NEWS BLOG
Loveland, May 9, 2012

Larimer County Republican Party Chairman Mike Fassi declared a Chapter 13 bankruptcy only 5 days
after being ordered to pay $119,010 in attorney fees and court costs to the defendants in a civil case
he and his wife were pursuing against the buyers of their former business Fassi Financial Network,
LLC.  In addition, Fassi was ordered to pay $51,242 in other damages for a total of $170,252.

Fassi's wife, Terri Lynn Fassi, is the former Republican Party Treasurer who assisted with filing the
now infamous double committee campaign report resulting in hefty fines to the Larimer County
Republican Party that made nationwide news.  Last January, Michael Fassi was elected Chairman of
the Larimer GOP in a close contest with Loveland resident Tom Buchanan.  Michael Fassi served
previously as head of fund raising for the party under the chairmanship of now disgraced former
Chairman Larry Carillo who is being prosecuted for alleged embezzlement of campaign contributions.

Earlier this year, Larimer County District Court Judge Kaup
ruled against Terri Fassi and her husband
Michael in finding they misrepresented the sales figures for Fassi Financial Network LLC when
negotiating the sale of their practice.  The court also found the amount of sale was determined by
what it calls, “
inflated numbers” and therefore sided with the defendants, Darryl Boyd and Ron
Marshall in the civil matter.

Boyd and Marshall failed to continue paying Terri Fassi for the sale of the Fassi Financial Networks,
LLC due to allegations she and her husband, who helped facilitate the sale, were taking back clients
in violation of their sales agreement that contemplated a complete transfer of the business including
existing clients.  Apparently, Michael Fassi argued he did not own or sell the business that was in his
wife's name therefore free to poach existing clients from the new owners.

The court found Michael Fassi's testimony was not credible and sided with the defendants.  According
to the court decision, Fassi facilitated the negotiations for the sale of the business therefore the
buyers had a reasonable expectation that he would honor the terms of the agreement even though he
was not the signatory.  

On April 24, this year the court entered a "Order of Fees and Costs" ruling ordering the Fassi's to pay
$119,010 to the defendants and buyers of Fassi Financial Networks.  The court determined that Boyd
and Marshall are owed $24,737 in actual costs related to the lawsuit and $94,273 in attorney fees
they incurred while defending the civil action brought by Terri Fassi.  In addition, the judgment already
entered for other damages is $51,242.

Five days later on April 29, both Michael and Terri Fassi declared bankruptcy listing the defendant's
company, Marshall, Boyd & Company among other debts they are now unable to pay.  They filed a
Chapter 13 bankruptcy which allows debtors to keep or renegotiate secured debts like home
mortgages and automobiles.  Unsecured loans can be wiped out using a Chapter 13 filing depending
on the court's judgement regarding the petitioner's ability to pay.

Below is the list of debtors the Fassi's are seeking relief from the court to halt any outstanding debt
collections;

MARSHALL, BOYD & CO, LLC
C/O STEWART OLIVE
MARCH, OLIVE & PHARRIS, LLC
110 E. OAK STREET, SUITE 200
FORT COLLINS, CO 80525

1ST NATIONAL
P.O. BOX 3803
OMAHA, NE 68103

BARCLAY'S/FRONTIER
P.O. BOX 13337
PHILADELPHIA, PA 19101-3337

CHASE
P.O. BOX 94014
PALATINE, IL 60094

CITIGROUP
PROCESSING CENTER
DES MOINES, IA 50363

COMMERCE BANK
P.O. BOX 806000
KANSAS CITY, MO 64180

DAN SILVA, LLC
3333 WILD VIEW
FORT COLLINS, CO 80528

DEPT. OF EDUCATION
P.O. BOX 530229
ATLANTA, GA 30353-0229

FISCHER & FISCHER
125 S. HOWES, SUITE 900
FORT COLLINS, CO 80521

GE CAPITAL
140 WEKIVA SPRINGS
LONGWOOD, FL 32779
HSBC

JIM SCHMEHL
219 MAGNOLIA
FORT COLLINS, CO 80521

MIKE & KATHRYN STEVENS
C/O PATRICK SINGER, ESQ.
5619 DTC PARKWAY, SUITE 1200
GREENWOOD VILLAGE, CO 80111

SEARS
P.O. BOX 6282
SIOUX FALLS, SD 57117-5282
LovelandPolitics
Loveland's Independent News Source
GOP Chair Declares
Bankruptcy To Avoid Paying
$170,252 Civil Judgement
Michael Fassi is the husband
and business partner of the
former Larimer County
Republican Party treasurer,
Terri Fassi.  Terri served for a
short period of time as party
Treasurer under former
Chairman
Larry Carillo.

Reference Documents

1. Fassi Bankruptcy Petition

2.  Amended Filing of Fact

3.  Order of Fees and Costs

4.  District Court Ruling
Michael Fassi
Larimer County Republican
Party Chairman
Chapter 13 Bankruptcy
Advantages
As Described by
United States Federal Courts


"Chapter 13 offers individuals
a number of advantages over
liquidation under chapter 7.
Perhaps most significantly,
chapter 13 offers individuals
an opportunity to save their
homes from foreclosure. By
filing under this chapter,
individuals can stop
foreclosure proceedings and
may cure delinquent mortgage
payments over time.
Nevertheless, they must still
make all mortgage payments
that come due during the
chapter 13 plan on time.
Another advantage of chapter
13 is that it allows individuals
to reschedule secured debts
(other than a mortgage for
their primary residence) and
extend them over the life of the
chapter 13 plan. Doing this
may lower the payments.
Chapter 13 also has a special
provision that protects third
parties who are liable with the
debtor on "consumer debts."
This provision may protect
co-signers. Finally, chapter 13
acts like a consolidation loan
under which the individual
makes the plan payments to a
chapter 13 trustee who then
distributes payments to
creditors. Individuals will have
no direct contact with creditors
while under chapter 13
protection."