More On Honeycutt- What About Deals Made While On The Hesperia City Council?





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This was an email that I got from Gail Fry on what she is doing concerning Tad Honeycutt's dealings while on the Hesperia City Council.

TAD HONEYCUTT AKA MANIAQUE DEVELOPMENT LLC

In reviewing real estate records involving some of the local developers and City Councilman Tad Honeycutt, I found what I believe are improper business deals between these parties in light of the decisions that would be made by Tad Honeycutt as a council member. 

PARCEL #0397-181-09 AND PARCEL #0397-181-10
Tad Honeycutt, Maniaque Development LLC purchased APN 0397-181-09/10 on April 20, 2004 document #2004-291746 transfer tax $352.00.  Maniaque Development LLC received a real estate loan from Frontier Homes to purchase this property, document #2004-328425.

Maniaque Development LLC then sold APN 0397-181-10 on August 18, 2004 to Ziad Janadi document #2004-599138 transfer tax $341.00. Maniaque Development LLC then sold APN 0397-181-09 on August 18, 2004 to Ziad Janadi document #2004-597599 transfer tax $341.00.  Maniaque Development LLC then carried back a Deed of Trust in the amount of $210,000.00 to Ziad Janadi document #2004-599139. 

Within 4 months Maniaque Development LLC had almost doubled the profit from the sale of this property made about $300,000.00 profit.  This loan, real estate purchase and beneficial interest in the deed of trust were not reported on Tad Honeycuttïs economic interest statements. 

PARCEL #0397-181-18
Document #2004-327853 Grant Deed where Brentwood Mortgage, Inc. transferred  APN 0357-571-41 to Maniaque Development, LLC on May 11, 2004 transfer tax shows as $55.35. This transaction should be investigated as this was a substantial piece of land and $55.35 transfer tax indicates that there was little money involved in the deal.  Sun Reporter Jeff Horowitz told me that the transfer tax shown on the deed was not correct.  First American Title carried an all-inclusive Deed of Trust and Assignment of Rents in the amount of $88,000.00 document #2004-327854.  It appears that First American Title loaned Maniaque Development LLC more than the purchase price of the property.

Maniaque Development LLC sold APN 0397-181-18 on August 2, 2005 to Suncal Summit Valley, LLC document #2005-635296 transfer tax $412.50.  Maniaque Development LLC made a purchase loan of $200,000.00 to SunCal Summit Valley, LLC, Deed of Trust is document #2005-635297.  In a little over one year, Maniaque Development LLC was able to sell the property for four times the original purchase price.

PARCEL #0357-571-41
This parcel number 0357-571-41 is now an inactive parcel number and has been subdivided into 27 new parcel numbers.  The development and subdividing was done by Oak Hills Development LLC.  It appears that Oak Hills Development LLC generously transferred two parcels out of their development to Maniaque Development LLC. 

Document #2003-285601 Grant Deed where Hamesberger and McGlennon transferred  APN 0357-571-41 to Oak Hills Development LLC document #2003-285601 on April 30, 2003 transfer tax shows as $0.00. This transaction should be investigated as this was a substantial piece of land and $0.00 transfer tax indicates that there was no money involved in the deal. 

Tad Honeycutt, Maniaque Development LLC purchased a portion of APN 0357-571-41 Lot 12 on February 23, 2005 document #2005-125962 transfer tax $110.00. Maniaque Development LLC received a purchase loan on Lot 12 in the amount of $90,000.00 from Oak Hills Development 27, LLC document #2005-125963 on February 24, 2005. Deed of trust document #2005-125963 shows as being paid in full on March 7, 2005 through a Substitution of Trustee and Full Reconveyance document #2005-158569.

Maniaque Development LLC then sold a portion of APN 0357-571-41 Lot 12 which became new APN 0357-731-02 on February 24, 2005, to Bryson document #2005-129446 transfer tax $177.10. Through the sale of this property, Maniaque Development LLC managed to practically double their profit in one day. 

Maniaque Development LLC purchased a portion of APN 0357-571-41 Lot 21 on February 24, 2005 document #2005-129448 transfer tax $110.00.  Maniaque Development LLC received a purchase loan on Lot 21 in the amount of $90,000.00 from Jensen Family Trust document #2005-129449 on February 23, 2005.

Maniaque Development LLC then sold a portion of APN 0357-571-41 Lot 21 which became new APN 0357-731-11 on March 11, 2005, to Delaunay document #2005-171254 transfer tax $177.10. Through the sale of this property, Maniaque Development LLC managed to practically double their profit in about two weeks. 

PARCEL #3093-231-01
Grant Deed document #2004-612014 involving APN 3093-231-01 recorded on 08-24-04 indicates that the Honeycutt Family has a Honeycutt Family Revocable Inter Vivos Trust dated March 28, 1997.  Is Tad Honeycutt required to report this on his economic interest statements?  

Economic interest statements are signed under the penalty of perjury. 

PARCEL #0405-521-53
Grant Deed document #2004-340685 The City of Hesperia deeded APN 0405-521-53 to Frontier Homes LLC where there was no transfer tax exempt was noted on the document  recorded May 14, 2004.  In reviewing the City of Hesperia Agendas prior to the recording of this document, I do not see where the City Council approved the transfer of this land. 

EDUCATIONAL ADMINISTRATIVE SERVICES CORP
Involved in the California Charter Academy scandal one of the entities, Educational Administrative Services Corporation made two loans to Artisan Home Builders secured by deeds of trust, document numbers 2007-314684 and 2007-330326 on parcel numbers 0405-281-07 and 09. Artisan Home Builders is a substantial campaign contributor for Bill Postmus. 

SUMMARY

The question is whether Tad Honeycutt through his position on various boards and councils voted on any of these particular projects or any projects involving Frontier Homes, Oak Hills Development, LLC, or Suncal? 

Was Maniaque Development LLC provided with a substantial financial benefit by Oak Hills Development LLC selling those two lots out of a huge development? 

Was it appropriate for Councilman Tad Honeycutt to receive a purchase loan from Frontier Homes to purchase raw land and obtain a $300,000.00 profit within a few months?  Did the Hesperia City Council vote on the transfer of land to Frontier Homes?  Why was there no transfer tax paid by Frontier Homes? 

Was the transfer of land between Brentwood Mortgage, Inc. to Maniaque Development, LLC done at current market prices for that period of time.  Transfer tax shows as $55.35, which equals a sales price of about $50,000.00. Was it appropriate for First American Title to loan Maniaque Development LLC $88,000.00 more than the purchase price of the property? 

Ray Pryke told me that he knows the transfer tax is incorrect on a transaction where he was involved which would be APN 0435-383-02 and document #2004-701230. 

Were any of these deals done by Tad Honeycutt as a result of insider knowledge obtained due to his position as a member of the City Council? 

In addition, investigators need to review Tad Honeycuttïs economic interest statements filed with the City of Hesperia as Tad Honeycutt failed to disclose his business interest in Maniaque Development LLC. as well as his interest in the above properties and deeds of trust.   I have reviewed the economic interest statements from January 2001 through March 2004.  



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