hillside valley worthless in 2010
DESCRIPTION
This document shows the value of Hillside Valley Apartments in Allentown in 2010 and the amount invested in it as of August 2011. The bankruptcy judge dismissed the bankruptcy case, after he found out that Connolly had allegedly put over $8m more towards Hillside than the bankruptcy filing showed. Connolly hadn't shown the $8m of investor escrow, because he in fact never put it towards Hillside. He took the 5th Amendment when he was asked what he did with it. Note that including investor escrow, Connolly put $26m into a project worth maybe $13m in 2011. In 2010, Hillside was under water, with a loan balance of $15m and a high estimate value of $13m by Connolly's own appraiser. Hillside was very likely under water in July 2009 BEFORE Connolly put his investors into it, in an attempt to conceal having misappropriated their escrow.TRANSCRIPT
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EXHIBIT A
1. Total investment in Hillside Valley as of August 2011, when it was 60 to 70% complete
Investor Amount invested
Investors Savings loan balance1 $15,500,000
David Connolly1 $780,000
Richard Colasuonno (Barese Construction) 1 $184,000
Land cost2 $1,100,000
Hillside Investment Trust3 $8,500,000
Total $26,064,000 1 See 11bk21689 Eastern District PA Doc 13 2 Not included in Investors Savings loan alleged to have been paid off in
2007. 3 Estimate based on $9.1 million less distributions made to investors in 2009.
2. Appraised as is value of Hillside Valley in June 2010 to Nov 2010 is less than its loan value
Appraiser Date As is Value
Dietrick (commissioned by Davis in Davis v. Connolly)1
June 2010 $11,840,000
Ingram (commissioned by Hillside Valley)2
June 2010 $13,000,000
Dietrick (commisioned by Investors Savings)3
Nov 2010 $9,560,000 - $10,157,500
Loan Balance
Aug 2010 $15,080,331 1 See 9cv4629-SRC-MAS Doc 46-17 2 See 9cv4629-SRC-MAS Doc 46-18 3 See 11bk21689 Eastern District PA Doc 27-12