Bond-Co-Complaints-2023

Backstory & Intro

In May 2021 we completed the purchase of a home for $895,000 in Monterey County CA.

The transaction was filled with coordinated COMMERCIAL ROT from Professionals in over 6 different industries.
It's a level of coordinated ROT in a single real estate transaction that I've not seen documented before in writing or lore.
One of the Industries that has been exposed is the Bond Industry.

The Complaints provided on this website expose massive, inherent problems with the Contractor and Inspector Bond Industry as well as specific behavior tantamount to Fraud with clear suggestions for RICO violations for Bond Company Employees.

To get the most from these Complaints, you need more of the Backstory first.

Backstory

In March 2021, Just prior to writing an offer, the Seller's Agent, a low volume Keller Williams Agent, made promises to deliver proper disclosure documents but never did. Ss experienced real estate buyers, that put us on edge. We were in a very stressful situation that required a new place to live, and the market was tightening by the month as COVID was locking down.

We progressed with an offer cautiously. We knew how to back out if it was required. With the Support and Oversight of a 40 year agent now working for Coldwell Banker, we made a bid without all proper disclosure documents and statements due to us. From this alone you can surmise that our own Broker was as in on this scam as the Seller's Broker. The potential to earn large sums of money with very little work makes people do strange things.... (expand for more)

We were the winning bidder.

The day after Contract Acceptance and Transfer of Title, our 40 year agent provided us with Seller Disclosure Documents that were unsigned and patently incomplete, with no notice of the Omissions. We had to find those ourselves. When he was asked about them, he acknowledged knowing about them and suggested we just do our due diligence and decide if we want the home. Whe asked if/when he should involve the Seller's Broker he suggested against that, indicating we likely would not obtain the home, with no indications how or why we would lose the title gained by the signed contract.

We proceeded with even greater caution. We needed a home badly. It was a very tight market AND we had discovered the entire Brokerage system was Mafia run, with no guarantees we'd find any better experience in another transaction.

Within the first week in escrow, we identified over $40,000 in non-disclosed defects.
By the end of the third week, we had identified another $20,000 to $40,000 in non-disclosed defects. We identified an area of possibly concealment that was subject to massive defects unknown. We had received enough information in writing to clearly show the home had been transferred to us subject to gross Disclosure Malpresentations and Concealment Fraud.
By the end of the third week it was apparent the Seller had turned the home over to the Seller's Agent 10 months prior. He had moved out of state and trusted the Agent to "do what it took" to sell his home.
By the end of the third week we had discovered and documented the fact that the misrepresentations and concealment work had been fully organized by the Seller's Agent, with the assistance of a General Contractor, a Painter, a pre sale Home Inspector and a pre-sale Termite inspector he had personally recommended and supervised for the concealment defects and production of faulty disclosure documents.

We attempted to notify the seller of all of this prior to removing our condition contingency.

Since we had to do that through the Seller's Agent, because our own Transaction Coordinator and Assistant Broker had shown they were more interested in participating in fraud for profit than managing a transaction properly, we have no way to know what, if anything, actually made it to the Seller.
At the time we had to presume he was unaware of the illegality of the situation he was in.
We presented our findings and asked for proper pricing adjustments to accommodate for the defects.
Had he adjusted his pricing then, none of this Bond Company Reporting would have transpired.
For now, we'll just have to assume everything happens for a reason.

The Seller did NOT make concessions as appropriate. It's unclear if he was ever even made abreast of the problems.

To obtain the Deed which had been promised to us at time of Contract Acceptance, with only the conditions disclosed during negotiations resolved, we removed our Condition Contingency under duress. THEN we started to ask the tougher questions...

The Questions we sought answers to...

Why was the Seller's Real Estate Agent so comfortable with lying on his Disclosure Documents and organizing this fraud?
Why was our own Transaction Coordinator and Broker so comfortable with facilitating the fraud presented by the Seller's Agent?
Why were the Contractors willing to accept $50,000 to do $120,000 in concealment work that "should" cost them their license?
Why were the Inspectors willing to accept under $800 to assist with the obfuscation and concealment of $70,000+ in defects that were EASILY IDENTIFIED with 30 minutes of due diligence?

As it turned out, the Brokers and Agents are controlled and covered for by ATTORNEYS as part of scam to increase Legal Lobby revenues state wide. That has been detailed in other websites. Let's skip that part for now.

The next harder one to process is the Inspectors.

Their ASS was hanging so far out in the wind it's just stupid.
What did they or do they know about the CA Legal System that made them feel comfortable doing this?
As it turned out, Home Inspectors are not regulated in CA. The lack of a Disciplinary Ovesight Body might make one feel more comfy but only a fool does what he did and thinks it won't eventually come to light? The Termite Inspector is another beast entirely. He is only one of 3,000 regulated people like him. Why on earth would he have felt so comfy doing it? What did he know about his Licesning Oversight Body and the Bond System that made him feel comfy doing this?

Then there were the Contractors....

Their quotes and invoices were not provided to us as part of the Disclosure Process as is required.
We obtained some of them via demands during escrow. What those revealed was shocking and incriminating for all involved.
As regulated professionals the question again had to be asked.... "What do these people know about the CA Regulatory system and Bond System that would allow them to feel so comfy doing this level of Fraud"?

To Answer these questions with a level of certainty that could never be challenged,
we needed to file a total of SIX initial complaints.

Since the home inspector is unregulated and without a bond, let's forget about him for now.

To figure out what was going through the minds of the other three, we needed to file complaints with the oversight bodies they were responsible to as well as their Bond Companies.

We spent a great deal of time doing that, hoping by some miracle, these individuals were just "dumb" and the oversight systems actually worked.

It turns out, they weren't dumb. They all seemed to have knowledge the rest of us didn't, but now do.

CA Contractors State Licensing Board - 30+ Year Fraud - The Contractor's State Licensing Board has seemingly been involved in a 30+ year fraud. Their charter indicates they must open and process all verified complaints no matter who files them. Yet, they are only processing complaints if the person filing it was the person contracted with the contractor. Basically, they've created a system in which Satan himself could contract with contractors, and tell them to break every rule in the book and as long as Satan was happy, nothing could come to them via their oversight body. As crazy as this sounds, i have all the simple documents needed to prove this beyond Satan's Shadow. If a state agency can participate in Racketeering, this should qualify.

CA Structural Pest Control Board - 10+ Year Fraud - The Structural Pest Control Board was formed in the 1930s by industry participants for self regulation. Reviews online indicate they have been overlooking rogue inspectors and companies for at least 10 years. National Industry history presented by a Termite Attorney suggests it's been much longer. My experience revealed a willful desire to "try to look past" gross procedural violations, while given more and more details to incriminate themselves. Eventually I presented a 50+ page document that is not refutable and they referred my case to a legal authority. During this process it appears back channel information was conveyed to the Termite Company indicating nothing would come to them. If a state agency can participate in Racketeering, this should qualify.

Bond Company #1 - CNA Surety

The General Contractor and the Termite Inspector both happen to use CNA Surety for their Bond Provider.

CNA Surety Complaint Handler for the General Contractor
The Complaint Handler for the GC seems to have run a hoax for an investigation. He started out by asking about status or progress of any complaints with the CSLB. He then gathered info from me and claimed to gather info from the GC. This process drug things out for over 40 days illogically. He asked me again for status of the complaint from the CSLB. I notified him of the odd situation in which Satan seemed to have overtaken that entire Government Department. He then indicated he got the same notice from the Contractor. He then sent me a letter indicating he was closing my complaint because the CSLB closed my complaint. The fact that the CSLB was not following the state Statutes governing complaint standing and he was not following state statutes that covered his duties were irrelevant to him. He claimed they had very limited scope of services that mirrored those of the CSLB as opposed to those they were supposed to serve per state Code. Given the CSLB seems to have been engaging in this illegal behavior for over 30 years, CNA Surety may have been using this approach for decades as well. My complaint handler only handled Contractor Bonds in California. He had been doing it for years. He indicated about 3-5% of the complaints he handled were from 3rd parties and all of those were identical to mine (purchasers of homes filing complaints after close of escrow). When asked if his job was interesting, he revealed the fact that he only used a few templates for responses, but that he was constantly surprised by contractor behavior and scenario specifics. When his actions are compared against Markel, they Bond Company for the painter, they are dramatically different. They did not ask about CSLB complaint at all, as seems relevant and appropriate. When his actions are compared to state statutes and the use of a fraudulent case closure by the CSLB to justify his own closure, he appears to be engaged in Fraud and Racketeering.

CNA Surety Complaint Handler for the General Contractor
The Complaint Handler for the Termite Inspector denied the claim initially without providing any clear reason for the denial while suggesting the activities for review were only negligence or fraud. The statutes clearly outline Misrepresentation and Gross Negligence as violations relevant for review as well. When pressed, she indicated she found no fraud, but ignored the inquiry about Misrepresentation and Gross Negligence again. While doing this, she had been presented with clear evidence of Cod Violations related to Gross Negligence and Misrepresentation. When provided with the 50+ page complaint that detailed over 15 acts of statute violations, the same complaint that triggered the SPCB to make a legal referral, she has gone silent and refused to answer emails and demands for position statements. This appears to be Fraud and Racketeering as well.

Bond Company #2 - Markel

Markel Complaint Handler for the Painting Contractor
The complaint against the Painter is still in process. It provides a comparative study for the GC complaint. She did NOT ask anything about CSLB complaints. She did however ask for a copy of my Real Estate Transaction Contract.

She identified the Acts in the Statutes that were relevant for review related to work done in a workman like manner, abadonment and fraud. She oddly omitted the statute related to conspiring with a third party to conceal defects.
She initially tried to use my contract and Legal Case Precedent out of context to show that an "As Is" sale applied and I had no claim. I pointed out to her she had used them out of context.
She then tried to dismiss my claim for standing related to timing, when she had information in her possession that showed that to be a false avenue to relief.
She has made absolutely bizarre claims about the need to have a receipt for repairs to have suffered damages. I have pushed back on that twice now.
She has presented response information from him that is incriminating but incomplete and she has ignored two requests thus far to get complete information for review.

This is still an open complaint. More updates coming as I have them... So far, there have been clear attempts at Fraudulent handling...

Please progress to the Complaints page now.
You've got the general gist of this.
Next comes the Legality and Details with far greater clarity.

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