Kirk Wright's LA Connection - GTO Development LLC
According to court documents in the bankrucpty of Kirk Wright's hedge funds, Mr. Wright invested approximately $6 million with GTO Development LLC, in three real estate projects.
GTO Development LLC is a Los Angeles based real estate development company, whose CEO is Mr. Fred S. Shaffer. They appear to be redeveloping the Old Spaghetti Factory restaurant on Sunset Blvd, in Hollywood, ArrowHead Canyon Eastes, and fighting a battle with residents who want their building declared an historical site, which would restrict or eliminate the redevelopment.
Very recently, June 15, 2006, GTO was one of the sponsors of a conference on the redevelopment of Vine Street in Hollywood. According to the California Corporate website, there is also a GTO Development II LLC.
Here is what is odd about all of this. Do you think that Kirk Wright could have legitimately convinced his investors to invest $6 million in somewhat illiquid real estate developments in Los Angeles?
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Yes, from all accounts he probably could have. Apparently, he is quite charming. So why the preference for the swindle over the honest, but risky business deal?
Technorati Tags: development llc, gto, los angeles based, real estate development, old spaghetti factory, hollywood, sunset blvd, vine street, court documents, hedge funds, shaffer, arrowhead, bankrucpty, kirk wright
Comments
Will these assets, or whatever is obtained from them at auction or sale, be added to a pool to be fractionally returned to all investors? Assuming that there is any left after the receiver and God knows who else takes their cut?
Posted by: Anonymous | July 7, 2006 3:50 PM
Considering that he had lost money in everything else, perhaps real estate seemed like a sure thing. Besides, it seems that he never revealed to his investors what he was investing in and there seem to be few records to show that he invested in anything at all.
Posted by: Annon | June 23, 2006 2:19 AM