‘Ever Dream of Being Own Boss, Filling Need in Society?’ Claims of Alleged Multi-Million Dollar Fraudster Chimene Van Gundy-Queen of Mobile Homes-Charged by SEC-Facts, Analysis MHVille Lessons
As millions have learned, including some manufactured housing industry pros, investors, and others, Texan Chimene Van Gundy, the self-proclaimed “Queen of Mobile Homes,” has been charged by the Securities and Exchange Commission (SEC) and others with a multi-year scheme involving hundreds of investors purportedly bilked of millions of dollars in total. Whatever Gundy’s original plan may have been for “Outstanding Real Estate Solutions, Inc.,” the company she founded, if her accusers are correct, it appears to have morphed at some point into a type of confidence or “con” game with elements of a Ponzi scheme, according to investigators cited in this report with MHProNews analysis and commentary. Gundy’s claimed scheme appears to have involved the use of favorable media coverage, a more modest version of what convicted Theranos fraudsters Elizabeth Holmes and Sunny Balwani did to rake in about $804 million dollars, per the Wall Street Journal, before their ploy went belly up. What caused hundreds of investors to trust Gundy with millions of dollars in total? Perhaps as important, are there other Gundy-Theranos type scams operating in MHVille today? This article will go where others in mainstream or manufactured housing trade media have not yet gone in the depth this report does. Because several actual examples of the kind of glowing coverage, ‘awards,’ and praise that Gundy garnered can arguably yield potent insights potentially useful in spotting other purported schemers that are seemingly operating currently in manufactured housing. Just as Gundy was once widely lauded, and has now apparently fallen from her pedestal, so too some in MHVille who are currently praised may find that their day will come to ‘face the music’ of the legal system too.
Note that per the SEC, “Without admitting or denying the SEC’s allegations, [Maria] Tosta has agreed to settle the charges against her, consenting to the entry of a final judgment that orders permanent injunctions, disgorgement and pre-judgement interest totaling $117,917.57, and a civil penalty of $60,000. Tosta’s settlement is subject to court approval.” Tosta is among those charged by the SEC in the scheme involving Gundy and “Outstanding Real Estate Solutions.” While there are many reasons for someone involved in a claimed conspiracy to plead out, one might surmise that Tosta and/or her counsel felt the case against them was strong enough to warrant attempting to make a deal with prosecutors.
With that preface the following segments will be included in this report with analysis and commentary.
In Part I of this report is a flashback announcement on PR Underground proclaiming Chimene Van Gundy’s recognition by “The International Association of Top Professionals” (IAOTP). Insights on the IAOTP are provided for context. MHProNews Notice: perhaps due to the pending SEC charges, some of the links – such as two that go to her websites – go to a blank page. While it is too soon to say, it is possible that the video featuring Van Gundy posted below may at some point be removed from YouTube, and she may in time be removed by social media from their respective websites too.
Part II – features a positive review of Van Gundy from P.O.W.E.R. – Professional Organization of Women of Excellence Recognized.
Part III – From the Way Back Machine. Since some of Van Gundy’s content has been removed online, MHProNews accessed the Way Back Machine to provide a sense of what her own websites said in the way of articles, claims, and content. For example, the Way Back Machine indicates that her site dubbed – https://mobilehomemillions.com/ – was still active in March of 2023.
Part IV – The SEC’s Press Release Concerning their Charges against Chimene Van Gundy, Outstanding Real Estate Solutions, Inc., Michael Trofimoff, Santos Kidd, and Maria Tosta, No. 5:23-cv-700. The SEC Van Gundy case press release is dated 5.31.2023.
Part V – Additional Information with More MHProNews Analysis and Commentary, including insights and potential lessons for MHVille pros beyond the Gundy Case.
Part I
Per their website (typo in the original): “The International Association of Top Professionals (IAOTP) is an international boutique networking organization who handpicks the worlds finest, most prestigious top professionals from different industries. These top professionals are given an opportunity to collaborate, share their ideas, be keynote speakers and to help influence others in their fields.” The top of fold visuals on the IAOTP website conveys an at a glance impression of substance that someone could easily trust. A similar observation may be made about the IAOTP home page video on 7.9.2023, which is posted below. Given that the IAOTP heaped praise on Van Gundy, isn’t it understandable that investor cash may have followed in the wake of their and other such honors?
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Per PR Underground in a post about Chimene Van Gundy dated Nov 17, 2020 was the following media release.
Chimene Van Gundy selected as Empowered Woman of the Year by IAOTP
Chimene Van Gundy, President and Founder at Outstanding Real Estate Solutions and Creator of Mobile Home Millions, was recently selected as an Empowered Woman of the Year by the International Association of Top Professionals (IAOTP). Her exemplary role as a female business professional in a male dominated industry displays her influence, capability and proficiency.
Inclusion with the International Association of Top Professionals (IAOTP) is an honor in itself, only a few women are chosen for this distinction based on their years of experience, professional accomplishments, academic achievements, leadership abilities and contributions to their communities. With innovation and compassion, these women empower others to reach their goals, while creating change for future generations.
The President of IAOTP, Stephanie Cirami, stated “Choosing Chimene for this award was an easy decision for our panel to make. She provides visionary leadership in a male dominated industry. We are thrilled to be honoring her as an Empowered Woman of the Year and we look forward to celebrating her accomplishments at the Annual Awards Gala.”
With more than 5 years of professional experience, Chimene has demonstrated success continually since taking real estate courses and finding a mentor for herself. She is best known as “The Mobile Home Millionaire” and has been called the “Queen of Mobile Homes”, to date she has fixed, flipped and wholesaled more than 600 units, throughout 17 different states. Chimene owns 35 mobile home parks and has taken her business international by rehabbing mobile homes in Ireland, where they are called “Holiday homes.” Chimene is on a mission to help single professionals explore passive income opportunities through investments in mobile homes and to preserve the “last frontier of affordable housing for the U.S.”.
Chimene’s knowledge about the Real Estate Industry is limitless, her areas of expertise include but are not limited to; strategic planning, business development, marketing strategy, consulting, sales, investments, real estate development and transactions, public speaking, training course development, course creations, educational leadership, management and training.
Before embarking on her current career path, Chimene completed her BA in Criminal Justice from the University of Texas at San Antonio in 2006.
Throughout her remarkable career, Chimene has received awards, accolades and has been recognized worldwide for her dedication to her profession. She was featured in a collaborative book called “Wealth for Women” where she is identified as one of the Top 10 Female Real Estate Investors, who can help people get wealthy in Real Estate. Chimene was nominated for the Rich Dad International Hall of Fame within one year of opening her business and chosen to be inducted. She is “Woman of the Year” and “Mentor of the Year” for the P.O.W.E.R organization. which recognizes women’s excellence. The International Association of Top Professionals (IAOTP) will be honoring Chimene for this award at its Annual Awards Gala. This year she was featured in TIP (Top Industry Professional) Magazine and was also chosen as Top Executive of the Year in Real Estate. She is an active member within her community and is a member and donor to Guardians of the Children, Hill County Chapter, a local charity dedicated to educating the public on how to recognize and react to child abuse.
Looking back, Chimene attributes her success to her perseverance and passion for helping people, while understanding their needs. When not working, Chimene enjoys spending time with her husband and their five children, traveling, dancing and riding horses. For the future, she hopes to continue growing her business as a multi-faceted professional and takes great pride in every endeavor she has worked so hard for. She is committed to changing lives and providing housing to as many people as possible.
Watch her video:
For more information on Chimene please visit:
https://www.linkedin.com/in/chimenevangundy/
www.mobilehomemillions.com
ABOUT IAOTP
The International Association of Top Professionals (IAOTP) is an international boutique networking organization who handpicks the world’s finest, most prestigious top professionals from different industries. These top professionals are given an opportunity to collaborate, share their ideas, be keynote speakers and to help influence others in their fields. This organization is not a membership that anyone can join. You have to be asked by the President or be nominated by a distinguished honorary member after a brief interview.
IAOTP’s experts have given thousands of top prestigious professionals around the world, the recognition and credibility that they deserve and have helped in building their branding empires. IAOTP prides itself to be a one of a kind boutique networking organization that hand picks only the best of the best and creates a networking platform that connects and brings these top professionals together.
About IAOTP
The International Association of Top Professionals (IAOTP) is an international boutique networking organization that handpicks the world’s finest, most prestigious top professionals from different industries. These top professionals are given an opportunity to collaborate, share their ideas, be keynote speakers, and to help influence others in their fields. This organization is not a membership that anyone can join. You have to be asked by the President or be nominated by a distinguished honorary member after a brief interview.
IAOTP’s experts have given thousands of top prestigious professionals around the world, the recognition and credibility that they deserve and have helped in building their branding empires. IAOTP prides itself to be a one of a kind boutique networking organization that hand picks only the best of the best and creates a networking platform that connects and brings these top professionals to one place.
For More information on IAOTP please visit: www.iaotp.com
##
Part II
According to their website on this date is the following about P.O.W.E.R., which is one of several publications and platforms that featured Gundy. According to the Better Business Bureau website on 7.9.2023, P.O.W.E.R. has been in business for 16 years, is A+ rated by the BBB, and has been BBB accredited since 2018. So as with IAOTP, a platform that has a significant track record and apparent credibility was part of the ‘crowning’ of the ‘Queen of Mobile Homes.’
P.O.W.E.R. – Professional Organization of Women of Excellence Recognized is an organization, networking website and quarterly print and digital magazine. P.O.W.E.R. features celebrities, icons and everyday hardworking women from different backgrounds, cultures and ethnicities. These women work in various industries and professions on a national level. They want to share their story to empower others, network and gain the recognition they deserve.
By collaborating with like-minded professionals and building positive relationships, there is
nothing we can’t achieve together.
We are women of P.O.W.E.R.”
Some of the women featured on the P.O.W.E.R. website are individuals that may be familiar at a glance to new visitors. Simply put, when Gundy was seemingly ‘plugged’ by P.O.W.E.R., it may well have been persuasive to potential investors in her business. Here is the P.O.W.E.R. article about Gundy. Per Google, it was posted on May 25, 2021. As a stating the obvious word of caution, this article and its contents should not be construed as endorsement of any kind of illegal scheme.
MHProNews note: the above and below are per P.O.W.E.R. about Van Gundy.
Have you ever dreamed of being your own boss while still helping to fill a need in society?
In this episode, I talk to Chimene Van Gundy, The Mobile Home Millionaire” and “Queen of Mobile Homes.” We talk about making changes to become your own boss and recognizing and seizing opportunity. She tells us about how she got into the mobile home market in the U.S. and Ireland to provide affordable housing. Chimene also tells us about fear of failure when starting your own business, balancing her personal and professional life, and what power means to her.
Chimene Van Gundy is a real estate investor and entrepreneur with Outstanding Real Estate Solutions, Inc. and Mobile Home Millions, LLC, who invests in mobile homes and mobile home parks which provide affordable housing to people across the U.S. and in Ireland. A true entrepreneur, Chimene runs and manages five different companies. After completing her B.A. magna cum laude in Criminal Justice from the University of Texas at San Antonio in 2006, she worked multiple jobs in the corporate world and served as the lead paralegal for several different law firms. After being laid off in 2015, Chimene decided that rather than working for another corporation she would be her own boss. She read the novel “Rich Dad Poor Dad” which became a wakeup call for her and changed her life. She bought her first mobile home after attending a tax sale and bidding on a mobile home that all the other investors thumbed their nose at. They literally called mobile homes “trailer trash.” Mobile home deals kept falling into her lap and Chimene realized that no one was in that space. She seized the opportunity to stake her flag in this space as a leader. Chimene serves as a featured writer for Think Realty magazine, where she educates others on the mobile home asset class.
Examples of Content from Chimene Van Gundy’s website, MobileHomeMillions.com, and ChimeneVanGundy.com. Once more for emphasis, this MHProNews fact check, analysis, and commentary is not intended to convey any endorsement or encouragement of illegal schemes. Van Gundy, as with any other person charged with a crime, is deemed innocent until proven guilty in a court of law, or if the accused enters into a plea agreement.
From Van Gundy’s: https://mobilehomemillions.com/2020/09/16/are-manufactured-homes-as-good-as-modular-homes/ per the Way Back Machine – is the following. Note, it is unclear what Gundy meant by “Although sometimes States will adopt the federal code” with respect to modular homes. That appears to be a misstatement, as is her repeated use of the term “mobile home” in some of her comments, if by that she means “manufactured home.” The two are not the same things. To the credit of this post, Gundy tried to make that point clear, that mobile homes were built before June 15, 1976, and HUD Code homes built after that date are manufactured homes or are manufactured housing.
Are manufactured homes as good as modular Homes?
by Chimene Van Gundy | Sep 16, 2020 | Chimene Van Gundy, Mobile Home Millions
Hi, my name is Chimene Van Gundy, bestselling author, and mobile home millionaire. Welcome to mobile home millions. I hope you’re ready to change your life and become the next cash creator.
In today’s video. We’re going to talk about are manufactured homes as good as modular homes. I get this question a lot manufactured homes are actually completely constructed in a factory and then transported to the home site. Once they arrive at their destination, they are indistinguishable from site built homes. They can be moved again because they have wheels and axles. This allows the entire process from start to finish, to be overseeing with consistency and accuracy, which cuts down on many of the delays and disruptions in traditionally built homes. They are built according to federal construction codes from housing and urban development known as HUD.
However, modular homes are also built in factories, but are governed by local and state billing codes. Although sometimes States will adopt the federal code. Modular homes are either built on a permanent chassis or a temporary one. Homes built on a permanent chassis are referred to being “on-frame”. And those built on a temporary one are referred to “off-frame”.
Whether the home is built on on or off-frame will affect how the home is assembled at its destination site. Mobile homes are any manufactured home built prior to June 15th, 1976. They are now obsolete due to the changes with HUD. They have since been replaced by the modern term, manufactured home.
If you find value in this and you would like more information about mobile homes, I would like to invite you to join my free webinar about how to buy and sell mobile homes and the three secrets top real estate investors use to grow profits, whether in a booming or slow economy.
How I Easily Buy & Sell Mobile Homes With Nothing Down… And RECESSION-PROOF MY Business In The Process!)
Why Mobile Homes are little boxes that are easy to overlook… yet massively profitable!
How To Become A Real Estate Expert With NO Previous Real Estate Experience
I’ll Share Exactly How I Acquire 25-30 Mobile Homes Every Month with Nothing Out of Pocket ##
One of Van Gundy’s videos from “three years ago” per YouTube is posted below.
Also per the Way Back Machine of her now inactive website – www.ChimeneVanGundy.com – dated May 27, 2022 are the following “In the Media” items.
Chimene Van Gundy of Mobile Home Millions to be Featured on CUTV News Radio
POWER Magazine’s Winter 2020 Issue Highlights Olivia Newton-John and Other Amazing Women Who Give Back by Helping Others
Manhasset, NY, January 03, 2020 –( PR.com )– POWER Magazine-Professional Organization of Women of Excellence Recognized highlights celebrities, icons and professional hardworking women who give back by helping others in…
POWER Magazine’s Winter 2020 Issue Highlights Chimene Van Gundy
Brendon Burchard Interviews Chimene Van Gundy
It indicates she did podcasts, speaking, videos, writing, coaching, mentoring, and more. One of the tag lines, which used the image below it, was posted as follows.
Mobile Home Millions
Specializing in the mobile home niche, Chimene is on a mission to preserve the “last frontier of affordable housing or the U.S.” She’s living her dream. Are you ready to live yours? Learn how to break free, now!”
Per her MobileHomeMillions.com website, this was part of her pitch.
Over the past 4 years, we have created over $357,000 in cashflow every month for ourselves and our investors. Just so you know, we have wholesaled 150 mobile homes and we have completed 450 mobile home fix and flips in 11 different states.
Best of all, 309 families have been given homes so far (as of December 2018) and that number is growing every single week! It brings joy to our hearts to be able to give a quality home to families who could not afford a house otherwise.
Join us in our mission of helping you become financially free with mobile home investing and helping families around the World become home owners themselves…”
When someone watches the video by IAOTP it indicates that Van Gundy claimed ownership of numbers of “mobile home parks” as well as her business of wholesaling, or buying, fixing and flipping mobile or manufactured homes. More on that below.
According to ThinkRealty, where Van Gundy has several posts, is the following.
Chimene Van Gundy is the mother of five children, and she runs and manages five different companies. She is known as the “The Mobile Home Millionaire” and “Queen of Mobile Homes” because she has fixed, flipped, and wholesaled more than 400 units to date in four years and in 11 states. She currently owns 20 mobile home parks and has taken her business international by rehabbing mobile homes in Ireland, where they are called “Holiday homes.” Chimene is on a mission to preserve the “last frontier of affordable housing for the U.S.” and is currently teaching others how to use these “little boxes that spit out cash” to change their lives and live the life of their dreams through her mobile home millions platform.”
A brief statement following her byline says that the content on ThinkReality says the article is “sponsored.” So, it is apparently a kind of advertorial. An online magazine said: “Chimene is also a major presence on social media. You can find her engaging image everywhere.”
Part IV
Securities and Exchange Commission v. Chimene Van Gundy, Outstanding Real Estate Solutions, Inc., Michael Trofimoff, Santos Kidd, and Maria Tosta, No. 5:23-cv-700 (W.D. Tex. filed May 31, 2023)
Litigation Release No. 25739 / May 31, 2023
SEC Charges Self-Proclaimed ‘Queen of Mobile Homes’ and Three Salespeople with Fraud in Mobile Home Investment Scheme
The Securities and Exchange Commission filed today a complaint in the U.S. District Court for the Western District of Texas charging Outstanding Real Estate Solutions, Inc. (ORES), its Chief Executive Officer and founder Chimene Van Gundy, and salespeople Michael Trofimoff, Santos Kidd, and Maria Tosta for their roles in raising approximately $18.5 million from at least 600 investors through a fraudulent mobile home investment scheme.
According to the SEC’s complaint, between at least June 2018 and November 2021, Van Gundy, the self-proclaimed “Queen of Mobile Homes,” and her company, ORES, raised millions from investors while promising to use the funds to purchase, refurbish, and resell mobile homes. The complaint alleges that Van Gundy and ORES did not actually own hundreds of mobile homes that they claimed ORES purchased with investor funds. Rather than using investor funds as promised, the complaint alleges that Van Gundy and ORES made Ponzi-like payments to existing investors, paid undisclosed sales commissions, and funded Van Gundy’s personal expenses. The complaint also alleges that Van Gundy, Trofimoff, Kidd, and Tosta acted as unregistered brokers, and made false and misleading statements or omissions to investors while offering and selling ORES mobile home investments.
The SEC’s complaint charges ORES and Van Gundy with violating the securities-registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 (Securities Act). The complaint further charges ORES, Van Gundy, Trofimoff, and Kidd with violating the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint also charges Tosta with violating Section 17(a)(3) of the Securities Act, and Van Gundy, Trofimoff, Kidd, and Tosta with violating the broker-registration provisions of Section 15(a) of the Exchange Act. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against all defendants, and an officer-and-director bar against Van Gundy. Without admitting or denying the SEC’s allegations, Tosta has agreed to settle the charges against her, consenting to the entry of a final judgment that orders permanent injunctions, disgorgement and pre-judgement interest totaling $117,917.57, and a civil penalty of $60,000. Tosta’s settlement is subject to court approval.
The SEC’s investigation, which is ongoing, was conducted by Kendrack Lewis and Melvin Warren of the SEC’s Fort Worth Regional Office, under the supervision of Sarah S. Mallett and Eric R. Werner. The SEC’s litigation will be led by Matthew Gulde and supervised by B. David Fraser. The SEC acknowledges the assistance and cooperation of the State of Hawaii Department of Commerce and Consumer Affairs, Securities Enforcement Branch. ##
Per the SEC complaint, which was obtained by MHProNews from the SEC and is found as a download linked here, are the following statements and allegations.
Plaintiff Securities and Exchange Commission (the “SEC” or “Commission”) alleges:
SUMMARY OF THE ACTION
The Commission brings this action to address a multi-year, multi-million dollar securities fraud perpetrated upon hundreds of investors orchestrated by Chimene Van Gundy and Outstanding Real Estate Solutions, Inc., (“ORES”) and carried out with the aid of Michael Trofimoff, Santos Kidd, and Maria Tosta (collectively, “Defendants”).
Between at least June 2018 and November 2021, Van Gundy – the self-proclaimed “Queen of Mobile Homes” – and her company, ORES, raised approximately $18.5 million from at least 600 investors for investments in mobile homes promising guaranteed annual returns of 15% to 20%.
Although Van Gundy and ORES told investors that they would use their funds to purchase, refurbish, and sell mobile homes, they instead misappropriated investor funds by making Ponzi-like payments to existing investors, paying millions of dollars in undisclosed sales commissions, and funding Van Gundy’s personal expenses and lifestyle.
Trofimoff, Kidd, and Tosta were salespeople selected by, paid by, and under the direction of Van Gundy. Van Gundy and ORES paid Trofimoff, Kidd, and Tosta commissions from investor funds, which neither they nor Van Gundy ever disclosed to investors. Trofimoff made additional false and misleading statements and omissions to investors while soliciting investments in ORES, including misleading investors about whether they were beneficiaries of a key-man insurance policy on Van Gundy’s life in recognition of her central role in the endeavor. Further, Tosta and Kidd failed to disclose to new investors material delays in the payment of purported interest proceeds, even though Kidd had explicitly encouraged some investors to take out home-equity loans – with time-sensitive repayment schedules – in order to invest in ORES.
At all relevant times, the ORES securities sold to investors were not registered with the SEC. In addition, Trofimoff, Kidd, and Tosta acted as unregistered brokers, because they: (a) solicited (and advised) investors and effected transactions in securities for the accounts of others, (b) received transaction-based compensation, and (c) engaged in broker activities. Van Gundy acted as an unregistered broker by orchestrating sales efforts on behalf of ORES. Van Gundy recruited the salespeople and facilitated their securities solicitations by providing marketing materials and paying commissions.
Through their actions, Defendants violated, and unless enjoined will continue to violate, the federal securities laws. Specifically, all Defendants violated Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] (as to Defendant Tosta, only Section
17(a)(3) is alleged). Defendants ORES, Van Gundy, Trofimoff, and Kidd also violated Section
10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]. Additionally, Defendants ORES and Van Gundy violated the securities-registration provisions of the Securities Act (Sections 5(a) and 5(c), 15 U.S.C. §§ 77e(a), 77e(c)), and Van Gundy, Trofimoff, Kidd, and Tosta violated the brokerregistration provisions of the Exchange Act (Section 15(a), 15 U.S.C. § 78(o)(a)).
To protect the public from further fraudulent activity, the SEC brings this action against Defendants and seeks: (i) permanent injunctive relief; (ii) disgorgement of ill-gotten gains from Defendants, plus prejudgment interest; and (iii) civil penalties.
DEFENDANTS
Outstanding Real Estate Solutions, Inc., is a Texas corporation formed in 2015 with its principal place of business in New Braunfels, Texas. ORES is a real estate company, claiming to specialize in investments in mobile homes. ORES ceased operations in February 2022. In April 2022, a Texas state court placed ORES into receivership in shareholder litigation arising from the conduct alleged herein. Neither ORES nor its securities are registered with the Commission.
Chimene Van Gundy, age 46, resides in New Braunfels, Texas. Van Gundy, who has marketed herself as the “Queen of Mobile Homes,” is the CEO, president, owner, and founder of ORES. Van Gundy has never been registered with the Commission in any capacity. Van Gundy filed a petition for relief under Chapter 7 of the Bankruptcy Code in April 2022, days after a Texas state court placed ORES into receivership. On September 9, 2022, the Bankruptcy Court dismissed Van Gundy’s Chapter 7 case at the request of the Trustee because of Van Gundy’s failure to comply with debtor’s obligations under the Bankruptcy Code.
Michael Trofimoff, age 61, resides in Dillard, Georgia. Trofimoff is the owner and founder of Viridis Holdings LLC, doing business as Georgia Mobile Home Investing (“GMHI”). Trofimoff has never been registered with the Commission in any capacity.
Santos Kidd, age 54, resides in Honolulu, Hawaii. Kidd is the CEO of Kina’ole Financial Services, LLC, an entity that claims to help homeowners achieve their financial goals through debt elimination and wealth acceleration. Neither Kidd nor Kina’ole Financial Services has ever been registered with the Commission.
Maria Tosta, age 48, is a former resident of New Braunfels, Texas and Dallas, Texas. Tosta is the former Vice President of Sales for ORES and was responsible for bringing in investors. Tosta has never been registered with the Commission in any capacity. …##
The balance of the 23-page complaint can be found at the link below.
Part V – Additional Information with More MHProNews Analysis and Commentary
Parts I, II, and III indicate just some of the various ways that Van Gundy marketed herself and her pitch to investors, ‘students’ and others. Social media, other publications, public speaking, press releases, and the like were among their various outreaches. The screen capture below reflects some of the media coverage and social media plugs, including an image after her legal woes emerged. It would be an interesting question to ask her – to what degree, if any, was Van Gundy ‘inspired’ by Frank Rolfe, Dave Reynolds, and their pitch? More on them, and a reminder of another important SEC case involving manufactured housing further below.
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The collage of screen captures above are per the sources as shown. Objectively, given significant examples of media, marketing, awards, and recognition, it is not difficult to imagine how investors – sophisticated or not – may find Van Gundy’s pitch to be credible. Once more for emphasis and clarity, huge corporations literally ‘bought into’ the Theranos scam. Other high-profile figures were involved in the Enron, Madoff, and WorldCom scandals, to name but a few. If Van Gundy pleads or loses in court, she would hardly be the first or the last in or beyond our industry to get entangled in illegal behavior that cost investors’ money. In Van Gundy’s case, a fair question is – did her business begin legitimately and then lose its direction along the way?
Keep in mind the recent MHProNews report with analysis on Investopedia’s 2023 fresh warning about the illusory truth effect. ICYMI, or need a refresher to grasp how this might relate to the Van Gundy case, or others that may be operating in the manufactured housing industry, see that article below.
How many pre 2018 would have believed that Cavco’s former corporate leader, Joseph “Joe” Stegmayer, would have been hit with charges by the SEC? How many more possible civil and /or criminal cases exist in manufactured housing today?
Per the SEC complaint against Van Gundy, “Defendants used various material misrepresentations and omissions to persuade investors to invest with ORES and/or GMHI.” (Emphasis added). That phrase “material misrepresentations and omissions” may be significant to others in MHVille. Note to newcomers and a reminder to regular readers. “MHVille” is an affectionate phrase for the arguably artificially smaller manufactured housing industry.
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MHProNews has from time to time raised the legal point that “material” misrepresentations and omissions appear to be occurring in several organizations involved in manufactured housing. Several of those businesses happen to be members of the Manufactured Housing Institute (MHI). That’s not to imply that every MHI member is problematic. But if the proverbial shoe – based on known facts, evidence, and applied common sense – fits, then those people and entities ought to be brought to justice in a manner similar to what all who are credibly accused of criminal activity or violations of the law should face.
It has not been so long since the SEC’s case against Cavco Industries, Joseph “Joe” Stegmayer, et al, was settled. Stegmayer had his own positive aura, different than Van Gundy, but certainly positive. It stayed positive right up to the time that he was hit by the SEC with allegations that was later followed by a detailed case which apparently had the evidence to back it up. ICYMI, or need a refresher, the argument can be made that the SEC’s pleadings against Stegmayer and Cavco may shed light on other schemes still at work in manufactured housing. Those purported schemes are part of the troubled history of this once far greater industry. The SEC case reads something like a fictional story of industrial espionage, but it was apparently not fictional at all. The article below has the SEC pleadings, it is eye opening reading.
One might think that those who gave Van Gundy awards, positive media attention, interviews, and recognition are somewhat uncomfortable pending the outcome of her legal issues. But in parts of MHVille, even as the allegations against Stegmayer and Cavco where known, people like George Allen gave him a public forum. Note, regarding Allen, see the detailed postscript of the fresh report linked here.
MHProNews asked Van Gundy the following: “To what extent, if any, did people already in manufactured housing influence your marketing? For example, were you aware of Frank Rolfe and Dave Reynolds before you began Mobile Home Millions and related? Did any of their marketing influence or inspire yours?” Van Gundy was encouraged to speak to her counsel before offering a reply. A follow up may be warranted, based on her possible remarks.
Recall that MHProNews has periodically noted that various legal sources, governmental as well as law firms, have weighed in on the significance of the term “material” representations, misrepresentations, and omissions when it comes to investing. While there are several evidence-based legal theories that could be advanced against certain firms operating in manufactured housing, the notion of material misrepresentations and omissions are but among the possibilities.
For instance. Frank Rolfe and Dave Reynolds have arguably bragged about monopolistic practices that include, but are not necessarily limited to, the Warren Buffett preached moat methods. Monopolistic behavior can also violate federal laws. Where are the federal officials on those concerns, or others that are examples of potentially corrupt and illegal behavior that has hobbled manufactured housing industry performance for most of the 21st century?
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If “Frank and Dave” have thus far have seemingly skated past legal concerns, it should not be thought that there is a lack of smoke rising from their behavior. Look at the illusory truth effect, look at the reports with analysis about Frank and Dave, and then look at others operating in manufactured housing.
There is an evidence-based case to be made that Rolfe and Reynolds, perhaps in concert with others involved at MHI, are deliberately undermining the manufactured home communities, retail, and production sectors in specific ways that result in industry underperformance. That thesis has been advanced by third party researchers looking into the industry who have asked, why is manufactured housing operating at such a low and troubled level? Yes, these matters may be different that the allegations against Van Gundy. But the other instances of seemingly corrupt and possibly illegal activity which may be harming far more people are there to be explored and examined to see how the evidence stacks up.
L. A. “Tony” Kovach, this writer for MHProNews, was a popular speaker at industry events. But MHI apparently began to target our publication, seemingly because MHProNews was asking too many questions about why certain obvious issues were not being properly addressed. MHI has kept so-called predatory practicing members. But they refunded one year of MHProNews’ parent company dues and parted ways with our organization where there are no credible allegations of possible illegalities and wrongdoing. Following MHI’s action, MHProNews has been essentially barred from industry events. Isn’t it apparent that MHI is to some degree in on the scheme to manipulate the market and allow predatory brands to practice without obvious repercussions?
Earlier, the question was asked. If federal, and other possible charges, against Van Gundy prove to be true, did her business start out legitimately and then go astray? Similarly, some might raise the parallel question: didn’t MHI start out legitimately, and then apparently go astray in the 21st century? Look at the glow around Van Gundy, detailed above. Is it so hard to imagine that the ‘aura’ around MHI is faux and based in part of the illusory truth effect? Aren’t operations and bloggers like MHInsider, ManufacturedHomes.com, and George Allen – all MHI members – downplaying, ignoring, or obscuring MHI’s corporate and staff leadership’s roles in a purportedly corrupt and possibly illegal scheme to consolidate manufactured housing into ever fewer hands that are routinely MHI members?
There is evidence that a conspiracy to consolidate the manufactured housing industry is hiding in plain sight. The kind of monopolization method could be described as oligopoly.
There is an evidence-based case to be made that an ongoing conspiracy has been underway in manufactured housing to consolidate the industry into a limited number of ‘insider’ brands that dates back at least 14 years.
Given repeated opportunities to respond to the allegations, MHI’s corporate and staff leadership have instead kept silent. They keep spinning what may prove to be the Illusory Truth Effect, which isn’t the truth at all. Rather, it is manipulative gaslighting.
Gundy and her counsel know if they are ‘guilty’ or not of the charges against her and her associates, and if so, to what degree. But her case begs potentially related questions. When arguably far bigger scams are apparently ongoing in MHVille – and at least so far – are largely unpunished, is there an unequal application of law at work?
See the related reports to learn more. MHProNews plans to monitor the situation and report as deemed warranted. Should Gundy and/or her attorney respond to our inquiry on the record, MHProNews may well do a follow up. Stay tuned. ###
MHProNews PS: if an accused party seems to be getting a raw deal in media, and the evidence supports that, MHProNews aims to provide balanced reporting that can counterweigh what may be biased or garden-variety ignorance in reporting by others. A recent example of that is linked below.
PSS: That noted, look again at MHI’s use of awards. Look at the praise Van Gundy garnered. Ask yourself, or discuss with your trusted peers, isn’t there an apparent pattern of creating an attempted “illusion” of “excellence” from firms that even a basic look at evidence to the contrary ought to raise red flags in the case of MHI and some of their ‘honorees?’ More needs to be known about Van Gundy’s matter. And much more needs to be done by public officials with respect to specific examples of apparently corrupt behavior operating openly in manufactured housing, due perhaps in part to the so-called Illusory Truth Effect.
https://manufacturedhousingassociationregulatoryreform.org/mharr-white-paper-exposes-public-relations-exploitation-notwithstanding-continuing-industry-failures/ Trade media can and should be a ‘cheer leader’ when it is appropriate to do so. But authentic trade media also holds the powers that be to account. Who says? The American Press Institute. Click here to subscribe to the most complete and obviously most read manufactured housing industry news in seconds. Enter your desired email address, press submit, confirm in your inbox. Then You’re All Set for x2 weekly emailed news updates! To report a news tip – either ON or OFF the record – click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP or COMMENTS in the subject line.
Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.
Tony earned a journalism scholarship and earned numerous awards in history and 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. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
