KHQ EXCLUSIVE: Feds Investigate Local Developer - Spokane, North Idaho News & Weather KHQ.com

KHQ EXCLUSIVE: Feds Investigate Local Developer

Written By: Shelley Fontaine, KHQ Reporter

SPOKANE, Wash. - KHQ has uncovered court documents alleging two local developers may be in the hot seat with the federal government. On Monday April 4th Washington Trust Bank (WTB) filed a lawsuit against Cougar Palouse LLC and its managers Gregory and Kimberly Jeffreys. The suit claims the parties owe WTB more than $1.2 million plus interest for a loan. In the suit it states "Cougar leased certain real property to the United States of America." The terms of the lease required the government to pay Cougar more than $1.8 million after tenant improvements were made.

The suit claims that on February 3, 2011 the government transferred the money to the Cougar's account at Sterling Savings Bank and that the Jeffreys' acknowledged they received it but did not inform WTB of the action. From there it alleges the Jeffreys "stated to WTB numerous times after February 3, 2011, in telephone calls and text messages that they had not received any funds", and that "there was a processing error preventing the government's payment." The suit claims despite demands, that Cougar "has failed and/or refused to return the funds transferred by the government" and is a breach of contract.

KHQ left a voice message on Gregory Jeffreys' phone for comment, but has not heard back.

Sources close to KHQ said they last heard from G. Jeffreys during a conference call last week and suspect he may have left town to try and get the money back.  

On Wednesday afternoon KHQ spoke with Gordon Budke, of Budke Consulting, who said "we're as surprised as anyone" when learning of the suit. Budke said it's likely he will officially become manager of Cougar Palouse LLC, but will learn more at a hearing scheduled for April 29th. Budke and Jeffreys are connected through their work on the government property alluded to in the suit. Budke represents Campus Group LLC. The building is the Spokane Military Entrance Processing Station (MEPS) on the West Plains in Airway Heights.

G. Jeffreys has also been reportedly linked to Poachers Rock LLC, where published documents show he was a partner in buying the executive court portion of the former Ridpath Hotel. He has also been reportedly linked to a company called Sundevil Investments LLC.  According to a 2010 report in The Spokesman-Review, there was a lawsuit filed against both Jeffreys by a group of California investors. They alleged the Jeffreys used inflated appraisals to get investors for certain Airway Heights property.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Dog missing after fatal Spokane Valley crash has been found

    Dog missing after fatal Spokane Valley crash has been found

    Thursday, July 19 2018 1:19 PM EDT2018-07-19 17:19:32 GMT

    SPOKANE VALLEY, Wash. - UPDATE: Pamela called KHQ this morning to let us know her beloved dog Pearl has been found after our story aired Wednesday night. She tells us she's going to pick Pearl up from SCRAPS Thursday.

    >>

    SPOKANE VALLEY, Wash. - UPDATE: Pamela called KHQ this morning to let us know her beloved dog Pearl has been found after our story aired Wednesday night. She tells us she's going to pick Pearl up from SCRAPS Thursday.

    >>
  • Health advisory issued for Fernan Lake

    Health advisory issued for Fernan Lake

    Wednesday, July 18 2018 7:25 PM EDT2018-07-18 23:25:34 GMT
    Panhandle Health DistrictPanhandle Health District

    KOOTENAI COUNTY, Idaho - Panhandle Health District (PHD) and the Idaho Department of Environmental Quality (DEQ) have issued a health advisory for Fernan Lake. PHD is urging the public to use caution when recreating in or near the water. Water quality monitoring confirmed the presence of cyanobacteria, commonly known as blue-green algae. Blue-green algal blooms have the potential to produce dangerous toxins in areas of the lake. 

    >>

    KOOTENAI COUNTY, Idaho - Panhandle Health District (PHD) and the Idaho Department of Environmental Quality (DEQ) have issued a health advisory for Fernan Lake. PHD is urging the public to use caution when recreating in or near the water. Water quality monitoring confirmed the presence of cyanobacteria, commonly known as blue-green algae. Blue-green algal blooms have the potential to produce dangerous toxins in areas of the lake. 

    >>
  • Hayden man arrested for hate crime following fight with youth pastor

    Hayden man arrested for hate crime following fight with youth pastor

    Thursday, July 19 2018 4:33 PM EDT2018-07-19 20:33:15 GMT

    COEUR D'ALENE, Idaho - On July 12, officers responded to a large fight at a Coeur d'Alene McDonald's. Court documents say a Hayden man was charged with battery and malicious harassment, which is considered a hate crime in Idaho, following an investigation by police.  When officers arrived on scene, the fight had broken up, but witnesses were interviewed at the scene.

    >>

    COEUR D'ALENE, Idaho - On July 12, officers responded to a large fight at a Coeur d'Alene McDonald's. Court documents say a Hayden man was charged with battery and malicious harassment, which is considered a hate crime in Idaho, following an investigation by police.  When officers arrived on scene, the fight had broken up, but witnesses were interviewed at the scene.

    >>
HD DOPPLER 6i
/