Sunday, August 28, 2016

Re: Emails today to AMCOR, Yamauchi Real Estate cc Prescott Police Chief

Check out the two web sites
You closed on the house on the very day of this announcement. Aug 8. And your name appears on the list of owners Amcor gave me last week. So you should have been notified. But obviously were not.
I cannot advise you other than to get an attorney. A very good one. I know the subdivision backwards. You've been misled. Seriously!
Who was your broker?
I know Ms Yamauchi was on the other side for the Carman's who are attorneys by the day and copied on this. Ms Yamauchi has a lot to answer for. I hope she is in discussion with her insurers and a good attorney.
Until yesterday she was still accepting good faith deposits on additional closings in the Crossings I'm told, having been put on notice by me earlier that her licensing authority, AZDRE, Commissioner Judy Lowe in particular, had issued a default Judgement against the HOA, and indirectly you as member, in our favor.
I confidently predict when the facts come out, Ms Yamauchi will be seeking alternative employment.
Try asking Amcor and Atkinson copied on this plus Ms Yamauchi and the Carman's.
This is being bcc'd to a number of good people who should feel free to circulate it. It will also be posted on the blogs which now get 1,000 hits per day. The Crossings is a huge mess and Ms. Yamauchi's deceit only compounds the monstrous contingent liabilities the bad actors have already amassed in the Crossings. It takes a while for genuine idiots to realise they're in deep doodoo. But they are getting there, slowly. If Ms Yamauchi feels she is being defamed, she has an obligation to mitigate her damages. Consequently she should respond to the blog directly. Any misstatements by me in this email and posting would be subject to an immediate apology and retraction
Ms Yamauchi..over to you!
John Sellers
928 310 8220

-------- Original Message --------
From: Fred Hall <>
Sent: Saturday, August 27, 2016 07:27 PM
To: John Sellers <>
Subject: Re: Emails today to AMCOR, Yamauchi Real Estate cc Prescott Police Chief

Dear John
I received a letter sent to my Lakeside address and your emails this week.  This is the first I've heard about any of this.  What is the history of the disagreement?  How long has it been going on?  What is the answer to all this?  Any info would be appreciated.  

Fred Hall

Sent from my iPad

On Aug 27, 2016, at 5:48 PM, John Sellers <> wrote:

Dear Fred
See two emails sent today to Kathleen Yamauchi and AMCOR cc Prescott Police Chief

From: John Sellers []
Sent: Saturday, August 27, 2016 4:37 PM
To: Debora Black <>
Subject: FW: Payments by Members to the Association via AMCOR

Ms. Black

Please see below.

On a separate note I was sorry to hear Lt. Andy Reinhardt left. Please give him my best given chance.

John Sellers
6231 East Mark Way Unit 12
Cave Creek
Arizona 85331
Tel: 928 310 8220

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
Crossings Homeowners
Crossings Blog
Arizona Homeowners Forum Blog
From: John Sellers []
Sent: Saturday, August 27, 2016 11:13 AM
To:; Sheila Mengarelli <>
Cc: Louis Dettorre <>;;;; 'James D. Atkinson' <>; 'Dennis May' <>; Matt Semple <>; Larry Harding <>; Sorkin, Jeffrey A <>;
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?

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
All Crossings Members with email addresses
Arizona Homeowners Form Blog
The Crossings Blog


John Sellers
Tel: 928 310 8220

From: John Sellers []
Sent: Tuesday, August 23, 2016 10:22 PM
To:;; 'Andre&Christie Carman' <>
Cc: 'Sheila Mengarelli' <>; Kathleen Yamauchi <>
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


John Sellers
6231 East Mark Way Unit 12
Cave Creek
Arizona 85331
Tel: 928 310 8220

From: John Sellers []
Sent: Tuesday, August 23, 2016 4:19 PM
To: 'James D. Atkinson' <>
Cc: 'Dennis May' <>; MARK REECE CPA <>; Todd Marolf <>;;;; 'Debora Black' <>; 'John Furlong' <>; 'Steve Little' <>; 'Melissa Cornelius' <>; 'Cindie Hubiak' <>; 'Tammy Seto' <>; Sorkin, Jeffrey A <>; Larry Harding <>; Matt Semple <>
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


John Sellers
928 310 8220

From: []
Sent: Wednesday, August 17, 2016 10:07 AM
To: Dennis May <>
Cc: James D. Atkinson <>
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
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  
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                                                        Crossings Board Member               
Robert & Sandra Kilpatrick                                                               Crossings Board Member               
Gary Harlow                                                                                    Crossings Board Member               
Gordon (Skip) & Pamela Evans                                                           Crossings Board Member               
Laurie & Johnny Heatwole                                                    Crossings Board Member               
Ken & Karen Burnett                                                                           Crossings Board Member               
Tim Greseth                                                                                              Crossings Board Member               
Pete Giambanco                                                                                Crossings Board Member               
Pete Giambanco                                                                                       Crossings Board Member               
Monty Moshier                                                                                 Crossings Board Member
Copy to current and past owners + insurers