Head of Wespac Trust That Lost $2.3 Million Resigns

Wespac Financial Corp. of Newport Beach will go ahead with previously announced plans to cover the nearly $2.3 million in investment losses incurred by Wespac Investors Trust II, a real estate investment trust it sponsors.

In a statement Friday, Wespac II also said that its trustee, Jerry D. Stiles, has resigned. Real estate attorney Robert P. Kaufman, of Phoenix, was appointed to fill the post.

Kaufman said in a telephone interview that he did not know the reason for Stiles’ resignation. Wespac II’s statement referred all inquiries to Wespac Financial, but officials there did not return phone calls from The Times.

Stiles could not be reached for comment Friday.

In addition to the $2.3 million, Wespac II said its sponsor will put up $1.6 million to cover interest that would have been earned on the investments. The losses involved investments in mortgage-backed government bonds that Wespac II said it had made through an “unaffiliated” securities broker, which the trust did not identify.