Accused couple seeks bankruptcy

Tony and Alicia Napier, accused of equity skimming earlier this year by the state of Washington, have filed for bankruptcy.

The Colfax couple says their assets are less than $500,000, their liabilities between $500,000 and $1 million. Little else is included in the Chapter 13 wage-earner filing made last week in U.S. Bankruptcy Court in Spokane.

But this will be the third time in bankruptcy for the Napiers since 2001, when they were involved in an equity-skimming scheme that earned Tony Napier a one-year jail sentence.

In a related civil action, he was prohibited from any further equity skimming, or any real estate transactions tainted by deception or violation of Washington consumer protection laws.

While that litigation proceeded, Tony Napier filed a Chapter 7 liquidation bankruptcy in July 2001. The case was closed with no distribution of assets to creditors.

Principal Direct Investments LLC, formed by Tony Napier, renewed his equity-skimming ways, according to a complaint filed by the state Attorney General’s Office in Spokane County Superior Court in January. Distressed homeowners turned their properties over to PDI with the expectation the company would make the mortgage payments while they continued to occupy their homes.

The state alleges the Napiers pocketed the rents, defaulted on the payments, and also failed to pay investors who had put up money to buy the properties.

PDI filed bankruptcy in July 2008. Most of the properties have since been handed over to creditors.

Meanwhile, Judge Sam Cozza Friday granted a state motion to compel Tony Napier to provide more information in response to discovery requests. Alicia Napier was found in contempt for failing to comply with an earlier court order she provide further responses to an earlier state discovery request.