Wednesday, July 20, 2016

Follow the HOA Money - how do you launder things?

From: John Sellers [mailto:jasellers123@gmail.com]
Sent: Wednesday, July 20, 2016 6:45 PM
To: 'Robin Thomas' <rthomas@amcorprop.com>
Cc: 'Josh Bolen' <josh.bolen@carpenterhazlewood.com>; 'Lydia A. Peirce Linsmeier' <Lydia.Linsmeier@carpenterhazlewood.com>; rendicott@biltmorebankaz.com; jbyrd@biltmorebankaz.com; awhite@biltmorebankaz.com; mmorano@metrophoenixbank.com; shaggard@metrophoenixbank.com; MARK REECE CPA <mark@markreececpa.com>; agerard@azbankers.org; wridenou@fclaw. com; bbernste@aba.com; jsigmund@aba.com ; jhall@aba.com ; mtownsend@aba.com ; phickman@azbankers.org; sgrano@aba.com ; skillian@azbankers.org; tkleinlein@azbankers.org; Sorkin, Jeffrey A <Jeffrey.Sorkin@Chubb.com>; Fareed Bailey <FBailey@azleg.gov>; Steve Little <Steve.Little@staff.azbar.org>; scott@carpenterhazlewood.com; Robert D. Charlton <rcharlton@azdfi.gov>; curtis@carpenterhazelwood.com; Bob Rogers <brogers@fdic.gov>; 'Dennis May' <d_may@amcorprop.com>; Monty & Kellier Moshier # 33 <Monty.Moshier@erau.edu>; Robert & Sandra Kilpatrick # 62 <daybyday441@msn.com>; Roger & Dena Paeselt # 34 <azlandscape101@gmail.com>; Roger & Dena Paeselt # 34 <paeselt@cableone.net>; Tim Greseth <jgreseth@hotmail.com>
Subject: Fax/Email to AMCOR - Bank Account Details; The Crossings Records Requests; and Money Laundering

Ms. Thomas (AMCOR Management)
From the check we received today in respect of our OAH Judgement against the Crossings, I note the Crossing HOA has either a new or an additional bank. I was expecting a check from Arizona Biltmore Bank. Instead I received one from Metro Phoenix Bank. See attached
You’ve seen my earlier records request of last week attached, highlighting my concern over the Crossings’s bank, Arizona Biltmore Bank, you, and the Association, not complying with the Patriot Act in respect of proper procedures to combat money laundering.
My concern only deepens that the practice of HOA Management Companies, acting as wholesale deposit gatherers for certain banks from HOA’s, violates at least the spirit of the Patriot Act. KNOW YOUR CLIENT. Unlicensed HOA Management Companies acting as the “CIP” interface for banks on behalf of the ultimate account beneficiary, is unacceptable. I may not be an attorney, but there’s little in banking I haven’t encountered, including writing anti-Money Laundering Procedures in London. And I do understand the fundamental role of deposit taking institutions. See my cv attached. Not only are HOA Management Companies not licensed, for anything, especially handling money, but in Amcor’s case:
1.           You proved with the multiple flip flop over the Crossings 2014 Tax accounts that you could not tell the difference between a debit or credit and a pretzel.  
2.           Furthermore, according to documentation we’ve provided you, and testimony planned for an upcoming OAH hearing, you purgered yourself as a witness, under oath, at an OAH Hearing in 2007
3.           You furthermore misrepresented yourself to me as a paralegal when you’re not supervised by any attorney.
4.           Your President, Dennis May, the seeming sole signatory on the Crossings Bank accounts, lied to me in his emails stating that a CPA had NOT been hired, when it clearly had, months previously.  
In addition to outstanding records requests, please therefore supply me with copies of the following Association records:
1.      Any and all account closing documentation, if any, with respect to the closing of the Biltmore account to include any related communications by and with any party.
2.      Board Resolutions or minutes approving that account closing, if any.
3.      All account opening documentation, Board Resolutions or Meeting Minutes authorizing the opening of the Metro Phoenix account.
4.      All authorities and agreements for direct debiting arrangements with either bank in respect of member’s payments of assessments to the Association. Note, this is not to include copies of the authorities from members.
5.      Any indemnities with any party in respect of negligence of any kind in respect of losses caused by misuse/mishandling of those direct debit authorities.
6.      Copies of any amendments, other than those requested previously, to your Management Contract.
7.      Copies of the agreements between Carpenter Hazelwood and the Association in respect of collection services performed by them as a debt collector. By definition these are obviously not client attorney privileged. We are also not seeking bad debtor information. In particular, any arrangements in regards to escrow agreements, automatic deduction of fees, wherein they act in the collection of funds, either as intermediary or otherwise, for the Association. In this, Carpenter Hazelwood may potentially fall within the definition of “touching” money, as outlined in the guidance and documentation attached on Money Laundering specifically designed for attorneys.
Records supply
The records are meant to be supplied electronically or at the HOA’s principal place of business. As the only signatory on the Bank accounts is Mr. May, located per the check in Scottsdale, we do not have to travel to Prescott to obtain the records. If so you will be in default. However, on this occasion, without waiving that default, if I end up walking personally to Prescott to collect these records, I will. Furthermore, the Association has a substantial credit balance in my favor as you never debited my account for the April requests. Please ensure also the HOA accounts for June are posted. For your convenience you may consider this request, and the two outstanding requests, as one for the purpose of setting the 10 days clock. i.e., starting tomorrow for those prior requests and this.
Mr. Bolen
1.      Thanks for your email below. I'm a bit short of cash this month so I was looking forward to cashing the check. Unfortunately, until I get some assurance that you, AMCOR, and the Association, are not making payments to us from improperly documented accounts, I’m a bit stuck.
2.      According to Mr. Ekmark, Carpenter Hazelwood is the largest HOA Attorney firm in the world. See attached. So being global, I'm sure you share my concern over money laundering. Any attorney firm with a global reach like yours knows the risks and I'm sure you, and Scottie, and others in your firm, lose sleep over it. I know I would.
3.      Please comment on the attached procedures specifically designed for attorneys. If indeed you are touching money, in any way, via debt collection, you are by definition involved. Kindly comment.
4.      In your debt collection practice, how do your segregate the moneys, and with which bank. Technically, you’re not obliged to answer that, but in the interests of transparency, I hope you will.
5.      I’m sure with all this money sloshing around, unless the banking procedures are followed to a “t”, it’s not clear tome whose hands really are on the money.
Hope you are well
Biltmore Bank of Arizona/Metro Phoenix Bank
Any information you felt comfortable with regarding the validity of the Association accounts with you, and compliance with the Patriot Act, would be appreciated, because I could really use the money.

John Sellers
6231 East Mark Way Unit 12
Cave Creek
Arizona 85331
Tel: 928 310 8220
*************************************************************************************
From: Josh Bolen [mailto:josh.bolen@carpenterhazlewood.com]
Sent: Monday, July 18, 2016 2:04 PM
To: 
jasellers123@gmail.com
Cc: Theresa Laubenthal <
Theresa.Laubenthal@carpenterhazlewood.com>
Subject: RE: Re 16F-H1616013-BFS
I was informed that the check was placed in the mail today.
Josh Bolen, Esq.
Direct Line: 480-427-2862
Copies
Fax to AMCOR
Rich Endicott
President, Biltmore Bank of Arizona
John T. Byrd
Executive Vice President & Senior Regional Credit Administrator, Biltmore Bank of Arizona
Adam White
Senior Vice President & Regional Credit Administrator, Biltmore Bank of Arizona
Metro Phoenix Bank
Stephen P. Haggard  Director/President/CEO
Michael Morano, EVP, Chief Credit Officer
FDIC
Bob J. Rogers, Texas State Bar No.  17163400
Senator David Farnsworth, Chair Arizona Senate Standing Committee-Financial Institutions c/o Dan Gardner
Fareed Bailey, Arizona Senate Legislative Research Analyst
Senate Federalism, Mandates and Fiscal Responsibility Committee
Senate Financial Institutions Committee
Robert D. Charlton, Superintendent Arizona Department of Financial Institutions
Crossings Insurers - Ace/Chubb Insurers
Jeffrey Sorkin
Arizona Bankers Association
Steven Little, Arizona Bar Association
Mark Reece CPA for the Crossings