Tuesday, September 09, 2008

Truxel Business Center Owners In More Hot Water

I previously wrote about the bankruptcy of Truxel Properties LLC in Truxel Business Center Is Bankrupt and Natomas Area Commercial Real Estate Photolog. Apparently, the owners of Truxel Properties LLC have defaulted on several other development and personal loans, and now owe their creditors at least $52 million. In addition, they're being accused of shoddy construction quality, poor inspections, and submitting phony occupancy permits. The Union Democrat has the story:

Calypso Bay on shaky ground

Published: September 4, 2008
By HOYT ELKINS

Developers of Calypso Bay on the shores of Lake Tulloch in Copperopolis left an ocean of debt, shoddy workmanship and phony occupancy permits in their wake when they moved to the Sacramento area to do more of the same.

That's what volumes of official paperwork and individual complaints concerning Volodymyr and Leonid Dubinsky reveal as Calypso Bay residents seek redress of a host of grievances and Calaveras County building officials probe the depths of the problem...

Jeff White, Calaveras County's interim chief building official, heads up the effort to sort it all out. Re-inspections have been ordered.

"The first homeowner to come forward with an unauthorized occupancy permit had already paid to correct deficiencies in construction," White said. "Then we started looking at other permits and realized the depth of the problem. We're working through it one case at a time."

Inspections in the development were contracted out to Linhart Petersen Powers Associates, a service company reporting to the county but paid by the Dubinskys. LP2A was acquired in February 2005 by Bureau Veritas, a Belgian-based enterprise with offices in 140 countries and clients including Sony and General Motors.

Bureau Veritas has a regional office in Citrus Heights, a Sacramento suburb, from which its publicists claim it "offers an extensive range of technical services and solutions in the fields of certification, conformity assessment, consulting and training."

It isn't clear whether Bureau Veritas continued working with the Dubinskys in the Sacramento area where a project in which Volodymyr Dubinsky is listed as the managing member, lies unfinished. Fourteen investors claim they are owed $5 million on that project which Dubinsky set up as Samia Forest LLC.

Another Dubinsky enterprise, Truxel Properties LLC, filed for bankruptcy last June owing 70 creditors $17 million, and two additional companies linked to the Dubinskys filed for bankruptcy liquidation in the past three months leaving $30 million in debts.

One of the companies is Marina Ridge LLC, a development company without assets, and Gold West Construction Inc., a company owned by the Dubinskys which built homes in some of their developments.

Calypso Bay mortgage records show the Dubinskys sold and resold properties to relatives, friends and employees, inflating the home prices each time they passed from hand-to-hand within the Dubinsky circle of family and associates.
I think buying into a development with so many misspellings on its map might be a bad idea. Drive through Stackton, and if you reach Modesta you've gone too far.

2 comments :

smf said...

There was an excess of new businesses that cropped up to take advantage of new opportunities during the bubble.

A lot of these will disappear.

Anonymous said...

Excellent catch on the mispellings.