Private investigator's report re suspect's Clallam County property and court files

[REDACTED] Los Angeles, California [REDACTED]

To: [REDACTED] Los Angeles, California [REDACTED]

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Re: [REDACTED] Wife: [REDACTED] Doing business as [REDACTED]

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It is noted that the subject had a checking account at the Olympic State Bank at Port Angeles, Washington. At the time of the [REDACTED] which was about [REDACTED] [REDACTED] he gave a residence address as [REDACTED] I have also noted this residence address for his father, [REDACTED]

He also indicated that at the time of the [REDACTED] [REDACTED] that he was employed by Halverson-Lents Trans Canyon Pipeline Company.

He claimed real estate, an address of [REDACTED] in Port Angeles, Washington, described as [REDACTED] [REDACTED] Townsite of Port Angeles, situated in Clallam County, Washington. He said that his equity was about [REDACTED] in that property.

The [REDACTED] for the trustee in [REDACTED] was [REDACTED] Port Townsend, Washington. The [REDACTED] in the case was [REDACTED]

The [REDACTED] for the trustee did a considerable amount of investigation and was quite suspicious of the business dealings of [REDACTED] and his father, [REDACTED] I

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DB Cooper-24785

quote from the trustee's report to the [redacted] "The [redacted] and his father appeared to be [redacted] in their business dealings and despite the denials of any liability or responsibility on the [redacted] part, the [redacted] father was ultimately persuaded by actions and statements of your petitioner to pay to the Estate [redacted]"

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The trustee worked a compromise with an [redacted] whereby [redacted] would pay the [redacted] estate [redacted] if the trustee would withdraw from a foreclosure action that [redacted] had against property that the [redacted] was purchasing. The original purchase price of the real property was [redacted] and there was considerable discussion as to the legitamacy of the purchase of this property in regards to the [redacted]

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I also quote from [redacted] again, "The bankground to the controversy begins in 1966 when the [redacted] borrowed [redacted] interest from one [redacted] and executed in addition to a promissary note a mortgage as to certain real property in Clallam County, Washington. [redacted] later started a mortgage action to recover the amount loaned. Your trustee intervened in that action and obtained an order vacating a prior order of default as against the [redacted] The trustee set up the affirmative defense of usury and the additional defense that the description of land upon the mortgage document was defective. The matter was first set for trial on December of 1970 and then upon request of Plaintiff's counsel was continued over to February of 1971.

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He earlier, upon 2.180 examination stated that once the proposed written loan papers had been identified as user's and the user had been purged or voided by a new promissary note, he, the [redacted] agreed orally that the [redacted] would pay [redacted] in addition to the [redacted] loaned and to the [redacted] interest charge. [redacted] denies that there had ever been such an oral agreement. The [redacted] says she has no recollection at all. The [redacted] now says that he has only vague memories of this conversation at the time the promissary note was signed. In addition, the [redacted] voracity is less than crystal."

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There was an [redacted] of land owned by the [redacted] during the [redacted] proceedings. I believe this particular parcel of land is the land on which the [redacted] was situated. The legal description is as follows:

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DB Cooper-24786

[REDACTED]

[REDACTED]

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in Clallam County, Washington. The appraised value of the property was [REDACTED]

[REDACTED] address is given as [REDACTED] Port Angeles, Washington. Phone is [REDACTED] The [REDACTED] was made August 6, 1970. The property is located on [REDACTED] in Clallam County and consisted of two parcels of unimproved land, approximately ten acres and fifteen acres each. Apparently this was not the property on which the [REDACTED] was situated.

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It is also noted that the property was situated approximately 10-20 miles west of Port Angeles, Washington.

In a motion filed by [REDACTED] on [REDACTED] Request for the Appraisal, he gives the following facts.

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"Since the time of intervention your Petitioner has visited the afore described security and was not impressed with the same. In addition, a lot of real property in Kitsap County, Washington, which was provided to the mortgagee as addition security apparently has been lost to the mortgagee. The situate is rather very [REDACTED] [REDACTED] The [REDACTED] and his father, [REDACTED] in 1966 persuaded one [REDACTED] to loan to the [REDACTED] The [REDACTED] then gave to [REDACTED] different types of security for repayment for the loan. One security was a mortgage in the acreage west of Port Angeles which the [REDACTED] [REDACTED] Another security was a [REDACTED] which presently pays [REDACTED] per month to the mortgagee, but is not enough to cover the interest owing on the mortgage debt. A third possible security was one certain lot in Kitsap County, Washington. That lot has been sold by the [REDACTED] shortly before [REDACTED] but the transaction has appeared to be normal until approximately a year later. It was learned by the Petitioner that the grantee was the [REDACTED] of the [REDACTED] 2180 proceedings to examine the [REDACTED] had been without success because the Kitsap County Sheriff cannot locate him. In the meantime, the Kitsap

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DB Cooper-24787

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County lot was sold at tax sale [REDACTED] at which time the [REDACTED] the property, completely unknown to the mortgagee. The same mortgagee is presently the Plaintiff in the mortgage foreclosure action in Clallam County Washington, in which the trustee has intervened. In view of the foregoing it would be in the best interest of this estate and its unsecure creditors to fully review the status of the trustee's involvement in the Clallam County litigation. To do so, it is necessary to have a reliable appraisal as to the value of the Clallam County real property security."

It should be pointed out that [REDACTED] is the [REDACTED] for the trustee and that the trustee is a [REDACTED]

On November 24, 1969, there was an order authorizing and approving a compromise. The [REDACTED] for the trustee allowed the following to take place: "Ordered that the Petition be granted and thereby trustee is hereby granted to accept [REDACTED] and a Quit Claim Deed from [REDACTED] with the trustee as grantee as to the following described real property:

[REDACTED]

and in exchange for the monetary payment and quick claim deed, the trustee is authorized to permanently waive any claim that trustee may have against [REDACTED] on the basis of fraudulent conveyance or on the basis of any other legal theory as to the following described [REDACTED] property: [REDACTED]

[REDACTED - large blank/redacted block]

It is noted that the [REDACTED] had been listed for sale by the father at an original asking price of [REDACTED] and had been reduced to [REDACTED] and had remained unsold for a period

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DB Cooper-24788

of an excess of one year. There have been encumbrances against the [REDACTED] exceeding the sum of [REDACTED]

On October 22, 1969, there was a petition relieved to compromise controversy. This concerned the [REDACTED] in question and I quote from the body of this motion: "Nature of controversy. [REDACTED] the [REDACTED] [REDACTED] as vendees executed a real estate contract with one [REDACTED] as vendor, for the purchase at a price of [REDACTED] on or before January 2, 1971, and a [REDACTED] interest per annum due January 2, of each year. The real property which is a subject of this dispute is more particularly described as follows." The legal description is the one that was described just a few paragraphs above and is the [REDACTED] in question.

Shortly thereafter, the [REDACTED] commenced to improve the subject real property by building a [REDACTED] thereon with an adjoining [REDACTED] In doing so, he borrowed money and purchased on credit and incurred a substantial indebtedness. On [REDACTED] a point in time after the subject real property was substantially improved, the [REDACTED] assigned their interest under their real estate contract to the [REDACTED]

[REDACTED] now claim title to the subject real property on the basis of the [REDACTED] assignment. More than a year later, namely [REDACTED] the [REDACTED] [REDACTED] The [REDACTED] for the trustee then goes on into lengthy legal explanations why the trustee should become involved in this particular controversy, because of various legal theories of [REDACTED] of property in regards to the [REDACTED] hearing.

The [REDACTED] was served with a subpoena duces tecum on March 7, 1969 at what appears to be Grand Canyon, Arizona.

The [REDACTED] testified on November 6, 1968, in a [REDACTED] hearing. He indicated that he was presently residing in a town called Grand Canyon at the [REDACTED] [REDACTED] He indicated that he was a [REDACTED] for a construction company, which was putting a pipeline along the side of the canyon wall from one side of the canyon to the other. He indicated that it was an 8-inch aluminum water pipeline, and it was all done with helicoptors. He said that the pipeline started from Arrow Springs and goes nine miles down Bright Angel Canyon across

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DB Cooper-24789

to the Colorado River and to a reservoir. He said that the project started in the Grand Canyon the prior April, and that after the project that he intended to go to a job in [REDACTED] He said that he was married and living with his wife and that he had [REDACTED] children and that the oldest was [REDACTED] years old. He said that he was purchasing a house in Port Angeles, Washington, at [REDACTED] prior to the moving to the Grand Canyon, and he did not know whether foreclosure action had been started on that property while he was gone. He said that the prior owner was an [REDACTED] and that he had about [REDACTED] equity in the home. He also said that he owned a [REDACTED]

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He explained that he had a lease purchase on the [REDACTED] He indicated that while he was [REDACTED] his father stepped into his shoes as the owner of this [REDACTED]

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He also testified that he had been employed by Mackey-Lewis of Port Angeles for three and one-half years and that he was fired from that job. He indicated that he was terminated about May 5, 1967. He said that at the time he was working in that firm he had a front-end loader, which was a heavy piece of equipment.

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Apparently, at one time Cascade Industrial Loan had a mortgage on the [REDACTED] He said that the [REDACTED] was about 25 to 26 acres.

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He also testified that he went to Alaska in attempt to make enough money to pay his attorneys. He doesn't say when he was in Alaska.

There was a [REDACTED] that was filed on [REDACTED]

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As state of affairs, he said that he had a checking account at the National Bank of Commerce in Bremerton Branch and that he had a checking account at the Olympic State Bank in Port Angeles, Washington.

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He has noted that there was claim in the amount of [REDACTED] from the Clallam Adjustment Corporation. The claim was filed by a [REDACTED] and their offices are located at 111 North Oak Street in Port Angeles, Washington.

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There is a claim in the amount of [REDACTED] from Carroll Realty Company in Port Angeles, Washington. The money was loaned to enable the [REDACTED] to purchase and occupy a

a single family residence in Port Angeles. Apparently, Carroll Realty, Inc. is located at 111 West Railroad, Port Angeles, Washington. The claim was filed by [REDACTED] There was a claim filed by the Kitsap County Bank, East Bremerton Branch for [REDACTED] the money loaned at installment note secured by [REDACTED]

There was a Mobile Oil Corporation collection account in the amount of [REDACTED] on account [REDACTED] The claim was from an [REDACTED] Los Angeles, California.

There are a number of exhibits and some of these are checks from [REDACTED] producers of forest products, [REDACTED] Silverdale, Washington and signed by [REDACTED] In the left hand corner it shows [REDACTED] The checks were drawn at the East Bremerton Branch of the Kitsap County Bank, Bremerton, Washington with check [REDACTED]

There was a most interesting receipt in the exhibits which is dated July 15, 1966 from an [REDACTED] received from

Sequim P.D. (it apparently is Sequim Police Department). The receipt was for [REDACTED] and the address apparently for the father, or perhaps [REDACTED] (I am not certain) is [REDACTED] Port Angeles.

There appears to be a receipt for [REDACTED] from a [REDACTED] [REDACTED] Sequim, Washington, dated July 23, 1966. This is probably a receipt for services on the criminal action.

There is a very interesting ledger, called the [REDACTED] [REDACTED] and there is this interesting notation in 1966, dated August 8, 1966. To pick up various [REDACTED] [REDACTED] I hope you appreciate the humor in that.

I also find an affidavit in real estate excise tax receipt [REDACTED] [REDACTED] Bremerton, Washington. It indicates that [REDACTED] Port Angeles, Washington, are selling to [REDACTED] certain property. The date of the instrument and the date of the sale is [REDACTED] It is interesting to know that under the caption for gross sales price, they have as following: [REDACTED] The [REDACTED] for the trustee made much of this point later in the court action. It appears from

the legal description that this was the property which was the [REDACTED] which was sold to his father.

In the middle of 1966, [REDACTED] was giving the address of [REDACTED] Silverdale, Washington.

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COMMENTS

This concludes the review of this particular court file.

A further report will follow shortly, reviewing the rest of the investigation conducted in the Seattle and Bremerton areas.

Respectfully submitted,

[REDACTED]

[REDACTED]

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DB Cooper-24792

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