Leber Balked at Repayment, Creditor Says

David Stith is active in charitable work for a local hemophiliac society.

So when he tried to do a business favor for a fellow nonprofit organization--Ward Leber and his International Missing Children’s Foundation--Stith never expected the strange turn of events that followed.

“I’d rather that Leber had been honest and said he had no intention of paying me,” said Stith, who eventually filed a suit to collect what he was owed.

Large Loan Sought

Stith owns Bell Maintenance, a small carpet company in Kearny Mesa. He was introduced to Leber early last year when Leber wanted to borrow a large sum of money, Stith said, to tide him over for three weeks until the foundation received a $100,000 inheritance from a deceased benefactor.

“It all seemed on the up and up,” Stith said. “I was somewhat impressed.”

He said Leber came to his home in April, 1987, and they discussed a $20,000 loan. Stith saw the loan as his chance to help a good cause and make a little money because Leber offered to pay 5% interest on the money each month for two months.

In other words, he said, Leber agreed to make two installments of $10,000 each and then one installment of the interest, the total to be paid by September.

A promissory note was signed by Leber on April 23, 1987. Stith said Leber returned to his home and picked up the cashier’s check.

Leber missed the first due date, July 1, Stith said. He called Leber but could not reach him. Finally, he said, Leber promised to pay him $12,000 by July 30.

Late on the night of July 23, Leber left three personal checks, each for $4,000 and each carrying different dates, on the windshield of Stith’s car, parked outside his home.

Asked about that, Leber said he had knocked on Stith’s door, but no one answered. So, Leber said, “I left them there.”

Stith said he was home that night. As it turned out, he said, a neighbor noticed the checks on the windshield and brought them over. The next morning, Stith went to the foundation’s bank. But he said the check with that day’s date could not be cashed because of insufficient funds.

Again he had problems finding Leber. Three days later, Stith filed a lawsuit to recover the money. That day, he said, Leber gave him a $3,000 cashier’s check.

On July 30, Stith said, he went back to the bank to cash the personal check written for that date. The funds again were insufficient.

“He kept saying he was working on three state grants,” Stith said. “He said that he was involved in putting together some deals.”

Stith continued to hound Leber. In September, after waiting for several hours in the foundation’s La Jolla office, Leber handed him 40 $100 bills. A week later, Leber had an envelope waiting for him with another 40 $100 bills.

In October and November, Stith said, he received a total of $2,000 in cashier’s checks. And he said he was given a $500 personal check from Jim Burks, the foundation’s treasurer.

Stith said Leber called him in February, the day after the Stith loan was discussed in a lengthy interview The Times had with Leber.

Stith said that, when Leber called him, Leber promised to repay the remaining $6,500, plus $3,500 in interest, which he did in March.

Leber said he regretted being late on the payments but that he had encountered some financial problems and was unable to pay Stith on time.

“We made every effort to pay him,” Leber said. “Unfortunately, it had to be late.”

Stith said he dropped the lawsuit after Leber made the final payment.