Saturday, August 27, 2016

FW: Payments by Members to the Association via AMCOR

From: John Sellers []
Sent: Saturday, August 27, 2016 4:09 PM
To: 'Dennis May' <>
Cc:;;;;;;;;;;;;; MARK REECE CPA <>;; jbyrd@biltmorebankaz. com; rendicott@biltmorebankaz. com; awhite@biltmorebankaz. com;;;;;;;;;;;;;
Subject: Payments by Members to the Association via AMCOR

Mr. May
I helped the Automated Clearing House(ACH) get off the ground in the 1980’s when at Chase with Exxon. I’m still reasonably familiar with its batch driven processing system essential to keeping costs down for money payments that are relatively small. The ACH now has an annual volume of $27trillion. That’s equivalent to the value of all residential housing in the US.
With HOA’s gathering nationally, based on US Census Data, approximately $1Trillion annually, that’s 4% of the ACH volume. I rarely use it because of certain flaws I perceive in the system, preferring to use credit cards. The reason being, you’re allowing a third party to dip into YOUR bank account. Some bankers think of it as tantamount to handing the codes of your online bank account over, except this is paper.
1.      The form you use for member’s payments via the ACH is attached. It authorizes YOU, as AMCOR, to initiate those debits to member’s bank accounts. I should add other Management Companies have a similar form.
2.      You are NOT a bank. In fact, you’re not licensed by anybody. You and Robin Thomas have also lied to me and a Judge at the OAH
3.      Banks are unique animals with powers to debit and credit. They are deemed responsible because they are the most regulated players in the world. It’s a unique often overlooked aspect of banking using DEPOSITARY INSTITUTIONS which date back to the Medici’s in Florence.
I have previously asked where you keep these essentially “Bearer documents” without response
1.      I have the General Ledger for the year to July 31, 2016. See attached. It’s obvious most members use this because of the batch transfers showing in the accounts.
2.      Where are those direct debit authorities kept?
3.      As no receiving bank is mentioned, what happens with these forms when you change banks as you did?
4.      If indeed you resigned as Management Company, should you not return these to members, as those signatures are their property?
5.      How would members retrieve them?
6.      How do they know you would not simply drain their bank accounts as there no limits really on amounts nor does it expire?
7.      Are you mingling accounts?
Secondly, I made two payments by Credit Card to the HOA on January 12, 2016 and Feb 12,2016. One was for $516.25 for assessments plus a prepayment for records requests. One was for $51.63 for records requests only. See attached
1.      You’ll note that the payee on my credit card account is AMCOR, not the HOA.
2.      It was paid to a bank by Wells Fargo that has no known connections with the Crossings
3.      I can find no entries in the General Ledger for those amounts showing that the HOA was reimbursed
4.      Unless you can explain this by close of business Wednesday, I will file a police report.
Finally, I could not help noticing that you have borrowed money from Biltmore Bank of Arizona. See the subordination agreement attached. The Crossings used to bank there until recently. Is that not a conflict of interest?
Any comments from the bankers copied would be welcome if I missed anything.
John Sellers
6231 East Mark Way Unit 12
Cave Creek
Arizona 85331
Tel: 928 310 8220

Separately, Debora Black, Prescott Police Chief
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