Scheer Motion to Dismiss Coester vs Scheer Lawsuit

AppraisersBlogs

AppraisersBlogs

AppraisersBlogs Team at AppraisersBlogs
Have questions or need help? Please contact us with any comments, questions or concerns.
AppraisersBlogs

Latest posts by AppraisersBlogs (see all)

CVMS Fraud & Scheer Motion to Dismiss Coester vs Scheer Lawsuit

More CVMS Fraud and Coester’s Fraudulent Activities Revealed

Robert Scheer, former Coester Senior VP, has filed a motion to dismiss Coester vs. Scheer lawsuit. There are also whispers in the appraisal community that Brian Coester’s motion to dismiss the lawsuit against him was denied. Looks like Scheer vs. Coester lawsuit is going to trial. Scheer continues to reveal more dirt against Coester while appraisers continue to flood social media with comments, and sometimes with humorous reactions:

My biggest take away from this is that it is an incredible indictment as to how (potentially) dirty the participants in major AMCs are and that ALL trust in ANY large AMC as a guardian or gate keeper of honest and impartial appraisal services is unjustified and fraught with risk

…On this episode of American Greed, a slick real estate appraisal management company owner steals thousand of dollars from appraisers and homeowners, then goes on a spending rant to the tune of $400,000, including European trips, luxury automobiles and designer purses…

It’s great to see the other portion of our fee being spent so wisely. I guess after gambling, booze and women, he blew the rest…

Coester is the Poster Boy of the AMC debacle. Not to be ignored or whitewhashed…

Mr. Coester, continued his fraudulent activities, including providing fraudulent profit and loss statements to banks to obtain lines of credit.

As Mr. Scheer learned about CVMS’ operations, he was appalled to learn that Mr. Coester allowed his then-wife to use the company credit card for purchases like a $3,500 purse, two BMW automobiles, and various expensive trips. Id. at ¶ 5. Mr. Scheer voiced his objections to this kind of inappropriate spending, and he believed that Mr. Coester had put an end to it. Id. at ¶ 6. However, this was not the case. Id. Through the course of his employment, Mr. Scheer learned that Mr. Coester created an account called “BC OWES”, that kept track of the money Mr. Coester “borrowed” from the company with the alleged intention of paying it back. Id. at ¶ 7. At the time that Mr. Scheer discovered this in January of 2013 the account was over $225,000, and it has now grown to over $400,000. Id.

In July of 2013 an external hacking attack on CVMS’ bank accounts resulted in a loss of $90,000. In the course of the ensuing investigation, it was discovered that many CVMS appraisers had not been paid in a timely manner. Id. at ¶ 8. Mr. Scheer literally spoke to hundreds of appraisers who told him that they had not been paid by CVMS for over a year, despite performing compensable services. Id. at ¶ 9. Mr. Scheer also saw what he believed were suspicious profit and loss documents that Mr. Coester had prepared for the accounting department. Id. at ¶ 10. Additionally, financial statements provided to potential clients and financial institutions were falsified to make CVMS’ financial situation look better than it was. Id. at ¶ 11.

In 2014 the State of North Carolina contacted CVMS to alert it that they were going to suspend its license for not paying appraisers according to state regulations. Id. at ¶ 12. This would have greatly financially harmed CVMS. Id. at ¶ 13. In response to North Carolina’s investigation, Mr. Coester reluctantly agreed to allow an outside firm to audit CVMS’ payment practices. Id. at ¶ 14. However, before Mr. Coester allowed the outside accounting firm access to CVMS’ records, Mr. Coester went into the electronic records and altered the data creating fictitious information which reflected that Coester had been timely in making payments. Id. at ¶ 15. Mr. Coester, who knew that Mr. Scheer was aware of what had occurred, told Mr. Scheer that if he ever told anyone about CVMS’ fraud then Mr. Coester would “take him down”. Id. at ¶16. Even after North Carolina’s investigation, CVMS continued to pay its appraisers late; the records would simply be altered to reflect timely payments. Id. at ¶ 17. As 2014 progressed, Mr. Coester, continued his fraudulent activities, including providing fraudulent profit and loss statements to banks to obtain lines of credit. Id. at ¶ 18.

During 2015, Mr. Coester continued violating the law. Id. at ¶ 19. For example, the states of Pennsylvania, Illinois, Louisiana, and Virginia would routinely contact CVMS concerning potential disciplinary action against CVMS in connection with the failure to properly pay appraisers. Id. In response to this, Mr. Coester would use a number of tactics involving altered documents and fraudulent statements. Id. at ¶ 20. At the same time, Mr. Coester was charging over $10,000 per month on the company American Express card, paying for, among other things, trips to Greece, Africa, and Florida with his new girlfriend. Id.

Prior to leaving CVMS, it is true that Mr. Scheer forwarded a number of documents from his work email account to his personal email account concerning the fraudulent activities in which CVMS had engaged. Id. at ¶ 23. These documents were taken so that Mr. Scheer could: (1) substantiate any accusations of fraudulent activity if he ever had to support an assertion that he left CVMS due to ethical/legal concerns and; (2) so that if Mr. Coester ever tried to lay blame for CVMS’ illegal activities upon Mr. Scheer, he would be able to show that Mr. Coester was the wrongdoer and he could exonerate himself. Id. at ¶ 24.

Read Scheer motion to dismiss below

Image credit flickr - freeketsal
AppraisersBlogs

AppraisersBlogs

Have questions or need help? Please contact us with any comments, questions or concerns.

You may also like...

25 Responses

  1. Bill Johnson says:

    The question to me is not whether or not the AMC’s and lenders of the world have shady business practices, but rather why no one seems to care. Go back and read the legal documents as it relates to New York versus eAppraiseIT (Washington Mutual) which started the path to HVCC. Appraisers were on the record saying they got dismissed for raising issue about values. No one cared as the new regulations only gave each guilty party more power. Go read in Working RE “AMC Fined Over C&R Fees” as to the inner workings of that case, and again it seems nothing has changed. We can and need to fight the fight, but I’m afraid the referees may have been paid off.

    13

    0
  2. Deplorable Baggins Deplorable Baggins says:

    This is what drives me nuts about this quote unquote regulatory oversight. Are the investigator persons really so lazy or so trusting, all they require is some documents from the company being audited or investigated? If these allegations of payment issues are true, some simple additional auditing from appraisers whom may volunteer some records or be required to show those books, that auditing could be matched against the amc. That’s how auditing is supposed to work, and an entity who’s only looking at only the company being investigated and taking their word for it, may not have provided a thorough enough investigation. Myself and many appraisers like me have long said; You can look at our emails if you want, it’s all in there, all the proof you need. C&R is a myth. Regulatory oversight is at times an illusion. The taxation factor is real, but beyond that it’s the same old deal. Greed rules this day. Someone please post an estimate of the total number of appraisals processed by these companies being talked about please. They should bring in Springer or Murray to oversee the proceedings. Wake me when they quit in-fighting, and bring in appraiser witnesses.

    8

    0
    • Bill Johnson says:

      I don’t know the answer “total number of appraisals processed”, but the following is an interesting read.

      Serent Capital Acquires Mercury Network from a la mode, inc.

      May 7, 2015 — Oklahoma City, OK — Mercury Network, the premier valuation vendor management platform for the mortgage lending industry, was acquired by Serent Capital, a leading San Francisco-based private equity firm that invests in high growth, profitable businesses. Prior to the acquisition, Mercury Network was a subsidiary of a la mode, inc., a technology leader for the financial services industry.

      Mercury Network’s SaaS platform is used by mortgage lenders and appraisal management companies to manage compliance and workflow for more than 20,000 appraisal transactions a day.  A 375% customer growth trajectory over the past 4 years with a remarkable 93% retention rate, combined with a reputation for customer-focused innovation, positions Mercury Network as the leader in the space in terms of technology excellence and client service.  The company’s solutions include: Mercury Network for appraisal vendor management; Enterprise Vendor Framework (EVF) for lender management of multiple AMCs; AQM for quality assurance and compliance; Mercury Mobile for efficient vendor communications; DataCourier for compliant appraisal receipt and delivery; and SureReceipts for compliant delivery of eDisclosures to borrowers.

      …..

      This one company does 20,000 appraisal transactions A DAY. If you assume each transaction resulted in a $10 dollar deliver fee, then on a daily basis $200,000 is generated. On a yearly basis, that’s $73,000,000. If we assume a 6 year run (2009 to 2015), then your at $438,000,000.

      Again, the fight needs to be fought, but the profits are so big our concerns often don’t matter.

      6

      0
      • Deplorable Baggins Deplorable Baggins says:

        Those are shocking figures, the scale is immense.  I don’t feel bad about demanding the few extra hundred for myself.  Without people like you and me, that gravy train would be over.  Just wait until the asb yearly fee per registered appraiser on panel kicks in, that will be the ultimate game changer.  Currently I’m probably approved with hundreds of amc’s, although inactive with all of them.  Betcha a hamburger and a beaver pelt, they’ll all drop my approval when it’s time for them to pay per approved appraiser.  The fees should be based on transaction quantity, not based on number of appraisers whom may coincidentally be approved on panel.  My range of 30+ mercury approved lenders will surely drop as well.  All those amc’s whom boast 20k national panel appraisers and such illustrious tales of illusionary coverage, they’ll have tough decisions to make once the yearly per approved appraiser fees kick in.  If appraisers really had a better grasp on their position, and the volume of earnings these companies take in via appraisal process management of various sorts, appraisers would be a lot more self empowered.  Each origination deal generates like what, 15k worth of fees on average, between agents, title, appraiser, etc.  It’s not unreasonable to demand a flat thousand, if you’re able to get it.

        4

        0
  3. Retired Appraiser Retired Appraiser says:

    Like I said in my previous post: “AMCs are laughing at you appraisers”. Why wouldn’t they? You agree to pay them unbelievable kickbacks each month in exchange for work but continue to complain about the system. Much like Dorothy in the Wizard Of Oz…you’ve had the power to create a new reality all along…you are just too G.D. lazy to use that power.

    8

    1
    • Deplorable Baggins Deplorable Baggins says:

      “There’s no place like batch orders and no grading. There’s no place like batch orders and no grading. There’s no place like batch orders and no grading.” Those amc’s kidnapped toto!

      5

      0
  4. Former Appraiser says:

    This is almost as bad as the presidential election. The exact opposite of what you’re indicating above happen today in Federal and state Court. CVMS responded to the motion to dismiss in Federal Court and also filed a motion to seal as Scheer wasn’t able to support his motion to dismiss in the federal case and used it only as a grandstand for slander. Also Scheer accepted CVMS motion to dismiss in state court against the company as he has not been able to provide any proof or facts to any of his allegations but rather is using it as an opportunity to slander Mr.Coester in which the judge agreed. If this blog is going to be taken seriously at least report the truth…

    0

    14
    • REBEL FEUD REBEL FEUD says:

      oh hey everyone. Let’s welcome Former Appraiser AKA  Brian Coester to the blogs. Everyone give a big warm welcome. Yes. It’s true. If we want to take this blog seriously we need to get the facts straight and realize that what was just posted is also not true. Nice try. All of what you are saying here was just posted to public records as of 3:15 today and you say he accepted these terms already? Lmao. What are we stupid? Where is your proof he accepted to drop the state case? Maybe when you stop telling lies we can take you seriously.

      13

      0
    • Rebel Feud Rebel Feud says:

      Proof please Cause all that’s out there is that You responded to the motion of dismissal by Mr Scheer. According to the court docs replies are due by 10/3/2016. I’m no lawyer but to just say OK we accept this so quickly is absurd. Come on now.  Now the state case.. again prove that they accepted to dismiss the state case and that the judge agreed to all this. All that’s out there is a motion to dismiss the dismissal and a motion to seal the case. Nothing more. Smh. So between 3:15 today and your post here pretty much the only people to have knowledge of any of what you are saying would be Coester, the lawyers, Scheer and his lawyers unless someone really was waiting online for this to hit the public. Idk. If I was involved in a court case the last thing I’d be doing is going on blogs with fake names and more lies.

      10

      0
  5. SillyMe says:

    “The exact opposite of what you’re indicating above happen today in Federal and state Court” 

    Federal and State court both wrapped up by 3pm on the same day? LOL

    9

    0
  6. Nick says:

    Retired Appraiser aka Brian Coester your comments are not supported by court records. Apparently even your discruntled staff are speaking out against you by broadcasting your past illegal behavior to appraisal firms and sending it to competing AMC’s.

    Once your divorce is final expect another release of information from your xwife. Your history of domestic abuse will also be brought to the forefront in shocking detail.

    We look forward to you seeking relief in you filing for bankruptcy for the 2nd time over the last decade.

    6

    0
  7. Deplorable Baggins Deplorable Baggins says:

    I for one, am really happy about the upcoming presidential election. Finally we’ll have a true patriotic person whom believes in law and order in office. Keeping fingers crossed that nobody will remain above the law like they have been, and for once we’ll see some long awaited migration reform. A return to law and order, sounds like a good thing to me.
    The Evolution of Appraisal Ordering

    9

    0
    • Retired Appraiser Retired Appraiser says:

      Great illustration Baggins. The only thing I would alter would be the AMC Chimp. In reality this chimp should be driving an armored car full of cash.

      3

      0
  8. Rebel Feud Rebel Feud says:

    I just want to know where Brian is getting all this money for his lawyers and yet still traveling and more? Oh stupid me. He gets it from taking appraisers of their hard earned money. Duh. Better get your money people if you work for this horrible company. He took down all the horrible reviews on his Facebook but continues to embarrass himself. Great business model. Pay shit, get fined all over and bully everyone. American greed at its finest. Good luck Brian. No one is in your corner.

    7

    0
  9. Baggins - No longer deplorable Baggins - No longer deplorable says:

    Now I feel sort of bad for posting the picture. Pick those up along the way. Sort of funny anyways. There are good amc’s out there whom provide effective services. I really do like the ones whom are compassionate, personal, take less of an interactive position with the appraisal itself, and just pass the orders along. Those ones are great to work with and they do provide a separation from production which has positive benefits. Of course I appreciate a stip now and then, I value some assist with report review.  The difference lies in the request, if it guides development, or merely corrects process error. And of course statement of penalty and discipline are entirely unnecessary. We’re supposed to be professionals working together for the mutual goal of providing credible valuation services, with separation from loan production. Some go too far.  That does not happen with all of them though. We lived on amc work for a long time. Sometimes tough going but you know what they say in this business? All it takes is one or two reliable clients.

    3

    0
    • Rebel Feud says:

      What the hell are you talking about Baggins? My A.D.D is bad enough without posts that are so off the charts and not pertaining to what is being discussed here. I’m so lost now. Help bring me back. Please.

      2

      0
  10. pat says:

    Oh what a tangled web we weave!

    Just dig the hole deeper, please!

    5

    0
  11. Rebel Feud Rebel Feud says:

    SO MR FORMER APPRAISER. AKA BRIAN COESTER. what was that you were saying? Court cases dismissed and Mr Sheer took a deal and dropped everything? YOU LIAR  Because as of today….. YOU ARE GOING TO COURT IN 2017 with a settlement hearing on the 3/31/2017 (which I hope to god Mr Sheer doesn’t take) and then a court case after. Shame on you for trying to cover yourself up. So Mr asshat what do you have to say now? I would apologize to the Blog as again you said it needed facts to be taken seriously yet you once again decided to throw out more lies like you do to appraisers. Good luck Brian. I hope you go down in flames and I can’t wait for everyone else to find out about this.

    IMG_2847

    4

    0
    • Baggins Baggins says:

      Got to love an ameture photoshop for no good reason other than because it’s;

      A; legally permissible.

      B; physically possible

      C; financially feasible.

      D; represents highest and best use

      Remember the infamous ‘interview’? LOL.

      This train wreck is not going to dissipate energy any time soon.

      4

      0
  12. Pat says:

    Already on the way

    3

    0

Leave a Reply

Your email address will not be published. Required fields are marked *

xml sitemap
AMC

Scheer Motion to Dismiss Coester vs Scheer Lawsuit

by AppraisersBlogs time to read: 3 min
25