Product: Mortgage

I am writing this letter in regards to concerns I have about our company XXXX XXXX XXXX XXXX. Myself, XXXX XXXX, and XXXX XXXX XXXX are all partners in the business. XXXX and I merged companies with XXXX in XX/XX/XXXX to launch a large scale business purpose private lending platform. 
We arent lawyers but from our due diligence and digging into these circumstances we believe our business partner and certain employees are engaging in serious criminal conduct : Embezzlement Comingling company funds Tax Fraud HUD fraud You will find that everything that has been stated can be verified with documentation. In addition we can confirm XXXX XXXX is running Hartford and not only using our revenue to cover his other companies expenses, he is also earning revenue from Hartford and I would assume not claiming it on his taxes. 

We can show XXXX, our inhouse accountant XXXX XXXX, and hired accountants XXXX were managing our financials inappropriately. In late XXXX after discovering we were missing money in our operating account XXXX and I began to take a deep dive into our company financials. After reviewing the limited documentation XXXX XXXX and the accountants provided we discovered that not only was XXXX embezzling money, he was comingling XXXX XXXX XXXX revenue to cover expenses for his other company Hartford Funding. 
We feel that XXXX has embezzled, with the help of our accountants, close to {$250000.00} & comingled company funds for both his businesses thru sham expenses and shared employee costs for a total of {$200000.00}. In addition we discovered XXXX was supposed to dissolve XXXX XXXX XXXX. When we finally obtained copies of our bank statements XXXX advised XXXX these were commissions from previous closings before we merged. I have confirmed with copies of huds that XXXX in fact was still funding under XXXX XXXX XXXX and these residuals are most likely ours but we have been cut out of the system. This estimate is around +/- {$250000.00}. Since we brought this to everyones attention XXXX has directed XXXX and XXXX to update/alter the books over 5 times to justify his use of company funds yet provide us with no proof or answers to specific questions/items when asked. 

While trying to account for roughly {$200000.00} in revenue we closed with Hartford we discovered that we were paying Hartford expenses and laundering revenue between companies. We were able to identify {$75000.00} of the {$200000.00} from cross referencing the ledger and bank statements. Although our ledger shows {$75000.00} from Hartford as Capital Contributions from myself, XXXX, XXXX XXXX, and XXXX XXXX the bank statements show our company attorney, XXXX XXXX transferred the funds as 3 {$25000.00} deposits to our XXXX accounts for that portion of revenue on XX/XX/XXXX & XXXX and XX/XX/XXXX. While we are in the finance industry we arent professional CPAs so we inquired why the transfer of money is listed as a capital contribution under us but transferred from XXXX. This was one of the earlier red flags in this entire ordeal. There is no reference to the XXXX loans Hartford closed that brought in that revenue. 
In addition to the 3 {$25000.00} transfers from XXXX we also identified the ledger shows additional loans we closed with Hartford from XXXX XXXX for a total revenue of approx. {$120000.00} but we still to this day that have not received the revenue. Instead XXXX XXXX shared a document with me over XXXX XXXX that showed the revenue XXXX XXXX earned being allocated across a 12 month period to expenses for technology, credit and background, shared employee costs, & health insurance. Being that XXXX and I are majority partners we were never aware our revenue for XXXX was going to be used for XXXX other business expenses. Furthermore, there was no possible way we had {$120000.00} in expenses for Hartford for the first 5 months of XXXX as we arent even affiliated with them. XXXX and I have requested the spreadsheet he showed me in our meeting multiple times but refused to send to us. I took a snapshot of it during the meeting but they will not send in email. 
In addition on the days we had a closing that Hartford funding our brokers were compensated from XXXX XXXX but the revenue from the closing was never transferred to XXXX XXXX XXXX accounts. 

Between the Capital Contributions being made in our names but laundered thru XXXX, the Hartford expenses that our ledger showed cancelling our revenue, really comingling our money for another company, XXXX snapshot of the expenses associated with Hartford, and the fact we paid our referring broker but never received the revenue XXXX and I began inquiring to all the parties involved in our financials including XXXX XXXX and XXXX XXXX Hartfords CEO & President why these discrepancies appeared. Much to XXXX and Is surprise we never once to this day have received an answer to our questions. 

It was at this time we began wondering how XXXX and the other employees were operating our business. After several XXXX searches we discovered that XXXX XXXX was charged in a scheme defrauding HUD in XXXX and settled in XXXX for the XXXX XXXX XXXX. Over the next few days we found out XXXX XXXX is not the actual owner on paper and only XXXX XXXX is the owner on paper. 

Because we are majority of owners of XXXX XXXX we feel it is extremely important that we are aware if there are criminal actions being done within our organization. We attempted to give XXXX the opportunity over 60 days to return the money he used for his personal and Hartford expenses and correct our financial records with the accountants. Since the beginning of XXXX there has been {$0.00} transferred back to XXXX and the accountants from XXXX resigned when they learned XXXX and I were 50 % owners of the company but we were being stonewalled from getting bank statement and receipts for the expenses in our accounts. They said they would not be pulled into a lawsuit about the improper bookkeeping, why they would not provide us a logical and legal explanation as to why we arent receiving our funds from Hartford closings ( if it is in fact legal ), provide us with XXXX taxes, and detailed explanations for the XXXX tax implications we would be subjected to. There has been absolutely no attempt to correct these wrongs or provide explanations that would justify these actions from XXXX XXXX, XXXX, or Hartford management. 

Lastly since we have understood the improper relationship between XXXX and Hartford XXXX and I have instructed XXXX XXXX, XXXX XXXX, XXXX, XXXX, XXXX, & XXXX that we must cease all closings with Hartford immediately. As recently as last night I was advised by XXXX that we are doing nothing wrong and he is a licensed loan officer. We do not condone these actions and want to ensure we are not responsible for the consequences that come with these decisions. 

In regards to documentation to support these claims we have in our possession emails and internal messaging communications with all parties showing delivered and read receipts, bank statements, credit card statements, the financial ledgers showing the improper book keeping, and an assortment of other documents that are relevant.