It has been reported in the news that Silar is a part of the consortium assembled by Steven T. Mnuchin, Chairman of Dune Capital Management LP, to purchase the IndyMac Bank.

Silar is a co-defendant in a law suit in Federal Court in Las Vegas, Nevada (Case number 2:07-CV-00892-RCJ-GWF). Silar is the servicing agent for a portfolio of nearly one billion dollars of loans secured by First Trust Deeds. These loans are all in default, are severely distressed and are in arrears for past due taxes. The plaintiffs in this suit are nearly 3000, mostly elderly, lenders who are in danger of loosing their life savings.

Silar is alleged to have violated it fiduciary duties and to be attempting to enrich itself at the expense of the lenders by claiming first priority in the collection of its own fees before payment of interest and repayment of principal to the lenders despite clear wording in the promissory notes and Loan servicing agreements that give priority to the lenders. The law suit also claims RICO statutes have been violated by Silar, and other co-defendants.

Silar has also recently partnered with Michael A. Barron to form Liberty Capital Asset Management. The lenders are concerned that Silar and Liberty will be used to purchase tax liens on the properties securing the loans in the portfolio and wipe out the lenders equity.
Liberty, an asset management company which acquires pools of non-performing mortgage loans and then re-performs those loans by restructuring the financial parameters, announced that it has executed an agreement with an affiliate of Silar Advisors to invest up to $50 million to acquire defaulted sub-prime mortgage pools at a discount. The agreement is viewed by both parties as a strategic venture through which Silar is providing the capital and valuation expertise and Liberty is providing the operational expertise that Liberty anticipates will allow it to liquidate the pools purchased at a profit. Liberty Chairman & CEO Michael A. Barron said, “The addition of Silar as a strategic partner to Liberty is a significant step forward for us in this space. We have spent months working out the details of this venture and we are pleased with the integration of our respective organizations.” Silar Advisors CEO Rob Leeds states, “We are happy to be a business partner with Liberty in this unique investment opportunity. We are uniquely suited to match up with Liberty’s expertise in the sub-prime loan repair market.”

Silar’s new partner in Las Vegas, Barron, has a troubled history.

Barron originally had a company called FINET, but he declared it bankrupt in 2003.

Barron then created SHEARSON and became president. In an 8K filing with the SEC on 2008-04-08, Shearson Financial Network, Inc. (SHSNE) announced its intention to reorganize and seek relief under Chapter 11 bankruptcy protection. The firm had previously announced the appointment of Harry R. Kraatz as Chief Restructuring Officer, and discontinued all operations on 2008-03-27. They have delayed filing their 4th quarter results.

In addition to its own net branch operation, the Henderson, NV based company is also the parent of Shearson Home Loans (SHL), a retail lender headquartered in Irvine, CA and having an office in Plantation, FL according to CityTownInfo.

Licensing for the SHL office at SHSNE’s headquarters in Henderson, NV was revoked by final order on 2007-10-15 as reported in a Disciplinary Action Report by the State of Nevada Dept. of Business and Industry’s Mortgage Lending Division. An April 2007 archival copy of SHSNE’s web site stated that “SHL currently employs over 500 people which are residential mortgage professionals and is licensed in over 40 states.”

The corporate web site and the web site for retail subsidiary Shearson Home Loans are no longer working.

Shearson Home Loans is the subject of several IRS tax liens filed between 2007-01-04 and 2008-03-06 in Clark County, NV as well as a pending civil suit filed 2007-10-11 by Paychex Ach Inc., and other filings.

Barron has now engineered a reverse merger with LIBERTY CAPITAL ASSET MANAGEMENT, become chairman and CEO, and partnered with Silar. Liberty has only two employees, (Barron and Sheary), just two guys and a laptop! (This is the reality despite what the news release says)

I am one of these lenders. I am 76 years old and will probably lose most of my savings. I have been personally sued as a result of my efforts to help organize the lenders to defend themselves against Silar and its associates. I am therefore reluctant to disclose my name.