H.A.C.E.R. Hispanic - American Cultural, Educational and Recreational Club JUNE 2016

“You ever get the feeling the world's

filling up with bastards? I do. What I

want to know is what happens when

all the bastards run out of people to

crap on? What happens when all

that's left in the world is bastards?

The golden rule. Screw unto others

before they screw unto you.”

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“Greed, envy, sloth, pride and glut-

tony: these are not vices anymore. No,

these are marketing tools. Lust is our

way of life. Envy is just a nudge to-

wards another sale. Even in our rela-

tionships we consume each other,

each of us looking for what we can get

out of the other. Our appetites are of-

ten satisfied at the expense of those

around us. In a dog-eat-dog world we

lose part of our humanity.”

John Perez, President of HACER.

HACER.CLUB.LLC@GMAIL.CO

WWW.FACEBOOK.COM/HACER.CLUB.LLC

“Choose a leader who will invest in

building bridges, not walls. Books, not

weapons. Morality, not corruption.

Intellectualism and wisdom, not igno-

rance. Stability, not fear and terror.

Peace, not chaos. Love, not hate.

Convergence, not segregation. Toler-

ance, not discrimination. Fairness, not

hypocrisy. Substance, not superficiali-

ty. Character, not immaturity. Trans-

parency, not secrecy. Justice, not

lawlessness. Environmental improve-

ment and preservation, not destruc-

tion. Truth, not lies.”

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THOUSANDS OF POINCIANA HOMES IN DANGER OF FORECLOSURE

JAY BLOOM AND 1ST ONE HUNDRED UNDERHANDED DEALINGS

(In the last few months Jay Bloom and 1st One Hundred have been constantly discussed in Poinciana’s social media outlets. Below is HACER’s view of the latest court battle in Neva-da. The black wording is from the actual court document; Court No. 2:16-cv-00099-RFB-CWH) By John Perez.

Jay Bloom is the director of First 100, LLC, and 1st One Hundred Holdings, LLC, (collectively First 100), Nevada registered entities. On January 27, 2016 Jay Bloom filed with the United States District Court in Nevada two Motions for Preliminary Injunction. In its motion, First 100 seeks to enjoin Defendants Omni Financial, LLC, (Omni) and PrenPoinciana, LLC, (PrenPoinciana) from foreclosing on First 100's assets, including certain bene-

ficial interests in proceeds realized from homeowners association (HOA) accounts receiva-ble.

Bloom and Omni are about lose shirt, pants, money and more. But first some entertainment. On April 27, 2016 Kal-Mor-USA, LLC, (Kal-Mor) and GFY Management, LLC, (GFY) also filed to enjoin Omni and PrenPoinciana from conducting a scheduled foreclosure sale. GFY claimed that the scheduled sale included assets that belonged to them which they purchased in reliance on an earlier settlement agreement entered during the first hearing on February 2, 2016.

Bloom's First 100 claimed that he entered into a binding settlement agreement on February 2, 2016 with Omni and PrenPoinciana and that the foreclosure sale was a breach of that agree-ment. Below you will see what the Court had to say about the so called February 2, 2016, agree-ment. On January 20, 2016, the court held a hearing and issued a Temporary Restraining Order prohibiting the parties from taking any further actions on the HOA accounts receivable at issue in the case. Below you will see how Bloom intentionally ignored the Temporary Restraining Order.

First 100 filed its Motion for Preliminary Injunction, the hearing was postponed several times to allow the parties to pursue settlement and to retain expert witness to testify as to the valua-tion of the HOA accounts receivable at issue. The court held a hearing on Plaintiffs' preliminary injunction motions over three days from May 11, 2016 to May 13, 2016. Before going on to the Court's decision lets examine what lead to this mess. A mess that may very well place thousands of Poinciana home owners in an abysmal situation.

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H.A.C.E.R.

SHOP AROUND FOR LOWER PRESCRIPTION DRUG PRICES – RIGHT FROM YOUR COMPUTER. People should definitely start shopping for lower prescription drug prices. It is so easy to do, there are easy ways to do it right from your computer. There are many websites and apps that can help you find the lowest prices for prescription drugs. Consumers need to know where to find the best prices. Many people go with unfilled prescriptions because they cannot afford the prices. However, there are ways to check multiple pharmacies for lower prices.

We will introduce you to two websites and apps. These two website search local pharmancy prices and then apply discounts and coupon for the customers to use. The two websites are GoodRx.com and WeRx.org. You can also get their apps for your cell phone. Examples of searches for 30 day supply of common medications; Sinvastatin 20mg at Wal-Mart is $9.67, $17.52 at CVS and $21.02 at Walgreens ($10 with an annual mem-bership). Metformin 500mg at Wal-Mart is $7.74, $14.39 at CVS and $16.97 at Walgreens. You can also get discount coupons to use to reduce your cost for some medications. These websites provide you with basic information so that you can compare and make and informed decision. If you have insurance these websites may not lower your co-pay. However, make sure you compare because the website what you may pay un-der the website prices may be less then your insurance co-pay. Most people don't know about these program. You now have information that may save you a couple of dollars. —————————————————————————————————————————————————————————--

THIS YEAR IT IS VERY IMPORTANT FOR YOU TO GET OUT AND VOTE

DON’T LEAVE YOUR FUTURE IN SOMEONE ELSE’S HANDS

TAKE CONTROL OF YOUR DESTINY

PAGE 2

VISIT FLORIDA DIVISION OF ELECTIONS

TO LEARN HOW TO REGISTER AND/OR

CHECK YOUR VOTER STATUS.

DOS.MYFLORIDA.COM/ELECTIONS

H.A.C.E.R.

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(Continued from page 1) First 100's Acquisition of 2013 Receivables Many in Poinciana thoughts that First 100 was a collection company, but the court found that First 100 is a real estate investment company that operates through acquiring rights to future cash flow from delinquent HOA assessment account receivables and by purchasing real property at HOA foreclosure sales.

So First 100's game appears to be acquiring rights to future cash flow and not as a collections company to bring accounts up to date. Could this be why, as people have complained, that payments on past due ac-counts are not accepted? Could this also be why accounts have had outrageous fees added to them?

Bloom, on July 3, 2013, on behalf of First 100, entered into a Purchase and Sale Agreement with the Association of Poinciana Village, Inc, (APV). Pursuant to the agreement, First 100 purchased from APV the right to receive all pay-ments of delinquent HOA assessments owed to APV for 3,417 units (HOA 2013 Receivables).

The court stated that according to the agreement, APV agreed to pursue foreclosure proceedings against select properties with delinquent as-sessment accounts that were sold to First 100.

The APV also granted a limited power of attorney to First 100 to hire legal counsel to represent APV in foreclosure proceedings and offers to pay off delinquent assessments for properties placed into foreclosure proceedings.

Omni Loan Agreement On May 24, 2014, Omni and First 100 entered into a Loan Agreement (Omni Loan), Omni agreed to loan a maximum of $5,000,000. First 100 secured the Omni Loan with a Security Agreement on May 24, 2014. First 100 granted security interest in its present and future “Collateral.” The collateral included “the HOA 2013 Receivables and all accessions to and proceeds and products of the foregoing.” So it appears that Bloom was pledging to Omni the keys to First 100 in the event of default on its repayment. Several members of First 100 executed personal guaranties in favor of Omni as additional security for Omni's loan to First 100. Could it be that Bloom and the managers put up their own personal collateral to secure the Omni loan? Surely things would not being looking good for Bloom and friends if First 100 defaulted on the loan. Well sure enough First 100 subsequently defaulted on its repayment obligation. The total balance owed to Omni by First 100 was $3.5 million. This amount was also secured and owed by Bloom and the managers. Bloom and company must have started to feel Omni's hands in their pockets. But wait, all is not lost yet. On December 21, 2015 First 100 and Omni agreed to and entered into a Forbearance Agreement. Omni agreed not to take action at that time to foreclose on the collateral identified in the Security Agreement. First 100, Bloom and company were given a temporary reprieve. But as you will see punishment was only postponed for a while, matters got worse. As consideration for Omni's forbearance First 100 was to make a payment of $270,500 within five business days of the agreement. The payment was to be made before being entitled to the forbearance.

The attorneys for Omni surely knew what they were doing. The making of the payment was a condition precedent to First 100 being entitled to the agreement. First 100, Bloom and company may have been feeling the pain again. Well guess what? First 100 did not make the payment to Omni. The heat was on again. First 100 had to find a way out of this mess. First 100 came up with another idea. Agreement With PrenPoinciana

First 100 made a deal with a PrenPoinciana, LLC. PrenPoinciana is a company registered in Delaware, incorporated on February 5, 2015 – just two months after defaulting on the Omni payment. Now that is so very convenient. On February 2, 2015, three days before PrenPoinciana incorporated in Delaware, First 100 entered into a Proceeds Purchase and Sharing Agree-ment (First PPSA) with them. PrenPoinciana paid a purchase price of $1,000,000 to First 100 for “free and clear of any liens, claims...security interest, equity, restrictions or other encumbrance” the right to receive a percentage of any proceeds realized from the HOA 2013 Receivables. It also included money received from the collection of any delinquent assessments, the sale of the liens, or the sale or rental of any foreclosed properties attached to those delinquent accounts. The initial percentage to PrenPoinciana was to start at 100%. Nice try. Was PrenPoinciana set up to try to prevent Omni from foreclosing on First 100 collateral? How can First 100 offer free and clear any-thing when it came to the HOA 2013 Receivables when it already had a Loan Agreement with Omni for those same receivables? Looks like someone, in a desperate situation, looking for a way out of the rising waters.

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H.A.C.E.R.

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(Continued from page 3) May 14, 2015. First 100 made a deal with Prentice Lending for a loan of $162,000. The Prentice Note states that the loan is secured by First 100's right to receive payments from the HOA 2013 Receivables. First 100 was to also place fully-executed deeds to four parcels of real estate in trust for Prentice's benefit as security for repayment. Will it surprise you that First 100 also defaulted on its repayment obligation to Prentice? Again, could this be a ploy to deprive Omni of its right to foreclose on First 100, Bloom and company? Now back to the court decision.

February 2, 2016 Settlement Negotiations During the first hearing on February 2, 2016, the parties advised the Court that they had reached a settle-ment after several hours of negotiations. The counsel for Omni stated to the court that the agreement would be an enforceable contract...but then to followed up with an agreement that might give a little more detail. Some of the terms agreed to; (1) the foreclosure sale would be cancelled; (2) all interest in the HOA 2013 Receivables would transfer to Omni; (3) Omni would assume management and control of the HOA lien portfolio; (4) HOA receivables would be distributed according to a “waterfall,” first Omni until paid in full, than to Omni and PrenPoinciana, then Omni, PrenPoinciana, then continue to be divided among Omni, PrenPoinciana, First 100 and kal-Mor; and (5) First 100 would place the rents and other revenue from four

Nevada real property into the waterfall.

Looks like this agreement sees Poinciana as a waterfall of money. The nets were in place. Additionally, the parties had agreed that First 100 had a purchase agreement with APV to receive proceeds from delinquent assessment receivables for the years 2014 and 2015 (HOA 2014-2015 Receivables). The agreement had been made in October 30, 2015, and was to be purchased by First 100 by November 30, 2015. However, First 100 had not yet provided the funding for the purchase. The parties further agreed that any funding of the HOA 2014-2015 Receivable purchase must take place in 30 days. If this occurred, First 100 would receive assessments of $252 per year per home. The remainder of the proceeds, such as late fees, inter-ests, collection costs, and attorney's fees, would flow in the waterfall.

It surely looks like the more that fees are added to the accounts the more they all share. There is no reason for all of these money grabbing enti-ties to want the homeowners to settle their delinquencies. The money is in keeping the homes under their control and keep the money “waterfall” flowing. Although the parties informed the Court that they intended to draft and file a formal written settlement document, they were unable to reach agreement on that document. That is when the court held the May 11-13, 2016, hearing.

GFY'S Purchase of the HOA 2014-2016 Receivables

Before we go on, keep in mind that First 100 was negotiating with Omni during the month of February and were not able to reach agreement. You will see that First 100 was also negotiating with another company behind Omni's back . During the month of January 2016, Greg Darroch, managing member of Kal-Mor, began discussions with First 100 regarding a potential agree-ment to provide funding for the purchase of the HOA 2014-2015 Receivables from APV. First 100 had agreed to pay APV the sale price by No-vember 30, 2015, however, First 100 never paid. First 100 did not pay? Is anyone surprised? However, during February, First 100 was also negotiating with Omni for the same receivables.

Why would First 100 want to settle with Omni when they were already working with Kal-Mor about the HOA 2014-2015 Receivables? Many may perceive this as being underhanded. Bloom and First 100 were quickly reaching a depth of no return. Kal-Mor is a Nevada company (2010) listing Greg Darroch as a manager with an address in Coldstream, British Columbia, Canada. FirstService Residential, the management company for APV, is a Canadian company. Unknown if there is any connection.

On January 20, 2016, which was approximately the same date that First 100 and Darroch began discussions regarding the funding of the HOA 2014-2015 Receivables, the Court issued a Temporary Restraining Order directing First 100 not to “sell, encumber, or otherwise dispose of any of the interests in HOA accounts receivable they may possess that are at issue in this litigation.” First 100 and Darroch were negotiating the HOA 2014-2015 Receivables in spite of the restraining order.

(Continued on page 5)

H.A.C.E.R.

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(Continued from page 4 )

Through February and March, First 100, Kal-Mor, Omni, and PrenPoinciana continued to negotiate the terms of a comprehensive written settlement agreement. At the same time First 100 and Darroch also continued discussions relat-ing to Darroch's purchase of the HOA 2014-2015 Receivables. First 100 was supposedly trying to come to terms with Kal-Mor, Omni and PrenPoinciana, however, it was also nego-tiating with Darroch to sell him the HOA 2014-2015 Receivables.

During these negotiations, First 100 never informed Darroch that First 100 had been ordered not to sell or encumber any HOA accounts receivable in their possession. However, Darroch was on notice of this order because it was sent to his counsel. Was First 100 trying to be underhanded? Darroch and co-owner Phil Burasso created GFY on March 11, 2016, to complete the purchase of the HOA 2014-2015 Receivables. First 100 was

aware of the restraining order and continued to negotiate a deal.

On March 11, 2016, counsel for Omni sent a letter to counsel for First 100, Kal-Mor and GFY. Enclosed was a proposed written settlement agree-ment and that if not executed and returned by March 17, 2016, counsel would inform the Court that negotiations were dead. On March 15, 2016, Darroch informed Omni that the HOA 2014-2015 Receivables would be funded by March 18. On March 16, 2016, Darroch informed Omni that the lender would not provide the funding unless the settlement agreement was signed. The pro-posed settlement agreement was not signed. Omni did not fall for the pressure to settle.

On March 17, 2016, the new GFY and First 100 entered into a Proceeds Purchase and Sharing Agreement (Second Agreement). This agreement states that GFY purchased all of First 100's rights to and interest in HOA 2013 Receivables, HOA 2014-2015 Receivables, and assessments due on one thousand additional APV properties through December 31, 2016. The agreement between First 100 and GFY left Omni and PrenPoinciana totally out of the picture. It seems like First 100 violated the Temporary Restraining Order directing First 100 not to “sell, encumber, or otherwise dispose of any of the interests in HOA accounts receivable they may possess that are at issue in this litigation.” On March 18, 2016, Darroch, on behalf off GFY, wired approximately $710,000 to APV as payment for the 2014-

2015 Receivables.

The Court found that Kal-Mor and GFY intentionally withheld the First 100/GFY agreement from Omni and

PrenPoinciana during the discovery and proceedings despite knowing that it should have produced and that is was

clearly relevant to the disputed issues in the case.

First 100, GFY and Kal-Mor must have known that they intentionally violated the Temporary Restraining Order and therefore did not disclose their agreement. First 100 reached out to GFY and Kal-Mor and pulled them into deep waters.

Valuation of HOA 2013 and HOA 2014-2015 Receivables

At the May 11th hearing, the Court heard testimony from Bloom, director of First 100, and Leigh Katzman, an attorney licensed in Florida. Both witnesses testified of their opinion of the value of the Lien Portfolio. Katzman was the attorney representing APV in a Miami state court matter that Bloom was a party to. The case is Gursky Ragan PA v. First 100 LLC, case number 2014-24215-CA-01, in the Circuit Court for the Eleventh Judicial Circuit of Florida. What goes around comes around. Bloom testified that the value of the portfolio is between $5 million and $227 million, with an expected value of $59 million. Bloom testified that First 100 would take title of properties and then sell or rent out those properties, generating revenue much greater than the face value of each indi-vidual lien. Could this be why residents have been unable to make arrangements to pay off their past due assessments? The money waterfall is greater when taking title of properties then from payments of past due accounts.

The Court did not find Bloom's testimony regarding the valuation to be credible. The Court also said that Bloom is not licensed to practice law in Florida and identified no legal authority by which a Florida HOA would be able to extinguish a bank's first-priority mortgage and thereby take title to a property free and clear of the mortgage. (Continued on page 6)

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(Continued from page 5)

Katzman testified that the value of the portfolio was approximately $3 million. The court found Katzman's testimony to be credible. Surely Bloom had planed to convert a $3 million portfolio into at least a $59 million portfolio. With a maximum of up to $227 million, depend-ing on how many properties he could hold on to. The game may have been to prevent owners from becoming current on past due assessments. With all the complaints of outrageous added-on fees and impeding the efforts of owners to pay it makes the game obvious. The Court found that the market value of the HOA 2013 Receivables and HOA 2014-2015 Receivables that would be recovered by the seller in a foreclosure sale would be $3 million. The Court went on to say that; if these receivables were sold by Omni and PrenPoinciana in a UCC collateral sale, the proceeds would be insuf-

ficient to completely satisfy First 100's debt to Omni as the first-position secured creditor, let alone PrenPoinciana.

Conclusion

What did the Court say about the February 2, 2016, settlement agreement that the plaintiffs were counting on? Here it is; The Court said that the parties did not enter into a valid and binding settlement agreement at the February 2016 hear-ing because the parties did not agree to all the material terms. Thus, First 100's Motion to Enforce Settlement Agree-ment is denied. One of the requirements that Bloom's First 100 had to fulfill before the agreement took effect was the paying of $270,000 to Omni. The payment was never made. However, First 100 wanted the agreement that they did not pay for to be enforced. Is this twisted logic or not?

On May 23, 2016, Richard F. Boulware, II, United States District Judge, denied all motions of First 100, Kal-Mor and GFY. The Omni freight train is on the move. But folks don't think for a moment that First 100, Bloom and company will lay down on the tracks. For sure they may file appeals. The money waterfall is just too great to ignore. Either way Poinciana is headed into a perilous situation. —————————————————————————————————————————————————————————--