Monday, October 31, 2016

Letter to Andy Tobin at the Arizona Corporations Commission re HOA's

Dear AHF

As we move with Arizona State Senator Farnsworth’s Group on new HOA legislation, we also have elections coming up.

One of the institutions Arizona voters get to decide on statewide is the Corporations Commission.

It was only via the ACC web site in 2008, emanating from a minor dispute over the Crossings HOA in Prescott, that we discovered the “round tripping” one HOA Management Company was doing. In this case HOAMCO, a small local company in Prescott. Round tripping in that they were aggregating HOA deposits under their management into a bank, in this case Desert Hills Bank, which then somehow lent those moneys back to Justin Scott, HOAMCO President, for “other” purposes. A bank which subsequently was bailed out by the FDIC costing taxpayers a “mere” $106million

Having once picked that up, we now see the pattern repeated, not just in Arizona, but nationwide. Another Arizona “HOA bank”, First National Bank of Arizona, similarly cost the FDIC in 2008, but in this case - $862million.

But it gets “better”. Now we see the largest nationwide HOA Management Company, FirstService, doing this on a much larger scale, gathering billions of dollars, investing them in US Bank and then borrowing $21mm from them at the parent company level. Remember these Management Companies are completely unlicensed with no oversight.

The ACC reporting requirement back in 2008, without which we would never have spotted this, required HOA’s to provide a summary balance sheet where you could see bank deposits detailed. This reporting requirement was deleted around 2008,

So, we’ve written to Andy Tobin who, as our state representative back then, and Tom O’Halloran, helped us out on what back then seemed a tiny issue.
To see that letter, copied broadly to the Commission, and aspiring candidates, go to

The Arizona Homeowners Forum

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Saturday, October 29, 2016

The Arizona Corporations Commission and HOA's - non-profit corporations

From: John Sellers []
Sent: Saturday, October 29, 2016 5:24 PM
To: ' ' < >
Cc:;;;;; 'Betty Camargo' <>;; Louis Dettorre - Arizona Dept of Real Estate <>; Fareed Bailey <>; David Farnsworth <>
Subject: Arizona Homeowners Associations and the Arizona Corporations Commission

Dear Andy
In 2008 you and Senator Tom O’Halloran helped us out in a potential legal quagmire at our HOA in Prescott. We were one of the first three winning cases at the OAH to be challenged on purely constitutional grounds by the HOA Attorneys. Facing hundreds of thousands of legal expenses.
At the time, I think you told my wife…we don’t usually get constitutionality wrong, but as you know for a while it was. We got lucky and the HOA chickened. Others were not so lucky
Well, things move on but the onion peeling continues. I’m engaged in a struggle with my HOA in Prescott, we don’t live there anymore, which just announced the resignation of every one of its Directors, Management Company and Attorneys. It’s a black hole heading for bankruptcy.
Separately I’m part of a sizeable growing group working with Senator Farnsworth on new legislation to clean out this mess, the corruption and what I’ve testified to, think you were there, as “legal terrorism”. My own personal view as a banker is that we are close to uncovering the money angle which will expose HOA corruption affecting the 40% of Arizonans and 62 million US homeowners who have no idea where their many billions of their money is. And nobody has ever answered the question why the FDIC bailed out two HOA banks, First National Bank of Arizona and Desert Hills bank to the tune of $1BILLION collectively in 2008. Including bailing out the UNINSURED DEPOSITORS. I have a theory, but that’s for later. THESE ARE REAL COSTS TO THE TAXPAYER BECAUSE OF ZERO REGULATION
I happen to believe that this little tsunami could be a ticking time bomb for municipalities, anti-Money Laundering efforts, certain banks, taxpayers and homeowners. And ACH the money transfer system in a worse case.
As I like to say – it’s not the landscaping – IT’S THE MONEY STUPID - where totally unlicensed Management Companies, in concert with certain banks, ARE ACTING LIKE BANKS/FIDUCIARIES with $billions under management
Why am I approaching you?
One of the unsung roles of the ACC used to be to receive annual reports from HOA non-profits to show a summary balance sheet. In 2008, by clicking, I was quickly able to easily access a list of their HOA’s and add up the deposits they were collectively showing in your records. Another click to the County Recorder’s Office and what do you know – a Deed of Trust in their name from the same bank. See attached HOAMCO was roundtripping HOA moneys.
I have a blog at  which addresses this. You can get to the HOAMCO chapter including the attachments and much more by clicking HERE
I’ve tried to find out from the ACC why this simple reporting requirement was discontinued. See emails below. No response. So, my questions to you are:
Why did ACC delete this incredibly simple transparency check?
The Corporations Commission acts as a Utility Commission but, as its name indicates, it also monitors non-profit corporations like HOAs
What role could/should the ACC play in avoiding what could be, in my opinion, the next banking drama?
Look forwards to your response. This will be posted shortly on our blog so you can also respond there if you wish.
Copy: ACC Election Candidates
Tom Chabin (D), William Mundell (D) via their blog
Boyd Dunn (R) email

Louis Dettorre, Assistant Commissioner AZDRE
Dan Gardner/Fareed Bailey, Senator Farnsworth’s Office

John Sellers
Cave Creek
From: John Sellers []
Sent: Friday, October 21, 2016 2:46 PM
To: 'Betty S. Camargo' <>
Cc: Louis Dettorre - Arizona Dept of Real Estate <>
Subject: Legislative Changes
I understand all that. We’re working with Louis Dettore who’s Assistant Commissioner there.
My question was why/how did HOA’s stop reporting balance sheets to you. I presume some rule was changed
John Sellers
Cave Creek
Arizona 85331
From: Betty S. Camargo []
Sent: Friday, October 21, 2016 2:38 PM
Subject: FW: Reporting by HOAs
Dear Mr. Sellars,
I am a paralegal in the Legal Division of the Arizona Corporation Commission (“ACC”).  Your e-mail was forwarded to me for a response.
The ACC is a state agency that incorporates businesses and regulates the sale of securities.  It also governs railroad and pipeline safety and public service corporations (non-municipal utility companies).  The Commission does not regulate the day-to-day operations of corporations.  The ACC Legal Division provides legal advice and representation to our five elected Commissioners and the Commission staff.  We do not provide legal services to the public.
From your e-mail it appears that you have concerns regarding Homeowner Association (“HOA”) reports.  In 2016, the Arizona Legislature passed legislation moving the Homeowners Association (HOA) Dispute Process to the Arizona Department of Real Estate (ADRE).  I am enclosing the contact information for the ADRE that may be able to assist you with this matter.
The statutes that govern Homeowner Associations can be found in Arizona Revised Statutes, Title 33 “Property”, Chapters 18 “HOA’s Dwelling Actions”.
I hope this information is helpful.
Best regards,
Betty S. Camargo, Paralegal
Arizona Corporation Commission
From: []
Sent: Thursday, October 20, 2016 9:45 AM
To: Legal Div - Mailbox <>
Subject: Reporting by HOAs
I'm part of a group working with Senator Farnsworth to clean up transparency and other issues in HOA's.
Until 2008, I was able to detect gathering of funds by a certain Management Company in one bank which then lent the money back.
That's because they were required to report a summary balance sheet to you.
Why was that requirement deleted.

John Sellers
928 310 8220

Tuesday, October 25, 2016

Rest in Peace - Jill Schweitzer - Realtor Extraordinaire and HOA rights Advocate

We heard the sad news today of the passing of Jill Schweitzer who has been a passionate advocate of basic human rights for homeowners in Arizona.

Some lights shine like very bright stars. They attract, mobilize, inspire, energize, amuse, and make you giggle and laugh at your own stupidity and yourself.
They make you appreciate the value of doing the right thing ….because it’s the right thing to do.
The tragic news of Jill’s passing today, which we just received, leaves us numb. Are we really writing this?

She was a true warrior. We all admired her immensely. We cannot believe we will never hear her chirpy voice on the phone ever again.

Let’s do her proud as she would want.

Click HERE to listen to Jill

The Arizona Homeowners Forum

Sunday, October 23, 2016

Where's the HOA's money First Service?

From: John Sellers []
Sent: Sunday, October 23, 2016 9:18 PM
To: Jeremy Ruskin <>
Subject: Whose money is it?
To: Jeremy Ruskin, Chief Financial Officer, FirstService Corporation Toronto
Dear Jeremy
I’m writing to you in response to the failure of FirstService in Scottsdale to provide timely evidence that the information I’m supplying them below is making its way up your compliance chain. If you have one. I believe these financial issues are way beyond their paygrade so you get to hear about it as CFO direct.  A lot of bankers don’t seem to understand them either.
I’m an ex banker currently working with a group of likeminded people and Arizona State Senator Farnsworth to make legislative changes for Arizona Homeowners Associations. One of the things we’re doing is following the money. It’s extremely disturbing already but even more so as we broadly collect basic banking information as to how HOA Management Companies, including yourselves, are running the cash. Here’s the issues which concern me, and I have intimate experience of all of them.
Four aspects manifest themselves, the first historical, plus three current risks
1.      The losses in Arizona in 2008 alone of almost $1 Billion by the FDIC in respect of First National Bank of Arizona (“FNBA”) and Desert Hills Bank (“DHB”). The successor to FNBA is Mutual of Omaha who you currently use for Vintage. FNBA, prior to the 2008 crisis, wholesale harvested, via Management Companies, such as yourselves, over $1bn in deposits over an extremely short period, of which only $75 million went back into HOA’s. This wholesale harvesting continues as evidenced by the broad documentation we’ve collected.
·         Are you aware of this?
·         Why do you think FNBA uninsured depositors had to be bailed out as well?
·         What was FirstServices's involvement in harvesting these deposits?
·         What happened to the other $925 million?
2.      The lack of basic “know your customer” banking procedures exposing the failure of proper anti-money laundering vetting as required by the Patriot Act. A fundamental tenet of anti-money laundering is the point of entry into the banking system. Know your customer. With your firm’s active participation, these principles are being ignored. You are acting as the client – not the HOA which owns the cash. Your system actively encourages HOA Board Members to be totally unaware of who they bank with. In almost all cases, the bank has no knowledge of who the account holders are. Only you have signing authorities over those bank accounts. HOA’s can be shuffled in and out of your package of banking authorities and you have total control over the cash. See attached HERE supplied by your local people.
·         Are you aware of this?
·         Your credit agreements with a group of banks place anti-money laundering controls on you as borrower under the Patriot Act. Why would you not practice those principles in your basic business of managing $Billions of HOA’s moneys?
·         Over $7billion flows through your company annually according to your own latest stock analyst presentation. How do you know that money is clean?
3.      The lack of controls over direct debit authorities you collect from homeowners for assessments and the risks this could pose to the ACH system overall by malicious intrusion. Management Companies are not banks. In fact, their basic job as totally unlicensed entities is to take care of landscaping and other mundane aspects. Management Companies however are receiving powers in their name from homeowners to debit their bank accounts. That's a depositary institutions role. In addition, I’m extremely and painfully familiar with double debit issues with the ACH, which is still batch based to my knowledge.
·         Even the 1 double debit via the ACH referenced below by your people is a bad sign. How many ACH double debits have you experienced amongst your totally unlicensed 15,000 employees?
·         Fraud is rampant in HOA’s. See recent examples we're familiar with ourselves HERE and HERE Very close to home for us.
·         Why are your people not even bonded?
·         What do you assess as the risk of one malicious ACH batch inserted into the $27 trillion p.a. ACH payment system as part of your $7 billion annually under management?
4.      The mingling of moneys by Management Companies which we already know is prevalent. This exposes HOA’s and their Management Companies to “substantive consolidation in bankruptcy”. The potential result - supposedly limited liability HOA nonprofit corporations become general partnerships where the General Partner is you, the Management Company. With a $1.4 Billion market capitalization, you as a company have a negative tangible net worth. See attached HERE extracts from your accounts. Even including goodwill, representing the intellectual value of your employees acquired through acquisitions, your totally secured debt still exceeds your net worth. HOA Management Companies are effectively running every aspect of HOA’s, acting as sole signatories on bank accounts, paying themselves as both signing payor and payee, indemnified for almost everything, named on the HOA’s insurance policy, and exercising total control over $Billions of cash. Management Companies are indistinguishable from their supposed clients who were often inherited from the developer by an HOA Board. Basic corporate governance rules relying on arms-length dealings built up over centuries of corporate law are being ignored. You have a mere $45 million of cash on your balance sheet, all of which originates from the gross $7 Billion of assessments you are collecting annually. You would certainly not be the first large company to discover the perils of cash mingling from the management of supposedly arms-length relationships. Ask Enron! In addition, you, by your own numbers and Zillow, are managing 1.5% of the nation’s housing stock amounting to $350 Billion. You and other Management Companies are acting as if you were depositary institutions, AND fiduciaries, completely unlicensed or supervised. Some Management Companies have amazingly written that they have no idea why we’re asking about bank accounts. And in some cases denied us them on the grounds they’re not Association records. Currently the Arizona Department of Real Estate has been assigned a monitoring role but:
·         Why should you not be licensed as financial institutions?
·         How many of your 15,000 employees would understand the importance of this – or even of debits and credits?
·         US Bank is the only member of your banking syndicate which to our knowledge does local HOA Banking, including for Vintage. Would you allow your own corporate cash accounts to be managed as loosely as this by third parties you did not even know?
·         Running an “asset light” business to leverage stock market returns as you are obviously marketing is far from new and fraught with failures. Your Management Agreement attached is by no means arms-length, albeit standard in the industry. I read that contract to say – the Management Company owns it all. So the question is - are you also liability light? The question of how much of the $350 Billion of assets you manage that you actually own will not be decided by you, stock market analysts, accountants, or even attorneys. It could be decided very soon by a bankruptcy judge. We are currently dealing with that with AMCOR Property Management and another property we own in a subdivision in in Prescott. This is hovering within days of bankruptcy. See Amcor has no idea what they have done. We plan to ensure they find out!
·         Do you understand this?
Our onion peeling as part of supporting the Farnsworth initiative continues. We actually have some HOA Management Companies refusing to disclose bank account signature cards on HOA Bank accounts, arguing they are the Management Company’s records, not the Association. Much of the above, apart from the bankruptcy aspects, is not rocket science. It's Banking 101. And Wells Fargo has learnt all about the risk of not managing bank account openings. Your banking syndicate and note holders are secured over all your assets. So, a couple of simple final questions:
·         Who actually owns title to all that cash you manage?
·         How big is your balance sheet really?
·         If FSV had an accident, who would control all that cash – the HOMEOWNERS or YOUR BANKS?
·         Subprime happened because financiers were too busy packaging risk, rather than understanding it at the individual level. Is this a repeat?

For legal reasons, this is being copied broadly and published on our blog at www.arizonahoa.blogspot as this may contain information not broadly disseminated to the markets. We’d welcome your comments as part of our efforts to rein in your industry with new legislation.

FSV Stock Analysts
FSV Revolving Credit Lender
See attached HERE
Senator Farnsworth, Chairman of the Arizona State Senate Financial Institutions Oversight Committee
Stephen Briggs Arizona Department of Financial Institutions
Senators Elizabeth Warren, John McCain, Jeff Flake
Office of Comptroller of the Currency Houston
Dennis May, AMCOR by fax

John Sellers
Cave Creek
Arizona 85331
Tel: 928 310 8220
From: []
Sent: Wednesday, October 19, 2016 10:08 PM
To:; Kelley Wood <>; Debborah Sellers <>
Subject: Money

Thank you for the Vintage at Grayhawk records. Kelley promised them at the Board meeting today where, as you know, my wife is President. I appreciate the timely response. I will study them.
My understanding from my wife is that the underlying lease with American Leasing has been solved with regards to the 3 yrs of overpayments. That's great. We appreciate your contribution.
In the interests of full disclosure, I helped set up the ACH system when at Chase in the 80's. The whole ACH system has now grown to $27 trillion and is a fundamental plank of every americans daily lives.
One of the biggest problems we had setting up the system originally was double debits. I thought we had fixed that problem which is related to the batching process which is a fundamental part of the ACH system.
I understand that one of the monthly payments to American Leasing was debited twice.
However trivial that may seem, I consider that potentially a very serious issue which I've already flagged to regulators. For many reasons.
FirstService is a public company which derives the bulk of its revenues from payments made by HOA members via the ACH.
1.       I would ask FirstService  to pursue a thorough investigation of why this ONE double debit occurred.You should be extremely concerned about that. In your place, I would refer it to your compliance officer at corporate headquarters.
2.       Should you not do so, I will, unless you provide prompt confirmation you have done so, refer it to them. Kindly confirm that referral and their contact details.
3.       I would like to know the results of that. Because one double debit is one too many. Books have to balance.
4.       Is this the only time this has happened with any HOA you manage?
5.       Please supply me with all the records you have related to the why, when, and how this single payment was double debited. Including communications with the bank on the HOA's behalf inquiring on this matter.
6.      Can we have a conference call with the bank officer who might understand and be able to explain what might be an innocent oversight?
7.      You as a company pursuant to SEC filings and the revolving credit your company has with a syndicate of banks led by my previous employer, have made certain representation with regards to the Patriot Act and the relevant anti-Money laundering provisions, which, having written such procedures, I'm extremely familiar with.
8.      Are you as a company prepared to represent that the banks you are depositing our funds with are compliant with those same anti-money laundering provisions?  See  Article 16.9 USA Patriot Act Notice and your corporate credit agreement attached
9.       If so, please provide that rationale because it escapes me at the moment.
Thanks again for your prompt response.
John Sellers
928 310 8220
From: Karl Gehring <>
Sent: Wednesday, October 19, 2016 04:28 PM
Subject: FW: Re : Vintage at Grayhawk Records Request
CC: Kelley Wood <>
Hello Mr. Sellers –
Thank you for your request for Vintage at Grayhawk’s records received by FirstService Residential on Thursday, October 6, 2016.  We have attached all the records you requested electronically via this email:
1.       A copy of all the Association’s bank account opening documentation including the names of the account signatories and signature cards
– Please see the two attached documents named #1a and #1b.
2.      Any and all account documentation including indemnities related to the handling of payments by members electronically, ACH credit card or other means
- Please see the attached document named #2
3.      A copy of the authorization we are supposed to give to you should we wish to pay by direct debit means via the Automated Clearing House(ACH)
FirstService Residential Arizona currently provides a direct debit payment option called Surepay and handled internally.  To enroll in this option, the homeowner must fill out our Online form located on our website at Once this form is submitted by the homeowner will receive a confirmation #.
4.      A copy of the HOA’s current insurance certificate
– Please see the attached document named #4.
5.      A copy of your insurance certificate
– Please see the attached document named #5.
6.      Copies of any bonding arrangements for any of your employees who have signing authority over the Associations moneys
- There are no bonding arrangements.  FirstService Residential Arizona, LLC maintains crime insurance coverage.

Please let me know if you have any questions,
Regional Director                                                                                                   
9000 E. Pima Center Parkway Suite 300 Scottsdale, AZ 85258
Direct 480-551-4202 | Fax 480-551-6021
From: John Sellers []
Sent: Thursday, October 06, 2016 8:59 AM
To: Kelley Wood <>
Subject: Re : Vintage at Grayhawk Records Request
Dear Ms Wood
This is a records request as a member of Vintage at Grayhawk pursuant to Arizona Revised Statute 33-1805 which must be satisfied within 10 business days:
Please provide, preferably electronically, the following:
1.      A copy of all the Association’s bank account opening documentation including the names of the account signatories and signature cards
2.      Any and all account documentation including indemnities related to the handling of payments by members electronically, ACH credit card or other means
3.      A copy of the authorization we are supposed to give to you should we wish to pay by direct debit means via the Automated Clearing House(ACH)
4.      A copy of the HOA’s current insurance certificate
5.      A copy of your insurance certificate
6.      Copies of any bonding arrangements for any of your employees who have signing authority over the Associations moneys.
7.      For your convenience a copy of ARS 33-1805 is below which exceptions to disclosure B1 through B5 obviously do not apply
Thank you/Sincerely
John Sellers

Thursday, October 13, 2016

Wot's a GENERAL LEDGER???????

As the Arizona Homeowner Forum gets ready to welcome our 25,000th visitor, the amazing feedback has produced some even more remarkable developments: 
  1. A number of CAI member Management Companies seem to be resisting giving up basic HOA records such as bank account details and related documents to members
  2. A number of HOA attorneys have even denied the term “General Ledger” exists when faced with requests for copies of this most basic of accounting records
  3. Even CAI has yet to fulfill our request for records we are entitled to under ARS 10.

See the attached below comprising:
  1. Exchanges with the CAI CAZ Director correcting her on a point of law related to ARS 10
  2. A request to the CAI’s own CPA, Michael Ginsburg, to correct this most basic of accounting misinformation on the General Ledger as a basic accounting term.
  3. The rebuttal of our offer to educate CAI members on the first known Arizona HOA bankruptcy announced by Carpenter Hazlewood recently for the Crossings in Prescott

See the attached
Sent: Thursday, October 13, 2016 3:29 PM
To: 'Kayte Comes' <>
Cc:;;;;; ; ; ;
Subject: RE: Request for Annual Report of CAI Central Arizona

You’ve had our request for two weeks now. If you were an HOA subject to the overriding effects of ARS 33, you would now be in default. .
Please respond promptly with the Annual Financial Statements

The Arizona Homeowners Forum
Visit our blog at
From: Kayte Comes []
Sent: Thursday, October 13, 2016 1:00 PM
To: John Sellers <>
Subject: RE: Request for Annual Report of CAI Central Arizona

Hello John,
I will look into your request, but Ginsberg & Dwailebee are not out auditors.  They prepare the annual taxes only. 
Thank you
Kayte Comes
Executive Director
Community Associations Institute
Central Arizona Chapter
From: John Sellers []
Sent: Thursday, October 13, 2016 12:51 PM
To: Kayte Comes <>
Subject: RE: Request for Annual Report of CAI Central Arizona

To: Kayte Comes
Executive Director
Community Associations Institute
Central Arizona Chapter
11225 N. 28th Drive, B102
CC: Michael Ginsburg CPA

In response to your email below, I’m well aware of that. But there is a difference between ARS 10-11602 which, as you correctly point, requires 6 months of membership for a much more exhaustive list of records, and ARS 10-11620.
I requested the records under that latter provision, namely Annual Financial Statements only. This provides that any member, without time limit of membership, is entitled to be furnished with, not inspect, a copy of them.  For the rest you have to wait 6 months. See highlighted section below. As you have a CPA, I assume his statements will be included. Kindly therefore supply the Annual Financial Statements by return please.
ON A SEPARATE ACCOUNTING NOTE, as the AHF blog approaches its 25,000th visitor, we’re getting a lot of amazing feedback from everywhere.
Some HOA members for instance are finding it easy to get basic banking records, others are not. Why there should be any doubt these records are available to members is beyond me. Records such as bank account opening documentation, signature cards and other standard banking documents are obviously fundamental records.
If you’ve visited our blog, you’ll know it was the General Ledger for the Crossings at Willow Creek HOA that was provided to the Prescott Police, as supplied by the HOA. This is the basis of their current investigation, based on our complaint against Dennis May of Amcor. I’ve attached that same document.
I’ve been staggered by the number of CAI AZ member firms, mostly attorneys, who are denying members copies of the Associations “General Ledger” on various grounds. The most common of which is they’ve never heard of that accounting term. Or it doesn’t exist. Or such request is not specific enough. That sounds like an attorney offering accounting advice, or worse.
So I’ve copied CAI’s auditor, Michael Ginsburg CPA, on this.
Michael, as you know the General Ledger is one of the fundamental accounting records. So this is absurd. CAN YOU PLEASE PROVIDE CONFIRMATION OF THAT, AND THE IMPORTANCE OF THE GENERAL LEDGER -PLEASE?
Kayte, I offered to write an article in response to your request. See below. I’ve heard nothing back. I have to assume you feel I’m not qualified. Is that the case?  

John Sellers on behalf of
The Arizona Homeowners Forum
Visit our blog at
From: John Sellers []
Sent: Tuesday, August 16, 2016 11:16 AM
Cc: 'Josh Bolen' <>;; 'Lydia A. Peirce Linsmeier' <>; 'James D. Atkinson' <>;
Subject: FW: Call for Magazine Articles - 2016 Fall Issue "Managing Your HOAs Finances... Tips to Save Money, Time, and Resources"
According to Josh Bolen, our HOA in Prescott is going to file bankruptcy within 30-60 days. See attached.
I have a lot of experience in bankruptcy and frankly it’s exciting professionally because you never know where it might end up. This includes:
1.      The $800mm rescue of Burmah Oil in the 1974 where we had to force the British Government to buy 40% of British Petroleum
2.      The $1bn bankruptcy of the Kendavis Group in 1984. They were the oil family in Fort Worth that inspired the TV series “Dallas”
3.      The near $6Bn bankruptcy of one of the largest Hotel chains in the world when I was at Citibank in 1990 just after the Gulf war started and the real estate market collapsed
4.      The first ever prepackaged bankruptcy for Resorts International (Merv Griffin)in 1988.
5.      There’s a few smaller ones too.
I also:
1.      I’m not an accountant thank goodness but came top of the JP Morgan training program in 1973 devised by Sandy Burton, SEC Chief Accountant
2.      Wrote the anti-money laundering procedures for the bank I ran in London owned by the Italian Government
3.      As relationship manager for Exxon at Chase in 1983 we set up for them what has now become one of the largest payment systems in the world - the ACH direct debit system which every HOA seems to use to collect payments
4.      If you check out our professional web site at I have slightly over $30billion of successful financings in infrastructure and were currently trying to work with the Governor’s office on some exciting new facilities.
So I’d be happy to write something if you feel my credentials are up to it. I’ll let you decide
Two questions:
  1. How many words?
  2. Can we get Josh Bolen to write a balancing article which can give the story of a bankruptcy from the inside? I’ve never been on the inside of one and I think it would be riveting to get that very unique perspective. We were always the ones cleaning up the mess. I’m sure there’s a lot we could learn from him. I’ve copied him and will let him respond.
John Sellers
From: Kayte Comes []
Sent: Thursday, October 13, 2016 10:44 AM
To: John Sellers <>
Subject: RE: Request for Annual Report of CAI Central Arizona

Hello John,
Per the Arizona Nonprofit Corporation Act below your membership will be at six months on November 19, 2016.  Your membership was purchased May 19, 2016.  At that time you can contact me and we can schedule a time for you to come to the Chapter office and review the financial statements that are eligible for members to review.  If you wish to make copies you can do so at our office.
Thank you
Arizona Nonprofit Corporation Act – 10-11602 – Inspection of Records by Members; Applicability

10-11620. Financial statements for members
A. Except as provided in the articles of incorporation or bylaws of a corporation organized primarily for religious purposes, a corporation on written demand from a member shall furnish that member its latest annual financial statements that may be consolidated or combined statements of the corporation and one or more of its subsidiaries or affiliates, as appropriate, and that include a balance sheet as of the end of the fiscal year and statement of operations for that year. If financial statements are prepared for the corporation on the basis of generally accepted accounting principles, the annual financial statements shall also be prepared on that basis.
B. If the annual financial statements are reported on by a certified public accountant, that report shall accompany them. If not, the statements shall be accompanied by a statement of the president or the person responsible for the corporation's accounting records both:
1. Stating that person's reasonable belief whether the statements were prepared on the basis of generally accepted accounting principles and, if not, describing the basis of preparation.
2. Describing any respects in which the statements were not prepared on a basis of accounting consistent with the statements prepared for the preceding year.

Kayte Comes
Executive Director
Community Associations Institute
Central Arizona Chapter
11225 N. 28th Drive, B102
From: John Sellers []
Sent: Saturday, October 01, 2016 1:28 PM
To: Kayte Comes <>
Subject: Request for Annual Report of CAI Central Arizona
Pursuant to ARS 10-11620. Financial statements for members, can you please supply me with a copy of the most recent accounts of the corporation
Thank you
On behalf of the Arizona Homeowners Forum
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