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February 2004            Met Yves Julian Cauvin, Jr.

Answered ad for Loan Officers positions; Julian was their newly hired Sales Mgr. just up from Las Vegas. I worked with him at that company for about 2 months.

Steinhauer Financial LLC;

Address: 1350 Thornton Avenue SW Pacific, Wa. 98047

Phone: 253 863-6100

Owner: Doug Steinhauer.

Julian changed mortgage companies. Doug was not paying Julian as agreed.  Several Loan Officers and I went with Julian.

Solutions Financial Group. Inc.

Originally located at 6100 Southcenter Blvd. Suite 250 Tukwila, Wa. 98188.

Relocated in 2005: 5200 SouthCenter Blvd #110 Tukwila, Wa.

Phone number:  206 277-8181  

Owned and operated by Amir Pozooki.

February 2005

I left SFG and work for Masterlend Mortgage Co. in Auburn, Wa.

April 2005                   Position as Julian’s Processor

Returned to SFG – Julian offered me a position as his loan processor. SFG had 2 processors on staff for all loan officers. Per Julian: it would free up his time and would allow him to focus on bringing in (even) more loans.

SFG opened a satellite office in the Factoria area focused at building real estate sales; headed by Omied (Ryan – his American name) Pazooki, Amir’s son. Julian, now a VP of the Co. moved to that office.

Address: 12600 SE 38^th Suite 255 Bellevue, Wa. 98006

Phone: 425 746-8500.

April–December 2005   

As Julian’s Loan Processor, I found the lender & mortgage program; worked the file through closing and funding.  I processed about 15 loans for Julian.  In certain cases, when the clients’ situation did not meet the conditions set down by the lender, Julian directed me on ways to meet those conditions. 

They included:

• Utilizing a ‘stated loan’ option where the lender allowed the buyer to state their income and/or assets without written documentation, pay stubs or W2’s to verify the information.
• Transferring money into the buyers accounts to meet the lenders’ reserve condition.
• Creating/changing bank statements to show income history.
• Using “Platinum Computer Co”. A ‘fictitious’ company. Julian had purchased a business license and had a 1 800 #. A client needing business and salary info, the lender would call the 1 800 # asking for the verification from the Co. they would actually be talking to Julian who would verify the information.
• On about 3 occasions, I “forged” Julian’s signature, and always notified him as such, on the final copy of loan papers when he was not available – in order to get the paperwork to escrow.

15712 NE 97^th Way Redmond, Wa. 98052    Phone: 425 881-9596 

Lender: Argent Mortgage  888 311-4721- Jason Marks an office assistant x 44037

Mark Dedonato, Broker’s Rep (now with Countrywide Mortgage)

Escrow:  Action Escrow  19309 W Valley Hwy Kent, Wa. 98032 Phone: 425 282-1212 

            Anthony – Manager,  Ali Berens – Asst.

Julian brought up an opportunity that he said he used a number of times. He found property to buy, have them get a loan on the property; he would pay all mortgage payments and cost of repairs and renovation, then resell the house.

You would get $10,000.00, after the property sold and your credit score would increase due to the property value and payments. I told him I was possibly interested. I saw it as an honest, profitable real estate business of buying and ‘flipping’ homes. With (my) credit and Julian’s abilities in real estate and sales, I saw it as a very viable and creditable venture.

Ryan Hart a fellow Loan officer was also approached and versed by Julian regarding the same house buying/business opportunity.

Julian wanted to help out his brother, Patrick, using the same system. Patrick could get into a house, the process would increase his credit score; Julian, would pay the mortgage payments and renovation costs; and Patrick would have $10,000.00 at the sale of the house.

Patrick Cauvin– bought a FSBO (for sale by owner) home in Newport Hills. Sold by Jerry Benson – father of Sky Benson, a long time friend and partner of Julian Cauvin.

Julian left the office; returning about 1-2 hours later, his voice was very raspy. Julian said he had gone to his brother’s house and a huge argument had ensued.  “We where yelling so loudly at each other, I’m surprised a neighbor didn’t call the police.” 

Nothing had been done,  Julian offered over and over again to pay the monthly mortgage payments and the cost to get people into the house to fix it up so that it could be sold in a few months, but Patrick wanted to ‘do it himself’, yet Patrick was too depressed and nothing was getting done.

Julian called me; Patrick had set the house on fire. The fire had jumped to the neighbors’ house. Both homes were gutted. Patrick called the police and turned himself in. A number of issues stemmed; from this situation; Julian was extremely concerned about Patrick’s last name (Cauvin) being published in the paper or announced over the local news.  

My understanding is Patrick is in the correctional facility in Monroe, Wa.  He admitted to setting fire to his house and was found guilty of one count of Arson.

Sky Benson, I understand, is a long time friend and partner with Julian.  He owns a barber shop in the Burien area.  He is a notary – while in prison Julian would fill out and sign documents and have Sky notarize them.

Sky has a “straw mortgage” on a $1M house in West Seattle. While Julian was gone he talked about the fact that Julian had also left him without income and deals (loans, mortgages?) not complete.  I am completely unaware of what Sky does with regards to loans. When I went over the list of loans I was completing for Julian, Sky noted that “none of those files are the loans we were working”.

Jerry Benson, Sky’s father – worked in the movie business in California. I met him once and he said that he and David Scratchley were long time business partners that they were developing a counseling business and that he, Jerry, was going to counsel people.

Once he told me to only talk to him regarding the Scratchley’s financial business, as he controlled their finances.  Yet, when I questioned Susan Scratchley regarding Jerry and their partnership – she made it clear Jerry wasn’t as good or trusting a friend as he claimed. 

Julian and other SFG employees orchestrated the sale of their Greenwood house. Finding the buyer, putting together the real estate paperwork and mortgage loan. The Scratchley’s, were in need of still additional funds after that house sold.

Julian and I began on putting together a refinance for 1.7 million on their Woodinville home they had just purchased 3 months ago. Never seeing the paperwork or knowing the details of the sale on the Greenwood home, it just seemed odd they Needed further financial assistance so quickly after buying the home.

I also worked on a loan for a friend of Craig Hinton, another loan officer in the office. The guy was buying a house in the Federal Way area, which was owned (being sold) by Amir Pazooki, owner of Solutions Financial Network. 

Julian asked me to see if I could get this loan together –as “Amir wants it sold – now”.  My sense was something was wrong somewhere with the financing or paperwork on the home and Amir wanted it out of his name and off of his books, asap.

The price of the house seemed high and Amir was very willing to do whatever it took, financially, to get the house sold and into this client’s name. He had apparently already pulled a large amount of cash out of the home at closing.

Julian began having numerous personal real estate and land development deals going on. I pulled credit and title on houses/land parcels/client names I had never heard of nor had any paperwork on.   I DID NOT work on any of the loans for these people or pieces of real estate. Julian gave out information as he would say, on a “need to know basis”, it was said that Julian admitted that I “didn’t know about these other loan projects and loans and wasn’t suppose to know”.

Julian would also talk about loaning out (tens of) thousands of dollars to people. Once I saw one of his 2004 bank statements it showed one month deposits of over $100,000.00. 

I knew he wasn’t making that kind of money from the types of loans he was bringing in for me to process, and I sensed he was bending the rules a bit. He was good at working the real estate and mortgage loan business to his advantage, but I never thought or believed he would go too far over the line.  He was very ambitious and had huge future goals for himself wanting to build a mortgage and real estate business of his own.

Julian had deals going on 3 homes for himself in the Newport Hills area of Bellevue, WA. He mentioned that he had found a house for me to look at if I was still interested in doing a flip with him. With complete faith in Julian I was comfortable in partnering with him to buy, renovate, and flip homes.

He showed me a home 2 doors up from a house he had recently bought and renovated. That was a home everyone had given Julian high marks for his job in its renovation. The house he used my credit to purchase also needed to be fixed and cleaned up, but I felt it had potential and agreed to partner with him on it. 

Using a stated loan from Argent Mortgage, per their conditions we were able to state my income without the need of written verification. Julian used a salary of $100,000 to make the numbers work. He used his fictitious "Platinum computer company" as my employer. I had misgivings over signing off on the income information, yet as I had no malice or ill intent; the loan payments would be made, the house renovated and sold for a profit; in the end, everyone would win.

I talked about the possibility moving into the house; Julian discussed buying it and using it as a “training facility” and tax write-off, and we considered just fixing it up and flipping it.  Either way, he said over and over again, that he was going to make all the mortgage payments and cover the repair costs. In a minimal amount of time, the house would be sold and the loan out of my name.

September 22, 2005  

Action Escrow - I signed the loan papers. 

Julian was unusually interested in this closing, when it funded, and most importantly when the check would be available. Once funded, Julian asked me whether I wanted the check made out in my name or his. My calculations were that the check for me (the buyer) it would be about $350.00, so I told him to take it.  I don’t remember signing documentation for this check, the amount or any authorization in its distribution. 

As Julian picked the check up, I assume he signed for it then and it would show Julian’s signature. From what I know now, (per the loan papers) the proceeds ($88,000) were to go to the seller (which was apparently Julian).

I had decided to move in – so he wrote a check out to me for $40,000.00, I was stunned. Then he said he had to write out several other checks for ‘finder fees’ and I asked him “where are you getting all of this money?”  He didn’t respond. The next day he walked by my desk and dropped off another check for $30,000.00 and I asked what is was for?  His response was “working hard and a job well done.”

Not feeling comfortable at all about these 2 huge checks and deciding not to live at the house, I returned the $40,000.00 check and said that I had washed the second check in with my clothes (I had actually put that check through the office shredder.)  Again, as the business venture was never about the money for me in the first place, I didn’t want the money, though I appreciated it.

We finally ‘agreed’ that he would pay me $10,000.00.  The second $5000.00 per the agreement, and $5000.00 for work and loans I had worked on and not been paid for.  I deposited this check for $10,000.00 into my checking acct.

Amir had Julian move back to the Southcenter office. Amir’s initial explanation was that Julian’s ‘energy’ increased the sales in the office. (After Julian was picked up by the authorities – Amir said it was because he wanted to be able to ‘watch’ what Julian was doing.)

Amir came and told me Julian’s father was ill and that Julian would not be in the office for a few days. That just didn’t make sense to me.  Julian’s father only lived in Bainbridge – why would he not be in the office for several days – and why hadn’t Julian called me himself.

I knew my loan was not the first of its kind to pass over Amir’s desk. Patrick’s, as Amir himself admitted funded months ago, was one; others I speculated included: The Greenwood house, The Federal Way House, and the house Julian had just purchased for himself.

If Amir had such a serious problem with Patrick’s and now my loan, why hadn’t he have a company or loan officers meeting; post notices or hand out policies for employees to sign as was his practice for other company issues. There was talk regarding our two Russian loan officers who work out of the Factoria Office who were also/possibly handling loans in the same manner.

I have never seen any of the paperwork on any of these properties. Yet, Julian made money on these loans and/or sales and according to Sky Benson “Amir and Omied are in it up to their eyeballs in these things.”  In addition, Julian said nothing to me about any meeting he had with Amir after my loan was funded. I had given the 2 checks back. I had not knowingly processed any ‘bad’ loans, although I had NO idea what ‘bad loans’ meant to Amir.

I went over the ‘tactics’ as listed above. Amir said “everyone does that, that isn’t really a problem”.  He wanted to see all the loans I had processed.  Once he reviewed them, Amir did not mention anything again about those files. He was very nervous, anxious and visibly concerned now that Julian was not around.

Amir asked me if I had ‘enough money’ in our initial conversations, him stating that he was going to take Care of me while Julian was gone and that if I needed money for bills or anything, to come to him. 

I decided to confront Amir regarding his accusations regarding my involvement in my “bad” loan. In additional to Amir’s statements, others would make references to all the money I had, what I was going to do with the money or say things like  “I’ll bet you are glad now that Julian isn’t around, that you have all that money”.  At first I didn't understand, all of a sudden ‘I got’ what they was talking about. 

I went in and told Amir I did NOT have that money (from the checks), that I had given the checks back to Julian. I told Amir, “If you don’t believe me, you can look at my Checking account”.  He said it wasn’t necessary.

We looked over the closing papers for my loan; I again showed Amir where I figured we would get about $350.00 back. On the ‘sellers’ side – there was a disbursement of almost $80,000.00. Although I didn’t understand how this con was put together, I now understood where Julian had gotten all the money.

Roughly figuring he still had to have $50,000.00 or so (somewhere); Julian would repeatedly tell me (to calm me) when talking to him when he was in prison “I have plenty of money”.  Once out of prison,  Julian immediately bought a black Porsche Boxster Convertible and a security system for his house which included a camera mounted on the front entry window, but I never saw another dime).

Julian was extradited to Las Vegas, Nevada; transferred to the High Desert State Prison then extradited to a prison facility in southern California for parole violations there.

When he was first picked up by the authorities and extradited to Nevada, he would call friends and family members. I got messages from all these people that Julian told them to tell me “don’t worry about the house. Don’t sell the house. I will pay the mortgage payments and take care of everything”.  He said his arrest was all a big mistake and that he would be back into Seattle within about 6 weeks.

I finished closing and funding 5 additional loans that Julian and I had started before he was picked up. When the loans would fund, Amir would write the commission check directly to me for the full amount – Julian’s amount – so that I could use the money to keep the mortgage payments current. I received $16,328.42 in total.  Under regular circumstances Julian took 65% of that $10,613.47 and then he would give me 35% $5714.95.

I hired people to begin the much needed fixing up of the house; it wasn’t livable, and certainly not sellable.  I used almost $25,000.00. One Saturday I was working at the house, Amir showed up.  Again repeating a story he had just heard that the Feds had just sent another group of people to prison for the same loan scheme.

He then confronted me on whether I had forged his son Omied’s signature on my loan.  I immediately and emphatically responded “No”.  He seemed a little shocked at the clarity of my answer; he stopped, turned around, got into his car, and left without another word spoken.

As the incarceration grew longer, Julian said to sell the house as a FSBO. Not willing to do that, I listed the home with a  Realtor.  Since I purchased the house at such an inflated price ($420,000 paid to Jeff LaRue – and then the additional $80,000.00 paid to Julian) of $500,000 plus an estimated $30,000 needed to cover the closing costs it would be next to impossible to sell.  My Realtor had 100’s of inquiries, but it proved an impossible task to actually sell the house for what was owed.

Running out of money and cash advances on my credit cards (as a person who always pays her bills on time) and finally understanding the magnitude of my actual situation, it began to mentally take a toll on me. 

The $5000.00 a month additional mortgage payments, the renovation costs, my own condo, living expenses and now with Julian in prison (I had also lost my job as no further loans were being generated), I was getting hysterical. 

Everyone involved and close to Julian or the situation understood and felt really sorry for me and all offered monetary help, but seemingly stepped aside when it came to actually coming up with the money (including Amir ).

I started to make calls to people for help, to “voice/scream” my frustration wanting those truly responsible to take charge. I began threatening to go to the authorities and turn Julian in to try to get people to help.

That afternoon, Amir was at my door and we went to his car to talk.  He ‘knew’ that I was mentally starting to slide under the strain.  Yet true to form he started with the “I should have called the authorities on you” rant, and adding “but that we don’t want to do that now, do we”?  I said “I did not process that loan and that I didn’t know who did”.

Amir would not let up until I verbally, again, said “I was not going to go to the authorities”.  Once I (again) made that vow, he said for me to come to his office the next Monday and that he would take care of the mortgage payments. 

At his office, Amir wrote a check out in my name for $5000.00 to cover the mortgage payments. He specifically said he did not wanting to write the check from him, directly to the lender. He noted ‘work’ on the check.  

Bills were again running up and people needed to be paid.  I brought an itemized list to Amir, requesting $2,200.00 – he wrote a check for $500.00.

Amir stated that he did not want to keep paying the $5000.00 mortgage payments if Julian was not going to come back and buy the house, he (Amir) would buy the house.  He said he knew it wasn’t worth that much, but in a couple of years he would make up the difference and it would be a good investment. We worried that he would not be able to get a legitimate appraisal at the value he needed.

Julian had not yet been released, but there were still rumors that it might still happen soon. Amir got with me about writing up the Purchase and Sale to buy the house, but it seemed that he did everything he could to slow up the process. 

Eventually Julian did get out.  Julian immediately got a message out for the three of us to meet at Amir’s office the following Monday, to go over things. I did not go, nor did I plan on attending; the sale of the home was between them. I don’t know, but I don’t think the meeting ever happened. 

Julian and I met Tuesday and he came to my house on Wednesday to write up and sign the purchase and sale agreement.  Julian wrote a check for $4500.00, that month’s mortgage payments – it bounced (See Below). 

I had a third meeting with him.  (STILL) continuing to believe him and in him; he said getting the house loan completed was his number one priority.  The mortgage payments were now 2 months behind and I needed $10,000.00 to catch up. 

I had no more money – and I finally was getting enough sense to stop putting what little money I had left into this venture. 

An appraisal was made on the house.  The mortgage co. called, with requests for payoffs.  It was noted “I did very well on the house- and made a great profit”  Which indicated to me that (again) Julian was trying to pull the same “loan scheme” to get even more money out of the house at closing. 

Julian was no where to be found. The mortgage payments were now 2 months delinquent. I called Amir, he said that he would take care of it, and he would go ahead and buy the house. He was as supportive and civil as he had ever been.

I met Amir in his office, he then informed me that “he had talked to his attorney, and that his attorney had instructed him not to buy the house”.