I’ve written some previous articles about United Employee Benefits, a company that made my watch list and was sending unsolicited faxes for debt relief services.
The tipster (send in your tips here) said, “UBE or United Employee Benefits is still sending unsolicited faxes as of Dec 6, 2011. I called Mr. Stone and asked him why he is sending me unsolicited faxes in violation of Sate and Federal law and, in the face of the California Cease and Desist Order #H-11212 SF issued and naming him personally by the California Department of Real Estate on 13 Sept, 2011, signed by Acting Real Estate Comissioner Barbera J. Bigby, He acted as if he didn’t know about it, claiming he would need to elevate this to “upper management”. He even played up his ignorance by asking for the state realestate web site that posted the order. Amazing.”
It turns out the State of California did issue the order against United Employee Benefits, Rick Stone, Tim Gibbons, Barry Johnson, and Jenifer Yofee on September 13, 2011.
The order says UEB was acting as a real estate broker or engaged in mortgage loan activity in California without a license.
United Employee Benefits was alleged to have “acted in the capacity of, or assumed to act as a real estate broker within the State of California within the meaning of Section 10131(d) of the Code, including solicitation of borrowers for or negotiation of loans or performance of services for borrowers or lender or note owners in connection with loans secured directly or collaterally by Liens on real property, for or in expectation of compensation.” – Source
It appears the faxes United Employee Benefits (UEB) has been sending out, and that I reported on in February of 2011, caught the attention of regulators.
How Dumb Can United Employee Benefits Be?
The California order says, “On or about April 25, 2011, the Oakland District Office of the Department received a fax advertisement from National Employee Benefits Group, which now operates under the name UEB, listing relief programs including resolving foreclosure proceedings, mortgage loan modification, restructuring programs and renegotiating home loan balances.”
Wait for it. It gets worse.
“On or about May 3, 2011, a Department Deputy Commissioner (Deputy) placed a shopper call to UEB in order to determine if acts requiring a license were being performed. The Deputy represented that he sought a loan modification for a property commonly know as [X]. During the phone call, Johnson represented that he and UEB, can help her (Deputy) modify her mortgage. The Deputy was told to send in documentation and a check equal to a month’s mortgage payment. Johnson email the Deputy additional information about the loan modification.
On or about May 13, 2011, the Deputy received a modification agreement signed by Gibbons. The agreement required an initial payment of $1,996.74 and three (3) installments of $300 with a fourth payment of $250 for “home loan modification submission and mitigation services.”
On or before May 13, 2011, Yoffe emailed the Deputy requesting additional documentation, to which she, the Deputy, responded on or about May 13, 2011.
On or about May 16, 2011, the Deputy received a phone call from Stone, who explained that he would be working on the loan modification and wanted to answer some of the Deputy’s questions. Stone advised the Deputy that the fee was not refundable, and to not worry, because the “always get the loans modified.”
Now that’s what I call stupid.
United Employee Benefits Hit With Cease & Desist. But Wait, That's Not All. by Steve Rhode
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.