Tuesday, August 23, 2016
Enforcement of Judgement against The Crossings at Willow Creek Pre-Bankruptcy
From: John Sellers [mailto:email@example.com]
Sent: Tuesday, August 23, 2016 4:19 PM
To: 'James D. Atkinson' <James.Atkinson@carpenterhazlewood.com>
Cc: 'Dennis May' <firstname.lastname@example.org>; MARK REECE CPA <email@example.com>; Todd Marolf <firstname.lastname@example.org>; email@example.com; firstname.lastname@example.org; email@example.com; 'Debora Black' <firstname.lastname@example.org>; 'John Furlong' <John.Furlong@staff.azbar.org>; 'Steve Little' <Steve.Little@staff.azbar.org>; 'Melissa Cornelius' <Melissa.Cornelius@azbtr.gov>; 'Cindie Hubiak' <+email@example.com>; 'Tammy Seto' <firstname.lastname@example.org>; Sorkin, Jeffrey A <Jeffrey.Sorkin@Chubb.com>; Larry Harding <email@example.com>; Matt Semple <firstname.lastname@example.org>
Subject: Records Request Order
Cc: Messrs. Reece, Marolo, May, Metro Phoenix Bank
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
928 310 8220
From: email@example.com [mailto:firstname.lastname@example.org]
Sent: Wednesday, August 17, 2016 10:07 AM
To: Dennis May <email@example.com>
Cc: James D. Atkinson <James.Atkinson@carpenterhazlewood.com>
Subject: Curious question
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
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
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 firstname.lastname@example.org Crossings Board Member
Robert & Sandra Kilpatrick email@example.com Crossings Board Member
Gary Harlow firstname.lastname@example.org Crossings Board Member
Gordon (Skip) & Pamela Evans email@example.com Crossings Board Member
Laurie & Johnny Heatwole firstname.lastname@example.org Crossings Board Member
Ken & Karen Burnett email@example.com Crossings Board Member
Tim Greseth firstname.lastname@example.org Crossings Board Member
Pete Giambanco email@example.com Crossings Board Member
Pete Giambanco firstname.lastname@example.org 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
Brenda&Sue Dozier-Lebeau Living
Gordon&Pamela (Skip) &Pamela
Brenda&Sue Dozier-Lebeau Living
Gordon&Pamela (Skip) &Pamela