Lance Puig + York Street Properties review: False Representations + Payment Scam 252

I am a Dallas based investor who also works full-time to support my family. I see opportunities all over town and began looking into companies/persons that I could partner with. In my initial searches; Lance Puig, York Street Properties and York Street Homes came up frequently. So I started looking into the company.

My research included the BBB, banks, appraisers, court filings, looking at York Street Properties houses for rent, talking to a couple of renters/aspiring buyers, company employees (they like to talk - disgruntled, earnest or otherwise), County Sheriff's (process servers), a few of the individuals that had posted complaints on the internet, amongst others.

What I discovered motivated me to publish a few of the things I found out. Perhaps then, any hard working investor or company thinking about providing services to Lance Puig and companies would have a place to start their own research (so that an informed opinion and decision could be made on their own). The facts are easily verifiable.

Would I like to reveal my name in this forum? NO THANK YOU. After my first posting I was able to confirm that Lance Puig had allowed homes and investments of friends, business colleagues and family (including his mother) to be foreclosed on due to non-payment of mortgages. That's in addition to the numerous people he has already destroyed. Disregard for the lives, security and well being of people doing business with Lance Puig seems to be a recurring theme. Would I like to subject my family, home personal security to potential harm needlessly - NO! - my finding do not warrant that sort of trust in Mr. Puig. What I found was chilling.

Perhaps an earlier poster, Reidar Klaumann, has a good idea. It's possible that the State Attorney General would be interested in the financial affairs of Mr. Puig. I, however, do not have an actionable claim as I made a decision to stay away from his dealings. Here's contact information for those interested. There seems to be a lot of people harmed or mislead, perhaps a group effort would offer some protections or satisfactions:
http://www.oag.state.tx.us/
Attorney General Greg Abbott: greg.abbott@oag.state.tx.us
Main agency switchboard [protected]
Consumer Protection Hotline [protected]

I'm an above average earner, family man and hard working person trying my best to cope (if not profit from) the bad economy our nation, state and community faces. It's a time to work together, not work against one another. This also includes sharing information that could help fellow community members avoid a potentially hurtful situation. There are numerous credible facts available (as stated in my first post) and the focus of attention should be on those facts, not attacks on yours truly - which is what several of the above posters have decided to do (or perhaps one poster - Lance Puig using different names). Check the facts; check with BBB, check with TAA, talk to numerous service suppliers, contact tenants in York Street Properties homes, verify county records, speak with banks, there are many channels for credible information.

Our country is a beautiful place; we can express our opinions and make decisions freely. The internet and regulatory agencies make it possible to discuss, interact and take appropriate action. For me, I am walking away from Lance Puig and companies. For the parties already harmed, they may like to "band together" and act as they see fit. I hope this forum and my postings help somebody.

Good Luck and Best Regards,

Dallas Investor

READERS HAVE ASK "WHAT IS A PONZIE SCAM ?"

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

Amigo Air can count themselves as one of the very fortunate ones. That leaves more than $600, 000 to go, just with debts to contractors!

Got questions on how HVAC contractors are paid? Contact Mr. Cool, American Mechanical, United Mechanical and many others that have registered complaints with various court systems in the Dallas Metroplex. Their contact information and complaints are readily available... better yet, contact York Street Properties for that information - they have 100's of pieces of correspondence from these companies... though probably discarded, just like investor, tenant and aspiring buyer complaints.

I was asked to re-post the prison record link of Michael Bacher. I hope this works for you:
http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=MICHAEL+&Middle=&LastName=BACHER&Race=U&Sex=M&Age=&x=79&y=8

For all who don't know, Michael Bacher is a long time employee and adviser to Lance Puig.

A BLOG POSTED BY SCOTT LEONARD ON http://themaxonshow.com/2009/01/13/lance-puig/:

QUOTE...
Scott Leonard
Your comment is awaiting moderation.
September 1st, 2009 at 2:32 pm

BM,

That’s very nice that you would stick-up for your boss. Fact is, however, the man is crooked and these statements are about the VERY REAL sums of money that he’s swindled. These aren’t empty accusations, these are facts.

If you’ve been a party to the scam of York Street Properties, you and your family should know that you/they are eating while others are suffering and not eating because of the actions of the company you work for.

I know, you must think we’re rich Americans and can afford it. But we can’t. We also cannot survive and prosper when our credit ratings have been ruined by you scam.

As far as talking is concerned – that’s a joke – victims of the scam including investors, tenants and service providers have send 100’s of emails and left countless telephone messages, which have never been returned.

If the company you work for is honorable it will pay its bills. It’s as simple as that. Touting what a great company this is and what a successful business plan it has doesn’t work with an intelligent audience. Look at your REAL accounts payable, look at the investors properties that have been foreclosed on, look at your boss cowering in his house to avoid process servers, talk to the tenants that have bursting sewage pipes in their house, talk to the tenants that were promised they could buy their homes (not a single promise fulfilled).

If Lance Puig is going to go on radio talk shows, he should expect recourse from all the folks that have supported him in past, but lost. You, ultimately, will lose too. If you care about your family, you’ll lead your life honorably and begin looking for a new job.

There’s nothing false in what’s been said. If what you think is true, then get an AUDITED financial report for your company(s) and present it! If it’s REAL, you’ll be startled at what you see.
...UNQUOTE

In response to a post made by BM:
BM
August 28th, 2009 at 2:04 am

I have been working for YSP for almost 2 years now. Before YSP I been dealing with a lot of outsource company and most of them don’t pay and if ever they do the salary is really low. We are getting a lot of bonuses here and YSP is very generous to us. So I was shocked when someone is saying that YSP is not paying – that is so untrue. There might be a delay for other vendors cause there is a process they need to do before releasing money but they still get their pay.

Without YSP I will not be able to support my Family. We are 8 kids in the family and imagine how YSP can help me to survive our everyday expenses. We help people we make their dreams happen it cannot happen overnight but still we make it happen.

I am not saying all these because I am working for YSP, I am saying this because this is really what is happening. Almost every day I talk to Lance, I can see how he wants to make things better for other people. I know his intentions are all good… he also have a family don’t forget that. He cannot please everyone here but he doesn’t deserve all this bad comments. If you have problems with YSP it’s much better to talk to us and solve the issue than spreading false accusation.

BM

I would agree with point 3 of the Investors comments above. It's highly unlikely that Puig has enough liquidity to pay his bills and with lawsuits that have already been filed and will be filed, it's highly unlikely he will ever pay anybody back.

What's intriguing are the "empty threats" he's making by saying "if you speak up in public I can guarantee you'll never get any money". It's really a silly comment to make, for obvious reasons. (A) If he wants to shut somebody up, just pay them. (B) The courts will decide who gets paid the way things are going, not Puig and his "machinery" (C) As Reidar Klaumann said (above), if the press releases are true and York Street Properties is "strong", then why doesn't Puig hire somebody who can successfully negotiate with the parties who claim injury and debt?

Lacking an action similar to point C, above, Puig appears to have nothing to say and no place to go. Bankruptcy will not quell the criminal complaints. Indeed that will just throw gasoline on the fire. He and his convict "ex" have gone too far.

For what it's worth, I got the same letter from Joseph M. Nathan by email. It went into my spam box and will stay there. What a waste of time.

Michael, I'm really sorry to hear about the troubles you and your family have gone through as a result of York Street Properties. Please know that there are scrupulous investors doing business in Dallas. I have need for a good HVAC Technician from time to time. Please send me an email and I'll contact you next time the need arises.

I have contacted the Specialized Crime Unit and explained the investment scheme that was presented to me. The Dallas County DA's office need more information - please contact them directly or through your legal representative !

I thought the newsletter was excellent. I especially liked this part:

ILLEGAL PROPERTY FLIPPING; is the most common form of mortgage fraud, involving false appraisals and other fraudulent loan documents (US Attorney General, quote)…

ILLEGAL PROPERTY FLIPPING EXAMPLE:
• Perpetrator/house flipper buys a house for $40, 000.
• House flipper has the house illegally appraised for $160, 000.
• House flipper sells house for $160, 000 to a straw buyer who obtained a 80% loan of $128, 000 giving the perpetrator a profit of $88, 000.
• House usually results in delinquency, default, or foreclosure.
• The bank/financial institution is left with a $128, 000 mortgage on a $40, 000 property for a loss of $88000.
• Please see comment by Kendra Appraiser: Lance Puig + York Street Properties — False Representations + Payment Scam

Wade - thanks very much for that post! A particular post by "Tom Burris | FHA VA & Conv. Texas Mortgage Loans (DallasLoanGuy.com)" caught my attention. He said " I haven't seen any of these lately. But at a prior place I worked, we had a couple. Both were averted with a lender field review of the appraisal".

It's my opinion (and a respected local Attorney), that Lance Puig went to specific Lenders that wouldn't do a review of the appraisal. If one Lender disageed with the value he would go to another. We also feel that Lance Puig started to have serious troubles with his scam when Lenders began requiring an "appraisal review" or use of their own Appraisers. Until then, "fraudulent operators" like Lance Puig could more easily manipulate all parties involved to facilitate the scam and mortgage fraud.

Investors definitely didn't have control and evidenced by:
1) Lance Puig chose Lender who wouldn't scrutinize the loan documents [for honesty] too carefully.
2) Lance Puig chose Appraiser (whom he controlled or colluded with).
3) Mortgage payments not made by owner.
4) York Street Properties is not a Property Manager and collected all funds illegally.
5) Tenant leases falsely showed York Street Properties as the owner rather than the "Investor/Straw Buyer".
6) There's much more, but those facts should be revealed in Court rather than here, in public.

Thank you "Wise_Broker" for your input. Your remarks actually give credibility to statements made previously and also in this weeks newsletter.

To summarize; the majority of Investors and others were swindled prior to regulatory and lending institution processes being revised. To combat escalating cases of mortgage fraud more vigilance was necessary to protect financial institutions, as referenced in the efanniemae article you provided.

Points 1 & 2 are actually correct. However, as sited in the newsletter, the new controls (referenced in the article you provided) have greatly reduced mortgage fraud and ponzie scams perpetrated by people like Lance Puig. As testament to that fact, severe cash flow problems for operators such as York Street Properties began in early to mid 2009 (as Investors, Lenders, Service Providers, Tenants and others have testified).

Thank You for your input and the positive information that action is being taken to avert future financial disasters at the hands of operators like York Street Properties. As many very wise people have stated "self regulation by industry has not provided enough controls in past, obviously". The new thinking - increased controls combined with prosecution of past and future offenders is welcomed - particularly by members of this group !

I was contacted by a very nice young lady this afternoon. She told me about all the websites, lawsuits, conversations and latest news.

More to the point, she asked if I needed help with filings or anything else to deal with Lance Puig. I thought that was absolutely fantastic and I offered all the information I could provide. I don't know York Street Properties investors but I'm happy to hear that somebody is looking for them and planning to put together a teleconference soon. Thanks for doing that, I really got a lot out of the conversation !

Wade, your comment on page 8 looks like it will be coming together. I was asked to send an email to yspvictims@gmail.com and identify whether I was and Investor, Tenant, Service Provider or Other in the subject line. It would be a great idea if everybody reading this blog could do the same thing - it would make it easier for the organizers to sort the mail.

Again - Thanks !

THANKS FOR THAT. YOU ALSO MIGHT LIKE TO READ THE BOTTOM OF THE PAGE (/URL removed/) ... AFTER GIVING FAIR WARNING AND ALL THE REASONS WHY A LAWSUIT AGAINST [redacted] IS SILLY:

Comment: I Know the CDA (Communications Decency Act, 47 U.S.C. § 230) Protects [redacted], But I Am Going to Sue Anyway!

If you have read all of the above information and still want to file a lawsuit against us, there are some other points you need to know.

First, Rule 11 of the Federal Rules of Civil Procedure, and each state court's rules, generally require that all pleadings, including initial Complaints, must be presented in good faith, after a reasonable investigation into the facts and the law, and not made for an improper purpose such as harassment. What this means in plain English is that if you file a lawsuit which you know contains false claims, or if you sue without first conducting a reasonable investigation as to the law as it may pertain to the facts of your case (such as determining the identity of the author of the report(s) you are concerned about), you and/or your attorney can be subject to serious sanctions at the judge's discretion. Many who have sued settled with us and some have paid some or all of our attorney's fees. Other times we have defended the cases for years running up large legal bills for both sides. Either way, we never paid out a dime in settlement or damages to anyone who has sued us.

In addition to penalties a judge may issue, those who would threaten us need to be aware of another law which imposes civil liability on anyone who files a frivolous lawsuit. This claim is known as "wrongful use of civil proceedings" and it is defined by § 674 of the Restatement (Second) of Torts as follows:
(a) he acts without probable cause, and primarily for a purpose other than that of securing the proper adjudication of the claim in which the proceedings are based, and
(b) except when they are ex parte, the proceedings have terminated in favor of the person against whom they are brought.

Because [redacted] is immune from liability under the CDA for defamation-based and related claims, any suit that seeks to impose liability for the speech of our users is, by definition, an action brought "without probable cause". We encourage the prompt and fair resolution of disputes between [redacted] authors and those who are the subject of [redacted]s. However, [redacted] wants to be clear that it accepts no liability for the speech of its users, and it will vigorously defend any litigation brought against us which seeks to circumvent the CDA. In addition, any suit filed against us without probable cause may subject the complaining party and/or their attorneys to liability in the State of Arizona for wrongful use of civil proceedings. We don't mean to sound harsh, but if you knowingly file a frivolous lawsuit against us, regardless of where your case is filed, you and/or your lawyers can be subject to a lawsuit in Arizona in which a jury could, if appropriate, award both substantial compensatory and punitive damages against you.

Finally, you need to be aware that if you file a lawsuit simply to harass us, not only will this not work, it will very likely end up being EXTREMELY expensive for you. Due to the number of meritless cases we have had to defend, [redacted] has adopted a very strict policy about lawsuits -- once [redacted] is forced to appear in a case, it will not stipulate to a dismissal of the case unless the party who filed the action agrees to pay [redacted]'s attorney fees. There will be no exceptions. If you conduct a thorough investigation BEFORE you sue and you believe you have a valid case despite the CDA, it is your right to pursue your case and prove it in court. However, once you file a lawsuit, be prepared to either take it all the way to a decision on the merits or pay [redacted]'s attorney fees because [redacted] will not stipulate to a dismissal without compensation.

Terri - great question. It's highly unlikely that [redacted] will release the information and will also fight the lawsuit with the typical zeal they are famous for. Pushing this to a "higher level" as Lance Puig has done will only increase pressure on him and cost legal fees (money he could be using to pay people).

It's really a rather silly effort. There are over 1000 readers, with over 7000 hits on the complaintsboard blog now. It appears that many people are making comments on numbers of other websites + other real estate fraud websites are beginning to reference this case on their sites. Does Lance Puig really believe he can "quash" the huge number of victims from speaking freely on every website in the US (and world)? If so, then he's a lot less intelligent than even this group gives him credit for.

His disagreeable efforts only increase the level of complaints voiced and written. Agreeable efforts on his part - REAL ONES, BACKED WITH REAL MONEY - is the only way to get what he wants.

Great job by all who have or will send letters to the attorney! That list of claims that Lance Puig made is amazing... he's actually refuting that; he's been robbing Peter to pay Paul, he's paid all legitimate debts, hasn't frustrated debtors, his remodeling isn't substandard, investors haven't lost money or credit, houses have been lost to repossession, vacant properties are in poor condition, his repair and reimbursement system is substandard and York Street Properties investments are unreliable?

Semantics... and a vision that's purely the fantasy of Lance Puig's mind.

Chin - all investors should be as thorough as your firm. Perhaps there would be far fewer unscrupulous operators in business.

As you may know, this Group has approached numbers of citizen action committee's, media and other victims groups. One of there is called TexasVox "The Voice of Public Citizen in Texas": http://texasvox.org/. It's a good group doing meaningful things for Texans.

Tonight they're having a "hoe-down" at the Barr Mansion in Austin. If you're close you might like to stop by. See you there!

MOTION TO COMPEL RELEASE OF NAMES OF ONLINE AUTHORS DENIED.

Lance Puig has been telling everybody that "his lawyers" will take care of the authors on sites like /link removed/ complaintsboard.com and others... yeah right ! When facts are published why would the courts side with a cheap tactic put together by York Street Properties?

In a decision dated November 18th, 2009 the Honorable Edward O. Burke of the Maricopa County Superior Court stated "Plaintiffs' Motion to Compel Third-Party to Disclose Identity of John Doe is DENIED IN ITS ENTIRETY". CV [protected].

Lance you lost and this is a sign of things to come for you. The sad part is that you used other peoples money to file this lawsuit rather than just dealing with people openly and honestly. Your efforts to hurt people that say negative (and true) things about you is not the honorable approach to solve your problems. Paying people the money you owe them is !

Our "hats are off" to David Gingras and /link removed/ - they fought for our 1st amendment rights and won!

Bankruptcy of York Street Properties will not protect the personal assets of Lance Puig when Mortgage Fraud and other acts of fraud are proven.

To all vendors and ex-employees: Please send proof of fraud to: yspvictims@gmail.com

This is a great way to get the ball rolling again. Lance Puig has performed criminal acts and deserves to have his ill-hearted actions follow him for a lifetime. We are here to see that it does, no matter where he is.