THOUSAND OAKS : Phillips’ Holdings Will Remain Frozen

A Los Angeles attorney will remain in charge of the holdings of Thousand Oaks real estate financier Olen B. Phillips, despite the businessman’s efforts to regain the seized funds, a Los Angeles Superior Court judge has ruled.

But Judge John Zebrowski authorized the attorney, Richard Weissman, to release up to $50,000 in United Airlines stock and other holdings if the businessman can prove that he acquired the assets with his private funds, and not the money of investors.

Weissman and Phillips’ attorney, Richard M. Hoefflin, said they will meet to discuss the issue.

Meanwhile, Weissman will continue auditing Phillips’ holdings--estimated in the millions of dollars--which the court has frozen while considering a state request that the assets be liquidated and divided among investors.

Hoefflin had asked the judge to wait until May 30 before acting on his motion to remove Weissman as the receiver, thus placing the funds back in Phillips’ hands. Hoefflin had argued that he needed extra time to prepare the case.

But Zebrowski said he decided to take action Friday because there was no need to wait any longer. “It does not do anyone any good to keep things in limbo,” Zebrowski said.

Nevertheless, Hoefflin said he will continue seeking the funds.

Last month, the assets of Phillips, subject of an investigation into one of the largest alleged fraud schemes in Ventura County history, were ordered seized by Zebrowski and placed under the authority of Weissman.

Attorneys for the California Department of Corporations requested the court action because they said Phillips defrauded investors in real estate holdings he controlled.

He has not been charged with any crime despite the fraud investigations that are continuing at state, county and federal levels.