You’re just like crosstown traffic, So hard to get through to you

You know I never mention North American Title. They’re owned by Lennar and they have their own share of issues. Today’s another day, and I’m thinking that this is going to leave a mark… These corporate raiding suits are going to reach critical mass soon and it will be interesting to see how it all shakes out.

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Which brings me to my next curiosity. NASCAR Teddy’s Excellent Title Adventure.

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The spike is obviously the lack of earnings announcement, but look how they’ve been climbing out of that. Every day I get an alert about how they’ve recovered X% since the announcement. Bizarre.

Back over at Jerry and Patty’s debacle, this came in over the weekend:

Mercury is giving out paystubs so that people can file their work force payday claims for unpaid wages. BEWARE some of them are coming out saying you were paid through a date that is incorrect. Can you spell FRAUD? Make Mercury revise them to show the correct day you were screwed but keep your copy of the fictitious one as evidence as an ongoing investigation may prove frutal for all of us!

Let’s follow that up with a little history lesson:

In the 1970’s Jerry Hauptman and Jack Brockman (Sr Legal Counsel) got in bed with a developer who orchestrated some fraudulent Installment Land Contracts and Stewart denied coverage under the fraud provisions of the underwriting agreement. In addition United was in the arrears on their remittance for underwriting fees. First American stepped in and offered to cover the claims and past due remittance in return for a 10 year underwriting agreement in which Jerry and Jack required that the fraud provision be excluded. First American in their zeal agreed to the exclusion of the fraud provision which became known amongst the Title Insurers as the “Hauptman Underwriting Agreement” which is one of the reasons why United and Mercury never secured an underwriting agreement with another insurer as they were never willing to exclude the fraud provision. The Underwriting Agreement was effective July 31, 1997 and was concurrent with the sale of the First American direct operation. In December of 1977 Steve Brockman (son of Jack Brockman) was brought in as the President of First American Title of Denver as Jerry and Jack grew tired of Harry Paulson who remained under the payroll of First American TItle while running the United Title owned company, while simultaneously owning other title companies in rural areas of Colorado.

The name First American Heritage was not adopted until some time in the late part of 1980 – maybe 1986 –

Jerry bought (or took over) Title America in 1982 as the owner Ted McSherry could not pay his bills or meet payroll. It wasn’t until Steve Brockman and Doug Peters had a falling out in 1983 that Jerry moved Doug Peters over to Title America.

Jerry and Patty bought out some of the Hauptman Family Members in 2005 but not the Hauptman Family Trust which owned the bulk of the company. It is believed that Jerry and Patty owned 15%, Mary ??? owned 10%, First American 20% and the Family Trust held the remaining 55%. Jerry, Mary and Ron hold interests within the Family Trust.

And one final chart. This one’s interesting when you consider the screwing they took from Jerry. You can actually see that day in the chart.

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OK, I lied.  Just like you can see Bill’s earnings announcement in this chart.

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1 comment for “You’re just like crosstown traffic, So hard to get through to you

  1. OldTitleGuy
    August 19, 2008 at 10:17 pm

    There might be a few less suits of this nature in the future in light of California Supreme Court’s decision in Edwards v. Arthur Andersen (August 7th, I think) having to do with enforcement of non-compete clauses in contracts. Seems that sort of thing is contrary to law with some limited exceptions.

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