My name is Kurtis P. Graham. I'm have been a general contractor and real estate speculator in Seattle, Washington. I had a successful business and great life until the fateful day Greg Scott Luce entered into it. It went downhill from there. Fast. This is my story. There is only one reason for my sharing this personal account with you, and that is my sincere hope that a few "marks" that might otherwise invest with this con man will think twice. Gregg Luce turned my life on end. Please don't let him do the same to you.
I believed Gregg Scott Luce was my true friend. When I first met him I thought that his business concept, a broadband media streaming platform, was viable, even if it was grandiose in scale. As I was able to financially, I invested small amounts of money into his projects each month. These dollar amounts increased over time in amount and frequency. Over the years these small investments quickly added up to a large sum of money.
I also bent over backwards accommodating Luce as a friend: helping him move to new offices and residences, loaning him cash for computer hardware, and picking him up from the airport. I would also often foot the bill for his R&R, taking him out to bars, paying for skiing trips, and other activities to help him get away from the toil of getting his business up and running.
I truly believed Luce was a genuine friend. Over the years there were multiple snags in his business process (see linked and embedded court documents and other time table of events). I was told time and time again by Gregg that whatever was holding him and the company back was external -- that any problems had nothing to do with him or his professional contacts. He had me convinced that all he needed was a clear shot at following through with his business concept without "outside interference". Gregg would constantly rage on about "third party interferants". With time, it also became clear that his was anti-semitic, sexist and an extreme racist.
As an example of his thinking, Gregg said he wanted to move the Millennium III corporate domicile to Arizona from Washington State, because he was convinced that Washington was full of people incapable of following through on a business deal. He told me that he knew of a great piece of real estate in Flagstaff, AZ, that was owned by Ginna Ciszek, a good friend of Gregg's then-wife, Kyrra Luce (Kyrra Howden and Gregg Scott Luce are no longer married). I purchased the property for $325,000.00, with fifty-percent down and an extra $12,500 paid for furniture and the ATV’s necessary to get around the rocky, desert terrain.
Gregg and I started the process of negotiating terms to a memorandum of agreement to spell out what I would receive in return for this investment -- and my cumulative investment of tens of thousands of dollars over the past 10 years. I'm a contractor, not a lawyer, so I thought this was by no means a contract (see the actual copy of the memorandum with other referenced documents at the end of this statement). It stated in the original memorandum that it was not complete: acting in good faith, I believed it would not become a legally binding contract until both parties agreed it was complete.
While we were negotiating the letter of agreement, I invested another $90K in working capital into Luce's business, MIII, The wood shed and the B&B, allong with three vehicles (two pickup trucks and a four-wheel drive suburban).
I was on the board of directors of the company at this time. Without my knowledge, within days of my signing the incomplete letter of agreement (with the understanding that a formal contract would follow), Luce and the other board members misrepresented the letter of agreement as a contract and incorporated it into a mechanics lien for $1.5M USD filed against the property -- property that he I held title to! Again, neither Luce nor the other board of directors or the corporation had any interest , express or implied, in the Flagstaff real estate. My name was the sole name on the title to this property -- then and now. Luce's false pretext for filing the mechanics lien was that I somehow owed Luce and directors Jesse Miller and Mike Ibsen money for their work in producing an e-commerce web site. There was never a contract obligating me to such a services agreement, nor was there language like that in our preliminary letter of agreement. Moreover, this supposed e-commerce website falls short in one very serious aspect: it's never generated one dime of commerce in its five years of existence. That makes it hard to view the site as holding any monetary value. Not only did this hurt me on a professional level -- burning through time and money, it also hurt on a personal level, since I had viewed Gregg as a close friend for over eight years. This leads me to believe he was just looking for a time to strike like a viper from the beginning of our friendship.
The letter of agreement did address development of a simple B&B website, but not the 500 page, rambling website Luce authored. TheWoodShedAZ site pitched everything from genetic recombination to space tourism! Luce was now taking a shotgun approach to hitting up investors, rather than just focusing on one product or service. It was completely unrealistic. To fully appreciate how crazy and fantastical this website is, you really have to see it for yourself: TheWoodShedAZ.com. How a simple B&B website morphed into a house of cards business platform trying to compete with Richard Branson for space tourism venture capital is beyond me. Of course, Luce and MIII didn't have the resources, personnel or technology to begin to compete with those seriously exploring space tourism as a business model -- people like Paul Allen and Richard Branson. This made me look like an idiot by association, because no one in their right mind would take this business model seriously. I was furious -- not only by the lien and the deceit, but the fact that my professional reputation was being drug through the mud by association. I started to look for a way to cut my losses and put distance between myself and all things Gregg Scott Luce and Millennium III related. Things would get much worse before they got better.
Gregg brought his Institutionalized brother out from Maine. His brother had a long history of serious psychological problems and violent behavior (sound familiar!). Luce thought he could help him by changing his diet to herbs and vitamins. This posed a problem because now it made it next to impossible to have paying B&B guests when his psycho brother was running 'Luce' on the ranch. At one point, Luce's brother set the residence on fire, doing thousands in damage. Rather than see this as a sign that maybe this wasn't the best place to care for his deeply disturbed sibling, without consulting me, Gregg decided that he wanted to transform my property into a care facility for people like his brother. He was talking about how much money we could make if we could warehouse fire starters for the state.
This was my last straw, I told Luce he had two months to make his original business model work -- the one we agreed to -- or that he was out. Three months went by with no progress by Luce. At that point I demanded that I be removed from the MIII board of directors. In a last ditch effort to stall for time, Gregg attempted to revisit and complete the original Letter of Agreement. The problem is that he would never make any concessions, and wouldn't include any language in any form that would guarantee return of my original capital investment into the Arizona property and Millennium III foreign based corporation, Millennium III Media Communications, Inc. Luce would get frustrated, lose his temper and refuse to negotiate. Finally, he told me to "just sell the property". How big of him, considering it was my property and not his.
We had a separate contract that where we would split profits between us for a sale. It was this contract that provided the consideration/"payment" for Luce's work on the website and business model in Arizona -- not the separate and incomplete letter of agreement he used to lien the property.
Hostilities subsided some a few months later. I called him about something, and at that point he told me to go to theWoodShedAZ.com web site and check out all of his great improvements to the site and business. I pulled up the site but didn't see any improvement. Four days after that phone call, Luce had remotely wiped my hard drive clean. He was able to do this because, at the time, I had a static IP address. Fortunately, I had most files backed up. Luce wanted me to go to the website just so he could track my IP address. Once he had that address, he was able to hack into my computer and delete all email and documents that he felt might be used against him in a criminal or civil proceeding. I responded by sending Luce a certified letter demanding that he remove himself and his business from the Flagstaff property.
Luce called me shortly after receiving the notice to vacate premises notice to tell me that his brother had broken out a window at the residence. I made a surprise visit to the property and found out that almost all the windows on the first floor had been broken and that Gregg had boarded the place up and moved to Scottsdale, AZ, to stay with one of "four women he was playing" at the time. I came to learn that he would use women for their credit cards and a place to crash when he was homeless. Just like he used his friends. This is when I started the eviction process. This normally would have been a quick and dirty legal proceeding, but because some of Luce's personal belongings remained on the property, it required that a court grant a forcible detainer judgment -- a more costly, involved and time consuming procedure. This process cost me thousands in legal fees and tied up the property for eight additional months before I could put it on the market. It was further delayed by the fact that Luce had no forwarding mail address at which he could be reached. Once the eviction was complete, I contracted a realtor to sell the place. The realtor did a preliminary title search and that is when I realized that Luce had filed the lien against the property using the incomplete letter of agreement.
Even though the lien was so much nonsense, it still became a huge problem because until title was cleared, title companies refused to insure the property, fearing litigation down the road.
Let me explain how a mechanics lien works. The lien was devised as a way for general contractors to create a place holder on a 'first in time, first in right' basis, for money owed on a project. Once a mechanics lien has been filed, though, the contractor must follow through with an actual law suit to win a judgment against the property. Luce never followed through with a lawsuit. All liens eventually expire, so eventually title was cleared and I was able to place the property on the market. By this point the real estate bubble had burst and the country had slid into a deep recession, placing me in a horrible position. Property values have dropped faster and deeper than I can realistically lower the selling price. At one point prior to the lien expiring, I spoke to MIII director, Mike Ibsen, and asked him why he would not simply release the lien on the property. Without giving an explanation, Ibsen said they would not do this. I explained to Director Ibsen that at the end of the purchase contract, the property would revert back to the old owner. Where if I refinanced the property or sold it now we could all benefit. He still refused, even though he admitted that there was not benefit to Luce, Ibsen or MIII by keeping the lien in place.
Later, I needed to raise money to offset losses. When I started the process to sell other investment properties I owned, I discovered that Luce and Ibsen had filed liens on all property I held title to that they could identify. They even filed a lien on my mother’s condo because they thought that I still had a vested interest in the condo. There is only one way Luce and Ibsen would have been able to identify ownership of my various investment properties. MIII Director Ibsen had worked as a loan broker for a period of time and had brokerd with me on a transaction when we were on friendlier terms. After I cut off all ties with Luce and Millennium III, Ibsen, in a huge conflict of interest, breached his fiduciary duty to me by disclosing my personal financial information to MIII to use in indentifying and filing liens against my remaining property.
None of these liens where legally sound and all were set aside, but it just goes to show you how completely devoid of morals and business ethics Luce and Ibsen really are. In my opinion, the only reason Ibsen and Luce have not been prosecuted for shareholder fraud is because the statute of limitations ran in Washington State (investors first put up money in 1994), and Luce is careful not to steal so much money from investors and business associates that the overloaded state and federal agencies will make time to pursue him. The sad reality is that, collectively, Luce has defrauded millions from investors up and down the West Coast. He stays on the move and changes his business model, so no one crime looks like the "big score", but if you add up all lost investments, we are talking about serious money. Compared to a Bernie Maddof or Alan Stanford, Luce is a small time crook. It's very hard to cage a petty thief that is a moving target. Fortunately, due to the work of a few lawyers and investors that have tried to hold Luce accountable, formal investigations into Luce's business activity have been launched by two attorney general offices in two states: there is a paper trail.
Any investors considering doing business with Luce, Millennium III or his associates should know that doing business with Luce is inviting the scrutiny of all past defrauded investors, their attorneys and law enforcement, many of whom continue to monitor Luce's movement.