- Report: #443774
Report - Rebuttal - Arbitrate
Complaint Review: Sash Program
Sash ProgramPO Box 98922 Seattle, Washington U.S.A.
Sash Program Sued by WA State AG for Equity Skimming Seattle Washington
*Consumer Comment: News release is bogus - Reaction from the AGO
*Consumer Suggestion: Bogus!!! This report is plagarized from an actual News Release.
*Consumer Comment: I don't believe you.
*REBUTTAL Owner of company: This report is a slanderous lie - please do your own research and you will find this is untrue!
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Washington AG Sues Couple For Equity Skimming
Andrew Bomann and Rebecca Bomann, Des Moines, Washington, owners of the Sash Program are being sued by the Washington Attorney General's Office on claims that Andrew and his wife ran a real estate investment business that misled senior homeowners and property investors.
Attorney General Rob McKenna and Assistant Attorney General Jack Zurlini filed new documents in King County Superior Court that accuse Andrew and Rebecca Bomann of skimming equity from senior homeowners in western Washington and misleading investors. It's alleged their dirty deals left a trail of victims families who lost their homes, renters who never recouped security deposits and investors who never saw profits.
We will continue to use our enforcement powers to stop equity skimmers and illegal investment promoters from preying on Washington residents, McKenna said. Rebecca Bomann may not have learned her lesson the first time, but she and her husband better figure it out now.
The state's civil complaint lays out a pattern of deceptive practices involving the Bomann's who operate as the Sash Program, starting around 1995, when Rebecca Bomann was involved in a criminal equity-skimming scheme. She was convicted of equity skimming, first-degree theft and third-degree theft in September 1995 in king County Superior Court. She was released from jail after serving part of a 12-month sentence.
The Attorney General's Office filed a civil lawsuit in early 1997 connected with the same equity skimming plot that led to Rebecca Bomann's criminal conviction. The office alleged that Rebecca and her company Trevorrow Investments, Inc., had violated the state's Consumer Protection Act.
During litigation, the Bomanns filed for bankruptcy. The state eventually obtained a judgment against Rebecca Bomann and her company in July 2002. The judgment prohibited Bomann, her company and anyone working with her from engaging in equity skimming and any other unfair or deceptive act or practice in connection with real estate transactions.
We're now alleging that only a short time after she was criminally convicted of equity skimming and had a civil judgment entered against her, Rebecca Bomann formed a new company, Sash Program, LLC, Zurlini said, and along with her husband started a new business venture in which they once again engaged in illegal activities that are also in violation of the judgment.
In court documents, the Attorney General's Office alleges the defendants did the following:
-Engaged in equity-skimming schemes in which defendants purchased residences from elderly homeowners by promising to cover payments on their existing mortgages for a period of time and then later pay them off completely. Defendants benefited by receiving cash payments of tens of thousands of dollars at the time the deal closed or by collecting rents on the properties, and then later letting the homes go into foreclosure when they stopped covering the homeowners' mortgage payments. In one example, former homeowners were initially told they wouldn't have to pay rent until they became qualified under a housing program and then they would pay only $50 per month. The defendants later evicted the victims for nonpayment of rent.
-Misrepresented their business as an organization to help distressed homeowners.
-Defendants told the Community Action Center in Seattle, WA, that they wanted to help senior homeowners and had experience in helping people stay in their homes. On the contrary, the defendants contacted the organization to locate distressed properties they could strip equity from.
-Misrepresented to certain investors how their funds would be used and the return they should expect. Defendants did not use all of the investment funds to purchase properties and didn't properly secure the funds as they had represented to trusting investors. And an information packet designed to attract investors falsely stated that the Sash Program had been successfully investing in real estate ventures for several years, that the company had a large marketing campaign and that investors would receive 13-15 percent annual returns.
-Illegally marketed and sold securities through the promotion of a Fractional Investor Owner Program, by which individual investors agreed to form a limited liability company and invest $2,500 up front, plus additional contributions of at least $100 per month over the next three years.
-Used company funds for personal expenses, substantially reducing the assets of the Sash Program and its ability to repay its obligations to investors and creditors. For example, Andrew Bomann bought his wife a dozen roses each month.
-Placed deceptive classified ads in newspapers sold in Washington, Oregon and Idaho. Ads targeting investors included false claims such as a 30% PLUS RETURN. Defendants also advertised rentals they didn't actually own.
-Failed to disclose to renters that foreclosures were pending on the rental property or claimed foreclosures had been stopped or delayed. In fact, the foreclosures continued and tenants lost both rent and security deposits, which defendants failed to place in trust accounts.
-Transferred company-owned properties to Rebecca Bomann. Defendants failed to inform investors and creditors about the joint agreement between the Sash Program and Rebecca Bomann. As a result of transferring company assets to Rebecca Bomann, defendants substantially reduced the assets of the Sash Program and its ability to repay its obligations to investors and creditors.
The Attorney General's Office is asking for new injunctions to stop the deceptive business practices, civil penalties of up to $25,000 for each individual defendant who violated the 2002 judgment plus additional civil penalties for the recent violations, restitution for victims and reimbursement of legal costs.
Jan Quintrall, president/CEO of the Better Business Bureau Serving Washington, North Idaho and Montana, praised the state for its work to protect homeowners. Washington residents are fortunate to have such a pro-active and even-handed Attorney General to work with, Quintrall said. BBB values its partnership with the Washington Attorney General's Office on addressing issues concerning the breach of ethics that are giving legitimate real estate agents and investors a bad name.
This report was posted on Ripoff Report on 04/15/2009 11:19 AM and is a permanent record located here: http://www.ripoffreport.com/r/Sash-Program/Seattle-Washington-98198/Sash-Program-Sued-by-WA-State-AG-for-Equity-Skimming-Seattle-Washington-443774. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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