THE UNFOLDING TUBIN STORY: a story in transition
A very recent Las Vegas event has caused me and others to reconsider the meaning behind the sudden appearance of Tirzo’s Bistro so called white knight, Audra Tubin. Perhaps you will agree when you finish reading this editorial.
I must admit that the recent presence of Audra Tubin on the Sun City Anthem scene has always been a puzzle to me. Why Audra Tubin and why now? There must be a better explanation than the ones we have heard so far. With no real restaurant management experience, other than as a waitress in a hometown diner, Audra just happened to step forward in a timely manner and rescued Tirzo’s Bistro from financial ruin, becoming CEO and majority stockholder in TNF Holdings, the operating company of Tirzo’s Bistro, now renamed Anthem View. Well, bless her heart.
However, the answer to why Audra Tubin and why now remains elusive. But, as they say, one should not look a gift horse in the mouth, especially when our white knight is so charming and has the funds to support her plans for the restaurant. Perhaps the restaurant fairy was looking out favorably for Sun City’s best interests. Then again, perhaps that is just wishful thinking.
Although Audra’s sudden appearance was warmly greeted by all, her new role as our new restaurateur did not seem to make much sense. If anything, most folks like to make sense about what’s going on. The sudden appearance of a white knight without related entrepreneurial experience didn’t seem to fit, especially in a marginal industry with known difficulties under the best of circumstances. Add to that the need to rescue an already failed restaurant in a troubled economy seemed just too good to be true. That rescue operation not only needed a substantial influx of immediate cash, but also a substantial investment in renovating the restaurant to accommodate future gaming operations, something we were led to believe was of initial interest to the new owner.
Now, when you think about it, who in the world has a couple of hundred thousand dollars sitting around to invest in a venture of uncertain value? Either Sun City Anthem has been blessed by the good fairy, as we have been led to believe by the board and others, or something else has happened to explain our sudden good fortune. While I’d like to believe in the good fairy scenario, that scenario has never had much traction with me. So, if it was not the good fairy explanation, is there some other explanation that might account for our sudden good fortune? Perhaps there is.
In what follows, I will present you with two possible scenarios. The first one is highly speculative but nevertheless is being bandied about since the events of this past weekend. The second scenario is more powerful since it is not speculative at all, but based on fact. I suggest that for the first time since our white knight has appeared on our shores, so to speak, there exists a reasonable explanation to account for Audra Tubin’s presence here. At least it makes sense to me.
Scenario One: a very speculative scenario
Let’s say you have a pressing need to account for the accumulation of recent wealth, money seemingly growing from the leaves on your trees. This recent wealth was not from your typical run of the mill investment opportunity we are all too familiar with, but instead was from money that was obtained through certain, less understood real estate transactions. Some common examples of frequently profitable but risky real estate investment opportunities are the purchase and sale of distressed or foreclosed properties and the purchase of trust deeds. If in the process of such activity one had engaged in some unacceptable real estate transactions and wanted to account for their holdings in a recognized venture, consideration might be given to finding an alternate investment opportunity that is unassailable.
As we have learned recently, certain real estate investors have gone far beyond the normal or accepted mortgage practices to engage in what the federal Justice Department refers to as mortgage fraud. This type of fraud entails complex schemes involving straw buyers, double escrows and the diversion of funds from mortgage loans for personal use. While there is no need to get into the details here, they are outlined in the Las Vegas Review-Journal articles here and in a copy of the actual grand jury criminal indictment, here. A number of local persons were named as indicted in the government’s nationwide crackdown. Those identified were among a total of 72 who were recently charged in Las Vegas. Now, you are no doubt wondering what might this have to do with anything remotely connected to Sun City? Most likely, the answer is nothing.
Of peripheral interest here is one Bradley Tubin who was a named defendant in the LVRJ article. Mr. Tubin was indicted Wednesday on one count of conspiracy to commit bank fraud. As previously noted, you may read his grand jury indictment here. While of slight interest, the Tubin name nevertheless carries some interest here in Sun City since the arrival of Audra Tubin. As it turns out, Audra’s husband Keith Tubin is a relative of Bradley Tubin. While that familial association likely means absolutely nothing, it does provide a connection of sorts between the two. So why bring it up? Were it not for Audra’s and Keith’s multiple property transactions, there would be no real need to mention the existence of the common possible investment strategies between the two. However, the fact that Bradley Tubin had multiple property transactions and Audra and Keith Tubin also had multiple property transactions should mean nothing more than they all engaged in the business of investing in real estate. The key to any possible wrongdoing lies with the nature of the transactions being conducted by the parties involved.
I wish to make it perfectly clear that there is no evidence to suggest that Keith and Audra Tubin engaged in any wrongdoing. However, in the case of Bradley Tubin, the FBI’s investigation disclosed such evidence of wrongdoing. There is no reason to believe that other members of the extended Tubin family living in Las Vegas are a target of the FBI's investigation into mortgage fraud. The judicial system will have to establish whether Bradley Tubin is guilty or innocent. We hope that his alleged involvement in wrongdoing is an isolated family event.
Scenario Two: Secure your funds away from the control of others.
In the process of looking into the first scenario, I happened to run across a quite reasonable explanation to account for the arrival of Audra Tubin on our scenic Las Vegas view.
Hypothetically, let’s say your business is in the dumps, or worse, you are effectively out of business and have ceased major operations due primarily to the overall economic downturn. Moreover, there is little prospect of a sustained income stream on the horizon. You have money, but creditors are pursuing you. Under these circumstances, what options do you have?
In the case of the Tubin's, one such major creditor is the Employee Painters Welfare Trust Fund, among others. The Trust represents painters who were employed by Atlas Painting & Drywall. Other trade crafts, potentially involving similar issues, were also employed by the companies that were operated by the Tubins.
The Trust Fund is currently in the process of discovery and may be seeking in excess of $100,000 due under ERISA, the federal Employee Retirement & Income Security Act. In fact, the Tubin’s have been in Federal District court on numerous occasions over this legal matter since November 2009 and most recently on 21 June. The judge entered a proposed order for an audit of Atlas Painting & Drywall on the 22nd of March 2010, just weeks prior to Audra’s arrival in Sun City as our white knight and new restaurant operator. A copy of the history of the legal proceedings in this Trust Fund matter can be viewed by Clicking here. Audra and Keith Tubin are named defendants in the federal lawsuit.
If one is looking to avoid paying the company’s substantial legal obligations, one such way would be to find some other vehicle like Tirzo’s Bistro to invest in to thwart the creditor’s efforts to recover monies that are legally owed. Whether Audra's presence here reflects that particular objective, I'll leave to your judgment.
What do you think? Perhaps you may wish to ask Audra Tubin some questions about this on Thursday at the Town Hall Chat, 24 June at 6:30 p.m., Penn Room, Independence Center.
Ron Johnson, 24 June 2010