Sometimes referred to as “black hats,” the cocky predatory brands operating in MHVille should take notice. ‘Gray hats’ tempted to turn predatory ‘black hat;’ the case outcome reported herein may offer a good reason to think twice. ‘White hats‘ and affordable housing consumers who are hurt by an artificially diminished MHVille? Take heart. A jury found billionaire Sam Bankman-Fried (SBF) guilty last week on all charges in a major case that only took the jurors a few hours of deliberation to decide. As left-leaning CNN said on 11.2.2023: “Bankman-Fried, 31, was accused of mismanaging customer funds stored in his crypto exchange, FTX, to enrich himself and his family. He was found guilty of seven counts of fraud and conspiracy and could spend the rest of his life in jail.” Some sources are saying SBF could be sentenced to spend 100 to 110 years in prison. Yet not so long ago, Bankman-Fried was a seemingly well-connected Democratic megadonor who at times tossed money to Republicans too.  SBF’s tale is one of a heady rise and a stunning fall.

Sam Bankman-Freid is also the tale of a wealthy and connected ‘insider’ in the ‘rigged system’ who was operating fraudulently that finally met lady justice and lost.

As an interesting, purported factoid many missed, left-leaning Vanity Fair and echoed by CNBC reported that: “Sam Bankman-Fried Wanted to Pay Donald Trump Not to Run for President Again—And Trump Was Apparently Willing to Do It for $5 Billion.” Be that as it may, that clearly suggests that Democratic megadonor SBF was not a Trump supporter.

lol what??

SBF was trying to pay Trump $5 billion not to run again. pic.twitter.com/ffbmfI3R9F

— Brad Michelson (@BradMichelson) October 2, 2023

Part I of this report was provided to MHProNews courtesy of the WND News Center.  It provides specifics on SBF’s conviction on all charges.

Part II (A) is an update of a previously provided brief on massive financial scandals and crimes in the U.S., including the housing-financial scandal earlier in this century. Part II (B) are lessons learned for white hat and black hat professionals and for affordable housing consumers, including those in MHVille.  Our industry’s white hats and consumers may need some encouragement that the battle to win in a rigged system has repeatedly been successfully accomplished. As the following will reflect, it takes time, solid evidence, and persistence.

MONEY U.S.

CRIME AND PUNISHMENT

Sam Bankman-Fried convicted on all charges

Jury deliberated only a few hours

Jason Cohen
Daily Caller News Foundation

A jury found disgraced cryptocurrency tycoon and Democrat megadonor Sam Bankman-Fried guilty of fraud-related charges on Thursday.

Bankman-Fried co-founded and served as CEO of cryptocurrency exchange FTX, which collapsed in November amid allegations the company was mishandling billions in customer funds. The Department of Justice indicted Bankman-Fried on seven fraud and conspiracy-related charges in August, alleging he masterminded a scheme to divert the money to fund campaign contributions, donations to charities and real estate acquisitions.

The jury found Bankman-Fried guilty on all seven charges, reaching the verdict after around four hours of deliberations, according to The Messenger. Four of the charges have potential prison sentences of up to 20 years each, but the judge will make the final decision on sentencing.

His sentencing is scheduled for March 28, according to The New York Times.

The government gave its second closing statement, saying that, even if you believe Sam Bankman-Fried‘s testimony, then he himself has proved that he’s guilty 👀

The judge is currently reading the jury their instructions, and deliberations will likely begin between 2-2:30pm ET ⏳ pic.twitter.com/dSNPl5Y72D

— Laura Shin (@laurashin) November 2, 2023

Bankman-Fried had pleaded not guilty to the August indictment and faces a potential life sentence, according to CNBC.

The Democrat megadonor’s trial began in October and he has been in jail since August after the judge presiding over his case revoked his bail due to alleged witness tampering. Before that, he was under house arrest at his parents’ California home on a $250 million bond after the Bahamas extradited him to the U.S.

Bankman-Fried donated nearly $39 million to back Democrat-aligned causes and was the second-largest individual contributor to such groups during the 2022 midterm election cycle.

The former cryptocurrency CEO “misappropriated and embezzled FTX customer deposits, and used billions of dollars in stolen funds for a variety of purposes, including … to help fund over a hundred million dollars in campaign contributions to Democrats and Republicans to seek to influence cryptocurrency regulation,” according to the August indictment against him.

Caroline Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research, which is the sister hedge fund to FTX, testified that he instructed her to commit fraud regarding FTX and Alameda’s relationship. She asserted that he established a system to permit Alameda to withdraw unlimited funds from FTX.

“As a result of the spending of customers’ deposits, FTX and Alameda had a multi-billion-dollar deficit of customer funds,” the indictment states.

Bankman-Fried allegedly believed he had a 5% shot of becoming president at some point, Ellison testified.

This story originally was published by the Daily Caller News Foundation. ##

MHProNews note: the NBC News and Fox News videos below were not part of the report above or below. But the second, third, and fourth items that follow immediately below serve to illustrate the point that public officials are often made aware of apparently risky or illegal behavior sometimes years before action is finally taken.

SBF is just one of several mega-frauds and financial fiascoes in the 21st century.  For those who keep hearing that manufactured housing lending still needs to be punished for the misdeeds of 20 plus years ago (hah!), what about Fannie and Freddie?  Consider these flashback insights well in advance of the 2008 financial crisis.

Part II – Additional Information with More MHProNews Analysis and Commentary

The following was first published by WND on May 11, 2021 at 7:16pm but is adapted and updated here below by and for Manufactured Home Pro News (MHProNews).

The Solution to Big Tech and the Oligarchs 

Anyone who thinks Big Tech will be reined in by regulations has not been paying close attention. The following cases exposed years of documented corporate, regulatory and accounting failures. They spotlight massive corruption and mainstream media misses.

• Sam Bankman-Fried (SBF) and FTX
• Bernard “Bernie” Madoff
• Theranos
• Enron
• WorldCom
• VW “Diesel-Gate”
• WeWork
• Solyndra
• Lehman Brothers (financial-housing crisis)
• Fannie Mae, Freddie Mac (Government Sponsored Enterprises/GSEs – financial-housing crisis).

Collectively, that list involved hundreds of billions of dollars in losses by investors. Various types of fraud, corruption and deception occurred. While the details of the purported scams may differ, because taxpayers and the broader economy were impacted in the cases involving Lehman Brothers and GSEs housing-finance scandals, the ripple effects of those resulted in the so-called Great Recession (circa 2008). The economic impact of the Great Recession on real estate and other parts of the economy collectively cost Americans trillions of dollars.

Among the questions that thinking people should wonder is this. What happened to the regulators in those cases? Why where they routinely late to act? Isn’t the job of regulators and law enforcement agencies to protect the public interest, sometimes specifically the economy or housing?

John Kenneth Galbraith said: “Regulatory bodies, like the people who comprise them … become, with some exceptions, either an arm of the industry they are regulating or senile.” Bingo.

Modern robber barons are dominating information and capital. Cold Fusion’s documentary about the Theranos’ scandal observed: “It’s the illusionary effect where if you repeat a lie enough times people start to believe it, especially if you have credible names surrounding the product.”

Problematic products or services can emerge from corrupt companies.

Theranos’ Elizabeth Holmes is shown with then Vice President Joe Biden (D) and President Barack Obama (D). In the massive Enron scandal, Ken Lay and Jeff Skilling are shown with then President George W. Bush (R). Those establishment politicians from both major parties are sufficient to make the point that the “illusionary effect” of “repeating a big lie enough times” when “credible names” are involved can  and does work.

Harry Markopolos and his colleagues spent years trying to get public officials and mainstream media to expose the massive Bernie Madoff fraud that they knew existed. It took years before Markopolos was taken seriously and officials finally acted. Forbes says Madoff losses may have exceeded $50 billion.

Other regulatory failures are hiding in plain sight. The New York Times quoted Warren Buffett: “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”

Buffett’s “class” profited wildly in the 2008 and 2020 economic upheavals. How? CNBC quoted billionaire Bill Gates: “I didn’t even want to meet Warren [Buffett] because I thought, ‘Hey this guy buys and sells things, and so he found imperfections in terms of markets, that’s not value added to society, that’s a zero-sum game that is almost parasitic.'”

The CDC defines parasitic: “A parasite is an organism that lives on or in a host organism and gets its food from or at the expense of its host.”

Buffett said, “The most important thing for me is figuring out how big a moat there is around a business. What I would love, of course, is a big castle and a big moat with piranhas and crocodiles.”

When carefully examined, several of the oligarchs and their businesses employ “parasitic” “moat” and “sabotage monopoly” methods. They create a slow-motion monopolization of various markets. Experts like James Schmitz Jr. say monopolies “inflict great harm on low- and middle-income Americans.” Schmitz and some of his economic colleagues at the Minneapolis Federal Reserve specifically mentioned the impact on these issues on affordable manufactured housing.

The solution to this problematic 21st century pattern? Vigorously enforce existing laws. That includes the need to seriously enforce antitrust laws to break pernicious giants up. They can obviously cause social, economic, and moral harm. Once broken up, watch the economy and America soar.

L. A. “Tony” Kovach ##

MHProNews note: the videos above and the one below “The Solution to Big Tech and the Oligarchs” were not part of the original op-ed above. But they illustrate the point that purportedly fraudulent and unjustified risks were being taken known to corporate officials, and sometimes downplayed or ignored by regulators and public officials too. Yet, for whatever reasons, the schemes were allowed to continue. The notion that big government is ‘good’ government is obviously not necessarily so.

Part II B. – What do Enron, Theranos, WorldCom, VW “Diesel-Gate,” Solyndra, Bernard “Bernie” Madoff, WeWork, Lehman Brothers, Fannie Mae, and Freddie Mac have in common?

Consider the interesting result to the search using Bing AI used in the Part II B subheading above.

Learn more:

1. manufacturedhomepronews.com 2. manufacturedhomepronews.com 3. manufacturedhomepronews.com 4. manufacturedhomelivingnews.com 5. sc.edu“

Once upon a time (2021), a specific search like the above yielded ONLY MHProNews as a result. But since then, U.S. News and World Report and a university published articles on a similar theme.

 

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The University of South Carolina item above (#5 – SC.edu) was per their website “Updated on: August 11, 2021,” which also happened to be after MHProNews’ initial report that considered the implication of those financial scandals as a group as opposed to individually.

Whether it is coincidental, or someone with those organization spotted our reports/analysis and picked up on the topic here on MHProNews, MHLivingNews and/or on WND, it is a worthy question.  Another notable question is why the WND.com post by this writer doesn’t appear in the main Bing search result that is shown above?

> “Is it fair to say that most in not all of those same notorious corporate financial scandals somehow eluded earlier actions by public officials even though there were whistleblowers in several instances that tipped officials of wrongdoing?”

It is true that in several instances, whistleblowers had alerted public officials of wrongdoing in these companies. However, it is not accurate to say that all of these scandals eluded earlier actions by public officials. For example, the Bernard “Bernie” Madoff scandal was uncovered by the Securities and Exchange Commission (SEC) in 2008 after a whistleblower had alerted the agency of the fraud ¹. Similarly, the Enron scandal was exposed by a whistleblower who had informed the SEC of the company’s fraudulent accounting practices ¹. In other cases, such as the VW “Diesel-Gate” scandal, public officials were aware of the issue but failed to take action ². It is important to note that whistleblowers play a crucial role in exposing corporate wrongdoing and can help prevent future scandals ¹.

Learn more:

1. forbes.com 2. constantinecannon.com 3. bbc.com“

> “Pardon me, but I think you missed part of the point of the prior question. Public officials didn’t discover the Madoff or Enron scandals, whistleblowers did. In some cases, those whistleblowers had to be persistent in order to get public officials to act, isn’t that what securities analyst Harry Markopolos said in the Madoff case?”

 

> “So, manipulation of the targets of such scams by various means kept the rip-off going for longer than it may otherwise have in the absence of gaslighting and plausible sounding evidence in support of the rip-off, is the correct?”

> “There are some researchers and others in the manufactured housing industry that believe that the manufactured home industry has been artificially manipulated to allow for consolidation that may not occur to the same degree absent misbehavior. Who in manufactured housing have explored such concerns? What are some of the allegations raised by people within our outside of the industry?”

There are several allegations of artificial manipulation in the manufactured housing industry that have been raised by researchers and industry insiders ¹²³. One of the main concerns is the consolidation of the industry, which some believe has been facilitated by misbehavior ¹³. Researchers have pointed out that consolidation requires throttling manufactured home production, sales, and new entries¹. This has led to a diminishing supply of manufactured homes, which has contributed to the consolidation of the industry ¹. In addition, there have been allegations of price-fixing and systematic inflation of manufactured home lot rental prices by some manufactured home community management companies and market data providers ²⁴. These allegations have resulted in several antitrust lawsuits against these companies ²⁴. It is important to note that these allegations are not unique to the manufactured housing industry and are often raised in other industries as well ⁵.

Learn more:

1. manufacturedhomepronews.com 2. manufacturedhomelivingnews.com 3. manufacturedhomepronews.com 4. manufacturedhomepronews.com 5. manufacturedhomelivingnews.com 6. manufacturedhomepronews.com 7. manufacturedhomepronews.com“

Looking Back, Looking Ahead

When mistakes are made, an acknowledged way of dealing with past errors is the admit then and try to learn from them.  In the news media realm, the Society of Professional Journalists (SPJ) Code of Ethics advises that publishers and writers clarify an error as rapidly as possible. “Acknowledge mistakes and correct them promptly and prominently. Explain corrections and clarifications carefully and clearly,” says the SPJ Code of Ethics.

While MHProNews is not a member of the SPJ, MHProNews has nevertheless made reference to the above numerous times.

Those SPJ journalistic ideals of holding the powerful to account and holding others in journalism to account are both practiced here at MHProNews. We have a history of fact checking reports by mainstream media and by those in manufactured home trade media.

MHProNews has also acknowledged the past error in giving too much trust to the Manufactured Housing Institute (MHI) and some of their leaders. Someone that looks at the first 6 years of our reports and analysis will find a pivot that began following those earlier years. As factual insights and understanding grew, MHProNews demonstrably has taken clear steps following the realization of the realities of why manufactured housing was underperforming. We have spotlighted how the powerful and connected in our industry have behaved.  Specific factors that the evidence pointed to helps explain the industry’s historically low levels of production in in the 21st century.  Note that MHProNews will be updating the call out boxes on the graphic below soon to show the additional monthly data for 2023 now in, which can be seen at this link here.

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below the graphic below or click the image and follow the prompts.

While there were several factors that caused MHProNews to pivot from being a periodic supporter and member of Manufactured Housing Institute (MHI) to becoming a critic of that national manufactured home trade group, some credit for that has to be given to whistleblowers and tipsters.

Note that while MHARR’s monthly messaging via the now defunct Journal of Manufactured and Modular Housing and their emails were useful, MHI backers seemed to have plausible explanations for the concerns raised by MHARR.  So, what helped tip the scales in MHARR’s direction were whistleblowers within the MHI orbit.

Now, with Bing AI’s and the historic evidence outlined above in mind, there is a sizable body of evidence that gaslighting, the illusory truth effect, and repetition of the MHI-corporate leaders’ narrative are arguably among the factors that kept their shortcomings from being more widely understood sooner.

MHI leaders have apparently arranged an ‘amen corner’ that routinely repeats their party line narrative.

As to the occasional criticism by this or that blogger within the MHI orbit, the case can be made that such critiques are less than authentic, and more due to giving say a blogger the illusion that they are interested in the truth and accountability too.  Restated, such critiques appear to be self-serving for those involved. But examples can be shown that arguably reflect that previously some blogger(s) once did more authentic critiques, until they abruptly pivoted and largely became supportive of MHI.  Rewards seemed to flow to those publications and bloggers who appear to be involved in fostering that “illusory truth effect” that has helped make this purported market manipulating scheme possible for so long.

It was a combination of factors, including whistleblowers within MHI or with ties to MHI and/or MHI linked state associations that pointed to facts that they were aware of which began the ‘awakening’ process or the “aha!” moment for this publication and this writer.  Credible complaints supported with evidence came from MHI members about MHI, which bolstered the type of concerns and issues that MHARR had already raised. Also, when statements by insiders where considered alongside other evidence, the various puzzle pieces begin to form a picture of what MHI was actually doing vs. what MHI said it was trying to do.

 

MHI historically pivoted in the late 1990s and joined MHARR to get the Manufactured Housing Improvement Act (MHIA) enacted into law.  That pivot was deemed successful by both MHARR and MHI. So what has happened to MHI post-Berkshire Hathway’s entry into MHVille? The fact that MHI is routinely ‘partnering’ with conventional housing nonprofits that are the natural rivals of manufactured housing rather than working with MHARR to address the industry’s issues ought to be a significant clue that MHI corporate and senior staff are intentionally and/or de facto by following corporate directives are working to consolidate the industry in ways that appear to be violations of various laws.

Antitrust – Past and Present

If there is a pattern of ongoing conspiratorial efforts to manipulate the marketplace in a way that unjustly benefits a few while harming others, then the statute of limitations may not begin to run until the last conspiratorial action is taken. Who says? The U.S. Department of Justice (DoJ).

That can be significant because what in hindsight may prove to be a key piece of evidence was provided by a source to MHProNews.  The document was a letter from 21st Mortgage Corporation, a sister brand to Clayton Homes and Vanderbilt Mortgage and Finance (VMF) and wholly owned by Berkshire Hathaway.  The comments by Samuel Strommen, J.D., then at Knudson Law, help explain the significance of the letter in terms of antitrust law.

Per Strommen: “Clayton’s conduct here could be construed as a potential violation of Section 2 of the Sherman Antitrust Act, which states in part: “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony[.]”

Note: to expand this image to a larger or full size, see the instructions
below the graphic below or click the image and follow the prompts.

Note: to expand this image to a larger or full size, see the instructions
below the graphic below or click the image and follow the prompts.

 

A possible array of charges could conceivably emerge from such evidence.

 

Communities Impacted by Crippling or Killing Off Thousands of Street Retailers

But to further understand just how much crippling or eliminating thousands of independent retailers impacted the manufactured home industry, one must keep in mind that so-called street retailers (as opposed to manufactured home land-lease community- or development-based retailers) were often the primary source of new customers for manufactured home communities (MHCs – sometimes errantly called “mobile home parks”).

So, when street retailers were lost, the business models of thousands of independent MHCs was also disrupted.

Between natural attrition in MHCs (modest but noteworthy), the great big sucking sound of a percentage of residents that may have bought a conventional house during the runup to the subprime crisis was combined with the loss of new residents previously supplied by retailers looking for a location for their customer’s new homes began to result in rising vacancies in mom-and-pop MHCs. As vacancies in the early 21st century began to grow from a variety of factors, including repossessions, deaths, or moveouts, the profitability of some properties was marginalized. That pattern made numbers of them ripe for acquisition by consolidators in the manufactured home community sector.

So, while there are several contributing factors to the decline in manufactured housing, the impact of the harmful behavior of Berkshire Hathaway owned brands should not be understated.

Indeed, part of what makes for an interesting aspect of the case for antitrust action against Clayton, 21st, et al is this. Significant parts of the evidence against them can often be found from their own remarks, documents, and that of their cheerleaders.

To illustrate, consider this Q&A with Bing AI.

> “Robert Miles did the video interview with Kevin Clayton. Miles is a pro-Buffett, pro-Berkshire guy. Kevin Clayton himself spoke about the importance of the moat as preached by Warren Buffett and shared with his team, right? Bud Labitan’s book on the Moat is also by a pro-Berkshire Hathaway source, and it spelled out the importance of financing offered by Clayton-connected lenders in the marketplace, correct? The financial site GuruFocus is routinely pro-Buffett, but it criticized the business practices of Clayton Homes in a critique of their use of the moat. Can you provide some context for what those sources had to say with respect to the antitrust allegations in manufactured housing made by Samuel Strommen while he was at Knudson Law?”

 

Robert Miles, a pro-Buffett author, conducted an interview with Kevin Clayton, CEO of Clayton Homes, in which Clayton discussed the importance of the “moat” concept preached by Warren Buffett ¹. Bud Labitan’s book on the moat is also written from a pro-Berkshire Hathaway perspective and highlights the importance of financing offered by Clayton-connected lenders in the marketplace ². GuruFocus, a financial site that is routinely pro-Buffett, has criticized the business practices of Clayton Homes in a critique of their use of the moat ³. Samuel Strommen of Knudson Law has raised concerns about the monopolization of the manufactured housing industry by Warren Buffett-led Berkshire Hathaway, including allegations of price-fixing and systematic inflation of manufactured home lot rental prices by some manufactured home community management companies and market data providers ⁴. It is important to note that these sources have different perspectives and opinions on the topic, and it is up to the reader to evaluate the information and form their own conclusions.

Learn more:

1. youtube.com 2. gurufocus.com 3. manufacturedhomepronews.com 4. gurufocus.com 5. valuewalk.com 6. manufacturedhomepronews.com 7. manufacturedhomepronews.com 8. manufacturedhomepronews.com 9. manufacturedhomepronews.com 10. manufacturedhomepronews.com 11. manufacturedhomepronews.com 12. einpresswire.com 13. tampafp.com 14. einnews.com 15. manufacturedhomepronews.com 16. seekingalpha.com 17. audible.com 18. amazon.com 19. goodreads.com 20. urban.org 21. frips.com“

> “One of the sources you linked was the Urban Institute, which asked the question – why are so few manufactured homes being made? Indeed, didn’t Manufactured Home Pro News help document the sharp decline of manufactured housing since the late 1990s to today? And given the financial resources of Berkshire Hathaway, and the tremendous need for millions of affordable homes, isn’t it logical to consider the notion that they and some allies want the industry to underperform, at least for a time, so that they can consolidate the industry? After all, how much did Clayton Homes grow in manufactured housing market share since 2003 when Berkshire Hathaway acquired them?”

 

According to a report by Manufactured Home Pro News, the manufactured housing industry has been underperforming since the late 1990s ¹. The reasons for this underperformance are complex and multifaceted, but some researchers and industry insiders have raised concerns about the consolidation of the industry, which they believe has been facilitated by misbehavior ¹²³. Researchers have pointed out that consolidation requires throttling manufactured home production, sales, and new entries ¹. This has led to a diminishing supply of manufactured homes, which has contributed to the consolidation of the industry ¹. Since Berkshire Hathaway acquired Clayton Homes in 2003, the company has grown its market share in the manufactured housing industry ⁴.

Learn more:

1. manufacturedhomepronews.com 2. investors.com 3. manufacturedhomepronews.com 4. publicintegrity.org 5. manufacturedhomepronews.com 6. einnews.com 7. manufacturedhomepronews.com 8. manufacturedhomepronews.com 9. einpresswire.com 10. manufacturedhomepronews.com 11. manufacturedhomepronews.com 12. manufacturedhomepronews.com 13. reuters.com 14. manufacturedhomepronews.com 15. manufacturedhomepronews.com 16. bing.com 17. manufacturedhomepronews.com 18. manufacturedhomepronews.com“

While Bing AI didn’t share the specifics in that response, Sam Strommen did, as quoted and linked above. From a roughly 13 percent market share, Clayton today hovers around 50 percent of the market and has been at that level for about 5 years. Indeed, it seems that Clayton is deliberately not growing past the 50 percent level, perhaps to lessen antitrust concerns.   But if it is market manipulation that has given them a key boost in their market share, and whether they did that in concert with others in the industry or solo, either way, antitrust laws could have been violated.

Strommen’s legal thesis put it more pointedly.

 

 

Ironically perhaps, but the late Sam Zell added a keen piece of insight into this mix when he said that he liked the oligopoly nature of the manufactured home industry. An oligopoly can be a form of monopolization.

Zell’s firm did more than just add that monopolistic insight. His brand, Equity LifeStyle Properties (ELS) went a step further, and bought Datacomp, MHVillage, and by owning the later, got trade publication MHInsider too.

 

 

Information useful to aggressive price hikes referenced by Bing AI above that are part of the subject of antitrust lawsuits involving several Manufactured Housing Institute (MHI) members eventually followed.

 

 

> “It has been said that when the Securities and Exchange Commission went after Cavco Industries and Joe Stegmayer, that Stegmayer stepped down from his role at Cavco. But Stegmayer maintained his position as the chairman at the time of the Manufactured Housing Institute, correct? Doesn’t that seem odd given MHI’s Code of Ethical conduct?”

According to a report by Manufactured Home Pro News, the Securities and Exchange Commission (SEC) filed a complaint against Cavco Industries, former CEO Joseph Stegmayer, and former CFO and Chief Compliance Officer Daniel Urness, alleging that Stegmayer and Urness caused Cavco to purchase shares of publicly traded companies on material non-public information ¹². Stegmayer stepped down from his role at Cavco after the complaint was filed ¹. However, Stegmayer maintained his position as the chairman of the Manufactured Housing Institute (MHI) at the time ³. It is unclear whether this was a violation of MHI’s Code of Ethical Conduct, which requires members to “conduct their business affairs with honesty, integrity, and in accordance with all applicable laws and regulations” ⁴. It is important to note that these allegations are still being investigated and that no final conclusions have been reached.

Learn more:

1. manufacturedhomelivingnews.com 2. mhvillage.com 3. manufacturedhomepronews.com 4. manufacturedhomepronews.com“

> “Pardon me, but Stegmayer and Cavco both settled the matter with the SEC by paying large fines, didn’t they? So, those are now more than allegations and they are no longer being investigated because Stegmayer and Cavco settled with the SEC, isn’t that correct?”

You are correct that Joseph Stegmayer and Cavco Industries settled with the Securities and Exchange Commission (SEC) by paying large fines after the SEC filed a complaint against them . The complaint alleged that Stegmayer and Urness caused Cavco to purchase shares of publicly traded companies on material non-public information . The settlement with the SEC resolved the matter, and the allegations are no longer being investigated .”

While this Q&A and more details could be added, this seems to be a fine point to note that the disgraced Stegmayer was an ex-Clayton division president.  What has been occurring in various aspects of the manufactured housing industry could be described as part of the Claytonization of the business, because the business model that existed in the 20th century has to a great extent be transformed following Berkshire Hathaway’s entry into the field.

Summary and Conclusion

There is progress being made in exposing the self-serving manipulation of the market in MHVille, albeit slowly, but nevertheless noteworthy. The black hats know it, because reliable sources inform us that they are routinely on our pages scouring reports just as others do too.

Investors in MHVille? Bing AI offered the following, shown above, as the tips to avoid falling into a scam.

1. Do your research: Before investing in a company, conduct thorough research on the company’s history, financial statements, and management team ¹.
2. Be wary of “get-rich-quick” schemes: Be cautious of investment opportunities that promise high returns with little or no risk ¹.
3. Stay informed: Keep up-to-date with the latest news and developments in the financial industry ¹.
4. Be skeptical: Be skeptical of investment opportunities that sound too good to be true ¹.
5. Report suspicious activity: If you suspect fraudulent activity, report it to the appropriate authorities such as the Securities and Exchange Commission (SEC) or the Federal Bureau of Investigation (FBI) ¹.
6. Be aware of the risks: Understand the risks associated with investing and be prepared to lose money ¹.
7. Use caution with social media: Be cautious of investment opportunities that are promoted on social media platforms ⁴.
8. Educate yourself: Educate yourself on the signs of fraud and how to avoid investment scams ².

Investors should dig into the specific publicly traded firms that are periodically updated here on MHProNews.

Staying informed, being skeptical, being aware of the risks and self-education are among the reasons that thousands of industry professionals, perhaps you too, come to MHProNews daily.

Programming Notice. It is quarterly earnings season. There are other news items that are among the array of information routinely found here, and sometimes nowhere else in MHVille. Watch for some of the latest from your largest, most-informative, and reliable trade source for manufactured housing “Industry News, Tips, and Views Pros Can Use” ^© where “We Provide, You Decide.” ^©

 

Sun Communities ‘Compelling Supply–Demand Fundamentals’ ‘Virtually No New Supply Added for Years’ but Manufactured Home Sales Drop, Quarterly-Y2D2023 Data with Analysis; plus MHMarkets

Manufactured Home Loans Announced – Dale Baker – KeyBank President of Home Lending Gives Exclusive Added Insights to Launch of MHLoans by Financial Services Giant with Assets of $188 Billion

Manufactured Housing Production Decline Persists in Sept 2023 per Manufactured Housing Association ‘During Affordable Housing Crisis Affordable Manufactured Housing Continues to Underperform’, Facts Analysis –

Governor Hochul Signs 3 Bills ‘to Support Homeowners at Manufactured Home Parks’ – Consequences of ‘Predatory’ Manufactured Home Community Operators Spread in U.S.; plus MHVille Market Updates

Homelight-‘Why Does the U.S. Have a Housing Shortage, and What Can Be Done to Fix It?’ ‘Roots of Problem Run Much Deeper’ – NAR, NAHB, and Manufactured Housing; plus MHVille Markets Update

Facts-Data-Surveys-U.S. Manufactured Housing Industry Production Trends from all 50 States with Latest Census Data 10.2023 for Manufactured Homes+HUD Single Family Conventional Housing Sales

Part III – is our Daily Business News on MHProNews stock market recap which features our business-daily at-a-glance update of over 2 dozen manufactured housing industry stocks.

This segment of the Daily Business News on MHProNews is the recap of yesterday evening’s market report, so that investors can see at glance the type of topics may have influenced other investors. Thus, our format includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines.

The macro market move graphics below provide context and comparisons for those invested in or tracking manufactured housing connected equities. Meaning, you can see ‘at a glance’ how manufactured housing connected firms do compared to other segments of the broader equities market.

In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.

 

Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.

 

Headlines from left-of-center CNN Business – from the evening of 11.6.2023

• From OpenAI
• OpenAI unveils latest AI model, customizable GPTs and digital store
• Starbucks is handing out pay hikes and new benefits. But some are only for non-union workers
  Bank deposit delays: Some customers still haven’t been paid
• Fortnite scores its biggest-ever weekend with nostalgia-filled OG release
• Stop putting rhinestones on your steering wheel, federal government warns
• Harvard University stands in Cambridge, Massachusetts, on July 6, 2023.
• ‘Dire’ antisemitism allegations at Harvard could lead to donor exodus, billionaire Bill Ackman warns
• Whitney Wolfe Herd, founder and chief executive officer of Bumble, during an interview on “The Circuit with Emily Chang” in Montecito, California, US, on Wednesday, May 17, 2023. Herd said that AI could make singles better at courtship and envisions dating technology as a cure to America’s loneliness epidemic.
• Bumble founder Whitney Wolfe Herd steps down as CEO. She’ll be replaced by Slack’s leader
• Epic Games goes to court to challenge Google’s app store practices
• Drugstore closures could make pharmacy deserts even worse
• Paris Olympics with Ralph Lauren
• Hang out with Team USA at the Paris Olympics? Here are some extravagant options for deep-pocketed gifters
• How Goldman Sachs is navigating a more turbulent world
• Ryanair’s soaring profit means regular payouts to shareholders for first time in 40 years
• Heinz’s newest ketchup tastes like pickles
• Behold ‘Grok,’ Elon Musk’s AI chatbot with a ‘rebellious’ streak
• China hasn’t been this scary for investors in 25 years
• China’s corruption watchdog investigates former ICBC banker as clampdown continues
• Tyson recalls 30,000 pounds of chicken nuggets
• After a $1.8 billion verdict, the clock is ticking on the 6% real estate commission
• Google, Lendlease axe plans for $15 billion development in Bay Area
• Striking actors are reviewing Hollywood and TV studios’ ‘best and final offer’
• William Lewis is named publisher and CEO of the Washington Post
• Here’s how America’s economy could begin to weaken
• The Taiwanese American cousins going head-to-head in the global AI race

 

Note: to expand this image below to a larger or full size, see the instructions
below the graphic below or click the image and follow the prompts.

 

Headlines from right-of-center Newsmax 11.6.2023

• State Department Memo Critical of Israel Leaked
• A State Department memo marked “sensitive but unclassified” was leaked Monday, criticizing unwavering U.S. support for Israel, urging President Joe Biden to support a Hamas-demanded cease-fire, and calling for the Biden administration to publicly criticize Israel’s war on Hamas. The “dissent memo” was obtained by Politico, and may suggest a growing divide in the State Department on long-running U.S. solidarity with Israel. [Full Story]
• Gaza Death Toll Tops 10,000; UN Calls It a Children’s Graveyard
• Jon Voight: ‘These Animals Want to Wipe Out Jews, Christians’ | video
• State Dept. Memo Critical of Israel Leaked | video
• Biden in Bibi Call: Protect Palestinian Civilians
• Gaza Death Toll Tops 10,000; UN Calls It a Children’s Graveyard
• Zogby: Biden Policies Push Arab-Americans Away From Dems
• Gal Gadot to Screen IDF Footage of Hamas Atrocities
• Israel Plans Ongoing Gaza Security Control: Official
• US Ohio-Class Sub Arrives in the Middle East
• Boris Johnson Backs Israel, Visits Areas Affected by Hamas
• Blinken Wraps Up Mideast Tour Amid Israel War on Hamas
• Hamas Security Chief Killed, 34th IDF Soldier Falls in Gaza
• Obama Links Attacks to ‘Unbearable’ Israeli Occupation
• Newsmax TV
• Biggs: Testimony May Show Biden Special Counsel Conflicts
• Cruz: ‘Biden Fighting on Side of Cartels’ at Border
• Matthew Whitaker: Judge’s Valuations Questioned | video
• Hageman: Biden’s Weakness Destabilizes World
• Trump Lawyer Bobb: Trump’s Victory to Be ‘Bumpy Ride’
• Youngkin: Va. a Road Map for Conservatives | video
• Van Drew: Hamas Showed ‘Face of Evil’ in Attacks | video
• IDF’s Lerner: Remember Hostages in Cease-Fire Calls | video
• Bill Johnson: Biden Will Sign Israel Bill if He’s Serious | video
• Pierre Rehov: Islamic Jihadists a ‘Death Cult’ | video
• Newsfront
• Florida CFO Calls for Public Funding for Trump Defense
• Florida’s Chief Financial Officer Jimmy Patronis on Monday suggested that the state provide former President Donald Trump, now a resident of Florida, with public funding for his legal defenses against the various cases against him…. [Full Story]
• Wall St Ticks Higher as Fed Speakers, Treasuries Eyed
• U.S. stocks closed slightly higher Monday as investors awaited [Full Story]
• Trump Tangles With Judge, Complains of Treatment at N.Y. Fraud Trial
• Donald Trump complained of unfair treatment in defiant and rambling [Full Story]
• Jon Voight: ‘These Animals Want to Wipe Out Jews, Christians’
• Anti-Israel sentiment worldwide is playing into the hands of Hamas [Full Story]
• FDA Moves to Ban Toxic Additive in Sodas
• The Food and Drug Administration (FDA) moved to revoke the regulation [Full Story]
• Trafalgar Poll: Trump Squashing DeSantis in Iowa
• Former President Donald Trump leads Florida Gov. Ron DeSantis by more [Full Story]
• Related
• Rasmussen Poll: Trump Expands GOP Support to 50 Percent
• Axelrod Suggests Biden Should Drop Out of Presidential Race
• Harvard Pollster: Biden’s in Trouble
• Peter Lerner to Newsmax: War on Hamas ‘Going According to Our Plan’
• Israeli Defense Forces spokesperson Lt. Col. Peter Lerner told [Full Story]
• State Department Memo Critical of Israel Leaked
• A State Department memo marked “sensitive but unclassified” was [Full Story] | video
• 19 Ukraine Troops Killed in Awards Ceremony Strike
• Ukraine confirmed Monday that 19 service members were killed by a [Full Story]
• Russia Strikes Odesa, Damaging Museum, Injuring 8
• Kremlin: Putin Has Not Announced He’ll Run for Reelection
• Trump Declines Zelenskyy’s Invite to Kyiv
• Trans Mass Shooter’s Alleged Manifesto Leaked
• A conservative social media influencer released three pages of what [Full Story]
• N.J. Businessman ‘Removed, Assaulted’ Over US-Israel Flag at Eagles Game
• A longtime influential southern New Jersey businessman and political [Full Story]
• OpenAI Unveils Customized AI Bots
• OpenAI will enable ChatGPT users to build customized AI bots called [Full Story]
• Israel-Saudi Normalization Is ‘Inevitable’
• While intense fighting between Israeli troops and Hamas terrorists [Full Story] | Platinum Article
• Tesla Raises Wages 4 Percent in Germany Amid Union Pressure
• Tesla’s management in Germany informed 11,000 workers they will [Full Story]
• Is ‘Islamophobia’ a Problem in the US as Biden Claims?
• With incidents of antisemitism reaching historic highs in the U.S. [Full Story] | Platinum Article
• Gallup: In First, More Americans Say Death Penalty Applied Unfairly
• More Americans say the death penalty is applied unfairly than fairly, [Full Story]
• Intuit Poll: Gen Z Says Live for Now, Retirement Overrated
• Generation Z – which believes retirement is overrated – simply wants [Full Story]
• Trump Admin Mulled Noncitizen Ideological Screenings
• Immigration and Customs Enforcement (ICE) mulled the idea of [Full Story]
• CDC to Test Travelers for Respiratory Viruses
• The U.S. Centers for Disease Control and Prevention (CDC) will expand [Full Story]
• Washington Post Taps Ex-Dow Jones Chief as CEO
• The Washington Post has named veteran media executive Will Lewis to [Full Story]
• Report: US Service Members’ Personal Data Vulnerable
• The personal information of active-duty military personnel has been [Full Story]
• House GOP Discusses Changing Rule to Oust Speaker
• Republicans are discussing changing House rules to prevent a single [Full Story]
• Former Rep. Meijer Announces Michigan Senate Bid
• Former Republican Rep. Peter Meijer, who was one of 10 Republican [Full Story]
• Report: Sen. Sanders Staff Deputy Moves to AOC’s Team
• Bernie Sanders, I-Vt., Deputy Chief of Staff Mike Casca is [Full Story]
• Tamirat Tola Smashes NYC Marathon Record
• Tamirat Tola wasn’t thinking about breaking the New York City [Full Story]
• Oil Up Amid Saudi, Russia Supply Curbs
• Oil prices edged up on Monday after top exporters Saudi Arabia and [Full Story]
• TikToker Shocked at McDonald’s $16 Meal
• One American’s revelation of McDonald’s latest price hike has gone [Full Story]
• Axelrod Suggests Biden Should Drop Out of Presidential Race
• President Joe Biden should consider dropping out of the presidential [Full Story]
• Santos on Mounting Charges: Plea Deal ‘Not on the Table’
• George Santos, R-N.Y., who is facing mounting criminal charges, [Full Story]
• Russia Says It Test-fired an ICBM From a New Nuclear Sub
• The Russian military on Sunday reported a successful test launch of [Full Story]
• Study: Cut Medical Bills From Credit Reports
• A new study suggests most people experience relief when their medical [Full Story]
• Amazon Left Scrambling As Shoppers Find out About Secret Deals
• Finance
• Your Car Data Grabs Your Info – Including Politics
• How is this possible? The Mozilla Foundation studied 25 car brands and found some collecting data on sexual activity and political opinions. How can this happen?… [Full Story]
• Epic Games Accuses Google Play of Bullying Competitors
• GM-UAW Contract to Include More Affordable Bolt EUV
• The Vital Importance of Asset Protection Today
• Israel’s Inspira & Its Cutting-Edge Respiratory Care
• Health
• How Stress Damages Heart Health
• A person’s mental state can have a tremendous impact on heart health, two new studies report. Depression and anxiety accelerate the development of heart risk factors like elevated blood pressure, high cholesterol or type 2 diabetes, one study found. And the second study found…… [Full Story]
• Regular Marijuana Use Raises Risk for Heart Attack
• Drones Could Save Lives During Cardiac Arrest
• CDC Advisors Recommend Masks in Hospitals
• Tyson Recalls 30,000 Pounds of Chicken ‘Fun Nuggets’

Note: to expand this image below to a larger or full size, see the instructions
below the graphic below or click the image and follow the prompts.

APO = Apolo Global Management – bought Inspire Communities

BAM = Brookfield Asset Management – owns and invests in manufactured home communities (MHCs).

BLK = BlackRock – conglomerate has investments in firms and operations involved in manufactured housing.

BRK-A = Berkshire Hathaway – includes outright ownership of Clayton Homes, 21st Mortgage Corp, Vanderbilt Mortgage and Finance, other manufactured home industry linked firms (MHC brokerage, suppliers, etc.).

BX = Blackstone – Blackstone Group LP has made its first big bet on manufactured housing by buying a portfolio of communities sold by Tricon Capital Group Inc.

CDPYF = Canadian Apartment Properties Real Estate Investment Trust – also has manufactured home communities (MHCs).

CIGI = Colliers International Group Inc. – The Manufactured Housing and RV Group “We Assist Owners and Investors with Disposition, Acquisition, and Financing for Manufactured Housing Communities and RV Parks.”

CG = The Carlyle Group – has manufactured home communities investments.

CSGP = CoStar Group – is commercial real estate’s leading provider of information, analytics and online marketplaces. They acquired listing service Homes.com.

CVCO = Cavco Industries – manufactured home and other factory-built housing production, retail, finance, insurance.

ECNCF = ECN Capital Group – includes manufactured home lender Triad Financial Services.

ELS = Equity LifeStyle Properties – includes land lease manufactured home communities (MHCs), but also RV and marine slips holdings. Also has captive manufactured home retail operations, and parent to Datacomp/MHVillage.

FGF = FG Financial Group – FG Communities “Owns and Operates Growing Portfolio of Manufactured Housing Communities.”

KMMPF = Killam Apartment REITs- (includes manufactured home communities (MHCs).

LCII = LCI Industries – components for the manufactured home industry and others (RVs, housing, etc.).

LEGH = Legacy Housing – produces manufactured homes, tiny houses, retail, and captive finance operations.

LPX = Louisiana Pacific Corporation – components for the manufactured home industry and others (housing, etc.).

MHC-UN.TO = Flagship Communities Real Estate Investment Trust (REIT).

MHPC = Manufactured Housing Properties – land lease manufactured home communities (MHCs).

MMI = Marcus and Millichap – commercial real estate brokerage services that include land lease manufactured home communities (MHCs).

NOBH = Nobility Homes – produces and offers captive retail, financing, and insurance services for HUD Code manufactured homes and modular homes.

PATK = Patrick Industries – components for the manufactured home industry and others (RVs, housing, etc.).

SKY = Skyline Champion – produces and offers captive retail, financing, and insurance for HUD Code manufactured homes and modular homes.

SUI = Sun Communities – includes land lease manufactured home communities (MHCs), but also RV and marine slips holdings. Also has captive manufactured home retail operations.

UMH = UMH Properties – includes land lease manufactured home communities and captive manufactured home retail, leasing, and financing operations.

UFPI = UFP Industries – components for the manufactured home industry and others (housing, etc.).

 

• • • NOTE 1: Chart above of manufactured housing connected equities includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry finance lender.
    • NOTE 2: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
    • NOTE 3: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm.  Thus, there is still periodic activity on DVLY.
    • Note 4: some recent or related reports to the REITs, stocks, and other equities named above follow in the reports linked below.

2023 …Berkshire Hathaway is the parent company to Clayton Homes, 21^st Mortgage, Vanderbilt Mortgage and other factory-built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.

 

2022 was a tough year for many stocks. Unfortunately, that pattern held true for manufactured home industry (MHVille) connected stocks too. See the facts, linked above.

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Disclosure. MHProNews holds no positions in the stocks in this report.

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• Note 1: MHVille means manufactured housing industry, MHVille also means artificially smaller manufactured housing (MH) industry,
• Note 2: Manufactured housing, building, factories, retail, dealers, manufactured home, communities, passive mobile home park investing, suppliers, brokers, finance, financial services, macro-markets, manufactured housing stocks, Manufactured Home Communities Real Estate Investment Trusts, MHC REITs.
• Note 3:
  

  APO, Apollo Global Management, BAM, Brookfield Asset Management, BLK, BlackRock, BRK-A, Berkshire Hathaway, BX, Blackstone, CDPYF, Canadian Apartment Properties Real Estate Investment Trust, CIGI, Colliers International Group Inc, CG, The Carlyle Group, CSGP, CoStar Group, CVCO, Cavco Industries, ECNCF, ECN Capital Group, ELS, Equity LifeStyle Properties, FGF, FG Financial Group, FG Communities, KMMPF, Killam Apartment REITs, LCII, LCI Industries, LEGH, Legacy Housing, LPX, Louisiana Pacific Corporation, MHC-UN.TO, Flagship Communities Real Estate Investment Trust (REIT), MHPC, Manufactured Housing Properties, MMI, Marcus and Millichap, NOBH, Nobility Homes, PATK, Patrick Industries, SKY, Skyline Champion, SUI, Sun Communities, UMH, UMH Properties, UFPI, UFP Industries.

That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports linked herein. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)

By L.A. “Tony” Kovach – for MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards, honors and numerous public recognitions for his achievements in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. Kovach is a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com, which is ranked as the runaway most read trade media in modern manufactured housing history. This article reflects the LLC’s and/or the writer’s editorial views and may or may not reflect the views of sponsors or supporters.