Now this is spreading yourself thin...
Daniel Sadek owes money to county tax collectors, banks and even billionaire founder of Oakley.
Financial troubles continue to mount for Daniel Sadek, a subprime lending company founder, who by The Register once profiled Mr. Sadek as the "high roller of home loans." Quck Loan Funding, Sadek's Southern California subprime lending company, wrote over $4 billion in mortgages from 2002 to 2007. Sadek's lending and escrow license was revoked in late 2008 by the California Department of Corporations.
Daniel Sadek, a Lebanon born entrepreneur, started in the US as a gas station employee followed by working at 7Eleven and then became a very successful car salesman. There he sold everything from American cars and ended at Fletcher Jones Mercedes Bentz (the #1 Mercedes dealership in the US) in the luxury Newport, CA. Within 2002 he established his subprime lending company and with the funds made and funded a movie called Redline for $26 million.
The county records show Sadek missed the Dec. 10 deadline to pay $88,278 in property taxes for four homes in Orange County and that he owes an additional $43,709 in taxes on equipment leased for his defunct company, Quick Loan Funding, which shut its doors in August. In addition to a rash of lawsuits by Quick Loan's ex-employees and borrowers, Sadek, 39, is being sued by Wells Fargo for failing to repay a $500,000 personal line of credit.
Documents in the Wells Fargo lawsuit show Sadek's debts include $5 million owed to billionaire James Jannard, the founder of Foothill Ranch-based Oakley, the sunglasses maker. Sadek used homes in Newport Coast and Las Vegas as collateral. County records show Sadek borrowed an additional $2.5 million from Jannard using a third property as collateral - for a total of $7.5 million owed to the Oakley magnate.
Jannard, who lives on an island in Washington's Puget Sound, could not be reached for comment. Last June, he sold Oakley for $2.1 billion to Italian eyewear maker Luxottica, but remains on Oakley's staff as "chief mad scientist."
Jannard's loans to Sadek are listed as "third trust deeds," which means the Oakley founder would be third in line to collect if Sadek defaults. Records show Jannard made all $7.5 million in loans to Sadek on the same day, May 4, 2007, around the time Sadek's finances were collapsing as the subprime industry melted down and "Redline," the action movie he bankrolled for $33 million, bombed at the box office.
In April and May, Sadek allegedly used funds from his Platinum Coast Escrow company for $1 million in gambling markers at Las Vegas casinos, according to California Department of Corporations, which moved to revoke Sadek's finance license. That case is also pending.
In the Wells Fargo lawsuit filed in Orange County Superior Court in November, Harry Ashmore, a vice president and loan officer, accused Sadek of taking out multiple loans on his properties to shelter his assets from creditors. In a court declaration, Sadek scoffed at claims he sought to put assets out of reach of creditors. "Personally, I am insulted by his unsubstantiated accusations," Sadek said of Ashmore. "Mr. Jannard, the founder of Oakley, loaned me a substantial sum of money as well as Mr. Bishop."
Mark Bishop, the former president of Quick Loan Funding, has a second trust deed for $3 million on an undeveloped piece of property Sadek owns in Crystal Cove. Taxes on that piece of land, with an assessed value of $7.2 million, were paid in December.
County records show Sadek is delinquent on taxes for two homes in Newport Coast, an Irvine home and an Irvine high-rise condo. On his main home in Newport Coast, Sadek owes a total $6.29 million - $2.59 million to Wells Fargo, $1.2 million to Mortgage Electronics and $2.5 million to Jannard.