Sun Mar 3 21:46:49 EST 2024
Home Blog

Eduard San Roman’s Bounced Checks and the HUD M&M FSM Awards

Eduardo San Roman, owner of 24 Asset Management, a Housing and Urban Development (HUD) Management and Marketing (M&M) Field Service Manager (FSM) Awardee, was finally caught, literally, with his signature. And what are we referring to, here? Since the winding down of Assero without bankruptcy, a subsidiary in all but name of 24 Asset Management, nearly one million dollars owed to Labor failed to be paid. This, while Lee Mertins and Eduardo San Roman were paid by Fannie Mae and LoanCare for the services rendered by the victims. Were that all that had occurred, no party no foul, as that is the pattern and practice of the National Association of Mortgage Field Services (NAMFS) members going back before the turn of the century. It wasn’t, though. Those same monies never paid to the victims were recorded as paid and fraudulently entered upon IRS 1099’s and delivered to both the IRS and the victims in this matter. And were that the entirety of the case, it would simply be yet another failure of both HUD and the US government to properly investigate and perform due diligence upon HUD Awardees.

The predication of the refusal by Craig Karnes, HUD’s Acting Deputy Director of Procurement, to remove 24 Asset Management as a HUD M&M FSM Awardee has been that Eduardo San Roman has never actively engaged in the fraud at Assero. In fact, in rarely seen verbal gymnastics of Olympian level, the final opinions issued were that San Roman may, in fact, legally control Assero; however, he never engaged in the financial decisions. This is an outright lie and today we have the proof as seen below.

It is one thing to simply refuse to pay people because you are committing fraud, but it is a completely different matter to sign checks, cause them to be delivered and deposited, and then stop payment on them. That is precisely what Eduardo San Roman did. Not just once, not just twice, but multiple times in a way last seen during the Buczek Enterprises fraud we reported upon heavily. Fact of the matter, though, is that Karnes has done everything in his power to protect Eduardo San Roman and Karnes’ personally vested interest in 24 Asset Management’s HUD M&M FSM 3.12 Award is beyond the pale. Karnes was notified about the latest fraud and remained radio silent, as we say. And it is this conceit and concealment on the part of Karnes and San Roman that allows the conflict of interest in the Awards made to 24 Asset Management to pose a conflict of interest against the welfare of US taxpayers. At minimum, this should demand the reprimanding of Karnes himself — if not outright firing — and the disqualification of 24 Asset Management as a HUD M&M FSM Awardee.

The bright lining of the horrific misconduct ongoing at HUD and the fraud perpetrated upon not only the victims, but the Internal Revenue Service, is egregious, at best, and constitutes a conspiracy that crosses state lines, using electronic means, in the furtherance of artifices and schemes — RICO. In fact, I submit that the last time we saw this type of behavior was in an FBI investigation into Defense Department Procurement fraud today known as Operation Illwind. In full disclosure, it should be noted that Karnes originated within Army Procurement prior to his HUD career, now in procurement.

On June 14, 1988, a major multi-agency investigation into defense procurement fraud — later codenamed Operation Illwind, a likely reference to an old English proverb — was announced to the world via a one-page press statement. By the time the dust had settled several years later, the case revealed that some Defense Department employees had taken bribes from businesses in exchange for inside information on procurement bids that helped some of the nation’s largest military contractors win lucrative weapons systems deals. More than 60 contractors, consultants, and government officials were ultimately prosecuted —including a high-ranking Pentagon assistant secretary and a deputy assistant secretary of the Navy. As a monetary measure of the significance of the crimes, the case resulted in a total of $622 million worth of fines, recoveries, restitutions, and forfeitures. Whether or not Karnes was there at the time is unknown.

This is simply the latest refusal of Karnes to actively engage in ongoing fraud under his watch. Originally, in the whistleblower lawsuit against Five Brothers and US Bank, and most recently in the multi-million dollar Involuntary Bankruptcy of National Field Network (NFN), Fannie Mae, under HUD conservatorship, has been involved. And in the latter case, Fannie Mae was ordered to pay back tens of thousands of dollars to victims for actions occurring under the ever watchful eye of HUD and Karnes. So heinous was the Involuntary Bankruptcy of NFN, which Karnes had full knowledge about, the US Bankruptcy Trustee Andrea Dobin put it it like this,

The Trustee recognizes that many of the creditors in this proceeding have suffered more than just a monetary loss at the hands of the Debtor as operated by [Shari] Nott — the are actual victims, which have had their business lives and personal affairs devastated by this Debtor and Nott. — Note that the emphasis on victims is that of the Trustee.

It is time for a special counsel be appointed to review the decades of fraud committed by Fannie Mae, Freddie Mac, and HUD pre and post conveyance Prime Vendors and their order mills. It is time to sterilize the HUD Atlanta offices with the cleansing effects of transparency not only with respect to the fraud, but allowing the US taxpayers to understand when and why firms are removed from the HUD M&M FSM. And it is time that the US government begin to actually prosecute the offenders much like the FBI did with Operation Illwind.

NAMFS Board of Directors Begins Support of Gender Preference

It takes a lot for me to be surprised when it comes to the National Association of Mortgage Field Services (NAMFS) and now one of the most liberal NAMFS Board of Directors I have ever seen. Cartel like activity? Check. Fraud? Definitely check. The potential to use illegal aliens to undercut American Labor? Check. The apparent subscription to the principles of DEI? Check. LGBTQ gender affirmation? Whoa, stop the presses. What as in WTF? You simply cannot make this shit up. So, Eric Miller, NAMFS Executive Director and the . . .

To read the article Subscribe today!



HUD Secretary Marcia Fudge’s Collusion of IRS Tax Fraud by 24 Asset Management

For years, the names Lee Mertins and Eduardo San Roman have been connected to both Assero --- website now removed --- and 24 Asset Management. A simple state corporation search in Pennsylvania and Florida connect the dots. Mertins pre-dates the current fraud by almost a decade wherein he cooked the books at Asset Management Specialists (AMS), which sold off to Mortgage Contracting Services (MCS) according to many people including co-workers and an originator of work to AMS. The record is . . .

To read the article Subscribe today!



FI: Litigation Caused By Prime Vendors Greed Shouldered By Labor

When NAMFS member Vicki Boser, former owner of InsuranceTek, was convicted of insurance fraud, NAMFS Executive Director Eric Miller attempted to bury the story. Boser sold hundreds of thousands of dollars in fraudulent insurance policies throughout the Industry. In fact, so concerned was Miller about Foreclosurepedia’s reporting on the matter that Brian Carney, the then Executive Vice President of the Cochrane Agency and former NAMFS member began tracking our email communications, without consent. The scheme was beautiful in that as they wound down InsuranceTek, they brought in the Cochrane Agency in an attempt to take over policies and keep the matter quiet. That didn’t work out too well and Boser pulled a two year hitch in a federal penitentiary and was ordered to pay restitution of $273,137 to 8 different companies or insurance brokers who she defrauded.

For years, there has been a shadow insurance domination over the Industry that only pays claims to Prime Vendors as a money laundering operation. The NAMFS Big 3 insurance providers have now all, but in name, become Ponzi operators in our Industry. And this is not a new claim. It is predated by the first whistleblower lawsuit brought against Five Brothers and US Bank over a decade ago.

Earlier this week, a new angle on the insurance and litigation scams hit our Industry. With volumes at all time lows and ironically pricing to Prime Vendors from Fannie Mae, Freddie Mac, and HUD at all time highs any impact upon the status quo may tip the balance from simply breaking even to bankruptcy. And as usual, Prime Vendors are laying their costs directly upon Labor. Take Jennifer — the name has been changed due to fear of losing what little work the company has — for example. Things were hard enough for her anyway as she watched firms around her receiving higher pay as the demands on her production continued to be increased daily. The Prime Vendor had worked with her, for years, without issue; however, the cliquish vendor managers whom were given free rein to change her contract with the simple email at will was beginning to concern her. Requests for clarification were going unanswered from the Prime Vendor’s C Suite staff. In conjunction with the latest demands on timelines and the off loading of the contracts to AffirmData by the Prime Vendor, she thought that it was as bad as it could get. Jennifer was wrong.

For months, Jennifer’s inspectors had been reporting that a residential asset had been occupied. And for months the Prime Vendor was pushing back on the reporting. We know that at least as high up as the Prime Vendor’s Director of Vendor Management was aware of the new push by the institutional owners of the Prime Vendor for higher returns. When taken in conjunction with the motivation for bonuses that the Prime Vendor’s staff gained from the assets, once in foreclosure, the guardrails of homeowner protection evaporated.

The problem with C Suite staff no longer controlling their employees and further outsourcing virtually all operations to AffirmData — foreign nationals — without creating the contractual ability to challenge the decisions ongoing overseas is that you have an enormous rate of attrition when it comes to Labor. When you are owned by an institutional firm, it doesn’t matter. In fact, when the need to produce to support your own company is removed, the hiring based upon bra size becomes the norm. Profits Before People became the mantra in the Prime Vendor’s pit where Jennifer’s fate was held. Vender Managers had become upset with the continued occupation of the asset her inspectors continued to report. So, the Vendor Managers decided to put one of their own in play to get the results that they wanted.

Under the Prime Vendor’s owners careful and watchful eyes the asset was ruled unoccupied after months of steadily being reported as occupied. And while the ownership denies their active role, at the end of the day it is their reporting upon the 10Q and 10K reports that holds the most weight. And whether sexually motivated, as suggested by many former employees, or simply greed the actions of the Prime Vendor was countered by a massive lawsuit against the Prime Vendor.

The facts were clear: For but the actions of the Prime Vendor, Jennifer would have never been sued. Even more horrific was the thousands of dollars that had to be shelled out because one if not both of the Prime Vendor’s owners could not keep their proverbial dicks in their pants. It is not the first time nor will it be the last time. With that said, though, many are asking why someone doesn’t simply drop the evidence into an envelope and send it anonymously to the unknowing spouses? Sounds like a damn good idea to me.

Lawyers from multiple Plaintiffs have already reached out to Foreclosurepedia requesting information on this and similar matters including employee misclassification. While we take each request seriously, we take our responsibility to our Sources more so. Provided that we are capable of delivering information that does not violate our Source’s identity, we are always more than willing to oblige.

So, here Jennifer sits today pondering why others are being paid more for inspections than she. In fact, she sent that same question to the International Association of Field Service Technicians (IAFST) as she is a Member of the Association. What their response will be, is unknown. What Foreclosurepedia’s response is that the Prime Vendor needs to pay the expenses of their lawyer based upon the Prime Vendor’s wreckless disregard for Industry standards. Moreover, though, an increase in pay for all should be the norm not simply for the few. And the end of the reduction in volume from those whom have received pay increases. Finally, and end must come to the use of emails from the Big Bra Club attempting to circumvent contractual law and issue changes to binding Master Services Agreements.

And like all things NAMFS, the very same fraudulent insurance that was sold by Boser is what exists in the Industry, today. Problem was that the current fraudulent insurance in our Industry refused to protect Jennifer in any way, shape, or form. It begs the question of why insurance is paid for in this Industry, at all.

This is the first in a series of FI: Foreclosurepedia Investigates. If you have a topic you would like to discuss, feel free to click the News Tip / Op Ed at the top of our Main Page or located here. Later this week, our next FI will cover a handful of contractors whom are pushing forward with employee misclassification against a former HUD M&M FSM Awardee.

VRM Kicking in the Doors of Veterans Like an Iraqi Redux 2.0

On a daily basis, hundreds of thousands of veterans are targeted, like a precision military operation, by NAMFS member Vendor Resource Management (VRM) on foreclosure orders. Many of these originate from Mr Cooper --- the former cleaned up name of Nationstar. While some of these foreclosures may be legitimate in nature, the vast majority of them deal with COVID forbearances. And while the rest of the mortgages issued to civilians simply had the forbearances added to the back of the loan, with the then upper . . .

To read the article Subscribe today!