Wednesday, March 22, 2017

FDIC Insurance on Mutual of Omaha HOA Deposits

From: John Sellers []
Sent: Wednesday, March 22, 2017 12:11 PM
To: Eugene Twellman <>
Cc: Mutual of Omaha Bankers
Subject: FDIC Insurance on Mutual of Omaha HOA Deposits

Mr. Twellman
Our last communication was with regards to the attendance at the recent OAH Hearing of Belinda Chavira. Remarkably the objection to her subpoena came not from you, but from Carpenter Hazlewood. Quite why our HOA’s insurer would pay for that has yet to be determined.
The results of the Hearing will be available in a few weeks as Carpenter Hazlewood threw a Hail Mary at the end of the Hearing asking for the chance to clarify what a “record” is.
Regardless of that, some remarkable information was obtained:
  1. Mr. Vasquez of Trestle Management confirmed under oath that read only user names and passwords for ALL HOA members are available for Mutual of Omaha Bank Accounts.
  2. He also testified that Trestle are NOT acting in a Fiduciary Capacity with regards to the HOA’s Bank Account with you. Click HERE for the audio extract
    • This is despite the fact that your account documentation provides an option for the party involved to be designated as a fiduciary.
  3. The FDIC’s written position appears very clear to us in response to a specific inquiry. Click HERE
  4. No such designation is shown. In fact it’s not clear from the bank statement account title whether the account is 50/50 Trestle/HOA or what? Click HERE
  5. Not only that, but a Management Company is not Schwab. There is a huge difference as you will know between a mere Agent and a Fiduciary
  6. Furthermore, no signature cards for the HOAs account apparently exist. This is despite the fact we have those signature cards from other HOA’s. Click HERE
  7. In that case though the TAX EIN in your bank records is that of the Management Company – NOT THE HOA
  8. We are reliably informed by other banks of the importance of the HOA’s EIN in your records for FDIC insurance to flow through.
A few questions:
  1. Given all the above, are deposits with you properly insured in the name of the HOA?
  2. Why did not your attached letter resigning not show the true legal status of your “depositor”? Click HERE
  3. What SIC code are you using for HOA deposits?
  4. You benefitted from $862mm of FDIC moneys in acquiring CAB. That included bailing out uninsured depositors as well. You now have $4billion of HOA deposits. Are you assuming a repeat of 2008 in 2017 should your extensive real estate portfolio turn sour?

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