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SPRINGVILLE | 11 APRIL 2008 | Ending the first quarter of 2008 FranklinSquires Companies, LLC continues with its efforts announced February 11, 2008 to reduce expenses and pay creditors – particularly creditors of two if its subsidiary entities New Castle Holdings, LLC and Hill Erickson, LLC.The real estate market continues to be difficult with tight credit, falling prices, and large uncertainty in the marketplace. The real estate portfolio of New Castle and Hill Erickson continues to suffer the consequences of these factors.Answers to Frequently Asked Questions during the first quarter of 2008.
Answer: Yes. The company has downsized, reducing expenses and overhead but is still conducting business and intends to continue so to do.
Answer: Mr. Koerber and several owners and partners have continue to manage the affairs of the company.
Answer: No.
Answer: FranklinSquires has had a substantial influence over many of its subsidiaries over the last several years. As such, with FranklinSquires downsizing during the first quarter of the year, other companies in the FranklinSquires portfolio have had to be self-reliant financially and with staff. This has been a difficult transition but no serious changes or announcements are forthcoming.
Answer: In the estimation of management the company has sufficient resources to ensure that all creditors will be paid. Cash flow remains inadequate, but more than half of all creditors have been paid in full, others have been paid partially, and many have been scheduled for payments over the last several weeks. While the company can not project with any degree of certainly how long it will take to finish paying remaining creditors, it is confident that all will be paid.
Answer: To the best knowledge of the company, state regulators have not made any official allegations, filed any administrative actions, or made any civil or other charges against Koerber, company, or the company itself.Admits the controversy surrounding the State of Utah’s Department of Commerce, particularly the Securities Division, the companies position is that it was a very positive development to see the resignation of Securities Division Director Mr. Wayne Klein in February. Mr. Klein, in the judgment of the company, and his division have done more harm than good to the citizens of Utah. Unfortunately, members of that same Division have lied, deceived, and continue to behave recklessly in the pursuit of their duties and Ms. Giani fails to take seriously her appointment – having appointed Mr. Thad LaVar as the interim Division Director. Mr. LaVar has no background in securities yet has been put over the interpretation, enforcement, and supervision of all legal matters related to administrative rules and statutory compliance. From recent evidence it seems that Mr. LaVar is simply rubber stamping the same types of actions for which Klein was so adamantly criticized. This is an embarrassment to the State of Utah. FranklinSquires lends its support to the numerous other businesses and members of the State Government hoping that the ongoing State audit of the Division results in a complete reformation of the entire Department of Commerce and the elimination of individuals who are incompetent, unqualified, or corrupt.In the mean time, absent action by the regulators, the company continues to focus on actually doing business.
Answer: Mr. Paisola and several others have recently been sued by FranklinSquires for their conduct, namely spreading false and slanderous information, defamation per se and other related charge. The company is also currently reviewing appropriate legal responses to others whose conduct has become criminal in nature. The company is confident that those who are interested in the facts will consult reputable sources of information rather than the unprofessional, sensational, and factually irrelevant efforts of Mr. Paisola and others like him. The company also wishes to warn individuals against taking advice from Mr. Paisola and other similar “internet posters’ who “claim” to be able to help in matters related to FranklinSquires but in the end simply seek to exploit legitimate concerns for their own gain.
Answer: Founders Capital continues in operation. Founders Capital has regular meetings with its owners/investors and is participating in the real estate liquidation plan described previously.Sadly, FranklinSquires has learned of still more incidents where individuals loosely associated with FranklinSquires or FranklinSquires partners have misrepresented their relationship to their own investors in an effort to seek to avoid responsibility for their own actions. Having received almost 50 inquiries during the first quarter of the year from individuals who were presumably “told” that they were investing in FranklinSquires or Founders Capital – none of them had actually done so. All explanations aside, the best indication of where a person’s “money went” is first and foremost the person who took the “investment” money and secondly the paper or note documenting which entity was “issuing” such an investment opportunity.While it is true that many of the FranklinSquires and Founders Capital creditors themselves have investors (meaning, many people have invested in companies that subsequently loaned money or other value to FranklinSquires or Founders Capital) those investors are misinformed and mistaken if they believe that FranklinSquires, Founders Capital or partners in these entities are responsible for their investment. It is quite simply impossible for FranklinSquires or Founders to be responsible for agreements that they were not a party to or in any way directly involved in setting up terms or conditions of the transaction. Those who are suggesting otherwise, in the experience of the company, are those who are seeking to escape their own responsibility for what they promised and what they communicated to their investors. NOTE: FranklinSquires is working with all persons who make honest inquiry to identify the rightly responsible parties. Where FranklinSquires has influence or relationships it continues working to assist all creditors and investors of creditors to receive repayment as soon as possible.
Answer: FranklinSquires has always taught individuals to avoid unprincipled speculation and has cautioned individuals against mortgaging their personal residence for possible investment gain under almost all circumstances. FranklinSquires has never taught or advertised than any investment was devoid of serious risks, on the contrary one of our core values is “self-reliance” which includes the responsibility for ones financial decisions, and making appropriate due diligence. In this light and for this reason the company completely and heartily endorses the recent announcement and advice made by The Church of Jesus Christ of Latter-day Saints and is working to verify and ensure that all of the teaching and training materials distributed by any of our related companies is in harmony with the principles outlined.
Answer: The contact information for the company listed on the franklinsquires.com website is the best method. In addition, the following statement issued by Mr. Koerber in a recent public meeting may help:
“I want to personally thank all of our clients, creditors, students, partners, past employees and colleagues who have been kind and supportive during this period in our business. With the exception of a few incomplete news articles the support we have received from our friends, associates and the community has been exceptional. To the extent that I or FranklinSquires and our companies have failed to pay our bills or meet our obligations I recognize we are out of integrity and are making it the highest of our priorities to rectify the situation as quickly as we can. I extend my personal apology and our collective apology to all who have been injured by our failure to live up to expectations and agreements. I understand something about financial difficulty and its consequences and that is what drives me and my team to continue rather than just ‘give up’ and walk away. We are all human. Looking back, I’m sure there is much that I might have done differently knowing what we know today. The one thing I am confident of is that my partners and I along with the members of our team have dealt honestly and fairly with our clients and creditors to the best of our ability and where we are out of integrity at present I am confident that with hard work, lots of faith, and the pass of time, we can fully rectify the current situation. To those who are trying to assist us, I also personally thank you. For those who are trying to contact me and/or others related to FranklinSquires I ask that you be as patient as possible. The volume of phone, voicemail, email, and written correspondence is something we are still having difficulty managing. The best method of communication is email or written letter – though I understand both of those are not as timely as a simple phone call, often it is more reliable for both parties. We are doing all we can to stay in constant communication with all who sincerely inquire. I believe we are doing better, and I believe we can do better still – we will continue to work at it.”