"It's by sheer luck Kara Homes went bankrupt.''
"EDISON — Township officials plan to borrow up to $15 million to be used at a bankruptcy
auction in an effort to buy 27 acres of land Edison hopes to preserve as open space.
The tract, off of Woodland Avenue in north Edison, was owned by the now-bankrupt Kara Homes, an East Brunswick-based developer that planned to build 22 homes priced from $1.35 million on the property. Kara Homes filed for bankruptcy in October."
Full article...
auction in an effort to buy 27 acres of land Edison hopes to preserve as open space.
The tract, off of Woodland Avenue in north Edison, was owned by the now-bankrupt Kara Homes, an East Brunswick-based developer that planned to build 22 homes priced from $1.35 million on the property. Kara Homes filed for bankruptcy in October."
Full article...
posted by Little_Silvered at 6:37 AM
181 Comments:
He sure has a way with words... sheer luck that people lost their jobs, contractors cannot get paid and homebuyers are out millions of dollars! yes, sheer #%!&@ luck.
What I think he meant was, it was fortunate that Kara did not begin construction on that one particular piece of property, thus leaving Edison with one of Kara's half-finished eyesores.
If the winterization doesn't begin until March 21, will it then become "springization"?
So, four months after the fact, the re-organization plan is as follows: go to court again & beg for more money in order to give Zudi a place to go every morning (besides his lawyer's office, that is), auction off more properties (which is what everyone suggested even before Traxi came along with their valuable input), and continue praying to the real estate gods to deliver some miraculous company-saving loan. Brilliant. Then, Kara will somehow turn it all around & begin building again, with the exact same people in control. Sounds like a recipe for mega-success if you ask me.
KARA TAKES OUT THE GARBAGE --- See the article in today's Asbury Park Press that explains what happened. Available at:
http://tinyurl.com/2s8e5n
According to Phil Maconi, regional project manager for Kara, "The men and women that are left in this company are working triple-overtime to get things done."... "I think everybody has been showing their true colors."
So Phil, what are Zudi's true colors and why, if their working "triple-overtime" did it take almost four months since the filing of the bankruptcy to take out the trash?
What an absolute crock. Kara didn't do anything to remove any trash anywhere until they were threatened. Then they pat themselves on the back for a job well done. No one at Kara is working any overtime at all & everyone knows it. That trash has been sitting there since the summertime, Maconi has had plenty of time & the vehicle to move it with too. Maybe it'd have been done earlier if he was actually on site instead of hanging around the Kara HQ every day for no reason.
They could have paid to have the garbage hauled away for the price of what any one of Zudi's buddies makes in a few days. They chose to ignore it, like Maconi says, they have bigger issues there, like continuing to pay themselves.
Winterization, springization... no how about Karaization. You know, where you promise to do something in the future, get paid for doing it, provide an endless string of excuses as to why it has not been done, blame others for not allowing you to do it, borrow money to pay for the staff salaries required for additional planning to do it, .........
Phil Maconi is an imbecile. Couldn't they have found a credible mouthpiece?
Phil is the only one left. Most of the other field personnel are gone. Would you rather have John Kelly talk with the press? Phil has to work triple overtime because it takes him that long to accomplish what competent construction professionals can do in a regular work day. I wish I could feel bad for them but I think those that are left are unemployable chumps.
Hey guys, look at Kara's New Business Model.
http://tinyurl.com/3x9k2e
What is really funny is that Marconi use to be Zudi's car mechanic. Now he is the mouthpiece for Kara Homes. (scary)
What happened to that great Marketing Dept??? Or that great public speaker Tom J???
I thought that guy Burhman was supposed to talk to the press. He had that dumb as a stump asst Christina right?? (she had no idea what marketing was) Did Zudi fire them also???
No, they were smart enough to bail with their last paycheck intact.
re: 5:20:57 PM - then after you are threatened with legal action or fines, you do the bare minimum & act as if you just moved heaven & earth for the sake of the customers you ignored until they screamed loud enough for the local press to hear. I see Phil learned very well at the feet of the master bullshitter.
After he saved the day, did Phil change back into his street clothes, or did he leave the SuperMan-ager costume on when he flew back to the Fortress Of Solitude aka the accounting office?
Hey Phil M (we know you read this),
How stupid are you to put your name out in the press to be associated with an idiot like Zudi and Kara Homes!!!!!
Has driving around in that big ass truck of yours (with the windows down) finally driven you to have a breakdown??? Do you not think that when the company collapes you will be thrown to the wolves like the rest of us!!!! You can't be that stupid.
Or do you still want to be a member of the Karajgozi family so bad you will do whatever they ask. Is it true you are waiting for Zudi's daughter to turn 18 so you can hook up with her, get her pregnant and finally be able to call Zudi, DAD!!!!
Just curious.
I heard that Kara's Marketing Department (BIll and Christina) where the inspiration behind the film, Dumb and Dumber!!!!! or Lady and the tramp with Bill being the Lady!!! !!!! !!!! hahaha
They haven't had a marketing dept for a long time now, I dont get the relevancy.
Wow, Kara Homes managed to take out the trash, the sky is the limit now. Who knows what heights they'll reach now, maybe in another four months, they'll fulfill another one of their obligations. They're working double-secret-deluxe-triple overtime up there in hopes of possibly achieving their central goal for 2007-finishing a house. At this pace, expect to see serious results on this by 2008 at the latest.
Could you imagine Phil Marconi calling Zudi, DAD. That would be Zudi's worst nightmare.
Can anyone shed any light as to what George Brandt is up to at Kara. I see from the motion he is still on the the highest paid people at Kara. What is he doing now??? Oh, did I see George B star in the Geiko caveman commericals as the caveman????? Looks just like him
GB is the executive vice president of office occupation & chair-warming.
GB does look like the Geico caveman. I just saw the commercial and the resembelence is striking.
HE has always been the EVP of Chair warming. What I always loved was watching him cower to Hector. He must have felt like a child everytime Hector put him in his place.
Don't get me wrong Hector is an idiot but at least he never claimed to know anything about building houses (why he was in that position still baffels me) But GB thought he was an Aria Hovanian.
GB spent more time trying to get R Schultz fired than anything else.
GB's wife looks more like a caveMAN than he does. hahahahahaha
Hey, whatever it takes, triple OT, around the clock, 24/7, whatever. Kara Homes will do whatever it takes to get those trash piles winter-ized before the first snowfall.
For any of the 300 families duped by Kara, go to the following link and petition Gregory Paw at State AG’s Office, Department of Criminal Justice. Kara intentionally lied about their financial stability and consequently defrauded many of us. We’ll likely never get our money back, so at least we can make sure these crooks get what's coming to them.
http://www.state.nj.us/lps/dcj/tips.htm
Thanks scprof for a gloomy but probably accurate analysis. I guess the creditors committee feels the same way since they don't even bother to update their blog about what is going on. This situation is such a waste. Only ones benefiting are Kara employees and Zudi, drawing paychecks for doing useful things like taking away the trash. But then again they are working triple-time and who could fault them. After all, the work involved in hiring a garbage service must be exhaustive. What a joke. However it is hard to laugh as Zudi and his friends cash their paychecks each week at the bank.
Hey, today is once again begging day for Zudi. Sort of reminds me about the way we squander medical resources. Spend countless dollars in drugs and surgical procedures where everyone recognizes the patient is going to die anyway. According to the Asbury Park Press:
On Jan. 29, U.S. Bankrupcy Court Judge Michael B. Kaplan will consider whether Kara can receive the balance of a proposed $5 million line of credit from Plainfield Special Situations Master Fund Ltd., a hedge fund based in Greenwich, Conn.
What if Kara is forced to liquidate by the courts? Isn't it likely that homebuilders would line up to buy these communities from the banks, especially at the fire-sale prices the banks will surely offer to clean them out? And if that were the case where would the homebuyers with deposits stand? While clearly they would be sold without any liens, would it be any different as compared to if Kara auctioned them off as an ongoing entity? They would still likely reach out to negotiate with the former buyers, right?
A new article is up on the Asbury Park Press site. It relates specifically to the release of four homebuyers from their contracts. The terms of the compromise are characterized as "confidental." You can read the article at:
http://www.app.com/apps/pbcs.dll/article?AID=/20070129/NEWS/70129023
Kaplan is a moron. What "progress" has there been? What evidence of reorganization has he seen, because no one else has seen any. What a farce.
Judge Michael B. Kaplan approved a loan from Plainfield Asset Management LLC and said the home builder has made significant progress in its reorganization.
"There's been progress in this case,'' Kaplan said. "It may not be readily apparent. You don't have nails pounded into boards ... but we're moving in the right direction.''
There's the proof, Kaplan is a nitwit & probably on the take, too. I guess individual creditors will have to take matters into their own hands since the stooge judge is more concerned about saving Karagjozi's worthless ass.
Not readily apparent? So he knows something no one else does? He admits that, no, there isn't anything actually going on that anyone can see, but there's progress taking place on some other level. What, they paid the deli bill & can order lunch freely again? Maybe "progress" is insider bankruptcy court slang for "Traxi's profits". Well, at least the unsecured creditors committee doesn't have to disband yet, what would we do without them?
scprofessor, please stick around... we really appreciate your thoughts and comments.
SC Professor, as I sat in the courtroom today, I just continue to shake my head in stunned amazement at this judge, this debtor and the entire bankruptcy system and I couldn't agree with you more. It has sickened me to the point, that even though this debtor owes me over $2 million, I can no longer attend these proceedings because what sickens me even more is the system itself and how the victims in this case seem to have less rights and less control and less asset value to salvage with each passing day as this judge, who is completely inept in my opinion, continues to perpetuate this to the point where he has become a large part of the problem himself in that he seems hell bent on covering his previous questionable rulings with new ones. I see the dismay on the faces of every attorney, including mine, that this charade continues. I do hope that you will reconsider in that I read this blog everyday and value your insight, most of which has been right on. Granted, not what people want to hear in a lot of instances, because reality does "bite", as they say, but your understanding and experience has provided me with valuable insight that my high priced attorneys sometimes have not. I hope you will reconsider.
Wow the Prof is gone. Because a hack prof knows more about bankruptcy than the federal court judge entrusted with this case. Hopefully, SCprof (pretty man that he is) will come back one last time to read my touching farewell to the second largest ego involved in this case.
Dear Prof,
I am so sad to hear that you are leaving this forum. I was wonderful to have your "expert" opinions on something that effected your life in no way, shape or form.
I can't do it anymore, almost choked on my own vomit trying to be nice to this self-centered, self-loving worm.
Go back to writing this semesters class schedule for the junior college that you teach at.
Owed over 2 mill. Unless your a lumber yard or A-1 bracket your must be a bank.
No sympathy for the banks. They wrote the checks. No one held a gun to their head. They didn't watch what was happening closely enough and they are now paying for it. Shame on them. If they had done their due dilegence on their loan inspection and had stopped feeding the Kara monster when they had the chance, this might not be where it is today.
To Anon 7:16. I'm sorry, did I miss something? I don't recall asking for your sympathy and my friend, you have no idea what went on and what will ultimately come out and for obvious reasons I am not at liberty to discuss. All I can say is that the magnitude of the fraud and the consequences to the members of Club Kara will be significant. You wait and see, my friend.
McMansion tonight at 7pm for before dinner coctails. I guess the filet migon and champagne is on Zudi tonight. Don't forget to mention to ZK how nicely his house is landscaped.
To Anon 7:38 - Don't waste your time, it is probally just Phil M being tired and cranky from the 657 straight hours he has been working picking up the trash.
Anon 7:38-
OOOHHH I feel so bad for you. Maybe, just maybe you should have paid a little more attention to the company that was putting you 2 MILLION dollars in debt. Shame on you for whining. The only ones who should have sympathy for them in this debacle or the buyers who were screwed on their deposits.
Even they have to be looking at their lawyers for not dotting the I's when it came to how the funds could be used.
Rememeber-Life sucks then you get screwed by an Albanian
I'm not Phil macaronni. It's easy to tell it's no Phil, I never used the words-Me, I or My in the post.
Again, did I ask for your sympathy? My post was an effort to get SC back on board because he does provide valuable insight in my opinion. You chose to add your 2 cents, I didn't solicit it. Please!
When you post your fair game. If you want to have a private conversation with the great and holy JC(junior college) Prof- go to his blog. That way he can go up to 5 posters on the page that no one reads.
The prof and his 5 or 6 little toadies will not be missed by anyone who has a real stake in this case.
If Kara really wants to clean up the garbage, they need to load anyone with "VP" in their job title into the nearest dumpster. A sign of "progress" would be to see Zudi sailing through his office window onto the pavement below. No, it's not hammers pounding nails by any means. But it would be progress.
Not a whole bunch of VP's left. Shultz, Gough, Kelly, Brandt, and Jablonski-Oh my mistake thats around 15% of the company-Throw in the Lawyers and 1/4 of those left are making over $100,000. Things that make you go HHHMMMM.
How could anybody have faith in the "judicial" system? You wonder why people take the law into their own hands? There's no justice in this court.
Watch your back Zudi.
NO JUSTICE NO PEACE-please stop your whinning. This has become the little girls blog. Oohh the judge is so bad. That mean Zudi took all my money and hurt my feelings. Stop being a bunch of babies and deal with it. You all SCREWED UP, you let the ultimate showman scam your asses out of big bucks. Stop your crying and move on with your lives.
Great and Holy Juco professor? You must be kidding me and when you say a "real" stakeholder then you must be either:
a. A contract holder who had a attorney who wasn't smart enough to get the deposit held in escrow and actually believed your house was going to be built despite all the indications to the contrary within every project Kara had because if you couldn't tell something was wrong, I really feel bad for you.
b. A former employee who rearranged the deck chairs on the Titanic for the last two years and believed your fearless leader despite all the indications to the contrary and didn't have the balls to leave or stand up to the almighty and powerful ZUD and now cry over the three weeks sick pay you didn't get.
c. A contractor or supplier who probably hadn't gotten paid in a long time or gotten paid very little with a promise and kept supplying services, and/or delivering building supplies and extending further credit and watching your over 90 day balance become 120 and so on and so forth.
d. An elected or non-elected official or who invited Kara Homes to come build in your community, to take that over 55 active adult tax money and fund your mounting deficits with little or no correlation to revenue and expense and further mask the real fiscal problems in your little community and now have to go after those performance bonds and have very unhappy taxpayors in your community because of all the unfinished infrastructure.
e. Part of that crack unsecured creditors committee who have an attorney who sits with Bruck at the hearings and shakes his head in agreement with everything he says. Meanwhile everytime Kara gets another advance your chances of collecting anything continue to diminish. Talk a bout a waste of money.
Please, everyone affected by Kara in some way shape or form is a victim or stakeholder here and there is plenty of blame to go around for not stopping the Kara machine. While it may be convenient to blame the banks or financial community, the reality is that its all water under the bridge at this point and again I believe SC provides valuable insight into the workings of the system and not how Kara worked or didn't work. At the end of the day, we're all in the same boat and that is "It's out of our hands" and in the hands of a judge who is overseeing his first case and doing a lousy job.
WOW it's amazing that you put as much time into that last post as you did. I guess it's pretty rough representing everyone that zuhdi screwed>
I have to agree that there's just a little too much being made out of this today. Whether it's unfair (yes) or whose fault it was (Zudi's) has been debated over & over for months now. A general consensus has been established that applies to all Kara victims, big or small. We are all screwed. But did anyone really think they'd be denied this loan today? Kaplan isn't going to be the bad guy & deny what could be the last cash prize in this case. As soon as there is no more money to be had, Traxi will vanish faster than a flat screen TV in a Kara model home & Kaplan will all of a sudden "see no future for the debtor". Like with everything else, it will end when there is no more financial motivation for anyone to continue it. Bankruptcy court doesn't necessarily have anything to do with justice & bankruptcy judges don't have to explain themselves to anyone. If you are looking for logic & sound ethical reasoning, bankruptcy court is not the place to be.
re: 8:45 - 15% & climbing, no? Kara pays pretty well for a bankrupt company, especially if you can snag one of those VP jobs. I mean I could easily handle the sales VP job right now & I'll do it for 3/4's of Tom's salary. Or land acquisition, that has to be a bustling department these days. Or I can take the CEO job. I have a wrinkly suit & I can easily handle looking downtrodden all day.
This whole mess is like a nightmare. Kapplan is an idiot and should be thrown off the bench.
SC Prof, I am wondering why you are taking this so personally?? If this is a case study you need to be objective and after everything I have read from you I don't get why you would want to bow out gracefully?
This is corporate welfare and this 2.6 million will pay for Zudi's BMW his bills on the Rumson house, the nanny/housekeeper at the Rumson house, the insurance and gas for his Aston Martin. (all of these are part of Kara's bills that get paid on a monthly basis)
I agree with the previous poster, press charges
Anon 11:37, I asked SCProf that question by email. His response was:
"You know I didn't have the slightest doubt that the Judge would approve the additional $2.4M borrowing (based on his prior rulings). What pisses me off are his unnecessary and unfortunate comments from the bench that were quoted in the article. An effective judge does not need to pander the audience with such ridiculous statements. He will learn that what he said will come back to haunt him. His ruling should have been one short sentence. He should have said something like, "I find sufficient justification to approve the use of the additional borrowing." Nothing more. Sadly he went beyond that, subjecting himself to what I tend to believe are valid criticisms."
So the JC Prof is the Siskel and Ebbert of Federal Judge reviews. To paraphase an old saying-if your not quallified to do something criticize those who are.
I am sure that Judge Kaplan would be crest fallen to hear the the all mighty king of the bankruptcy blogs didn't think he did a good job of giving his decesion on Monday. Maybe we should foward the Judge the Prof's e-mail address. This way Judge Kaplan can go over all of his decesions with the Holy One before he mis-speaks himself again. Wouldn't want to the Prof to say that something "pisses me off" again, now do we
Kara still must file a reorganization plan; its strategy outlining how it plans to emerge from bankruptcy. That plan is expected to be the focus of a Feb. 5 hearing.
The funniest & most pathetic part of this is how anything Kara does is applauded as "progress". They close on a house or two, they take out the garbage and it's as if it represents some kind of victory in the face of overwhelming adversity. Other, competent building companies manage to do things like that every day as a matter of simple routine, but for Kara they're giant leaps towards solvency.
There is nothing fair about this world and there never was. Fair exists in baseball and nowhere else. No one could seriously believe there would be any "justice" found in a room containing lawyers, bean-counters and a federal judge, can they? That Lady Justice statue isn't blindfolded to represent fairness, it's so she won't see the envelopes stuffed with cash and the knowing winks and nods that are part of daily life for these people. I also hope no one really believes any of this is helping Zudi and Kara long-term, because they are nothing more than a laundering front at this point. As soon as they outlive their usefulness, they'll quietly be disposed of, or left to fend for themselves which would be an even worse fate when you consider who'd be in charge. Just like Zudi abandoned his customers, vendors and employees when they outlived their usefulness to him, his saviors will likewise abandon him. It won't happen fast enough to make anyone happy or make anything better, but it will happen. Sure it's all really unfair but hey, so are a lot of things.
Hey,
Sorry to post in the comments section. I'm a reporter looking at this story and was wondering if any of you who are involved in the Kara case would like to talk about it. You can contact me at
entreporter at yahoo dot com
Thanks for any help.
I can't do it anymore, almost choked on my own vomit trying to be nice to this self-centered, self-loving worm.
Go back to writing this semesters class schedule for the junior college that you teach at.
As someone without a dog in this race, I'm letting my opinions be formed by who presents the best arguement.
Stuff like what I quote above is simple ad hominem at best and childish ranting at worst.
So you can only base your case on school yard taunts? You have a very weak position.
Just sayin.
Wow the prof has a new buddy. Funny how the JC prof has vanished leaving his loyal followers in the lurch. No pity from me for the uninformed masses who blindly believed what this wannabe judge had to spout. Not shocking you were the same simple minded individuals who followed zuhdi to your current state of financial distress.
People please get a clue, no one knows what the hell is going on in this case. Let it run it's course and stop looking for some messiah to pull you out of the abyss you are in.
"No pity from me for the uninformed masses who blindly believed what this wannabe judge had to spout."
Pure venom without any meaningful counter-arguement. Like monkeys throwing poo, it's entertaining for maybe a minute.
I mean seriously, do you have a point beyond attacking people who have opinions that differ from yours? Ever consider facts, reason, and persuasion? So far you have not gotten around to it.
And your point is? Missing the Prof is not a point it's just sad. I'm still waiting for a point. Still waiting. No Point.
After reading some of the recent posts here one thing stands out-WHAT IS WRONG WITH YOU PEOPLE? Everyone on this forum has some agenda. It might be Anti-Kara Or Pro-zuhdi. It could slam the banks or bash the Prof. No matter which one it is, it still is biased. If you want facts, read the papers or go to court. If you want opinionated, biased rhetoric, come on down.
OK, now I am confused. Is the current topic a) bashing someone who doesn't post here anymore, b) debating the existence of opinions or c) throwing poo? Because if it is "c", I can definitely vouch for the fact that there was plenty of poo throwing going on at Kara. The conference room was literally full of it during meetings. In fact, some of the blindness prevalent among the "faithful" has been linked to exposure to all the poo in the air at Kara HQ. You get that shit in your eye & next thing you know you have a spec home & Lord knows you don't want to come down with one of those.
Of course, among Kara field personnel, poo throwing had an entirely different meaning that was born out of necessity, as they was often nothing else they could do with it. But that's between Zudi & Johnny, let's just say they were on the spot & Zud wasn't & leave it at that.
So how many Kara suckers got stuck with (make that pressured to buy to make year end quotas) specs and how many? Is Jabloserski at the top of that heap too? Just wondering...
Yeah always very interesting how at the end of every year Kara suddenly would sell a dozen homes to people in the company. Hopefully they all got stuck with their lemons & end up losing a ton of money.
Karagjozi has less credibility than your average South American drug kingpin. The guy leaves hundreds of people in the lurch, walks away from the giant mess he made & now he walks around talking shit about what's going to happen after he "comes back". If he ever did "come back", take a guess on how it'll go once he's minus his hand-holding corporate babysitters. As if next time, he & the exact same staff will suddenly know what not to do wrong & everything will be rosy & keen. Everything they know about business is right there in his filing, hundreds & hundreds of pages of evidence proving that a blind chimp could have managed that company better than he did.
Two Kara houses at Hawkins Ridge in Jackson collapsed Sat night, they were unoccupied and no one was hurt.
Given the history of that job, no surprise.
What do you mean the history of that job???
They put the project in the hands of one relatively inexperienced person, then offered no supervision, guidance, or assistance to that person whatsoever. At times you had to wonder if management knew or cared about the status of that job. They devoted plenty of energy towards selling them, just not building them.
Do you believe that people paid over a million dollars for houses at Hawkins. Well they paid 999,900 and doubled the price of the interior/exterior options so that the buyers would miss out on having to pay the NJ Mansion tax.
Since Kara used the footprint for those houses on every site I would be scared to death to live in a Kara house. If you own a Kara house it would probably be smart to hire an engineer to look at your house.
They also have this problem at the Tradewinds site in Sea Bright. Those 5+ million dollar houses are sinking in on themselves due to the fact that they where not stabilized properly.
If you own a Kara home I would run to the hills now.
NOTHING COLLAPSED AT HAWKINS RIDGE...
Nothing except the expectations of those unfortunate enough to have bought one of them.
So how much did they offer TJ's ass-istant to stay on board? 25K, 50K, or three weeks back pay? Tough for some of those VP's to let ass-ets like that leave, especially after having worked so closely together.
I think that person means that part of the roofs framing blow off one of the homes at Hawkins Ridge. I seen it myself today. The site is closed off with red tape. It's very windy down there. I wouldn't say collapsed. It is down though.
I heard one of the clubhouses collapsed too, but who would be able to tell?
When are the clubhouses going to be auctioned? Is Kara hiring right now?
Earlier today, the court approved another 1.9 million loan for winterization of Zudi's gazebo, boat & the maid's quarters. They also sought a 2.4 million loan in order to winterize the salespeople, however, the judge ruled that they could simply be outfitted in existing Kara jackets instead & he denied the motion. On the 30th of this month, Kara will be seeking a $55 million loan to be distributed among employees as a "loyalty & thanks for staying around" bonus.
http://tinyurl.com/3yl7ua
Zudi loved to brag about his so-called contract backlog, but it's worthless unless he is capable of delivering on any of them. He isn't & he never will be.
David Bruck-- "We'd like to be finished with construction and deliver homes," he said after the hearing. "Fortunately, most home buyers (still) want their homes."
Is this guy a jackass or what?
He is a Jackas and a what - I still don't understand how they think they can make a profit - building the houses that have been exposed for months now - except if they keep getting loans and just pay themselves - There is a big KARA article in the Big Builder Magazine
He's crying about Kara losing profit, however, he omits that to even begin finishing any homes, they'll have to borrow more and more money, thereby negating any profit in the first place.
Everyone with a contract should be allowed to escape it if they so desire. They didn't sign contracts with whatever Kara is supposed to be right now. They purchased houses & if Kara can't build them, there's no deal IMO. Why should everyone be forced to wait around while they "negotiate"?
I think if people still want a Kara home let them. If Zudi is this good at being able to keep having people loan him or give him money to pay back others so he can still can run a company so be it. People still can and will get out of there contracts but is it wise to walk away. Just like the contractors that were told keep working you will get paid could they have really walked away from whatever money they were getting plus the work.Look Outside the box at one time Kara was the company to be a part of they just fell on some stupid people Like ZK HP JK GB RB ETC. Get the picture to much to fast.
But their lawyer was arguing that Kara is depending on the profits that unfinished homes will generate, thus letting these buyers walk away was detrimental to Kara's best interests. Fortunately for them, the judge saw through this argument.
If someone wants to loan Kara the money to build with, so be it, but why should any proposed loan be contingent upon money Kara is counting on from buyers forced into a predicament not of their own making? That is really what Bruck was arguing about. Buyers walking away from contracts makes any loan that much more risky for the lender.
3:54PM - "There is a big KARA (Kaos)article in the Big Builder Magazine"
Oh, is that the one regarding a big east coast builder appearing as a key speaker at some high profile charity event even as he stiffs his creditors, homeowners and employees?
He's stiffing everybody and getting away with it.
The article you are refering to I think can be found at:
http://www.builderonline.com/industry-news.asp?sectionID=0&articleID=396588
Bruck is a sleazy fucktard who fits right in with the rest of Kara's executive scum. Kara is excused from fulfilling any and all of THEIR obligations, but the customers are somehow obligated to stick with Kara despite getting NOTHING for their money other than a muddy hole in the ground. Drug dealers & gun runners have higher ethical standards than Zudi & his crew of bandits & lying thieves. Imagine having to go to court and FIGHT for money that you gave to them in good faith & being told that losing that money would hurt THEM! Un-fucking-believable.
Zuhdi Karagjozi
20 Riverside Dr.
Rumson, NJ 07760
Exit 109 GSP, to Newman Springs Rd. aka Rt. 520. Left on Broad St.-right on Harding-left on Rumson-right on Riverside, on right hand side.
Maybe it's time to pay Zud a visit & ask a few questions face-to-face.
http://www.usdoj.gov/ust/eo/fraud/index.htm
Is Kara still hiring? What kind of salary are we talking about? I'd LOVE to work for a company like Kara.
After reading all these comments and seeing what has been going in court it does not look like anyone will ever get their money back. I am a contractor in the state of NJ and if I took $100 from someone and did not preform a service I would have to pay that back some how if I could not do the job. Why is it any different for them?
Reminder: Proof of Claim Deadline is 2/14/07
Please be advised that the proof of claim deadline is approaching for the main case and many of the affiliate LLC cases. Please make sure that the proof of claims are filed with the Clerk of the Bankruptcy Court.
If you need a proof of claim form, please email Cynthia Braden, paralegal at Cole Schotz Meisel Forman & Leonard, P.A., counsel to the Official Committee of Unsecured Creditors at (cbraden@coleschotz.com).
It looks like Zudi is getting desperate for Marketing, he put the Kara promo video up on You Tube!!!! I guess free Marketing is better than no Marketing. Just search for Kara Home on You Tube and it is the first one. There are no comments on the video yet.
What a waste of money!!!! No wonder I cannot get paid for the concrete work I did for them. He spent my money making a video (what next the Carlye on CRIBS???)
I guess Zudi is going to try to sell houses to the 14 to 18 year old market, they have disposable income and do not read the news papers they are the perfect demographic!!! They have not been tainted by Kara's bad press!!
It is funny the Kara video on You Tube is right after the big fat guy farting video clip!! Perfect company for the Kara video!!
What's next, the Kara Homes My Space page!!!
http://www.myspace.com/zudikaragjozi
Did you know Zudi composed & performed all of the music on that video? "Doo-doot doo-do-doo-doo-do-do".
I see he has one friend in Santa Monica. Zudi probably promised him a house.
It's like an ugly kid tying a pork chop around his neck so his dog will play with him.
I could swear I saw Eva on a street corner in Clifton last night! Of course I may be wrong. Anyway, either she just came out of Ding Batz or she's working it there. I doubled back, but by the time I got back she had been picked up already. She did look pretty skanky. Maybe she's supporting Zudi now.
Eva was going to marry an American in order to become a citizen, but she got lost on the way to the courthouse. She was deported & is now in Albania after a brief stop in Alabama due to her booking the wrong flight.
Is the Bruck and Zudi show back in court today? It's been a few days since that fatass Kaplan wasted taxpayer money.
Zudi still doesn't get it, he wants Kara to keep on paying those personal expenses for him. What a spoiled, egotistical, self-serving jerk he is. Plus he's still telling anyone who'll listen about what he'll do "after" bankruptcy, as if re-hiring a few old names will bring his company back.
I hear Chris Murphy and Tammi are available for re hire.
Good news! Kara will begin winterizing homes next week. Money well spent.
Judge Kaplan must be very pleased to see more "progress". Hopefully, someone is going to actually supervise this winterization to prevent another creative Kara cash-grab scam.
When will they get started - by the end of the summer - so they'll be ready for Winter '08
The number one priority since October has been making sure they keep getting paid & nothing else.
Quick reality check for all of the NO NOTHING Bashers out there. Kara actually is working.
Houses in Marlboro, Lakewood and Mount Arlington are being "winterized" (sided, roofed, and Backfilled).
Construction money-yeah real construction money-should be released for Marlboro and Mount Arlington early next week.
Warranty work, all be it on a limited basis, is taking place every day.
Homeowners aren't being screwed. Anything that the current construction staff can do on there own they are. Site supers are hand digging the fronts of houses that have foundation leaks-Go ahead name one builder that doesn't have this problem. Project managers are servicing furnaces and caulking bathtubs.
Everybody in the field in doing what they can to make this work. Feel free to slam the high and mighty in the Ivory tower, but back the hell off on those EARNING their checks every day.
Yes let's all pretend Kara Homes is still a real business doing wonderful things. EVERY CENT Kara gets screws the creditors out of their rightfully EARNED money. Zudi is a scumbag & a liar, I'll quit bashing him when he's out of business.
"Released", as if it's just being held up by all this legal mumbo-jumbo. Released from what? You mean they've lined up another loan? If not, where'd this money come from all of a sudden? If they're going to be building again, why bother winterizing at all? Typical Kara, looking for credit & applause whenever they manage to do the simplest things, like it's some great feat against all odds. I guess all those complaining homeowners were just imaginary.
The money is being "released" by the backs-aka secured creditors-that are funding the individual projects.
Winterize or close in the houses that have been sitting before that are shot and then finish the houses that are closest to completion. Simple plan.
Simple things for a company with no money and no people are major things at this point.
The funny thing about all this is the same subs that were there before, are back working again. I guess that didn't get hosed as bad as they originally claimed, or they realized how much they screwed Kara out of before.
More like a simple company run into the ground by simple men.
Hey Anon 8:53 - Do you seriously wnat us to believe that Phil M or Jean L are actually doing PHYSICAL labor. Maybe you can BS those who never worked with the "current staff" at KH, but for us who have watched them day in and day out sit on their butts and do nothing but yell we know the truth. AND if by some miracle they are doing something then IT'S ABOUT TIME!!!! However I seriously doubt it. I can't believe the people who are still with KH think they deserve applause for being there. What they deserve is a bottle of anti hullicient drugs to help them back to reality.
"Screwed Kara", just priceless. Maybe those subs showed up because they'll actually get the money this time around. Anyone who doesn't believe Zudi would screw them over in a second is dreaming. Honest, competent businessmen don't need the Dept. Of. Labor to check in on them to ensure they'll pay their people. Any effort done on Zudi's behalf is wasted effort.
Homeowners aren't getting screwed?!?!?? Hundreds of families are displaced. People's nest eggs have been tied up for over a year and there’s a good chance they’ll never see that money again. And even if Kara were able to restructure, the company will has already cost creditors millions in expenses, financial exposure, etc. So yes, homeowners, builders, vendors and other parties are getting screwed.
Oh, and coincidently you're now getting construction funding next week. Funny how "next week" is when everything gets done at Kara. When are you starting my house? Next week. When will I get my paycheck? Next week. When will you pay my bill? Next week. We should have known the magical bag of money was coming next week.
Maybe next week is when Kaplan finally wakes up and kicks your ass out of court.
Wow, I detect the faint smell of Zud-flavored Kool-Aid in here. "Didn't screw any homeowners", "subs ripped us off", "starting building again very soon". This is the Zudi mindset at work. It isn't that Zudi is a horseshit businessman without a clue, it was everyone else's fault. All these uncontrollable forces were working "against" him. He only kept his "key" people around. All lies from the master bullshitter himself. I suppose every other builder is going through this right now, too, no?
I have heard that Kara is going to get funding from Plainfield and finish my house in Jackson.
Well that is just great... I have been in limbo for 6 months now and I am supposed to be happy they are going to finish my house?
Well who is going to finish it? And will it be finished to the specifications I ordered? I will absolutely not purchase the house until it has been inspected independently. Oh and guess what... I bought another house because I HAD NO PLACE TO LIVE!!!!
So now Kara thinks that I am going to jump into gear and get excited that they are going to finish my house? I am supposed to be thrilled that I may have to hold two large homes in order to recoup my deposit?
I could give a rat's ass that Kara employees are "EARNING THEIR PAYCHECKS"... Isn't that what the rest of the world does?
I want every single person connected with Kara to go to jail for fraud. That includes everyone because they all had a part in stealing money from homeowners and contractors as well as misleading the banks.
Go to the following link and petition Gregory Paw at State AG’s Office, Department of Criminal Justice. If half of the 300 families bug this guy, he'll have to do something.
http://www.state.nj.us/lps/dcj/tips.htm
There's no funding, only more promises & maybes. If anyone thought it'd be worth their while to just simply loan Kara construction money, it'd have happened already. Anything that actually gets done will be at the hands of the banks themselves after they tire of watching their assets wither away to nothing. If Kara had the capability to do anything, they'd be doing it instead of just talking about doing it.
DO you really want a house in Lakewood or Mt Arlington? Can anyone who does close on a house really feel confident that the house is built soundly? I do not think so. If you talk to the people who have closed over the past few months what you find are people grasping at anything to get the Kara mess behind them.
Where are the "testimonials" on karahomes.com??? Why is Zudi's nephew posting the corporate video on YouTube??
Grow up!!!! The Kara brand is done.
The person who bought in Jackson, are you the person that paid over a million dollars for that house?? If you are, your an idiot!!!!
Those houses are falling apart and have had animals living in the vacant homes.
You need to petition Kapplan to get you out of the contract. I know, I started building those houses and they are a mess. Most of them where built using very unhappy subs (remember this site was started when Kara owed a lot of subs money. These guys did just the basics to get there part done. I was talking to a concrete guy who said the concrete was really low quality because the owner was trying to recoup the money he was losing. BEWARE!!!!
Those Kawkins houses are a joke, Kara didn't even put minimal effort into that project. I guarantee Kara will NEVER finish those houses.
Maybe someday that retarded judge will stop bending over backwards to ensure paychecks for Zudi's friends and actually consider the victims of Zudi's scams.
Same concrete was used at 20 Riverside Drive but Z didn't give a sh*t and neither did anybody else involved.
Can you believe this! This was posted today on the Zs web blog.
Zuhdi Karagjozi said...
Sorry for not posting for a few weeks. I’ve been on a well earned vacation at a remote Caribbean island that I thought had internet but didn’t. On my way back, met with that potential Florida partner but it doesn’t look like we are going to structure a solution until about another 45 days. As all of you know we are making progress on the winterization effort and getting rid of Bear Sterns has been a wonderful thing. My team is working closely with the people at Plainfield and it looks like we may be in a position to start completing and selling home in a few weeks. Please be patient and you will see progress like you never expected.
February 16, 2007 9:23 PM
Kaplan, you jackass, today is the day. It's been four months and Kara still hasn't come up with construction funding. 100s of families are displaced. Put an end to this nightmare.
BACK PAY SWEET BITE ME LOSERS WE'RE GETTING IT>HAHAHAHAHAHAHAHAHHAHAHA
Still proving once a whore, always a whore, right?
what happened in court yesterday?
I'm so furious with Kara and the cronies who are "working" their way to salaries (Traxi) and not much more that I am now taking daily pictures at Mt. Arlington to document all of the work that is being done. I haven't seen anything in the papers about what happened on Feb 20, but if you call 3 bricklayers at work progress then we all don't understand. Actually I own my home, but the condition of Mt. Arlington makes me so angry and bitter that this sales scam that we all fell for was a fraud from the beginning. Mandarino and his group are not any better than Zudi and his entourage. Traxi is making money by trying to get loans from hedge funds. When will everyone, including the judge recognize that Kara homes is dead and we should put the patient to rest. Let someone else buyout the properties and get on with lives that are in limbo at this point.
I'm so furious with Kara and the cronies who are "working" their way to salaries (Traxi) and not much more that I am now taking daily pictures at Mt. Arlington to document all of the work that is being done. I haven't seen anything in the papers about what happened on Feb 20, but if you call 3 bricklayers at work progress then we all don't understand. Actually I own my home, but the condition of Mt. Arlington makes me so angry and bitter that this sales scam that we all fell for was a fraud from the beginning. Mandarino and his group are not any better than Zudi and his entourage. Traxi is making money by trying to get loans from hedge funds. When will everyone, including the judge recognize that Kara homes is dead and we should put the patient to rest. Let someone else buyout the properties and get on with lives that are in limbo at this point.
It ain't over til it's over.
re: Tuesday, February 20, 2007 9:34:19 PM
Usually, when you say you're "getting it", everyone assumes you mean from JK in an empty model home. Just like when you use the words, "suck" or "bite", everyone immediately knows who it is.
If you want to communicate your comments to the Judge in Trenton, the following addresses are provided. Anything you send to the Judge must also be copied to the other four people.
Honorable Michael B. Kaplan
Courthouse
US Bankruptcy Court
402 East State Stree
Trenton, NJ 08608
ATTORNEY FOR THE DEBTOR
David L. Bruck
Greenbaum, Rowe, Smith, et. al.
PO Box 5600
Woodbridge, NJ 07095
DEBTOR
Kara Homes, Inc.
Suite 235S
East Brunswick, NJ 08816
REPRESENTING THE US TRUSTEE
Fran B. Steele
US Department of Justice
Office of the US Trustee
One Newark Center
Suite 2100
Neward, NJ 07102-5504
ATTORNEY FOR THE THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS
Michael D. Sirota
Cole, Scholtz, Meisel, Forman & Leonard
25 Main Street.
Hackensack, NJ 07601
If everyone of the dissatisfied Kara clients and creditors sent letters to the judge and the other parties, maybe he would recognize the severity of the problem and begin to move more quickly to a resolution. In my mind, Chapter 7 is the solution which will allow othewr builders to buyout the unfinished sites and complete them. I am afraid that those people who placed downpayments on sites are not in a good place. Whether Zudi comes back or not, it doesn't look like those contracts will be honored. That is what Chapter 11 allows Kara Homes to do. Wipe out all debt and start anew. But the process could be faster if Kara was forced to sell the properties to reputable people who would be better able to get resources to complete the projects.
I hope they do come back, because as soon as there's anything worth taking at their sites, it's robbery city. I will get my money one way or another.
A little bit of info for those that were screwed.
To All Kara Associates
We are very pleased to announce that the Court Order approving the payment of Pre-Petition Wages for the Construction Field Staff and the Office Staff has been signed by Judge Kaplan.
We will be paying out the Pre-Petition wages over a three week period following this schedule:
1st payment March 2, 2007
2nd payment March 9, 2007
3rd payment March 16, 2007
For these three weeks you will receive your regular paycheck along with a separate paycheck Marked Pre-Petition wages. Both of these checks will be handled as usual by direct deposit or live check depending on your instructions.
Sincerely,
Roberta Schultz
Vice President of Human Resources & Organizational
Kara Homes, Inc.
197 South Route 18
East Brunswick, NJ 08816
Ph: 732-565-0720 x 113
Fx: 732-876-0397
rschultz@karahomes.com
Did anyone see the ad in the Ledger? http://sheldongood.com/karahomes.php
They are auctioning off a lot of Kara Land/Houses...
Robbie Schultz is the most incompetent person I have ever worked with & as long as she is there & doing any hiring, there is NO WAY they will ever accomplish anything. The company would be so much better off if she had never walked through the door to begin with.
Robbie has to have some use to Zudi. Maybe she helps Zudi sleep at night. (Wink, Wink)
Does anyone know what is happening with this case? The resumption of work at Pennington in Mt. Arlington does not appear to be happening to any significant degree as Perry Mandarino promised. While some properties are being auctioned away, others are laying stagnant. How much of the $3 million that Westport put up has been used aleady? Are there any further funds that have been acquired? Weeks and months go by and no one gives residents of these unsightly construction sites any information. They just expect the monthly maintanance fees to be paid with no adjust. It is time for some adjustments to the fees to occur. With no prospect for any amenities beyond essentials, I can't see why residents at Pennington should continue to pay $292 a month for services and amenities that do not exist and may never exist. I made a big mistake buying at Kara in Mt. Arlington. I looked at Pulte Homes in Wanaque and that is where I should have bought. Even Hovanian in Bridegwater is complete. I can't believe that some other builder wouldn't be interested in buying out the Mt. Arlington property. It is very nice, or at least could be very nice and certainly it is in a desirable area. I'm afraid that is the very reason why it will never be sold off, but will continue to exist in its dismal condition. Too bad for the residents. We sit and wait while Mandarino continues to hold Kara's hand. They told us that they are going to come back and open the sales office. Who would buy under the circumstances? And furthermore, how are they going to promise swimming pools and tennis courts? Certainly, if I see any new buyers coming through I would heartily discourage them from a purchase while Kara is still in control.
You should get together w/ your neighbors & inform Kara that until the project is done, you will not be paying any "fees". Furthermore, you should insist that Kara accounts for all fees previously paid, where it went and when. Be a gadfly & continually pester any & all Kara people you might see up there, insist on answers and do not stop until you get them.
Well, i just got part of my question answered in today Asbury Park Press. Kara Homes received a loan of $2.85 million to complete 28 single family and condos at Pennington in Morris County. I'm not a mathematician, but how will this small loan complete 28 homes and condos. Seems like too little. And the bigger question is what contractors will be coming to do the work. I know that Mandarino and Kara would not consider selling off Pennington because it is a premier location in Morris County, but just completing the homes and condos does not complete the site. Where are the monies for the purchased amenities, like a clubhouse and a pool? How will they sell new condos if these amenities are not in the plans? I am taking pictures several times a week to document on-site work and thus far I've only seen 3 stone workers and one excavation machine. This might be a positive message to new condo buyers, but you can be sure that new buyers are going to be much more careful with their downpayments.
While you are waiting and waiting, Kara Homes is handing out raises to the very same people who helped run them into the ground. The sleepy-eyed judge awards them "back pay" & keeps handing them money with a total lack of regard for anyone else. I am with you, if they start trying to sell again, I will be there reminding any potential customer that KARA LIES!
A few corrections-
to anon: 8:21 Westport didn't put up 3 million it was Plainfield Capital.
Westport has now put up 2.85 million to fund construction at Mt. Arlington. They had previously funded for winterazation, that is why you only saw masons and excavators there. That work was all that was approved until the new order that Judge Kaplan released. I'm sure you will now see more activity.
to anon 12:55-The association fees do not go to Kara, rather to a management company. If a homeowner has a problem or wants a run down of the accounting of where these fees have gone, they would need to deal with the management company, not Kara homes.
to anon 4:21-I must have missed something, what Kara employees got raises? I read about the back pay, which I personally didn't have issue with, but I haven't seen anything about raises.
Bottom line is the Kara and the Judge just want to get more houses closed. Kara to pay down more of the Secured Debt-also why they are auctioning jobs. Judge Kaplan because it looks good politically to get people in their homes.
Yes, of course everyone will see results "soon", Kara's favorite word.
The raises are very "hush-hush" & are only for those that the executive staff deems very special.
It's hard to do anything "hush hush" at company that is in Federal Chapter 11 proceedings. All payments, including salaries, have to be approved by the court and trustee (traxi).
Kara prioritizes certain "positions" and "assets" more than others. But I'm sure that if Kara was going to give someone a nice persuasive salary bump, they'd tell everyone all about it. No secrets at Kara Homes, right?
I would love to know how much of the $2.85 million is going to be used for administrative costs and how much is to be used for completion of homes. I'll be watching for those "other" workers who are coming back. Does this mean that Westport is providing enough money to honor all of the homes that had deposits on them? What happens to the unsecured creditiors? How does the $2.85 million get distributed?
I'm amazed that anyone would dare to entrust Kara to complete anything, given their awful track record. What reason is there to believe that Kara management all of a sudden knows what they're doing?
I'm an unsecured creditor & I gave up all hope of ever recovering my money, it's obvious that no one, including the court, cares even slightly about me or any other non-bank creditor. The entire case is all about helping Kara at any cost. Even the unsecured creditor committee appears to be working for them, they certainly don't represent anyone else very well.
I very much feel your anger and bitterness toward Kara and I agree with you completely. That is the situation that the present residents of my community just do not understand. They think that Kara is coming back and everything is going to be grand. It isn't! Completion with be very slow,in dribs and drabs. Perry Mandarino is just a mouthpiece for Kara and the court. Not much of anything happening in either place. To hell with the residents and the unsecured debtors. We bought with our eyes blinded and now we have either lost our money or live on a construction site. The latter is better than the former, but even those who have title to their homes are losing money and do not have much to look forward to due to the state of the project. It is foolish for Kara or the courts or Mr. Manadrino to think that anyone is going to come back to buy at Arlington or anywhere else while Kara is still in control. Unless something dramatic like a clubhouse and a swimming pool materializes, I would not recommend that anyone buy a home or a condo from Kara. Kara must make a far greater effort now to convince people to buy than before. His track record is marred with potholes and he can't manuever the way he did before. Beautiful model homes just will not make a difference.
When it went into Chap. 11, I stupidly assumed the victims of this mess would be considered at least somewhat, but I was way off. The die-hard cynics all immediately said it'd be nothing more than a giant greedy cash-grab, & they were right on the mark. It's all about propping up the lawyer's cash cow & nothing more. Even the so-called Unsecured Creditors Committee appears to be working towards whatever benefits Zudi Karagjozi & his company. They ignore all inquiries and they won't even provide any new information via their blog despite repeated requests. Maybe they just don't want to bring attention to just how ineffectual and useless they are.
"Gonna", "soon" & "if" are Kara's favorite words. Everything is someone else's fault or happened because of circumstances beyond their control. Trust me, putting your faith in Zudi's little scam will get you nothing more than broken promises and empty pockets. Mandarino & Bruck do all the talking for Kara now because they damn well know that if they turn the big liar loose, he'll be throwing empty promises around like confetti on New Year's Eve. No one at Kara gives a rat's fat ass about anything other than guaranteeing those hefty paychecks every week. The company is fully staffed with way too many wildly overpaid deadbeats & glorified assistants for those deadbeats.
I told Perry Manadrino at a meeting he held with
Arlington residents that his approach was not going to be satisfactory for the present residents or those who are losing their downpayments. He chided me for being too agressive and negative. But all is true. He and Traxi are getting a big bucks for their "solutions" for Kara. Getting small loans from hedge funds is not going to lift Kara Homes out of its abyss. If he reads this blog site, I hope he recognizes me. I also wrote to Judge Kaplan to convey my dismay at the dragging on of this fiasco. As long as this miserable state of affairs with Kara continues to exist, I will remain a voice for reality.
The last article in the Asbury Park Press about 28 homes being completed at Arlington in Morris County is a bit incomplete. Let is not be thought that the 28 homes which are going to be completed will complete the project. Oh no!!! There is still a one floor foundation of building 3 and another big hole in the ground for building 4. In fact there are only 8 homes in states of partial completion and many empty lots. There may be some condos in building 2 that can be sold, but I would not want anyone to get the impression that this news about 28 homes being completed is nearly a reality nor does it nearly complete the site. This $2.85 million is a trickle compared to what is needed. This is another of Perry Mandarino's fairy tales.
So Perry would prefer it if Kara's victims were more passive and patient, huh? Kara arrogance is alive & well I see. They shrug off their responsibilities as if it's not their problem anymore and everyone is supposed to wait around while they do things their way. It is just unbelievable how they are allowed to basically hold buyers hostage while they fritter around worrying about "back pay" & keeping the lights & phones turned on.
Maybe if they ever really re-open the Mt. Arlington sales office, they could have Zudi man the desk for a while. I'm fairly certain that the residents of building one would like to give him an earful. I think he'd end up face-down in a "pool of buyers". Or at least in the detention pond in front.
Back in October, Z promised the mayor of Mt. Arlington that construction would resume "soon". I bet that town regrets ever bending over backwards for Kara in the first place.
As a follow up to the uselessness of the unsecured creditor website. The site was last updated for a court hearing summary held January 31st. If you look at the website for the US bankruptcy court for district of NJ, we can clearly see additional hearing dates as follows:
- Important Notice -- Kara Homes, Inc., Case Number 06-19626 (10/31/2006)
Important Notice -- Kara Homes, Inc., Case Number 06-19626 -- The Court will conduct omnibus hearings in the Debtor's case at 1:00 PM on the following dates: February 5, 2007; February 20, 2007; March 5, 2007; March 19, 2007; April 2, 2007; April 16, 2007; May 7, 2007; May 21, 2007; June 4, 2007 and June 18, 2007. Additional Omnibus Hearing Dates may be scheduled by the Court, if necessary. To the extent possible, any matter requiring a hearing in this case shall be set for and be heard on an Omnibus Hearing Date, unless an alternative hearing date is approved by the Court for good cause shown. (10/31/2006)
There are 3 dates with no follow up. So clearly there is no interest on behalf of this 'committee' to work for us. Perhaps they have just given up. If anyone on this committee reads this site, please just let us know that there still is indeed a committee at all.
The U.C.C. did not reply when I wrote them to ask why they no longer update the info on the case. They are yet another party in the case that seems to work towards Kara's aims & no one else's.
if you are one of the 300 people that had thousands stolen from Zuhdi,,, the FBI would like to hear from you about how Zuhdi screwed you out of your Escrow money,, thank god for the FBI, Bankruptcy Fraud is A crime...So Much for the President Of Kara Homes................
Great. Can you provide the relevant contact and department details at the FBI.
notify the FBI, in Newark NJ...you can find them online at FBI.Gov. find the one for NJ.
notify The FBI For Bankruptcy Fraud. 11 Centre Place Newark New Jersey 07102
Call 973-792-3000
Special Agent Leslie G. Wiser Jr.
Another town has to clean up after Kara Homes, the company with the big fat payroll & little else going for it.
Little Egg cleans up Kara Homes sites
Posted by the Asbury Park Press on 03/8/07
LITTLE EGG HARBOR — Township officials have begun cleaning up three unfinished Kara Homes
developments after citing the bankrupt developer for allowing the unfinished homes to become cluttered with litter left over from construction.
Local officials are taking what the township Web site calls an "aggressive'' approach on property maintenance violations, such as what they have found at Winding Run.
"We want to guarantee a good quality of life,'' John DeLucia, a township code enforcement officer, said, noting that the property maintenance ordinance seeks to "secure the public health, public safety, and public welfare.''
A smart-looking, brick-fronted house with two white rocking chairs on the porch at 78 Vicari Way stands in sharp contrast to a neighboring home in the 152-unit Winding Run development off Mathistown Road.. That house is framed, but has no siding other than the wood sheets covering the frame. There are windows, but there are two gaping spaces in a first-floor nook where windows were not installed. The garage entrance is covered, loosely, with two large panels of wood.
Across the street is a 40-foot shipping container, the kind normally seen on the decks of ships or on rail cars.
I'm glad people are begining to get motivated to become more agressive with Zudhi and Kara Homes. The Egg Harbor story should be enough to prove that Kara Homes is not coming back and who wants them anyway. Perry Mandarino should realize, if his knowledge is so extensive as his credits appear to imply, that this mismanaged company is lost and in fact, President Zudhi may be charged with other crimes of fraud. I'd love to see the sales office open at Mt. Arlington. I would be outside with a poster which Kara Homes would not like. unfotunately for the unsecured creditors I'm afraid that their monies have be long spent by this charade of a builder. Time for the Judge to pull the plug and let Kara drown, they way he allowed the people to drown who invested millions in his houses. Maybe the "ceremony" could take place in the detention pond at Mt. Arlington. So many false promises and nothing to show. I live in building 1 at Mt. Arlington and I look out on that loving pond avery day along with the rest of the unsightly construction site. Boarded up incomplete houses, old trucks and construction materials are magnet for local troublemakers. Building 2 may or may not be secured and the houses on top of the hill are totally isolated with poorly lit streets. Very unsafe!!!Perry Mandarino should come back again and take a real look in daylight and then consider whether his actions are motivated by his interest in Kara and his own rewards rather than in what is best for the communities. he could drag this out for years. All that would do is make bucks for Traxi and keep Zudhi in a salary. I told him on Feb 12, that $2.85 million was a band-aid and now, a month later, little has changed. The "stink" from this situation is getting bigger and the "solution", or at least Perry's "solution" is getting no where. Chapter 7, complete disolution of Kara Homes and final liqudation is the only solution that will let some others come in, take over and complete projects. I'd love to hear a response from Mr. Mandarino about all of the work that is going to happen at Mt. Arlington.
The word coming out of Kamp Kara was that work at Mt. Arlington was to begin imminently, guess there's another "delay". But there's never a delay when it comes to paying themselves, that's always taken care of on time. They can dole out raises and get that back pay, but they can't even send a few guys out to clean up their decaying job sites as a courtesy to their own customers.
Perry is full of shit, his job is to drag the case out for as long as humanly possible so he can make lots of money. He's taking home five figures a week for his "efforts". Who have they benefitted so far besides himself?
Almost 2 months ago, a blogger wrote on Jan.26 that maybe we should pray to the real estate gods to bring a big loan, even before the greedy money-mongers at Traxi came into the picture. Well, nothing has happened and though I own my place, it isn't what I thought I was purchasing. I wish someone would tell me how we could put more pressure on the Judge. It seems that everything revolves around him. Is he getting a cut from Kara? Wouldn't be the first time in NJ that a judge was less than up front. Does anyone know this judge's track record?
He is a "rookie" bankruptcy judge, so establishing decent working relationships with lawyers and "specialists" he will likely encounter again during his career is naturally going to be more important to him than the considerations of creditors he never needs to deal with. By letting the case drag out for a while he spares the court the expense of managing it and he pleases the group of people that matter most in his world-lawyers.
Of course, every so often a lawyer or "specialist" involved in the case has to make some glib, meaningless quote, so everyone will see that "re-organizing" Kara and "getting those folks in their homes" is really a priority. They can't just come out & say, "it's a mad cash grab for whatever we can get", they have to play it like it's a real attempt to "help" Kara get back on its feet.
Of course it really maddening to anyone expecting anything resembling "fairness" or even common sense, but those things have nothing to do with this anymore.
Check out the (finally) updated unsecured creditor blog. Raises and free money for everyone at Kara Homes! It's a nice, easy, lucrative gig, if you're tight enough with Zudi to get in, that is.
Kara's handing out tens of thousands of dollars in RAISES for salespeople who have HAD NO HOMES TO SELL for over five months now. WTF? When Kara ran out of work for me, they let me go & I had to find another job. I certainly didn't get the option of electing to stay, do nothing, & get a nice fat raise to boot. What makes those salespeople people so special? Why can't Zudi re-hire them or get new salespeople if & when the time comes? They are plowing tens of thousands into payroll for the sales staff alone every week, why?
At this point it's real tough to take this whole thing seriously anymore, it's such an obvious scam.
I have a deposit for a home at Horizon Woods in Mays Landing. The only time this area was mentioned was in December or January with a quick comment that ING may be funding construction (this was also mentioned by my Kara salesperson). Of course this is just another "maybe" and another piece of bait to keep ones interest. I just want my deposit returned! Does anyone have any information about that area?
Dear Anon 9:19:59
if the deposit was not left in escrow, you can kiss that money goodbye
As far as Kara Homes is concerned, if it happened "pre-petition", get over it, because they're off the hook. They will never return any of the deposit money, nor will they ever have to pay back any of their smaller creditors either. They are not required to do anything "honorable", or to live up to contracts & promises, and you can be sure they won't because that's the people that run Kara operate. They skate within the limits of the law & the company that's managing their bankruptcy is quite skilled at working the code, as the raises they've managed to secure for Kara's personnel would indicate. Unless they're forced, they will not honor anything and it's highly unlikely anyone will "make" them do so.
Isn't there a NJ fund for people whose escrow money has been stolen from an escrow account by a real estate attorney (Kara's attorney, Charles Applebaum, cashed our deposit checks)?
That atty. left Kara Homes early in 06, but they used the acct. after that.
Still don't understand how it is not a crime to take money from an escrow account and how the NJ fund wouldn't be accountable. If the escrow money was to be used, but bonded, why isn't the bonding company responsible. Don't understand how there is no accountability from the legal sense of a signed contract. Can anyone explain this me?
Yes, an explanation would be nice, right? I do not understand it either. I never realized bankruptcy protection entitles a business to just walk away from contractual obligations like they never happened. But apparently it does.
Kara is totally doomed. Even competently run residential building companies are struggling mightily right now. Kara was built on massive demand and easy, gimmick mortgages. Those days are done. Once the shield of bankruptcy protection drops away, Kara will quietly fade into oblivion.
Let's hope that happens soon. Then maybe someone will buy up the properties and finish building on the sites. I can't believe how Kara fooled everyone about their great company. The saleman at Arlington certainly had me fooled and I'm too old to get taken by a big "story". Fortunately, I didn't lose everything, but I feel so bad for all of the people who thought that they were buying their 55+ homes and looking forward to their retirement years. I think that if a salesman comes back to Arlington, he will have a hard time selling anything.And Perry Mandarino, would have a difficult time explaining the work that is going to be done. On his first visit to Arlington, he was glib enough to get people to think that something good might happen, though I felt that he was just a lot of bluster even then. Nothing has changed my mind. I doubt that he'll come again. I'm terribly upset that this Kaplan is a rookie judge. What a mistake that is. This is such a major bankruptcy case and they put a amateur on it. No wonder Mandarino and Zudi can manipulate him. We can't hope for much with him on the bench. i just don't know where we go from here. How long does this go one before the court makes Kara liquidate everything?
Check out the article linked in the newest blog post. Kara finally has a deadline by which they have to file a re-org. plan w/ the court. They requested an extension but were denied. They've been stalling for time, but now they have to specify how & when they will pay creditors, become profitable, etc. At least it's something...
Anon 9:03:31
Rookie Judge or not, he is well versed in Bankruptcy Law. Do you realize that he was a bankruptcy attorney in addition to being a Chapter 13 Trustee? He wouldn't be in that position if he did not have an extensive bankruptcy backround. It's easy to sit back and blame the Judge. Enough said!!
Agreed. The judge's job is not to decide what's "right & wrong". He's following the bankruptcy code, it's not a criminal or civil court case. It won't last forever & eventually Zudi will have to face the music as the long-delayed lawsuits against him get moving.
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