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October 23, 2014

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State suspends license of Aspen Financial, led by former governor’s son

The state has suspended the license of Aspen Financial Services run by Jeffrey Guinn, son of former Gov. Kenny Guinn, on grounds the Las Vegas company is “financially insolvent.”

The net worth of the company is a minus $8.6 million, and James Westrin, commissioner of the state Division of Mortgage Lending, says Aspen is “unable to continue in business.”

The company was granted a mortgage broker license in July 1995. But on March 26, a district court entered a judgment of $7.9 million against Aspen in favor of City National Bank.

Westrin said his staff started an investigation April 15 and found the company had a net worth of minus $719,180. That combined with the judgment rendered it insolvent, he said.

The suspension is effective immediately and Westrin has ordered Guinn and his company to file within seven days a report on all of its existing business.

The reports must include lending and servicing activity, property management and trust accounts.

“To protect the public,” the commissioner has ordered Aspen “to transfer the servicing of each loan in its existing portfolio to a qualified servicer."

The suspension says Aspen must return its management of real estate property owned by investors who have acquired the property through foreclosure or otherwise.

The Guinn company has 60 days to carry out these conditions but must inform investors within seven days of the suspension order.

Westrin said his office retains jurisdiction in order to take further actions if necessary. And Aspen must retain all transaction records for the past four years.

Before the 60-day deadline, Aspen shall service its existing loan portfolio, which includes two performing loans, six loans in forbearance and 11 delinquent loans. And it will manage the existing 36 real estate properties during the two months interim.

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