A cesspool of an enterprise: All borrowers who didn't get the money they were promised by Mortgages Ltd. have rights now as creditors of the estate, and they have been damaged by all of Scott Coles' lies and attempts to defraud them ("The Rise and Fall of Scott Coles," John Dickerson, August 6) — as do the citizens of Tempe, Phoenix, and Glendale, who now have to deal with all these unfinished projects in their cities.
This entire enterprise is a cesspool, from the bottom up and from the top down, and the only way anyone will ever know what really happened is to open the doors and let the fresh air of a court-appointed trustee into the room.
The big war is coming between the investors groups and creditors and the insiders, who are still trying to milk the last remaining ounces of fat off this bloated pig.
I say liquidate the entire damn thing now and pray to God you get back maybe 20 cents on the dollar.
Mike Walder, Tempe
A sad day in history: I have been a Mortgages Ltd. investor since 1984, and I am sad to say that it seems Scott turned this company into a giant fraud and Ponzi scheme to make money to support his extravagant lifestyle while all the investors were left out in the cold.
If even 10 percent of what has been said is true, this company will be shut down for good, and we are going to get next to nothing back.
A trustee must be appointed here because there is just too much evidence of wrongdoing and continued scamming by insiders.
This is a sad day in the history of the Coles family and the state of Arizona. It looks like this will be the scam that everyone will now compare future scams to, much like the Baptist Foundation.
Good job, Scott. You surpassed even your own desire to be a big shot. You will now live in infamy forever as a stain on the record books of one of Arizona's greatest financial debacles.
Brian Fuller, Tempe
Sickening cover illustration: The tuxedo on New Times' cover with the [headline] "The Rise and Fall of Scott Coles" was completely tasteless. I didn't personally know Scott Coles or his family, but I couldn't help feeling sick to my stomach when I saw your cover. Congrats.
Todd Stevens, Scottsdale
Throwing good money after bad: Mortgages Ltd. is now liable for money it promised but could never deliver. If there is evidence that this whole operation was a big Ponzi scheme, then the company is pretty much a total loss.
It seems most of the loans were bad loans, and the ones that were still good were good only because Coles fed them with additional interest reserve to feed himself fees and line his own pockets. This while hiding the problems so no one would know how many loans were truly bad.
Doing this, he threw even more good money after bad. Now you have projects that have even more debt than value on them. This is a disaster for all involved.
Just look at Centerpoint. What a worthless piece of shit that project is, with $130 million of debt. It still needs another $75 million to finish. Then it would sell box condo units in the middle of Tempe to people who couldn't qualify for loans if their very lives depended on it. What a complete and total joke!
RightPath should settle with Mortgages Ltd.: I have been a Mortgages Ltd. direct investor for four years, and I had excellent returns (averaging 10 percent) until July 1, 2008. Mortgages Ltd. is not a Ponzi scheme. A Ponzi scheme entails abnormally high rates of return (like 20 percent) and a promise for the return in a short period of time.
M.L.'s assets outweigh its liabilities, and if everyone would be patient and stop the courtroom fighting, we could all get our money back in 18 to 24 months.
Why doesn't RightPath settle with M.L. and go get the remainder of its money elsewhere? That sounds like a simple solution that would work. But, instead, RightPath wants to use litigation and big lawyers to avoid having to pay its debt.
The jury is still out on Scott Coles: There are two glaring inaccuracies in this story. First, Scott didn't throw the Super Bowl party. Scott rented his property to the Hollyrod Foundation for the week. Everything that happened that week was orchestrated by the Hollyrod Foundation and its vendors, which included the private party coordinator, called the Opium Group.
The Hollyrod foundation is run by Holly Robinson and Rodney Peete. Scott did not even know how big a deal it was going to be until a couple of weeks prior to the event. All the money paid for the use of the land during that week was donated to Scott's charities.