Jose Ramon Coronado

OCR transcription for search; preserved printed pages are authoritative

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AUTHENTICATED
U.S. GOVERNMENT
INFORMATION

GPO

than is actually owed on the secured debt.

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FILED
UNITED STATES BANKRUPTCY COU
vo ENTERED “CENTRAL DISTRICT OF CALIFORNIA NOV - 9 2007
a SIAN FERNANDO VALLEY DIVISION Tp SSR oa
NOV 9 2007, : Hy Deputy Cieth
rs Ben car ne
Jorem — ees Case No. SV07-13777GM
MI LA SUL Case No. SV07-13778GM
Alleged Debtor
Case No. SV07-13779KT
In re: wa
.5V07-1 M
TAL HEE PACK Case No. SV07-13808MT
Alleged Debtor__| Case No. SV07-13809KT
In re: Case No. SV07-13924GM
SERGIO CASTANEDA
Alleged Debtor | Chapter?
Inre: MEMORANDUM OF OPINION
REGARDING ORDER TO SHOW CAUSE
JOSE RAMON CORONADO REGARDING MULTIPLE INVOLUNTARY
In re: DATE: OCTOBER 18, 2007
TIME: 10:00 A.M.
PRIYA LAKHANPAL PLACE: COURTROOM 303
Alleged Debtor 21041 BURBANK BLVD.
WOODLAND HILLS, CA 91367
In re:
THAO HUYNH
Alleged Debtor

An unusual series of involuntary and voluntary bankruptcy petitions were recently filed in this
court (see attached chart). They raise the issue of whether the filing of a facially correct involuntary
bankruptcy petition by a purportedly unsecured creditor is in bad faith when the purpose is to stay the
foreclosure on property in which there is little or no equity so as to give an affiliate of that unsecured

creditor time to try to negotiate a “short sale” with the foreclosing lender.’ A further element to be

1 “Short sale” is a term used to describe a situation in which the foreclosing secured creditor allows

its loan to be paid off either by the debtor or by a third party (such as through a sale or refinance) for less

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considered is that at the time that the alleged unsecured loan was made, the borrower (now the alleged
debtor) was advised and agreed that an involuntary bankruptcy may be filed if the secured lender will
not allow a short sale, [Powers, 50:9-23.] Also, on or about the time that the alleged debtor signed the
promissory note, s/he transferred title to the property to a trust, which has as its beneficiaries the
transferor and various other individuals who appear to have no relationship to the original owner and
apparently did not provide any consideration for their interest in the trust. And finally, the petitioning
creditor and its affiliates are involved in voluntary chapter 13 cases and/or involuntary chapter 7
bankruptcies filed by or against the transferor and other beneficiaries, sometimes with multiple
properties, and these are generally dismissed for failure to appear at the §341(s) meeting and/or to make
payments or because the involuntary petition is not prosecuted. All filings involve a set of companies
which have a common ownership or are somehow affiliated with each other.

The initial series of involuntary petitions filed for this purpose seems to have begun on August
27,2007. From that date through September 24, 2007, there were thirteen involuntary petitions filed in
the San Fernando Valley division which meet the same profile. A list of these and other cases involved
in this memorandum is attached hereto. The findings in this memorandum are based on the
representations made by attorneys for Trust Holding Service Co. and Boston Holding, the testimony of
Daniel Powers, a review of the filings themselves and of any motions for relief from stay filed in these
cases.

The cases originally came to the court’s attention on September 26, 2007, when three
involuntary petitions were presented at the filing window, but two of them were facially insufficient

since they lacked the signature of the petitioning creditor(s). The petitions were immediately given to

2 All references to page and line numbers are to the transcript of the hearing on October 18, 2007
and are noted as [name, page:line-line].

3} There is evidence that Creative Group Resources, which filed one involuntary petition, and West
Side Servicing, which is the trustee on the grant deeds in five petitions, are not directly owned by Dorothy
Matsuba, but have some connection to her and use the same business address as the other companies that
she owns. [Powers, 26:12-27:1; Powers, 54:16-55:2.]

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Judge Thompson, who instructed the clerk not to accept them for filing both on the grounds that two of
the petitions were not signed and because all three of the petitions showed the petitioning creditor(s) as
owners or secured creditors of the real property in question. That same day, attorney Zshonette Reed
appeared in front of Judge Thompson on behalf of the petitioning creditors to request that the filings be
allowed.

At the hearing, Ms. Reed described the situation as follows: the petitioning creditor(s) are
various trusts for which Trust Holding Service Co. (hereafter referred to as Service Co.) is the trustee."
The original owner of the property contacts Service Co., which then tries to purchase the property,
generally through short sales. Service Co. either pays off or arranges a short sale to pay off the junior
trust deeds and then tries to negotiate a short sale with the holder of the first deed of trust. By that time,
the property is often on the verge of foreclosure and the holder of the senior Hien is too backlogged to
process the payoff offer. Some or all of the time, according to Ms. Reed, the holder of the first deed of
trust advises Service Co. to file a bankruptcy petition to stop the sale so that they would have time to
review the payoff offer.

Ms. Reed went on to state that Service Co. attempts to contact the original owner, but if it can
not find that person, then Service Co. files an involuntary petition to save the property, give it time to
negotiate a “purchase” from the secured creditor, and protect Service Co.’s investment, which 1s
between $20,000 and $100,000 due to the payment of the junior liens. She also stated that the
involuntary petition is filed to give Service Co. time to find the original owner and get him/her to
cooperate by filing a voluntary bankruptcy petition. She noted that Service Co. has about 500

properties, so this is only a small percent of their entire portfolio.*

4 Counsel and Mr. Powers refer to “Trust Holding,” but there is some confusion by the court as to
whether there is only one such company or two with similar names. For example, the involuntary petition
in SV 07-13086 shows “Trust Holding Service” as the trustee of the 5500 Owensmouth Trust, but “Trust
Holding Company” as the petitioning creditor.

5 Daniel Powers, an employee of Trust Holding Service Co., later testified that Trust Holding (which

may be the same entity as Service Co, but this is not clear to the court) has about 250 properties that it

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In summation, Ms. Reed stated that Service Co. is attempting to buy these properties and since
the alleged debtor is not available to file a voluntary bankruptcy so as to gain time, Service Co, has no
choice but to file an involuntary one. When asked about the beneficiaries to the trust, Ms. Reed stated
that these are other investors and it depends on which one or more of them puts the money up for the
purchase.

Judge Thompson refused to allow these filings as not being in good faith and the hearing ended.

Since September 24, 2007, no new involuntary petitions have been filed in the San Fernando
Valley division with Service Co. (or by its affiliates Trust Holding Co., West Side

Servicing, or Creative Group Resources) as the petitioning creditor(s). However, after a two week
delay, this group revamped their process. Between October 9, 2007 and October 29, 2007, another
affiliate, Boston Holding, filed fourteen more involuntary petitions in the San Fernando Valley division.
At least seven of these cases concern debtors or properties that are involved in multiple cases (voluntary
and involuntary). See the chart attached hereto.°

This new batch of filings are signed by Dorothy Matsuba on behalf of Boston Holding. Ms.
Matsuba is also the notary on the grant deed in four of the earlier involuntary petitions. Trust Holding
Service Company is her dba and she and her associates have several different real estate-related
companies: Trust Holding (which purchases real property), Boston Holding (which does some of the

financing for repairs and pays off junior liens), and an escrow company. [Reed, 3:7- 14.]

manages and that about 20%-40% of them are in default on the trust deeds. [Powers, 10:24-11:2; Powers,
39:11-24; Powers, 41:1-7.]

© Tracing the use of the bankruptcy process in a situation such as this is tedious and inexact. The
attached chart displays only some of the filings, particularly the voluntary ones, which were located by
finding a repetitive address or name. It is limited to the San Fernando Valley division, though there 1s no
doubt that this pattern also exists in the Los Angeles division of the court. While reviewing voluntary |
petitions in that large division is a daunting task, there were at least four involuntary petitions filed in the |
Los Angeles division in the month of October 2007 (see attached chart), These were dismissed as bad faith

filings by an order entered on November 7, 2007.

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To investigate this flood of involuntary filings, the San Fernando Valley division judges
instructed the clerk’s office to set an Order to Show Cause hearing on the Thursday after each new case
is filed, give a copy of that notice to the filer at the window, and mail a copy to the petitioning creditor
and any other named persons.’

Judge Mund held a hearing on several of the Orders to Show cause on October 11, 2007. Julias
Stewart appeared by phone on behalf of Boston Holding. Mr. Stewart was not very knowledgeable
about the dealings of his client, but he did inform the court that stopping the foreclosure was important
because a foreclosure would effect the assets available to the parties and Boston Holding has an
unsecured promissory note in each case that it was trying to protect through the bankruptcy. He
explained that Trust Holding (he was not specific on which of the entities by that name he meant) has

title to the real property and that Boston Holding is the lender.®

Judge Mund continued these matters to October 18 when they could be heard jointly by Judge
Tighe and her (Judge Thompson was away on vacation or also would have participated). Judge Mund
asked Mr. Stewart to appear in person at that time. She also told him that she expected him to bring
someone to testify who has personal knowledge, as well as the files of the three cases being continued

and of any other cases set for October 18.

7 While seventeen involuntary petitions filed in a three week period does not normally constitute
a“flood,” this is an appropriate word given the fact that in the first six months of 2007 only two involuntary
petitions were filed in the San Fernando Valley division and the entire Central District of California received
a total of forty-one involuntary petitions.

8 Daniel Power stated that Trust Holding manages the real property portfolio and has a much lower
income than Boston Holding since it doesn't need the money in order to reinstate properties that are in
foreclosure or to payoff loans. Trust Holding’s regular operating income comes from rent collected. But
Boston Holding gets its income at the completion of a short sale. Mr. Powers stated that a major part of
Boston Holding’s business is “involved directly in saving the property from foreclosure, but once the short
sales are completed or when properties come in that are just purchased directly offof the open market, those

are just simply managed by Trust Holding.” [Powers, 41:13-21; Powers, 40:20-25.]

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On October 18, both Ms. Reed and Mr. Stewart appeared on behalf of their respective clients and
Daniel Powers testified under oath.
Mr. Stewart summarized the business model of Ms. Matsuba and her companies as follows:

Ms. Matsuba has two companies. She has one company that’s a company that actually
purchases property, Trust Holdings [sic]. She has a company that actually gives loans
out to people that she finds that has [sic] distressed properties, people want to get out of
their situations. And they’re secured by promissory notes.

These people are supposed to pay her back on these promissory notes. They’re unsecured
debtors. They refuse to pay her. And so she needed a process in order to secure her
interest. Some of the properties are potentially going into foreclosure, and in order to
secure her debt, she needs to institute some type of process.

The process that’s available to her is the involuntary bankruptcy process. And what that
would do for her is, it would allow her to find out what other assets are available to
collect on the promissory notes from these debtors, It would stop the foreclosures so she
could preserve any equity in the property, if there is any equity in the one real estate
property that she’s aware of. And, you know, that way she’ll have an opportunity to
perhaps collect back on her promissory note. And then these debtors would have an
opportunity to come before the Court and contest the hearing.

And it’s a chance she takes. It’s not a win/win because once she brings the debtors into
the court on an unsecured debt, there is still the potential that no assets are available, and
the debtor could discharge her action on the promissory note. So it’s a process that’s
available to her. She’s using it for the proper purpose, which is to secure her interest in a
debt that’s owed to her by debtors.

And I think what caused this big confusion here was that, you know, before she had a

lawyer involved, they were following [sic, should read “filing’”’] these involuntary

bankruptcies under the wrong creditor. It made it look like they were using it for an

improper purpose. [Stewart, 4:24-6:8.]

Unfortunately, the testimony of Mr. Powers does not confirm the truth of some of the statements
made by Mr. Stewart. The purpose of filing these cases is not to collect on the unsecured promissory
notes or find other assets of the alleged debtors, but rather it is to gain time so that a Matsuba employee
can continue to seek a short sale of the first trust deed and thus a Matsuba entity will become the owner
of the property without paying the full amount of the liens on that property. It is to create equity in
property that had none when a Matsuba company gained control of it.

Analyzing the information in the various bankruptcy cases and considering the arguments of
counsel and the testimony of Mr. Powers, a clear pattern emerges, People who have no equity in their

homes (be it houses or condominiums), are facing foreclosure, and want to be relieved of the debts

secured by their real property, go to Dorothy Matsuba or one of her companies. [Powers, 9:20-24;

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Powers, 48:5-49:5,] The homeowner signs the house over to a trust in which the transferor is a partial
owner (usually 20% or 25%) along with others who appear to have no relation to the transferor or to the
property. There seem to be multiple reasons for the transfer, some of which are to allow a Matsuba
company to negotiate with the lien holders, the homeowner associations, lease the property to new
tenants, reconnect utilities, and take similar actions. [Powers, 46:14-23.] Including the transferor as a
beneficiary of the trust is not an indication that the transferor expects to get the property back or to see
any monetary reward from a successful short sale to the trust. (Powers, 47:16-25; Powers 49:9-17.]

Boston Holding, one of the Matsuba companies, advances the homeowner some money
(although it is usually about $20,000, it could be up to $50,000) and the homeowner signs a promissory
note. [Powers, 51:16-19.] There is some ambiguity about the actual use of the money that is
memorialized in the note to Boston Holding. Apparently some may be given to the transferor,
ostensibly for the purpose of making home repairs to get the property into marketable condition. Some
or ail of the money may be used directly by Boston Holding to reinstate a junior deed of trust. [Powers,
§1:20-52:9; Powers, 49:18-50:8.] The note and the transfer are often prepared at about the same time
(and in fact the attached chart demonstrates that those before the court were signed on the same date),
although not by the same people because Boston Holding has a different group of employees from those
who work for Service Co. [Powers, 20:12-18; Powers, 12:6-22.] There is no evidence that Boston
Holding ever intended to be repaid on the promissory notes.

Ms. Reed described the purpose of the unsecured loans as follows:

Boston Holding may pay off the second, maybe repair the property, fix it up a little bit,

give the debtor or the owner of the property, the seller, some moving money for

expenses. It varies on how much they’re loaning out, but that’s for the use of repairing

and managing the property. It’s not like they’re funding loans, but they’re paying off

certain debts and making repairs. [Reed, 6:15-21.]

Once title is transferred to the trust, Matsuba or one of her entities begins negotiating with the
most junior liens to pay them off at less than is owed. From the argument of counsel, it might be
snferred that the other beneficiaries to the trust are the investors whose money is being used to pay for

the short sales and such might be the case as to certain of the beneficiaries, though Mr. Powers could not

testify that this is what occurred. [Powers, 19:9-16.]

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However, based on the limited information contained in the cases filed in this court, it does not
appear that the beneficiaries are actually investors in the respective properties on which they are listed.
This is because some of them are people whose own homes are in foreclosure and it appears that their
names are included as a tool for filing additional bankruptcy petitions in an attempt to “buy” the
Matsuba companies time for further negotiations with recalcitrant lenders. For example, the involuntary
petition package in SV 07- 13927 (attachment hereto line 23, filed 10/ 17) filed against Kristy Macy
Chin at 15842 Magnolia Blvd., Encino, includes a copy of a promissory note executed by Ms. Chin on
January 31, 2007, in favor of Boston Holding in the amount of $30,000. On the note she shows her
address as 15842 Magnolia. According to SV 07-13223 (attachment hereto, line 4, petition filed 9/4),
also filed against Ms. Chin, she transferred her real property to the Worster Trust on January 31, 2007.
This second involuntary petition (SV 07-13223) shows her address as 19526 Roscoe Blvd., #B,
Northridge and the legal description for the Worster Trust real property is at 4719 Wortser Ave.,
Sherman Oaks, CA.!° Yet the Matsuba group would have us believe that on April 9, 2007 Ms. Chin
had money to invest in order to save the house at 26706 Via Bellaza, Valencia, CA and thus became a
beneficiary of the Suh Bellazza Trust (SV 07-13222, attachment hereto line 6, petition filed 9/4) even
though she could not save her own property."

A similar pattern is shown concerning Shanti Lakhanpal, who was a beneficiary of two known

® Line numbers refer to the attached chart.

'© In general these trusts use the street name of the property or some combination of that and the
name of the transferor. In the case of the grant deed attached to SV 07-13223, the trust is identified as the
Worster Trust, but the legal description given corresponds to the address on Wortser Avenue (data for the
common address was obtained through Westlaw).

'! The Chin bankruptcies are particularly complex with five secured creditors listed on some, but
not all of the matrixes; various loans on various properties, but most originating in May 2006, and proofs
of claim dealing with 5 separate addresses : 4719 Wortser Ave., Sherman Oaks, 15842 Magnolia, Encino,
32 N. 3" St., #E, Alhambra, 8825 Canterbury Ave., Los Angeles, and 3367 Sycamore Glen, Pasadena.

Some of these properties appear in other cases in the attached chart.

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trust agreements (Suh Bellazza Trust and Alyssa Trust - see SV 07-12433, attachment hereto line 6,

petition filed 7/13) while creating her own trust in an attempt to save her home (28045 Keepsake Way

Trust - see SV 07-13222, attachment hereto line 6, petition filed 9/4).

According to Mr. Powers, as part of the process of obtaining these properties, some of the

transferors are relocated to other properties managed by Service Co. In fact, some of the transferors are

then moved as tenants from property to property. For example, Mr. Powers testified that the Roscoe

Ave. property is particularly difficult to keep tenants in because of animosity created by Jose Coronado

when he lived in this condominium, leading to complaints by all of the tenants placed there by a

Matsuba company concerning the neighbors and the home owners association. [Powers, 44:8-18.] The

court notes that the Roscoe Ave. property has been the subject of at least four bankruptcy petitions since

April 13, 2007. Mr. Powers testified that “we’ve been working on completing the short sale on that

property for approximately the last year.” [Powers, 30:20-21.] The chart set forth below shows that

19526 Roscoe Blvd, #B has been under an automatic stay for almost all of the last six months and it

appears that no payments have been made to the secured creditor(s) during that time.

19526 Roscoe Bivd. #B, Northridge
type (alleged) debtor case number tled dismissed jcomments
ch. 13 |Jose Ramon SV 07-11200 [4/13/07 6/1/07 face sheet filing,
Coronado dismissed for failure
to appear at
§341(a)/make
payments
ch. 13 {Kristy Macy Chin [SV 07-12378 [7/11/07 8/24/07 face sheet filing,
dismissed for failure
to appear at
§341(a)/make
payments
Invel |\Kristy Macy Chin {SV 07-13223 [9/4/07 10/5/07
invol |Jose Ramon filig rejected [9/26/07
Coronado
invol |Jose Ramon SV 07-13808 | 10/10/07
Coronado

A similar history is shown as to 5018 Don Pio, Woodland Hilis, which also demonstrates that an

automatic stay is obtained in the filing of one bankruptcy that affects properties at a different address in

which the debtor/alleged debtor has no interest at all.

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5018 Don Pio, Woodland Hills, CA

type (alleged) debtor case number filed dismissed

ch, 13 Kyung Jung Lee SV 07-12164 6/26/07 8/16/07

face sheet filing, dismissed for failure to make payments. According to the motion for relief from
stay, the master matrix of Kyung Lee included the loan number for a loan made by the first trust deed
lender to Sergio Casteneda, who executed a grant deed to De Santis Trust recorded 6/17/07. On
9/6/07 an involuntary petition was filed against Sergio Casteneda by the De Santis Trust concerning
12745 De Santis Ave., Sylmar and on 10/9/07 Boston Holding filed an involuntary petition against
Sergio Casteneda at the De Santis address. No payments had been made on the De Santis loan from
Dec. 2006.

ch. 13 Matt Alan Tobias SV 07-12978 8/20/07 10/5/07

face sheet filing, dismissed for failure to appear at §341(a)/make payments. On 10/22 Boston
Holdings filed an involuntary petition against Matt Alan Tobias at 9759 Tunney Ave., Northridge.

invol Kyung Mi You SV 07-13387 9/13/07 10/5/07

filed by Crescent Trust. On 8/28/07, S. Rampart Trust filed an involuntary petition against Kyung Mi
You at 9430 Fox Hill Ln, Chatsworth

One thing is clear: the filing of these multiple voluntary chapter 13 and involuntary chapter 7
petitions is solely for the purpose of obtaining an automatic stay to stop the foreclosing secured creditor
from proceeding so that a Matsuba entity, which may or may not hold an uncollectible debt against the
original borrower, can pressure the foreclosing creditor into accepting a lower payoff. In this way, the
Matsuba entity creates equity in the property where none existed and obtains ownership of the property
for less than was owed on it.

According to Colliers on Bankruptcy, 15" Ed., J 303.06[1], various courts have discussed five
‘dentifiable standards for determining whether an involuntary petition is filed in bad faith and one court
has designated a sixth as the “nose test”:

(1) subjective test - based on the petitioning creditor’s motivation - ie. harassment rather than

collection.

(2) improper purpose test - why did the creditor file - ie. to harm the debtor’s business?

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(3) objective test - what would a reasonable person in the petitioning creditor’s position have
done?

(4) improper use - does the creditor’s action take disproportionate advantage of other creditors -
ie. to reduce an obligation on a guaranty or use the bankruptcy process as if it were the creditor’s own
private collection agency?

(5) combined objective and subjective - similar to that used in Federal Rule of Bankruptcy

Procedure 9011.

(6) nose test - if “it smells like bad faith, it’s got to be bad faith.” In re Better Care, Ltd., 97 BR
405, 409 (Bankr. N.D. Ill. 1989) simply states that although courts use fancy tests, the judges really are
relying on the smell test.

In general, motions to dismiss involuntary petitions are brought by the alleged debtor. But the
bankruptcy court need not wait for the alleged debtor to act. This is particularly true in a collusive filing
between the alleged debtor and the petitioning creditor(s), since the alleged debtor certainly will not
seek sanctions or to dismiss. Assuming that the petition is ever served, the alleged debtor would likely
stipulate to entry of the order for relief or may merely fail to answer and allow the order for relief to be
entered by default. Or the petitioning creditor may never serve the summons, since the petitioning
creditor obtained the desired time and no longer cares if the case is dismissed. Alternatively, the burden
is placed on the foreclosing secured creditor to seek and obtain relief from the automatic stay and,
perhaps after several filings by or against different individuals affecting a single property, put an end to
the farce by obtaining an order under 11 USC §362(d)(4).

The court need not defer to the alleged debtor or another creditor, but can act on its own:

It is proper for the Court to inquire to what extent the Debtor is involved in the institution

of an involuntary case and if it appears there was collusion between the Debtor and the

petitioning creditors, and they fraudulently invoked the jurisdiction of the Court, the

Court will not tolerate the maintenance of an involuntary petition. In re Winn, 49 B.R.

237, 239 (Bankr., M.D..Fla. 1985), quoted with approval in F.D.LC. v. Cortez (In re
Cortez), 96. F.3d 50, 51 (2d Cir. 1996).”

2 Although Winn infers that the court’s ability to inquire is limited to a situation in which it is
requested to do so (such as by the secured creditor), the second circuit places no such limitation in its
opinion in Cortez.

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The testimony of Mr. Powers demonstrates that from the beginning of the note/trust process,
bankruptcy was a known option and that the transferor consented to the possible filing of an involuntary
petition. In fact, the involuntary is filed when the transferor cannot be located or refuses to file a
voluntary chapter 13 petition to stay the foreclosure sale. [Powers, 50:9-23; Powers, 22:6-23:2; Powers,
37:3-14; Powers, 28:11-30:21.]

Although there are not many published decisions defining what constitutes a bad faith filing of a
facially correct involuntary petition, some guidance exists which applies to the facts in this series of
cases. Inre Stern, 268 B.R. 390 (Bankr., S.D.N.Y. 2001) is particularly instructive.

In Stern, a chapter 11 involuntary petition was filed against Ms. Stern to stay a foreclosure sale.
After relief from stay was granted to the foreclosing creditor, the involuntary petition was dismissed by
the court for failure to prosecute because it had never been served. About six weeks later a second
chapter 11 involuntary petition was filed against Ms. Stern by a different group of petitioning creditors.
Once again no action was taken to serve the petition, but several months later the secured creditor again
sought relief from the automatic stay. At the lift stay hearing it was determined by the court that the
purpose of the filing of the involuntary petition was to stall the bank’s foreclosure sale on Ms. Stern’s
house so that the petitioning creditors could try to purchase the house by negotiating with the bank in an
attempt to convince the bank to take less than it was owed. The court found this to be a “dubious
motive” and set a hearing on sanctions. The court noted that these petitioning creditors were involved in
two other involuntary chapter 11 petitions in a different district (the Eastern District of New York -
apparently against other debtors), both of which were dismissed for failure to prosecute.

At the sanctions hearing, the court found that these petitioning creditors believed that their
claims would not be paid out of the proceeds of a foreclosure sale, though they did not know the value
of the property. The court also found that if the purpose of the filing really was to be paid and there was
equity in the property, an involuntary petition might be in good faith so long as the petitioning creditors
moved expeditiously for an order for relief and to appoint a trustee to liquidate the property and thus
realize on the equity. But if the purpose was merely to buy the property from the bank, the petitioning

creditors should have done that by bidding at the foreclosure sale. The court determined that the latter

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reason was the purpose for filing:
Finally, [one of the petitioning creditor’s] statements that the Petitioning Creditors did
not know the value of [alleged debtor’s] home, but wanted to prevent the foreclosure to
"see what the bank really wanted as a settlement offer" tend to show that the Petitioning
Creditors did not file this petition to preserve equity but rather to harass and delay the
mortgagee bank. Id, at 394-5.
The court ordered that the petitioning creditors pay sanctions to the court.
Although the Stern case is most similar to the actions of Deborah Matsuba and her affiliates,
there are other opinions which help flesh out the issue of when a technically correct involuntary petition
is filed in bad faith.

In re Delray Associates Ltd., 212 B.R. 511 (Bankr., D. Md., 1997) concerned an involuntary

petition filed after the default on a confirmed chapter 11 plan in the prior case. The court held that the
second filing was orchestrated by the debtor and thus deemed this to be a serial filing and in bad faith.
The court dismissed the case.

In re Valdez, 250 B.R. 386 (D. Or. 1999) started with a chapter 13, which was dismissed for bad
faith because the debtor had not revealed all assets and had filed for the sole purpose of forum shopping
in order to resolve a tax dispute. Two weeks later the debtor’s former attorney filed an involuntary
petition under chapter 7 for fees owed. When the debtor went back to the attorney (now the petitioning
creditor) for help in responding to the petition, the attorney either prepared the answer himself or had an
associate in his firm do it. Once again the assets were omitted. The district court affirmed the
dismissal, finding that although there was no collusion in the filing of the petition, collusion existed in
the preparation of the response and that this was done to circumvent the court’s prior order.

However, a case started in a collusive fashion can be saved if the court finds that reorganization

is possible and the case passes the “nose test.” For example, in In re Kingston Square Associates, 214

B.R. 713 (Bankr. $.D.N.Y. 1997), the debtor orchestrated the involuntary chapter 11 petition by
soliciting creditors to sign it because the provisions of corporate governance did not allow the
corporation to file a voluntary petition. But the court found that the bankruptcy was necessary to
prevent the loss of value and the potential for reorganization and since the debtor did not violate any
statute or order, the court did not dismiss the case.

The situation before this court falls squarely within the category of the improper use of 11 USC

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Se SO fk OF 8 BO Be SF SG Ge wD NH FY KY FS

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§303 in that the actions by the petitioning creditor take disproportionate advantage of the secured
creditors by imposing the automatic stay in order to give the petitioning creditor time and leverage to
negotiate the payoff of that lien for less than is owed. The history of the involuntary petitions filed by
Boston Holding, Service Co. or Trust Holding and other Matsuba entities and affiliates before this court
demonstrate that the stay may be invoked not just once, but several times as to each property through
multiple bankruptcy filings, both voluntary and involuntary.

As noted above, there is no single test to determine bad faith. It very much depends on the facts
of each case. The involuntary petitions filed by the various Matsuba entities and affiliates (through the
series of specific trusts) fall into the category of those in which one creditor seeks a disproportionate
advantage over another creditor. This is grounds for dismissal:

An improper use of the Bankruptcy Code justifying a finding of bad faith will then exist

any time a creditor uses an involuntary bankruptcy to obtain a disproportionate advantage

to that particular creditor's position, rather than to protect against other creditors

obtaining such a disproportionate advantage. In re Better Care Ltd., 97 B.R. 405, 411
(Bankr., N.D. Hl. 1989).

Although there is a presumption of good faith in favor of the petitioning creditor, this can be
overcome when the court looks at the totality of the circumstances. Included in the tests used to
determine the totality of the circumstances is whether the petitioning creditor “attempts to obtain

disproportionate advantage by means of an involuntary filing.” In re John Richards Home Building Co.,

LLC, 439 F.3d 248, 254 (6" Cir. 2006).

The Ninth Circuit has no opinion setting forth the standard in a situation like the one before this
court. But in dealing with dismissal of an involuntary petition because the petitioning creditor fails to
prove that the alleged debtor has generally not been paying its debts, the Ninth Circuit did adopt the
totality of the circumstances test. In re Vortex, 277 F.3d 1057 (9" Cir. 2002). See also Wechsler v.
Macke Int’l Trade. Inc. (In re Macke Int’! Trade. inc.), 370 B.R. 236, 247 (BAP, 9" Cir. 2007). It

appears to this court that the totality of the circumstances test is the appropriate one to apply in
determining whether the petitioning creditor is attempting to obtain a disproportionate advantage over
another creditor or creditors by means of filing an involuntary bankruptcy petition.

Further, the Ninth Circuit Bankruptcy Appellate Panel has held that whether a party has acted in

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oOo ~~ NO Uw BF WH NN YF Oo Oo CO HS OUDN OUllrllUlULDlUlULMhGlUCUNlClULUKlLlLU

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bad faith is a question of fact to be determined by an objective test. If a reasonable person would

believe that these actions constitute bad faith, then the court should find that they are bad faith. Jeffe v.

Waverlength, Inc. (In re Wavelength, Inc.), 61 B.R. 614, 620 (BAP 9" Cir. 1986). This is grounds for

dismissing an involuntary petition.

Because the totality of the circumstances here demonstrates that this group of cases was filed ina
collusive fashion primarily to take advantage of the secured lender and with no true intention to collect
an unsecrued debt, and a reasonable person would find that such action is in bad faith, they are in bad

faith and this is an improper use of 11 USC §303.

Based on the above, the court will dismiss the involuntary petitions set for hearing on October

18, 2007.

DATED: «(/¢/+7
<TD MOND

X United States wee Judge )
paTeD: NOV -9 2007

KATHLEEN THOMPSON
United States Bankruptcy Judge

(1G (07 7 MAUREEN A.CIIGHE
United States Bankruptcy Judge

DATED:

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

INVOLUNTARY PETITION INFORMATION

DATE FILED GASENG, ALLEGED DESTOR INVOLUNTARY PROP. ADDRESS PETITIONING CREDITOR CLAIM
° —— — 6500 Owensmouth Trust, Young Park trustea, Trust [Real Eslale - :
1 8/27/2007] SV 07-13086 GM | Soraya Furabaz 5530 Owensmouth Av., Woodland Hills, CA Hokling Service: Trust Holding Co $180,000
.R rt Trust, Dan PF: trustee, Trust Holding {Real Estate -
2) @f28/2007/SV 07-43407 KT |Kyung Jung Lee 9430 Fox Hill Ln, Chatsworth, CA S vce must, Man Mowers trustee, 1Cus! J 3600 000 8
. . . Samoa Trust, Dan Powers tnistee, Trust Holding Real Estate -
3 8/28/2G07|S¥V 07-13108 KT [Suck Ju Kim 10329 Wish Av., Granada Hills, CA Service $250,600
j 17431 Elkwood Trust, Danie? Powers trustes, Trust [Real Estate -
4] aearz007]SV 07-13148 KT [Andrea Fuller 47431 Eflwood St, Northridge, CA Hale nae viet anier PO $350 000
ve “on — a | Young Park trustee, Trust |Real Estate -
5] 14/2007) SV 07-13223 MT [Kiiaty Macy Chin 19526 Resnoe Blvd, #8, Northridge, CA Me Noldng ce Blvd, Trust, Young Park trustee, Trus 3600.000
- 26045 Keepsake Way Trust, ‘Young Park trustee, Reai Estate -
a 9/4/2007|SV 07-13222 KT |Shanti Lakhanpal 28045 Keepsake Way, Valencia, CA Trust 4 ing 5 evi. Trust Hol inn Co $400,000
7 9/4/2007] SV 07-13233 KT | Michael Willams 4330 Alhama Dr., Woodland Hills, CA fan co Or. Trust, Young Park trustes, Trust $700,000. 7
s| — gverza07|Sv 07-13269 KT | Sergio Castaneda . 42746 De Santis Av., Sylinar CA __ [Be Santis Trust, Saniel Powers trustee, Tnist Holding {feat F tate -
a] 9719/2007/SV 07-1337 KT [Gerardo Tomes: S844 Fallbrnak Ave, Woodland Hills, CA ee caving Trust, Daniel Powers trustee, West hen cae
10] 9/132007]Sv o7-13387 KT |Kyung Mi You 8618 Oon Pia Dr; Woodland Hills, CA: aes ust Daniel Powers trustee, Trust Holding Seon con® -
1 ‘ . . Real Estaia -
SN 4f2007|S¥ 07-13410 MT |Teme Lynn Manning 4727 Greenbush Av., Sherman Oaks, CA Creative Group Resources by Ramon Garcia $400,000
42 9/20/2007] SV 07-13483 MT | Armen Aiakheryan 0131 Vanatden Av., Northidge, CA Serdcing Co Daniel Powers trustee, West Side Sango *
13| 9/24/2007] Sv 07-13519 GM | Ronald de la Fuente 6501 Radford Av, N. Hollywood, CA Radlord Teust Darvel Powers, Trust Holding Service Real Fsiato -
14 9/26/2007| Filing rejected Jose Coronada: 19526 Roscoe. Blvd. #8, “Norhridga, CA. ‘| Trust Holding Service Reai Estate
15| 9/26/2007] Filing rejected = | Yushian Lian 5600 Owensmouth:Ay.,; Woodland Hills, CA!" |Lian Alix Trust, Trust Holding Service Co. ean Fate -
: : Real Estale -
16] 9/26/2007] Filing rejected 19947 Marridy St, Chatswarth, CA bala ating Trust, Mardi Gras Trust, St Ives Trust, ae oue
$2,400,000

VF 4O/OF2007;

SV 07-13777 GM

Mi La Sul

29152 Discavery Ridge Dr, Santa Clanta, CA

Boston Holding/Dorathy Matsuba

Promissory Note -

$36,000

U:linvoluntaries.expanded.xs, page 1

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11/8/2007

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

[INVOLUNTARY PETITION INFORMATI

Sergid Castaneda _

DATE FILEO CasenO ALLEGED DEBTOR INVOLUNTARY PROP. ADDRESS PETITIONING CREDITOR CLAIM
taf aver20n7] SV 07-13778 GM | Tai Hae Pack - 17611 Enadia Way, Van Nuys, CA Baston Holding/Darothy Matsuba onal Note -
19) = 10/9/2007|SV 07-13779 KT 12745 De Santis Av., Sylmar CA Boston Hoiding/Dorathy Matsuba Promissory Note -

$35,000

20 10/10/2007)

SV 07-13808 MT

lose Ramon Coronado

19526 Roscoe Blvd, #8, Northridge, CA

'|Baston Holding/Dorothy Matsuba

21 10/10/2007

SV 07-13809 KT

Priya Lakhanpal

20200 Devonshire St, Chatsworth, CA

Boston Haiding/Dorclhy Matsuba

Promissory Note -
$24,000

Promissory Nate -

$41,000

22] 10917/2007|Sv 07-13924 GM | Thao Huynh 12024 Susan Dr, Granada Hilts, CA Boston Hoiding/Dorathy Matsuba Son von Nate -
23f 10/17/2007|SV a?-13927 MT |Knisty Macy Chin : 15842 Magnolia Blvd., Encino, CA Boston Hoiding/Dorathy Matsuba Sanasory Note -
24) 40/19/2007/SV 07-13969 KT [Chun Ho Shin 10580 White Oak Ava, Granada Hills, CA Boston Holding/Dorathy Matsuba iil Nate -
25t t0/19/2007|S¥V 07-13970 GM | I Hyun Jang 5022 Don Pio Dr., Woediand Hills, GA Soston Holding/Dorathy Matsuba ad Note -
26/ 10/22/2007|SV 07-13997 KT |MMatt Alan Tobias © : | 9759 Tunney Ava., Northridge, CA @oston Holding/Dorothy Matsuba Seg Note
27} 10/22/2007|Sv 07-14020 GM |Mimi Benishai Yoshibayev © | |/4815 Kester Ava, #10, Sherman Caks, CA Boston Holding/Dorolhy Matsuba sarona Nate -

28] | 10/25/2007

SV 07-14072 KT

Gerardo Torres

“6644 Falbrook'Ave., Woadland Fills, GA ©

“Boston Holding/Dorothy Matsuba

Promissory Nota -
$28,000

29 10/25/2007)

SV 07-14074 KF

Yate Buckner

2613 Wanda Ava., Simi Valley, CA

Boston Halding/Corathy Matsuba

Pramissory Note -
$23,000

30] 10/29/2007/S¥ 07-14130 ‘| Nicholas Nadkami Hobbs 14245 Berg St, Syimar, CA Boston Holding/Borothy Matsuba Sor ong Nate -
Miva Wa Laura Lea Shunk

32|na wa Chul Hoon Suk

33) n/a wa Chang Hoon Choi

34|nfa Wa Lisa Lea Smith

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48/2007

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

oer INVOLUNTARY PETITION INFORMATION

DATE FILED CASENO. ALLEGEO DEBTOR INVOLUNTARY PROP. ADDRESS PETITIONING CREDITOR CLAIM
35| nla n/a Ho Seung Shin
36Inia wa Jin Hong
37inéa na William Joseph Hansen
38) na nia Eduarda Alan Luevano
LOS'ANGELES CASES).
te -
39} 1ovar2007/LA 07-18970 SB |Hee Sook Shim 621 Heritage Ct, Azusa, CA Soston Holding/Dorothy Matsuda $31 000 note
- _
40, 10/9/2007)LA 07-18972 AA |Eun Joo Cho B00 W. ist St. #710, Los Angeles, CA Boston Holding/Dorothy Matsuda $30,000 nova
41] 40/9/2007/LA 67-18986 TD |Chunhua Zhao 3171 W. Olympic Blvd. #t, Las Angeles, CA Boston Holding/Dorothy Matsuda $27 000 nate -
. romissary note -
42| — 10/22/2007[LA 07-1949 ER |Ho Dong Jo 10442 Jardine Ave., Sunland CA Boston Holding/Dorothy Matsuda "2 000 Y

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

INVOLUNTARY PETITION INFORMATION

INVOLUNTARY Trust Date of Date of Date
DATE FILED CASE NO. ALLEGED DEBTOR Agreement Grant Deed ta _|Note Deed e Deed Notary Status Conf [Comments on involuntary _
1) wa7eoo7]Sv 07-13086 GM |Soraya Turabaz 3/30/2007 ret nek Co. arsoR007t 4111/2007 [Dorothy Matsuba 10/2/2007 |na pos. Case dismissed 10/4. RFS filed.
2] seaeoo7]sv07-13107 KT | Kyung Jung Lee inten Co. 10/6/2006 Jesse Hong 40/2/2007|no pos, Case dismissed 10/5
no pos. Case dismissed 10/5. RFS filed. Grant deed attached to
Wastside Servicing . invol. Pet. [s tor address at 14140 Samoa Ave. #4, Tujunga. This is
8 Sf2BP2007)S¥ 07-13108 KT /Suck Ju Kim Co, as trusiee 12/5/2006 2/9/2007) Charie Yu tol22007 the prop address per RFS, but not the street address for dr on
i petition. _
4] aaroo7|sv 07-13148 KT | Andrea Fuller Westsive Semicng 4912007) 3/16/2007|Dorathy Matsuba 10/2/2007|na pos. Casa dismissed 10/5.
5 9/4/2007/SV 07-1323 MT [isisty Macy Chin Westside Servicing qateoo7| 47212007 | Alex Herrera 107272007 |no pos. Case dismissed 10/5. Grant deed is to the Worster Trust
Trust Holding eens .
no pos. Case dismissed 10/5. Motion for RFS for 11120
6 9/472007| SV 07-13222 KT |Shanti Lakhanpal peice Co. as 5/14/2007 6/14/2007 /Alex Herrera 10/2/2007 Runnymede, Also motion on Keepsake.
Trust Holding no pos. Case dismissed 10/5. Motion for RFS for Alhama. Also
. motion on 5040 Don Pia (address in Kyung Mi You, 07-13387), but
7 9/4/2007|SV 07-13233 KT |Michae! Williams Serica Co. as S/B/2007 5/15/2007 | Alex Herrera 40/4/2007 ‘oan dacs attached to RFS by Michael Wiliams. Two Novastar
loans also appear on tha matnx of Hong, 07-13106 (#36 herein}
ne ; } ~~ - Casa dismissed 10/5. America's Servicing joan also appears on the
8 9/6/2007) SV O7-13269 KT Sergio Castaneda 7 _ De Santis Trust ; SN8/2007— 6/27/2007 |Alex Herrera mmatnx of Lee, 07-12164 (line 2 hereto).
9] at4/2007/Sv 07-13337 KT |Gerarda Tomas ie ina co 2ve/2007| 4/2/2007] Alex Herrera 40/30'2007| Case dismissed 10/5,
40} 9719/2007| Sv 07-13387 KT | Kyung Mi You gus nena aér2o07| — 4far2007 Erie Yi 40/30/2007| Case dismissed 10/5.
_ Creative Grou Case dismissed 10/5. Creative Group uses address of 21528
11 $/14/2007|SV O7-13440 MT |Tenie Lynn Manning Resources ne 4419/2007 2/16/2006] Dorothy Matsuba 10/8/2007 |Osbome St, Canoga Park, which is the address used by Trust
Halding Service Co
The Peters Trust,
12 9/20/2007 SV 07-13483 MT | Armen Alakheryan West Side 1072772006 Dorathy Matsuba 10/3/20071 Case dismissed 16/4.
Servicing se
Case dismissed 10/12. The National City morgage also appears
iF o7- cif
13 9242007, SV 07-13519 GM Ronald dela Fuente Radford Trust 54/2007 5/25/2007 | Alex Herrera 1162007 on tha matrix of Chat, 07-12689 (#33 herein)
14 9/26/2007 Filing rejected Jose Cordnada. ~ Inivohintary petitian pat signed
15 9/26/2007] Filing rejected = |Yushian Lian Trust Holding S/2007 5/8/2007 [Yoon Yi Cha
Serica Co
16 9/26/2007| Filing rejacted Trust Holding 3729/2007 4/2/2007] Jaime Matsuba 3 grant deeds to the three different trusts. All dates the same date.
Servica Ca. involuntary petitian not signed.
17 40/9/2007] SV 07-13777 GM |MiLa Sul 58/2007 1un4ronr7 dulias Stewart substituted in as attomey for Boston Holdings. RFS
filed.

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

INVOLUNTARY PETITION INFORMATION _

INVOLUNTARY Trust Date of Date of Date
Statu
DATE FILED CASE NO. ALLEGED DEBTOR ; Agreement _ Grant Deed to Note __ [peed ___ IRecorded Deed Notary atus Conf |Comments on [nvoluntary
1B TOSMDOOT TS OT-TSTTe-GhH Tai Hee Pack ws 12/13/2006] 11/14/2007 | Julas Stewart substituted in as attomay for Boston Holdings
19 10/G/20071SV OF-13779 KT [Sergio Castaneda 6/8/2007 11/20/2007! Juiias Stewart substituted in as attorney for Baston Holdings.
20} 10/10/2007/SV 07-13808 MT [Jose Ramon Coranada 47/2007)
21 10/10/2007] SV 07-13809 KT |Prya Lakhanpal 4/17/2007] 11/20/2007 | Julias Stewart substituted in as attorney for Boston Holdings.
20| 10/17/2007|SV 07-13924 GM |Thao Huynh 5113/2007 12/5/2007
23| 10/17/2007/ Sv 07-13927 MT [Kristy Macy Chin 4434/2007
24| 10/19/2007}SV 07-13969 KT [Chun Ho Shin 4412/2007
26 10/39/2007) S¥ G7-13970 GM [Il Hyun Jang 411272007 location of principat assets: 4662 Simane Way, Cypress, CA
26] 10/22/2007/Sv 07-13997 KT [Matt Alan Tobias - 4r1 52007]
27) so/22/2007;SV 07-14020 GM [Mimi Senishai Yoshbayay 3415/2007]
28) 10/26:2007/S¥ a7-14072 KT [Gerardo Tarren: © 4/22/2007 4192772007
29] 10/26r2007|S¥ 07-14074 KT | Yale Buckner 5/2/2007 14/27/2007
30] 10292007|SV 07-14130 —_| Nicholas Nadkami Hobbs 6/21/2007 12/5/2007 Maariv loan also appears on the matrix of Hang, O7-43406 (#36
31|nfa na Laura Lee Shunk
32) na Wa Chul Hoon Suk
33) nfa Ma Chang Hoon Choi
34| n/a ma Lisa Lea Smith

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Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR INVOLUNTARY PETITION INFORMATION
INVOLUNTARY Trust Date of Date of Date
id Not Status Conf |Comments on involuntary
DATE FILED CASE NO. ALLEGED DEBTOR Anreement Grant Deed ta Note Deed Recorded Bee ary atu ru rents
35)|nia a Ho Seung Shin
26 |nia nia Jin Heng
37ina Wa Wiliam Joseph Hansen
3B) na nwa Eduards Alan Luevano
LOS ANGELES CASES |
. Julias Stewart substituted in for patitioning creditor on 10/47.
39 1049/2007}LA 07-18970 SB |Hee Sook Shim - 5112007. a 11/20/2007 Dismissad by court with prejudice - 11/7/07. ;
Jukas Stewart substituted in for petitioning creditor on 10/17
40 Tevsr2007/LA O7-18972 AA [Fun Joo Cho 5/1/2007 ee Cismissed by court with prejudice - 11/7/07. _
- Julias Stewart substituted in for petitioning creditor on 40/17.
Al 10/9/2007] LA 07-18986 TD |Ghunhua Zhao 4734/2007 7 Dismissed by court with prejudice - 14/707 _
42 10/22/2007, LA 07-19491 ER [Ho Bong Jo 11572007; #2/6/2007| Dismissed by court with prejudice - 11/7407.

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Case 1

INFORMATION ON RELATED VOLUNTARY CASES.

DATE, CASE, AND INVOLUNTARY DEBTOR
INVOLUNTARY Related Voluntary data
DATE FILED CASE NO, ALLEGED DEBTOR Teasers) Chapter | Address date filed dismissed Comments on related voluntary case(s}
1 8/27/2007) SV 07-13086 GM }Soraya Turabaz
Face sheel ting. RFS shows loan to Serge Casteneda No
Bed mot paymants from 12/06-8/08. Grant deed to De Santis Trust recroded
2 a2ey2007|SV 07-13107 KT | Kyung Jung Lea SV 07-12164 KT 13 5018 Don Pio, Woodiand Hills, CA <: 6/26/2007) a/18/2007/627/07. This loan on Lee creditor list. The Amenca Service's loan
vibe pee lle aiso appears on the matrix in Casieneda invol., 07-13269 {#8
herein}
3a 8/26/2007/5V 07-13108 KT [Suck Ju Kim
6034 Sunflower §t., Simi Valley, CA; ~
4 afe9/2007/ SV 07-13148 KT | Andrea Fuller SV OF-12233 KT 13 mailing to P.O. 3069, Chatsworth, CA 6/25/2007| 8/16/2007|Face sheet fling No appearance at 341{a), no payments.
91343
7 aren SV 07-12376 MT, SV
5 9/4/2007|S¥ 07-13223 MT Knaty Macy Chin, . 07-12433KT see below
: Face sheel filing. RFS on 26706 Via Bellazza, Valencia, GA - trust
agreement fram Jane Suh transfereing 20% interest each te Kristy
Macy Chin, Ki tian Jeang, Jane Ensook Suh, William Joseph
Hansen, and Shanti Lakhanpal for no consideration. Trust
28045 Keapsake Way, Vatencia, CA; agresment created the Suh Bellazza Trust, Trust Hokling Service
. mailing ta P.G. 3836, Ghatswarth, CA Co, trustee. RES filed as to 19721 Alyssa Dy, Santa Clarita, CA. -
6 9/4/2007) SV 67-1322 KT | Shanti Lakhanpal SV 0712433 KT 13 91313 {same POB as Trust Holding TAAF20N7) B2312007 bust agreement from Chun Yi to Hyeong Lee, then trust agreement
Service on inyvoluntaries) from Hyeong Lae to the Alyssa Trust with 25% interest each to
Hyeong Lee, Seon M. Kim, Shanti Lakhanpai, and Wiliam Joseph
Hansen. Trust Holding Service Co., trustee. The Indymac
mortgage also appears on the matrix of Shin, 07-12946 (#35
herein
7 9/4007|SV 07-3233 KT [Michael Williams
8 16/2007] SV 07-13269 KT |Sergio. Castaneda SV 07-12164 KT see above
9} 9/11/2007|Sv 07-13337 KT [Gerardo.Tores -
10 9/13/2007] SV O7-13387 KT |Kyung Mi You
Face sheet filing. No appearance at 341(a), no payments. The
HW 9/14/2007) SV G7-13410 MT |Terrie Lynn Manning SV 07-11646 MT 13 4727 Greenbush Ave., Sherman Oaks, CA) 5/18/2007) 7/3/2007| America’s Srvicing Ioan also appears on the matrix in Choi, O7-
12699 (#34 herein)
42] g2012007)SV 07-13483 MT [Armen Alakheryan LA 06-40521 EC 7 [3101 Peters Circle, Glendale, CA 2116/2006 Represented by counsel. RFS granted on real property. Deblors
stopped appearing at 341(a).
13 9/24/2007/SV 07-13519 GM |Ronald de la Fuente
4 9/26/2007| Filing rejected Jose Coronado -
15 9/26/2007) Fikng rejected Yushian Lian SV 07-11596 KT 13 4727 Greenbush Ave., Shennan Oaks, CA] 5/15/2007| 7/3/2007|Face sheet filing. No appearance at 341(a}, no payments.
16 9/26/2007) Filing rejected
7 10/9/2007| SV Of-13777 GM |Mi La Sul

U\lnvoluntaries.expanded.xls, page 7

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11/8/2007

58 Desc

15:

Page 23 of 25

Main Document

07-bk-13808-Mr Doc 7 Filed 11/09/07 Entered 11/09/07 14

Case 1

DATE, CASE, AND INVOLUNTARY DEBTOR

JINFORMATION ON RELATED VOLUNTARY CASES

INVOLUNTARY Related Votuntary date :
DATE FILED CASE NO. ALLEGED DEBTOR [Relates Chapter Address - date filed dismissed Comments on related voluntary case(s)
st 6844 Lasaine Ave., Van Nuys, CA; mailing
18 TOSHPONT ST OT=187 78 Git Tal Hee Pack SV 07-10735 GM 13 address - P.O. 3836, Chatsworth, CA 3/2607) 4/19/2007)Face sheet filing. Na appearance ai 344(a), no paymants.
pee 91313 (same as Trust Holding Services}
19 4079/2007 SV 07-13779 KT Sergio Castaneda
ee : . 19526 Roscoe Bivd:,: 45, Norinridga, CA; - Face sheet fling. Na appearance at 341(a), no payments. The
20) = 10/10/2007/SV 07-13808 MT |Jose Ramon Coronado “LSv 07-11200 MT 13 matting address «P.O 3084: Chaisworth,-} 4/13/2007) 6/1/2007) Specialized morigage also appears on the matrix in Chin, 07-12376
UR paeate upp CA 91343- SAS SESE SEES (#5 and 23 herein)
21 10/10/2007) SV 07-13809 KT |Priya Lakhanpal
22 10/17/2007) SV 07-13924 GM [Thao Huynh
: : ; : Face sheet filing. No appearance at 341(a), na payments, Proofs
ae 198 Reece Bl #0, Nervi, CA 2 or ieee eee arts Coenen
23 1OMtF/2007| SV 07-1392 7 MT Kristy Macy Chin, SV 07-12376 MT 13 bom address - P.O: 3068, Chatsworth, TH 12007) 8/24/2007; 3rd St #E, Alhambra; 8825 Canterbury Ave., Los Angeles: and
: eo - : : pee 3367 Sycamore Glen, Pasadena. The specialized morigage also
appears on the matrix in Corenada, 07-13808 (#14 and 20 harein)
24 10/19/2007/ SV O7-13969 KT | Chun Ho Shin
25 10/19/2007/SV 07-13970 GM |# Hyun Jang
a che te Ba SEB ar i 2e 7 Face sheet filing. No appearance at 34 1{a), no payments. The
26 40/22/2007] SV 07-13997 KT : 1s OF-42978 KT 13 5018: Don. Pla Dri: Wweodland Hills, GA: 2: Bi22007| 10/5/2007) Cilimortgage foan aise appears on the matrix in Shin, 07-12946 G36
: : pissed pa egrehe Up fa as herein)
27) © 10/22/2007/SV 07-14020 GM ai Benishai Yoshbayey ©:
28] 10/28/2007|SV 07-14072 KT [Gerardo Torres’
29 10/25/2007/SV 07-14074 KT | Yale Buckner
30 10/29/2007| SV 07-14130 Nicholas Nadkami Hobbs
31 |nva na Laura Lea Shunk SV O7-13604 KT 43 [14930 Kling St. Apt. 3, Valley Vifage, CA | 9/27/2007 fina address P.O, 3069, Chatsworth, CA 91313. Face sheet
32\na na Chul Hoon Suk SV 07 -13692 KT 43 14176 Saddletree Ct, Sylmar, CA 40/3/2007 (ace sre ning Appears to be done by same group, but no direct
maiing address P.O. Box 3069; face sheet pro se filing. Trsut
agreement farm Hyongsun Kate Yoon far & _ Luceme Bi, #203
LA to Luceme 81. Trust, West Side Servicing Ca, te, beneficianes”
Hyongsun Kate Yoon, Ha Dong Jo, Chang Hoon Choi, Yushan
Qian Qu Choul Jung, 10800 Debra Ave. Granada Hills, CA. Trust,
33) na Wa Chang Hean Choi SV 07-12699 MT 13 2558 W. Avenue K6, Lancaster, CA 8/2007) 9/21/2007] West Side Servicing Co., to. beneficiaries. same as on Lucerne
Zshonette Reed substitutes in for debter. Case dismissed for failure
lo appear at 341(a)/make payments. Tne Amefica's Servicing Ioan
also appears on the matrix of Manning, 07-1162 (#11 herein). The
National City mortgage alsa appears on the matrix of de la Fuente,
O7-13519 (#13 herein).
Face sheet filing. Mailing address P.O, 3069, Chatsworlh. 2813
anda Ave, Simi Valley, CA, CCH Investments LP deed this to tha
34|nva va Lisa Lee Smith |sv 07-12824 KT 13. |28 Canterbury De., Northridge, CA 219/2007| erzor2007| Wanda Trust, Trust Holding Service Co, te, heneficiarias seam to be
Yale Buckner (original borrower}, Seven Heflin, Lisa Lea Smith,
Cetia Alicia Caioca. The Greenpoint loan also appears on the matrix
of Hansen, O7-13284 (#37 herein}

UAlnvoluntaries.expanded.xls, page 3

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14/8/2007

58 Desc

15:

Page 24 of 25

Main Document

07-bk-13808-Mr Doc 7 Filed 11/09/07 Entered 11/09/07 14

Case 1

BATE, CASE, AND INVOLUNTARY DEBTOR

DATE FILED

INVOLUNTARY
CASE NO.

ALLEGED DEBTOR

Related Valuni ary
se(s)

ON RELATED VOLUNTARY CASES |

Chapter

Address

date filed

date
dismissed

Comments on related voluntary case(s)

36

a

nfa

Ha Seung Shin

sv OF-12946 KT

5500 Cwensmouth #306, Woodland His, -
Ane ae

8/17/2007

10/5/2007,

Face sheet filing. Dismissed for faiiure to appear at 34 1(a}/make
payments. The Citimortgage loan also appears on the matrix in
Fobias, 07-12979 {#26 here), The Indymac mortgage also
appears on the matrix of Laknanpal, 07-12433 (46 herein)

36

Va

din Hong

SV O?7-13106 MT

3729 Westfall Dr., Enciro, CA

g/2a/2007|

10/15/2007,

Face sheet filing. Mailing address P.O. 3636, Chatsworth. 11762
i alley Vilage, CA - trust agreement from Michael Lee
Daniel to Daniel Collins Trust, Trust Holding Servica Co, te,
benafictaries Michael tea Daniel, Steven Heflin, Jin Hong, Celia
Alicia Catoca, 37461 Limelight Way, Patmdale, CA - tnest
agreement to Limelight Way Trust, Trust Holding Service Co,
trustee, beneficiaries alleged to be Yul Les, Steven Hefiin, Jin Hong,
Celia Alicia Caloca. Case dismissed for faiure to make payments.
12571 rcreaek Ln, Cerritos - trust agreement from Hwan M.
Kim ta PepperCorn Trust, beneficiaries - Kim, Steven Helfin, Jin
Hong, Ceiia Aiicia Caloca. The EMC loan also appears on the
matrix of Hobbs, 07-14130 (#40 herein). Two Novastar toand also
appear on the matrix of Williams, 07-13233 G# 7 herein).

Ki

na

a

William Joseph Hansen

SV 13284 KT

2049 Marter Ave., Simi Valley, CA

86/2007

10/17/2007)

Face sheet filing. Mailing address - P.O. 3069, Chatsworth. 16112
jahey St, Granada Hills, CA -Transferred to Lahey Trust by Mantza
Magana, Trust Holding Service Co, trustee, beneficiaries - Maritza
Magana, Wiliam Joseph Hansen, Alvin Sta Ana, Michael Lee
Daniel. The Greenpoint loan aiso appears on the matnx in Smith,
07-12824 (#34 herein}.

38

wa

va

Eduardo Alan Luevano

SV 07-43406 MT

43

2182 Sequoia Ave., Simi Valtey

94/2007,

Face sheet filing. Mailing address - P.O. 3836, Chatsworh. WAMU
proof of claim shows property at 26718 Via Bellazza, Valencia
deeded fram Sung Wook Kweon to Via Bellazza Trust,

beneficiaries: Kweon, Eduardo Luevana, Tae Kyung Kim, Michael

tee Daniel

LOS ANGELE

S CASES.

30

10972007

LA 07-18970 SB

Hee Sook Shim

40

1/2007

LA 07-18972 AA

Eun Joo Cho

At

10/9/2007,

LA 07-18986 TD

Chunhua Zhao

42

10/22/2007

LA 67-19491 ER

Ho Deng Jo

UAlnvaluntaries expanded xis, page 9

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11/8/2007

bo

Oo oO JT DB WA SS W

10
li
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

Zshonette Reed - Creditor Counsel
15915 Ventura Blvd. Suite 201
Encino, CA 91436

Mi La Sul - Alleged Debtor
29152 Discovery Ridge Dr
Santa Clarita, CA 91390

Julias Stewart - Creditor Counsel
15915 Ventura Bivd #201
Encino, Ca 91436

Sergio Castaneda - Alleged Debtor
12745 De Santis Ave
Sylmar, CA 91342

Priya Lakhanpal - Alleged Debtor
20200 Devonshire St
Chatsworth, CA 91311

U.S. Trustee - Interoffice Mail

Case 1:07-bk-13808-MIT Doc 7 Filed 11/09/07 Entered 11/09/07 14:15:58 Desc

Main Document Page 25 of 25

CERTIFICATE OF MAILING

I, DEWEEE WILSTus , aregularly appointed and qualified clerk of the
United States Bankruptcy Court for the Central District of California, do hereby certify that
in the performance of my duties as such clerk, I personally mailed to each of the parties
listed below, at the addresses set opposite their respective names, a copy of the

MEMORANDUM OF OPINION REGARDING ORDER TO SHOW CAUSE
REGARDING MULTIPLE INVOLUNTARY BANKRUPTCY PETITIONS

in the within matter. That said envelope containing said copy was deposited by me in a
regular United States mailbox in the City of Los Angeles, in said District, on

NOV 92007
Boston Holding Company -
Petitioning Creditor
PO Box 3836

Chatsworth, CA 91313

Tai Hee Pack - Alleged Debtor
17611 Enadia Way
Van Nuys, CA 91406

Jose Ramon Coronado- Alleged Debtor
19526 Roscoe Blvd # B
Northridge, CA 91324

Thao Huynh - Alleged Debtor
12024 Susan Dr
Granada Hills, CA 91344

Yb MO Wilkow

(Clerk)

-16-