Demanding Accountability

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Rico Suit Looms
Deer Creek Ranch Scandal

By US~Observer Staff

Selma, Oregon - The time for the many co-conspirators to answer for their crimes regarding the Deer Creek Ranch and Fountainhead Global Trust (FGT) scandal is about to arrive. Within the next two weeks a civil "Rico" action along with other actions will be filed against them in the Josephine County Courts. This action may eventually find itself in the federal courts and if the U.S. Attorney's office does their job for a change, then a criminal Rico action should follow. It should be noted that the Justice Department has had more than enough solid evidence to indict the main players of this scam but have failed to act on the major culprits as we go to press. We could attribute this in part to their chasing of “wild geese” and their attempts to turn victims into criminals. We have been informed that certain Eugene and Portland area attorneys and the law firms they represent will be named as defendants in the up-coming civil Rico lawsuit.

Originally the main conspirators were Roy Fritts, Rick Prescott, Karla Prescott, William Joe Little Jr. and Mike and Linda Gause. William Joe Little Jr. and Mike Gause have served prison time for their actions. Rick Prescott and Roy Fritts have been indicted by a federal grand jury and that trial is set for December 5, 2006, in federal court located in Medford, Oregon. So far Karla Prescott, one of the major recipients of hundreds of thousands of dollars swindled from investors and Linda Gause, wife of Mike Gause of Cash For Title (C4T) and an alleged recipient of major dollars have not been indicted. Along the way a few of the original victims of this multi million dollar investment scam have joined the conspiracy, the most notable of which is Glenn Kierstead of Vacaville, California.

Victimization On-going

Some individuals continue to be victimized. These would include Ron Gibson and Peter B. Thompson both of Selma, Oregon. Gibson originally purchased two properties adjoining the main Deer Creek Ranch from Fiduciary Educational Society (FES) which was the legal owner of the ranch at the time of the purchase. Kierstead subsequently foreclosed on a Trust Deed given to him by FES. The amount of the debt secured by the Trust Deed was allegedly $533,000.00 when in fact Kierstead loaned only about $234,000.00. At the foreclosure sale the main Deer Creek Ranch was sold for over two million dollars. We should note that the sales price was pre-determined prior to the staged auction on the steps of the Josephine County Courthouse. After the bogus bid and subsequent “selling” of the ranch, Kierstead's Trustee William W. Bromley, along with his Attorney Judson M. Carusone, both from Eugene, Oregon sold the two properties belonging to Ron Gibson! Kierstead himself "bought" these two properties for $300,000.00 by claiming (even after the sale of the main ranch, thereby settling any and all claims) that a $265,000.00 lien remained on Gibson's properties. Several Attorneys have advised the Observer and Gibson that the sale of Gibson's properties was illegal because Kierstead's lien had been more than satisfied by the sale of the main ranch and that the sale was illegal on its face. This issue is also about to be litigated in the up-coming Rico suit.

Kierstead has made several attempts to evict Gibson and Thompson from one of the two properties and although the Josephine County Circuit Court, Judge Rebecca Orf presiding, allowed that eviction in April, 2006, Gibson and Thompson have managed to stave it off so far due to an appeal and the posting of a cash bond.

On August 30, 2006, Pro Tem Judge Victory Walker presided over a hearing wherein Kierstead’s attorney Judson Carusone attempted to raise the amount of Gibson’s supercidious bond from $3,000.00 to $30,000.00. Gibson moved to recuse Walker but this arrogant “wanna-be judge” refused to recuse herself despite the fact the statutes require her to do so upon defendant Gibson's motion. Walker then ruled against the law and rubberstamped Carusone’s ludicrous motion. Gibson complained to the Judicial Fitness and Disability Commission and Thompson complained to presiding local Judge Lyndi Baker. For the moment these actions appear to have stopped Kierstead but not before Walker attempted to raise the amount of the Appellate Court bond to $11,400.00, along with telling Kierstead's attorney that she would order the eviction of the defendants with only a 30 minute prior notice, something Thompson is already suing the Josephine County Sheriff’s Department for in the amount of $106,000.00 regarding a 30 minute eviction from the ranch on May 21, 2004. During the hearing Walker blatantly violated numerous provisions of the “Oregon Code Of Judicial Conduct.” The Observer placed a call to Judge Lyndi Baker with no response. Hopefully Judge Baker didn’t receive our message because the last thing we need in our community are public servants who refuse questions from the press.

As a momentary aside, Thompson had also been in court as an observer on August 24, 2006, and witnessed Judge Pat Wolke hear three of his own brother's, Dan Wolke's, criminal cases. Thompson then complained to the Judicial Commission on Fitness and Disability and Judge Baker. The Observer is confident that Judge Baker will handle this situation but if not then the Observer itself will be compelled to concentrate on the correcting of the Josephine County Courts through public pressure, given how out of control Judges Walker and Wolke are.

Back to Conspiracies

Now, more about the relationship between Karla Prescott, Glenn Kierstead and the purchaser of the ranch at the foreclosure sale, Western Rivers Conservancy. It was originally Rick Prescott and Gary Brummett (Karla Prescott's father) that negotiated the loan with Kierstead. On the same day the Trust Deed was executed by FES, June 17, 2002, Thompson was appointed as a Trustee of FES.

When Trustees Peter Thompson and Ivan Cermak fired Kierstead's friend and Trustee and career criminal Rick Prescott on August 3, 2002, Kierstead responded by filing his foreclosure suit 12 days later even though FES was not in default on the contract. It was actually Kierstead who had not preformed on his contract obligations, thereby forcing FES to file for bankruptcy protection. From that point forward the Prescotts and Kierstead closed ranks to defeat FES. One important aspect that always needs to be kept in mind is that most of the players that were mentioned at the beginning of this article except Thompson, Gibson, Cermak and Western Rivers (possibly) all have something in common; they are all members of the same alleged "religious" cult and they have cunningly worked together to accomplish their crimes. It is more than apparent that certain judges and lawyers have aided and assisted these despicable criminals reach their intended goal (read more about these “legal” enablers in our next edition).

From August 15, 2002, forward these folks worked, conspired and lied to get the ranch from FES and add it to the assets of FGT. In a subsequent hearing an incompetent Josephine County Circuit Court Judge Michael Newman ignored concrete legal rules and awarded the ranch to FGT/Karla Prescott based on a forged and utterly deceptive “copy” of a Promissory Note dated June 25, 1998. Credible testimony was given during this hearing regarding the forgery as well as other facts regarding Prescott’s fraud; however Judge Newman conveniently ignored this testimony, thereby facilitating fraud upon his own court. Since when is a “copy” of a Promissory Note admissible into court Judge Newman?

When Karla Prescott obtained a $200,000.00 earnest money deposit from Western Rivers Conservancy on April 1, 2005 and gave them a recorded Trust Deed, she not only blatantly violated a Bankruptcy Court stay but she obtained the loan by allegedly having “special relations” with one of the principals of Western Rivers. And let’s not forget that Prescott was represented by “legal council” at the time of this corruptionist transaction. Karla Prescott, much like her “husband” Rick Prescott has become polished over the years at the practice of chicanery, meaning that she has learned to steal, cheat and lie on a professional basis from individuals without any concern over being held accountable by either the justice system or the courts. One must wonder how much of the $200,000.00 mentioned above went to Eugene and Portland area attorneys…

Western Rivers, or at the very least its Director had to suspect they were getting into a crooked deal. Either Kierstead and/or Western Rivers decided to deed Karla Prescott 160 acres of ranch land along with a triple wide mobile home. Furthermore, Western Rivers leased Karla Prescott almost 300 additional acres of land for $1.00 per year which she has in turn leased to Anderson Dairy of Coquille, Oregon for at least $1,200.00 per month. Keep in mind that all money, land, assets, or other valuables controlled by Karla Prescott, including the Deer Creek Ranch were derived from the stolen assets of those who invested their hard earned dollars with National Trust Services (NTS) and Fountainhead Global Trust. In other words, everything that is occurring with the ranch, etc., is simply the product of a well conducted racketeering scheme and the justice department has all the proof of this fact.

Once again the Observer requests that anyone having personal knowledge of this scam or any portion thereof, please contact the Observer at 541-474-7885 and relate to us your experiences.

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