Ex-Customers Sue Real Estate Financier Over Investments

An Agoura Hills real estate financier, already under a Ventura County Sheriff’s Department investigation because of allegations that he embezzled customers’ funds, now faces three civil lawsuits filed by clients who alleged that he owes them more than $50,000.

Olen B. Phillips, who heads Phillips Financial Group and who sold real estate limited partnerships under the Westoaks Investment name, was sued last week in Ventura County Superior Court.

The suits were filed by Thomas and Gladys Grant of Westlake Village, Roger and Evelyn Garretson of Agoura and C.H. Humphrey Jr. of Thousand Oaks. They are asking for repayment of their investment, plus unspecified punitive damages. All have the same lawyer, Donald L. Leach of Thousand Oaks.

The suits contain generally the same allegations--that the customers loaned money to Westoaks for investing in real estate, but that Phillips stopped paying monthly interest on their loans as required. The suits also alleged that Phillips failed to secure their loans, as promised, by filing trust deeds on property owned by Westoaks.

Phillips did not return telephone calls requesting comment on the suits.

In their suits, the Grants said they invested $25,000 with Phillips, while Humphrey and the Garretsons said they invested $19,763 and $9,000, respectively. All claim they are owed that money plus interest allegedly agreed to by Phillips; the loans carried interest rates ranging from 10% to 12.75%, according to the suits.

In November, the Ventura County Sheriff’s Department seized thousands of documents from Phillips Financial as part of its investigation into Phillips’ business. The department said some customers alleged that Phillips had refused to account for millions of dollars he had accepted from investors while continuing to solicit more funds and that interest checks he sent to some clients had bounced.

Phillips has not been charged with any crime, and no one has been arrested in connection with the inquiry.