Thursday, January 22, 2009

Gadi Leshem Update: Gadi Claims He's Still in the River Project Game

The "moneyman" offers assurances... and purports to have "other investors" in tow

Mainly for the sake of archival consistency, we'll briefly highlight this morning's Scott Schwebke story, wherein Mr. Schwebke provides something of an Ogden River Project update. "Moneyman" Gadi Leshem has resurfaced, at least for the moment. He's furnished Mr. Schwebke a "prepared statement," wherein he reportedly offers the citizens of Ogden City his assurances that his presently embryonic River Project plans (such as they are) will be unaffected by his floor installation company Chapter 11 Bankruptcy.

Although most of this morning's article amounts to a rehash of matter earlier reported by the Standard-Examiner and other print media, there is one new tidbit worthy of note:

For the first time, Mr. Leshem represents that he's working with an unnamed pool of "other investors," and that he therefore won't be required to rely upon revenue from his Cover-All, Inc. business to move his project(s) forward. Assuming Mr. Leshem can be taken at his word, this is probably a good thing, inasmuch as his statement contains other information that is less than encouraging:
Leshem also said the future of Cover-All is uncertain because of the economy and a sharp decline in consumer purchases of flooring.
Could it be, gentle readers, that Mr. Leshem contemplates converting his Chapter 11 Reorganization into a straight Chapter 7 Liquidation, thereby allowing Mr. Leshem to jettison his floundering floor company, and then apply his energy full-time as a real estate developer? There's plenty of big money to be made by Gadi and his purported investor "partners," provided they have the financial juice to weather the current recession and move their project(s) forward. Enough money, we suspect, for Gadi to satisfy his obligations to his most pesky and formidable creditors, the State of California and the IRS, and to put a little dough in his own pocket. The rest of his creditors he can probably throw overboard via a Cover-All, Inc. Chapter 7.

Stranger things have happened.

Remember you read it here first.

As for the rest of this morning's Schwebke story, we invite our readers to slice, dice and dissect it.

And remember, that to be a Godfrey-Class Schemer, ya gotta think BIG.

Who will be the first to comment?


danny said...

Gadi is "still" moving forward?

When was he ever moving forward?

Last I checked, he and Godfrey turned a functioning neighborhood into a slum of boarded up houses that routinely catch fire.

He has other investors? Are these the ones who can't pay to tear down the abandoned houses or find the cash to pay local property taxes?

City bureaucrat John Patterson says bankruptcy will help him move forward in Ogden. (This is the same guy who said he had millions lined up for the Jeff Lowe Towne Icicle.)

Yes, bankruptcy will certainly help him move forward . . .

. . . in the Twilight Zone.


Moroni McConkie said...

Why would any "other investor" in his right mind need the likes of Gadi Leshem as a middleman?

what will it cost us said...

Agin we are told of secret investors that will keep him afloat here in Ogden. Would anyone invest in a business that owed millions even if it was just part of your portfolio?

Sounds like a ponzi scheme to me except the money isn't there.

How can the city force him to move on these boarded up properties? The city council should have a time limit involved for development when the city acted as Gadi's broker in arrangeing these property deals. Full financial disclosures should be the first order, then emminet domain the property so it can at least be cleaned up rather than a sitting eyesore for the whole city.

Curmudgeon said...

Danny and What Will have nailed it.

We were told there were un-named investors ready to pony up mega-millions to pay for a flatland gondola from downtown to WSU. They remained un-named all the way to the collapse of the project. Un-named contributors were, we were told, all lined up for the ice tower. Until they weren't. Now un-named investors are on board for three huge development projects being ramrodded by a tax-delinquent bankrupt.

And the administration still hopes ordinary people --- you know, the ones who live in a real world and have to make rent payments and mortgage payments and car payments each month themselves and who can't get by telling the landlord or the bank or Smith's or Albertson's that "un-named investors will pay what I owe you soon" --- will believe it?

As for the Standard Examiner... well, maybe it's time we started reminding the Editorial Board that they endorsed the Godfrey Administration --- experts in blather-generation, obfuscation and prevarication, and now, plainly, bumbling incompetents at significant elements of public administration --- for re-election.

Time for a mea culpa editorial apology, guys, and one accompanied by a Grondahl cartoon in which sackcloth and ashes play a significant role.

ozboy said...

For an excellent rendition of the Gadi, Godfrey and Godfreyite movement theme song go to:

Anonymous said...

This creep has dumped his flooring company without paying the workers!!! My brother included! As it is, my brother cannot pay the mortgage on his modest house, which he built himself, nor his child support. He barely has money for food and the electric company is threatening to shut off his heat in sub-zero weather. This rip-off has obviously been fraudulantly running that company at the expense of hard working Americans. May he go to jail forever over this one. Look what they did in 2006:

1hardworkingfather said...

That Peice of crap owes me $4000! I dont know how he got away with ditching all of his employees like that. Were did the money go? Did it just dissapear? River Project! Are you fu**ing kidding me? Gadi Lesham can try and make as much money as he wants to, but he cant take his money with him to Hell when he dies

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