Kort & Scott Financial Group (KSFG)
2018-2019 HCD Annual Report
Fraudlent Practices by Western Ventures LP, Abraham Arrigotti, Drita Bronkey
Sat, Feb 1, 2020, Annual Report Published: Tue, Jan 14, 2020 – HCD helps secure $175,000 settlement for mobilehome owners following fraudulent practices by mobilehome dealer/salesperson.
HCD ensures that licensed mobilehome/manufactured home dealers and salespeople comply with laws and regulations governing licensing, escrows, and sales by educating, investigating complaints and illegal practices, and taking appropriate action against violators, including referrals to agencies that can prosecute.
Consumer complaints alleging violations are investigated by HCD field staff. When a violation is found, HCD issues an order to comply (if the situation can be corrected); and/or issues a citation or files an accusation asking an administrative law judge to revoke or suspend a license and often require the licensee to pay restitution to consumers harmed by the acts. In more serious cases, HCD can request the local district attorney or attorney general to file criminal charges.
This was the case when more than two dozen mobilehome owners in California were sold below-standard homes without notification about the homes’ defects, later resulting in homeowners facing fees and penalties, violation notices, and/ or eviction for not repairing their homes in a timely manner. In addition, many victims never obtained title and ownership of their homes after the sale, while others fought for years before titles were transferred into their names.
HCD’s investigators and legal team thoroughly investigated and prosecuted the case with the assistance of Yolo County governmental offices, including the Yolo County District Attorney’s Office and the Office of Yolo County Supervisor Jim Provenza, who helped set up a task force with the Yolo County Sheriff and provided translators for affected homeowners who filed claims.
Following a joint investigation by HCD and Yolo County into the fraudulent practices of a formerly licensed mobilehome dealer/salesperson operating in Davis, Tustin, and Covina, a settlement was reached in which Western Ventures LP, Abraham Arrigotti, and Drita Bronkey agreed to pay restitution, with $100,000 distributed to all homeowners who filed claims, reimbursing them for the costs of their homes.
HCD Annual Report
Published: Tue, Jan 14, 2020 – Pages: 30, 31
Western Ventures LP, Abraham Arrigotti, Drita Bronkey
Kort & Scott Financial Group Company and Ex-Employees to Pay $175,000 in Restitution
Fri, Apr 26, 2019 – Department of Housing and Community Development, Yolo County secure settlement funds for California mobile home owners. Former mobile home dealer and salespeople operating in Davis, Tustin, and Covina, California agree to pay reimbursements.
Sacramento – More than two dozen mobile home owners in California will be reimbursed for the costs of their homes thanks to a settlement reached following a joint investigation by the California Department of Housing and Community Development (HCD) and Yolo County into the fraudulent practices of a former licensed mobile home dealer and salesperson in Davis, Tustin, and Covina.
As part of the settlement, Western Ventures LP, Abraham Arrigotti, and Drita Bronkey agreed to pay $175,000 in restitution. Most of the money, $100,000, will be distributed to all affected homeowners. The remaining $75,000 will go to reimburse the costs of the investigation and legal costs incurred by HCD.
The affected homeowners were sold below-standard homes without notification about the homes’ defects, later resulting in homeowners facing fees and penalties, violation notices, and/or eviction for not repairing their homes in a timely manner. In addition, many victims never obtained title and ownership of their homes after the sale, while others fought for years before titles were transferred into their names.
Mobile homes and manufactured homes are often the only affordable choice for many Californians, said HCD Director Ben Metcalf. HCD’s authority to hold licensed mobile home dealers and salespeople accountable is part of the bigger picture to ensure every Californian has access to a safe, affordable home.
HCD’s occupational licensing investigators and Legal Affairs Division thoroughly investigated and prosecuted the case with the assistance of Yolo County governmental offices, including the District Attorney's Office and the Office of Yolo County Supervisor Jim Provenza, who helped set up a task force with the County Sheriff and provided translators for affected homeowners who filed claims.
HCD Press Release
HCD Announcement
For Immediate Release – Fri, Apr 26, 2019
State of California Wins Injunction Against KSFG Companies
Thu, Sep 29, 2016 – On Monday, March 19, 2015, Chair D. Ewing of the East Davis County Fire Protection District (EDCFPC) announced that a task force of nine (9) was being formed to investigate the questionable business practices of Sierra Corporate Management.
EDCFPD Minutes of March 2015
One year later, on Friday, March 25, 2016, The People of the State of California (Plaintiffs) filed a Complaint for Injunction, Civil Penalties, and Other Equitable Relief against Davis Group LP, Sierra Corporate Management Inc, Western Ventures LP, Abraham Arrigotti and DOES 1 through 20 inclusive.
CV16-500 Complaint
On Tuesday, August 2, 2016, The People of the State of California won a Final Judgment and obtained an Injunction against Davis Group LP and Western Ventures LP.
CV16-500 Final Judgment
Former Owners of Davis MHP Settle Case Filed by District Attorney
Mon, Aug 22, 2016 – Yolo County District Attorney Jeff Reisig announced that on August 2, 2016, the Yolo County Superior Court signed a settlement in a consumer protection case filed in March, 2016 against the former owners of the Royal Oak mobile home park in Davis.
Davis Group, L.P. and Western Ventures L.P., owned and operated Royal Oak mobile home park until it was sold in April of 2015. The civil complaint filed by the Yolo County District Attorney’s Consumer Protection Division alleged that between 2012 and 2015, Royal Oak did not properly inform buyers of various required information related to the sales of the homes. With the assistance and participation of local and state agencies, the case was investigated and filed earlier this year.
As part of the settlement, Davis Group, LP. and Western Ventures L.P., agreed to pay up to a total of $22,000 in restitution to buyers of mobile homes who suffered undisclosed and unreimbursed costs at the time of their purchase of their homes.
Anyone who purchased a mobile home in the Royal Oak mobile home park and suffered unreimbursed costs that were not disclosed at the time of the purchase, or earlier, is urged to contact the Yolo County District Attorney’s Office. English speakers can call (530) 666-8434 and Spanish speakers can call (530) 666-8416.
Yolo County District Attorney
Office of the District Attorney
Royal Oak Manufactured Home Community
500 Artis Lane, Davis, California 95618
- 2016-03-25 – Complaint for Injunction filed by the State of California
- Case Number: CV16-500
- The People of the State of California (Plaintiff) vs. Davis Group LP, Sierra Corporate Management Inc, Western Ventures LP, Abraham Arrigotti, DOES 1 through 20 inclusive (Defendants)
- Status: Plaintiff Won, Final Judgment Issued 2016-08-02
Complaint Summary: Complaint for Injunction, Civil Penalties, and Other Equitable Relief
INJUNCTION
- Pursuant to California Business and Professions Code sections 17203 and 17535, Defendants, and all partners, officers, directors, employees, agents, franchisees, contractors, affiliates, employees whose duties include any of the matters covered by the injunctive provisions and their successors and assigns, are permanently enjoined and restrained from directly or indirectly engaging in any of the following acts or practices in or from California:
- Violating the provisions of California Health and Safety Code section 18025 by selling, offering for sale, or transferring homes which fail to meet structural, fire safety, plumbing, heat producing, or electrical system code requirements;
- Violating the provisions of Health and Safety Code section 18046 by failing to conduct a reasonably competent and diligent visual inspection of the home offered for sale and failing to disclose the any prospective buyer all facts materially affecting the value or desirability of that home that an investigation would reveal;
- Violating the provisions of Health and Safety Code section 18035 and 18059.5, by failing to use escrow accounts and to have purchase funds go through escrow agent for every transaction by or through a dealer to sell or lease with the option to buy a new or used manufactured home or mobilehome;
- Violating the provisions of Civil Code sections 1770(a)(19) and 1671(d) by collecting unreasonable and unconscionable amounts of money as a nonrefundable deposit, however, the parties to such a contract may agree therein upon an amount which shall be presumed to be the amount of damage sustained by a breach thereof, when, from the nature of the case, it would be impracticable or extremely difficult to fix the actual damage;
- Violating the provisions of Health and Safety Code sections 13113.8, 17926, 18029.6, 18031.7, 18025, and 18550, by selling, offering for sale, or transferring homes or permitting occupancy in homes without said homes meeting required habitability and safety requirements (i.e., smoke alarms, carbon monoxide device, water heaters strapping, structural, fire safety, plumbing, heat-producing, or electrical systems, fuel, gas, water, electricity, or sewage connections);
- Violating Civil Code section 1102.3, 1102.6 and Health and Safety Code section 18046 by failing to provide the mandated disclosure statement timely and as soon as practicable before the transfer of title and/or by failing to disclose all that is required on the transfer disclosure statement after a reasonably competent and diligent visual inspection;
- Violating the provisions of Health and Safety Code sections 18059, and 18101 and if, and as applicable, violating 18060.5(c) and 18101.5 by failing to promptly provide title to a buyer;
- Violating Health and Safety Code section 18035.3(a) by deviating from its requirements regarding purchase orders, conditional sales contracts or other document evidencing the purchase of a home; and
- Violating Health and Safety Code section 18039 by providing a provision in any agreement that buyers waive any right under section 18035 of the Health and Safety Code.
- As used in paragraph 6, the words “home,” “mobilehome,” and “manufactured home” are interchangeable and refer to those structures defined pursuant to Health and Safety Code sections 18007 and 18008.
- As used in paragraph 6, the use of conjunctive language includes the disjunctive.
- Upon the start of the 15th day after the signing of the Final Judgment these injunctive terms shall take effect. However, during that 15 day time period, the People are not precluded from seeking ex Parte relief upon good cause (an alleged violation that requires immediate/emergency relief). This paragraph does not negate or affect any of the Defendants’ legal obligations to follow the law.
Non Receipt of Title and Unlicensed Activity Complaints by HCD
HCD Complaints Against Kort & Scott Financial Group DBAs
Thu, Jan 28, 2016 – What you are seeing in the image below are thousands of documents titled "Investigative Report" which are from the California Department of Housing and Community Development (HCD) filed against Kort & Scott Financial Group DBAs. This information is available through a Public Information Request which we have filed for all of the KSFG parks that we are aware of in the State of California.
Complaint Types: Non Receipt of Title, Non Transfer of Title, Unlicensed Activity, Substandard Housing, Unlawful Use, Misrepresentation, Illegal Advertising, Breach of Contract, etc.
This is only a small portion of the requests and pertains mostly to one mobile home park, Royal Oak Manufactured Home Community in Davis, California which was sold by the KSFG DBA in April 2015. It appears that KSFG were forced out of this park by the continual violations by the HCD, each one costing Kort & Scott Financial Group $2,000. In one set of these documents, Hart King, Attorneys at Law, acting on behalf of the KSFG DBA state this...
Dear OL Ombudsman Coordinator: We represent Davis Group, LP, the party subject to the above 11 citations. On April 22, 2015, we wrote to the Division of Codes and Standards Deputy Director requesting on behalf of our client, stating our objections to all of the Citations, and requesting an Informal Hearing. We have recently been advised that the Hearing Officer desires to hold 11 separate hearings as opposed to one single hearing even though the alleged violations are all similar. As a result, Davis Group LP has decided, for business and financial reasons only, that it is more sensible to pay the civil penalties. Among other reasons, the costs of preparing for and attending 11 separate hearings, which would include the hourly and travel expenses of counsel, expert witnesses and percipient witnesses, would far exceed the amount of the civil penalties, and it would take valuable personnel away from their jobs for an extended period of time.
We are therefore enclosing 11 checks from the Davis Group, LP, $2,000.00 each, covering each citation payable to the Department of Housing and Community Development, and requesting that the 11 Informal Hearings be taken off-calendar. Please confirm that this has been done at your earliest opportunity.
Please be advised that the payment of the civil penalties cannot and should not be considered an admission of any wrongdoing or liability on the part of the Davis Group for any of the violations appearing in the Citations or under any other law. The Davis Group is simply making the $22,000 in payments for business reasons, and continues to deny all liability under the Citations for, without limitation, the reasons stated in my April 22, 2015 letter to the Deputy Director.
We will have many questions for the HCD Division of Codes and Standards Deputy Director as we continue to "crunch the data" and provide summarized, filtered results for public consumption. Our first question for the Deputy Director of Codes and Standards would be:
Why haven't you taken this ‘Preponderance of the Evidence’ to the Office of the Attorney General for the State of California?
Sierra Corporate Management Under Investigation
Mon, Mar 19, 2015 – Mobile home parks run by Sierra Corporate Management have become a statewide problem because of highly questionable business practices and management. A task force, including District 4, the District Attorney, Yolo County Housing Authority, Legal Services of Northern California, the CAO, the Assessor, the Sheriff, the State Department of Housing and Community Development, and County Counsel, has been formed at Yolo County to investigate and respond.
The County BOS office is receiving many calls from the residents in the Royal Oaks Mobile Home Park because of hazardous fire conditions, title issues, allegations of fraudulent business practices, and units in ill repair. Most of the residents are low income and do not have extra funds for repairs or charges made by the owners. D. Ewing suggested a possible donation of funds to provide CO detectors to these residents. Provenza will investigate this option and report back at the next meeting.
EDCFPD Minutes of March 2015