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Show 6 B DESERET NEWS, WEDNESDAY, JULY 6, 1977 Swindled money seems to disappear in an intricate corporate maze Continued from B-- l ' OReilly stated one of the Century principals, Don Lightner, asked for a $7,300 loan, saying OReilly would get sufficient funds to cover the check. An other check came from Lightner s firm, Bancor, Ltd., of Hong Kong, and was drawn on a closed account. Korb said the two checks were dishonored and returned well in advance of the effective date of the prospectus. Lightner is serving a jail term in California for an unrelated fraud. In addition to the bad checks, Kearney listed several real estate holdings as assets in the purchase of Century stock. The largest holdings Kearney claimed were in Arizona. Korbs affidavit said, I have ascertained that the purchase price of the Arizona property was reduced by $146,638, which fact was never disclosed in any of Centurys records." A letter found in Centurys files indicates the Arizona property was sold to Kearney by N. J. Warren, the focus of a nationwide investigation of western land fraud schemes. Salt Lake City police sources said Kearney, Lightner and OReilly were known business associates of Warren. senWarren is appealing a tence for extortion and has been indicted on 20 counts of land fraud in Arizona. , In the letter to Kearney dated Nov. Las estimated $2 million in damage to an office building at the Sahara Plaza was being investigated today as possible arson. The blaze destroyed or damaged about a dozen . business offices. Investigators said a fire erupted in a nearby vacant house about the same time and believe the two fires may be related. ! The second story of the Sahara Plaza office building at 1810 East Sahara was destroyed and three businesses on the first floor were damaged by fire, heat, smoke and water. A dozen pieces of fire fighting equipment and 45 firemen responded to the alarm. (UPI) The Bureau of Land Man- . mid-197- s, sr HOOVER ora;EiBaTa3iaiB& terfeiter, claimed to have obtained Century by giving Kearney 3,200 acres of land somewhere west of Brigham City. After Parsons arrive in Salt Lake in October 1976, Century operated for another five months and collapsed. Next: Where the money went. CONVERTIBLE! With headlight and large bag. Four throw-awa- Moves itself forward & backward with a light touch . of your hand. Automatically iAjL adjusts itself to all carpet styles. Try it! po- sition adjustments to clean all carpets . . . shag, plush, regular, kitchen Edge Cleaning Power. . . . ICES TOO LOW TO QUOTE by a man injured in the wreck. George Grossen of British Columbia, Canada, filed the U.S. District Court suit against Zions First National Bank, 1 S. Main St., as executor of the estate of the late Del Ray Cornish. Cornish, 24, a Wyoming resident, was killed in the accident on U.S. 91 six miles south of Levan. The suit said Cornish was attempting to pass a slower vehicle in the southbound lane and crossed into the northbound lane, colliding with a car driven by the plaintiff. weeks because of After the departure of Kearney Sr., a man named Rex Parsons came to the Salt Lake office of Century and announced he had purchased the firm. Korb said Parsons, a convicted coun- HOOVER CUSTOM VACUUM! $100,000 drought conditions. The captured horses will be transferred to the BLMs new holding facility in Palomino Valley north of here and held there until adopted. tification systems it didnt deliver. There are indications that Kearney and Med-- 1 controlled Computer-l-Dent- s Dents, similar corporations in Utah. Both those corporations are on file with the Utah Secretary of States Office, where they are listed as delinquent' for falling to file an annual report. The incorporators of the two corporations were Hall, Patricia Kearney and Johney Kearney Sr. p SELF-PROPELL- The estate of a Wyoming man killed July 19, 1973, in a Juab County auto accident is being sued for agement says about 250 wild horses will be rounded up from the public lands near Wabuska and Mina during the next two feat, Co Smith-Crow- n BUY AND SELL WITH WANT ADS Dial 521-353- 5 1993 South 1 1th last jW 484;535? oa grtno gjffTMstigmigg on m MMOP! tipover WILLARD, Box Elder A California County truck driver and his passenger were hospitalized Tuesday night in McKay-De- e Hospital, Ogden, after their vehicle overto turned on the south of here. V'ilas Nogle and his wife, Betty, LaMirada, Calif., were in the truck, which was loaded with 40,600 pounds of frozen potatoes. Nogle appar- ently was attempting to enter the freeway when he lost control of the vehicle, Trooper Dale Hooper of the Utah Highway Patrol said. Nogle was listed in good condition today, and Mrs. Nogle was in fair condition. him the group, said Kearney didn t give authority to sign checks or make any company decisions. of us My personal opinion is that all in Salt Lake just accepted it all at face value. W o hadnt been up against anything like it before. Russell said. Another officer in Century was Ira J was Kearney, vice president, who identified as a former Department of Defense employe. The treasurer of O. Hall, Century was listed as Hugh who was identified in the prospectus as the controller for Timberlakes Corp., a position he no longer holds. In Johney Kearney Sr. left the company without explanation, and Russell said the employes didnt know where he had gone They later learned Kearney had been convicted of fraud in Arizona and term in sentenced to a three-yea- r Lompoc Federal Prison. The Arizona fraud involved an organization known which sold iden as Computer-l-Dent- with the sale of recreational land in Sanpete County. Sales contracts from people who purchased Gateway property were to be assigned to Century Mortgage. The 365 acres in Gateway were purchased by Kearney from Thomas Frank through a firm known as Singer Enterprises, OReilly said. The Singer name was later changed to Gateway, Korb said only $26,000 of the $230,000 purchase price of the Gateway properly has ever been paid. The Gateway land is adjacent to the Aspen Hills development, which is part of Timberlakes Corp , for which OReilly markets land. OReillys affidavit states that he and Kapplan resigned as officers of Gateway the same day It was incorporated, but that Mr. Kearney continued fur some time to have me sign official documents for Gateway." Soon after the establishment of Gateway, four Utah residents invested $37,500 In first mortgages with Century. However, those Investments were credited as Kearneys payment for more stock in the company. After the initial creation of Century and Gateway, Kearney approached a local businessman to become president cf the Century firm. The new Century president, D. Michael Russell, said he was nothing more than a paper president. Russell, president of Peoples Freeway, a Salt Lake poverty assistance Juab crash survivor sues victim's estate roundup of mustangs Nev. RENO, condition. In addition to the undisclosed reduction in the value of the Arizona properties, Kearney listed as an asset a parcel of questionable Colorado land. Korb said he talked to Herbert F. Moss, a California attorney who transferred the Colorado property carried on Century's ledgers as a $25,000 asset. Moss told Korb he conveyed the property to Kearney for nothing, and the county assessor in Colorado said the property has little, if any, value, Korbs affidavit said. Century also listed $43,200 worth of real estate contracts on nine parcels of land in Millard County, Utah, as an asset. A later prospectus listed the cost of "these spurious contracts as $25,920 "in order to give the false appearance that they were acquired at a 40 percent discount, Korb said. The Millard County land contracts were ostensibly assigned to Kearney by Timothy R. White, a partner in the firm of OBrian and Associates, Orem. Korb said White didnt own the property he assigned to Kearney. During the initial formation of Century, Kearney also began developing a related corporation, Gateway Valley Estates. O'Reilly said in his affidavit that Kearney asked him and Phillip J. Kapplan to act as incorporators for this company, which dealt A Fire which caused an 2 injured in truck that 1005-101- Vegas fire probed LAS VEGAS (UPI) for my bail until said bail is extinguished, and asked Kearney to accept said, Due to the publicity surrounding your purchase of accounts and properties from myself. Junior Investment Corp., Camelback Mortgage Corp., and Investors Realty Corp., and at your request, we will agree to make the following reductions and adjustments. The letter went on to list drastically reduced prices on the properties, and was signed by Warren for all the corporations named. Kearneys signature was also on the letter. The document shows that the purchase price of the "Sage Apartments was reduced from $86,661 to $19,000, and The Silver Creek Acres lots you purchased from N. J. Warren on which you owe $78,300 shall be reduced to $10,0(10. " Other reductions were made, but the letter said that two buildings Kearney purchased from Camelback Mortgage Corp. would remain under the same payment plan, $742 a month in interest only. A memo from Warren to Kearney dated Dec. 1, 1975 shed more light on the two buildings mentioned in the earlier letter. The Warren memo stated, "The 7 East Camelback Road buildings were sold to you (Kearney) with the understanding that said buildings are being used as security for my bail. It went on to say, "I advised you that the buildings must remain as security 24, 1975, Warren Come and learn all about Nikon at our Open House! Brad Lloyd, factory representative, will answer ail of your questions and present special demonstrations. on-ra- - THURSDAY, JULY 7 I1 Inkieys, 137 So. Main Store Lunchtime Learning Class , J ? I . Continued from B-- 12:00 p.m.-3:0- p.m. 0 FRIDAY, JULY 8 Inkieys, 1984 So. State Store 12:00 p.m. Model 6:00 p.m. The Only Special Demos by Factory Rep. with Nikon Quality. 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