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.
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