1. On June 13, 2000 - I, Jack Odom purchased from Robert Shearburn of Innovative Financial Services, Inc. at 2400 West Dunlap, Suite 127, Phoenix, AZ 85021 (602) 870-8700 as an IRA investment two viatical agreements one for $40,329.60 on M. Roy with a payoff of $45,975.83 the second for $10,143.36 on K. Roberts with a payoff of $11,563.43. see purchase agreements
2. The IRA Custodian to be Retirement Accounts Inc. of P.O. Box 173785, Denver, CO 80217-3785 (303) 294-5959.
3. The Escrow Agent to be Trust Management Services of 268 Bush Street, Suite 755, San Francisco, CA 94104, (415) 765-0405.
4. I was assured that if the contract went more than a year I would be given the opportunity to sell the contract for 5% over the purchase price.
5. After waiting 14 months and noticing that Innovative Financial Services, Inc. had stopped advertising in the Phoenix newspapaer, I told Mr. Shearburn that I wanted to envoke the sell out and take the 5%. He said “Oh, we don’t do that anymore.” But, that I could contact CJ Palmieri – President and C.E.O. of National Medical Funding and maybe he could find a buyer. I now found that Innovative Financial Services (IFS) no longer had Phoenix offices and Mr. Shearburn only had an office in Las Vegas at 6767 W. Tropicana, Suite 212, Las Vegas, NV 89103. The only way to contact Mr. Shearburn who lives at 5555 W. Melinda Lane, Glendale, AZ 85308 was by his cell phone (602) 463-5701.
6. Growing more concerned, I contacted CJ Palmieri and he expressed his opinion that the contracts were sure to expire in a very short period of time and that it was very rare for any to go over 15 months. At 15 months I instructed CJ Palmieri to sell my contracts. He said he could not until he received a letter from Mr. Shearburn.
7. Mr. Shearburn was out of town in Tennessee for two weeks. After, repeated phone calls I was told he was undergoing radiation therapy for cancer and had taken some time off to recuperate. Upon his return (date is now late September 2001) I informed him what was needed and though, he strongly felt I was wrong, said he would forward necessary paperwork.
8. Mr. Palmieri said he had a couple of prospects and would get back to me. Finally, on Oct. 26, 2001 he said he had checks and was sending them to Retirement Accounts, Inc. (RAI) who would then forward to me.
9. After two weeks – with me checking after one week everyday, they still had not arrived. Mr. Palmieri said he would re-send them. After another week still nothing at RAI. After repeated phone calls I finally got through to Mr. Palmieri and he agreed to “wire” the money to RAI. After two “wiring” tries failed to show up at RAI. I proposed Mr. Palmieri send me the money directly at my home – he said he would but, checks would have to be made out to RAI. I said fine but, send them Federal Express today and he agreed – date being Friday, November 23. 2001. Monday, Nov. 26th they did not arrive and when I called him he said was sending them Federal Express that day. Tuesday, they did not arrive and after repeated phone calls he gave me the Federal Express tracking number of 831931806211 but, when I used my PC to track shipments on Federal Express’s online services it showed no scan found for that number. I checked the next day with same result (see computer printout) and to this day, no checks have arrived.
10. Trust Management Services will not return my phone calls to check on status of my account – have left over 5 messages in a 3 week span.
11. RAI refuses to get involved and to quote their supervisor Estella, “it’s not our problem if the holder goes belly up.”
12. RAI seems to have other accounts with Mr. Palmieri that he is having trouble with and are threatening to sue for no payments but, refuse to cooperate even when I asked them to just let the others know my name and phone number so we could share information, only if they wanted to.
13. I hired an attorney, Arnold Neves, 1565 Hotel Circle South, Second Floor, San Diego, CA 92108-3418, (619) 299-3311, and on Dec. 1, 2001, he obtained two checks totaling $57,539.26 from Mr. C. Palmieri, at his office 3517 Camino del Rio South, Suite 201 (also has a suite 400), San Diego, CA 92108, (619) 291-5761,but checks were post-dated to Dec. 7, 2001, and I was to call Mr. Palmieri before sending them to RAI. I called him on Dec. 7th and he asked for more time. I told him I was going to express mail them on Wednesday, Dec. 12th, which I did. During, the Dec. 7th conversation; Mr. Palmieri mentioned that the main problem was that he was having difficulty getting death certificates as one client had died in late Sept. and the other in late Oct. This means that of course, he had tried to buy my contracts at a discount when they had already matured.
14. I called RAI two days later and their represenative, Kendal Clarke, said that the checks were no good according to their bank.
15. Mr. Palmieri when called said he would transfer funds Friday, Dec. 14th. Kendal Clarke said she would check on Monday, Dec. 17th , 2001 and when I contacted her she said that only the smaller of the checks would clear, not the big one for $45, 975.83. This turned out to be false as Dec. 19th showed activity in the account and by Dec. 20th when checks arrived BOTH bounced.
16.The San Diego BBB shows Mr. Palmieri listed under C. Palmieri Enterprises, Inc. with 5 complaints and 4 resolved and a number pending. They have since suspended his membership. Mr. Palmieri also does business as Sierra Funding Group; Sierra Mortgage and Sierra Properties (Also, know as Rocky Mountain Properties). He also is head of an organization called San Diego Creative Investors Association (www.sdcia.com).
17.The San Diego Union Tribune (Don Bauder in the Business section) on Saturday, Dec. 22, 2001, ran an article on Mr. Palmieri and some of his problems. Mr. Palmieri then, sent me by express mail a certified check for $11, 563.43, which I forwarded to RAI with intructions to cash and send to my bank. He is still unable to say when I will get my remaining $45,975.83.
18. This investment represents my entire life savings – I’m a retired Federal Worker on a small pension.