Complaint Review: Emerald Falls Hotel & Resort LLLP Gary M. Spackman

Gary M. Spackman, founder and self-appointed “Chairman” of various entities including, but not limited to, Emerald Falls Hotel & Resort LLLP, which in turn was reported to own Regional Economic Development Group, Inc, which in turn was reported to own Regional Economic Development Investment Group, which in turn was reported to own Arkansas Regional Economic Development Center, and also Conventus Capital, were all entities involved in a scheme designed by Spackman in order to try to defraud Sterling Commercial Capital, LLC, a bona fide commercial real estate lender. Spackman presented the transaction in August, 2016 as a refinance – that is, placing new $4 million in debt on a real estate property that he, or the entity(s) he owned and controlled, actually “owned” the real estate. After months of processing, underwriting and due diligence, we uncovered the multilevel shell game orchestrated by Spackman, which was to hide the fact that he did not own or even control the property, and was fraudulently seeking 100% financing. For reasons not known to this reporter, rather than seek conventional financing to acquire the real estate, Spackman chose to try to dupe Sterling Commercial Capital into lending 100% of the cost of the purchase, which Sterling would never have done.

On January 12, 2017, Gary Sparkman replied via email

Brian you are correct presently I do not own the property The Entity that owns the property is LJ CA. I have no interest in LJ CA other than the fact I guaranteed a loan on behalf of those folks that being said I do not mean to complicate the issue so there is no need for you to incur for their expenses by having legal give you an opinion because your opinion is correct thanks for the reply.