Robert Paisola is the President and Chief Executive Officer of The Western Capital Group of Companies based in Los Angeles, California. This is the forum where Mr. Paisola will discuss his thoughts and feelings on the days events. Robert Paisola is also a Freelance Reporter: Robert@RobertPaisola.com 1-877-517-9555 WESTERNCAPITALHOA.COM : HELPING CORRUPT HOME OWNER COMMUNITIES NATIONWIDE
Showing posts with label Asset Acceptance takes a 59 percent bath in profits.The Robert Paisola Foundation. Show all posts
Showing posts with label Asset Acceptance takes a 59 percent bath in profits.The Robert Paisola Foundation. Show all posts
Utah Man Charged With Operating Real Estate Ponzi Scheme
Jeffrey Lane Mowen, 47, Lindon, Utah, is charged in federal indictment, returned by a grand jury in February 2009, recently unsealed, with three counts of wire fraud for allegedly receiving more than $18 million for investment in one of two prorams touted to investors - a real estate leveraging program or a foriegn currency trading program. Law enforcement authorities believe Mowen is currently living outside of the United States. An arrest warrant was issued when the indictment was returned, however Mowen had not been located. The potential maximum penalty for each count of wire fraud is 20 years and a fine of $250,000.
Contrary to Mowen's representations to investors that he was investing their money in a foreign currency trading or real estate leveraging program, the indictment alleges he used the funds to purchase more than 200 high-end antique, classic, and modern vehicles, including cars, trucks, trailers, motorcycles, threewheelers, and other vehicles. Mowen used these vehicles as symbols of his success to investors, according to the indictment. The indictment also alleges Mowen used investor funds to, among other purposes, pay for personal expenses, including payments to himself and his wife, dining expenses, vehicle storage fees, travel, utilities, and credit card expenses.
The indictment alleges individuals invested millions of dollars in Mowen's investment programs. One investor, T.F., invested more than $18 million of pooled investor funds with Mowen for use in his real estate leveraging program from November 2006 to around June 2007. T.F. also invested approximately $100,000 during October 2006 with Mowen for use in his foreign currency trading program after Mowen promised him a return of 33 percent per month, the indictment charges. Another investor, J.B., invested approximately $550,000 with Mowen from around May 2007 to October 2007 for use in Mowen's foreign currency trading program.
The indictment alleges that Mowen paid investment returns to investors using old and new investor funds (commonly known as "Ponzi payments") giving investors the false and misleading impression that such payments and returns were from the investment programs. When the payments to T.F. stopped in November 2007, the indictment alleges Mowen lulled investors through a string of false excuses which continued well into 2008. Ponzi payments to J.B. stopped in May 2008. Other than the Ponzi payments in 2007 and 2008, and vehicles given to some investors, investors lost their entire investment.
Defendants charged in indictments are presumed innocent unless or until proven guilty in court. The case is being investigated by the FBI. The SEC Denver Regional Office also has provided assistance and cooperation.
Law enforcement authorities are still determining how many victims of Mowen's alleged Ponzi scheme there may be. Individuals who believe they may be a victim of the conduct charged in the indictment can contact the FBI in Salt Lake City.
If you are a victim of this scam please send your direct comments to investigations@mycollector.com
Sandra L. Bielanski of OSI Collection Services Inc. was charged last week with crimes in her role of covering up a six-year over billing spree in the state of New Jersey that resulted in the state overpaying the debt collector by more than $1 million.
The attorney general in New Jersey announced last week that a former sales director at Outsourcing Solutions, Inc. had been charged with various crimes stemming from her role in overbhttp://www.osi-careers.com/about.htmlilling the state for collection services and subsequently covering up the actions and undermining a government investigation.
New Jersey Attorney General Anne Milgram and Criminal Justice Director Deborah L. Gramiccion said in a press release that Sandra Bielanski was being charged with theft by deception, misconduct by a corporate official, and five counts of making false contract payment claims. The office noted that all charges represented second-degree crimes.
The indictments are the latest in a series of actions resulting from a lengthy investigation of OSI billing practices between January 1999 and May 2005. The state claims that OSI overbilled for collection services by more than $1 million in the period. In addition, OSI employees provided gifts to New Jersey officials to ensure the contract would continue.
In February 2007, OSI agreed to pay the state nearly $2 million to resolve issues of over billing and provision of illegal gifts to state employees (“OSI to Pay Nearly $2 million to Settle New Jersey Collection Contract Dispute,” Feb. 7, 2007). But legal action against individual OSI employees and state officials has been ongoing.
OSI noted at the time that all employees involved in the indiscretions were dismissed.
Bielanski was charged last week primarily for her role in covering up the overbilling. The indictment alleges that, as sales director, she became aware of the overbilling and conspired to conceal the false billing from the state.
“We now have indicted three employees of this vendor for deliberately overbilling the state by more than $1 million,” said Attorney General Milgram. “In today’s indictment, we charge that Ms. Bielanski learned of the unlawful billing and was complicit in efforts to cover it up.”
The state had already charged two other former OSI employees as “ring leaders” in the case: Enos Blake, an OSI vice president responsible for managing state projects, and Carol Labbe, his de facto second in command, according to state prosecutors. The AG’s office said that the two deliberately overcharged the state for debt collection work for more than six years, resulting in overpayments of $1,184,662 over that time.
In addition to the former company employee, three officials at New Jersey’s State Division of Taxation were charged with crimes in connection with the case. The former division director, Robert K. Thompson and two deputy directors, David M. Gavin and Harold E. Fox, were charged with making discretionary decisions while under undisclosed conflicts of interest caused by their receipt of meals, entertainment, golf outings and other gifts from OSI. Thompson and Gavin are charged with official misconduct and engaging in a pattern of official misconduct, and Fox is charged with official misconduct, all second-degree offenses.
The press release noted that Bielanski will be ordered to appear at a later date to answer the charges and that second degree crimes in New Jersey carry a maximum sentence of 10 years in state prison and a $150,000 fine.
About OSI:
As one of the nation's leading providers of strategic receivables management services, our clientele includes a blue chip roster of Fortune 500 clients. Through our services, our clients are able to improve their financial performance by accelerating cash flow, lowering operating costs, reducing bad debt expense and improving customer retention.
At OSI, you'll find over 6,000 associates working across 25 states, as well as Canada, Mexico and Puerto Rico. Our revenues exceeded $480 million in 2004.
Whether you're collecting consumer debt, commercial debt or managing the collection of debt we purchased from credit grantors, you'll be part of a great family of financial professionals. OSI is the corporate parent to a family of companies that provide a broad array of services within the account receivables industry. Some of our companies include:
OSI Collection Services, Inc. - collects consumer and commercial debt, generally for a contingent fee
OSI Outsourcing Services, Inc. - collects consumer and commercial debt in our clients' name (receivables management)
OSI Portfolio Services, Inc. - manages the collection of charged off consumer debt purchased by OSI from credit grantors
OSI Education Services, Inc. - education loan collections
Jennifer Loomis & Associates, Inc. - medicaid billing
Qualink, Inc. - healthcare receivables and management outsourcing
Gulf State Credit, LLC - accounts receivable purchasing
This is a Complete Copy of the Press Release Anouncing the OSI indictment:
Former Director for OSI Collection Services Charged with Theft & Corporate Misconduct for Overbilling State More Than $1 Million
TRENTON – Attorney General Anne Milgram and Criminal Justice Director Deborah L. Gramiccioni announced that the Division of Criminal Justice obtained a new indictment today charging the former sales director of OSI Collection Services Inc. with conspiring to falsely bill the state more than $1 million and cover up the unlawful billing.
According to Director Gramiccioni, the Division of Criminal Justice obtained a seven-count state grand jury indictment charging Sandra Bielanski, 41, of Hillsborough, with theft by deception, misconduct by a corporate official, and five counts of making false contract payment claims, all second-degree crimes.
Two other employees of OSI were previously charged in connection with the false billing. Enos “George” Blake, 61, of Kendall Park, and Carol Labbe, 41, of Jackson, also face second-degree charges of theft by deception, misconduct by a corporate official, and five counts of false contract payment claims. They were initially indicted in February 2007, and were charged in a superseding indictment on March 10, 2008.
The indictment against Blake and Labbe alleges that Blake, as the OSI vice president responsible for managing state projects, and Labbe, as his de facto second in command, purposely submitted improper bills between January 1999 and May 2005 that caused the state to overpay OSI by $1,184,662. The indictment against Bielanski alleges that, as sales director, she became aware of the overbilling by Blake and Labbe and conspired to conceal the false billing from the state.
“We now have indicted three employees of this vendor for deliberately overbilling the state by more than $1 million,” said Attorney General Milgram. “In today’s indictment, we charge that Ms. Bielanski learned of the unlawful billing and was complicit in efforts to cover it up.”
According to Director Gramiccioni, Blake and Labbe were responsible for signing off on payment vouchers submitted to the state under three contracts to collect delinquent and deficient taxes. It is alleged that Blake and Labbe purposely submitted improper bills in connection with nine OSI employees that resulted in the state making payments totaling $1,184,662 that were not authorized under the contracts.
The contracts provided for OSI to bill the state on an hourly basis for work performed in connection with the state contracts by employees who fit five defined job titles. In some cases, employees were identified with incorrect job titles that resulted in them being billed at a higher rate of pay, while in other cases employees were billed who should not have been billed at all.
“The State of New Jersey pays millions of dollars each year to vendors and must be able to count on the integrity of those with whom it does business,” said Director Gramiccioni. “We will vigorously investigate and prosecute corporate officials who deal dishonestly with the state.”
Bielanski also is charged in a state grand jury indictment dated Aug. 10, 2006, along with three employees of the State Division of Taxation. The former division director, Robert K. Thompson, 60, of Hamilton, and two deputy directors, David M. Gavin, 56, of Titusville, and Harold E. Fox, 60, of Wall, are charged with making discretionary decisions while under undisclosed conflicts of interest caused by their receipt of meals, entertainment, golf outings and other gifts from OSI. Thompson and Gavin are charged with official misconduct and engaging in a pattern of official misconduct, and Fox is charged with official misconduct, all second-degree offenses.
Under that indictment, Bielanski is charged with arranging for the state officials to receive the gifts and benefits. She faces six counts of offering an unlawful benefit to a public servant for official behavior, three in the third degree and three in the fourth degree.
The indictments resulted from investigations that were conducted and coordinated by Detective Benjamin Kukis and Deputy Attorneys General Thomas Clark and Steven Zweig of the Division of Criminal Justice Corruption Bureau. Deputy Attorneys General Clark and Zweig presented today’s indictment against Bielanski to the state grand jury.
Second-degree crimes carry a maximum sentence of 10 years in state prison and a $150,000 fine. The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
The indictment was handed up to Judge Linda R. Feinberg in Superior Court in Mercer County, where Bielanski will be ordered to appear at a later date to answer the charges. A copy of the indictment is available with this release at www.njpublicsafety.com.
I got your information from allexperts.com. I am dealing with issues and lies from Asset Acceptance LLC. I was taken to court over some credit card debt. I got a stipulation to make payments but unfortunately I got into a financial bind and missed a payment which forced a judgement. Friday I called and spoke with a Maurice wade and he told me they would do another stipulation for 250 down and 50 a month there after. He then transferred me to Duane W. and he set everything up and is mailing me the paperwork.. Then yesterday afternoon I get another call from them so I called back and got a lady on the phone by the name of Sherika I think and she told me they can not put in another stipulation and the judgement is stuck on there and the reason they were calling is to garnish my wages.. So I advsd her what I was told that morning and on Friday and she told me that was incorrect and could not be done.. She said they were sending me a promise to pay letter and the judgement was not going anywhere.. I live in Florida and am the head of household taking care of a roommate that has a brain tumor.. Only one income as of right now.. I said I was going to call back and talk to a manager because I did not appreciate being lied to.. I want to know what you think I should do or if you can help me any way.. They have my banking information to start with the 250 on the 29th so if I should cancel it I need to give them at least a 5 day notice so please if you can help me please I could use some assistance or advice.. Thank you.. If you want to contact me you can use my cell phone at 407-247-2492.
Asset Acceptance Capital Corp. (Nasdaq: AACC) , the Warren, Mich.-based purchaser and collector of charged-off consumer debt, released preliminary fourth quarter and annual results early Friday that showed a significant drop in income and revenue. The company also reported it borrowed heavily from its lenders in the fourth quarter, as it increased its purchases of debt portfolios. The borrowing caused Asset Acceptance to violate a credit agreement with its lenders.
Asset Acceptance said that it expects to report a 59 percent decrease in net income for the quarter to $4 million. Revenues in the quarter are expected to rise 1.1 percent to $62.2 million. For the full year 2007, Asset Acceptance expects to report net income of $20.4 million, down 55 percent from 2006. Total revenues declined 2.7 percent in 2007 to $248 million. It plans to announce final results on Feb. 26.
Investors sent the company's shares lower by more than 4 percent in early trading Friday.
The company said that in 2007 it spent $172.4 million to buy $5.3 billion in face value debt. In the fourth quarter alone, it invested $62.8 million to purchase portfolios with a face value of $1.5 billion. The company ramped up purchasing in the fourth quarter in what it called a “favorable debt purchasing environment.”
As Asset Acceptance drew down from its credit facilities, its ratio of liabilities to assets rose, violating an agreement with its lenders.
In the fourth quarter, Asset Acceptance's ratio of total liabilities to net worth fell below 3-to-1, a requirement set by Chase and others. On Thursday, Chase gave Asset Acceptance a temporary waiver of noncompliance with the covenant through March 17, 2008, provided that the ratio does not exceed 3-to-1. The company anticipates obtaining an amendment to the credit agreement by March 17, 2008. At the end of December the ratio was 2.65-to-1, slightly higher than the 2.5-to-1 rate that applies to 2008.
As of February 21, 2008, Asset Acceptance had borrowed $25 million from its $100 million revolving credit facility, and nearly the entire balance of its $150 million term loan facility.
Robert Paisola is driven by a passion for people--motivating them to reach for the highest standards of success. As founder and president of multiple Corporations, Robert trains sales and marketing professionals who want to strive to get to the top...and stay there. His innovative, no-nonsense approach is based on applying what he has observed in his fifteen-plus years in sales, motivational speaking and training, thus revealing the common business habits of the top 20% of sales performers in all organizations. Robert's approach works...that's why New York-based Success Magazine has rated Robert Paisola as one of the top-five most effective sales-training professional in the market today. Routinely Distinguished by The National Speakers Forum, Robert is also a regular contributor to Business Week Magazine, CNN, CNNFN, XM Satellite Radio, The Wall Street Journal, Telemundo International, National Public Radio and many other organizations.
