Starlite Houseboats

The rise and fall of Starlite Houseboats, lies, fraud and deceit.

Roger started Starlite houseboats nearly 9 years ago; He had a simple idea, Build quality houseboats and reasonable price. Since he did not own a factory, he contacted with a manufacture to build his boats with his brand name "Starlite" with low over head Roger became very successful selling the Starlite brand. Then a few years ago he decided to build his own houseboats factory with James as his factory manager. Roger formed the company Starlite Houseboats Inc. In a very short time they ran up huge debt. The cost of building the boats were much higher than they could sell them for. Roger could not understand this, since he was purchasing the boats from a manufacture before for way below what James could build them for now. Soon they were taking out construction loans for more than we selling the boats for. This was not a problem since Roger had a friend at the Denison Sate Bank ( Dennis Hadley) But the debt continued to increase , now they need to take deposits for boats to have money to complete previous orders. Again this was not a problem Dennis Hadley blindly gave Roger Construction loans for boat with out verifying buyers or the cost to build the boat vs the value of the boat. I ordered a boat, with $235,000 down , the boat sale price was about $329,00O after shipping and commissions. After the boat was complete Roger would receive another $94,000 for the boat. However, Dennis Handley over at Dennison State Bank gave Roger a construction loan to build this boat $360,000. Almost $250,000 more than Roger would get back on the boat. Common sense would tell you no leader would very loan three times the return Also most lenders pay as the boat is built, but lucky for Starlite had their good friend Dennis Hadley who would just send them checks at their request. Not even verifying that the boat was being built and loaning over 100% of value even thought the boat was less than 25% complete. I would call James at the factory each week and ask him about my boat; James would always reassure me that the boat would be complete soon. Never telling me that they had no money left, that venders were calling him trying to get paid. Even coming to the factory and tanking back parts. Mean while I was paying over $2,000 per month on slips for boats that would never come.. During the same time, they ask a couple for $25,000 to start their boat. Again this went to previous debt . They never started their boat. During this time, the factory is closing Now Starlite has 7 boats under construction. All most all are less that 50% complete. However, Dennis Hadley had loaned them over 100% of the value on most of the boats, Over 2 million dollars. Boats were worth less then $600,000 In January 2009 Dennis Hadley finally realizes that Roger were in trouble. At this time, I am trying to find out what is happening to the boat I was waiting for the last 8 months. I would call Factory , and would just tell me lies, that's if they picked up the phone. I finally got a hold of Diane Coffman the accountant for Starlite and arrange a meeting with all parties, James, Dennis Hadley, Diane Coffman, Roger , Larry M. and Marie. Dennis Hadley started off the meeting with who wants to own a houseboat business. During this meeting Dennis pushed James, Marie and I to take over the business since Starlite Houseboats Inc was insolvent. He suggested we start new LLC and finish his boats. During the meeting Dennis refused to disclose the dept on the boats. I ask Roger about the lien he had given me on a boat 7 months earlier. This was to secure them money I had sent him for a boat. Dennis Hadley says he now had possession of the MSO, but he had no liens on the boat. He stood up and told me if we got his boats built he would release the MSO so I could get paid, then shook my hand. Later that week after realizing James and Roger were never going to be able to complete a boat for me because they were completely broke and the already had a $360,000 Construction loan on the boat. I accepted to take over the factory. I made back payments and paid $3000 for past utilities, signed a lease. Now I needing to help sell the boats and raise income. Marie Tucker and I spent over $40,000 to do three houseboat shows. We spent huge amount of time and effort to promote Starlite. During that time James refused to attend the international boat show, said he did not want to have to see the venders they owed. James now told venders Starlite was out of business and new company was taking over the Starlite name. Now we had set up a new company and the bank sent money to get these boats finished. In Early March Roger dies of cancer. No one wanted to be the executor of the estate. Dennis called and said he would do it, it would give him complete control. Now that Dennis had control. he only wanted to pay for labor and materials, did not want to pay for electric or cost of the factory. After all the bank was already going to lose a huge amount of money for the boats. But now I was in the way, he need to get rid of me, If he could get the boats complete and not have to pay factory costs he could hopefully save his own ass. So he started to pay venders directly, and instructed James to pay everyone cash. James agreed because most of the workers we collecting unemployment benefits. This also saved them money by not having to pay taxes or workmen comp. I told James over and over to stop this, but he would not. Dennis wanted me out more than ever. So he started to work directly with James to avoid me at any cost. Dennis would not send money that was owed for factory cost leaving us unable to pay the mortgage payments.

in early May I visited that factory . Now I am at the factory for three days, fixing thing around the factory, and I find out that the boat I had a lien on is being sold, he planned on selling this boat and not giving me a dime. I call Dennis Hadley, and confronted him about the lien, now he is trying to tell me that my lien is not valid. I said we shook hands and had a deal, his response, "things have changed" So my only choice is to fight it in court. Because the boat is part of an Rogers Estate Dennis Hadley need approval from the courts to sell the boat. Fortunately I had stopped by the factory, they were not going to notify me of the hearing even thought I was a creditor. The hearing was schedule in less then 7 days, I only got notice two days before the hearing. When that day arrived Denis's lawyer motioned to the court the postponed the hearing, I believe they did this because they had made up a fictitious lien and they did not think they it would get challenged. Since I was only notified a few days before the hearing they did not expect that I would have a lawyer present Both James and Dennis new about the lien, but did not disclose it to the buyer, again James just keeps quite and now the boat is tied up in court. I had to let the buyer know that their was a lien on the boat. Now the buyer has not received their boat.Now Dennis is really pissed at me, he was more determined to get me out of the picture than ever. With control over the estate Dennis and James would just pretend that I had no lease.

While at the factory I find out why James's cost is so high, more than 25% over value of the boats. James would show up for about an hour a day. Worker would come when they pleased, they promptly stop work around 2:30. Average less than 6 hours on the Job. I asked Penny where the time clock was, Penney replied" since we pay cash James does not want a record of their time. Later that day when James finally came in we walked around the factory and boats, he showed me the mistakes the workers made on the boats, saying if they did it right It would save a lot of time and cost. I wondered to myself why they were permitted to do it wrong from the start, but since James was never there to supervise, they had no one to sop them from doing it wrong. Every day I was there I could see how bad things were run. Before I left, I ask James to make sure to send me invoices of all cost, he agreed. But again just another lies and James never did. The only invoices he would send were for the electric. Furthermore, I told him he could not pay people cash., that this was illegal. But James continued to do it

A few weeks I had buyer come to the factory who wanted to buy a boat cash , again James showed up very late. Ron the buyer called me said "what is wrong with guy, he wont look me n the eyes. Later that day I got a call, telling me James and Dennis were setting up a new company. Dennis set up new account to avoid me so he could work with James. Now James and Dennis could pilfer all the assets of the factory, leaving all creditors with nothing. After Dennis Hadley finished his boats the factory will most likely be closed and that will be the end of Starlite. Leaving me out again after I spent so much on Starlite trying to save it.

Please note that Factory run my Milford McGuire In Tulsa is a good factory and a Milford is an honest person. He is also a victim of Starlite, But that is a whole other story. There is many more victims but I have no time to write about their stories now.

Dennis Hadley took over as executor of the estate of Roger; this was to get the banks money back only. It does not look like he will help anyone get paid but himself. I am not sure why the Bank would even keep him after all the bad loans he did. If Dennis Hadley would have done his job as a loan office Starlite would have gone out of business over a year earlier and all the fraud would have stopped.