COEUR d'ALENE - The big yellow Ford Bronco sitting curbside will make the Lake City's newest pizza place easy to spot, even for those with short memories. It has only been a few months since King Pizza shut down during the reconstruction of Fourth Street, but a new operator is hoping to assume the throne as the king of pizza.

COEUR d'ALENE - The big yellow Ford Bronco sitting curbside will make the Lake City's newest pizza place easy to spot, even for those with short memories.

It has only been a few months since King Pizza shut down during the reconstruction of Fourth Street, but a new operator is hoping to assume the throne as the king of pizza.

Other than that slogan on the outdoor sign and a counter inside, little remains of the former pizzeria at 1606 N. Fourth St. that is now Pepe Caldo Pizzeria.

"We have a lot of different twists on pies," said Mike Wixom, who manages the store for owner Steve Lux.

They may need to sell a lot of them. Some officials believe Lux has already had more than his slice.

Lux is one of nine former "insiders" of Apply 2 Save being sued for nearly $1.4 million by the U.S. Bankruptcy Court, seeking to recover payments allegedly made to them by the mortgage modification company between June 9, 2008 and June 9, 2009. Bankruptcy trustee Ford Elsaesser put the "preferential" payments to Lux at $331,647.

"That is three times more than I made," Lux said.

He claims the court is going after him and the others as a way to get at Derek Oberholtzer, president of the company. After just over a year in operation, Apply 2 Save shut down after the Idaho Attorney General filed suit after receiving hundreds of complaints from consumers who claimed they paid for services that were never received.

In less than 10 months, the Consumer Protection Division received about 400 complaints against Apply 2 Save.

The company was served with a civil complaint on April 30, and ceased operations in May, leaving more than 100 employees in the lurch, many unpaid. On June 9, Apply 2 Save filed for bankruptcy. On July 7 Oberholtzer also filed a Chapter 7 bankruptcy petition. Both Apply 2 Save and Oberholtzer claimed to have no assets to pay their creditors.

"I was never a partner or shareholder in the company," Lux said.

But in July he agreed to a settlement with the state, after Attorney General Lawrence Wasden accused him of engaging in unlawful and unlicensed mortgage modification activities under the Idaho Consumer Protection Act.

The $50,000 settlement included $45,000 for restitution.

"They were going to sue me for $1 million," Lux said. "I paid them to put it behind me and get on with my life."

As a part of Operation Loan Lies, a nationwide sweep of foreclosure rescue companies, Wasden, 23 other agencies in 19 states and the Federal Trade Commission commenced 189 civil, criminal and administrative enforcement actions and investigations of businesses and individuals allegedly involved in unlawful mortgage rescue activities.

The settlement agreement with Lux prohibits him from engaging in mortgage modification and loan broker activities in the state of Idaho.

Lux moved to Idaho from Orange County, Calif., in April 2005 and started Carson Mortgage Capital in Post Falls, at the peak of the subprime lending debacle that is still being felt in the national and international economy.

That company shut down near the end of 2006.

"The banks stopped loaning money," Lux said.

There is more to the story about Apply 2 Save that will come out in coming weeks and will exonerate the company and its officers, he said.

He claims officials analyzing the spreadsheets of the company did not know how to read them, and overlooked work it did for customers but did not get paid for. That led to erroneous allegations that $4.5 million in company funds was unaccounted for, he said.

When questions about his past turned from pizza to his past history in business, Lux balked at being identified in the story.

"This is not about me," he said. "It is about Mike, and the pizza."

Wixom also was evasive about the ownership of the business, calling it "a group of local investors." But Lux, who said he is the primary investor, is the only listed member or manager of the company, with attorney Peter Smith shown as the registered agent in the limited liability company certificate filed with the Idaho Secretary of State in November.

And though the layout is similar to King Pizza, the pizzeria got new carpet, yellow paint matching the Bronco, equipment and a resurfacing of the blackboards that display the Pepe Caldo menu. The name, Wixom says, means hot pepper in Italian.

The ultimate goal of the operation is to become a training center and home store for other operations. Wixom has worked in a variety of restaurants and began the Little Caesar's franchises in the region.

Pepe Caldo will be on the other end of the spectrum from the low-cost pizza.

"We prefer good quality products and ingredients," he said. That means ordering small quantities every day or two, and making dough that has a "nice crispy crunch but with a light chewy crust." More olive oil makes the dough denser, he said.

Each is hand-tossed to order in four sizes, and each day there are specials. Signature pies include the chipotle southwestern with creamy sauce, chicken breast and vegetables including cactus nopolitos, or prickly pear. The Hawaiian pizza includes shaved ham, seasoned chicken and red onion, among the usual Hawaiian-style pizzas.

Build-your-own pizzas come in 10-, 12-, 14- and 16-inch sizes prices at $7.10 for cheese to $15.50 for a four-item extra large.

Bottled beverages from Pepsi and water are available, and there are several tables to eat at, though take-out and delivery are expected to make up the majority of the business.

From time to time a small but rich tiramisu cake dessert made with mascarpone cheese and a creamy filling will be offered up at no charge.

"It is a nice little treat for people who are waiting," Lux said.

Pepe Caldo Pizzeria is open every day from 11 a.m. to 9 p.m.

Information: 765-6010