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How to Sell Your House Without Using a Realtor
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How To Sell Your House Without Using A Realtor

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If you can read this article you can sell your house without using a realtor. I’m doing it now and its taken 2-4 hours a week to keep the sale on track. Selling without using a realtor will save you 4-7% on the sale price. The median priced home in the US in 2008 is $212,400. A 4-7% commission on the sale is $8500- $15,000! That’s a lot of money. How long would it take you to save $15K after you pay your mortgage, food, clothing, children’s school, insurance, car payments, income taxes, state taxes and pizza on Fridays? This is the story of what I did to sell my own house; how it happened, what worked, and what didn’t. I’ll tell you what I would do differently the next time, problems that had to be solved and tips I would offer other sellers who want to sell their house without using a realtor.

Worse Time to Sell, Ever!

There has never been a worse time to sell a house than now (10/8/2008). Truth be told: I had the ability to avoid selling at the wrong time, but, got caught for reasons beyond the scope of this article. I’m not complaining: At least I was able to sell, to find the buyer myself and for what I know to be the highest price possible. The excess inventory of houses on the market is huge, prices are down 30% and the average house is on the market for 11.2 months before being sold or taken off the market. What made the process harder for me was the constantly falling prices throughout the sale. If I can sell a house in this market, without a realtor, from three thousand miles away without even showing up for the closing then every seller has good reason to be optimistic.

Help-U-Sell Wouldn’t Return My Calls

The first thing I did was look for a company I saw on 60 minutes called Redfin. I liked their philosophy on breaking out realtor services into parts and giving the seller the option of choosing which services they wanted. Since I was selling from a distance I thought paying for the help would be a wise tradeoff. There were no Redfin offices in Boca Raton, Florida. So, I looked for a local Help-U-Sell since they break out their services, too. My wife used them to sell her house in California and had a good experience. She believes it saved her a lot by using them instead of a old-school realtor. They added her to the MLS, advised her on price, did several open houses which eventually produced a buyer. My first call to Help-U-Sell was not returned. My second phone call to Help-U-Sell was not returned. My friend David called a third time and they didn’t return his call, either. This is what lit my fuse and got me thinking about selling it myself. If they won’t return my calls maybe they won’t return calls from potential buyers, either? And after my wifes experience I didn’t want to have to pay the whole 6% commission to an old-school realtor.

Brief Summary of My Sale

I live in California and will be closing on the sale of my house in Florida, this week. I hired a friend to prepare the house for the sale, set the price, found the buyer, arranged for a Title Company to handle the escrow and the paperwork and will not be present at the closing. The title company is sending all the documents to me in California to perform what they call a ‘mailaway’ closing. I’m not bragging. It’s a description of what happened. My friend David spent two weeks at the property preparing the house, painting, putting up the sign, hanging a lockbox on the door, gathering info on the local market and fixing up the kitchen and bathroom. Excluding David’s work, its taken 2-4 hours per week to find the buyer and keep the sale on track.

The Steps

These are the steps you’ll be going through to sell your house:

  1. Preparing the House
  2. Setting the Price
  3. Finding a Buyer
  4. Negotiating the Details
  5. Doing the Paperwork
  6. Solving Problems
  7. Closing

If you’re like me you may think you need a realtor to help with every step. What I’m going to explain in this article is that realtors help you mostly with Step 3.: Finding a Buyer. I was worried about all the paperwork. All those contracts, disclosures and escrow forms. Don’t realtors handle all that? No, they don’t. The Title company does. Your realtor just calls one and turns it over to them. You can call one, just as easily. They make the paperwork a breeze. You have to manage all the other steps, anyway, whether you use a realtor or not. With a little extra effort you can find your own buyer (Step 3), too. If you do, you’ll be paid handsomely by saving yourself a large commission. To put it another way: Finding a buyer is the most expensive part of the process to outsource.

Warning: This Article Could Be a Book

Some books have one thing to say and take a book to say it. This article has a books worth of things to say and will take an article to say it. Update: I did have to make this article into a book. It grew to ~20,000 words and is now a mini-book. I’ll post a few more thousands words, here, and you can download the book, for free … Click here to subscribe A web search reveals that people have written books about this subject. I haven’t read them, so, can’t vouch for them. Searching Google turns up many articles about this topic. I found these articles to be encouraging, but, not conclusive. They don’t seem to be written by actual sellers who went through the whole process of selling their own house. The next time you search for articles you’ll find this one. Problem solved. The goals for this article are:

  1. To document and guide you through every aspect of one sale: My own.
  2. To be complete enough that you could make a decision to use, or not use a realtor for your own sale.

I’ll be as brief as the subject allows. When you’re selling your own house it won’t seem too long. Hopefully, it will be saving you time, effort and some money, too.

Terminology

A broker holds the licence for a Real Estate office. They are the only legal party eligible to receive the entire commission. It is harder to become a broker than an agent in that there are more tests involved and more legal requirements to keep the license active. An agent works for a broker and receives a percentage of the commission for conducting the sale. A realtor could be either an agent or a broker. This article will use the term Realtor, in most cases. It does’nt matter whether you’re working with an agent or a broker. They’re both realtors and, therefore, working for a commission.

Real Estate Commissions – The Last Dinosaur

The internet has destroyed or brought into the new millennium every commission known to man. Every commission, that is, except for what realtors take for connecting sellers with buyers.

Realtors Make More than Architects?

My brother was an architect. Architects earn one of the hardest BS degrees taking five years of college, not four. When they graduate they spend 5 years preparing for the boards. During that dues paying period they make half as much as a good waitress. When they finally get their board certification they still have to work another five years for another architect because its so difficult to establish a practice. Yet another another 5-year dues-paying phase. Architects design, draw, code, change, every aspect of material and space and attend to every imaginable detail to bring a building into existence. Their exposure to liability is insane to the point that many can’t afford the insurance. If an architect does manage to have his own practice the costs to run the practice dwarf those of a brokers office. What’s the architects commission on a building after this lifetime of preparation, exposure to liability and detailed work on the building, itself? Six percent. That’s right, the same commission a broker gets. How would you compare what an architect does for a building to what a realtor does for it? How would you compare the cost of education and training of an architect to that of a broker? Case closed. I’m not criticizing Realtors, agents or brokers. I’m criticizing the size of their commission. It’s disproportionately large for what they do compared to an architects work on the same building. How much work does it take you to earn the money your about to turn over to the realtor for finding a buyer?

The Biggest Deal of Your Life

Selling your house is the largest deal most people will ever do. Optimizing the 6-7% commission on that transaction should be a priority. I say ‘optimize’ instead of save because, if you do pay a commission, you should get the best service you can and pay only for the services you get. Many people would say they want to use a realtor because it’s the biggest deal of their life. After all, if you pay 7% to an agent that’s still leaves 93%. If you feel this way I still think you should try selling yourself for the first 30-days.

What About the Other Transaction Costs?

Can you save on them, too? Yes. But, why talk about them before you’ve gone after your biggest cost? The other transaction costs pale in comparison.

DIY, Not!

Just because I want to save the 6% commission to a Realtor doesn’t mean I want to conduct the whole sale, myself. No, thank you! These two things are not the same thing. Enlisting the talents of other people is a smart thing to do. And its a brilliant thing to do when selling your own house. I received (And paid for) an extensive amount of help on each step of the process. Several things motivated me to attempt the sale without using a Realtor:

  • My opportunity cost is currently low.
  • I’ve read a lot on the subject and am familiar with the process.
  • I’m an experienced buyer, but not seller.
  • I wanted to see if saving the 6% commission was possible.
  • I have another house for sale and could save 6% on that one, too.
  • If successful I could write this article and help others save a chunk of money in bad economic times.

And, like I said above, Help-U-Sell wouldn’t return my calls. Too bad for them.

Real Estate Expert, Not!

The subject of Real Estate is vast. One could devote a lifetime to all the various aspects to become an expert. Even then, a true expert would have to specialize because there are so many fields of knowledge involved. So, what?! I didn’t have to be an expert to sell my house, expertly. And, neither do you. A mere play on words? Not in my case. I’m selling a house, not running a business or a career. I suspect my perspective is more useful to other sellers because I’m not an expert. You don’t need to be an expert to have each step of your sale be expertly done.

Don’t Become an Agent

Becoming an agent to sell your own house is like “Burning down a house to make toast”. Total overkill. Not needed. In fact, being an agent is probably a liability, see below. Don’t become an agent just to sell your house.

Liability, Not an Asset

In 2002 I studied to become a real estate broker. I enjoy the subject, read all the prep material and thought about taking the tests. But, working as a broker or agent did not fit my personality so there was little point in getting the license. One of the things I learned is there’s a downside to being an broker: They’re held to a higher legal standard of performance. In practice, this means you’re exposed to more legal liabilities because its easier to accuse you of negligence if you have a license proving competence. So, why not just be competent without a license? I’m more interested in having knowledge and understanding than in having a license saying I do. Dishonesty at any stage of selling a house is more likely to blow the deal than anything. But, the law can often be an ass. Let it be an ass to someone else. Don’t get me wrong: I’m not claiming to know as much as a broker or an agent. They have their focus and I have mine. Theirs is to run a business and earn commissions. Mine is to sell my house for the optimal price and keep as much of the proceeds of the sale as possible. Those two areas of focus are not the same.

John T. Reed – Thumbs Up

Much more helpful than reading the material for the brokers license was reading John T. Reed’s books on the subject of Real Estate. I read all 20 of them and they’re the best survey of the field of Real Estate I’ve ever found. Each of his books describe a different aspect of Real Estate mostly for the benefit of investors, specifically. However, taken in total, the reader is given a practical overview of the subject like no other. What’s great about John’s writing is his readability when writing about a complex subject. He will tell you in two pages what would take another author an entire chapter if they had the knowledge to say it. In my opinion that makes John an expert’s expert. Although I highly recommend all of John’s Real Estate books I don’t think reading them is a prerequisite to sell your house without using a realtor. However, there is no doubt that you’ll do a better job of it if you do. You’ll have to decide that based on your goals and time available. It should go without saying that the cost of buying all of his books is nothing compared to the deal you’re trying to optimize. (Note: This article is a report from the battlefield of my sale. Don’t blame John for mistakes I made and write about in this article. At some point, we all have to stop reading and start doing. I read until I was blue in the face and still made mistakes. That’s just the way it goes when you’re in the ring and have to get the job done. Rest assured I made less mistakes, and lost less money, by learning from others experience and writings.)

How Do You Handle a Hungry Realtor?

By understanding what they do, what they charge, how they talk and what motivates them. You may even end up hiring one. If you do I hope you’ll be able to put their role in perspective and limit their service to the help you need to conduct the sale.

Realtors Want Speed, Not Price

Brokers use price when deciding what state, region, city, neighborhood or type of property to specialize in selling. After that its all about speed. Any broker in their right mind values speed over price. Brokers make more money if they sell more houses in less time. Even if they’re only selling one house it’s a better use of their time to sell it quickly. No problem, so far. Why tell you the obvious you may be wondering. Because the higher the price the slower the sale. In fact, if you know the fair market value (FMV) for your house and take 5% off that price John T. Reed refers to it as the ‘Quick Sale Price’. Its called that because you can sell it within a week if the market is efficient. Click here to subscribe

Doesn’t Higher Price Means More for Them?

Sure, their commission, based on percentage, goes up with the price. But, the amount the commission goes up as the price rises is small compared to the commission on the whole deal. Sure they’re supposed to represent your interests and a lot of that is getting the highest price possible. But advising you on the highest price you can get will almost always add time to the length of the sale. That may be ok with you, but, it is not in the realtors best interest. Even worse, setting too high a price is the most common reason for a deal not going through, at all. And setting the price, even for the ‘experts’ is not an exact science. Why take any risk at all, the realtor may conclude. I’m not making a blanket accusation of realtors, here. I’m merely pointing out there’s a natural tension between getting the highest price you can and the time it takes to sell. And you should know that the realtor cares a lot more about speed than you do about price. There’s little to no incentive for the buyer or sellers broker to hold out for a higher price. A realtor will probably tell you if what you’re asking for is too low for the area. But, its more likely a broker will need to talk a seller down in price. Some of that may be to correctly adjust a sellers unrealistic expectations, fine. However, be on the lookout for the suggestion being offered merely to increase the speed of the sale. If it is, make sure that’s what you want to accomplish. Unfortunately, its always to the brokers advantage to lower the price . . . to increase the speed.

6-7% and The Seller Pays It All

Realtors say they only charge 3%. But, there are two realtors: The buyers and the sellers. They each charge 3%. That makes realtor fees 6%. Most of the time the seller pays it all. The marketplace has decided the seller has more to gain from the sale than the buyer. I don’t like that, but, it makes sense when you realize the seller has one house to sell and the buyer has many houses to choose from. Why would a buyer pay broker fees if they can buy the same or similar house and negotiate those fees away? This has become standard behavior so sellers know they have to pay all the broker fees and most of the other closing costs, as well. The exceptions to this are when the buyer doesn’t have competing choices for the house or has decided they must have a particular house. Any situation that would inspire these feelings in the buyer have the potential for the seller to get the buyer to share in the broker fees.

Do I Have to Pay the Buyers Broker?

Not, at all. But, don’t blow a good deal over it. Even if you don’t use a realtor you may get a call from a realtor who has ‘found’ you a buyer. As with all people interested in your house I recommend you show it to them.

Don’t Let Them Screen You

Don’t let the buyers realtor screen your position on paying their commission before they show their buyer the house. If they don’t like what you say they may not show their buyer your house even if your house is perfect for their buyer. This would be a violation of their ethical code as a realtor. But, I don’t recommend you risk losing a buyer for your house by relying on their broker adhering to their own ethical code. On the initial phone call just tell them the truth: You’re willing to consider any offer, agreeable to all parties, that will make the sale go through.

Your Options

If their buyer is interested in making an offer you have the following options for paying the commission to the buyers broker:

  • Recommend the buyer pay since the buyer benefited from their service.
  • Agree to pay them a commission, but, you only pay X% to buying brokers.
  • Tell them you’ll pay if the buyer increases the sales price (Same as buyer pays).
  • Don’t pay them and leave the choice to the buyer (Probably resulting in splitting it).

It’s possible the buyer signed a contract with their broker. That’s got nothing to do with you. Don’t interfere with a contract the buyer may have signed with his broker. In other words, you have options, but not obligations, if a realtor shows up and wants money from you for a buyer.

Offers to Help With the Sale

When they find out you’re not using a realtor they may offer to help you conduct the sale in exchange for a commission. You should already be prepared to handle the sale, yourself. Tell them no thank you. They have enough to do helping their buyer find a house, a loan and guiding them through the sale. You’ve already got a Title company handling everything and don’t require assistance.

Be Prepared For Intimidation Tactics

You may get all sorts of intimidating advice from Realtors, at this point. All of it is aimed at trying to get you to use a realtor instead of finding a buyer yourself:

  • They may threaten to ‘take away’ their buyer (Which violates their professional obligation to act for the benefit of their buyer).
  • They may imply you’re a fool and know nothing about real estate and should let the experts handle it.
  • They may claim you’ll never sell the house if its not on the MLS, which they can generously put you on (For 3%).
  • They may throw escrow terms around in the hopes that you’ll be intimidated.
  • They may try to confuse you on the steps of the process.

Hopefully, you’ve read my entire article by then and don’t fall for any of it.

Divide and Conquer

This is how ‘experts’ do it: They talk fast and confidently, using terms you havn’t heard, about a subject that’s new to you. Your wife, or you, get nervous and says, “Maybe we should stick with the professionals”. The remainder of the conversation is you pitting your instinct up against their ‘expertise’ on a subject you haven’t yet studied. Even if you ‘win’ the argument they change the subject and say another misleading 50 words to start over again. Since you’re going with instinct and it appears the agent is going with ‘facts’ you get in an argument with your wife because she wants to go with the ‘experts’ because the deal involves so much money. I truly hope this article helps you with that situation. I will give you one example, and how I would handle it, below. However, I can’t address everything that may come up. If you do decide to talk with a realtor I recommend studying up on all the potential things that might come up before the meeting. Especially if your meeting as a couple. Why not print out a copy of this article for your wife? Heck, at the very least you can show the realtor this article and say, “Why can’t I do what this guy did?”. Maybe it will change the subject into a service you might want to purchase from the realtor. Something costing less than their entire 3%, I would hope.

One Example and How I Would Handle It

Here’s one example of the kind of misleading advice brokers give out. Its from an article on the web written by a Realtor named Elizabeth Weintraub on about.com. The title of the article is Who Pays the Real Estate Commission? How Does an Agent Get Paid? Elizabeth writes: “It can be argued and, quite rightfully so, that the buyer always pays the commission. Why? Because it’s typically part of the sales price. If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers because, given the same logic, those prices should reflect a net sales price without a commission. But those sellers haven’t quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.” Ms. Weintraub’s advice is wrong, misleading, insulting to sellers and meant to intimidate potential buyers and sellers of FSBO (For Sale By Owner) properties. Let me explain why: (Note: This concludes the excerpt from Chapter One of the e-book,  “How To Sell Your House Without Using A Realtor”. It grew to ~20,000 words and is now a mini-book. You can download it, for free, from McGillespie Free Resource Library.) Click here to subscribe

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Self Portrait 1
Business

The Seven Matters of Life

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“Everything should be as simple as it can be, but not simpler.”

— Albert Einstein

I’ve found that life can be optimized with respect to a minimum of seven areas. Delete any one of them from the equations of your awareness and your life will degrade, sooner or later. Since these areas are irreducible I call them the Seven Matters of Life. They are: Personal, Health, Spiritual, Business, Family, Law, & Government.

The Seven Matters exert an inevitable, if not invisible, influence on our lives. As with natural laws describing gravity, time, the speed of light, etc. they persist whether we ignore them or not. We “escape” them only through acknowledgement and mastery.

My writing is an informational vortex swirling around the Seven Matters. Ideally, it serves as a generational boost to reduce the time needed to put your own life on optimal track.

A Portrait of the Seven Matters

To portray the seven matters I’ll use a pattern-type at the core of natural design: Fractals. Before fractals were discovered, Hollywood was unable to reproduce mountain landscapes without using artist renderings or real pictures of mountains. Now, they use triangles, a computer, and a dash of randomness to create breathtaking landscapes.

The point of using a fractal to portray the seven matters of life is this:

Fractals prove that stupefying complexity can emerge from utter simplicity. The reverse is not true.

Also, I want to make a point, graphically, about the nature of optimizing one’s life:

Even when a complex solution is needed it will inevitably be constructed with simple (not simplistic) components.

The Metatron Cube

One of my favorite fractals is the metatron cube, sometimes referred to as “the flower of life”. It’s formed with 13 spheres set in relation to each other, like this:

Wire Metatron Cube
Within the metatron cube are many other shapes. For example, it contains all five platonic solids.

metatron platonic

In this revolving view the cubic relationships of the same fractal are emphasized.

Metatron in Motion

Fractals can represent infinity by putting the same fractal within itself. Here’s what a metatron cube looks like with each sphere filled with its own metatron cube:

Metatron Infinity

Working Portrait

Please don’t mistake the colorful portrait, below, as “New Age” philosophy with its nauseating relativism. To the contrary, it’s a working portrait of the seven matters  at the core of each person. Though we’re all unique, and at differing levels of development, our design is specific and persistent.

Self Portrait 1
Notice these aspects of the portrait:

  1. The seven inner-spheres of the core correspond closely to the seven matters of life.
  2. The “matter” at the center is Spirit; a reference to the spirit inside you and to God.
  3. Each sphere is a fractal identical to the others, and to the whole.
  4. The outer spheres represent personal interactions with the external world. They are the natural outward reach stemming from the inner core.
  5. To the extent the inner-core is balanced, so is the person, and so are interactions with the external world.

Everyone has these “matters” in their life, in one formation or another. My choice of their positions is, therefore, a kind of self-portrait. Change the position of the “matters”, especially the one in the core, and the resulting life of the person will be quite different.

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Anton Chigurh
Business

Using the PCL-R to Detect and Eject Your Local Psychopath

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Psychopaths are all the rage, lately. About 1% of the population meet the clinical criteria for psychopathy.1 That percentage rises to 3-4% in senior executives.2 Many articles and books list their attributes and behaviors. Still, advice on what to do about them is sparse.

I have an idea: use the new tool enabling psychiatrists to standardize their diagnosis and communicate accurately about such “patients”. That is, use the PCL-R (Psychopathy Checklist-Revised) to detect the potential psychopaths in your life. Then eject them before they have a chance to do the damage they seem born to do. You don’t have to be an expert to protect yourself.

If that seems harsh then avail yourself of the innumerable books and articles about these human predators. They rarely create anything but chaos. They’re usually parasites that rely on the productivity of others to supply for their every need. And yet, human hosts abound. Hosts, who don’t realize they’re facilitating their own demise until it’s too late.

I wrote a book about a suspected psychopath to thicken the non-fiction part of his résumé. He hasn’t been brought to justice, yet, but perhaps my book will put a digital noose around his neck, in the meantime. In Chapter 13 of “The Creature from Galt’s Gulch” I used eyewitness accounts to compare the suspect with Dr. Robert Hare’s PCL-R checklist for psychopathy.

Beginning of Book Excerpt

Johnson and the Psychopathy Checklist

Here’s a list of eyewitness accounts of Johnson and their correspondence to the attributes and behaviors on Dr. Robert Hare’s PCL-R checklist for psychopathy.

Preserving the term, “Psychopathy”

Words are often used with little respect for their original meaning. They’re used in propaganda and strung together in phrases that become memes. Memes are captured in social media, sitcoms, and movies. Within a few short years the word bears little resemblance to its original meaning. The first casualty is that the word in question may never recover it’s original, and most powerful, meaning. Even greater damage is done by obscuring the definition of a perfectly good word and thereby shrinking the vocabulary of humanity. It then takes that much more effort to  communicate effectively.

We’re all familiar with the trivial use of the word “Fascist” hurled at anyone, and anything, the accuser may not like or that presents a maddening obstacle to their whims. Only when fascism describes the merger of corporate with state powers does meaning reappear. Another word that must be recovered to understand Galt’s Gulch Chile is “Psychopath”.

If your understanding of the word “Psychopath” is anyone acting in a way you don’t understand or agree with, then maybe the word “Psychotic” or “Psychosis” is a better fit. At the heart of the GGC story there sits a man exhibiting behaviors I believe (As a layman) to be consistent with the medical use of the term “Psychopath”. I refer to him as the “Creature” or Kenneth Dale Johnson. I have been careful to refrain from throwing the word “Psychopath” around in the irresponsible manner in which the word has become a cultural meme since 2010. That was when the Showtime series, “Dexter”, portrayed one as an ersatz hero. The word “Psychopath” is a medical term used to describe someone who lacks all empathy with their fellow man, someone who has no conscience, someone who can lie about millions of dollars of stolen money as if he were handing you an ice cream cone. It gets worse, but, let’s just leave it at that, for now.

As a layman, with no psychiatric medical training, I’ll stick with the PCL-R standard the professionals use to diagnose psychopathy. Dr. Robert Hare’s revised checklist for psychopathy is something I recommend all people become familiar with as a tool to assist in spotting, and then avoiding, the psychopaths that cross their path.
If there should be some kind of future “therapy” to shift the behavior of psychopaths towards that which, at least, acknowledges empathy with their fellow man (And not their pets or animals as is characteristic of the psychopath) then I welcome it. As of today, there is no such therapy that I’m aware of. The best course of action is to understand the behavior, recognize when they are being exhibited by someone, gauge the extent to which the person under consideration may be a psychopath, and avoid them in equal measure.

I believe that, unless Johnson ends up in jail, he’ll move on to live somewhere else in the world. May what’s been written here about the damage he’s done to so many people be added to his resume.

As of June, 2015 Johnson is making the mistake of recording himself on dozens of video updates he calls “Farm updates”. As with the rare movie, “I, Psychopath” where Sam Vaknin allows a filmmaker to create a documentary about him, this is a rare opportunity to study the behavior of a likely psychopath, in real time, and on video.

“Each of the 20 items in the PCL-R is scored on a three-point scale, with a rating of 0 if it does not apply at all, 1 if there is a partial match or mixed information, and 2 if there is a reasonably good match to the offender. This is said to be ideally done through a face-to-face interview together with supporting information on lifetime behavior (e.g. from case files), but is also done based only on file information. It can take up to three hours to collect and review the information. Out of a maximum score of 40, the cut-off for the label of psychopathy is 30 in the United States and 25 in the United Kingdom. A cut-off score of 25 is also sometimes used for research purposes. High PCL-R scores are positively associated with measures of impulsivity and aggression, Machiavellianism, persistent criminal behavior, and negatively associated with measures of empathy and affiliation.”
— Wikipedia entry for “Psychopathy Checklist”

GGC Logo
GGC Logo

PCL-R1

pcl-r2

PCL-R3

With five categories unknown Kenneth Dale Johnson already rates a score of 29, in the collective recollection of those who’ve tangled with him. If correct, that makes him a psychopath in the UK and 1 point shy in the US. What do you think are the chances of him scoring a 0 in the unknown categories?

End of Book Excerpt

 

If you’re interested in the full story of Galt’s Gulch Chile the 186-page book is free for those who have access to the resource library.

Dealing with Psychopaths

You have two options:

  1. Detect and Avoid.
  2. Disentangle, Starve, and Extract.

Detect and Avoid

The unhired employee is the easiest to fire. The unentangled friend has no pretense to interfere. The unmarried crazy-maker is the easiest to divorce. Memorize the attributes of the PCL-R checklist so you can vet strangers that want to become more than strangers. Be on guard for anything over a score of 10 or for any attributes you find disturbing. Call former business associates and friends (If there are any). Did your candidate get along well with others? Did they show genuine empathy for other people? Would they do business with them again? Are they still friends? Just those four questions are probably enough.

I have a friend with an uncanny ability to detect the unseen factors about people and situations.  She refers to it as her “Spidey Sense”. In the seven years I’ve known her she’s never been wrong. Now, when she tells me something is up I adjust my thoughts and actions to be in line with her intuitions. My friend has rare abilities. However, perhaps you can assemble a group of friends to achieve a similar result? Why not invite your candidate out for coffee for an informal vetting session?

Learning to recognize an aggressive move when somebody makes one and learning how to handle oneself in any of life’s many battles has turned out to be the most empowering experience for the manipulation victims with whom I’ve worked. It’s how they eventually freed themselves from their manipulator’s dominance and control and gained a much needed boost to their own sense of self-esteem. Recognizing the inherent aggression in manipulative behavior and becoming more aware of the slick, surreptitious ways that manipulative people prefer to aggress against us is extremely important. Not recognizing and accurately labeling their subtly aggressive moves causes most people to misinterpret the behavior of manipulators and, therefore, fail to respond to them in an appropriate fashion.3

Heavily Scrutinize Claims of Pain, Hurt Feelings, or Victimhood from Prospective Friends, Partners, etc.

Are they sharing a real experience or merely evoking feelings of sympathy to put you off-guard?

The tactics manipulators use can make it seem like they’re hurting, caring, defending, … almost anything but fighting. These tactics are hard to recognize as merely clever ploys. They always make just enough sense to make a person doubt their gut hunch that they’re being taken advantage of or abused. Besides, the tactics not only make it hard for you to consciously and objectively tell that a manipulator is fighting, but they also simultaneously keep you unconsciously on the defensive. These features make them highly effective psychological weapons to which anyone can be vulnerable. It’s hard to think clearly when someone has you emotionally on the run.4

Disentangle, Starve, and Extract

If you fail to detect or avoid a psychopath it will be much harder to get rid of them once they’ve embedded themselves into your life or business. It will be like trying to capture a spider while preserving the web. There will be people, assets, and money to preserve during the extraction. You can’t possibly care less about these things than your psycho already does. A psycho will think and feel nothing in “burning” through all of them just to see your reaction. Your best bet is to proceed slowly and document their every move so that contradictions and lies can be made visible to all. Get them talking and record everything (which is what psychos, themselves, are famous for doing). The biggest lies of their twisted premises must be debunked to the satisfaction of those who don’t yet see the spider for who they are. Those who don’t yet see through the psychos deceptions are unwittingly feeding the spider that will eventually bite them. In the meantime, the spider will continue to feed on the energy of those who still believe their lies. The idea is to cut off this source of the spider’s food so it eventually starves amidst a desert of unbelieving attention.

The ideal outcome is to have the spider eject themselves from the web. They will do so in huffs and indignant cries of counter-accusations. The psycho will go down with the ship repeating the same tired stories of how they have always been the victim and don’t care how many people don’t believe them. If you’ve done your homework such cries and accusations will now be seen and recognized by all to be ridiculous.

Of course, psycho extractions are rarely smooth and are difficult even when they can be done, at all. Perhaps Kent Kiehl’s, “The Psychopath Whisperer” can help. You may also enjoy Ann Barnhardt’s presentation on Diabolical Narcissism.

Their Words are Dead until You Make them Alive

Repeating the accusations of a psychopath makes dead words come alive. You are the source of that life. The more you repeat their words the more life the words have to impact the living. Stop repeating them, or even listening to them, and a psychopaths words remain dead in their own mouths. I’ve had personal experience with this.

A former boss of mine used to plant lies among his small group of five or so consultants. The point of his lies were to gain information from how each consultant reacted to them. I knew what he was doing but was never able to persuade the others to ignore his lies, altogether. When a co-worker would feel cornered into admitting to some trivial error the boss held it up as proof of the entire group being “liars”. That story reminds me of a simple and effective method for …

Extracting the Truth from a Psychopath

It’s easier than you think. Psychos are all blabber-mouths and can’t keep their own mouths shut. Your job is to listen and record. Then, translate their accusations as what they are: projected admissions of what the psycho, themselves, have done or are doing. It really is that simple. Psychos don’t so much create their own lies as much as they describe what they’ve actually done, and what their own motivations were. Then, a few names are swapped around, and fresh accusations can be launched. If cornered, your psycho will, of course, extend the web. But that be plausibly and quickly done with the inside knowledge of having been the original culprit.

Think of it this way: They’re not performing the mental feat of keeping track of multiple lies and the rippling consequences of multiple conflicting stories. They’re merely reciting from memory what they, themselves, have done.

Example

Psycho: “You’re a lying buffoon who has doctored up your resume with false experience while taking credit for the work that Joe and Marcia have done! You’re also using company money to pay for non-business events and expenses!”

You: Excellent. Now I know that my psycho has:

  1. Lied.
  2. Doctored up his resume
  3. Taken credit for Joe and Marcia’s work
  4. Used company money for travel, food, and events.

This is as close to a direct admission of deeds and guilt as your ever likely to get from your local psychopath. Enjoy it. Now you know exactly what they’ve been up to and how they mucked things up.

Herd Immunity from Psychos?

There is little hope or evidence that such creatures will self-correct and change their destructive ways. As with most problems facing humanity the hope lies in what changes the victims can make to avoid or neutralize the attack.
In the long-term, humanity must confront and overcome the following deficiencies if “Herd Immunity” is to be attained:

  • A pervasive lack of awareness of their existence.
  • Inability to diagnose and, therefore, to defend against, avoid, or thwart.
  • No understanding of how they fit-in, demographically, with humanity.
  • Apologetic denial that notorious figures of history were obvious and diagnosable psychopaths but my “friend” (Partner, Business Associate, City Councilman, etc.) is different.
  • No spiritual discernment of the possibility that some people are just plain evil and that’s all there is to it.
  • A knee-jerk tendency to dismiss outrageous behavior happening right in front of them.
  • A tendency to take responsibility for outrageous behavior so as not to upset the guilty offender with the truth, or upset the sensibilities of the group.
  • A long willingness to “Strike-a-Deal” to cap the bleeding despite an established string of lies.

Anyone wanting to avoid being victimized by covert-aggression must redefine the terms of engagement with a would-be manipulator. To do this effectively, one must: 1. be free of any harmful misconceptions about human nature and behavior, 2. know how to correctly assess the character of others, 3. heighten self-awareness, paying special attention to aspects of one’s own character that increase vulnerability to manipulation, 4. correctly recognize and label the tactics of manipulation and respond to them ap- propriately, 5. avoid fighting losing battles, and 6. know how to maintain a position of power and strength in interpersonal relationships.5

But, what about the short-term? What might you be able to do right now about the potential psychopaths in your life?

Adopt-A-Path

Ex-CIA agent Robert David Steele advised bloggers to adopt their own zip-code and illuminate whatever hanky-panky is going on.

“If you bloggers self-organize and attach yourselves like leeches to specific issues, corporations, organizations, challenges, whatever, you will be the intelligence minutemen of this century. The power is in your hands.”

Perhaps the same could done for Psychopaths or Diabolical Narcissists?

For those inclined I recommend being quite sure of the informal diagnosis of your adopted specimen. Preserve your integrity by using words and terms accurately. You won’t need to use hyperbole as there’s no need to exaggerate behavior that’s already quite outrageous. I’ve also learned from experience the many benefits of the writer having no ties, whatsoever, to the subject or their crimes. Human cooperation confuses the living daylight out of these creatures. They can’t understand something that’s not within them to ever do. I suppose that leaves them without much light, at all.

May it leave them with no victims, either.

  1. Hare, R. D 1994, ‘Predators: The Disturbing World of the Psychopaths among Us’,Psychology Today, vol. 27, no. 1, pp. 54–61 ↩
  2. Baibak, P; Hare, R. D Snakes in Suits: When Psychopaths Go to Work (2007) ↩
  3. In Sheep’s Clothing, Understanding and Dealing with Manipulative People, George K. Simon, Ph.D., page 8. ↩
  4. Ibid., 9. ↩
  5. Ibid., 93. ↩
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Markdown-parchment
Business

Markdown is the New Parchment

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If you want your words to last as long as parchment use plain ASCII text with Markdown. When found, your writing can be republished at the click of a button. It’s digital; make lots of copies.

Markdown is . . .1

… a way to format plain text to show the formatting choices of the writer.

The syntax is natural and the formatted text is readable (Unlike HTML from which Markdown was derived as a form of shorthand). And, since most publishing software can read Markdown, directly, the writer can write once, skip the hassles of formatting, and pass the text directly on to the publisher.

Half of the Markdown syntax is just how a writer would format text, naturally. For example, you type an asterisk or a number in front of bullet points or a list of items, or hit enter to separate paragraphs. Heading levels are marked by the number of “#” signs placed before the heading. Even footnotes, tables and web links are straightforward and the text remains readable after formatting.

Storage

Plain digital text bypasses the problems of paper storage. It also bypasses the format wars of proprietary software. Your writing is created, stored, and published from the same text file. If we can read Egyptian hieroglyphs, today, perhaps people will be able to read ASCII text files, 5000 years from now.

Ideally, you make a (Digital) book available and distribute it to hundreds or thousands of people. Upload it to a website where it will be indexed, and possibly stored, by a third party. Less ambitious writers could put their text on as many mediums as they can find. Put them in a safe, wrapped in a paper printout. Tell your family about them and put it in your will. If your lucky, your progeny will see it and use the search engine of the day to find a copy, somewhere. Otherwise, perhaps one of your digital copies is readable. In terms of survivability, the paper copy is likely the weakest contender after 100 years or so.

How Long Will it Last?

Markdown_table
Markdown_table

 

Search

The presumption, even today, is that if you have the title, or the author’s name, you have a fair chance of finding the book. As more books are published in digital-only formats the odds of being able to find any book will increase.

Write Once, Publish Anywhere

Markdown makes it possible to write once and publish anywhere. Every platform I’ve needed to publish to can receive markdown text. But, it’s even better than that: Most of my writing is outlined, written, edited, and exported directly to the publishing platform and archived in markdown from within one program: Scrivener. The text can then be updated or repurposed from the same place it’s archived! It’s hard to describe the relief of simplicity this workflow provides. It makes for a frictionless writing environment that shifts the focus of the work back onto content. You just keep writing and let the publishing platforms handle the formatting details.

Markdown Benefits

  • Liberates the writer from formatting concerns both during, and after, writing.
  • Liberates the writer from proprietary software jail.
  • Gives the writer the widest number of choices in publishing platforms.
  • Enables the writer to use the same text file to feed multiple software and publishing platforms.
  • Updates and editions are made to one file: The original text file.
  • Enables the text to be read now and for the foreseeable human future.
  • Puts the writing in simple text format which will outlast all software programs currently in use.
  • Text processing programs are everywhere as are publishing software and platforms that can read Markdown, directly. Pick one and start writing.

WYSIWYG Live Preview, Yes!

Ironically, writing in simple text was a big step for me. I worked as a typesetter before, and during, college and have always loved the look of well-formatted text and book design. My professional consulting is replete with word processors, project management software, presentations, adobe frame maker proposals, etc. To make it worse, I’ve relied heavily on HTML and InDesign for the past eight years. Must I do without the inspiration of formatted text to get all the benefits of writing in markdown?

Not at all! Marked reads your text file (Even a Scrivener file!) and displays a fully formatted version of your document in real time. As you type, Marked updates the displayed document. When you’re finished you can export the document from your original text editor or right from Marked, in all the standard formats.

Workflows

Website Articles

  1. Scrivener to WordPress.
  2. Markdownify plug-in within wordpress editor box.
  3. Images stored on dropbox or website image directory.
  4. Marked shows WYSIWYG of Scrivener file, including images, while the article is being written.

Guest posts

  1. Scrivener exported to publisher’s format preference.
    A. Cut/paste of Markdown txt?
    B. Html or pdf export from Marked
    C. Other?

Client Documents

  1. Scrivener to pdf export.
  2. Indesign for special formats only.

Books

  1. Scrivener to first draft.
  2. Edit drafts in Scrivener.
  3. Send to Editor(s).
  4. Make edits in Scrivener.
  5. Final copy to Indesign.
  6. Format for Kindle, PDF, etc.
  7. Succeeding versions in Indesign.

Project Planning & Tasks

  1. Omnifocus (Text only)
  2. Drafts (MD and Text)
  3. Scrivener (MD and Text)
  4. Excel

E-mails

MailMate

Notes

  1. Evernote
  2. Nvalt
  3. Drafts (iphone/pad) to Evernote to Scrivener

Misc. Tools

  • Byword
  • Brett Terpstra’s Markdown services
  • MultiMarkdown Composer

P.S., Nine Months Later

Shortly after starting to use Markdown I began using dictation software to talk words onto the screen. Dictation has now taken such a big place in my daily writing that my typing speed has declined. One thing I haven’t yet done is to train the dictation software to implement markdown syntax. For example, perhaps I could train the software so that saying, “Bold that”, puts double asterisks around the last word?

I no longer need Adobe Indesign or Word for daily writing. I much prefer to use Marked 2 for WYSIWYG of the draft folder of Scrivener. It’s not as good as Indesign but enough to be inspired by the clean text and formatting of what I’m working on.

When writing articles I sometimes use temporary droplink addresses of image files so Marked can show me how the picture will look with the text during the writing process. I also use droplink addresses to compose e-mails to friends (Also in markdown) if they’re to include photos. If I need the images to be viewable in the long-term I use “Transmit” to quickly upload the images to my website image directory and use that address in the markdown syntax.

When composing agendas and client documents I write them all in scrivener using markdown. I then use Marked to convert markdown to the pdf files that are sent directly to the client. Client work is started, and completed, in Scrivener where it remains in its final form. The pdf’s sent to the client are beautiful and archived in Scrivener.

Best Markdown Resources

  1. Invented by John Gruber and Fletcher Penny. ↩
  2. https://www.whalingmuseum.org/explore/library/from-the-vault/cuffe-manuscripts ↩
  3. https://en.wikipedia.org/wiki/Gutenberg_Bible ↩
  4. David Diringer noted that “the first mention of Egyptian documents written on leather goes back to the Fourth Dynasty (c. 2550–2450 BC), but the earliest of such documents extant are: a fragmentary roll of leather of the Sixth Dynasty (c. 24th century BC) ↩
  5. Jiahu symbols, carved on tortoise shells in Jiahu, c. 6600 BC ↩
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Your Optimal Equation
Business

Introducing Your Optimal Life Equation

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Your Optimal Life Equation (YOLE) is an algebraic formula to describe, contemplate, and re-calibrate the optimality of one’s life.  The relationships of the major elements are shown as well as the potential  impacts a change may have. The equation is introduced, here, and referred to throughout the “The Outliers Handbook“.

When I got the idea to describe an Optimal life with an algebraic formula the flaws in the approach were obvious: The units don’t match and assigning one number to something that, by its very nature, is multi-dimensional is absurd. Such absurdities are built-in to something else passed on as knowledge, every day . . . the IQ. Who in the world thinks something as multi-faceted as intelligence can be fully captured and described by an integer? It can’t. And yet, the IQ is still, somehow, useful. So is YOLE.

Cross-discipline metaphors are useful for the same reason any metaphor can be: Patterns in nature are like other patterns in nature. Sometimes, the same fractal pattern in one natural structure is duplicated exactly in another. Fractals prove that stupefying complexity can emerge from utter simplicity. The reverse is not true.

Those who have no problem “dividing” a mountain by a triangle  or seeing the golden ratio in a conch shell or human face may find YOLE useful. It doesn’t reach fractal-like perfection (Yet) but Your Optimal Life Equation may show how some of the major elements of life may be changed to lead to a more optimally functioning one.

Your Optimal Equation

Where all people have S,W,V,G,H,T,El,j,c and at least one Pg. Not every person has Pr, Pb or EB.

 

YOE-Variables
Key

Talking Through the Equation

The sum total of your Strengths and Weaknesses is all you have to maintain everything you Value, your Goals, the People in your life (H), and the Things you own. The results of that division is multiplied by  the purposeful roles you play in the lives of others, the purpose of your business activities, and whatever you most desire or worship (Your God). The resulting numerator is what you bring into (Is divided by) your larger environment: The physical or virtual stage of  your life and business. The major elements of your Environment are physical location, legal jurisdiction and community. Your business may have a separate environment with its own physical location, legal jurisdiction and community.

Small Changes Can Have a Huge Impact

The legal jurisdiction of one’s physical body and business could be the sole determining factor of whether one is at liberty to accomplish anything, at all. Likewise, the wrong community could leave one alone and bereft of the amplifications (And enjoyment) that a strong and thriving community can provide.

Whether or not one has an immediate family, an optional component of Pr , will have a huge impact on the nature of the most purposeful roles in one’s life.

What You Control . . .

You determine the inputs and amounts of most variables. You may have little to no control over some of them, in the short-term. You can have some degree of control over most of them, eventually. It’s  daunting to realize how most of the important aspects of life are the direct result of personal choice. The sheer amount of decisions one could make to optimize life is probably why people rarely take full control over all the elements they could potentially control. Of course, depending on resources available  (Strengths) an attempt to control everything might lead to a failure to control anything.

. . . and What You Don’t

Your unique disposition of strengths and weaknesses is part of your natural disposition at birth. You have huge latitude in honing and deploying strengths. You also have many options for minimizing the impacts of natural weaknesses. However, it’s still mostly a matter of playing smarter with the hand you’ve been dealt.

Likewise, you don’t choose to live on “The grid” of planet earth. You choose where to locate the various elements of your life on that grid.

You don’t choose the members of your local (And virtual) communities. You choose the location and subjects around which those communities are organized, and possibly united.

On Values

Values present a cost to maintain and uphold. Hold to as few of the best values in life while tending to values.  Discard bad values and replace merely good values with great ones. Great values are consistent with Purpose(s) and decrease net costs to Strengths.

On Goals

Goals are costly to achieve. Achieving goals is usually a good thing. A great thing, however, is achieving great goals. Great goals align with the purposes of your life. Discrimination between good and great goals requires awareness of purpose(s).

On People (H)

People can be among the greatest sources of abundance on earth. They can also be the most taxing. The task here is to have the right balance of people in your life. Those congruent with your purposes will bring abundance to your life (And you to theirs) even if they’re taxing. For one thing, people tend to motivate growth. Growth makes us stronger and leaves us with more strengths to optimize life. Therefore, the tax of people in our lives may be a large cost in the short-term and change the fundamental balance of the equation in the long-term. People are a “Capital” investment in the grandest sense of the world.

On Things

Things, or possessions, require some combination of storage, maintenance, insurance, licensing, money, time, registration, bill processing (Registration renewal, licensing updates, etc.) and on and on. The least number of Things you need to accomplish purpose(s) the better.

On Purpose(s)

Ants, snails, and bugs may have one purpose. People have multiple purposes. The popular myth that people have just one purpose is harmful and tends to thwart the discovery of what one’s purposes may be. There’s a purpose for every role, family member, business activity, ongoing responsibility and activity in your life. The YOLE encapsulates them all into the roles you play in the lives of others, business purposes, and God (Pr,b,g).

On Environment(s)

Personal and Business environments might be separate. Therefore, the equation allows for both E and EB. Each have their own components of physical location, legal jurisdiction and community.

Location has a dramatic affect on the prevailing Law, Jurisdiction, and Community with which you’re interacting with in time. However, physical location is not a static, one-time-only, choice. With cyberspace, jet travel, dual-citizenship, and multi-state and national entities a person’s Environment is no longer determined solely by physical Location. Of course, if your E and EB are tied to one physical location then it makes the equation easier to “Calculate”. The cost of that simplicity will probably increase as technocratic mechanisms of control and taxation become more refined and perfected. Also, as such mechanisms are refined and perfected E, EB, and their subcomponents will tend to merge into one. The more completely merged, the more each component will be the same for more people. Physical locations will always vary but characteristics of legal jurisdiction and community may become so similar that distinctions are of little importance. In some ways this can be seen as one drives across the US stopping into the “Same” fast-food franchises in every state.

Environments are multi-locational and sometimes virtual. Where is the PT (Perpetual Traveler) located if his business is in one country, money in another, investments in another and body in another? His body can only be in one location at a time, of course. But will he be there long enough to be viewed as a resident (Legal jurisdiction)? Even so, his business may be in a different jurisdiction. Complex combinations can grow out of varied components of E and EB.

Reality has ~10 Dimensions, Not Four

Theoretical physicists now presume Reality presents in 10 dimensions. That’s six more than most people assume comprise the Reality in which their life is taking place. To distinguish the standard four from the 10 I’ll use the convention of uppercase Reality (10) and lowercase reality (4). I might turn YOLE into a graphic to account for Reality. For now, think of E as not limited to the dimensions of X,Y,Z and Time/Space but extending into dimensions that may or may not be discernible to the five senses.

People with a keener sense of dimensions, beyond the four, may possess either a physical, intellectual or theological strength. Some choices of Pg enable such awareness and some preclude it. Since anything that obscures the full  dimensions of Reality is a handicap one can better optimize life with a Pg that enables full awareness.

What God?

Desire provides powerful insight into purpose. People align their lives with what they most desire in the moment. What people most desire can be described as their god of the moment.

There are as many gods (Idols) as there are nouns in the dictionary: Money, alcohol, sex, prestige, control over others, Buddha, Allah, nature, Lucifer or the Holy Trinity of the God of the Bible, etc. Gods are swapped in and out over time. Whatever one desires most during a given period is the god of that period. Sex in the morning, money in the afternoon, control over others at night . . . gods tend to become the sole purpose of one’s life for the time period they are most desired. During that period everything about the person tends to be oriented around obtaining or reveling in (Worshipping) whatever it is. Such desires effect physical, mental and spiritual changes in the person experiencing them. In a sense, we become what we most desire.

Business (Job) vs. Calling

If what you do for a living is also the highest purpose of your life, i.e., your business or job is also your calling,  then Pb will be a higher “Number” or of greater magnitude, to be more accurate.. The components of your business environment (EB) will still have a large impact on the equation but the first main numerator of the equation will tend to offset any negatives that may be components of EB.

Some Output Examples

O = (((S + W) / (V + G + H + T)) * Pr,b,g) / (El,j,c * EBl,j,c)

  • Strength(s) and Purpose(s) are the positive inputs used to optimize life. Their number, amount, deployment and alignment determine the positive “Numbers” of the equation, after which, everything gets divided.
  • By minimizing the impact of your weaknesses the impact of your strengths is greater.
  • Choose only the highest quality Values to uphold or maintain because any value presents a cost to your strengths to maintain. Replace merely good values with great values.
  • Choose only the highest quality goals to accomplish because any goal presents an achievement cost to your strengths. Replace merely good goals with great goals. Great goals still tax your strengths but are also components of Purpose and, therefore, counterbalance the equation.
  • Surround yourself with high quality people. All roles and relationships tax your strengths but the right people are components of Purpose and counterbalance the equation.
  • The less Things you own (Store, maintain, insure, move, sell, buy) the better. Anything that owns you must go. Such things make an optimal life impossible unless the purpose of your life is Thing(s).
  • If you have no Purpose(s) the chance of optimizing life falls to zero.
  • If you get stronger (Or deploy existing strengths more efficiently) you can support more Values, Goals, People and Things in your life. However, the least number of these you have, ideally keeping only those that will be factored with  purpose(s), the more optimal your life.
  • If the impact of your weaknesses are lessened you can support more Values, Goals, People and Things in your life because the tax (Direct subtraction) to your strengths is lessened.

This is a short list of example outputs from YOLE. It is, by no means, exhaustive.

On and On It Goes

There’s no end to the complexities of even one human life. The YOLE can be referred to in the middle of a storm (When nothing seems clear because everything is happening fast) or tranquil waters (When everything is fine and you want to focus on what small changes might have the best impact). Whatever the context it can show how some of major elements of life may be changed to enable one’s life to function more optimally. In “The Outliers Handbook” I refer to the equation in the context of the subjects and areas of life being addressed.

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FBI IRS GGC
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Investors File Criminal Charges Against Kenneth Johnson and Pamela Del Real, FBI and IRS Notified

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As promised by investor Lt. Col. Thomas Baker, the forensic reconstruction of Galt’s Gulch Chile has been completed and was hand-delivered to the FBI and the IRS on June 8th, 2015. Informed by the reconstruction, investor David McLeod filed criminal charges against Kenneth Johnson and Pamela Del Real in Chile (Docket number RUC 4710-2015) on May 20th. More US civil suits against Johnson are likely to follow.

On a phone call with Cathy Cuthbert, she described the forensic recontruction as a wellspring of previously unknown facts and details about what actually transpired around GGC. Timelines, Contracts, Accounting, Wire Transfers, Corporate reports, Recorded conversations between Johnson and investors, Videos, Credit reports, etc. showing Johnson to be at the heart of the problems surrounding GGC he has blamed on others. In other words, despite Johnson’s claims of working for the investors as a developer the reconstruction shows that the “service” Johnson has been providing them is similar to that which the bull provides the cow.

Readers of this GGC series will find it no surprise that Johnson used investor funds to spin a complex web of deceit involving multiple entities, off-shore trusts, multiple bank accounts, share swaps with Mario Del Real and others, inflated prices, ridiculous late fees, absurdly negotiated prices, etc. all while using corporate bank accounts like a personal checking account.

It’s tempting to leave Jeff Berwick out of discussions about GGC now that he’s so publicly apologized. Unfortunately, his involvement in cutting Cobin and German out, starting a different entity into which to take title (IGGSA) and trying to get the New Zealand trust and offshore structures in place is quite evident in the reconstruction documents. There’s little doubt Ken Johnson was the instigator of the most serious problems with GGC, and continues to make all things worse with his presence and current behavior. However, to say Berwick wasn’t right there at the beginning is to not tell the story, correctly, at all. As mentioned in Part 3 my hope is that Berwick will externalize his contrite heart into some modest assistance to ongoing recovery efforts or investors in extreme need. With the introduction of these new charges, with more to follow, the publicity surrounding the aftermath of GGC is not going away, anytime soon.

Note: The criminal charges filed by David McLeod, and some documents of the forensic reconstruction I was able to coax from the recovery team, have been added to the free E-book, “The Creature from Galt’s Gulch”. I will continue to add such elements to the book as I receive them and within the boundaries of preserving the privacy of the investors.

Justice Provided by the People Involved

As described by Cathy Cuthbert and Thomas Baker, the breadth and depth of the forensic reconstruction they’ve put together is quite impressive. It’s not only a meticulous investigation and gathering of documents but they’ve formatted the whole thing into a package that makes it accessible to outside parties.

I’m not sure what may have transpired between Tom and Ken but the USMC motto of “No better friend, no worse enemy” might echo in Johnson’s mind for some time to come. That is, if Johnson is able to comprehend what has just happened to him. The agencies he’s just been reported to will hound him for the next decade. Half of that decade will be spent defending himself against the criminal charges that were filed against him in Chile on May 20th, by David McLeod. And, there’s more to come. A rather obvious tip to Johnson would be: The next time Tom makes an offer of either “Friend” or “Enemy” . . . go with the former choice. Who knows? Maybe the recovery team would still let Johnson wiggle out of his fraud if he’d just hand over the land the investors paid for.

The FBI white collar crime fraud division will find that most of the investigative, forensic accounting, and reconstructive work has been done and hand-delivered to them by the recovery team. With so much work already complete perhaps the agency will bump the case to the top of their case-load so they may stand in front of their logo at a news conference and receive some good publicity.

The Del Real Factor

Johnson is solely responsible for inviting a local Chilean, Mario Del Real, into GGC affairs. And yet, investors have been made to suffer Johnson’s endless complaining about problems he’s had with Mario and his daughter, Pamela. That’s because Johnson performed a bizarre GGC stock swap with Mario hoping to make big money on the value of water in an Andes Water company called Rio Colorado. By the time the smoke had cleared Mario owned most of IGGSA and his daughter was the general manager of the company! In other words, Johnson was no longer the dominant share holder of GGC and had lost all control over the entity that holds the land. What great “Development” work, Ken!

(To understand more about this failed deal see Chapter 7, “The Rio Colorado/GGC Share Swap”, in the GGC E-book.)

If you’ve read my “Stolen Car Metaphor” at the end of Part 7 you know my take that Johnson’s epic fail with the Del Real share swap is merely the lamentations of a thief who bungled and lost the proceeds of a previous theft. The fact that Johnson’s audience for these lamentations are the victims of the first theft is exactly the kind of behavior I find consistent with Dr. Robert Hare’s psychopathy checklist.

Any deal Johnson made with stolen shares of stock can, and should be, overturned. Therefore, whether the Del Reals colluded with Johnson, or are merely his victims, is a matter for a judge to decide (Yes, there is no longer any way to resolve GGC disputes without involving state agencies, unfortunately). Pamela Del Real’s resume (She’s now the general manager for IGGSA) shows substantial accounting expertise. Such expertise will make it impossible for her to plead ignorance if there was any foul-play on the Del Reals part.

Johnson’s Latest Ploy, Revealed

Johnson has now revealed his latest ploy and what’s behind his re-occupation of the GGC hacienda and grounds. And, surprise, surprise, it’s a variation on his usual … lies mixed with just enough truth to confuse and divide his listeners against themselves while holding out a carrot and stick for those who either cooperate or resist.

More specifically, Johnson is trying to confuse and divide investors against lead investor Josh Kirley hoping they’ll put pressure on Josh to relent in his legal actions which have locked up Johnson’s sale and pillage of IGGSA assets. He also wants the investors to help him get rid of his “Del Real” problem. The carrot Johnson offers is the same old title to land he’s been promising investors, and not delivering, for the past two years. The stick is his continued presence and purported counter-attacks on investors who “continue to attack him”. For those not familiar with Johnson-speak, the word “attack” describes the actions of anyone who points out to Johnson another of his own broken promises.

If only the investors will help him convince Kirley to relent, and help him get rid of the Del Reals, then Johnson can deliver, at long last, the coveted Titles to actual land the investors have been pestering him about, all this time.

E-mail Between Host and Parasite

A recent e-mail exchange between Josh Kirley (The host) and Ken Johnson (The parasite) is an excellent illustration of what actually went wrong with GGC. It’s also an excellent example of what happens when “The creature” is confronted with truth.

My thanks to Josh Kirley for making this e-mail exchange available:

On Thu, May 28, 2015 at 12:27 PM, Josh Kirley <joshkirley@gmail.com> wrote:

“Ken,

For two years, you keep sending out the same emails. Always full of juicy drama, promising the release of more information in the future. This behavior is unprofessional. It inspires no confidence. Why can’t you just do your job?Try building something. Try living up to your responsibilities. Produce something. Be accountable. If you are GGC’s Minister of Propaganda, who is the Project Manager? Your accusations are baseless and defy all logic.

Tell me if you can refute the accuracy of the following facts. I swear to their order and authenticity.

1) You are wholly responsible for bringing the del Reals into this nightmare.

2) You pleaded with me to give 1 to 2.5 million dollars to Mario del Real for his Rio Colorado Project. You personally vouched for Mario, insisting the Rio Colorado deal was a “No Brainer” and a “Homerun”

3) I told you that I had my suspicions about del Real and would get back to you after performing some due diligence.

4) Once I told you that I was not willing to put money into a second Chilean investment, you totally reversed course.

5) You refused to provide me with del Real’s Ruta number, or even his full name, intentionally stonewalling my attempts to research his background.

6) You told an entire room full of defrauded investors at the second festival that your deal with del Real was a “totally separate” matter between you and him.

7) You told all of us that your alliance with del Real was “none of our business” and would have no impact on our contracts.

8) When I offered to pay, out of my own pocket, to have del Real looked into for you, you refused my help, saying that you feared if I looked into del Real, he might “get spooked” and walk away from your deal.

9) Weeks later, you came back to me, begging for a million dollars. You said that you were double crossed by del Real and you needed me to buy back the shares that you gave to him.

10) When I would not bail you out, you predictably changed your characterization of my relationship to the project from savior to saboteur.

I’m sorry if I cannot respond to each of your lying emails. But, I have to give priority to my day job. I suggest you do the same. Maybe start by paying employees, repaying loans, and living up to the contracts you signed.

Josh Kirley”

The Parasite Responds

“Josh,

As you know, you are lying about most all that you discuss. There are communications between you, Monica Wehrhahn, Ken Carpenter, Alison Sherman, the Del Reals and more. Do you think that those just disappear because you are now pitching your false storyline to yet another news outlet? This has always seemed to be a publicity stunt for you, just as GGC always have been for Jeff Berwick.”

Johnson then goes on a bizarre rant about Jeff Berwick and BitcoinATM, Wire Transfers, Cafayate, Argentina (If you can believe it) and ends with:

“We are working on completing what Mr. Aguirre was unable to complete, or was unwilling to complete. We are working to fix the $1m+ damages that those labeling themselves “rescuers” of GGC have inflicted upon the farm, buildings and property. We don’t spend our time pitching a false story line for our own publicity, as Mr. Berwick and yourself seem to focus on quite a lot.

Ken”

Notice that Johnson does not dispute, nor even address, any of Kirley’s questions or statements. This is the way e-mail “Exchanges” and “Dialogues” go with Johnson. For readers who may have wondered . . . “Why don’t they just ask Johnson if [Insert simple question here] the above exchange with Josh Kirley is your example. Josh speaks the pure truth and asks sincere questions and, in response, Johnson doesn’t respond, at all.

The last paragraph is classic Johnson-speak. For readers who don’t understand the dialect his e-mails usually end with a payoff like this if you know how to read Johnson-speak. That is, you take all accusations as a literal description of what Johnson, himself, has done or is doing. In his last paragraph, therefore, we learn that Johnson has caused more than a million dollars of damage and is pitching false story lines for his own publicity.

Johnson’s Assaults

I’ve spoken with two people who were physically assaulted by Ken Johnson. The first was a young man Johnson tried to push around (Mentally and physically) during Johnson’s employment with The Dollar Vigilante. This young man would not tolerate Johnson’s nonsense and was the first person to speak up to Berwick about his suspicions about Johnson poisonous behavior. If Berwick had listened it’s anyone’s guess how Galt’s Gulch Chile might have played out without the involvement of Ken Johnson.

The second assault was that of a 70-year-old Salesman that worked for GGC who didn’t fare so well in the “Encounter”. Sandy “Clarence” Sandfort was grabbed by the lapels and thrown over a couch by Johnson when he learned that Sandy was about the leave Chile after all of Johnson’s promises had remained unfulfilled. Sandy was severely bruised and Johnson had almost managed to break a few of Sandy’s ribs. He was so shaken up by Johnson’s assault that Berwick had to fly in the next day and negotiate an NDA and payoff to keep Sandy quiet about the assault. Johnson later broke the terms of that NDA by talking about the assault with a third-party. Hence, Sandy’s retelling of the assault to me.

and Taunting . . .

Tatiana Moroz, who worked for Ken Johnson and wrote the GGC theme song, shares her experiences with GGC and with sociopaths in the liberty movement. Most of what involves GGC is in the first 25 minutes of the video, but, the ladies (With Julia Tourianski, BraveTheWorld.com, and Gigi Bowman, gigibowman.com) go on to tell other fascinating stories around the theme.

https://www.youtube.com/watch?v=KqQW5a4dJMk

Contrast the story Tatiana tells in the above video with the excitement she started out with and you’ll get a feeling for the roller coaster ride that was GGC. Tatiana perfectly captures the cognitive dissonance felt by most who’ve followed the promise, and then the reality, of GGC in the hands of Ken Johnson.

Favorite excerpts:

“This nonsense [Sociopaths in the Liberty Movement] is disgusting and ridiculous … and what’s gonna happen, here, is that people are going to leave and they’re not going to want anything to do with it (True Liberty) and all we’re going to be left with is the dirtbags who think this kind of behavior is ok. … And I’m sick and tired of the people that are trying to call attention to the sociopathic behavior within our own movement getting trashed.”

Tatiana’s right, of course. Natural law doesn’t evaporate around people who wish to retain and use their liberties. If anything, we must be more mindful of universal human truths because we are the people exploring the boundaries of liberty. A tolerance for lies, manipulation, sexual assault, and broken contracts is not “What’s up!” in Liberty. Anyone claiming that such tolerance is “Cool” is not a libertarian. They’re just another asshole in disguise.

John Cobin Interview

I had the pleasure of interviewing John Cobin about GGC for 1.5 hours, last week. The interview was mostly for my E-book about GGC. However, of interest, here, is the remarkable consistency of Dr. Cobin’s story with everything he’s said from the very beginning. Cobin is abundantly forthcoming about every meeting, document, e-mail and conversation he’s had with respect to GGC. My reaction to the interview was to tell him that it was a pleasure to speak with someone involved in GGC that looks better and better with each discovered and documented fact about the project.

Cobin said the impression he got from Jeff Berwick and Ken Johnson was that, they alone, might be able to supply the funding for GGC. He had no idea that they would, almost immediately, take his extensive research and information about Chile and GGC and cut him out of the deal. Although he concurs with the possible psychopathy of Johnson he puts Berwick in the same category in terms of the way they defrauded him. And yet, I had the impression that, even now, he would be forgiving of Berwick if approached in some meaningful way to make restitution.

Cobin said Johnson came after him, very agressively, in a libel suit in Chile. Guess what happened when the court date arrived? Johnson was a no-show! I won’t compare a libel suit with a podcast debate, but, I’m becoming quite familiar with Johnson’s cowardice in the face of someone determined to tell the truth. So far, Johnson’s been a no-show on two podcasts about GGC that he, himself, dared me to participate in.

For those interested in Chile I highly recommend the interview James and Johnathan conducted with Dr. Cobin on Monday over at Borderless. Cobin proves himself to be THE reliable source for all of Chile and much of the rest of the “Expat” world, as well. Cobin’s book, “Life in Chile” greatly increased the effectiveness of my 21-day country-vetting trip to Chile in 2012. I look forward to reading his latest book, “Living in Chile” when I can come up for air over the summer.

GGC Theatre

Johnson has been roaming around the property making absurd videos in an attempt to document the damage done by the recovery team. Perhaps the investors share my hope that Johnson continue making these videos as they are helpful in documenting what Johnson, himself, has done.

One of the things Johnson harps on in the videos are the “Damages” done by the recovery team causing a poor yield from the wells. In fact, such poor yields were caused by Johnson’s complete ignorance and inept handling of the well work around the property. Despite the pleadings of the local workers Johnson put Manuel Hermosillo in charge of the wells and the work was terribly bungled. And yet, somehow, the investors end up blamed, yet again, for Johnson’s incompetence. Such GGC Theatre might be a useful prop to help Johnson influence the Chilean locals who have no idea what’s going on with GGC. To those who’ve read the first thing about GGC, however, they are just that much more documentation of Johnson’s failings.

Message to local Chileans:

Johnson’s accusations of others are a reliable confession of his own failings. There is truth in many of the disasters he documents but your messenger is the culprit, not the victim. Johnson’s “Investment” into GGC remains at zero while 76-investors and buyers have given $10.45 million dollars for the purchase of everything you see associated with GGC. 72 of the investors have been begging Johnson to leave for over a year.

What happens next?

First, most of the predictions made in Part 6 seem to be coming true. That includes Johnson hinting that he wants to sell water rights, again. Happily, he’s unable to do so with the current injunctions in place.

Johnson has some time while the ocean water recedes in preparation for a tsunami of new legal problems.

Some think Johnson will stick it out to the end because his claim to be “Working for” the investors is his only defense against the legal actions that have been filed against him. But, Johnson also claims he controls or owns everything (Vacillating between claims of control or ownership) depending on his audience and the phases of GGC. How could someone who owns everything be an employee? How could a trustee (Controls everything) claim to be a trustee of beneficiaries who have been begging him to leave for the past year?

Perhaps Chile, and the local populace of Curacavi, will no longer tolerate Johnson as the criminal charges pile on. If he’s made to flee then we may see more pictures of his backpacks of stolen money while he’s on the run. I think he still has a Paraguayan passport from the passport scandal he was conducting at TDV. Still, all these charges filed with state agencies will haunt him wherever he goes. As of today, Johnson has put a digital data noose around his own neck that will follow him around the globe.

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The Creature from Galt’s Gulch—The Book

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NOTE: Version 1 of this book is ready as of June 11th, 2015.

I’ve put all the articles of the McGillespie.com GGC series into book format and am supplementing it with the latest developments and documents from the recovery efforts. In addition to all the articles of the series the book contains:

  • An Index and description of all people involved, or referenced, in the GGC story.
  • QR Codes for videos, websites, media articles, etc.
  • Links to ALL publicly available articles and documents related to GGC.
  • A Chapter describing the types of fraud that were conducted around GGC.
  • A Chapter describing the five types of contracts that were used with investors and buyers of GGC “Products”.
  • A Chapter describing the Rio Colorado/GGC Share swap.
  • A comparison table of the eye-witnessed actions of Kenneth Johnson to Dr. Robert Hare’s Psychopathy Checklist (PCL-R).
  • Copies of all legal actions or criminal charges filed with regard to Galt’s Gulch Chile.
  • The original “Founders Club” document Cobin wrote, and Johnson later modified, and sent out to all investors who expressed interest in GGC.
  • The original Business Plan that got things started.
  • Download links for all PDF files related to GGC that are too large to be included in the book.

The book will be updated with all the latest developments around GGC including legal actions, criminal complaints, media articles, youtube videos, articles by Terence, and any significant releases from the recovery team.

This is not a traditional book but a working document meant to help the people involved and inform (And entertain!) the public. It’s currently 200 pages, and growing. I may add an index but the e-book format already enables the reader to search for their term of interest, quite easily. It’s currently in PDF format but I could convert it to EPUB and .MOBI if there’s enough interest. Please send me an e-mail if you would appreciate that potential effort.

The purpose of the Book

  • To Document, on an ongoing basis, what is happening with Galt’s Gulch Chile to assist recovery efforts, underway.
  • To be a trusted and reliable source for journalists and media outlets who may wish to write about various aspects of GGC.
  • To tell the truth about GGC while the facts are clearly in the memory of the participants and the evidence is freshly available.
  • To document the crimes of Kenneth Dale Johnson and others so possible future victims may be warned.
  • To Document GGC for legacy reference and lessons that may be gleaned for both GGC restoration and other such ambitious liberty-minded projects.

How to Get Your Copy

Version 1 is ready as of June 11th, 2015. If there’s an update I’ll post the version and date, here, on the page you’re reading.

Go to McGillespie.Com, type your name and e-mail into the boxes under “McGillespie Resource Library”, then hit the submit button. An e-mail will be sent with the password to the McGillespie Resource Library which contains the book and many other resources you might find useful.

For future updates (Or any problems downloading the book) use the “Contact Us” tab or leave a comment, below, on this page with your name and e-mail.

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Podcast Discussions about Galt’s Gulch Chile

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The Jetsetter Show with Jason Hartman

Jason Hartman and Terence Gillespie discuss Galt’s Gulch Chile and many ways to optimize the path for expatriates in Chile and Colombia. Jason has a wonderful transcription posted just below the link for the podcast:

JS 101: What Happened with Galt’s Gulch, Chile?

Borderless Network Podcast

In this episode we have Terence Gillespie on the show to discuss what happened with Galt’s Gulch Chile and some of the lessons that can be learned from what happened there.

Show notes:

The background on Galt’s Gulch Chile (0:50)
Who is Terence Gillespie (4:13)
Why does he care (5:18)
Was Galt’s Gulch a libertarian project? (6:36)
At what point in time did this deal fall apart? (9:40)
How was this theft possible? (11:42)
How much of the blame should go on the investors? (13:15)
What caused the change is perception in August 2014? (17:15)
What was Jeff Berwick’s role in this fiasco (22:30)
What is going to have to happen in order for this to turn into a successful project? (27:35)
Will the $10.5 million be recovered? (32:09)
Affinity Scam
Was GGC a fraud from the beginning? (34:54)
Lessons learned from GGC (36:36)

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GGC Part 7 — Jerry Folta’s Legal Action against IGGA

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Part 1: What Happened and When?

Part 2: Root Cause of Problems?

Part 3: How Might Problems be Avoided in the Future?

Part 4: What’s the Deal with Berwick and GGC?

Part 5: Feedback from the Recovery Team

Part 6: Johnson Re-Occupies Galt’s Gulch

 

E-mail Sent to Jerry Folta

From: Terence
To: jerry@foltas.com
Date: Mon, 04 May 2015 21:14:41 -0700

Jerry,

My name is Terence Gillespie, the author of the GGC
series Parts 1 – 6, starting here:

https://mcgillespie.com/galts-gulch-chile-story-timeline-references/

I’m writing to request a comment from you on an apparent snippet
of an e-mail exchange between yourself and Wendy McElroy that
Kenneth Johnson cut/pasted into the comments section of a recent
Panama Post article.

————————————
On May 1, 2015, at 5:04 PM, Wendy McElroy wrote:

Are you suing Ken J?

On Fri, May 1, 2015 at 5:08 PM, Jerry Folta wrote:

Absolutely not. Cathy, as is her way, got it wrong.”
———————————-

Here are my questions for you, Jerry:

1) When you wrote, “Cathy . . . got it wrong” did you mean that it was actually lawyer, Héctor Hernán Herrera Flores, who filed on behalf of entity “Jumpin’ G’s SpA” against Inmobiliaria Galt’s Gulch S.A. per this public document?

CORTED DE APELACIONES DE SANTIAGO
Sec: Civil Folio: 00240284
Procedimiento:
Jdo: 18 CIV Rol : C-007863
Fecha: 02–04-2015 Hora : 12: 42
Materia : C01

2) Is “Jumpin’ G’s SpA” your entity or one in which you have an interest?

3) Why did you use that entity in the “Promesa de Compraventa y Prestamo” with IGGSA for a 25 acre lemon orchard lot?

4) Who is required to respond to the action, Pamela Del Real or Kenneth Dale Johnson?

5) Why not use arbitration, which your contract allows, instead of a much more expensive civil action?

I’m writing an article about this filing as I think it’s applicable to the series, and more importantly, justice and restoration to investors such as yourself. Please respond within three days so that I may include your view on the matter.

I’m sorry for any losses you’ve had with respect to GGC. All private correspondence between me and you will be kept private, if you prefer. However, the questions I am sending you will be in my article. Please mark clearly any information in your reply that you would prefer to be kept private.

Thank you,

Terence GIllespie
McGillespie.com

Jerry’s Response

Hi Terence:

Jumpin’G’s SpA is owned by a Trust that I set up for the benefit of myself and my heirs. The current General Manager of IGGSA according to public record is Pamela Del Real. Arbitration is inappropriate because she became General Manager as a result of fraudulent actions. The approach I’m taking hopefully provides flexibility going forward in clarifying the legal ownership of GGC.

Once ownership is legally clear it is hoped all buyers/investors, including members of the Rescue Team, will take title to their properties (as well as GGC equity for First Round Founders) and GGC can be completed.

Jerry

Inference & Analysis

Prior to sending the e-mail, above, to Jerry, I published a detailed inference about it’s meaning with respect to GGC investors and Folta. Having now received Folta’s response to my questions I’ll supplement that public inference by adding comments to the original under the heading “To Which I Add/Clarify”. Here’s what I originally wrote:

Defendant: Galt’s Gulch S.A. . . . Don KENNETH DALE JOHNSON,
El Promitente comparador (Jumpin’ G’s SpA)

$450,000 US.

Here’s how it works GGC Investors: Jerry’s entity filed a civil suit against Inmobiliaria Galt’s Gulch S.A. on 4/2/15. Johnson lets the suit go through without protesting and Jumping’ G (Jerry Folta) “wins” the suit, by default.

Now, if Josh Kirley’s suit goes in favor of the GGC Investors then Jerry Folta is first in line to get paid. How? Because Folta takes the judgment and turns it into a lien against Inmobiliaria Galt’s Gulch S.A. Now, guess who has to get paid first when the entity (Land) is sold? Correct: Folta.

If Josh’s suit goes the other way then Johnson “pays off” Jerry’s suit for $1 or whatever.

Folta and Johnson have been playing both sides against the middle the whole time. This is just more of the same. I highly doubt $450,000 was ever given to Johnson by Folta. This is just a way for Jerry to recoup his losses with Johnson before the other 75 investors.

Now, do you see why Folta is technically telling the truth when claiming he’s not “suing” Ken Johnson? No, it’s his entity that has filed the suit. And if you question Folta about that then he’ll still deny it and even that is true. No money changed hands and he’s already agreed in advance on the sham with Johnson.

It’s a LIEN disguised as a CIVIL SUIT!

Welcome to the world of fiat money, invoices, bills, and yes, civil suits. Just because there’s a number on a suit between two supposedly “warring” parties does not mean any money has changed hands or that anything is really owed.

To Which I Add/Clarify

Folta’s action is filed against “Inmobiliaria Galt’s Gulch S.A.”, referred to as IGGSA. The original entity created by Cobin, et. al., was “Galt’s Gulch Chile S.A.. Therefore, Folta’s action is against Johnson’s personal entity into which he fraudulently conveyed receipt of GGC properties purchased with investor money. This fraudulent conveyance is the primary and largest fraud, performed by Johnson, that caused all the “controversy” about GGC.

Even if Johnson shows up to contest the action it could still go in Folta’s favor.

This is a legal, not a moral, inference that I’m making about Folta becoming first lien holder in line. Morally, all investors are equally entitled to restitution. Legally, it may not make Folta first in line but it would make him among the few investors with a state judgment in their hands, unless others decide to file such actions. Also, the lien would be against an entity holding stolen property. Whether or not the Chilean courts would recognize or consider this fact is anyone’s guess. That probably depends on the decision regarding Josh Kirley’s separate action currently awaiting a judgment

My hope is that neither Jerry Folta, nor any investor, would be foolish enough to go along with such a scheme with Johnson. Also, as written in my e-mail to Folta, the last thing I want to see is any investor losing more money to Johnson.

As described in Part 6 under the heading of “Litigation Pending”, I have since learned that Folta did purchase a Promesa (Option) for a 25-acre lemon orchard lot. I have no reason or evidence to believe that Jerry did not pay real money for this lot (Or an option for such a lot, anyway). My inference that Jerry is “Playing both sides against the middle” is based on his continued support of Johnson amidst an avalanche of evidence and eye-witness testimony that Johnson’s a crook. It’s also based on Jerry’s strange and veiled  responses to specific questions from the recovery team and a rather misleading response to an e-mail from Wendy McElroy (A private e-mail made public by Johnson, I might add).

When you have people, entities, and representatives of entities, involved in legal filings things get murky and one can play lots of legalistic and semantic word games with the truth. There are so many combinations of possibilities for casually, but inaccurately, describing Folta’s action that anyone who doesn’t get the language exactly correct can be easily (And maliciously) accused of “not knowing what’s going on” or, in Cathy Cuthbert’s case, “… as is her way, got it wrong”. My e-mail to Folta was more specifically worded. As you can see by Folta’s response, Cuthbert was closer to the truth than one might gather from Folta’s dismissive, and unforthcoming, e-mail response to a straightforward question by Wendy McElroy with the same general intent. So, why didn’t Folta just explain the details?

And, what about Folta’s legal action might “clarify legal ownership of GGC?” If the judgment is turned into a lien against IGGSA then it most certainly is a lien disguised as a civil suit.

The Big Picture in Simple Words

Can the booty of a theft be liened?

Someone steals money from my partner and I. The thief uses the money to buy a car and puts his corporation on the title. Then the thief meets another thief who transfers the shares of the corporation into his name. Upon finding out about the car my partner panics and files a lien against the shares of the corporation. Now, what happens when the car is found and I try to get my money back? I can sell the car and split the money with my parter, right? Or, if we want the car we can keep it in our partnership, right?

Key: The GGC investors and Folta are the partners. The first thief is Johnson. Sarrazin and Ramirez sold  the car. The second thief is Mario Del Real. Jerry Folta is the lien-holder. The GGC investors and Jerry are the rightful owners of the car.

The moral and legal answer should be that nothing downstream of the original theft matters. And, in the case of Jerry Folta’s legal action, a lien on the shares of the corporation formed by a thief with money he stole is merely a stopgap measure in case the original owners of the money gets shafted because everyone is so confused about the theft and the shares of the car.

It’s a little more complicated than that but I’ll expand on the metaphor in future updates.

Folta is hedging his bets in case the money won’t or can’t be returned to the original owners but the shares of the corporation may be returned to thief number one, Johnson. Actually, the second thief could keep the “car” and Folta’s legal action would still hedge his bets if his legal action prevails.

Anyway, That’s GGC in a nutshell, folks.

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The Outlier’s Handbook

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The world discards ideas and people that present multiple standard deviations away from “normal”. And yet, Reality has always been phenomenal and noumenal. To ensure you’re able to thrive in the artificial chaos of this generation you’ll need to be an outlier, in many ways. Here’s “The Outlier’s Handbook” to optimize your trajectory.

The Outlier’s Handbook

(Thriving in Artificial Chaos)

Table of Contents

Part 1 — What Outliers?

“Let Your Reasonableness Be Known to Everyone”

  • Ockham’s Razor: Benefits & Limits
  • The Bookends of Normalcy Bias & Cognitive Dissonance
  • “This Book Goes Too Far!”

What Outliers?

  • Outliers Defined
  • You Know You’re An Outlier If . . .
  • Outlier Benefits
  • Outlier Costs
  • Personal Secession and Other Outlier Mindsets

Part 2 — It’s Your World, Boss!

This Is Where You Live

American Roulette

  • The Constitution is Safe!
  • A Bank with Social Services Around It
  • Democracy: The God that Failed
  • The Corporation
  • The Deep State
  • Fascism, American Style

Lifecycle of Nations

  • “Poverty of Nations” Report Card
  • Imperial Collapse Playbook

Danger, Will Robinson!

Technocracy: The Trojan Horse of Global Transformation

Regional Bloc Head Mercantilism

  • Gee, Maybe Nation-States Weren’t So Bad, After All
  • Solutions Amidst Global Fascism
  • Change Happens Like This, Now

Part 3 — The Usual Suspects

Call Them As You See Them

Origin & Story of Rulers and Authorities

  • Angelic Gen 6 View: Consistency & Insights
  • So, Who are “They”?
  • The “New” Face of Evil (Follow the Blood)
  • Long Term Trends Require Spiritual Unity
  • The Minions
  • A Working Structure of Oppression

They Walk Among Us

  • Serial Killers
  • How Can You Spot One?
  • Political Ponerology
  • 7 signs you might be dating one
  • Protection From Them
  • Speech Patterns
  • I, Psychopath
  • The Hidden Cost of Killing Psychopaths
  • Beware the Backlash

Elements of Their World View

Their Goals

  • ”Ye Shall Be As Gods”

Their Methods

  • The Moral Code of Evil
  • Inversion
  • Undisclosed Adhesion Contracts
  • Counterfeit Money
  • Controlled Markets
  • Technocracy
  • Stacked & Interlocking Pyramidical Structures
  • Consolidation
  • Democracy
  • Eugenics
  • Perpetual Fear
  • Long-Term Planning
  • With Methods Like This, Who Needs the Occult?

Part 4 — Acquiring Immunity

Move #1: Acquire Personal Immunity

Personal Matters

  • Purpose is Everything
  • Managing Outlierhood
  • Growth
  • Ethical Time Travel

Health Matters

  • First Do No Harm
  • Clean Food, Water, Air & Place
  • Nutrient Dense Diet
  • Gut Flora, Probiotics and the Second Brain
  • Optimal Exercise
  • Stress & Breathing
  • Life Extension & Blood Sugar Management
  • Sensible Health Insurance
  • Putting It All Together

Spiritual Matters

  • Intelligent or Random Design
  • Oneism (Monism) vs. Dualism
  • CINO’s & MINO’s
  • Christianity Leads To Science, Islam leads to Murder
  • Gandhi or Jesus?
  • Get Blessed
  • Get Uncursed
  • Supernatural Immunity: The Mind & Way Of Christ
  • The Whole Council of God
  • Spiritual Warfare
  • Practical Examples of Spiritually Based Solutions

Locational Matters

  • The Best Place to Live
  • Where Not to Live
  • Should you relocate?
  • The World is Yours
  • The Illusion of Ownership
  • Mobility
  • G.O.O.D Project – Lessons Learned

Family Matters

  • Instrument of Recursive Perfection
  • Spouse Choice
  • Children
  • Extended Family
  • Friends Worth the Title are Family
  • Community

Legal Matters

  • Natural Law
  • The Constitution is Safe!
  • Jurisdiction Matters
  • Where is the Agreement?
  • It’s Hard to Be a Free Man
  • Unraveling Your Liberty

Financial Matters

  • Money is for Immunity & Purpose
  • Business as Extension of Purpose
  • Tax Penalties for Fear and Poor Planning
  • Mortgage Slavery, Repealed
  • Austrian Economics is Real Economics
  • Investments in Immunity & Purpose Have the Highest ROI
  • Asset Protection

Political Matters

  • Terms of “State” & “Government”
  • The Diversion Of Left – Right Thinking
  • The Votes that Matter
  • Optimal Government = Perfect Self-Government
  • The Chief Asset Of The State: Fear & Belief In It’s Necessity
  • All Matters of Liberty Are Related
  • Caveat Viator: Libertarianism and Anarchy are Aspects of a Complete Worldview
  • Govern Thyself Perfectly and Hold Death Dear

Perspective Matters

  • The Most Valuable Commodity on the Planet
  • Philosophers On Donuts
  • Terms of “Freedom” & “Liberty”
  • Equality & Authority
  • Freedom & Structure
  • Peace Does Not Flow From Passivity
  • Proof and Truth
  • You Can’t Beat Everything with Nothing
  • “Let’s Just Split the Difference and Find a Middle Ground”
  • Stoicism
  • The Opportunity in Uncertainty
  • If Swamp Rats Can’t be Exterminated Why Can You?
  • What About America?

Doing Matters

  • Tony Robbin’s Best Trick
  • Think Spiritually, Act Locally
  • Getting Things Done
  • Low Hanging Fruit
  • Tragic Flaws of Conventional Prepping
  • Expert Tips
  • How To Lose Without Fighting (An Outlier’s Not To-Do List)

Part 5 — Ants & The Human Mosaic

Change The World in Four Moves

  • Humans as an Ant Army
  • Move #1: Immunity
  • Move #2: Specialize
  • Move #3: Move
  • Move #4: Cooperate
  • Humanize the Best Attributes of Animals & Insects

Part 6 — Problems: Solutions

Move #2: Specialize & Pick One

Personal Concerns

  • Training Disguised as Education
  • Shortening Attention Spans
  • Media Agitprop

Health Concerns

  • Eugenics
  • Vaccines Vs. Immunity
  • Socialized Medicine
  • Food Fascism & GMOs
  • Fluoridated water
  • Nuclear Waste & Meltdown Disasters
  • Geo-Engineering
  • Disease(s) Cured

Spiritual Concerns

  • Psychopathy
  • Moral Relativism
  • Odious Debt (Slavery)
  • Wars of Conquest
  • False-Flag Attacks
  • End Times Decoder Rings
  • 501c3 Churches

Locational Concerns

  • Agenda 21
  • Scientific Control Grid
  • Power Grid Fragility

Family Concerns

  • The State as Great Father
  • Broken Families

Legal Concerns

  • Patent Squelching
  • Webs of Undisclosed Adhesion Contracts
  • Drug Wars
  • Licensing
  • Militarization of Police
  • Surveillance State
  • Monopoly
  • Bonus: Beating Traffic Tickets

Financial Concerns

  • Fractional Reserve Banking (The Theft of Human Labor)
  • Disappearing Middle-Class A.K.A Unemployment
  • Currency Wars
  • US Bankruptcy
  • World Banking Systems
  • Institutional(ized) Theft
  • Market Manipulation
  • Global Cooling, Warming …Climate Change?
  • Technocracy

Political Concerns

  • Collectivism
  • Globalism

Part 7 — Appendices

  • In Case of Emergency: Read First!
  • Four Ways to Parse Solutions
  • Reading List for Outliers
  • Outlier Creeds
  • Sovereignty & Law
  • Agorist Manifesto in 95 Theses
  • Agorist Road-map Kyle Bennet
  • 100 Ways To Leave Leviathan
  • Wayne & Barry’s Guide for World Rulers
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GGC, Part 6 — Johnson Re-Occupies Galt’s Gulch

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I’ve spent the last two days responding on the comment section of an article written by Rebeca Morla at the Panama Post. Though I find the article represents mostly Johnson’s point of view I sympathize with any journalist under deadline having to come up to speed on the Galt’s Gulch Chile project. I was informed by a comment on Doug Casey’s International Man forum that Rebeca used this series to prepare her article. I look forward to more articles from her and the post in the future. Also, James Guzman followed up with a brief article on GGC, as well. The only thing I might change about Guzman’s article is his reference to the rescue team’s entrance to the property, last October, as an “armed capture”. That probably comes from Berwick’s article referring to it as a “SWAT Raid”. My understanding is that there were no guns and no violence involved in the recovery team’s entrance to the property. I make that distinction because it’s important to libertarians and because Johnson’s recent reoccupation did, in fact, involve the use of a firearm. As I’ve pointed out in previous articles, Johnson is no libertarian and should not be confused, in any way, with the principles of Ayn Rand’s “Atlas Shrugged” from which the name Galt’s Gulch is derived.

With Mario Del Real already in control of “El Penon” (GGC Parcel #1 of 2) farm workers working on “El Lepe” (The second and largest parcel of land that comprises Galt’s Gulch Chile and it’s offices, hacienda and lemon trees) reported, last week, that, under threat of violence by three hired thugs (One concealing a gun), Ken Johnson has taken back occupation of “El Lepe”. Below is the narrative from farm managers Renzo and Ken Carpenter as sent out to investors on Wednesday, April 22nd.

Friday, April 17th at the farm:

  • Farm worker, Jaime Olivares, while cutting espino trees saw Manuel Hermosilla walking inside the property. When confronted Hermosilla said that he would kill Farm Manager Diego.
  • The Farm Managers made a complaint with the Curacaví police against Hermosilla for entering the property and making his death threat.

Monday, April 20th, at the farm:

  • At 8:30 pm, Ian Thornton and three thugs with a pistol, arrived at the gate and said to Diego and Coto, “Open the gate. We are coming in, one way or another.” Diego let them in.
  • Ian confiscated their telephones.
  • Coto, from a hiding place, was able to communicate with Renzo who was in town on farm business. He alerted Renzo as to what was happening.
  • Renzo phoned the police. By the time the cops arrived, Ian had put new chains on the gate so Renzo and the cops could not enter the property.
  • Renzo called Ian from the gate. Thornton said to him, “You have two options, cooperate or go to jail for the things you sold.”
  • Former developer Johnson arrived around 11 pm, inspected the house, and left with the IMac Desktop computer.
  • Thornton offered Renzo work if he would cooperate.
  • Thornton said that no employee would be paid this week, but would be paid starting next week.

Tuesday, April 21st, Morning, Santiago:

  • Former developer Johnson arrived with two police officers at Kenny’s apartment in Santiago.
  • Police showed proof of GGC ownership of the Jeep to Kenny.
  • Kenny explained to the police that the jeep was voluntarily loaned out and the keys handed over to him. He gave the cops the keys.
  • The police ask for a GPS and computer, but Kenny told them that he didn’t have any registered company property. Johnson called his lawyer who advised him to tell the cops to take only the jeep.
  • Johnson said that Del Real is about to go to prison and anyone aligned with him is in trouble.

Both the farm and the jeep are in improved condition from when The Recovery Team took possession of them. We have photographic evidence of that. The employees were paid up to date, and we were current on all bills.

Thursday, April 23rd:

The GGC Recovery Team received a report from Curacaví this evening that Johnson presented one of the farm managers with a criminal complaint for selling various “antiques” and old equipment around the premises to raise money for salaries and operating expenses. The farm managers were interrogated by Johnson’s lawyers and the PDI (Chilean FBI equivalent) for hours.

NOTE: As of May 3rd, 2015 there are no criminal charges on the court website. Johnson may have had a lawyer write up charges but it’s doubtful he would spend the money to file them.

Recovery Team Reaction

These are bullying and intimidation tactics. Former developer Johnson knows full well that the money was used to pay workers wages and operating expenses of an unprofitable farm. What does this say about him, that this swindler who defrauded a group of international investors of $10 million would use the cops to intimidate his former employees, the very men he, just a few hours before, terrorized with Santiago mafiosi? What does it say about Jerry Folta who bankrolled Johnson? And what does it say about Chile?

Regarding Johnson’s reoccupation, Cathy Cuthbert writes:

“The second Johnson Reign of Terror begins, *yawn*. At least we don’t have to worry any more about Diego and Renzo being knifed in the middle of the night.”

“We were well aware that something like this might transpire since for about four weeks, we’ve had evidence of Johnson’s goons casing the farm, and noted several amateurish attempts to gain inside information and stir up dissent among the Recovery Team.”

“While Johnson and Thornton celebrate their Pyrrhic victory, Uriah Heep-like as is their habit, we are reminded of that priceless scene from Tin Men.

The facts are these:

  1. The expenses of the unprofitable farm are off our backs. All the legal fund money will go to legal fees at this very important juncture.
  2. The harvest season is essentially over so there’s no income now, anyway. This is the least profitable time of year and excellent timing for us.
  3. Johnson’s prodigious liabilities are intact and increasing.
  4. The Recovery Team is relieved of management responsibilities, giving us more time to concentrate on the upcoming litigation.
  5. Former developer Johnson now has a golden opportunity to prove he can keep his commitments.

We achieved our goals during our tenure at the farm. We blocked former developer Johnson from misappropriating this year’s harvest income. We paid the farm workers their back pay, pension and health contributions that Johnson owed. We acquired valuable information for our criminal discovery. We’ve made friends and contacts in Curacaví. We demonstrated to the community that we are willing to pay debts. We improved the condition of the farm after years of neglect.

The most important news is that Diego, Coto and Renzo are safe. Whether they continue to work on the farm or find other positions, we thank them for their service to us and wish them well.

The most important take away from this update is that our litigation plans are not affected by this violent act. In fact, we’re better off.”

Let Johnson Meet His Obligations, for a Change

Johnson used investor money to purchase the property and received title to it in his own personal entity (Inmobiliaria Galt’s Gulch SA) and not the entity created by the originating partners to receive title (Galt’s Gulch Chile SA). He’s been responsible for paying all bills, taxes, salaries and maintenance costs of the property from the date of the sale and up to the present day. When the recovery team visited the property, last October, the place was in shambles and the recovery team took it upon themselves to bring all bills, taxes and salaries up to date and clean the place up. From the standpoint of the fraudulent legal title under which the property is currently being held, the recovery team was under no obligation to make such payments. Such remains the case, today.

Of course, Johnson’s MO is to have his cake, eat it, charge others for it, demand someone pay for a new cake and the cost to refrigerate it, refuse to acknowledge that there ever was a cake, accuse anyone within sight of having stolen five cakes, and assaulting the bakers wife! Will this translate into Johnson claiming that Mario Del Real is responsible for all GGC obligations because thief #2 (Real) stole the booty from thief #1 (Johnson)? Johnson’s recent history shows that, if one can imagine it, Johnson can do it, claim it’s the truth or accuse someone else of doing it. The least likely of all things to occur is that Johnson will keep his word to anyone or anything he’s talked about.

No Honor Among Thieves

Johnson appears to have been out-swindled by Mario Del Real who somehow ended up with a significant portion of the shares of Johnson’s personal entity and, therefore, ownership of GGC. Johnson is suing Mario Del Real regarding this transfer/sale. Though he claims to be active in the suit, records show there has been no activity on it since November of 2014.

The investors have been requesting, then demanding, that Johnson share accounting and legal documents with them for 205 days, now. Johnson has been putting them off by returning their requests with either accusations or document fragments that are available to the public. Using Jerry Folta as an intermediary, Johnson recently tried to get the recovery team to pay his accounting bill of $8000 to get access to the records the team paid for, long ago. Here’s an example of the kinds of “deals” Johnson tries to make behind the scenes with his investors: The GGC team was to pay the accountant, in full, and in return would receive an income statement and balance sheet. The full accounting detail of all transactions would then be sent to Johnson and denied to the recovery team!

Well, the GGC team did not take the “deal” as they had already gathered the documents and conducted their own painstaking forensic accounting of what has transpired. As outrageous as the “deal” offered to the team was, an important thing to note is that Johnson doesn’t even have a copy of his own books!

Johnson’s Law

The cost of filing a completed criminal complaint in Chile is ~$50,000 US. Johnson somehow managed to get one filed and But, Johnson has not filed anything with the Chilean courts, recently.  The complaint he showed up with at the GGC gates on April 20th, with two policemen in tow, was likely a prop drawn up by a lawyer (Johnson doesn’t speak Spanish).

Johnson’s “complaint” was that the farm workers were selling off his property to pay farm worker salaries and pensions. One must understand that Johnson’s priorities leave the payment of expenses such as farm worker salaries downstream of just about everything.

Cobin made a comment on a podcast in early 2014 wondering when Johnson would run out of lawyers willing to work for him as Johnson seems to have trouble paying his legal and accounting bills. That could mean his current lawyer either won’t be around for long or is expecting a form of compensation other than money.

Johnson is Probably Furious and Broke

If Johnson is the psychopath he’s widely speculated to be such predators are infuriated by exposure of their crimes and schemes. They become physically ill upon losing control to their “Inferiors” (Everyone other than themselves). One theory is that Johnson was so infuriated when the recovery team took over physical control of the property, last October, that he couldn’t stand himself until he took it back. As trivial and adolescent as this may seem to an outside observer such motivations are quite real and possible to a psychopath.

Johnson presents as positive for most items of Dr. Robert Hare’s psychopathy checklist. As such, it’s not irresponsible to use the metaphor that we are all mere projections in the twisted video game Johnson sees through his eyes that he calls his life. There’s a certain threshold of destruction and pain that can only be inflicted by those incapable of feeling empathy for their fellow man and many of those directly involved with GGC believe Johnson is there.

Ironically, Johnson’s occupation of the land is of minor importance to the recovery team. It may even give the team the ability to retain the moral high ground while letting Johnson pay “his own” bills, for a change. Any money that johnson uses to pay a bill would have come from the investors, anyway. In that sense, any bills he pays might be viewed as a form of recovery.

Johnson, like socialism, may also be running short of other people’s money, about now, and need a place to stay. Since he used investor money to pay for the property they should send him an invoice for the rent he’s now accruing by occupying the property and blocking such income to investors. His rental rate could be set at the same rates he quoted for a per-night stay at the hacienda in the sales brochures ($150 per night). Every month Johnson occupies GGC would incur rent due of $4,500 US.

Water Rights?

Johnson may have something up his sleeve in attempting to sell-off (Again) the most valuable asset of the GGC land: Water rights. Although the injunction, which blocks any sale until all legal actions against the property are resolved, is still in place, Johnson’s current lawyer has experience in the area of water rights. It’s not outside of the realm of possibility that Johnson has worked a deal with the lawyer to do this. The criminal complaint Johnson filed, that enabled him to show up at the gates with two policeman, can cost as much as $50k US to perfect. Johnson may have worked some backroom deal with the lawyer to work, pro-bono, with the promise of a share of future water rights. This is mere speculation on my part, but possible, considering what is of remaining value of El Lepe outside of free rent for Johnson.

Johnson Surfaces to Contact Wendy McElroy

Johnson “surfaced” in March to contact libertarian writer, Wendy McElroy, who purchased an option on a GGC parcel with her husband, Brad. Though Wendy is no fan of Johnson she thought perhaps talking with Johnson would facilitate some progress in negotiations without further involvement of State entities. For Johnson’s part, he’s received nothing but the bad press he deserves since Wendy’s exposé, last year. Perhaps Johnson thought he might turn that around if he could be seen as reasonable to a talented writer and GGC option owner. McElroy broached the possibility of further exchanges with Johnson to investors and I have no information about how it might have been received or if any progress was made.

No doubt Wendy’s exposé saved some number of potential new investors from losing money in GGC. She was not, however, responsible for the drop-off in GGC sales, as previously speculated. A forensic accounting of sales receipts shows a precipitous drop-off of investment money in January 2014 after Berwick stopped marketing GGC in October of 2013. So, after deals already in the pipeline were closed … sales slowed to a trickle. As described in Part 4 of this series, Berwick’s marketing efforts were the prime mover in bringing investor money into GGC. When Berwick stopped marketing, people stopped investing. Wendy’s articles exposed the reasons why Berwick stopped marketing but she did not cause him to stop. Berwick followed up the next day with an article of his own confirming Wendy’s information and adding his own take on the state of GGC and why he stopped marketing efforts.

Farm Status

The lemon trees need 50 Liters per second (LPS) to thrive and are now only receiving 1.5 LPS. Receiving so little water will greatly stress the trees and is a bad indictor for next years harvest.

The office and Hacienda were in great shape prior to Johnson’s reoccupation with pictures to prove it. In fact, it might have been about time to start renting it out for supplemental income to support the farm. Now that Johnson’s on site and blocking access to the investors, again, Johnson will most likely let the property fall back into decay. For all of Johnson’s lies the place was approaching biohazard status as the recovery team came on site, in October. We can only hope that Johnson’s hyped “Animal sanctuary” has also lost it’s credibility and more dogs won’t be dropped off to starve to death while Johnson feeds salmon filet’s to his own dog.

Litigation Pending

There are two civil suits pending from investors:

  1. Josh Kirley’s suit which questions the procedures with which “El Lepe” was purchased from Ramirez, by Johnson. The Chileans are meticulous in their paperwork and Johnson showed the wrong ID for the deed of purchase. However, he did show the correct ID (Passport) in the closing. This civil case has already been heard and is awaiting a decision.
  2. Jerry Folta’s civil suit, filed on 4/2/15, on behalf of Jerry’s entity (Jumpin’ G SpA) against Johnson’s entity, Inmobiliaria Galt’s Gulch S.A., for $450,000. Folta paid $450,000 US for the purchase of a 25 acre lemon orchard lot. It appears to me that Folta’s suit is positioned to become an uncontested judgement that will be turned into a lien against Johnson’s entity. Such a lien would put Folta in line before other investors should the company that holds the property be sold. Should Kirley’s suit start fraudulent sales to unravel Folta’s at the front of the line to block the sale or be paid off first.

I should mention that Johnson’s suit filed against Mario Del Real is about the theft of already stolen property. The first theft was performed by Johnson as he took investor money and used it to take ownership of the land in the name of his own personal entity and not the entity formed by Cobin, Eyzaguirre and Berwick with which receipt was to be taken. Therefore, Johnson’s suit against Real involves the dispute between thieves of previously stolen property.

Civil lawsuits are not issued a date to be heard in Chile. This is Chilean style justice and cases are  heard as the judge gets to them or sees fit. The general public does not know when a case “is about to be heard”, despite Johnson’s public warnings.

Folta’s Follies

Jerry Folta has been playing both sides against the middle since GGC started unraveling. He pretends to support Johnson while filing civil suits against him. When questioned, he says the other investors don’t understand what’s going on and that he’s not suing Johnson. Technically, it’s Jerry’s entity (Jumpin’ G SpA) filing against Johnson’s entity (Inmobiliaria Galt’s Gulch SA). Is that what investors don’t understand? That the civil suit is filed between entities and not people? If so, Folta’s playing word games with the investors. Folta’s contracts are convoluted, as well, with all sorts of meandering language and terms.

If Folta still supports Johnson and yet files such lawsuits against him, then they’re both playing games such as what I’ve described as a lien disguised as a civil suit. What normal business relationship involves sending invoices to each other in the form of civil lawsuits? Perhaps a relationship in cahoots to use any form of fiat they want to make things go their way: Fiat loans, invoices, liens, mortgages, and even civil lawsuits, in whatever manner they agree to use them to protect their interests. It will take more digging to unravel such alleged constructive filings, completely, and I have not done so.

Short-term Predictions

My predictions are that the same sorts of things that happened before, when Johnson was “in charge” and blocking farm access to the investors who paid for it, will happen again:

  • Johnson will make no improvements, whatsoever, to the property.
  • Johnson will conduct no maintenance, whatsoever, to the property.
  • Johnson will string along, exploit and burn any employees or creditors who didn’t learn the folly of trusting him the last time around.
  • The place will be slowly returned to biohazard status as a result of Johnson’s squatting and “living” habits.
  • No bills will be paid so the electricity, and any other utilities, will be shutoff per the policies of the local Chilean energy provider.
  • Johnson will spend his days trying to figure out how to sell-off anything of value he possibly can: Water rights being the crown jewel and trickling downwards from there.
  • Any money Johnson receives as a result of one of his sell-off schemes will go directly into his pocket and to no one else.
  • And, last but not least: Even Jerry Folta will get further burned by Johnson.

When Johnson sends public updates about GGC I’ve found the best way to glean any actual truth they may contain is to invert every assertion and work from there.

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Galt’s Gulch Chile, Part 5 — Feedback from the GGC Recovery Team

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Last week, a GGC investor working with the Recovery Team sent me an e-mail with feedback on the four articles I’d written about the Galt’s Gulch Chile land development deal. Though I’d sent the first two articles to John Cobin and Wendy McElroy, this was the first correspondence I’d had with someone directly involved with the deal. The first four articles were written from what could be gleaned from all public documents, radio shows, forums, facebook, articles and their comment sections. Part 5 brings the series current with new information and feedback from those involved. My hope is that such provides a bridge to future articles that may be of more direct assistance to real-time recovery efforts. To that end, this will be the last article that refers to Cobin/Ezyaguirre, in any significant way, as their initiating role has already been addressed and they were cut out of the deal early in the development.

As you read the exchange (And any article in the series) keep in mind that the actions of those involved are either good, fine, questionable, wrong, or illegal. Much of the last three categories can only be decided, in retrospect. The legalities depend on “the law” of one’s vantage point: Natural, Chilean or US. My opinion is that most all of Johnson’s actions were wrong from the standpoint of natural law as I see nothing indicating he ever intended to keep his promises to those involved. The Recovery Team would prefer to remain diligent and prudent in refraining from making legal judgements without supporting evidence.

Recovery Team: Part I: It is not clear that the project had enough water for the development as Cobin advertised. As you know, it’s a dry climate, and scope of the project was large. However, another huge problem was that it is all environmentally protected. I have been told that the gov’t will allow only 12 parcels to be carved out of it.

Terence: Yes, Cobin’s water estimates could only be realized if all the wells were cleared, consolidated and inscribed to the property. Cobin said he and Eyzaguirre could do it (Restated by Cobin on his radio show during Berwick’s apology episode) and such was to be a crucial part of their contribution to the deal. Everything I’ve read indicates Johnson and Berwick cut ties with Cobin before the property was purchased. Johnson’s accusations against Cobin, or anyone else, for that matter, hold no weight because of Johnson’s clear pattern of accusing others of his own failures.

I hadn’t read that environmental concerns were tied in with the inability to zone the land, properly. If so, overcoming this obstacle would be as crucial to the project as consolidating the water rights.

Recovery Team: Also, I think you said–or maybe implied–that Cobin/Eyzaguirre somehow put money into the project. Other than pocket money, maybe, you are mistaken.

Terence: I see Cobin’s contribution as significant but non-monetary. He had the vision, chose the location and got the project rolling by involving Berwick to attract capital. This is what enabled Berwick and Johnson, neither of whom had stepped foot in Chile prior to flying down to meet Cobin, to connect with a large development deal within hours of their arrival.

Recovery Team: I doubt that Del Real and Johnson lived together. At one point early in their business (if you could call it that) relationship, Del Real bought office furniture, put it at the farm office and he and his daughter were working there. I’ll double check on that.

Terence: Berwick made this comment when talking with Cobin on his radio show. Since Johnson’s “sale” of GGC stock to M. Del Real and his daughter, Pamela, is important to the recovery, perhaps their living and working arrangements are worth knowing about.

Recovery Team: You imply throughout that Cobin/Eyzaguirre were necessary to the success of the project, but I doubt it. I have not met either person, but I have heard Cobin on the internet and have seen his astronomical consulting fees. Why Berwick/Johnson would agree to the equivalent of a finders fee of 25% for that property that can’t be developed is beyond me. Further, see attached the ridiculous marketing material that Cobin spearheaded. This wreaks of scam–$1M revenue per year for fish? Selling electricity? Selling water??? Too bad they didn’t continue on this vein, I would have been spared my losses since I wouldn’t touch the project with a ten foot pole with Cobin and his spin involved.

I am sure that had Johnson not been Johnson, he would have been able to find someone in Chile to develop the project. Cobin/Eyzaguirre were never necessary.

Terence: It appears Johnson did only enough “work” to muddy the waters for his cons and overpriced Chilean side-deals. Cobin/Berwick say the finders fee and GGC sales percentage was based on Cobin finding the land, creating the deal, negotiating the price of the first property, El Penon, to be $270/acre, and consolidating and inscribing the water rights. However, what Berwick and Cobin promised each other is between them. Nothing I’ve seen ties Berwick’s promise to Cobin to the GGC investors who probably never set eyes on Cobin’s business plan. Aside from his optimistic estimates the significant part of the document, for me, is that it shows that Cobin was fooled by Johnson’s persona, as well. It also shows that he had no idea that Berwick and Johnson would shortly cut him completely out of the deal.

Recovery Team: Part IV: Johnson lived off us for 2 years, not 3–from sept 2012 to sep 2014.

Terence: Very glad to hear that! I’ll update the article.

Recovery Team: The biggest hole in your articles is that you don’t even touch on the real story. This is NOT a purely gringo on gringo scam. Johnson could not have done what he did were it not for willing accomplices in Chile. There is a string of crooked notaries and lawyers enabling his illegal activities. Further, the Chileans, being good scammers themselves, sniffed Johnson out and then scammed him. Our problems now are that the overt scam artist, Mario Del Real, took control of the company and will not give it back, and that the seller, Guillermo Ramirez, appears to have 1. gouged Johnson on the price of the property, 2. misrepresented the water situation, and 3. may have been in partnership with Johnson in running up huge late fees. Johnson was never able to pay any but the first payment on the land on time. One document I have says that $1.14M in late fees were paid.

Terence: Wow! I stayed out of all the swaps (Sales?) and side-deals referred to in the “Kerfuffle” document to focus on the overall story and the gringos, first. I certainly understand that, from the GGC investors point of view, these are the most important aspects of the current recovery.

Recovery Team: Further, the whole time that one would think that Johnson would be very busy with obtaining the proper permits, managing the development and farm, as well as overseeing marketing and sales, he was looking for other “great deals” in Chile. That’s how he was scammed with the Rio Colorado deal. He also pursued buying water in Patagonia (?), and various bitcoin projects–he stole $100k from one of our investors with a bitcoin deal. He even put bids on a neighboring property and tried to negotiate a sort of lease-option arrangement with other neighbors. To the bitter end, he was sending emails telling us about how he was going to build a large solar greenhouse. Yet during all that time, the permits to subdivide the property were getting nowhere, the farm was deteriorating, and employees and vendors were being stiffed.

No vat tax was ever paid by Johnson for the sale of the lemons harvested and sold on the property. Last week, we finally had a visit from SII. Why couldn’t they have shown up when Johnson was stiffing them?

Terence: Whew! What a tangled mess. How intriguing that Johnson, himself, might have been scammed while he was using GGC investor money to protect himself from GGC investors. Unfortunately, lying to the bitter end is another characteristic of psychopathic behavior. For those who haven’t yet watched the documentary, “I, Psychopath” it’s worth the time:

I noticed Mario Del Real is described as having previously worked for the Chilean IRS (SII). Perhaps there’s a connection between his expertise and the timing of SII’s visit? Either way, bad timing all around.

Recovery Team: I have a descriptive timeline I’ve been working on. It definitely needs more work, but I’m supplying documents with nearly every entry. I’m also working on a financial timeline with documentation. I’m waiting for more accounting information to finish these.

Terence: I can’t think of anything more important to recovery efforts than such a timeline and the documents that go along with it. I’ll update the timeline in Part one with anything you can pass along.

Recovery Team: Btw, Jerry Foltas posts on the GGC webpage are not correct. I’ve caught him several times in contradictions. His only response to me is that I’m not reliable. yeah, right. I provide documents for everything I say, and I am trying to be especially careful to make no accusations. I try simply to present the documents and let them speak for themselves.

Terence: As an outside reader I can barely get through Folta’s “Newsletters”. I thought him a Johnson created sock-puppet prior to reading that the team had met with an actual person of the same name outside the GGC office. While reading Jerry’s “Newsletters” my theory was that he had taken advantage of the absence of a shareholders agreement (Which would have given a Right of First Refusal of IGGSA shares to all investors) and coaxed GGC shares out of Johnson in order to gain control of GGC. This would be “playing both sides against the middle”. A more tragic reality for Folta would be if, having lost his initial investment, Johnson scammed him again and Folta lost more money in return for GGC shares that were not Johnson’s to sell.

Where’s the Libertarian Media?

What’s with the absence of Libertarian commentary on Galt’s Gulch Chile? Even the Libertarians that spoke at the GGC Fall or Spring event held on GGC grounds in Chile seem to have little to nothing to say. The Recovery Team knows that the attendance of these libertarians was never an endorsement and that they had no access to information that would enable them to vett or endorse the project. It would be nice, however, to hear more from Ben Swann, John Tolley, Bob Murphy, Luke Rudowski, and others that actually set foot on the grounds.

Note: All articles on McGillespie.Com may be reposted in full, or in part, per Creative Commons license “By” and “Share-alike”.

Regarding Investors

I didn’t say much about the Founders or the investors in my first four articles because I didn’t know anything about them. As of today I do know this: The Founders had no idea what Johnson was doing. It’s beginning to appear that Johnson used Founder money to hire lawyers to protect himself against the Founders, themselves. They were confused with Berwick’s incompetence, and Johnson’s series of thefts and counter accusations, until mid-2014. They probably thought disagreements between Berwick and Johnson were that of typical partners, each with 50% ownership but neither with majority control. In fact, even today, it’s a tough forensic task to piece together the timeline and documents Johnson withheld from investors to the end.

Prior to his investment, Josh Kirley (One of the first investors) hired a Chilean law firm and offered them an additional bonus, above and beyond their hourly rate, if they could come up with any reason to not move forward with his investment into GGC. When they came up with nothing Kirley followed up with a background check of Johnson and still, no red flags appeared. Onlookers may protest that any number of items on some personal due diligence list were not covered but Kirley’s first two efforts at protecting his investment were quite bold. Contrary to popular understanding, lawyers are trained to find fault with, not enable, contracts and deals. And yet, they came up with nothing.

I’d also point out that the sophistication level of those who were fooled by Johnson’s psychopathic behavior is rising with every stone of this story unturned. Cobin’s business plan even documented Johnson’s many possible contributions to GGC as if they were additional selling points of GGC. It would be a mistake, therefore, for readers to believe that such behavior will be obvious should it be encountered, personally.

What’s Next?

The money and ownership trail of GGC has been greatly muddied and confused by Johnson’s complex maze of stock swaps (Sales?), director appointments, multiple bank accounts, additional overpriced purchases, missed payments, secondary entities, bitcoin theft, and suspicious penalty clauses, etc. These are the sorts of things Johnson was “working on” while claiming to investors that he was busy developing GGC. Even today, the investors are attempting to piece together the basic financial statements and reports that Johnson had been denying them for so long. The documents they’re discovering reveal a maze of deceit rather than land development.

Money invested into GGC was always about purchasing land. There are still many reasons to hope that, if investors can’t recover money, they might recover land. It wouldn’t be a total restoration but it would restore control of what was always at the heart of the deal.

It took four articles to tell the story of what happened, why and what others may do to avoid problems like this in the future. I didn’t follow the maze of Johnson’s deals (Likely made possible by Chilean collusion) as it wasn’t relevant to those purposes. However, it most certainly is relevant to efforts to recover money or control over the land. If I can make a contribution in that area, I will. The focus now is on substantiating Johnson’s activities and the gaggle of Chilean swindlers that may have followed in his wake.

I’ll conclude Part 5 with an open message to Jeff Berwick: I’ve run across the name of the investor Berwick referred to as left homeless having lost everything on his investment into GGC. This investor is, indeed, in dire straits. If Berwick is ready to keep the promise he made on the Freedom Feens Radio Show then now (1/28/15) would be an ideal time for him to help this investor. I’m sure someone on the Recovery Team would be happy to pass along his current location. Contact them at ggc.pressrelease@gmail.com.

 

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