HUD 5.1.12.5: How Innotion Broke Away From Safeguard Properties

Al Espinoza and Amos Alexander, the Chief Executive and Chief Operating Officers respectively of Innotion Enterprises had a problem. That problem was Safeguard Properties and Robert Klein. While both are Members of the National Association of Mortgage Field Services, this was a story of two juggernauts screwing each other and the tax payers on the side lines.

While many are not familiar with the fact that Amos and Al had a relationship that went South with Klein, the below will show in one series of emails wherein a third party verified such,

MR. BURKS, I TRIED CONTACTED YOU ON 4/4/12 CONCERNING THIS CASE IN RESPONSE TO A MESSAGE THAT I RECEIVED FROM YOU. I LEFT SEVERAL MESSAGES AT THE PHONE NUMBERS THAT YOU PROVIDED IN YOUR MESSAGE, THOSE NUMBERS BEING 1-404-331-5001/ 1-678-733-2661. IN ADDITION I HAVE BEEN IN CONTACT WITH NUMEROUS PEOPLE CONCERNING THIS CASE.

ON 1/10/12, THE DAY THE PROPERTY WAS CITED CONCERNING CASE CE12010643 I ATTEMPTED TO MAKE CONTACT WITH A COMPANY NAMED INNOTION ENTERPRISES INC 1-877-483-6468 THAT WAS ON A SIGN POSTED ON THE DWELLING ON THIS PROPERTY. I MADE CONTACT WITH AND EMPLOYEE NAMED MAGGIE WHO ADVISED THAT SHE WOULD LOOK INTO THIS MATTER AND HAVE IT ADDRESSED.

ON 1/22/12 I RECEIVED AN E-MAIL FROM CHRISTIAN REKLINSKI OF SAFEGUARD PROPERTIES 877-340-0060 P: 800-852-8306 X 1161 F: 216-447-8246CHRISTIAN.REKLINSKI@SAFEGUARDPROPERTIES. HE ADVISED THAT HE WOULD
MAKE CONTACT WITH H.U.D. TO ADDRESS THIS CASE.

ON 2/27/12 I AGAIN HAD E-MAIL CORRESPONDENCE WITH MR. REKLINSKI WHO ADVISED ME THAT BIDS WERE CURRENTLY BEING ACCEPTED AT THIS TIME TO ADDRESS THE VIOLATION IN REGARDS TO THIS CASE (FENCE IN DISREPAIR)

ON 4/2/12 I FOUND A FOR RENT SIGN POSTED ON THE PROPERTY LISTING A CONTACT NUMBER 954-309-3059. I LEFT A MESSAGE FOR THE PERSON LISTING THIS PROPERTY. I LEFT A VOICE MESSAGE REQUESTING THAT THEY CONTACT ME.

ON 4/4/12 I WAS CONTACTED BY A PROSPECTIVE BUYER OF THIS PROPERTY NAMED MATT YOUNG 954-309-3059 CONCERNING THIS CASE. HE ADVISED THAT HE WAS IN THE PROCESS OF BUYING THE PROPERTY AND THAT
HE WOULD MAKE SURE THAT THE ISSUE CONCERNING THE FENCE WAS ADDRESSED. IN ADDITION THE PROPERTY WAS CITED FOR A BULK TRASH VIOLATION THAT MR. YOUNG CORRECTED.

ON 4/5/12 I WAS CONTACTED BY JENNIFER 1-561-482-9365 OF SURVIVAL TITLE CONCERNING THIS PROPERTY. SHE WAS ADVISED THAT THERE ARE NO OUTSTANDING FINES OR LIENS ON THE PROPERTY.

AS YOU CAN SEE I HAVE BEEN NOTHING BUT DILIGENT IN MAKING CONTACT OR ATTEMPTING TO MAKE CONTACT WITH ANYONE ASSOCIATED WITH THIS PROPERTY. FOR YOU TO MAKE A STATEMENT THAT YOU HAVE LEFT  SEVERAL MESSAGES AND THAT I NEVER RETURNED YOUR CALLS IS INACCURATE. AS PER MY RECORDS YOU ATTEMPTED TO MAKE CONTACT WITH ME ONCE. I RETURNED YOUR CALL THE SAME DAY AND LEFT VOICE MESSAGES FOR YOU TO TRY AND CONTACT ME AGAIN. I WOULD SUGGEST THAT YOU TRY AND CONTACT ME AGAIN. I
WORK SUNDAY ? FRIDAY 7:30AM-4PM AND YOU CAN REACH ME DIRECTLY AT 954-828-5658 OR 954-336-9445. THANK YOU AND HAVE A GREAT DAY!

FROM: BURKS, JOHN A
[MAILTO:JOHN.A.BURKS@HUD.GOV]
SENT: FRIDAY, APRIL 13, 2012 9:29 AM
TO: SALVATORE VISCUSI
SUBJECT: 2771 NW 23 ST, FT. LAUDERDALE FL 33311

PLEASE CONTACT ME AS SOON AS YOU ARE ABLE IN REFERENCE TO CODE VIOLATIONS ON THIS PROPERTY.

FROM: CHRISTIAN REKLINSKI
[MAILTO:CHRISTIAN.REKLINSKI@SAFEGUARDPROPERTIES.COM]
SENT: WEDNESDAY, FEBRUARY 29, 2012 3:32 PM
TO: SALVATORE VISCUSI
CC: JOHN GOSSMAN
SUBJECT: RE: 2771 NW 23 ST, FT.
LAUDERDALE FL 33311

SIR,

BIDS WERE PREVIOUSLY PROVIDED TO THE MORTGAGE COMPANY TO ADDRESS THE FENCE. IT LOOKS LIKE WE NEVER RECEIVED APPROVAL. I HAVE A MESSAGE IN TO OUR CLIENT ADVISING THE PROPERTY REMAINS IN
VIOLATION AND ASKED HOW WE ARE TO PROCEED.

THANK YOU,

CHRISTIAN M. REKLINSKI
CODE VIOLATIONS TEAM LEAD
SAFEGUARD PROPERTIES
877-340-0060
P: 800-852-8306 X 1161
F: 216-447-8246
CHRISTIAN.REKLINSKI@SAFEGUARDPROPERTIES

I belabored several of the voluminous amount of emails we have harvested through multiple Freedom of Information Act Requests (FOIA) and other means to show that obviously there was a business relationship between Amos and Al and Klein. While, at first blush, the dialog may look innocent enough, it shows the depths of convolution which Safeguard Properties and Innotion Enterprises, in conjunction with the US Government, were willing to go to stymie a Florida Code Inspector.

Amos and Al were having some serious issues with Safeguard Properties during the US Department of Housing and Urban Development‘s M&M 3.0 Contract. HUD’s Office of the Inspector General was breathing furiously down their neck. In Nevada, Innotion was dramatically failing and even the resubmission of doctored photographs were not calling off the dogs.

Amos and Al wanted away from Robert Klein and wanted away bad. It became so embroiled that Safeguard Properties collectively sued Innotion Enterprises in multiple states when Amos and Al said they wanted to part company. Odd, as Safeguard Properties was really the life blood of Innotion Enterprises at the time. Not only were they the life blood for Amos and Al revenue wise, they also predominately handled all of the staffing at the time.

Fast forward, today, wherein Innotion Enterprises is actually covering Illinois for Safeguard Properties and you have a Comedy of Errors. More on that, the BLM REO and Mike Murphy with REAMS LLC issues under the Illinois Attorney General’s suit in another Article!

What do you do? You have a Deal with the Great Satan; you don’t turn your back on Him. Enter Craig Karnes, the Director of HUDs Marketing and Management Department. Having nowhere else to turn, Innotion Enterprises needed a backdoor to extricate themselves. Whom better to create the scenario than Craig “I’ll Sell You A Contract” Karnes?! In a scene straight out of Captain Save A Ho, Karnes immediately began churning out an archaic and to this day unimplementable regulation known as HUD 5.1.12.5,

5.1.12.5  Prohibition on Pre-Conveyance Preservation and Protection Work The Field Service Manager or its agent is prohibited from performing both pre-conveyance work on FHA Single Family Insured properties. In the event that the a Field Service Manager or its agent performs pre-conveyance work, the fees associated with post-conveyance work are expressly unallowable and will not be paid. The Field Service Manager must obtain written certification on an annual basis from its subcontractors affirming that they do not perform pre-conveyance work on FHA Single Family Insured properties.

What did Karnes get for bringing this “out” about for Innotion Enterprises? I don’t know, but several of my Sources have very pointed opinions.

You do this for The Family, comes to mind. Now, I am waiting on a FOIA Request for Karnes’ Receipts during his US Army Contracting Tour and within HUD. While I have found some, I am sure that we are going to find him outside of the Office while meeting with potential Awardees. Does Ruth A. Lisa know anything? Maybe.

So, HUD 5.1.12.5 finally brought some limited relief to Amos and Al. Granted, it was short lived. Dealing with the insanity of financing BLM REO, REAMS LLC — and the $750,000 Will Milling Note — and Mike Murphy, Innotion Enterprises was right back where it started.

When you look at Companies like Innotion Enterprises, AMSREO, and other Members of the National Association of Mortgage Field Services, you see an incestuous Family Tree which is a straight line. The word corruption is no longer supposition; it is rote. Moving the Federal Housing Administration (FHA) pre conveyance properties along with post conveyance properties by the same by staff and contractors has never been a concern for anyone. Why? Call Craig “The Fixer” Karnes and he will give you a pass — just like he did for BLB Resources and Matt Martin Real Estate Management. My honest belief is that if you Pay Craig Karnes enough money, you can Play.

So, while a thumbnail sketch of the genesis of HUD 5.1.12.5, this Article gives Contractors a little bit better understanding of precisely how corrupt the Property Preservation Industry is — as if the Members of the National Association of Mortgage Field Services and Eric Miller hadn’t already tipped you off.

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