"I mean, they certainly know who I am, you know, and regard me in a favorable way," says Unkefer, one of XanGo's top earners whose LinkedIn account describes him as an "independent distributor" at XanGo.

Clark's lawyer, John Jakubczyk, asks about one of several companies tied to Unkefer, GBSLU Inc., and Unkefer says he's not sure he's heard of it.

"Well, you're the president of it," Jakubczyk answers.

The prison mugshot of Sherman Unkefer
The prison mugshot of Sherman Unkefer

Unkefer's interrogation by Jakubczyk almost doesn't seem fair, because Jakubczyk and Clark knew, when Unkefer signed the Republic operating agreement in 2009, that his involvement in the gold company was mired in a maze of suspicious corporations and trusts.

Unkefer says Hall, as trustee of Mango Trust, had the Mango-owned X-1 company send him money specifically for the Republic investment. That, Unkefer contends, meant the money came from ORG, which also is owned by the trust.

But Jakubczyk uncovered a key discrepancy. When Unkefer signed the July 2009 operating agreement, he wrote that he was manager of Occidental Management, the parent company to ORG. But at the time, he wasn't.

"Apparently, [the manager of Occidental Management] had been changed a few days before that," Unkefer says.

"It actually had been changed back in April," Jakubczyk tells him during the deposition.


Jim Clark had been fooled — in one aspect of the deal, anyway.

But whether this information about the switch in managers would have changed Clark's deal with Unkefer over Republic can't be known.

Clark went into business with ORG, not Unkefer, according to the initial corporate filing for Republic Monetary filed with the state of Arizona.

Clark did make one sizable payout to Unkefer and/or ORG, both sides agree.

In early 2010, the CEO took Unkefer aside at Republic and handed him 32 gold coins (each was an ounce and worth about $1,100 at the time), saying, "This is a dividend."

Unkefer says he took the coins to Teeple Hall, to be deposited in bank account owned by Mango Trust. He says he made it clear to Clark that he expected more dividends if ORG incurred a tax liability.

Then, when ORG received a tax bill that year, it got Unkefer's attention. About the same time, Unkefer says, the trustees heard about improper accounting procedures at Republic — suggesting that the company had more money than Clark was saying and, therefore, should have made profit distributions to ORG.

Other case documents show that, in the months following Unkefer's August 2011 testimony, Teeple Hall stepped up demands for Republic's financial info and felt the demands were getting stonewalled.

But Clark and Jakubczyk viewed the demands as invasive.

An October 2011 motion by Clark's side states that ORG's lawsuit was really "a tactical attempt to engage in a fishing expedition seeking proprietary information to which [ORG] is not entitled."

A week before Unkefer's deposition, Clark amended Republic's corporate paperwork and deleted any reference to ORG's affiliation. Unkefer's initial investment of $225,000 was moved to an escrow account. That fall, Clark also used proceeds from a personal-injury lawsuit award to shore up the company's capital.

But then James D. Clark resigned from Republic and began buddying up to Unkefer and Teeple Hall, telling them about the "Jim Deals," prior to his April deposition.

Armed with the new information about the cash deals and supposedly "secret" meetings to add capital to the company, Grant Teeple told the Superior Court judge in the case, John Ditsworth, that Jim Clark was ruining the company. At Teeple's request, last March 27, Judge Ditsworth ordered that Republic be put into receivership.

Court-appointed receiver Kevin Singer showed up at Republic's office with five private security guards, telling people that Jim Clark would be removed as CEO.

An off-duty Phoenix police officer Republic employed as a guard told Singer and other guards that no one could enter the vault until Jim Clark showed up.

The CEO and his lawyer hightailed it to the office, called the judge, and persuaded him to quash the receivership the next day.

Teeple had a "laundry list" of grievances based on James D. Clark's assertions, Jim Clark says, adding that they weren't true.

The elder Clark admits that some "Jim Deals" took place, but he says they were minor and that he had declared them on his income-tax forms.

His son's testimony on the amounts were "absolutely and totally false," he tells New Times.

"Sherman offered James the [chief operating officer] position," Clark says. "He had motives. He buddied up with Sherman and those guys to steal the company."

James D. Clark, who founded a Valley oil-and-gas company called Core Resource Management following his resignation from Republic, denies that Unkefer offered him anything. He says he stands by his deposition testimony.

Jim Clark sued Core Resource last month, accusing his son of stealing some of Republic's client information.

The younger Clark called his dad's accusation "completely false."

The Republic CEO paints himself as a victim in the lawsuit with Unkefer, saying his company's accounting records were shown to be in order by a later independent review.

Recently, after more than a year of fighting, Unkefer and Teeple Hall agreed to settle with Clark and Republic. Neither side would reveal terms. But Jakubczyk says ORG essentially has been bought out of the company and that ORG and Unkefer no longer are part of Republic Monetary Exchange. Jakubczyk says ORG agreed in the settlement that it was never a part of Republic.

« Previous Page
Next Page »
My Voice Nation Help

I knew the Unkefers back in their Pre Paid Legal days.  Smooth talker, that Unkefer.  His wife Sharon was a jewel.  It makes me sick to my stomach to realize he was hiding behind her all along.  She was a hard worker, worked her fingers to the bone for that man.  I know for a fact that her four sons were her top priority and she would do anything for them. If she knew what was going on now... that her "beloved" husband was screwing over her four sons and her grandchildren, AND that he is literally screwing his first born son's wife, the mother of his own grandchildren, who was also the Unkefer's secretary... Oh my God.  This man is the scum of the earth. The BIGGEST hypocrite of them all. Go get him, Davidsons! 


I would like to bone that whore Laudry


I think a guy who didles his sons ex wife has got to be a real sleazeball.


I've worked in law firms for 24 years and this kind of crap happens ALL THE TIME!!!  I don't mind when the "job creators" do this stuff to each other, but when they hurt other people who aren't "job creators" I think they should be held against a wall and each of their victims should get to knee them in the balls.  There's a State of Arizona Bar Association board which deals with regulation of the lawyers - lawyers who are supposed to tell their clients when something is illegal - and that board doesn't seem to be getting the point across to the attorneys in this case that they're going to be held responsible for their inaction and even aiding the commission of white collar crimes.  



@fairymagic13 This kind of shit started once that Kenyan took office. No leadership at the top....

Phoenix Concert Tickets