Saturday, August 27, 2016

Disclosure in the Crossings - or not?

From: John Sellers [mailto:jasellers123@gmail.com]
Sent: Saturday, August 27, 2016 11:13 AM
To: kathleen@kathleeny.com; Sheila Mengarelli <sheila@kathleeny.com>
Cc: Louis Dettorre <ldettorre@azre.gov>; sheila@kathleeny.com; ahansen@azre.gov.; donkelley1@live.com; 'James D. Atkinson' <James.Atkinson@carpenterhazlewood.com>; 'Dennis May' <d_may@amcorprop.com>; Matt Semple <matt.semple@fnf.com>; Larry Harding <hcalarry@cableone.net>; Sorkin, Jeffrey A <Jeffrey.Sorkin@Chubb.com>; AHansen@azre.gov
Subject: FW: Records Request Order

Ms. Yamauchi
I understand you closed escrow on a property in The Crossings on behalf of the Carmans on August 8th. The very day the Management Company, Attorneys and Board resigned. The “FINAL” letter announcing that dated August 8 which went to ALL Homeowners is attached along with other materials YOU were supplied by email on Aug 23 including:
1.      The AZDRE order dated August 18
2.      Miscellaneous records (General Ledger + Homeowners list) supplied by Amcor
You are now still listing another property showing your photo with details on the Youtube link below updated August 16. What are you disclosing to potential buyers?
I’m sure you’ve read the attached order from your very own licensing Agency – The Arizona Department of Real Estate.
I’ve also attached an email that went to all owners with email addresses given to me by Amcor, including Mr. Kelly, on August 25.
Kindly advise who your insurer is?


Copy
Lousis Dettore AZDRE
Abby Hansen AZDRE
Crossings Insurers
Lawyers Title - Matt Semple
Don Kelly, Lot 31 The Crossings
James Atkinson, Carpenter Hazlewwood
Dennis May, AMCOR
Bcc
All Crossings Members with email addresses
Arizona Homeowners Form Blog
The Crossings Blog
Sincerely
John Sellers
Tel: 928 310 8220
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From: John Sellers [mailto:jasellers123@gmail.com]
Sent: Tuesday, August 23, 2016 10:22 PM
To: acarman@lawwmc.com; kcarman@lawwmc.com; 'Andre&Christie Carman' <+19284458046@myfax.com>
Cc: 'Sheila Mengarelli' <sheila@kathleeny.com>; Kathleen Yamauchi <kathleen@kathleeny.com>
Subject: FW: Records Request Order
Mr. & Mrs. Carman
An earlier email came back
Kindly see the email below
For your convenience I’ve also faxed it and copied it to your realtor
Regards
 John Sellers
6231 East Mark Way Unit 12
Cave Creek
Arizona 85331
Tel: 928 310 8220
***************************************************************************

From: John Sellers [mailto:jasellers123@gmail.com]
Sent: Tuesday, August 23, 2016 4:19 PM
To: 'James D. Atkinson' <James.Atkinson@carpenterhazlewood.com>
Cc: 'Dennis May' <d_may@amcorprop.com>; MARK REECE CPA <mark@markreececpa.com>; Todd Marolf <tmhw@cableone.net>; hdefusco@metrophoenixbank.com; mmorano@metrophoenixbank.com; shaggard@metrophoenixbank.com; 'Debora Black' <debora.black@prescott-az.gov>; 'John Furlong' <John.Furlong@staff.azbar.org>; 'Steve Little' <Steve.Little@staff.azbar.org>; 'Melissa Cornelius' <Melissa.Cornelius@azbtr.gov>; 'Cindie Hubiak' <+16022521511@myfax.com>; 'Tammy Seto' <tseto@azdfi.gov>; Sorkin, Jeffrey A <Jeffrey.Sorkin@Chubb.com>; Larry Harding <hcalarry@cableone.net>; Matt Semple <matt.semple@fnf.com>
Subject: Records Request Order

Mr. Atkinson
Cc:                   Messrs. Reece, Marolo, May, Metro Phoenix Bank
                        Crossings Insurers
CC:                   List below by this and separate email

On Friday we received a second default Judgement against the Crossings. See attached. It’s obviously a done deal even though theoretically you have 30 days to appeal. But there’s no one to authorize that. So, technically, you might all want to bury your heads in the sand but that has not served you well and the chickens are coming home to roost. The Petition requires you to provide the records stated in the petition per our request July 30,2015. That request is attached. Even though it is an administrative order, it is enforceable in Superior Court by us and/or the Dept. of Real Estate. We would probably ask them to do it, as they have been very helpful.

Pre-bankruptcy – time is of the essence. You all have no idea of the size of the doomsday machine you have started. You have no idea where this could go. And what we don’t know. Some of you may remember I told the City 5 yrs. ago in a Council Meeting to hire bankruptcy counsel over the Crossings because worst case they might have to buy the whole subdivision back. I did not do that lightly and I did it because I’m well versed in bankruptcy. And we are also the ONLY one of 79 lot owners who did not sign the City’s (Non)Declaratory Judgement.

My preliminary conservative estimate, which I cannot guarantee, of the damages is approaching $6mm which exceeds the insurance of the HOA. That’s $50,000 per homeowner. This is not because of the small size of the numbers in the Association’s balance sheet but the CONTINGENT LIABILITIES. My analysis cannot fully factor in potential losses and resulting claims including but not limited to the following due to:
1.      Faulty disclosure by the Association/AMCOR related to recent escrow closings
2.      Closing which might not now occur from sales pending
3.      Acceleration of mortgages by banks with riders which are current but potentially in default because of the lack of a Management Company
4.      Failure to honor construction deposit refunds from projects in construction.
·         Especially if they are debt funded
5.      Failure by homeowners who signed the NON DECLARATORY JUDGEMENT to disclose it to new buyers, including some current owners
6.      Failure by AMCOR to do likewise
7.      The “unknown” “unknowns”

For the avoidance of doubt, we want access to all in the request including but not limited to:
1.      All emails, especially Mr. Burnett’s, relevant to the Crossings, plus any and all records held by Google, 1&1, Messenger Association Voice, CINC, the Association’s Bank or Banks, the General Ledger, and any other electronic online services
2.      Please therefore, as ordered supply, the user names and passwords for all those accounts
3.      This means for the bulk of the records I might not even need to come to Prescott
4.      Please supply them in a password protected Word file. You may call me or text me the password for that file.
5.      Despite Amcor’s seeming resignation on August 8, they are still working as can be seen from the dates on the paper copies of what obviously are electronic records. See attached plus my email to him below on a “curious point”.
·         Clearly electronic records exist in multiple forms
6.      This includes user names and passwords for the Associations Bank Accounts.
·         If anyone worries about whether those moneys would safe, who do you trust more? A seasoned banker who would NEVER sign anything with a sole signature - or Mr. May.
7.      All electronic records held by AMCOR, Mark Reece and Todd Marolo
8.      As far as time periods are concerned, the records mean ALL records from the stated start date to current
9.      Records in paper form which were previously in electronic form but destroyed by AMCOR as they have represented

I have spoken to John Furlong, Chief Counsel at the Bar Association, and Steve Little in the Ethics Dept. Based on my conversations, any conflict between your broad ethical obligation to protect confidentiality and the conflicting obligation to protect the HOA is now surpassed by the order. He’ll correct me if I’m wrong. The same applies to bankers, accountants and architects I believe for Metro Phoenix, Mark Reece, and Todd Marolo. As no one regulates Amcor, there is no one to copy.

Finally, waivers of suit from us are still on the table if it includes cooperation with us, our attorneys/insurers and any agencies.

Waivers from us will not be available for, and this may change:
1.      Ty Myers, Justin Scott, DHB and Amcor
2.      Lawyers Title
3.      Anyone at Carpenter Hazlewood - outside your office
4.      Messrs. Giambanco, Burnet, Dozier and Burnett
5.      Marlin Kuykendall
6.      Others to be decided

Also as far as HOA members are concerned, waivers will be available for cooperating members. Including some who have to date supplied valuable information anonymously by letter. But they will have to surface.

There is no deadline attached because we needed these records yesterday. 18 months ago at least

Sincerely

John Sellers
928 310 8220

***************************************************************
From: jasellers123@gmail.com [mailto:jasellers123@gmail.com]
Sent: Wednesday, August 17, 2016 10:07 AM
To: Dennis May <d_may@amcorprop.com>
Cc: James D. Atkinson <James.Atkinson@carpenterhazlewood.com>
Subject: Curious question
Mr. May
Having collected certain records about 9:40 this morning from CHDB, incomplete of course relative to the request, I could not help noticing that the listing of property owners is timed at 10:36 a.m. and dated today.
As it's now 10:05, how could that be?
Mr. Atkinson's office also seems to have no other records.
Where are they? At your offices in Prescott?
I have some chores to do. I'll see if I can stop by later this morning and inspect the other records as your office is open for once. I stopped by to say hello
Regards
John Sellers
Tel: 928 310 8220

***************************************************************
Copies by separate email to
Full Name                                           Job Title                                                                                Company            

Debora Black                                      Police Chief                                                             Prescott Police Dept      
Stephen Haggard                             Director/President/CEO                                         Metro Phoenix Bank      
Mike Morano                                     EVP, Chief Credit Officer                                       Metro Phoenix Bank      
Helen DeFusco                                  EVP, Chief Financial Officer                                   Metro Phoenix Bank      
Michael DeLeon                               Special Agent in Charge                                          Federal Buruea of Investigation, Phoenix
John Furlong                                      General Counsel Deputy Executive Director      AZBAR 
Steve Little                                          Senior Bar Counsel                                                 Azbar   
Melissa Cornelius                             Executive Director                                                    Arizona State Board of Technical Registration       
Cindie Hubiak                                    President & CEO                                                       Arizona Society of CPAs
Abby Hansen                                     Customer Service Representative                         Arizona Department of Real Estate               
Tammy Seto                                       Division Manager                                                     ADFI     
Arizona Homeowners Forum
_____________________________________________________________________________________
Copy ISP’s re emails and electronic data access
Full Name                                                                                           Company            
Association Voice Inc.                                                                     Association Voice            
CINC Systems LLC and Accounting Integrators                     CINC Systems LLC and Accounting Integrators    
Google Legal Investigations                                                         Google Legal Investigations Support(For Gmail and cableone.net)  
Legal compliance                                                                              1&1 Internet, Inc. (“Witness”)   
MSN Custodian of Records                                                           MSN Custodian of Records          
Francis Ayers                                                                                     Chancellor of Prescott Campus   Embry Riddle University
Yahoo Custodian of Records                                                        Yahoo Custodian of Records        Yahoo! Inc.         

Re: the following preliminary list of emails the subject of potential subpoenas
Brenda & Suzanne Dozier Lebeau                              bjdozier@yahoo.com                                    Crossings Board Member               
Robert & Sandra Kilpatrick                                           daybyday441@msn.com                              Crossings Board Member               
Gary Harlow                                                                       garyharlow5040@gmail.com                       Crossings Board Member               
Gordon (Skip) & Pamela Evans                                    gevans11698@me.com                                 Crossings Board Member               
Laurie & Johnny Heatwole                                           pearofpeaches@cableone.net                   Crossings Board Member               
Ken & Karen Burnett                                                       woolfburnett@msn.com                              Crossings Board Member               
Tim Greseth                                                                       jgreseth@hotmail.com                                 Crossings Board Member               
Pete Giambanco                                                               giambanco@cableone.net                           Crossings Board Member               
Pete Giambanco                                                               chooch@cableone.net                                  Crossings Board Member               
Monty Moshier                                                                 Monty.Moshier@erau.edu                          Crossings Board Member
Copy to current and past owners + insurers
Full Name                                                           Company            
Matt Semple                                                      Lawyers Title Insurance Corp      
Jeffrey Sorkin                                                    North American Financial Lines Claims    Chubb  
Larry Harding                                                     Chilson House Insurance              
Michael&Susan Nothdurft                                          
Jeffrey Adams                                  
Andre&Christie Carmen                               
William Bassett                                
Lothaire&Connie Bluth                                 
Steven&Heather Burnett                                             
Steven&Janeth Dow                                      
Brenda&Sue Dozier-Lebeau Living                                           
Fred Hall                                              
Donna&Boyd Gallaher                                  
Aaron&Kacy Garfield                                     
Peter&Christine Giambanco                                       
Jason&Tammi Gisi                                           
Gordon&Pamela (Skip) &Pamela                                              
Grand Jam                                          
Gary Harlow                                      
Johhnie&Laurie Heatwole                                           
Donald&Pam Huang                                       
David&Mindy Hubbs                                      
Jeffrey&Annessa Andrews                                          
Jennifer Greseth                                             
Joe&Kim Savoini                                              
Lamuel&Barbara Johnson                                           
Donald Kelley                                   
Ken&Karen Burnett                                       
Kotula Paul                                        
James&Janis Manolis                                     
Donald&Erika Mcchesney                                           
Kevin&Tami Mitsch                                        
Monty&Kellier Moshier                                
Steve Mortenson                                            
Patrick Loescher                                              
Paul&Cheryl Kotula                                        
Judy Zurbriggen                               
Jeff&Patsy Perkins                                         
Richard&Nicole Sprain                                  
Charles&Cheryl Ring                                      
Robert&Sandra Kilpatrick                                             
John&Celeste Roberts                                  
Roger&Dena Paeselt                                     
Ron&Jane Scott                               
Mark&Jennifer Roth                                      
Scotty&Margaret Evans                                
Mathew&Tracy Sullivan                                
Vincent&Eleanor Chavez                                             
Bertram&Sally Wagnon                                
Darrel Waite                                      
Todd&Emma Walker                                      
John&Sue Weisshaupt                                  
Jeffrey Adams                                  
Andre&Christie Carmen                               
William Bassett                                
Lothaire&Connie Bluth                                 
Steven&Heather Burnett                                             
Steven&Janeth Dow                                      
Brenda&Sue Dozier-Lebeau Living                                           
Fred Hall                                              
Donna&Boyd Gallaher                                  
Aaron&Kacy Garfield                                     
Peter&Christine Giambanco                                       
Jason&Tammi Gisi                                           
Gordon&Pamela (Skip) &Pamela                                              
Grand Jam                                          
Gary Harlow                                      
Johhnie&Laurie Heatwole                                           
Donald&Pam Huang                                       
David&Mindy Hubbs                                      
Jeffrey&Annessa Andrews                                          
Jennifer Greseth                                             
Joe&Kim Savoini                                              
Lamuel&Barbara Johnson                                           
Donald Kelley                                   
Ken&Karen Burnett                                       
Kotula Paul                                        
James&Janis Manolis                                     
Donald&Erika Mcchesney                                           
Kevin&Tami Mitsch                                        
Monty&Kellier Moshier                                
Steve Mortenson                                            
Patrick Loescher                                              
Paul&Cheryl Kotula                                        
Judy Zurbriggen                               
Jeff&Patsy Perkins                                         
Richard&Nicole Sprain                                  
Charles&Cheryl Ring                                      
Robert&Sandra Kilpatrick                                             
John&Celeste Roberts                                  
Roger&Dena Paeselt                                     
Ron&Jane Scott                               
Mark&Jennifer Roth                                      
Scotty&Margaret Evans                                
Mathew&Tracy Sullivan                                
Vincent&Eleanor Chavez                                             
Bertram&Sally Wagnon                                
Darrel Waite                                      
Todd&Emma Walker                                      
John&Sue Weisshaupt