Kara Discussion Continued
Last Kara Thread is here.
posted by Little_Silvered at 9:43 AM
Saturday, December 09, 2006
Previous Posts
- Sub Prime Lenders Look Weak
- Price Data Seemingly Flawed
- Sub-Prime Problems
- Shore Towns Plan Development Future
- More Exclamation Points !!!
- Pending Home Sales Down
- test
- "Distressed Real-Estate: Priced to Sell"
- Mortgage Bonds Begin To Buckle
- Bubble Bloggers
181 Comments:
Why do all these Zuhdi loyalists take umbrage at SC? The answer is quite simple; SC reminds them of the truth that they don't want to hear. The reality is that Kara Homes will not be around in six months and there will be no employment there, period! SC is merely describing potential (probable)scenarios that will sooner than later come to pass. My advise to you true believers: rather than bash the Prof, get your collective asses in gear and find permanent jobs.
I've got my resume out there, but no responses. Then again it's Christmas and really no one is hiring (unless you want a temporary retail job). Can you former Kara employees give us an idea of whether your Kara connection has been a problem in getting hired.
RE: 5:10 - I've been actively looking for a little over one month and so far it only came up once. The reaction was largely sympathetic.
I could even see it working to one's advantage, if it were played correctly. It's a great interview icebreaker and if you tell the story the right way, you project that naive, earnest "sucker" quality that so many employers look for in an underling. Plus, you can lie on your resume because, as we know, if a prospective employer attempts to contact your Kara supervisor, no one is going to pick up the phone and the voice mail box will be full. In fact, if you still work there, you can direct such calls right back to yourself, disguise your voice, and give yourself a glowing recommendation.
But seriously, so far, no one other than the aforementioned seemed to notice or care. Best of luck to you and almost everyone else too.
Oh yeah! Zudi sucks! Arrogant jerk! Didn't want to inadvertently violate thread protocol and be banished to the North Jersey blogs.
Not exactly a good time to be out there looking for work. One guy wrote:
http://www.americanchronicle.com/articles/viewArticle.asp?articleID=17716
"Job layoffs are only beginning in the housing sector. The list of home builders under deep stress actually covers almost all its members. In fact, my forecast is for a major home builder to declare bankruptcy sometime next year in a major shock announcement. KB Home is the prime candidate. The HGX home builder stock index is likely to lose over 75% of its peak value."
"Expect a bounce occasionally as prices come down, but each bounce will be followed by yet another painful crushing decline. The current rise in the HGX index has gone too far, spitting in the face of deteriorating statistics which are nowhere in recovery. In fact, expect five or six bounces, much like a victim would experience falling down a staircase. This will turn ugly."
Well I guess there are always jobs at Walmart for greeters.
For those finding it hard to find employment think perhaps about doing something different. I know that its easier said than done but I don't see this RE Market improving.
Yeah I heard Hektor got a job at Dunkin Donuts.
Anon 10:01 your advice is probably right. Problem is finding a career that pays more than kid wages. A funny blog that hits on the downturn in real estate is Buzz Saw's Miter Box Blog. He hammered Zhudi a couple of weeks ago. Today he is hammering on KB Homes.
http://buzzsms.blogspot.com/index.html
WEll as you former Kara employee start to interview wait you will hear Kara Homes over priced the market and paid people to much to start. there was no room for growth I can not hire you at what you were making at Kara so expect to take a pay cut the jobs are out there just not at what Kara paid you.. Kara over paid people that knew nothing and under paid people that Knew what the were doing . Let's see how long Zudi's crew of merry schmuks can keep up there life style and things start to go bad.Hector's fleaing back to Michigan. Kara owens his place I heared.so that means the bank or subs really owm it. Hector has done his job by ruining Kara and leaving to Back from which he came.
Thank you Zudi for allowing me to make money at the same time ruin peoples lifes.
YO, Anon 4:35 SPELLING AND PUNCTUATION!
Can anyone tell me why the Kara website is still up? What's the point? Doesn't it cost money to the web hosting service? Sorry Zuhdi to burst your bubble but prospective customers aren't out there checking out your website.
You Kara employees should get on with your lives. I am a homeowner with no house, no money and this situation has resulted in the demise of my marriage. I would be thrilled if my only problem was to find a job. Instead my life savings are gone while you all sit here and whine...
The reason the website is still up is that Traxi wants to portray the image it is "business as usual." That is the same reason Traxi had the Court approve the continued payment of the sales people (see Motion authorizing the Debtors to pay employees of Kara Birbach Geller & Co., Ltd.-- http://www.karahomescreditors.blogspot.com/ ).
That way when they go back into Court they can say, "see Judge we've still got a website, and we've got real estate salespeople out at the sites, just waiting for the flood of buyers to appear once we get past Super Bowl Sunday (or Easter; or Memorial Day), and the traditional sales season starts."
Look, you and I are smart enough to see through this ruse. But as is evidenced by some of the postings on this Blog, there are a lot of people who don't want to face the truth.
Oh and if you go to the Kara's website and select Careers, you will find an ad which clears up the issue of "what happens to the 10-year warranty" that was raised by another poster this morning. Seems Kara is seeking a volunteer to handle this concern (since it won't be around to pay, well its got to be a volunteer position).
------Ad-------------
Warranty/Pre-Title/Punch List
Position available for individuals experienced in repair work including sheetrock repairs, paint touchups, caulking, spackling, light carpentry and plumbing repair for our communities in South Jersey. Must have own tools and transportation. Well groomed with good communication skills.
For CONFIDENTIAL consideration, send your resume to:
Robbie Schultz
Rschultz@karahomes.com
Phone: 732-565-0720 Ext. 113
Fax: 732-876-0397
Fuck This Zudi And all Have flown the coup Zudi has not been seen for 2 1/2 weeks where is zudi. He has money put away and is going to fly the coop as soon as he can he just does not no who to take is he going to leave Betsy holding the bag and is she going to have to get a job when Zudi leaves the country
to all you people that lost money go to Zudis house and stay there he has alot of room and all the rooms are furnished for your pleasure.. Spelling and punctaution Extra need address just ask we will give it
Friday, December 08, 2006
Summary of December 1 Hearing
After reading this I thought to myself what a shitty legal system we have in this country. Seems as though the perpetrators have more rights than the aggrieved.
re: anon 10:29 - get bent, the only whining I see here is from you. Go start your own Kara Homes-Special Victims Unit blog, since you're the biggest victim of them all. Like you're the only person who got jacked or who married a golddigger.
No one at Kara has given a rats ass about that website in many months. That help wanted ad goes back to earlier in the year when Robbie was running off everyone in the warranty dept. Zudi put his girlfriend in charge of warranty then she handed off the job to Robbie who doesn't know squat about it at all. Anyone who questioned it was first on the death list.
Re: anon 12:01
STICK IT UP YOUR ASS!!!!
Anon 1:38
First let me say that I have little doubt that Anon 12:01 is an immature waste of humanity. While I have my doubts as to whether he is/was associated with Kara Homes, I know that many of us hear your pain and are understandably sorry for what you have had to face.
The hollow promises made by Zhudi are I suspect like throwing salt on the wound. The fact, as I understand it, that he refuses to attend the bankruptcy creditor meetings, shows just what sort of a man he is. Similar in nature to his "brief case carrying partner," Anon 12:01.
I think the best solution for you and many of us is to move on with our lives. Sadly, at least for me, that means finding a job in an already tight job market. Hopefully you are employed, if for no other reason than working offers an opportunity to stay focused on something other than this situation.
Listen If Patrick Golden can get
a job anyone can make sure you have a lot of shit to sell them. Kara Could have been a good company if you look good and want to fuck
To: All Kara Homes Employees
From: Robby Schultzie
Date: December 10, 2006
Re: Court Appearance on December 11, 2006
---------CONFIDENTIAL------------
As many of you know, we face a number of issues at tomorrow’s omnibus hearing that will determine whether Kara Homes survives. Since the continuation of our paychecks is a primary motivating factor for all of us, our leader has requested your presence at tomorrow’s hearing at 1:00pm as a showing of solidarity. The plan is, when you hear our leader say “a one, and a two, and a three,” we all start singing the words to the song below.
The key here is doing a good job. The music that will be played is the same music Jay and the Americans used in their hit recording of “Cara Mia.” Practice makes perfect so get together in small groups on Monday morning and work on learning the lyrics by heart so we can show Judge Kaplin what teamwork is all about.
Oh and if you weren’t around in the ‘60s or were around but too loaded to remember the melody, you can practice by clicking on this link and you will hear it:
http://www.garyrog.50megs.com/midi/caramia.mid
(Employees Sing)
Kara Mia why must we always lie?
Each time I do my heart wants to die
Zudi hear my prayer
Why can’t we just be fair
I'll be your employee till the end of time
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
(Zudi Solo)
Kara workers why, must we say goodbye?
Each time in Court my heart wants to die
Judge Kaplin hear my prayer
To our buyers we are fair
Kara Homes will survive till the end of time
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
(Everyone Sing)
Oh oh oh oh oh
Oh oh oh oh oh
Each time we part my heart wants to die
Judge Kaplin hear our prayer
Keeping us employed is only fair
Kara Homes will survive till the end of time
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
Kara Mia mine
Oh shit. I just spilled my coffee on my keyboard because I was laughing so hard
Song to be followed by a big group hug - warranty style!
This comment has been removed by a blog administrator.
Well it looks like the people who stayed at kara are not only geeting paid but they are having a christmas what about people who have no house thanks to Kara also I heard That Zudi paid out Bounces to all his people
The people still working at Kara have been getting a paycheck everyweek. Have you heard if they were paid for the pre-petition 3 weeks? Or is that what you are calling a bonus (the missing 3 weeks)
I am one of the unfortunate people who put a $100k deposit down on a Kara home last year. My contract with them expired literally days after they claimed Chapter 11. The house they were building for me was about 60% complete (the outside is completely finished). The house I was living in was on the market and ended up selling just a few weeks before Kara filed. Yes, I am left with no house to live in, and I've lost my life's savings, so I do not have enough money for a downpayment on a new house.
I've been reading these blogs since day 1, and I'm not here to whine about my situation, which is why I've never posted until now. My intention, however, is to give some of the readers here a little bit of background about me before I give my opinion.
I appreciate SC and all of the information he's provided. Everything he posts is based on facts, and he includes references to most of his data. I don't understand how anyone can post to this site and stick up for Kara Homes or bash SC, unless of course, you are still working for Kara.
SC, I want to thank you for your continued interest in this case and for helping most of us who have lost everything and don't know the first thing about bankruptcy understand the implications of this disaster.
In addition, I thank you for having the patience to not only deal with a few of the obnoxiously unintelligent posters on this blog, but to even go as far as to continue responding to them and defending yourself. I hope that you continue to stay interested in this case and continue to help those like myself. I also hope that nobody dissuades you from continuing to post here.
Being that we unsecured creditors hear little to no information about what is going on behind closed doors, I'm sure I speak for all of us when I say that it helps us to hear your explanations and possible outcomes. Thanks again.
You know, except for Zudi and his inner circle, I doubt few who frequent this Blog are upset with anyone still there getting a paycheck. Place has got to be like a morgue. Most are smart enough to recognize that it the situation is temporary at best.
Let's face it the job market, and in particular that associated with residential building, is lousy. This morning Dupont announced they were laying off 1500 people. If you want to see a true picture of how well this economy is doing, try this link:
http://tinyurl.com/yk69qq
Anon 3:30, glad to see a little humor (although I'm sure Zudi wouldn't agree with my opinion).
Thanks Anon 10:03 for your kind comments. Unfortunately that phrase "if you don't like the message, kill the messenger" appears to be the mantra of at least one Zudi follower.
As you have seen in my postings, I try to include readily accessible reference sources when describing the potential paths this case will follow.
The lack of insider knowledge isn't, in my opinion, as important as others here claim it is. That is simply because this builder bankruptcy is not unique, just as its owner is not unique. The Kara Homes situation mirrors a number of similar cases I was directly involved in during the two previous market downturns ('79-'83 and '90-'94).
I do hold out a kernel of hope for you. Specifically the potential of recovery through deposit bonds. Perhaps an avenue in that regard is to contact one of the attorneys who have already started to commence collection activities on behalf of a buyer, where the objective has been to make a claim on a bond. At least it is obvious from new reports they have the attention of the bond issuer, since they have sued Zudi in response to the claims.
Take care and good luck in your recovery efforts.
SCProfessor
Even the remaining Kara workers wish Zudi would just go away & take his seat-warmers with him. It hasn't escaped their or anyone else's notice that the new management got more done in a few weeks than the genius accomplished all YEAR.
re: Sunday, December 10, 2006 2:21:16 PM Glad someone mentioned Golden Boy, when he bailed they fell all over him like he hung the moon meanwhile his sites were running as smoothly as a stopped up toilet. Another one who couldn't stop patting himself on the back for a great 2002 two years later.
What I love about the internet is the way you can see a single news story get repeated in the press and that sort of extends its life. Once again, the reading public is being reminded of the direct results of Zudi's folly (Kara Homes) and the damage he did to our local community. This time the story was repeated in Delaware (thanks to the News Journal and Delaware Online). You can view it at:
http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20061211/BUSINESS/612110301/1003
The focused story is subcontractor Stephen Clark, who along with his five children ages 9 to 17 living at home, won't be having much of a Christmas. So Zudi, when you and your family are enjoying the Christmas meal with your mommy Rose and the rest of the family, don't forget to say a little prayer for Stephen and his family.
My hope and the hope of so many others is that the Ghost of Christmas Past haunts you Zudi for the rest of your life.
What makes me so angry is that Zudi has stolen millions of dollars and claims he has NO money, but yet he still lives in a multi-million dollar home, drive a BMW and still draws a paycheck. He has stolen hard working individuals money and they are cutting their expenses and living without. I am sure most would feel so much better about the situation if he showed up to work in a Dodge Dart and was living in the back of it.
Kara Homes Inc. can close on 12 more homes that are completed, a bankruptcy judge ruled today.
http://tinyurl.com/ycmjek
Big deal, so they finally close on some houses and give back some of the money they used to build the houses in the first place. All Zudi needed was someone to run the business for him, and borrow for him, and get permission for him and months and months of time. So finally 12 people will get what they paid for.
Anon 1:27
Your feelings are understandable, given what has happened in this case. I want to make a point that I’m sure will bring you some solace relative to Zudi’s situation. It relates specifically to his home. In the past a reference was made to the fact that title to the property is held in Zudi’s wife. That is true. Zudi and Mrs. Zudi acquired the property in April of 2002 (Instrument No. 2002078046). In August of 2004, Zudi conveyed his interest to Mrs. Zudi (Instrument No. 2004168496). A declaration that accompanies and was recorded along with that deed reflects a total consideration for his giving up his interest in the property at $1.00.
Bearing all of this in mind, Mr. and Mrs. Zudi are likely to learn what is meant by the term “fraudulent conveyance.” In other words Zudi, trying to park this asset beyond the reach of your creditors isn’t going to work. Good luck trying. Too bad you couldn’t have lasted a bit longer so you could get past the Statute of Limitations.
Not that easy SCProf...need "actual intent" to defraud...good luck proving that with a 2 year old transaction.
Oh Anon 4:23, you should have paid more attention to my earlier post (see below). In it I pointed out:
"The Act also characterizes as fraudulent those transfers made where the debtor does not receive reasonably equivalent value in exchange if at the time of the transfer the debtor is effectively insolvent. This section is often referred to as the "constructive" fraud provision. "
Now I guess you could do what you can to claim that Zudi was not insolvent back in August 2004. I personally don't doubt that his insolvency easily predates that time.
______________
SCProfessor said...
Anon 12:47
Thanks for the update. Soon we will see a bunch of other banks and bonding companies filing similar actions. Then of course, Zudi will file his own bankruptcy or a few of these creditors will get together and invite Zudi into bankruptcy by filing an involuntary bankruptcy petition. Then Zudi, who has no doubt transferred property to his wife or other family members will learn the hard way about New Jersey's 4-year statute of limitations on what are characterized as Fraudulent Conveyances. Zudi, just in case you are not familar with this law, you can find a quick primer on it at:
http://tinyurl.com/y8pacw
The important part is quoted below:
Fraudulent Conveyance Law
In adopting the Act in 1988, New Jersey replaced the previously existing Uniform Fraudulent Conveyance Law. The Act was intended to prevent a debtor from placing his or her property beyond a creditor's reach. Gilchinski v. National Westminster Bank. Under the Act, fraudulent conveyance claims are permitted to allow creditors to undo transactions which are deemed "wrongful" so as to bring transferred property within the "ambit of collection." The Act has been adopted by at least 39 states and the District of Columbia and was in response to perceived deficiencies in the predecessor statute, the Uniform Fraudulent Conveyance Law, under which there were great discrepancies in interpretation nationwide as to statutes of limitations applicable to the avoidance of fraudulent transfers. To remedy those inconsistencies, the National Conference of Commissioners on Uniform State Laws recommended a uniform statute of limitations and such was included in the Act. The Act defines two categories of fraudulent transfer. There are those transfers made by a debtor with actual intent to "hinder, delay or defraud" any creditor of the debtor. This action is the so-called "actual" fraud provision. The Act also characterizes as fraudulent those transfers made where the debtor does not receive reasonably equivalent value in exchange if at the time of the transfer the debtor is effectively insolvent. This section is often referred to as the "constructive" fraud provision. There are limits on the amount of time creditors have under the Act to institute an action to set aside an alleged fraudulent transfer and N.J.S.A. 25:2-31 sets forth the Act's statutes of limitation. The time periods vary depending upon whether the allegation is that the transfer was made with actual intent to defraud or whether the transfer is alleged to be constructively fraudulent as a result of the inadequacy of consideration and the debtor's poor financial condition at the time of the transfer. As to transfers involving allegations of actual fraud, a cause of action with respect to such a transfer is "extinguished" unless the action is brought within "four (4) years after the transfer was made or the obligation was incurred, or, if later, within one (1) year after the transfer or obligation was or could reasonably have been discovered by the claimant;…." It is this "tolling" provision which was a major focal point of the recent New Jersey cases.
Wednesday, December 06, 2006 1:13:02 PM
Hey Anon, 4:23 I was at the meeting about 2 years ago when one of Kara's attorneys told Zudi to get his home out of his name and into his wifes so he would not have the same problems he had when he filed bankrupcy with his previous company.
There were actually about 15 people present at that meeting who could prove intent. This meeting was discussing the possiblity of the company not being prepared for the future which Zudi ignored (except to move the house over to Laysbeth's name)
So Zudi was told by his people to be prepared that things could turn very quickly.
So his intent was to hide the property and I can name the fifteen people who where at that meeting..
Oh and there was also minutes from that meeting
Yay! 12 more closings! Now Tom can tack them up on the "big board" & take credit for them too. If Kara keeps up this pace & keeps doubling every year (Z's 1st Law of Unrealistic Economics) by 2023 they'll be doing a zillion closings every year! If they keep bringing in these outside managers to get things done, watch out world!
But Laysbeth give him a dollar for his interest in the house. Doesn't that count for something. Anon 4:23, you sure helped your buddy Zudi here. I'm guessing Zudi's creditors (bonding companies, etc.) really like reading this Blog.
Actual transcript of Kara braintrust meeting regarding Kara's future. circa 2004-5
Normal, non-ego driven Kara employee: "Zudi, we need to prepare the company for the future. This real estate boom won't last forever."
Zudi (distractedly); "Huh, what? A piece of land? Where?"
Employee: "No, we were discussing the future, long range plans for Kara, Zud."
Zudi: "How much do we have available to spend for this land? Let's get it today. Get accounting on this, Hektor."
Employee: "But Zudi, this is far more important than another..."
Zudi: "We'll call it Sterlingwoods Acres, or Greenlake Woodlands. Get marketing on this, Hektor."
Hektor: "Of course, Zudi, hey, is anyone eating that last slice? If not I'm taking it home for later."
Never met Zudi, never worked for Kara, never contracted to buy a Kara home.
As for you former Kara employees, did you ever think that maybe Zudi tried to keep this business running as long as possible because he believed he could make it work...in fact, from what I read, it sounds like he kept alot of you employed and receiving paychecks way past the time he should have called it quits. You should be thankful he kept the ship floating as long as he did so you could collect your relatively large paychecks. As for the people who were screwed out of their deposits, and the contractors, I truly feel for them...they were innocent parties. In fact, I bet alot of the contractors' sweat and homebuyers' deposits went to pay you former Kara employees. Think of it this way-- so you lost 3 weeks pay-- you were kept employed at inflated salaries for a very, very long time. In my book, you're ahead. Quit whining and find a job.
To all you fellow former Kara employees. Just a heads up if you've been paying for COBRA like myself. Had to go to the Dr's on Friday and much to my surprise, the coverage was terminated despite the fact I have the cancelled checks to Checkpoint for COBRA payment to prove otherwise. After calling Oxford, Checkpoint and Kara, it seems our friends over at Kara have collected about $40,000 to $50,000 per month in Cobra payments from former employees for the last two months(I was told there are over 50 people on COBRA by Checkpoint(who collect and remit to Kara)and Kara has not paid Oxford for the COBRA people or their still remaining active employees as of today. Just want to give everyone a heads up especially if you have to go see a doctor anytime soon or fill a prescription. You will be angry and embarassed if you end up going and finding out for yourself. I have been told by all that coverage will be reinstated retroactively to November 1, within the next few days, but right now, no one is covered because Oxford cancelled the group policy for non-payment. Beware! Kara, of course, is blaming Bear Stearns and Traxi, surprise, surprise!.
I would suggest to all to secure coverage on your own as Kara in no way, shape or form can administer this effectively and you will only end up getting angry , hurt and frustrated. Try explaining to the doctor, hospital or pharmacy that you paid for COBRA, but are on the inactive file they receive from Oxford. Good Luck!
RE: anon 5:11 - ever think about blowing me?
Deposition (Partial Transcript).
Attorney: Now Mr. Karagjozi, I’m handing you what has been marked for purposes of Identification Exhibit 1. It is a loan (or bond) application dated January 2, 2005. Is that your signature on page 3?
Mr. Karagjozi: Yes.
Attorney: And the handwritten date next to your signature, January 3, 2005, was that written by you?
Mr. Karagjozi: Yes.
Attorney: Now do you see above your signature where this document says, “I declare under penalty of perjury that the information contained in this application is true and correct”?
Mr. Karagjozi: Yes.
Attorney: Now do you see on Page 3 under “Assets: Real Property” the home located at 20 Riverside Drive?
Mr. Karagjozi: Yes.
Attorney: Now isn’t it a fact that you did not own the 20 Riverside Drive property at the time you signed this application?
Mr. Karagjozi: I’m going to take the 5th on that. I refuse to answer on the grounds that it may incriminate me.
Anon 5:17:47
As much as we would all like to blame this on the Zudster - I worked in the Health Insurance field for 20 years. Believe me, it is probably their screw up not Zudis.
I'm sure Kara's crack HR dept. will get right on that benefits snafu, as soon as she has some time away from her many other duties. Hektor isn't around all the time anymore & she has to fill in as Director Of Befuddlement & Confusion in his place. So she's got her hands full.
To the person who labeled my Kara salary as "inflated", please page my wallet and bank account and let them know. They've been demanding an explanation. That was THE single funniest post here. You crack me up, Mrs. K! Nice try, though, really it was.
I hear Art Stock is looking into buying the Birch Hill & turning it into a sleazy nightclub again. I wish!
If your COBRA is not activated shortly I would recommend you contact the labor department.
Hey Zudi gets all the luck. One of the "satisfied customers" listed on the Kara Homes website as providing a testimonial is a guy named Eric Kaplan. I'm wondering if he is related to the bankruptcy judge Michael Kaplan? Well if he is, and if Zudi has done him right, that perhaps helps explain things.
And guess what this Eric Kaplan does? "Owner of a bail bond company with locations throughout New Jersey, Kaplan, who often works from home, especially appreciates the first-floor office next to the standard conservatory and family room.”The home is so big and the rooms are so spacious, I can easily combine work and family life without either getting in the way of the other."
This has the potential of being a "double winner" for Zudi.
Oh and when I went to look at Kara Homes website, I accidentally typed www.kara.com (rather than www.karahomes.com). That isn't a mistake I'd encourage you all to make.
Thats hilarious, that must be a new site. I just ordered myself a Russian bride.
For the people with the Cobra issues, if you do not have coverage and you paid Kara for that coverage. You should get the copy of the cancelled check and go to the E. Brunswick police and press charges for theft. They stole from you!!! The bankrupsy cannot protect them from that.
If any current or past employee has a 401K I would check to make sure that your deductions where sent to the broker.
This should be pretty cut and dry.
You should name Zudi, Perry Mandelom and Robbie Schultz. If I was in your position I would have gone right to the cops the minute I was turned down for coverage.
Maybe the Prof could give his opinion.
Anon 9:05, you are treading into an area that I'm not comfortable responding to with specifics. I sense that it is not "cut and dry" as you have characterized it. I think a likely police response, because of the complications associated with this case, would be a somewhat standard reply that “this is a civil matter.”
Assuming that it is the Debtor's responsibility to forward and not convert these funds for its own use, I'm guessing you could embarrass the hell out of Traxi and Kara by filing a motion with the Bankruptcy Court compelling the Debtor and Traxi to make those payments immediately. Might be a good idea to include such threatened action in a letter to the Debtor and Traxi. Filing such a motion would certainly show some level of mismanagement that might be entertaining to the aggressive creditors in the case.
Thanks to those who assisted me in pointing out to Anon 4:23 earlier today the fallacy of his position relating to the transfer of Zudi’s interest in the family home to Mrs. Zudi. I really enjoyed that "partial deposition transcript." Very well done and entertaining. I know a lot of people were hurt as a result of Zudi's actions but there is some value in adding humor to the situation at his expense.
Take care,
SCProfessor
From APP today (http://tinyurl.com/wxf45):
"Bruck said Kara will clear $1.2 million from the home sales, but that money might go to private lenders or construction companies that have liens on the properties, instead of into Kara's bank account. Where the money winds up was a matter of argument between Kara and a private lender Monday, but Kaplan put off that issue for another day."
Ummm...forgive me for sounding stupid, but when you owe private lenders upwards of $50M, is giving them $1.2M back really going to make a difference? Will the owners of these banks really sleep better at night? Wouldn't it make all the sense in the world for the judge to rule that the money go back to people who have put deposits on houses and whose contracts have expired? Those are the people who are not just out of money, but also out of a place to live and whose lives have fallen way off track. If the money doesn't go back to any of the customers, how will Kara ever sell another home again? Their reputation is already destroyed, shouldn't they be trying to rebuild it with the only thing that will allow them to continue as a company, attracting new customers?
Seeing as the way this case has been going so far, I wouldn't even be surprised if the judge lets Kara do whatever it wants with that money. Seems like Judge Kaplan is not treating it as a company which has mismanaged its money time and time again over the past few years.
As a contract purchaser who was screwed by Kara, I have to agree with the earlier poster-- my money went into you former and present Kara employees pocket whether you want to believe it or not. I really don't feel bad for you. At least you can move on with your lives.
This is to funny. I purchased a house from these crooks it was a big joke. But i guess i am lucky because i atleast settled and waiting on service. Which i doubt i will ever get. the process of building the house was funny Ican understand why he is bankrupt.I purchased at winding run the frist person i met was some rude lady she was dressed like she was a hooker she had the tightest jeans i think she could put on and a top so every on could see her fake breast.Then i meet the big boss and he was drunk as could be. Then i meet the frame super and he was stoned out of his mind.the blamed the town for every thing.Do you think maybe it is because they where stoned and drunk all the time and banging the whore in the trailer.
Thanks
DON
Tam
Mike
to Anon 10:29:
I seriously doubt you were a home purchaser. You sound more like someone who worked for Kara and had an issue with those certain co-workers. Just my 2 cents.
rather Anon 10:21.
re anonymous 9:38 i don't feel very bad for you either, scumbag.
At first blush, given the personal situation some of you face, I can understand why the Court's decision upsets you. Nevertheless, I agree with what the Judge has done here. I'm on his side for a couple of reasons that were not well explained in the news article.
First what these sales do is they remove homes from the bankruptcy and replace them with money. Let's face it, homes in New Jersey (and the rest of the Country) are depreciating assets. Their value tomorrow will less than it is today. Why not sell them? It generates cash (an estimated $1.2M) that can be fought over down the road. In the bankruptcy world we call that "transferring liens to proceeds." Lien claimants are probably sub-contractors, material suppliers, and "private lenders (I'm thinking it is Bear Stearns, but in this Kara world I wouldn't be surprised if some private lender had blanket liens on some of Kara's assets)."
The second reason is the sale of these homes eliminates the cost associated with maintaining security and other day-to-day expenses associated with ownership (taxes, insurance, etc.). Now it does raise the issue of expenses associated with post-sale warranty work. Yeah right, buyers. If you're waiting for warranty work, better make sure part of the seller's proceeds are used to pay for the premium on a home warranty policy. I'm guessing Kara isn't going to be interested in receiving your call on punch list items.
Anon 9:21, your point about the $1.2M should "go back to people who have put deposits on houses and whose contracts have expired," makes sense. However common sense doesn't guide Judge Kaplan. What does is the law (specifically the Bankruptcy Code). Sadly you are not going to like what priority is given to per-petition deposits. That is why I've repeatedly suggested you need to look at the potential these deposit bonds may provide in terms of recovery.
I want what all of you people are smokeing no one will see a dime.Zudi has it set up to pay BS
then pay others. Who does the money get paid to now that Kara is in Chapter7 Who is there representing the other homebuyers
who are waiting for money. Do not buy get your money put leins on other developements. as Kara Turns
Lets see who falls from Zudi now.\
SC Prof--
real estate in New Jersey a "depreciating asset?" Give me a break. Now you've demonstrated to everyone here your delusion.
Question for anyone - Now that he has his $2.6 mil and it really looks like he is out of financing options - at least in the U.S. - how long does this last,the company, Kara Homes Inc., Builder of Luxury Homes ?
I would say most homes are not depreciating - the homes under construction and in unfinished developments are definitely losing value, and the longer they sit the more expensive it will be to reconstruct and sell them, what builder is going to want to take on that task, unless they are just going to pay for the value of the property.
Anon 11:35:
Getting into a discussion with you about real estate values going down is much more easily handled by sending you to a Blog that references specific sources that say just that. For example, “The risk of a financial crisis is growing as home prices continue to fall and questionable mortgages made in the past two years go into default, finance officials warned yesterday.” (See http://tinyurl.com/y5s5b6 ).
If you want to find out what is going on, and are not blinded to the dribble the REIC puts out, then I suggest spending some time on The Housing Bubble Blog (http://thehousingbubbleblog.com/ ).
Oh, and of course I know that New Jersey is different from the rest of the Country. Land is in limited supply. Real estate can only go up. Yada, yada, yada.
Oh and I'll give Zudi credit for recognizing this. Yes I doubt that he just likes to give away $100K in incentives (see http://tinyurl.com/y8s33d )
One quick appraisal lesson related to this. Closing Sales Price - Incentives = Fair Market Value.
to the alleged buyer at Winding Run- let me get this straight, you had issues with every single Kara person you met yet decided to go ahead & buy one anyway? Goes to show that intelligence has zero to do w/ getting approved for a mortgage.
SC Prof
I can only speak from experience. I've been buying and selling houses in Monmouth and Ocean Counties, New Jersey for five years. Just closed on 3 in past two months for a profit after buying them a year earlier. Sorry but I have to believe that my real world experience with the New Jersey housing market is more realistic than a "real estate blog" and a "left coast" professor. I stand by my assertion...New Jersey real estate is not a depreciating asset.
Sure, RE values in NJ will always but always go up & up & up. Builders are throwing in incentives just out of the goodness of their hearts. All realtors are always brilliant geniuses, never lucky. No one who worked for a builder would have any idea about the market for the product. Like Steven Perry once sang, "Don't Stop Believin!".
To Anon 12:49
I can only speak from experience. I've been having unprotected sex in Monmouth and Ocean Counties, New Jersey for five years. Just had sex with hookers (3) in past two months and didn't get AIDS. Sorry but I have to believe that my real world experience with the New Jersey sex trade is more realistic than a "reading about STDs on a health related blog" and a "left coast" doctor. I stand by my assertion...New Jersey hookers can't give you AIDS.
I'll give you that one Anon 12:55...that was funny.
Thanks, Anon 1:04
Attention - Tuesday, December 12, 2006 9:38:29 AM
Maybe the buyers were the problem. If you people hadn't been so eager to give Zudi your money, his head might not have become so swollen so quickly. If you didn't fall hook, line and sinker for every Kara sales pitch, maybe Zud would have used more business discretion and would have more adequately prepared for tough times. You made it all too easy for him. Therefore, it's mostly your fault. Just as logical as your asinine conclusion.
Ok brainic - No homeowners, no reason to build houses. No houses to build, no reason to keep you on KH payroll. You must have been a PM up North, they definitely weren't the sharpest tool in the shed.
To: Tuesday, December 12, 2006 12:09:10 PM - I guess it shows what a quality sales staff they had at Winding Run! (insert sarcasm here)
Homeowners eager to give money to Zudi???? Come on, now former employees are blaming the people who bought houses from their company? What a joke, from where I sit, that reasoning sheds some serious light on why Kara went under-- the lack of intelligence of its employees! Maybe now that employees with this type of mentality have been let go, Kara has a chance.
Are you fucking retarded? It's fucking sarcasm, you morons. Obviously the buyers are not to blame, knuckleheads. It's just as stupid as implying that "your money" went directly into my hands, dumbass. Fucking brainless dolts.
And another thing: quit whining and playing special victim here already. Adding something relevant or interesting is one thing, but you can stick your stupid little smug proclamations straight up your ass.
Nice choice of words Anon 4:20. You must have been a great salesperson with your grasp of the English language. Did you threaten potential homebuyers with bodily harm that didn't put down a deposit when they visited your trailer? Very telling.
Anon 4:06 said, “maybe now that employees with this type of mentality have been let go, Kara has a chance.”
At the risk of sounding like a broken record, ‘Kara’s chances of survival are zip.’ The leadership you point to as “saving” this shell of a company is nothing more than a group of individuals focused on making money by uncovering or developing potentially unencumbered assets, that once found are immediately encumbered because of the secured super-priority Chapter 11 administrative claim Bear Stearns now has as the result of Kara’s borrowing money through this Bankruptcy proceeding. That is Traxi’s job. First and foremost to focus on being sure that Bear Stearns’ advancement of funds is not an “at risk.” It is not “at risk” because Traxi won’t let it be. This is evidenced by the fact that this borrowing agreement ends the moment Traxi is no longer in charge of day-to-day operations.
So, what do Traxi and Bear Stearns get out of this arrangement? Well the Bear Stearns take is crystal clear. They get a specified 15% per annum return on their funds. A typical basis for charging what in today’s market is a morally usurious rate is risk. That risk has been played up by Judge Kaplan in his comments from the bench. But is it really there? Absolutely not because of the well crafted order he signed which basically gives Bear Stearns security in all of Kara’s assets including pre-petition preferences. So there you have it for Bear Stearns. No risk. A15% interest rate. If things get anything close to dicey, they will simply pull the plug, preserving their secured status.
Traxi benefits because they now have a source of funding their “workout” efforts. If things go off as planned, I’m guessing you will see them collect at least $5 million in professional fees and then, at the end of this game, walk away saying, “well we did the best we could and got a few of the homes into buyer hands but at the end of the day the continuing debt service and the years of corporate mismanagement made it impossible to save Kara.
Frankly it is a waste of time to focus blame on Kara’s demise on anyone other than Zudi. It was his to loose as the 100% owner and decision maker (more likely an indecision maker based upon accounts I’ve read here on the Blog).
What truly bothers me the most about this situation is the terrible waste that will result in continuing this case as anything other than a Chapter 7 liquidation. It will get there. The problem is how long will this “reorganization” take and at what cost?
Re: SC, I would like to point out that this is almost exactly how you guessed it'd go back in October. Crisis managers + lawyers + outside post petition lenders = creditor frustration with not much satisfaction for anyone as a remainder.
My guess was that it'd drag on through the winter until it eventually came to an ignominious ending in court, with no one ever getting whatever they feel they deserve. Sorry if it's too much of a prophecy of doom for some to handle. But aside from the profits for the aforementioned corporate bankruptcy buzzards, where is there any silver lining anywhere in this mess?
All of this dopey bickering accomplishes nothing (it is pretty funny though). Every single Kara Homes Inc. issued raised on every single Kara Homes thread on this blog all leads back to one core flaw - bad management. In a situation like this, where you're looking for the responsible parties, you don't go down on the organizational chart, you go up. According to Kara's corporate roster, there was one individual ultimately responsible for the company's management decisions. That would be the CEO. All - not most- all of the blame falls on him. It is his company and its current woes reflect on him and his management style. Delegating responsibility within the company was his job, if those people he chose to fill various roles in his business weren't capable, that's his fault too. The decisions that led Kara Homes to this point were his decisions. He was certainly not shy about taking the credit when his moves were paying off. He likewise deserves his "bad credit" now. So let's all pile on while we have the chance. That way, at least one person involved in this will get what they "deserve".
Anybody willing to venture a guess as to when the ship finally founders? SC?
Goat?
You know it is largely dependent upon when you have an exhaustion of the easy closings. So far what we have witnessed with these few approved sales is everything is there. The homes are done. Certificates of Occupancy have been issued.
Now move away from these easy ones to situations where offsite and onsite work remains, the local governing board has made claims on bonds, etc., and I don't think Traxi will expend the effort. They are admitted "workout specialists", not builders.
Of course they will try to play the game as long as they can just so long as Bear Stearns' (BS) secured position remains adequate. The primary goal after all is to make money and the longer they keep this ruse going, the more money that will be made.
An indirect objective it also gives BS an opportunity to purchase the secured debt at a discount. If the situation appears as though this "reorganization" is going to have a lengthy and protracted lifespan, the better the discount will be for BS as it purchases the secured debts.
Wonderful game isn't it. Those Wall Street boys figure out a way to take your money and then in turn, use their year end bonuses to buy New Jersey McMansions.
Hey good news for the BS guys. The New York Post reported yesterday that, "Bear Stearns Cos. - start telling their staffers how big their bonuses will be. And with bonus pools up as much as 30 percent over last year, bankers have a reason to be merry." (see http://tinyurl.com/ydthuu ).
At least for some, it will be a very, very Merry Christmas, sadly at the expense of others.
Take care,
SCProfessor
This comment has been removed by a blog administrator.
My name is Zudi
I work on the second floor
I've run right out of money
I hope the banks want to lend me more
If you notice your paycheck's light
Some kind of trouble, your house aint right
Just don't ask me where it went
Just don't ask me where it went
Just don't ask me where it went
I thought it would be a good idea to reflect upon what SCProf said about the cost of this reorganization. You may recall that the $2.6 Million is suppose to be sufficient to keep this corpse of an entity alive for 13 weeks. Well, that means $200,000 a week, or $40,000 every business day ($28,571 every calendar day) will be spent to keep Kara alive. Does anyone else out there other than SCProf think this is a complete waste?
This company was a bad investment a year ago. Zudi projected 1100 closings in 2005 and he ended up with 590. What invester could look at that and say "let's loan this guy more"?
I remember the projections for 2005, the number was something really silly like 1312 or similar. Everyone just looked at one another like "huh?". This was during that company meeting in Edison.
Just remember who was in that room and said to Zudi it can not be done Zudi said if you can't do it then there is the door people left
who ever gave Zudi projections in 03,04 were on the money what happened to those people they spoke up to Zudi and there gone and he got Uncle hecto and robbie and Tom G they were going to do it they sure did look where Kara and Zudi are Now Bye Bye Zudi you should have Listened to those people....
Hey, word around the Kara watercooler is that they are trying to pay current employees any pre-petition wages and expenses.(including the missing 3 weeks) Can anyone verify this??
SC Prof, can Kara pay pre-petition wages now ??? I am sure you know that pre-petition Kara owed current and former employees three weeks salary before filing.
Any info would be appreciated.
re: - anon Tuesday, December 12, 2006 6:37
Just a wild guess? OK, I would say five, six more months or so before they pull the sheet over the corpse. This is only a guess, it's not based on anything concrete.
See me ride out of the sunset,
In my Beamer, forest green
Out to spend all that I can get,
If you know what I mean
Bankers to the left of me,
And lawyers to the right
Ain't got no cash, ain't got no checks,
Keep creditors outta sight
Cause I'm Z.U.D., I'm dynamite!
(Z.U.D.) And I'll win the fight!
(Z.U.D.) I'm a real big load!
(Z.U.D.) watch my debt explooooode!
I made a real nice land purchase in Stafford,
I really took those realtors for a ride.
My head swelled then fell right on off my shoulders,
Now I just can't seem to get me off my mind
It's a reeee-eee-ee-ee-eeal estate swindle
Gimme, gimme, gimme the real estate blues.
I built some McMansions in Sea Bright City,
The vendors really put up quite a fight.
The liens came and another stop-work notice,
Those defaulted loans they really blew my mind.
It's a reeee-eee-ee-ee-eeal estate swindle
Gimme, gimme, gimme the real estate blues.
Anon 3:43
The textbook answer is that the Debtor cannot pay pre-petition debts with post-petition dollars without a Court Order. Now having said that, here is the way they can get around it.
What they do is recast these amounts as a "staying with us bonus." You see this all the time in the big bankruptcies where existing management that isn't quite as inept as Zudi need to be provided with a "bonus" to stay on during the reorganizational period. These arrangements require bankruptcy court approval. Now don't laugh when I tell you that bankruptcy judges will give such an application a close look (maybe there eyes are not open at the time but the outside world doesn't notice).
So, you see they are not being paid pre-petition wages, just a bonus for being so loyal to the cause. I hope this clears things up for you.
SC Prof,
So here is my next question, I am at Kara I get the "stay on bonus" great!!!
But I have already filed my paper work at a pre-petition creditor for that missing 3 weeks. Do I have to tell the court I got this or can I also collect that pre-petition debt alos??
Anon 6:05:
Depends upon how the Application presented to the Court is worded. If it just characterizes it as a "Bonus" and doesn't include the fact that you are exchanging the Bonus in partial satisfaction of giving up any pre-petition claim you have, then you get to keep your claim, valueless IMHO that it is, given the Chapter 11 (and Chapter 7) administrative claims that will be ahead of it.
Interesting issue for you former KARA employees. Do you go in to court and personally and oppose the award of such "sticking around bonuses" or just let them go through? Hey how much did Zudi get a week? I'm guessing around $10K. That's only $520K a year, certainly a small amount given the importance of a businessman like him. So, 3 weeks @ $10K/week equals $30,000. Not bad given the circumstances.
SC Prof,
So as a un-secured creditor and former employee I can go to the next court hearing and object to the request for "stay on bonus" or do I have to address it to the Unsecured Creditor committee??
Prof,
I am another ex-Kara employee and I will be pissed if the people who stay there get a "bonus" and I would venture to guess that the contractors and homeowners who lost deposits would be pissed too.
If we cannot get to the court hearing would it be prudent to email Judge Kapplan and the US Bankrupcy Attorney who is working the case and let them know that we feel it is wrong to give "bonuses"??
Both email addresses are avaiable via the internet.
Also if anyone has a contact for the Unsecured Creditor Comm we could email them also.
What do you think?
You can certainly object to any motion brought before the Court as a creditor. These are public hearings. No backroom stuff here (well not a lot). Matter of fact, just so you will know all that is going on in the proceeding you may want to file a Request for Special Notice with the Court. Form used here on the "Left Coast" can be found at: http://tinyurl.com/y5mtgf . The NJ Court may have a different form but I'm betting if you fill out the caption (including Court) correctly and file it with the Court, you will have enough paperwork arriving in your mailbox to satisfy the scrap paper needs of an entire kindergarten class.
Anon 7:04, access to the Judge is limited to filing a written objection or appearing at the hearing and expressing your objection in person. Nothing wrong in writing the U.S. Trustee's Office to voice an objection and ask them to carry your message to the Court or doing the same with the Unsecured Creditors' Committee.
Seems to me in this case there is an alliance between the Unsecured Creditors' Committee and Traxi so I don't know as they would be your friend. On the other hand the U.S. Trustee's office might be more willing to voice your concerns to the Court, having lost on a Motion to Convert the Case.
One side note that isn't going to please you. This really isn't a lot of money. Yeah I understand your objection based on the principles of the issue. But remember, whether or not these existing employees get a "bonus" isn't going to have a likely impact on whether or not you receive a anything on your wage claim. It is just too far down the priority pecking order IMHO, to likely see a dime.
ScProf-
I am now involved with another builder that I am in the processing of placing liens against --- he's claiming this will force him into Chapter 11, and if he does go Chapter 11, any liens placed within 90 days of the filing are null, making me once again, an unsecured creditor. Is this true?
Anon 7:51
No it won't make you an unsecured creditor. I think he has you confused with someone who receives a preference within the 90 day period before the filing of a bankruptcy (I've talked about that in the past). Once he files you will need the Court's permission to proceed with foreclosing on your lien, but the time periods are generally stayed (because you can't proceed without violating the Automatic Stay under Bankruptcy Code Section 362).
OK, hopefully we've exhausted the talents of our song writers (Posts [especially mine] are too long anyway). I propose a new contest. We will call it, "Zudi Zingers." Goal is to search the Internet for press releases, etc., where Zudi is quoted, making one of this typical statements that, in hindsight, proves totally off base. Keep posting until Sunday at midnight. On Monday I'll collect them all, put them in a single posting and we can have a vote to see what is viewed by the blog readership as the "best Zudi Zinger." Oh and you must also post the Internet site for your Zinger.
My Zudi Zinger:
Karagjozi truly got into the market at a great time. Karagjozi said he knows boom times won’t last forever. He said his goal is “to be able to stay financially solid for the worst of times. Many builders cannot make it.”
See: http://tinyurl.com/y39jk4
http://www.builderonline.com
/industry-news.asp
?channelID=59&ArticleType
=1&ArticleID=1000026927
"Every six months we double"
http://www.builderonline.com/industry-news.asp?sectionID=718&articleID=2534
"Your only as good as your weakest link"
The top 50 most influential people in the homebuilding business list just came out in Builder magazine. Zudi wasn't on it!! To think, I sat through 100 Wednesday night meetings listening to Zudi claim he was the best in the industry. Do you think Builder changed the list after Zudi declared bankruptcy (incompetence)?
Anon 3:24, truth is Zudi should have been on that list. Look at how he has influenced the lives of his employees (current and former). Look at how he has destroyed the lives of many subcontractors and their employees. Look at how he has caused a number of construction lenders to rethink their loan disbursement methodology. Look at how he has enabled a few Wall Street boys to have an excellent bonus next year. These are all influencing and lasting effects of Zudi's brilliance and are being told in newspaper accounts across this Nation. If you don't believe how widespread news of Zudi's actions is, I'd encourage you to sign up at Google News for news alerts relating to Kara Homes.
Yes, Zudi is truly an influencing factor in the Building Industry in 2006 and is certainly noteworthy of mention as being among the top 50.
Just picked up the new issue of Bankruptcy Perspectives magazine. Kara Homes is listed as the 38th fastest tanking company in the US. Let Zudi know so he can order 750000 framed reprints of the article.
OK Blog readers, now is the time to “vote early and vote often.” I’ve placed in capital letters the ones that I think are most fitting for your comments.
http://tinyurl.com/y8tbrc
Asbury Park Press is looking for suggestions for 'Top Ten' lists
Posted by the Asbury Park Press on 12/14/06
STAFF REPORT
What comment from a New Jersey resident sticks out as the stupidest thing you heard in 2006? Is there one thing or place that keeps you from moving out of the state?
The Asbury Park Press is compiling top 10 lists with a New Jersey twist. We would like to hear your ideas on the following:
-- The stupidest things said (by New Jersey politicians, athletes and others) during 2006.
-- Points of pride in New Jersey.
-- FLOPS (SPECTACULAR FLAMEOUTS AND FALLS FROM GRACE AND POWER IN NEW JERSEY) DURING 2006.
-- YOUR WISHLIST OR THINGS THAT NEED TO OR SHOULD HAPPEN IN NEW JERSEY FOR 2007.
-- Things that bug you about New Jersey.
-- The things that keep you from moving out of New Jersey.
-- The top money-wasters in New Jersey.
Please forward your suggestions by e-mail to topten@app.com by Monday, Dec. 18.
I think Kara and Zudi can be represented in everyone of those categories.
Everyone, please send your list to the APP. What a New Years present for Zudi to pop up in the top 10 Screw UP list for NJ in 2006. It is brilliant.
“When I decided to launch Kara Homes, I knew from the previous business what not to do in terms of building partnerships in development and properties,” he said.
http://www.redcoatpublishing.com/spotlights/sl_04_04_kara.asp
Same site, another gem....
A good leader must make wise decisions while also showing that he’s in the trenches with his staff. Karagjozi spends roughly half of his time out of the office and on job sites because “they like to see the owner of the company rolling up his sleeves and working with people. That inspires them,” he said.
http://www.redcoatpublishing.com/spotlights/sl_04_04_kara.asp
A third gem:
To make all these things happen, Karagjozi says he must continue to focus on nurturing his operations and not to allow unbridled growth to overtake sound management. “You have to be able to keep control of your operations,” he said.” My philosophy is control equals opportunity.
http://www.redcoatpublishing.com/spotlights/sl_04_04_kara.asp
Classic Zudi, at his finest. Thanks for posting these.
http://www.industrialnewsupdate.com
/archives/2005/02/index.php
"It was all part of my training," said Mr.Karagjozi, who speaks with the kind of hyped-up energy common among rock stars and real estate sales people. "I understand what the masses want, and why shouldn't they have it?"
'Karagjozi is an accomplished musician, singer and songwriter. During the interview he will reflect on his life, his art and his personal philosophy of giving back to the community.'
http://www.highbeam.com
/doc/1G1-137686713.html
This is too good-these posts that bite Zhudi in the ass later.
All selections from APP article of Sunday 11-3-02.
"The Family Room has got to be awesome, whenever possible. That's the hook."
"It's Levittown for the BMW buyer".
"We try to give the best value for the lowest price" he said. "It's like the Henry Ford approach. Give value for the masses."
"First was timing, second was luck third was talent".
In reference to his Old Bridge problem in 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 the time and didn't know anything. My professionals are telling me I need offsite improvements that cost about $3.5 million and I'm saying 'What's and off-site improvement?'"
"You know the old saying 'No pain-no gain?' he said with a laugh. "I've had a hell of a lot of pain".
Regards.
Karagjozi truly got into the market at a great time. Karagjozi said he knows boom times won’t last forever. He said his goal is “to be able to stay financially solid for the worst of times. Many builders cannot make it.”
http://64.233.161.104
/search?q=cache:Dj_V2wb9ZNIJ:
www.industrialnewsupdate.com/
archives/2005/03/
making_a_good_f.php+
Karagjozi+2002&hl
=en&gl=us&ct=clnk&cd=11
Builder magazine September 2002, pg. 118.
"Every six months we double."
"My lease favorite words are wait and can't."
"We are a sales driven company. We have 10 salespeople, and I don't limit them. They know I want them to make the money."
Looking at my copy, whatever happened with the Kara Cares add campaign after the towers came down where Kara "will donate $1,000.00 for each of the next 100 homes we sell to funds benefiting the children of americans who where lost as a result of these tragic events". Did he actually follow through, or did he keep the money? Nobody knew then and nobody probably knows now - except maybe John or Zhudi.
The day manager at Boston Chicken on 18, 'Hi this is Zhudi Karagjosi, former President and CEO of bankrupt Kara homes, just up the road. He will serve mashed potatoes and gravy today because nobody does it better faster and cheaper.' 'More gravy jerkhole.' says a little darling out to lunch with his unemployed carpenter father.
East Brunswick-based Kara Homes, which has built several developments in Monmouth and Ocean counties, has also been adjusting to the market, owner Zudi Karagjozi said. The company started to see a slowdown in sales in October and November, he said.
It had to cut costs, including laying off 20 to 25 percent of its work force over the past six months, he said. He would not say how many workers were involved. "We have pared down the company in size," Karagjozi said.
The company also has given incentives to buyers, such as giving a credit on options, to help make a sale, he said. "It hasn't been much, but a little bit."
Kara Homes also has reduced the price of some of its homes, he added.
Now Karagjozi said he is optimistic. The company's revenue has increased by about 25 percent for the last six months over the same period last year.
"The most important thing is (it's) legitimately not as bad as people perceive it to be," he said. "The buyers that are coming out right now are buying, that I can tell you. You might have lost traffic, but they are buying homes."
http://www.real-estate-in-new-jersey.com
/index8-1-06.html
What a laugh. Thanks all you guys.
http://www.thegalecompany.com
/main.aspx?
Content=ConstructionNew
AssignmentsJan2004
Kara Homes - Kara Homes has hired Gale Construction as construction managers to manage both the design and construction of their proposed 50,000 square foot office building headquarters project in Old Bridge, New Jersey. This $7 million project will be in the design phase for the next two to three months with construction starting in April with a scheduled completion date of March 2005.
“We have our fundamentals on how we invest and analyze properties, but it’s the human capital that I have the greatest appreciation for,” he said. “You’ve got to hire the best. If you build the foundation of the company with less than the highest level people in their respective disciplines, you may have to compromise the standards that you want the company to have.”
"This is a unique renaissance for the New Jersey Shore. We are restoring Sea Bright to its former elegance. We believe we're accomplishing this with our new, luxury, single family Estate Homes. There will be nothing like this on the whole of the Jersey Shore." says Zudi Karagjozi,founder and president of Kara homes.
http://www.prweb.com
/releases/2005/2/prweb205511.htm
Kara Homes’ president advises home seekers to purchase soon
Posted by the Asbury Park Press on 03/26/06
Responding to the indecision that many buyers are experiencing because of negative news about the real estate industry, Zudi Karagjozi, the president of Kara Homes, emphatically advised, “The time to buy is now.
“It’s clear that the real estate market is undergoing a correction, the depth of which is uncertain,” Karagjozi said.
“But whether you are trading up or down, builder incentives, low interest rates and a diminishing supply of building lots are making it advantageous to buy a new home now.”
http://www.answer.co.za/1n283n2dY331
Songwriting and creating new houses have more in common than you might think, Karagjozi said. He compared the house's entry to the beginning of a song: "If you can't grab someone's attention in the first 10 seconds, they change the radio station," he said.
Do you believe that even now Zudi still thinks Kara will be back on top in a year or so. What an idiot
Yes I believe it; he still is talking about buying lots once he gets past this pesky bankruptcy
FYI - Dec 26th Hearing
At this hearing the Judge Kapplan will be asked to approve the motion to pay pre-petition wages to the existing employees.
If you have a problem you should email the US Attny
If anyone has that email address please share it with the group.
Anon 9:16
Interesting if true. I'd love to look at the Application and its points and authorities. Any chance you could scan a copy ans send it to me as an attachment -- email is smiller1961ca@yahoo.com
BTW, contact isn't the U.S. Attorney, but the U.S. Trustee.
Sorry, can't type this a.m. "scan a copy and send ....
re: anon 8:14- that is too funny. Maybe Zudi should worry about the current lots instead of the future ones. Does he have any concept of humility? Seriously, a few measly months ago, Kara didn't have a port-a-potty to dump in or any TP for afterwards. That man needs a solid smack in the head.
I wonder if Zud & his pals at Amboy Bank will be sponsoring the 2007 builders show in AC, like they did in 06? Maybe they have a trophy for "Quietest Job Site", or "Largest Defaulted Loan"?
Why isn't Zudi here? See:
http://tinyurl.com/y9yzu9
2006 Legends of Housing Award
“These awards recognize individuals who have made a substantial, measurable and lasting impact on housing New Jersey families.”
Now in Zudi's case, they may be negative in their result, but who could argue that his impact has not been substantial ($300M in debt), measurable (the financial and emotional pain caused by his actions), and lasting (some people may never recover from the results of his actions).....
Kara Homes exceeds projections in 2006
Posted by the Ocean County Observer on 07/20/06
Zudi Karagjozi, owner of Kara Homes, has announced that sales and profits for the first half of 2006 will exceed both original expectations and prior year first-half results.
"We are continuing with our cost reduction programs, improving efficiencies and streamlining our company. These efforts will enable Kara Homes to prosper in our ever-changing real estate market," he said.
The East Brunswick-based firm, founded by Karagjozi in late 1999, has gained national prominence as one of the nation's largest and fastest growing home builders.
Kara Homes began growing at a meteoric pace in 2000, its first full year of business. The firm, which was named "Fast Track Builder of the Year" by Builder Magazine in 2002, has remained on top of the list of America's fastest growing building companies, placing second and seventh on the Builder Magazine fast-track survey in 2003 and 2004, respectively.
Kara Homes has also been noted as one of the nation's largest home builders in the professional Builder Magazine list of "Building Giants."
"The growth we have enjoyed has truly been a team effort," Karagjozi added. "We will never forget the support of the financial institutions, trade partners and employees who believed in Kara Homes and put forth extraordinary efforts. We are also grateful to the home buyers who have not only invested in our homes but who have recommended our communities to their friends and relatives."
I couldn't make up this quote. You will find it at the link provided below. I'm not really sure what it means. Perhaps some of you Kara Employees (KEs) or Former KEs could help the rest of us understand its meaning....
PRWeb - looking for a new home in New Jersey to find the best place to retire, rest assured that one of KARA HOMES active adult Students in the Massage Therapist program will also have the advantage of training in Spa Pima, a luxurious, newly-completed
http://www.thai-entertainment.net/
Good article on December 12th in the Ocean County Observer, discusses the remaining improvements that are needed in four (4) Kara subdivisions and the County's plan relating to claims on the performance bonds.
"The township will ask bond companies for public improvements to be completed in the four Kara developments, where no work has been done, and in the King of Kings Church area. Shives said these bond companies are being notified of the township's intention of taking "foreclosure action" if they refuse to have the work finished, but that he does not expect this to happen. "Foreclosing" would mean trying to capture the bonds from the bond companies in court."
See http://tinyurl.com/ycholp
Hi SC,
I couldn't figure out what that article was referring to either. My only thought was this; In early spring of this year I was at one of the developments, (active adult comm.) and one of the sales reps told us about having one of the residence being a massage therapist, who would be available for the people who lived in the community. The women was actually present and I believe handed out a brochure or something. Could this be what the article was about??? Who knows.
'It must be in the genes. Zudi Karagjosi grew up in a New Jersey household where his engineer father would bring home electrical engineering blueprints of projects and his mother was a residential real estate broker (who sold more than a thousand homes in one year). His dad, after a quarter of a century as an engineer, also got into real estate brokerage. So it seems quite natural that Zudi gravitated into the business. Today his 60 employee firm is among the top 150 privately held builders in the nation.'
'We discussed houses, how to put deals together and that kind of thing.' he recalls. But before he lauched his successful company, Kara Homes in East Brunswick, Zudi went to college in New York and California, developed a singing voice and became a songwriter. A guitarist, he has been penning songs for 25 years and has worked with many well-known musicians.
Blah blah blah, on and on. You can't make this crap up. See how he became such a lieing piece of &$@$ BS artist? I want to throw up now.
I'm in the business of creating the american dream."
"We know the amount of suitable land for new construction in New Jersey is shrinking," said Mr. Karagjosi. "At Kara Homes, we are always looking for new opportunities, taking action with great speed so that we may acquire the land and get the process moving."
How bout this one.
"Building well-designed homes with expert craftsmanship and top quality materials is a way of life for the team of architects, engineers, construction specialists and sales professionals at Kara Homes."
"people find our homes breathtaking from the minute they step inside the door", said Zudi Karagjosy, president and founder of Kara homes."
"One of the most challenging dimensions of our work is our attention to streetscapes."
born and raised in Queens and Long Island, NY, Zudio Karagjosy grew up with his brother and sister in a home where both of his parents were in the real estate business. His mother was a real estate broker and his father worked as an electrical engineer on such projects as working on 20 strories of the World Trade Center, designing electrical systems."
"Early on, Zudi developed an interest in music as a guitar player and songwriter, which led him to compose a total of 200 pop/rock songs and work with Eric Clapton's drummer as a musical producer."
Regarding his business strategy for the future, Mr. Karagjosy remains realistic. " The economy dictates how fast we grow," he said. "The true test for builders in New Jersey is to stay in business during the tough times."
in 2000:
"We're all a team," explained Zudi, who confesses that he learned firsthand about teamwork while playing football in high school.
"What matters to us is integrity from start to finish. We believe that our home buyers are entitled to well designed-well built homes. We follow through on warranty details and try to satisfy every customer. That's how Kara Homes defines success."
In his late teenage years and into his 20's, Zudi Karagjosi juggled 2 jobs. By day he sold real estate in the Floral Park section of Queens, NY. By night, Karagjosi was a rock and roll guitar player and songwriter. Karagjosi reluctantly abandoned his music career in the 1990's, but it taught him valuable lessons he uses today as head of Kara Homes.
From New Jersey Business, Oct. 2000
"His reputation as a builder's builder is as solid as the poured concrete foundations he uses for his homes."
Same article near the bottom:
"Karagjosi grew up in a real estate-oriented household. His dad, an engineer and later a real estate broker, and his mother, also a real estate broker, often talked about the business at the dining room table. Zudi attended college in New York and California, worked in the commodities market on Wall Street and got into building in 1979. He lived with his wife and two daughters in a home he helped design and build in 1993. A singer, songwriter and guitarist, he has an artistic flair, which he has brought to his home building."
Snippets from Home Tribune Business, Sunday July 13, 2003.
"I generally like to satisfy people. I'm one of those kinds of guys."
"I saw how he was doing well, and said, "Wow, this is an interesting business."
"I try to be the best at what I do... And I ultimately want, in my business, (to keep) home buyers happy and try to give them the american dream. Ultimately the greatest compliment we get is to satisfy our home buyers. And by keeping them happy, we build our company up."
Karagjosi said he believes in healthy competition. "We're trying to provide the consumer a better product. That is our obligation. That's the mandate of our company. And I believe that's the mandate of our competitors... He who brings the best product to the market deserves to do well... That's the american way."
Not having anything else to do tonight, I put the last 15 or more zingers up on the blog from my old Kara article clippings file for your enjoyment. And quite frankly, not having read them since they were filed, and reading and seeing again how totally egotistical, manipulative and disengenuous he is it makes me want to puke. Every story I have here has a different spin on his name, his family, his work history, his musical proclivities, etc. Isn't he great at just throwing all kinds of little things into his bio? Doesn't he know just how to tug at your heart strings? Makes you want to admire him and buy his BS and his homes right away, doesn't it? Football, Eric Clapton and everything else? I mean there is so much spin that my head is realing just going through all this stuff on my desk. Who is Zudi Karagjosi? Having known him for years, who the hell is he? Is his whole life a big diabolical lie?
Great quotes...... What I believe would be a compelling story is the effect the Internet and blogs like this will have on people like Zudi. If you have done as I have and created a Google News Alert, almost every time the name pops up in an article, I get an email linking me to the source. That Stephen Clark (a subcontractor) story about he and his 5 kids having a lousy Christmas because of the bankruptcy and not getting paid has been in dozens of newspapers across the nation and will be available on the Internet for years to come.
You know it is one of those, you can run, but you cannot hide things. Zudi's life, from a practical standpoint, is ruined. All one has to do from a practical standpoint is after interviewing him for a position go into Google and type his name. I guess he could (and probably should) change over to his wife's maiden name. After this screw-up, if she stays around she will probably be wearing the pants in the house anyway.
Keep those quote coming and don't forget their web address. Also a reminder to vote for Zudi [early and often] for New Jersey screw-ups on the Asbury Park Press's 'Top Ten' lists (see earlier posting). Voting closes Sunday night. The web address is:
http://tinyurl.com/y8tbrc
Take care and have a great weekend.
SCProfessor
Vote for corzine-- who said at the legislators meeting back during NJ shutdown--Be BOLD, Be Bold ,Be Bold, cut property taxes.
He then cut out any changes that the legislators wanted, pertaining to teachers and unions. Because he knew they were having a massive rally.
This will affect taxpayers state wide.
Vote Today, just like when we put him in office, to cut taxes.
The best thing about Kara's bankruptcy is that it finally got Zudi to stop gloating about himself for a second. The guy had a great 02-03 & never quit bragging about it afterwards. He loved giving himself all the credit too, like his business wizardry was so far ahead of the curve. Now of course he's the victim, outside forces out of his control are to blame for his problems. Everyone else takes the fall while he looks for sympathy and worries about his "name". He's just one of the all-time great narcissists & he wouldn't understand "humble" if you tattooed the definition on his chest.
He'll learn about humility when he's completely broke and all his fair weather friends(parasites) have abandoned him.
Don't forget to send Zudi a Christmas gift. See http://tinyurl.com/y6cuor
for ideas......
Anon 6:37, too funny. Be sure to scroll down to the third row of "gifts" where the ones that may be the most fitting of the selected "gifts" can be seen.
Zudi's stupid musician references were really annoying. Maybe he'd have been better off if he'd gigged with Clapton's mason or his carpenter instead.
I am surprised nobody has talked about Zudi's math skills. Does anyone remember,
"If I get 200 closings at $500000 a piece that will generate 1.2 million and with that I can close another 100 homes and make that 3.4 million and by next week we will be a billion dollar company!!"
Then he would look to Tom G or George B to verify those numbers and they would both nod their heads in agreement. (what pussy's)
And now the company is in Ton Gough's hands. Isn't that funny. THe guy gets in trouble for making sexual advances at female employees. Tries to sleep with ever woman in the place by telling them he can't stand his wife.
What is also funny is he acts like he cares about the companies bottom line but when his house in Little Egg was getting built he was upgrading the house left and right without telling anyone. Hey Tom did you ever tell anyone about those upgraded windows you never paid for and forced construction to put in.
A new article on the situation many Kara home buyers appeared today on the Asbury Park Press website. Titled, "Holiday blues: Kara Homes bankruptcy turns lives of prospective buyers upside down," you can read it at:
http://tinyurl.com/yauc3c
The article keeps pointing to the fact that "there are 300 home buyers who had signed contracts and made deposits." Former and existing Kara employees -- Is that number accurate or typical Zudi math (too high)?
I think you will see a number of home buyers give up soon and follow the route of buyers like the Tianos family. They "have asked U.S. Bankruptcy Court Judge Michael B. Kaplan to force Kara to either let them out of their contract or give them a schedule as to when their house will be completed."
Plus or minus 300 is an accurate number and it's a real mess for Zudi. He won't be able to bum a dime after this.
Not to worry about Zudi. After Christmas dinner that includes Mommy Rose's wonderful Armenian Christmas Pudding (for recipe see http://tinyurl.com/yxggdm ), Zudi is going to make a wonderful announcement to the family. On the 26th, suitcases packed they are heading off to the new promised land, Armenia to join Uncle Hektor.
Fortunately for the family, Zudi was smart enough to develop a 'golden parachute' plan to cover his departure. Seeing the writing on the wall last Spring, Zudi developed a $100K incentive sales plan designed to bring in buyer deposits. He established a new company called "Armenia Title and Trust Company," headquartered in Yerevan. Buyers' deposits are being safely held with that Company. To insure their safety, Uncle Hektor was dispatched to Yerevan two weeks ago and has taken over management of the Company, pending Zudi's arrival.
The only thing Hector could manage is the application of hemorrhoid cream. That he is good at!
from http://www.hoovers.com
Kara Homes cares about the state of the homebuilding industry. The company, which filed for Chapter 11 bankruptcy protection in 2006, builds single-family homes, condominiums, townhomes, and active-adult communities in New Jersey. Kara Homes has developed more than 40 communities throughout the Garden State. It was founded by Zudi Karagjozi (who is also a singer, songwriter, and musician) in 1999. Kara Homes was named to Inc. magazine's list of the 500 fastest-growing private companies in both 2004 and 2005. By 2006 slowness in the housing-sales market had taken a toll on the company.
Guys, the Zudi clan is from Albania not Armemia that is where the Hovanians are from.
Get your facts straight before you start accusing people of hiding money.
There is no hidden money, Zudi and the accounts paid the money out as it came in. He was not that smart.
You got to understand, Zudi and John Fig the CFO where robbing Peter to pay Paul
To show you how inept they were, Kara actually had checks sitting in Legal that they never deposited. John Fig was managing the the closing dept. and it still was a mess.
In the article the Bruck mentions they are looking for financing, that is bullshit. They are trying to figure out how to keep Kara going. Trust me when I tell all of you homebuyers that Zudi does not care about you. He is more concerned about the Kara brand.
The APP should place a link to this page. Also, to the moderator, how much have you made since the Kara debacle began? I can see your traffic has increase 10 fold are you at least selling add and links?? The moderator has is the one who has made out like a king since October
I can't even begin to describe how unorganized and chaotic it was there. There was no upper management oversight or control. So much money was wasted on stupid things and useless people. There are way too many examples to detail here. There were lots of really good people at Kara but no matter how much you tried to give a damn, it was like swimming against the tide.
You could not believe the talent
of Building and construction people
that Zudi had working for Kara Homes Zudi Could have had one of
the best and fastest growing Companies if he would have left construction to some of the people he hired.Instead he listened to uncle Hector and Reberta Shultz
and now Kara is in the shitter there is no turning back.
Happy Hoilidays to the people who gave it there all and got nothing in return but a have a nice life. not even a heart felt thank you for putting up with this. Zudi just like when he had people fired Zudi could not do it himself he sent his flunkies. Zudi is not a man he is a mouse. He will not face anyone . People died for this man and he again could not go to the wake and face the family. Such a caring man Zudi is he cars about Him and that is why he is where he is today " WHAT GOES AROUND COMES AROUND" I guess it's your turn Zudi..
TG was always more interested in trying to work his way into the pants of women way out of his league than in helping Kara Homes get anything done.
Kara homes has a really nice power washer for sale, can be seen in perotti;s truck if you are interested.
My God those Zudi quotes are SO obnoxious! I wonder if he's ever said anything publicly that wasn't total bullshit? Just think, he had to go out of his way during every interview to make sure he mentioned the musician thing, it's in practically every article. How very relevant.
It's not just about the music. There is so much more. He had to have proofread every article and brochure put out by Jablonski and Bermann prior to it going out to the public to make sure he got his ever evolving story straight if asked later. What I want to know is how can a guy keep from endlessly tripping over himself if everything is a big, diabolical lie? How did he keep anything under control? Probably one of the reasons why he shut himself off from the rest of the office with Brandt on one side and Hector on the other.
Again I say, who is he he? Is he Zuhdi or Zudi? Is he Karagjosi or really Karagjosy? Was he a football star in high school at a mere 135 lbs? Did he really jam with Clapton's drummer and Bon Jovi? (What about the letter he received demanding he stop using an unnamed rock star's name in his advertising?) Did he write 200 pop songs? Where are they? Have you heard any on the radio? Was he a successful comtrader? Why did he stop doing that too? Did he start in construction in Queens at the very exact moment he was supposed to be either at UCLA or Boston in school? At the age of 20 how could he have successfully sold homes by day and be a rock star into the wee hours? Why did he quit that job if he was so successful? I submit everything was a total fabrication, just a huge sales pitch. I wonder how much is attributable to sitting as a teenager at his family dining table hearing their bullshit? You never see anything in writing about his restaurant experience because it's truely a failure, another BK, and he didn't want that to be his defining story.
He successfully (for a while anyway) reinvented himself from a street punk with few options into this superhuman builder's builder / singer / songwriter / family man / salesman / sailor (for a while anyway) / football player /commodidity trader/ politician's best friend / board member / puppy lover, and many other things.
I, anyway, will remember him as you will, dear reader, most likely as a total failure.
Question-what was the backstory re: Stephanie? She came on board very suddenly and appeared to have a lot of leverage w/ the Z-Man but she was always kind of drifting in & out. I know about her pre Kara background re: McGreevey but I am asking strictly about her & Kara. Everyone singles out a few other names and rightly so but no one ever mentions hers. She appeared right around the same time as the other two (rhymes w/ "hobbie" & "schmekter") and caused almost as much mayhem IMO. Community & political affairs to warranty service is a pretty weird jump to make all of a sudden. What was that all about?
Zudi's Slut Ho Girl Friday
what ever Zudi wanted her to be for her salary.see you at the Movies. the title Zudi keep the company afloat
Kara homes the rise and fall of
the Karajozi Empire..
any comments om big bad momma i hear shes still there
Robbie is not going anywhere. She fired her HR asst sothat Perry and the boys would only have her to rely on. Plus, that model in Woodlake is killing her. If she get termed. she will have to file personal BK and Zudi feels like he has to protect her because she moved from Michigan to work for him. He does have a heart!!!!
What are the odds that the existing kara workers are going to get their 3 weeks back pay next week (after the Dec 26 motion)
None I Hear that Kara will not be around after DEC 26 unless the company is bought by Magyer becomes the the only Debt holder
Zudi wants the bank to buy the projects.
Maybe if some of the upper management did their jobs instead of looking for someone to blame after the fact, some of this could have been prevented.
How many times was a certain Senior Project Manager of Stafford & Little Egg Harbor in the strip clubs or out cheating on his wife instead of doing his job. He should have been at the job, not on his boat or with some ho.
The theft alone could make you choke. Some of those managers funded their own home renovations with company products and labor. Others weren't so discrete and extorted money or services from vendors in exchange for their invoices being processed.
There were times where hotel rooms were comped & prostitutes paid for by those same vendors at the AC trade shows - again, in exchange for the promise of more work.
Maybe if some of the upper management did their jobs instead of looking for someone to blame after the fact, some of this could have been prevented.
How many times was a certain Senior Project Manager of Stafford & Little Egg Harbor in the strip clubs or out cheating on his wife instead of doing his job. He should have been at the job, not on his boat or with some ho.
The theft alone could make you choke. Some of those managers funded their own home renovations with company products and labor. Others weren't so discrete and extorted money or services from vendors in exchange for their invoices being processed.
There were times where hotel rooms were comped & prostitutes paid for by those same vendors at the AC trade shows - again, in exchange for the promise of more work.
I no the low life your talking about. Some of us lost work to subs that were greesing his palm.
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