By Melanie Cleveland -- A petition to place San Luis Obispo County real estate developer Fred Machado into involuntary bankruptcy was dismissed this week by a U.S. Bankruptcy Court judge, saying that Machado was not properly notified. Machado, who lives in San Luis Obispo, was an active builder in the Central Valley as well. He borrowed from investors through non-bank lenders, including the troubled Hurst Financial and Country Financial, but has since defaulted on those payments, allegedly without building the homes, according to several lawsuits filed against him. Like many other lending companies in the county that have been accused of fraudulent practices — such as Estate Financial, 21st Century, Real Property Lender — Hurst Financial and Country Financial had a permit to sell investments consisting of fractional interests in promissory notes that were secured by real estate deeds of trust.

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