The continuing five year saga of the Involuntary Bankruptcy of National Field Network (NFN) has captured yet another offender, Jack Jaffa. Jaffa, the owner of Jaffa & Associates was also the sole owner of NFN. While not directly associated with Safeguard Properties CEO Alan Jaffa, both firms operate in the Mortgage Field Services Industry. Many will remember Foreclosurepedia working with the initial three brave members of Labor whom spearheaded the litigation while the rest of the Industry sat back waiting to reap the benefits.
The current Trustee, Andrea Dobin, initiated this round of litigation at Adv. Pro. No. 20-1648 (CMG) against Jack Jaffa, Shari Nott and Christopher Crandell. Crandell, whom owed $1,349,087.09 was granted a pass by the Trustee and ended up owing “$15,000, payable over 6 months, commencing on June 15, 2021,” according to court records. Dobin doubled down on the free passes when it came to Jaffa. Out of the $1,850,000 owed, Jaffa was allowed to settle for $300,000 and then only $60,000 paid up front and $240,000 in 12 monthly installments. In both cases Crandell and Jaffa must cooperate as witnesses, if necessary.
The Debtor was formed in 2009 and was in the business of providing default services, including property preservation services, to banks and other institutions. The Debtor was owned by Jaffa, and Nott was hired in 2009 to operate the Debtor’s business, eventually becoming its Chief Executive Officer.
In 2010, Crandell was hired as the Debtor’s Chief Operating Officer. On April 6, 2018 (the “Petition Date”), an involuntary Chapter 7 petition was filed against the Debtor under Chapter 7 of the Bankruptcy Code (11 U.S.C. § 101, et seq.) in the United States Bankruptcy Court for the District of New Jersey. On April 23, 2018, the Debtor filed a Motion to convert the Chapter 7 case to Chapter 11 (Docket No. 13), which was granted by Order entered April 25, 2018 (Docket No. 15).
On or about July 20, 2018, a Creditors Committee was formed (Docket No. 64). On or about April 2, 2019, the Chapter 11 case was converted to Chapter 7 (Docket No. 137). On April 3, 2019, Bunce D. Atkinson, Esq. (“Original Trustee”) was appointed to serve as the Chapter 7 Trustee (Docket Nos. 138 and 139). On July 20, 2020, the Trustee was appointed as the successor — Andrea Dobin — Chapter 7 Trustee to the Original Trustee (Docket Nos. 178 and 179). On December 30, 2020, the Trustee filed the Adversary Proceeding, seeking to recover alleged preferential payments and fraudulent transfers made by the Debtor to each of the Defendants, recover property of the Estate as it related to Nott, and for related relief.
The final proverbial head to mount on Foreclosurepedia’s trophy wall is that of Shari Nott. The Fraud Four, including Mohamed Seif, pushed out work orders while simultaneously clawing back monies owed to Labor under a spurious chargeback scheme. These actions allowed Nott to draw a salary of $350,000 plus other benefits including additional salary advances of $1,088,517.55. While this, in and of itself, was heinous, Nott’s receiving of $6,039,586.10 from NFN was the straw that broke the camel’s back. This is how it was described in federal court documents,
The Nott Loan is comprised of various personal expenses, e.g., funds in excess of $500,000 made available to Nott to purchase a residence in Long Branch, New Jersey, to funds advanced related to vacation homes in the Bahamas, luxury vehicles, including a Thunderbird, multiple Audi vehicles, a specialty Tesla vehicle and a Ford Explorer, to payment of contractors who did personal work for Nott at her various residences and/or other business ventures.
Additionally, around April of 2018, NFN, Nott, Crandell, Oglensky, NFN Now, Investments, ATRM DEPA, Trio and Commigrate entered into a “Mutual Release and Transfer Agreement,” which provided that Nott, Oglensky, NFN Now, Investments and Commigrate would pay $60,000 in exchange for the transfer of Crandell’s interests in ATRM DE/PA, Investments and Commigrate to Nott, and his interests in NFN Now to Oglensky.
American Express was sued for $1,590,997.86 and settled for $434,510.46. Bank of America was sued for $1,469,000 and settled for $700,000. Yet more sweetheart deals granted by the Trustee.
The true story, though, is not about the sweetheart deals afforded to The Fraud Four. It is about the hundreds of thousands of dollars that the lawyers are bilking the Estate for. At $400 an hour it’s not a bad gig. For example, the lawyers representing the current Trustee, Andrea Dobin, submitted a bill for $123,477.03. For a 6 minute review of an email — and how you get that detailed I have NO IDEA — on 02 October 2020 the bill was $41.50 according to court documents.
Millions upon millions of dollars waived for corporations and paid to lawyers and still nothing paid to the victims. And we haven’t even begun to discuss what the Trustee has termed, “The Nott Loan [which] is comprised of various personal expenses, e.g., funds in excess of $500,000 made available to Nott to purchase a residence in Long Branch, New Jersey, to funds advanced related to vacation homes in the Bahamas, luxury vehicles, including a Thunderbird, multiple Audi vehicles, a specialty Tesla vehicle and a Ford Explorer, to payment of contractors who did personal work for Nott at her various residences and/or other business ventures.”
We haven’t even discussed the millions of dollars funneled into Plan A for $5,000, Chick-Chak for $12,111.98, Investments for $581,409.07, or NFN Now for $1,070,522.49. I have little or no doubt that those monies will never be collected nor will any of the property that Nott bought with Labor’s money be liquidated.
The case has become so murky that it is almost impossible to separate the original offenders from the lawyers involved. To that point, when the case is finally over, Foreclosurepedia will break it all down, dollar by dollar; connection by connection, and remind Labor why the Mortgage Field Services Industry is one of the most dangerous industries to work in. Our thanks goes out to the International Association of Mortgage Field Services (IAFST) whom has provided both capital and technological assets in our coverage of this story. The IAFST is truly the Trade Association of Labor!