on their rear ends."

When the housing market turned sour, Zuhdi Karagjozi had trouble making tough choices, she said. He waited until the last minute to cut staff, laying off 110 people two days before his company filed for Chapter 11. He tried to negotiate with banks to keep the company afloat, but refused their demands to relinquish control, she said. ]

Full article...

55 Comments:

Anonymous Anonymous said...

What a pack of outright lies. "One man can only do so much", eh? Well, who was that man? It sure wasn't Zudi. His mother can point fingers and assess blame all she likes, as if she has any clue. Zudi stopped being "hands-on" years ago, in fact a large number of employees had never met or even spoken to the man and that is fact. His mommy mentions how he waited until the very last minute to lay off staff, yet she doesn't mention how he allowed them to keep working for three weeks full well knowing he was not going to pay them. Then he had his hatchet-woman do the dirty work for him while he hid from everyone.

Zudi's family will do anything to keep the Zudi myth alive, but the evidence is right there for the world to see. $300 million dollars of debt, a mile-long list of creditors including loyal longtime staff he screwed out of a ton of money, unfinished projects all over the state just sitting there. He failed miserably, Rosey can spin it any way she wants but that's the bottom line. Her son failed and now it's time for him to face the music and take the blame. He was the one posing for pictures and wasting time and money at stupid fundraising nonsense that had zero to do with fixing what was wrong with his business.

The people she blames for "sitting on their hands" had no other option, you cannot build anything if the subs will not show up due to not being paid. Zudi could never grasp that concept, to him, not paying people was standard practice. In fact, he basically said as much during the company meeting in early 2005. He was told this was an unsustainable approach to business but unless it came from his family or his cronies, he refused to listen. Employees warned him and brought the ridiculous waste to his attention numerous times but he couldn't be bothered to worry about that kind of thing, he had radio interviews to do.

Right now, the only staff he has left consists of family, his chums, and a handful of people who he has promised to reimburse in full even though he has no idea whther he even can. As soon as he runs dry again, they will all flee and leave him to turn out the lights himself. He deserves zero sympathy for his self-made plight. His slick pitches and his charisma aren't going to be enough this time around. The vultures are circling and soon poor Zudi will not even have a pot to piss in, much like his employees had to endure during the last, pathetic, dying days of his fraud of a company.

Sunday, October 22, 2006 1:03:00 PM  
Anonymous scprofessor said...

The ego driven Zudi is not unique. During the '79-'83 and '90-'94 downturns I had the opportunity to be connected with a few similar bankruptcies where company owners ran out of money and B.S. at the same time. Of course business failures were never their fault. To admit that would be an ego crushing event.

The real question in the Bankruptcy proceeding is whether the Judge has the insight to figure out that all the post-petition borrowing is going to accomplish is the continued employment of his "family, his chums, and a handful of people who he has promised to reimburse in full even though he has no idea whther he even can." My sense is not a single shovel of dirt will be turned nor a single nail driven during the pendency of this reorganization.

Sunday, October 22, 2006 1:53:00 PM  
Anonymous scprofessor said...

In case you want to put a face to a name, you can view Zudi at the link below:

http://www.redcoatpublishing.com/spotlights/sl_04_04_kara.asp

Sunday, October 22, 2006 1:58:00 PM  
Anonymous Anonymous said...

two words for Zudi's mother, get bent. I broke my ass for your son, for years. I shelled out of my own pocket for the benefit of Zudi's business & all I have to show for it is a slip of paper from Zud's hench-woman. Trying to save Zudi's "good name" is a hopeless proposition. He is mud, his reputation is ruined, he is a joke throughout the industry. He may still have a few stooges who buy the lies he tells, for example his goon who has all day to attack internet blogs in a feeble attempt to stifle the truth about Kara Homes and its con man of an owner. But as soon as he stiffs them, they'll bail on him too. Then you can all sit there in Rumson and look for others to blame for Zudi's incompetence.

Sunday, October 22, 2006 2:09:00 PM  
Anonymous Anonymous said...

This is Zudi's first real experience with negative publicity & it is killing him. He is totally ego-driven and likes to be in total control of his press. That was then, however. Watch how fast his IT geek tries to squelch this post like he did with the other Kara posts on this blog. As if it'll somehow help. What next, Robbie, going to buy up every copy of every local paper?

Sunday, October 22, 2006 2:14:00 PM  
Anonymous disgruntled goat said...

The hands-on BS is particularly laughable. He had active sites that he never visited more than once, if that. I worked there for years and he probably spoke to me one on one for a total of maybe sixty seconds, max.

Sunday, October 22, 2006 2:46:00 PM  
Anonymous Anonymous said...

Well at least Zudi knows how to back a winner. See th link below for his political contributions in 2005-06.

http://www.campaignmoney.com/political/contributions/zudi-karagjozi.asp?cycle=06

Sunday, October 22, 2006 4:41:00 PM  
Anonymous Anonymous said...

Builders with big plans know employees can have a critical impact on a company's growth curve. "You're only as good as your weakest link," says Zudi Karagjozi, CEO of Kara Homes, which leapfrogged to the top of this year's Fast Track list.
_________

I wonder if Zudi was looking in the mirror when he said this?

http://www.amberhomes.com/fasttrack2.html

Sunday, October 22, 2006 4:52:00 PM  
Anonymous Anonymous said...

From a 2003 posting:
"Karagjozi had purchased an option on site in Old Bridge in 1986 and had received preliminary approvals by 1988. “That was the beginning of the end,” he said. “And I knew it was going to happen because I was 28 years old at that time and didn’t know anything. My professionals are telling me I need off-site improvements that cost about $3.5 million I’m saying, “What’s an off-site improvement?”

In addition to the legal and engineering costs needed to get the project approved, Karagjozi and his parents had to spend $25,000 every six months to keep their option on the property alive. They also had to purchase eight other parcels near the site.

Meanwhile, the demand for housing slackened. Of the initial $915,000 invested to try to get the project started, Karagjozi said he risked $400,000 personally. Some years his wife, Lysbeth, earned more money at her job as a flight attendant then he did, he said.

“You know the old saying ‘No pain, no gain?” he said with a laugh. “I’ve had a hell of a lot of pain.”"
______________________

Hey Zudi, I know you've "had a hell of a lot of pain," but is will pale by comparison to the painful questioning you'll be facing in an endless series of depositions.

Sunday, October 22, 2006 5:06:00 PM  
Anonymous Anonymous said...

Dear Zudi:

I have a relatively simple question. According to the Bankruptcy Schedules that were filed in the Kara Homes, Inc., case, Schedule B, Item 13, lists a value of $295,000,000 for the Corporation’s ownership interest in “Affiliates.” Those “Affiliates” appear to be limited liability corporations that you set up for specific development projects.

According to the information provided in a press release by Magyar Bancorp (available at http://biz.yahoo.com/prnews/061010/nytu155.html?.v=65 ), ownership of at least three of these limited liability corporation is with you individually. Now to you this difference might not be important, but I’m trying to figure out whether it is you personally, or Kara Homes that owns the stock in these “Affiliates,”

So does the paperwork relating to the issuance of stock in these "Affiliate" corporations reflect you as the stockholder of record or Kara Homes? I’m sure Kara’s creditors would be interested in your answer.

Sunday, October 22, 2006 7:21:00 PM  
Anonymous Anonymous said...

I understand people are pissed, but quick question, if you were in this position wouldn't your family defend you to? In the end, does it really matter what this man's mother says?

Sunday, October 22, 2006 7:59:00 PM  
Anonymous Anonymous said...

No, of course it doesn't matter what his mom says. I'm sure she's very nice & is only saying what anyone else's mom would (hopefully) say in the same circumstances.

But naturally there will be some who will take offense with her statement that in his eyes, Zudi's problems were due to his people sitting on their collective asses while he hustled and did it all. That statement is not true and the issue is with the statement itself, not the person behind it. The main "sitters" are still sitting right where they always sat, the majority of his "layoffs" consisted of those on the lower rungs who didn't have much time to sit, at least until the cash ran out.

Thanks for posting quotes from some of those legendary Zudi puff-pieces from the past. They were always a great source of amusement to me. How this guy never became a senator is beyond me, he seems to be more than qualified for a govt. position. He's adept at spin technique, fibbing, saying whatever any given person wants to hear and most importantly, he can plow through other people's money like a champ.

Sunday, October 22, 2006 8:24:00 PM  
Anonymous Anonymous said...

Wait a minute. This guy lets his MOMMY speak for him?

heh!

I can't even imagine the shame/humiliation I'd feel if my mother spoke out for me. ((shudder))

Sunday, October 22, 2006 9:12:00 PM  
Anonymous Anonymous said...

This guy is a piece of garbage. I also have little sympathy for employees. It is the potential homeowners who are really screwed here. People's life savings are history and those same individuals have no place to live. At least mommy and sonny boy have a house to live in... oh excuse me... a mansion!!!!

Monday, October 23, 2006 11:31:00 AM  
Anonymous Anonymous said...

By the way... It is not the fault of the employees... As CEO, Zudi is absolutely responsible for the performance of his employees

Monday, October 23, 2006 11:32:00 AM  
Blogger SCProfessor said...

I made the post that follows in the comments area of a news article (see http://www.thnt.com/apps/pbcs.dll/article?AID=/20061020/NEWS01/610200427/1005 ) relating to KARA in response to a question posed by someone who asked: "Are the unsecured creditors who gave Kara deposits for the purchase of a Kara Home included on this list of unfinished homes? If so how does one get a copy of the list?"
_______________________

I don't specifically know if they are on the list (although I suspect they are). You can view the entire 300+ pages of their initial filing at:
http://www.app.com/assets/pdf/B344329106.PDF

My sense is that purchasers who have "deposits" with KARA are going to be very unhappy as the result of this case. The obvious correct thing to do would have been to place those deposits in a neutral depository (with an escrow holder). As to whether KARA's actions in using buyer deposits to meet business needs, well I'm not in a position to voice an opinion as to lawfulness. I suspect the answer centers upon New Jersey state law. Perhaps an expert should be consulted (the district attorney's office comes to mind).

In any event, good luck to the poor purchasers who find themselves in the position of not knowing where their earnest money deposit went. One can only hope that there is a "deep pocket" around (say a title company, escrow company, or attorney) who was instructed to hold the deposits but somehow screwed up in disbursing them to Kara. Time will tell.

Monday, October 23, 2006 12:41:00 PM  
Anonymous Anonymous said...

ON A TOTALLY UNRELATED MATTER -
Does anyone have any information on the breakdown of the Trainman 10/1/06 auction of properties in Wildwood Crest? I heard the entire auction fetched 4.25 million but can't get a breakdown.

Monday, October 23, 2006 2:56:00 PM  
Anonymous Anonymous said...

"We have pre-sales and deposits for about $200 million in 2003 revenue," Karagjozi says. "We should end 2003 with $500 million in backlog. We might hit $700 million to $800 million in sales. In 2004, we'll do over $1 billion in deliveries."

Kara builds attached townhouses and single-family homes in a 60/40 ratio.

"We'll be the number-one-selling builder in New Jersey by the fourth quarter of this year," Karagjozi says. "We'll have $280 million to $300 million in sales that quarter. Next year we'll do between 10% and 12% of all the housing completions in New Jersey. My goal is to make the Fortune 1000 list and then do an initial public offering."

Kara ended 2002 with eight projects, now has 11 and plans for 30 by the end of this year. The firm will begin operations in New York, Connecticut, Pennsylvania and Maryland soon. Karagjozi says that by next year he will be "one of the richest, if not the richest, of all the builders."


Didn't mother ever warn Zudi not to count his chickens before they hatch???

Monday, October 23, 2006 3:43:00 PM  
Anonymous Anonymous said...

Karagjozi says that by next year he will be "one of the richest, if not the richest, of all the builders."

My God Rose, your son certainly does have lofty goals. And to think he could have achieved them if only his employees had not spent so much time sitting on their rear ends, sabotaging his effort.

Monday, October 23, 2006 4:47:00 PM  
Anonymous Anonymous said...

Little Silvered, you need to edit the comments on previous Kara posts. In a lame attempt to limit people's ability to read/respond to items about Kara someone has cut and posted very long chunks of text in the comments. Kind of pathetic really.

Monday, October 23, 2006 6:08:00 PM  
Anonymous Anonymous said...

"If there's any builder on the [BUILDER magazine 2002 Fast Track] list that personifies exponential growth, it's Kara Homes. From 1999 to 2001, Kara accelerated from six closings to 105, from $1.3 million in revenue to $34 million--and the growth curve is still headed up. "Every six months we double," says CEO Zudi Karagjozi, who projects 360 closings and $140 million in revenue this year.

The builder's feat of 483 percent revenue growth and incredible 1,650 percent closings growth is all the more impressive given Kara's territory: land-constrained New Jersey, where this fast tracker must compete with big builders Toll Brothers, K. Hovnanian Enterprises, and NVR.

The first secret? Speed. "My least favorite words are wait and can't," says Karagjozi, who draws on a team of corporate "expediters" to keep projects moving. The second secret: an emphasis on sales. "We're a sales driven company," says Karagjozi, a former land developer and commodity broker. "We have 10 salespeople, and I don't limit them. They know I want them to make money."

--From "Fast Track 2002" by Alison Rice and Loretta Williams, BUILDER, September 2002, page 116."


"Wait & Can't"

"I can't pay you today, you'll have to wait." Those are among my least favorite words, too.

Monday, October 23, 2006 7:14:00 PM  
Anonymous Anonymous said...

Hey Kara former employees. In a forum referenced below, I found one poster who indicated that an attorney for the South Amboy Redevelopment Agency was on Kara's payroll (see below). My research indicated the lawyer for the Agency is Craig J. Coughlin. Is this information about Mr. Coughlin's relationship accurate?

____________________________

1072.2. Ask City Lawyer
by BIG1, 10/22/06 21:12 ET
Re: Any people in new homes by IgotUBabe, 10/22/06
I hear South Amboys Redevelopment Agency lawyer also is or was VP for Kara Homes and thats how Kara came to South Amboy. Why don't you ask him about any bonds. I think his name is Coughlin and he is also related to the president of Board Of Ed. Source: http://www.nj.com/forums/southamboy/index.ssf?initial=true

Monday, October 23, 2006 7:34:00 PM  
Anonymous Anonymous said...

I worked there & I've never heard of him, no idea if he ever worked for them or not but the name does not ring any bells.

Monday, October 23, 2006 7:38:00 PM  
Anonymous Anonymous said...

From the NY Times 2003

" DOO duh duh doo doo.'' Zudi Karagjozi is scat-singing the baseline of music he helped improvise for commercials for his home-building company, Kara Homes, that will run on cable television this fall.

This summer, Mr. Karagjozi, an accomplished guitar player and composer, sat in with the session musicians -- and his friend Steve Ferrone, the jazz drummer -- to ''lay down tracks,'' as he says, using musician's patois.

First, though, he laid down tracks in another sense with Kara Homes' roaring pace of growth."
------------------------------------
His latest hit is a cover of "Brother, Can You Spare A Dime". Scat that!

Monday, October 23, 2006 7:44:00 PM  
Anonymous Anonymous said...

Must be interesting for you former employees. I sensed in an earlier posting that someone was pointing at you (former employees) for the loss that will likely be incurred for buyers who foolishly wrote checks to Kara for deposits. Truth is sadly they have themselves to blame for not following standard practices in real estate contracts relating to having funds escrowed with a neutral stakeholder (escrow).

It grinds me as it must many of you former employees to see the Bankruptcy Judge allow this company continue on "life support" with additional borrowings.

This fact further reduces your chances of ever recovering money on your unpaid wage claim since the repayment of post-petition borrowings will have priority to your claim (yes that new $1,000,000 loan will be paid before you receive a dime).

Incidentally if you suspect existing management is doing anything wrong (e.g. hiding assets) during the pendency of this Chapter 11 proceeding, the Office of the U.S. Trustee wants to hear about it. You can go to their website and it explains the reporting procedure. Point your browser to:
http://www.usdoj.gov/ust/eo/fraud/index.htm

Monday, October 23, 2006 8:03:00 PM  
Anonymous Bottomfeeder said...

Anon 2:56,
I called Traiman auction for the breakdown. The info is not avail until the properties close. Keep an eye on Cape May County Herald.com click on property transfers. Also, check out the Jewell real estate website. Click on the newsletter for August. They wrote about what the high bids were & whether they thought they would be accepted. Of course they are delusional. According to them the Crest is fairly priced & the bubble doesnt exist there! Hope this info helps. BTW, I am also looking to buy in WC.Been watcing the market for a yr. There is no rush to buy, the inventory is growing by the day.

Tuesday, October 24, 2006 8:16:00 AM  
Anonymous scprofessor said...

Article out today relating to the Bankruptcy Court's permission for two subcontractors to continue with their mechanics lien perfection procedure. You can read it at:
http://www.app.com/apps/pbcs.dll/article?AID=/20061024/BUSINESS/610240394/1003

I suspect other claimants will read it and follow this approach. Apparently in New Jersey claimants must go through a non-binding arbitration process. I also believe it is fair to say if Kara is still alive they will reject the arbitrators decision as a delaying process.

Battles like this will continue to go on, effectively raising the attorney fees (which incidently are Chapter 11 administrative expences having priority over all except Chapter 7 administrative expenses). I've made this point a number of times and I hope all of you unsecured creditors get it. That is as long as this Debtor is allowed to operate in Chapter 11, your distributions which are of course of a lower priority will get smaller and smaller as Chapter 11 administrative expenses grow.

Tuesday, October 24, 2006 9:02:00 AM  
Anonymous Anonymous said...

All you geniuses here, each with a better plan for running the company? It could have failed with or without you--but none of you exactly made a difference.

No one held a gun to your heads and forced you to work for Kara. You lie down with dogs, etc...

Tuesday, October 24, 2006 9:21:00 AM  
Anonymous scprofessor said...

Oh come on. I neither worked for KARA nor have any connection with them, just a history of dealing with these types of situations in the past from the perspective of a professional. The clear root cause of this failure is inept management. Thing about companies that file Chapter 11 reorganizations and keep the same inept management in place. As a rule (99.999% of the time), they are just forestalling the time when they will no longer get a paycheck. If you are one of them, better to bail and find another job than sticking around and watch the slow painful death with all its drama.

Tuesday, October 24, 2006 10:00:00 AM  
Anonymous Anonymous said...

Dude, I'm neither a Kara employee, customer, nor creditor.

It's just that the Monday morning quarterbacking here is a bit, well, nauseating.

I've quit jobs before out of conscience. In fact, I owe my current professional standing to my integrity.

It seems that a lack of integrity killed Kara--and that was a team effort. The buck stops at the top, but it passed through many hands to get there.

Tuesday, October 24, 2006 12:10:00 PM  
Anonymous Anonymous said...

This is not about MMQB'ing or whining over a lost job. Jobs come & jobs go, every single day. This anger is about being conned. I had never been conned out of a paycheck, by anyone, no matter how shady or disreputable they were. A person is told to come to work, they assume their employer has the wherewithall to pay them. If they don't, they are obligated to say so, then the choice to walk away is yours. That buck stops squarely on the desk of the CEO, case closed. Zudi conned me out of my salary and never said a word beforehand, thus he will forever be a target of scorn and derision for me. Kara was employing fewer than two hundred people at the time, no excuse for not letting those people know how poorly the business was doing.

The anger is also fueled by reading about this proposed loan Zudi wants to use to "re-build" his company with. As stated above, every dollar he mooches now is one less dollar his creditors will see. This guy owes many legitimate businesses millions of dollars for legitimate work they performed for his company's benefit. He profited directly from that work, it put lots of cash in his pocket. It is time to put an end to his con & make him face the music just like anyone else, no? He cannot get away with painting Kara as some kind of victim of circumstance. The rank & file did not have access to the books, we were doing our jobs while assuming those responsible for the books were doing theirs. We were wrong but that does not reflect on my integrity. It reflects greatly on theirs, however.

There was actually a time when working at Kara was a positive experience for all involved. There was a belief that Kara was on a good path and that belief was constantly re-inforced by Zudi & management. This all went south due to the incompetent people Zudi decided to entrust with his business. You can't tell if someone is a dishonest person until they display that dishonesty, and until he refused to pay me, I thought Zudi was, at heart, a sincere guy. That makes me a lousy judge of character but again, does not reflect on my integrity at all.

My conscience is clean, I did my part & tried to do my best for all involved. Hopefully, you fonts of integrity and wisdom never become the victim of a con yourselves.

Tuesday, October 24, 2006 1:36:00 PM  
Anonymous Anonymous said...

I am a former KH employee and I can tell you the only people who sat on their hands were located in the corporate office in east Brunswick. Momma Kara is one of them, along with her husband, son, daughter in law, friend from Michigan, her son boyhood friends, etc. Funny I never saw momma at a Weds night meeting, how the hell would she know what was going on. KH failed because her ego maniac son was too worried about which magazine cover he was going to be on and didn't give a damn about the construction dept working 7 days a week to meet his unrealistic goals. I am still waiting for a comment from Zudi, I guess we will all have to attend court to hear his explanations to the judge.

Tuesday, October 24, 2006 1:36:00 PM  
Anonymous disgruntled goat said...

It's been three weeks now and most of my initial anger has faded to a mere grudge. I sleep just fine at night, I gave them my best effort and if it wasn't enough, oh well. Maybe I was indeed part of the problem, in someone's opinion, but I also can rest easily knowing that I do not owe thousands of dollars to local businesses and individuals with surnames ending in multiple vowels.

Nonetheless, it's tough not to get a tad riled while reading the various comments from Zudi's attorney and his mom, two people whose perspectives are obviously a little biased. Just recently, it was almost impossible to get Zudi to shut up, he seems awfully silent right now, though. The wise one is suprisingly mute at this crucial juncture in his company's history. No pearls of wisdom, no snappy quotes, no accountability. As I said before, it'd be swell to actually hear about the details of this "plan" of his. No one was spared the details of the last one.

Loaning Kara money right now is like watching a friend drop all their cash at the tables, then max out all their credit cards, then loaning them yours. He needs that someone to pat him on the back and gently tell him, "it's over, let's go". As someone on this blog told me not long ago, gotta move on. Time to move on, Zud. It's just sad now.

Tuesday, October 24, 2006 2:08:00 PM  
Anonymous Anonymous said...

I agree , Although I do feel sorry for the people who bought homes or townhomes in developments where there is now vacant unfinished homes with construction debris all over the place, the longer it takes to resolve this the more expensive it is going to be to construct or reconstruct the rotting homes, Someone should just tell Zudi it's over. C'mon mom, help him out.

Tuesday, October 24, 2006 3:20:00 PM  
Anonymous Anonymous said...

Thank you, bottomfisher for the info...good luck.

Tuesday, October 24, 2006 3:29:00 PM  
Anonymous Anonymous said...

Maybe someone should take out an ad in the Asbury Park Press, include Zudi's photo with the quote he used at a company meeting..but with a different ending: "the plane you were building as it was flying through the air has crashed and burned!"

Wednesday, October 25, 2006 10:57:00 AM  
Anonymous scprofessor said...

I would encourage you KARA former employees to establish a Yahoo group or some other central point where you can help each other get through this situation. The mutual support will help and you may also offer benefit to the U.S. Trustee's office once this thing gets converted to a Chapter 7 and existing management are separated from the decision making process.

If Zudi and the banks wanted to do the proper thing it would be to bring in a "trusted" workout specialist to take the role of a Chapter 11 trustee with the goal of protecting and preserving the assets for the benefit of all creditors.

That would mean building out the projects that are close to complete and selling the ones that are not. Key here is it is a lot easier to "fight" over money and time isn't on the side of anyone (other than those few individuals currently drawing paychecks).

The killer in this "time" thing is the declining real estate market. The few buyers out there are aware that as time passes property values are going down. All one has to do is to hit the major real estate bubble blogs (e.g. http://thehousingbubbleblog.com/ ), to get a sense of how bad things are now and how bad they are going to be in the near future.

Nice to see former KH employees contributing to this forum are moving on. I've said it before and I'll say it again, it isn't a good idea to allow Zudi to rent space in your head. The rate of return isn't good and you should focus on things that will have a positive impact in your life.

Take care,

SCProfessor

Wednesday, October 25, 2006 11:20:00 AM  
Anonymous Anonymous said...

I too am a former employee who got beat out of salary and bonus money. But do you know what, IT'S OVER! I knew that Kara was in deep trouble and yet I hung around. Shame on me. I have no expectation of ever getting the money due me.
Right now I think it most appropriate to just find another job.

Wednesday, October 25, 2006 11:28:00 AM  
Anonymous Anonymous said...

I actually think Rose's statement was fair. She explained what she thought Zudi's weaknesses are (I do think there are more however) and did blame him partially for the demise of Kara. I don't think there are any other former employees on here that would disagree that there were many people within the company that were paid inflated salaries and had no idea what they were doing. Zudi's failure to relinquish control of the company played a large role on the road to ultimately filing for bankruptcy but he certainly had a lot of help on his way. Many of those in upper management had little to no experience in homebuilding prior to Kara and had no idea what they were doing in the most part. Toward the end many people tried to distance themselves from Kara while still collecting their paychecks. The destruction of Kara was caused by Zudi's lack of realism and his huge ego as well as bringing on a bunch of people in power positions that were useless and in most cases should not have been in homebuilding at all. Don't get me wrong, there were many talented individuals at Kara but there were also a lot of slackers who did nothing.

Wednesday, October 25, 2006 11:33:00 AM  
Blogger Anonymous said...

I'm glad to see that Jim McPaul is as effective as ever as Kara Homes' crack Director of IT posting spam all over the anti-Kara blogs. Why does that motherfucker still have a job anyway? Everybody knows Jim Barnebei really runs IT.......

Wednesday, October 25, 2006 11:43:00 AM  
Anonymous disgruntled goat said...

No need for profanity, besides, you don't know who did what to whom. I would, however, recommend turning off cell phone service immediately after letting people go, although my friends in Singapore were happy to hear from me.

I will obviously be following the events of this case from a healthy distance. Despite moving on, how it turns out is of interest to me and I will not hesitate to add my two cents whenever possible. If someone sets up a group online somewhere, I'd be happy to participate. In fact, maybe I'll do it during some my unwanted "free" time.

Wednesday, October 25, 2006 1:08:00 PM  
Anonymous Anonymous said...

I agree with Rose and I dont. There are STILL people at Kara that up until now were getting paid enough money to feed an African village for a year! And yes, they were the ones running around with cell phones glued to their ears popping in and out of meetings, they were the ones we never saw, they were the ones that would come in at 1pm and leave at 3pm. But who did they "let go" when pay role needed adjusting? The people that ran around all day trying to keep the nut house together. It is going to be very interesting when the banks come in and tell Z to cut payrole...will he again get rid of the people that actually work and make 1/5 of what the ones that dont? Or will he MAN up and get rid of the people that are truly just there for the free coffee and a computer to look for a job all day.

As for the whole "leaving if you think your company is not doing good things" Be careful what you say, you were not there. Being "left in the dark" was an understatement! And even now, the people that are left, go to work everyday without a clue as to what is going on. Not everyone has experience with chapter 11. And for the record..I got out, I was lucky, enphasis on lucky!

Oh yeah and a shout out the MC CUE BALL!! Get a life and stop reading the blog when you block everyone else from reading it!! What is it that you do all day anyway?? Well I could guess...but I wont go there!

Wednesday, October 25, 2006 2:27:00 PM  
Anonymous Anonymous said...

I HEARD A RUMOR THAT SERRATELLI AND HIS MOUTH PEICE MURPHY ARE ON THERE WAY BACK TO CLEAN UP THE MESS. DIDN'T THEY LEARN THE LAST TIME.WHEN ZUDI SCREWED THEM.SUCKER MURPHY BUILT HIS HOUSE IN LBI OVER A SUMMER AND GOT NOTHING IN RETURN.SERRATELLI PRETTY MUCH BUILT THE COMPANY TOOK THEM THROUGH THE LAST BIG CRUNCH AND GOT FIRED 2 WEEKS LATER.

Thursday, October 26, 2006 10:53:00 PM  
Anonymous Anonymous said...

It'll never happen, there's nothing for anyone to come back to & no money to pay them with. If that loan Zudi's after gets squashed by the court, it's lights out for good at Kara Homes.

Thursday, October 26, 2006 11:49:00 PM  
Anonymous Anonymous said...

Zudi screwed Serrtelli??? Are you for real? How many kitchens "disappeared" for Kensington Hills and ended up in the houses Serratelli and his clueless goons were building on the side? How much lumber disappeared from stafford and ended up on one of his PM backyard deck? How much fill was trucked from sites Murphy was "watching" over and brought to wear Serratelli was building? How many appliances went missing under Murphy's "eagle" eyes? You have got to be kidding when you say Serratelli and his IDIOTS could save Zudi from this mess!! Murphy spent 85% of his time in the strip clubs, Serratelli spend all of his day scribbling numbers on yellow pads and heckle and jeckle where two of the most clueless supers ever to walk on a job site! Come on they couldn't even figure out where door knobs should go!!!!!! Thanks for the laugh...Serratelli saving KH

Friday, October 27, 2006 9:01:00 AM  
Anonymous Anonymous said...

AHH but Seratelli came in to meet with Z and he told Z where to go!!!!

Friday, October 27, 2006 9:48:00 AM  
Anonymous Anonymous said...

Serratelli is a whore for money...he wouldn't turn down a single dime and a chance to embezzle more from KH......still laughing

Friday, October 27, 2006 10:45:00 AM  
Anonymous Anonymous said...

No one is going back to work at Kara, there's nothing to go back to anymore.

The thing is, in the construction biz you have 50% normal, decent, honest hardworking people. You also have 50% who are out to scam and steal and get paid to do as little as they can get away with. Proper management is key, you need someone with a qualified eye to be able to notice irregularities and point them out to upper management. You can't visit the jobs once or twice a year and pretend to be a rock star and you can't rely on a HR expert to assess progress at a construction site.

Many people pointed out the fact that Kara rarely had any security in place on site but it was never made a priority. Just like when their trailer was recently looted, they would hire security AFTER they were robbed. Cart in front of the horse.

Saturday, October 28, 2006 12:45:00 PM  
Anonymous one pissed off person said...

does anyone realize that zudi's mom got a cut of every house that he sold. i am a realtor. i sold several of his homes. i had approx 500 dollars taken out of my commission an applied to some realty company each time. after i researched it, it turned out to be zudi's mom. so who is sittingon their ass collecting money for doing nothing.....maybe its.dear old "MOM"! if every home he sells gets some fee to the realtor(his mom).........wow count the losses. what a joke. plus that news paper is not about to print a negative story about zudi. he has spent millions in advertising, and just in case he makes a rebound, they want to be sure that they can stand by him. he is a liar. i know first hand. i too have ties to him and trust me no one was sitting around doing nothing. they worked long hours to try so hard to provide a quality product. they spent endless hours on the phone with zudi convincing this person how everything will work out. He was promised by zudi that he was going to be made a millionare........but.........it was too late! all the people that came before his time made the money. they gouged him and he went along. he is still paying for his salesmans spec home that he bought witht he hopes that zudi can refinance it and get some illegal money out of it. i am so sick and tired of reading how it is everyones fault....only zudi is at fault. look deeper and i am sure tha t you will find lots of misappropiated funds. why am i paying a realty fee, when they have their own sales people, why..........because they are crooks.

Sunday, October 29, 2006 12:13:00 AM  
Anonymous Anonymous said...

Wasn't mommy the broker of record at Kara?

Sunday, October 29, 2006 1:49:00 PM  
Anonymous Anonymous said...

Re: broker of record, yes she is, her name is prominently posted as such at all the sales offices. She was on the payroll too. Not that it matters much now.

Sunday, October 29, 2006 3:58:00 PM  
Anonymous Anonymous said...

Being broker of record, wasn't mommy in part responsible for homebuyer deposit money?

Monday, October 30, 2006 9:29:00 AM  
Anonymous Anonymous said...

In order to be a Broker or Records...don't you have to have an office in the place where you are the Broker of Records?? Well, MOMMY didnt and thats why they were investigated by the Real Estate commission..I know, I saw them! AND they pretended that Rosie Poo had a desk there....BUT SHE DIDNT!! FRAUD!

Tuesday, October 31, 2006 2:27:00 PM  
Anonymous Anonymous said...

Maybe mom can prepare meals for the family when they're all in jail together.

Tuesday, October 31, 2006 6:51:00 PM  
Anonymous Anonymous said...

I wonder if Rosie will pick the black stripes, or the bright orange jumpsuit. What will go best with her sandals?? Like when she was pretending to be a PM on one job sites, now that was real professional. Doesn't have a clue. She will need her hard hat when someone slaps her upside her head for being so ignorant. Don't make anymore stupid comments about the grunts in the field who worked their butts off only to get screwed. I am sure Rose was able to pay her mortgage last month. I have a great idea, when the Kara homes unemployed people loose their homes, or get evicted from their apts. I think maybe squatters rights may be well justified.Lots of Specs available. Also I have no money for food, Hey Rosie, whats for dinner Fri. Zuhdi see you for Sunday dinner also.

Tuesday, October 31, 2006 9:56:00 PM  

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