‘Securities Fraud’ ‘Investors Alert’ Pomerantz Law Files Suit Citing NINGI Research Claim Arbor Hid ‘Toxic Portfolio of Mobile Home’ Linked Loans-Pleadings; Cavco Flashback; Facts and Analysis

SecuritiesFraudInvestorsAlertPomerantzLawFilesSuitCitingNINGI_ResearchClaimArborHidToxicPortfolioOfMobileHomeLinkedLoansPleadingsCavcoFlashbackFactsAnalysisMHProNews

A visitor to the home page of their website can see this: “Pomerantz’s historic $3 billion settlement with Brazil’s state-run oil company Petrobras represents the fifth-largest class action settlement ever achieved in the United States, and the largest settlement ever in a class action involving a foreign issuer.” “Pomerantz, a global thought leader, continues to develop novel legal strategies and secure historic rulings that expand the rights of global investors, wherever they are situated.” Or “Pomerantz is the oldest law firm in the world dedicated to representing the rights of defrauded investors.” There are more like that on their own website, of course, but that is sufficient to tee up the significance of their class action suit on behalf of investors involving allegations that Arbor Realty Trust, Inc. (“Arbor”), citing research by NINGI Research (“NINGI”), which clamed that Arbor “has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holdings companies for more than a decade.” Pomerantz’s media release is in Part I of this report with analysis. Part II will include the complaint (filed case pleadings) and its possible significance of certain segments of the manufactured housing industry. The Arbor suit filed by Pomerantz is Case Number 1:24-cv-05347 filed in the United States District Court Eastern District Court of New York.

As the case cited above suggested, the Pomerantz firm is international in scope. They tout offices located in:

NEW YORK • CHICAGO • LOS ANGELES • LONDON • PARIS • TEL AVIV

Pomerantz was previously featured on MHProNews in a different case.

 

Manufactured, Conventional Home Lender Home Point Capital and CoStar Group Face Class Action Suits from Pomerantz Law
https://www.manufacturedhomepronews.com/masthead/manufactured-conventional-home-lender-home-point-capital-and-costar-group-face-class-action-suits-from-pomerantz-law/

 

Pomerantz was also involved in the Cavco Industries (CVCO) case, of which they said at the time (July 18, 2022) in a media release that their “investigation concerns whether Cavco and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”

On November 8, 2018, Cavco revealed in a U.S. Securities and Exchange Commission (“SEC”) filing that it had “received a subpoena from the SEC’s Division of Enforcement requesting certain documents relating to, among other items, trading in the stock of another public company.”

On this news, Cavco’s stock price fell $49.48 per share, or over 23%, to close at $165.20 per share on November 9, 2018.

Then, on February 4, 2019, Cavco revealed that it had received requests for additional documents. Cavco further disclosed spending, and expecting to spend, millions of dollars on legal and insurance expenses in relation to the SEC’s subpoenas and the Company’s independent investigation into the matter.

On this news, Cavco’s stock price fell $26.92 per share, or 16.7%, to close at $134.37 per share on February 5, 2019.

Finally, on September 2, 2021, the SEC filed a complaint against Cavco, former Chief Executive Officer Joseph Stegmayer, and former Chief Financial Officer and Chief Compliance Officer Daniel Urness. The SEC complaint alleged that Stegmayer and Urness caused Cavco to purchase shares of publicly traded companies on material non-public information.

On this news, Cavco’s stock price fell $6.59 per share, or 2.5%, to close at $252.48 per share on September 3, 2021.

With that backdrop, their press release may carry more meaning to manufactured home industry pros.

 

Part I – Pomerantz Files Suit vs. Arbor on Claimed Fraud Involving Loans on Manufactured Homes and “Mobile Homes”

SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Arbor Realty Trust, Inc. – ABR

Wednesday, 28 August 2024 02:00 PM

NEW YORK, NY / ACCESSWIRE / August 28, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Arbor Realty Trust, Inc. (“Arbor” or the “Company”) (NYSE:ABR). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

The class action concerns whether Arbor and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

You have until September 30, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Arbor securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.

[Click here for information about joining the class action]

On March 14, 2023, NINGI Research (“NINGI”) published a report on Arbor, alleging, among other things, that Arbor “has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holdings companies for more than a decade.”

Following publication of the NINGI report, Arbor’s stock price fell $1.46 per share, or 11.24%, over the following two trading sessions, to close at $11.53 per share on March 15, 2023.

Then, on December 5, 2023, Viceroy published an in-depth study of Arbor’s properties in Jacksonville, Florida. Citing their findings, Viceroy concluded that in an “industry plagued with delusion and bad decisions, [Arbor] stands out as the worst of the worst. Viceroy’s dive into [Arbor’s] CLOs suggest its entire loan book is distressed and underlying collateral is vastly overstated.”

Following publication of the Viceroy report, Arbor’s stock price fell $0.71 per share, or 5.12%, over the following two trading sessions, to close at $13.15 per share on December 6, 2023.

Finally, on July 12, 2024, Bloomberg reported that Arbor was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York.” According to Bloomberg, “[t]he investigators are inquiring about lending practices and the company’s claims about the performance of their loan book.”

On this news, Arbor’s stock price fell $2.64 per share, or 17%, to close at $12.89 per share on July 12, 2024.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

SOURCE: Pomerantz LLP ##

 

Part II – Additional Information with More MHProNews Analysis and Commentary

1) Pomerantz provided the pleadings to MHProNews which said in part: “From the Plaintiff believes that further substantial evidentiary support will exist for the allegations set forth herein after a reasonable opportunity for discovery. Most of the facts supporting the allegations contained herein are known only to the defendants or are exclusively within their control.” As noted, Case 1:24-cv-05347 was filed in the United States District Court Eastern District Court of New York. The complaint was filed on behalf of LOIS MARTIN, Individually and on Behalf of
All Others Similarly Situated, as plaintiffs vs. ARBOR REALTY TRUST, INC., IVAN KAUFMAN, and PAUL ELENIO, Defendants.

2) The complaint claims: “materially misleading information” was provided by defendant Arbor to investors “Throughout the Class Period” of May 7, 2021 to July 11, 2024. “Investors discovered that these statements were false and/or materially misleading over the course of several corrective disclosures.”

3) On December 5, 2023, Viceroy published an in-depth study of ABR’s Jacksonville, FL properties (the “Viceroy Report”). Based on their findings, Viceroy declared that in an “industry plagued with delusion and bad decisions, ABR stands out as the worst of the worst. Viceroy’s dive into ABR’s CLOs suggest its entire loan book is distressed and underlying collateral is vastly overstated.”

4) On July 12, 2024, several months later, investor concerns stemming from the NINGI Report and Viceroy Report intensified when Bloomberg reported that ABR was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York.”

A prior report that included the Arbor controversy is linked below.

 

ScamsInManufacturedHousingMHProNewsIllustration
https://www.manufacturedhomepronews.com/toxic-mobile-home-loans-gibbs-law-group-fbi-probing-arbor-realtys-false-misleading-claims-on-manufactured-home-loans-chimene-van-gundy-queen-of-mobile-homes-sec-fraud-case/

 

5) MHProNews has previously published an SEC paper on the topic of assessing materiality. In that SEC paper, Paul Munter, then Acting Chief Accountant, said the following.

Under our federal securities laws, public companies are required to disclose certain financial and other information to investors. The basic premise of this disclosure-based regulatory regime is that if investors have timely, accurate, and complete financial and other information, they can make informed, rational investment decisions.

And (bold added).

The determination of whether an error is material is an objective assessment focused on whether there is a substantial likelihood it is important to the reasonable investor.[3]

Also note this from the SEC paper on materiality by Munter, again, bold is added by MHProNews.

The Supreme Court has held that a fact is material if there is:
“a substantial likelihood that the … fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available.”[4]

6) In communications with various attorneys, and based upon our own independent research, MHProNews reported in December 2022 that there are reasons to believe that the manufactured housing industry has become a target rich environment for litigation. Our platform, along with our MHLivingNews sister site, have from early on reported on legal developments and litigation, but more to the point being made here, had indicated apparent evidence of problematic behaviors that pointed to significant legal liability on the part of multiple firms involved in the manufactured home industry. More on that shortly, but let’s next observe that not long after that 12.2022 report and analysis, the first of several class action lawsuits were filed on behalf of residents living in communities that were often owned by members of the Manufactured Housing Institute (MHI), MHI linked state associations, and/or by firms that are publicly traded or based upon private equity.  One of those reports is linked below.

 

TwoMoreClassActionAntitrustSuitsHitHighProfileManufacturedHousingInstituteMembersAndMHIstateAffiliateMembersTowsendInCaseNo1.23-cv-16462andMunsPleadingsAnalysisMHProNews
https://www.manufacturedhomepronews.com/two-more-class-action-antitrust-suits-hit-high-profile-manufactured-housing-institute-members-and-mhi-state-affiliate-members-towsend-in-case-no-123-cv-16462-and-muns-pleadings-and-analysis/

 

7) Since then, defendants have naturally denied the allegations. But it is worth noting that the Department of Justice (DOJ) recently filed a suit against RealPage, which arguably has some similarities to the actions linked above that name Equity LifeStyle Properties (ELS) owned Datacomp.  Both ELS and Datacomp, in the cases above, are named as defendants in those cases.

 

MonopolyJusticeDeptSuesRealPageForPricingSchemeHarmingMillionsOfRentersCouldDOJcomeAfterDatacompAndManufacturedHousingOrganizationsForSimilarClaimPlusMHMarketsMHProNews
https://www.manufacturedhomepronews.com/monopoly-justice-dept-sues-realpage-for-pricing-scheme-harming-millions-of-renters-could-doj-come-after-datacomp-and-manufactured-housing-organizations-for-similar-claim-plus/

 

8) Citing the U.S. Supreme Court, the SEC paper on materiality by Munter said in part: “a substantial likelihood that the … fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available.”

There is an argument to be made that the “‘total mix’ of information made available” in manufactured housing is demonstrably misleading, deceptive, flawed and thus “material” to investors and other stakeholders. That “total mix” of information includes sources such as:

  • a) The Manufactured Housing Institute (MHI), which in a recent matter witnessed a moderately prominent MHI member firm point the media to MHI CEO Lesli Gooch for comment, and Gooch in fact responded to that news outlet.  It is as if Hometown America had successfully turned Gooch into their corporate mouthpiece.

 

HometownAmericaToMedia‘AskManufacturedHousingInstituteEdBartokRentDiscriminationCaseConcernsHometownAmericaDesireToRaiseRentsAsIitSeesFitDespiteLawPlusMHMarketsMHProNews
https://www.manufacturedhomepronews.com/hometown-america-to-media-ask-manufactured-housing-institute-ed-bartok-rent-discrimination-case-concerns-hometown-america-desire-to-raise-rents-as-it-sees-fit-des/
  • ELS owned MHInsider. When NINGI Research (“NINGI”) said that Arbor used a “complex web of real and fake holdings companies for more than a decade” as part of their claim that “has been hiding a toxic real estate portfolio of mobile homes.” There is an analogy that could be made that a “complex web” of misinformation, and what the Capital Research Center  often calls “deception and misdirection” has long been at work in manufactured housing.

 

PalteringDeceptionMisdirectionMHI.ELS-MHInsiderStunningReportOnHUDSecretaryMarciaFudgeResignationVs.MHARR_FudgeMemoFactsManufacturedHousingIndustryExpertAnalysisPlusMHMarketsMHProNews
https://www.manufacturedhomepronews.com/paltering-mhi-and-els-linked-mhinsider-stunning-report-on-hud-secretary-marcia-fudge-resignation-vs-mharr-fudge-memo-facts-w-manufactured-housing-industry-expert-analysis-plus-mhma/

 

9) Cavco and Pomerantz were cited in the preface. There are statements made by Cavco leaders that if carefully examined should raise serious concerns for investors and others.  Let’s consider a hypothetical with materiality and fiduciary care in mind to set the table for the liability issue.

a) Imagine a reasonable investor decided in late 2023 to look at a Cavco Industries Investor Relations (IR) presentation. Presuming a ‘normal’ company that is seeking to tell the truth, he sees the following (sans the callout boxes and insights added by MHProNews).

 

CavcoIndustriesNov2023pg4AffordableHousingCrisisSnapshotManufacturedHousingMHProNewsMHProNewsFactCheckAnalysis
There is an evidence-based case to be made that Cavco has ironically helped provide the ammo for antitrust pros to go after their firm and several others associated with the Manufactured Housing Institute. Their reasons to invest are also apparent proof of their own failures to successfully tap into the very opportunities that they illustrated with these factually supported claims. The base image above is from the Cavco Industries (CVCO) November 2023 Investor Relations ‘pitch deck’ or IR presentation. MHProNews periodically uses a satirical logo based on the MHI logo that proclaims: “Proud Member of Machiavellian Housing Institute” (i.e.: Manufactured Housing Institute or MHI) with its modified MHI tag line: “The National Association Serving Consolidators of the Manufactured Housing Industry.” Cavco Industries is indeed a “proud” MHI member. Call out boxes and arrows are added by MHProNews as part of this fact check and analysis. See detailed report and context here: https://www.manufacturedhomepronews.com/q3-2024-cavco-industries-inc-earnings-call-illustrates-benjamin-franklin-gates-quote-if-theres-something-wrong-those-who-have-the-ability-to-take-action-have-the-responsibility-to-take-action/

 

b) A “reasonable” person might spend some time online and find mostly positive things about Cavco. If that reasonable person goes to the Manufactured Housing Institute (MHI) website, they may find that Boor is now chairman of the board on what MHI calls their “executive committee.” They may see on the MHI website that Cavco played an outsized role in the 2024 Innovative Housing Showcase.

c) Let’s presume that reasonable person bought some Cavco stock themselves. But new investor also shared their research with someone involved in investment decisions for a sizable organization. That organization looked at the same things the “reasonable” person did, but they take matters a step further. They go to Equity LifeStyle Properties (ELS) owned MHInsider. They presume that MHInsider, is a ‘normal’ trade publication. They further presume that MHI is a ‘normal’ trade organization. They presume that Cavco is a ‘normally’ operated business, where the firm is trying to excel and maximize shareholder value in a legal and ethical fashion.

d) If the reasonable person and that reasonable investment-seeking organization then invest a sizable chunk of their respective portfolios in Cavco, it may be thought that they had done ‘reasonable’ due diligence. And there is an argument to be made that those are part of the reason why MHI, MHInsider, or for that matter ManufacturedHomes.com, operate as they do as de facto actors on behalf of MHI ‘insiders.’ If a reasonable person seeking an investment finds the following from MHI, so the analysis by MHProNews is not found on it, they may glance at that and think how they are impressed. They go ahead and invest.

 

Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article.

 

e) Without going to the Manufactured Housing Association for Regulatory Reform (MHARR) website, or without going to the MHProNews or MHLivingNews websites, it is entirely possible for a reasonable person to get an impression that is wildly mistaken about the manufactured housing industry on several levels. For example. MHI has no apparent production trends graphic found on their website, about a year after their website was revamped.

 

ProductionTrendsGraphicManufacturedHousingInstituteWebsiteSearchMHProNews8.30.2024

 

f) Here below is what an ‘honest’ – as opposed to misleading or deceptive – production graphic would look like.

 

HUDCodeManufacturedHomeProduction1995-2023PlusJan2024ToMay2024ProductionSAAR-MHARR-ManufacturedHomeProNews
https://www.manufacturedhomepronews.com/manufactured-housing-production-up-may-2024-per-july-manufactured-housing-association-report-but-data-reveals-cracks-brief-history-of-trailer-houses-mobile-homes-manufactured-homes-mhmarkets/

 

g) That one added piece of information – a production trends graphic – reveals a vastly different impression than what someone may find from MHI and MHInsider. Yet that is but one of numerous possible examples of insights found here, or MHLivingNews that is not readily found on the public side of MHI or MHInsider. Meaning, there is an argument to be made that illusions are being created, which could mislead consumers, public officials, or ‘reasonable’ investors.

h) One apparent example of MHInsider paltering or using a ‘true lie‘ to create a mistaken impression about manufactured housing industry production trends. Notice that MHInsider credits MHI. Compare seemingly increasing production trends graphic below to the more graphically, statistically, and intellectually honest presentation in “f” above. The impression of the two is significantly different. Dare one say, it is materially different?

 

ManufacturedHousingIndustryProductionTrendsPerManufacturedHousingInstituteAndMHInsiderMHProNewsFactCheck8.30.2024
Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article.

 

i) Nor is this concern entirely hypothetical. As MHProNews has previously reported, publicly traded Flagship Communities, which has as its co-founder a former MHI chairman – Nathan Smith – features in their investor pitchbook the screen capture of an article from what source? Is it MHProNews or MHLivingNews, which has the demonstrably larger audience and has critiqued Flagship and Smith on several occasions? No, rather they selected MHInsider, which seems to specialize in fawning over MHI members and acts as if there is no other national trade association (MHARR), or no serious critics of the industry from within. The way MHInsider handled the Cavco litigation, for instance, was night and day different.

 

Elements from Flagship Communities REIT LOGO Photos ESG Report for 2022 published in 2023 Manufactured Home Pro News
https://www.manufacturedhomepronews.com/flagship-communities-reit-to-acquire-3-manufactured-home-communities-for-21-million-manufactured-housing-institute-firm-touts-esg-score-as-states-ramp-anti-esg-actions-plus-mhmarkets-update/

 

j) To the point of “illusions” vs. an accurate presentation of information, this is from the August 2024 Cavco IR pitch. Call our boxes and arrows are added by MHProNews to the base Cavco-produced image.

 

CavcoIndustriesAug2024InvestorRelationsProductionTrendsGraphicScreenCaptureCitesMHI-MHProNewsFactCheckAnalysis8.30.2024
Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article.
AnalystGregPalmtoCavcoWhy is Manufactured HomeIndustry ProductionSo WeakParadox DevelopsLower Expectations MoreSinglesIn Q1-2023CavcoIndustriesQrtlyFactsTrendsMHVilleAnalysisMHProNews
https://www.manufacturedhomepronews.com/analyst-to-cavco-why-is-manufactured-home-industry-production-so-weak-paradox-develops-lower-expectations-more-singles-in-q1-2023-cavco-industrie/

 

10) To frame the health of the industry even more starkly, one can look back to the early 1970s.  The fall from the glory days of production is stark.

 

SkylineChampionMobileHomeIndustryIntoManufacturedHousingIndustryProductionChartGraphicFrom1960sto2022Nov2023ManufacturedHomeProNewsMHProNews
The research by senior economist at the Minneapolis Federal Reserve James “Jim” Schmitz Jr., his colleagues, the legal research by Samuel “Sam” Strommen at Knudson Law, and a grasp of what Warren Buffett, Kevin Clayton, and Tom Hodges have called “the Moat” – among others insights – are useful in understanding the decline of HUD Code manufactured housing. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts. See the Rise and Fall of HUD Code Manufactured Housing. https://www.manufacturedhomelivingnews.com/rise-and-fall-of-hud-code-manufactured-housing-1995-2023-story-of-the-u-s-affordable-housing-crisis-behind-the-facts/ and the lessons learned from the California ADU phenomenal growth. https://www.manufacturedhomelivingnews.com/is-manufactured-home-production-keeping-pace-with-u-s-population-what-california-adu-preemption-and-higher-production-signals-manufactured-housing-potential-to-solve-affordable-housing-crisis/

 

11) That issues like the one below are apparently contradicted by Cavco’s own IR pitch is another concern.

From viewing William “Bill” Boor address Congress on CSPAN July 14, 2023. Or if some investor(s) read Boor’s transcript of remarks made on behalf of the Manufactured Housing Institute (MHI).

 

WilliamBillBoorCEOCavcoIndustriesForManufacturedHousingInstituteQuotableQuoteManufacturedHousingIsAtCriticalCrossroadsDueToRegulatoryBarriersAndMarketForcesIn2023MHProNews
William “Bill” Boor, Cavco Industries (CVCO) CEO told Congress the industry is at a critical crossroads due to regulatory barriers and market forces. Why are the causes and possible cures to that ‘crossroads’ underreported and often misunderstood? Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts. See the transcript on MHLivingNews at this link here: https://www.manufacturedhomelivingnews.com/double-digit-2023-manufactured-home-production-slide-continues-per-national-manufactured-housing-association-more-new-manufactured-home-living-facts/

 

But consider the contrast between the above and from Cavco’s IR pitchbook.

 

CavcoIndustriesCVCO.InvestorRelationsPresentationPitchNov20232023-11-30_06-43-50OnZoningManufacturedHousingProNewsMHProNewsFactCheckAnalysis
Base image is from the Cavco Industries November 2023 Investor Relations ‘pitch deck’ or presentation. Satirical “Proud Member of Machiavellian Housing Institute” (i.e.: Manufactured Housing Institute or MHI) with its modified MHI tag line: “The National Association Serving Consolidators of the Manufactured Housing Industry” was added by MHProNews, but Cavco Industries is a “proud” MHI member. Call out boxes and arrows are added by MHProNews as part of this fact check and analysis.
SamuelStrommenQuoteMonopolisticHousingInstituteLogoBig3ClaytonHomesSkylineChampionCavcoIndustriesSunELS-ImpactHavenparkRHPFlagshipMHLivingNewsEIN
Strommen Manufactured Housing Institute remark: MHI is a mouthpiece of the Big 3 – in apparent Restraint of Trade and Should Not Get NOERR protection. https://www.manufacturedhomepronews.com/masthead/true-tale-of-four-attorneys-research-into-manufactured-housing-what-they-reveal-about-why-manufactured-homes-are-underperforming-during-an-affordable-housing-crisis-facts-and-analysis/

12) To begin to dot the i’s, cross the t’s and come to a conclusion, consider this Q&A with left-leaning Bing’s AI powered Copilot.

Copilot, is deliberate paltering an acceptable behavior by a publicly traded firm in investor relations presentations? Cite sources.

Sent by Copilot:

BingCopilotAI-Screen1.3.2024MHLivingNewsDeliberate paltering, which involves making truthful statements to mislead others, is generally considered unethical and unacceptable in investor relations presentations by publicly traded firms. This behavior can damage a company’s reputation, erode investor trust, and potentially lead to legal consequences.

Investor relations presentations are expected to be transparent, accurate, and honest. Best practices emphasize the importance of providing clear and truthful information to maintain credibility and foster trust with investors12Misleading investors, even through technically truthful statements, can undermine these principles and harm the company’s long-term relationship with its stakeholders2.

Would you like to know more about best practices for investor relations presentations?

 

13) Then consider this MHProNews Q&A with Copilot.

MHProNews has done some reports that use Cavco Industries (CVCO) IR pitch and compared it to remarks made by William “Bill” Boor, other that are Manufactured Housing Institute members, or others in the manufactured home industry that seems to indicate that paltering or materially incorrect information has been provided by that firm. Can you provide some analysis and insight on that notion? What are the possible risks from such questionable communications to investors and others? Link results.

Sent by Copilot:

BingCopilotAI-Screen1.3.2024MHLivingNewsThe reports by MHProNews suggesting that Cavco Industries (CVCO) may have engaged in paltering or provided materially incorrect information in their investor relations (IR) presentations raise significant concerns. Here are some key points and potential risks associated with such behavior:

Analysis and Insight

  1. Paltering and Misleading Information:
  2. Comparative Analysis:

Potential Risks

  1. Legal and Regulatory Risks:
  2. Reputational Damage:
  3. Financial Impact:

Conclusion

The potential risks from questionable communications in investor relations are substantial and multifaceted. Ensuring transparency, accuracy, and consistency in all communications is crucial for maintaining investor trust and avoiding legal and reputational pitfalls.

Would you like more detailed information on any specific aspect of this issue?

1Bill Boor Chief Executive Officer Cavco Industries, Inc. Vice-Chairman Manufactured Housing Institute 2Cavco Announces the Completion of the Acquisition of The Commodore

Learn more
Note for emphasis how Copilot began its reply, with bold for added emphasis: “The reports by MHProNews suggesting that Cavco Industries (CVCO) may have engaged in paltering or provided materially incorrect information in their investor relations (IR) presentations raise significant concerns. “
14)  The next Q&A is even more eye opening. Keep in mind that Copilot linked Bing is owned by Microsoft. Microsoft co-founder Bill Gates is a longtime ally of Warren Buffett, chairman of Berkshire Hathaway which owns Clayton Homes, 21st Mortgage Corp, Vanderbilt Mortgage and Finance (VMF) and Shaw, each of which are members of MHI.
Bill Boor is now chairman of the Manufactured Housing Institute. He is the CEO of Cavco Industries. The Institute has endorsed MHVillage which is the parent company of MHInsider. MHVillage and Datacomp are owned by Equity LifeStyle Properties (ELS). ELS has a board position on the Manufactured Housing Institute’s potent “executive committee.” Many if not most pages of the MHInsider website fail to have any apparent disclosure that they are owned by ELS. The Institute has curiously failed to press through litigation the “enhanced preemption” provision of the Manufactured Housing Improvement Act of 2000 while also teaming up with the conventional housing trade group competitors of manufactured housing. While the Manufactured Housing Association for Regulatory Reform (MHARR) website has made repeated points about the chief bottlenecks to manufactured housing industry growth and has said that legal action is needed to correct these over decade old hurdles, there is no known evidence that the Institute has or even threatened to litigate these issues. MHProNews has done multiple reports that have purported documented evidence of misleading, incomplete, deceptive, paltering and posturing by Manufactured Housing Institute linked firms, that include, but are not limited to Cavco Industries, ELS, MHVillage, Datacomp, Clayton Homes, Sun Communities, and others. It has been alleged that these “insider” firms involved at the Institute have postured efforts for growth but have failed to do the commonsense steps that would in fact fuel growth. Is all of that broadly accurate? It has also been alleged that the upshot of this behavior is industry consolidation in the 21st century which may violate federal antitrust laws through an oligopoly style method. Provide an analysis of those concerns and link results.
Sent by Copilot:

BingCopilotAI-Screen1.3.2024MHLivingNewsYour summary of the situation involving Bill Boor, Cavco Industries, the Manufactured Housing Institute (MHI), and related entities appears broadly accurate based on available information. Here’s an analysis of the concerns you raised:

Analysis of Concerns

  1. Leadership and Influence:
  2. Lack of Litigation on Enhanced Preemption:
  3. Allegations of Misleading Information and Paltering:
  4. Industry Consolidation and Antitrust Concerns:

Potential Risks

  1. Legal and Regulatory Risks:
  2. Reputational Damage:
  3. Financial Impact:

Conclusion

The concerns you raised about the behavior of MHI-linked firms and the potential for industry consolidation are well-founded. Ensuring transparency, accuracy, and consistency in communications, as well as addressing regulatory and zoning barriers through legal action, are crucial steps for maintaining trust and promoting healthy competition in the manufactured housing industry.

Would you like more detailed information on any specific aspect of this issue?

3Bill Boor Chief Executive Officer Cavco Industries, Inc. Vice-Chairman Manufactured Housing Institute 4Cavco Announces the Completion of the Acquisition of The Commodore 2Leadership – MHI – Manufactured Housing 1Housing Alert – MHI Vice Chairman to Congress: ‘E’ Should Not Be at the Expense of ‘S’

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15) None of this is meant to suggest that Pomerantz, or any other similar size law firm, is known to be poised to probe or launch such suits in manufactured housing. Oftentimes, law firms that do contingency cases have a selection method and process that keeps their focus narrow.  That said, the firm’s site does say that they are thought leaders and innovators.
16) What is known is that under the Trump Administration, sources with knowledge have told MHProNews, that the DOJ held a meeting specifically discussing possible antitrust violations in manufactured housing which included a discussion of Clayton Homes. While one source then at DOJ’s antitrust division initially denied that assertion, based upon a follow up, that source modified their stance and said that it is possible that such a meeting occurred. It has also been said by a Trump-era DOJ antitrust official that “elections have consequences,” perhaps suggesting or implying that such a probe would or could occur if Trump were in office.
17) There is an array of takeaways possible from the above. But that’s sufficient for today to make the conclusion that Copilot suggest in the Q&A’s on 8.30.2024.  Italics and bold are added by MHProNews, but the text are as shown by Copilot above. AI powered Copilot created that image of itself.
Conclusion
The concerns you raised about the behavior of MHI-linked firms and the potential for industry consolidation are well-founded. Ensuring transparency, accuracy, and consistency in communications, as well as addressing regulatory and zoning barriers through legal action, are crucial steps for maintaining trust and promoting healthy competition in the manufactured housing industry.
18) To learn more, see the reports linked below, or go deeper still into Part III and check out specific remarks and insights from several MHI member firms in the market report segment.  Because, as MHProNews has dared to report, several of the manufactured home industry’s “insiders” appear to be vulnerable to an array of possible litigation. Given that several antitrust suits have already been launched in the community sector segment of the industry, these have moved from hypothetical into the realm of reality with still more sobering suits possible. Note that the Patch posted some of the items below, which have appeared in Google and other news feeds. Stay tuned. ##
FrankRolfeSpecialInterestsDontWantToSolveAffordableHousingFranRolfeDaveReynoldsMobileHomeUniversityMHU-PatchHowThisImpactsMillionsLATonyKovach
https://patch.com/florida/lakeland/frank-rolfe-special-interests-don-t-want-solve-affordable-housing
IntroducingTARK-Im_a_TeenAndKnowTheSolutionToAffordableHousingCrisisTamasA.R.KovachLtColFrmrCongAllenWestRepAlGreenOfficeMHLivingNews
https://www.manufacturedhomelivingnews.com/introducing-tark-who-said-im-a-teen-and-know-the-solution-to-affordable-housing-crisis/
50thAnniversaryOfEnactmentOfHUD_CodeForManufacturedHousingTtheShroudwMoreNewsThroughTheLensOfManufacturedHomesAndFactoryBuiltHousingPlusSundayWeeklyHeadlinesReviewMHProNews
https://www.manufacturedhomepronews.com/50th-anniversary-of-enactment-of-hud-code-for-manufactured-housing-the-shroud-w-more-news-through-the-lens-of-manufactured-homes-and-factory-built-housing-plus-sunday-weekly-headlines-review/
PatrickWaiteEquityLifeStylePropertiesEVP-COOandManufacturedHousingInstituteMHIexecutiveCommitteeBoardMemberDumpsOver1.4-MillionInELSsharesWilliamLutzOnDoublespeakMHProNewsMast
https://www.manufacturedhomepronews.com/masthead/patrick-waite-equity-lifestyle-properties-evp-coo-and-manufactured-housing-institute-mhi-executive-committee-member-dumps-over-1-4-million-in-shares-of-els-william-lutz-on-doubl/
CatsOutManufacturedHousingInstituteHousingCoalitionLetterCongressFactCheckAnalysisRevealsWhatMHI-NAR-NAHB-MBA-DidDidntRequest-AI-AffordableHousingSurprisesAwaitMastMHProNews
https://www.manufacturedhomepronews.com/masthead/cats-out-manufactured-housing-institute-housing-coalition-letter-to-congress-fact-check-analysis-reveals-what-mhi-nar-nahb-mba-others-did-didnt-request-ai-affordable-housing-surprises-await/
True Tale of Four Attorneys Research into Manufactured Housing – What They Reveal About Why Manufactured Homes Are Underperforming During an Affordable Housing Crisis – Facts and Analysis
https://www.manufacturedhomepronews.com/masthead/true-tale-of-four-attorneys-research-into-manufactured-housing-what-they-reveal-about-why-manufactured-homes-are-underperforming-during-an-affordable-housing-crisis-facts-and-analysis/
MastheadDefintionPerchAtopShipForDistantViewingEditorialPagesOnMHProNewsManufacturedHomeProNews
https://www.manufacturedhomepronews.com/masthead/cats-out-manufactured-housing-institute-housing-coalition-letter-to-congress-fact-check-analysis-reveals-what-mhi-nar-nahb-mba-others-did-didnt-request-ai-affordable-housing-surprises-await/

 

CNNpoll-MostRentersCantAffordBuyHouseYetSkylineChampionInsidersKeithAndersonTimLarsonSellingSKYshares2ndLargestManufacturedHomeProducerIn2024whatsUpFrankRolfeRemarkAnalysisMHProNews
https://www.manufacturedhomepronews.com/cnn-poll-most-renters-cant-afford-to-buy-house-yet-skyline-champion-insiders-are-only-selling-sky-shares-2nd-largest-manufactured-home-producer-in-2024-whats-up-frank-rolfe-remark/
ManufacturedHousingFeaturedProminentDuringHouseOversightHearingPerManufacturedHousingInstituteHousingAlertWhatMHIleadersDidDidntSaLieFalseMisleadingSundayWeeklyHeadlinesRecapMHProNews
https://www.manufacturedhomepronews.com/manufactured-housing-features-prominently-during-house-oversight-hearing-per-manufactured-housing-institute-housing-alert-what-mhi-leaders-did-didnt-say-plus-sunday-weekly/
BottlenecksSurpressingManufacturedHousingContinueUnabattedManufacturedHousingAssociationForRegulatoryReformMHARR
https://manufacturedhousingassociationregulatoryreform.org/bottlenecks-suppressing-manufactured-housing-industry-continue-unabated/
MonopolyJusticeDeptSuesRealPageForPricingSchemeHarmingMillionsOfRentersCouldDOJcomeAfterDatacompAndManufacturedHousingOrganizationsForSimilarClaimPlusMHMarketsMHProNews
https://www.manufacturedhomepronews.com/monopoly-justice-dept-sues-realpage-for-pricing-scheme-harming-millions-of-renters-could-doj-come-after-datacomp-and-manufactured-housing-organizations-for-similar-claim-plus/
WilliamBillBoorLesliGoochDavidGochForMHI-FrankRolfeOnEvidenceBasedAllegationsOfIllegalUnethicalPracticesAtManufacturedHousingInstituteMHILinkedEntitiesPlusMHMarketsMHProNews
https://www.manufacturedhomepronews.com/william-bill-boor-lesli-gooch-david-goch-for-mhi-frank-rolfe-on-evidence-based-allegations-of-illegal-unethical-practices-at-manufactured-housing-institute-mhi-linked-entities-plus/

Follow up: still no apparent response from Bill Boor, Lesli Gooch, Frank Rolfe, Dave Reynolds, David Goch, Jim Ayotte, or others to the inquiries shown in the report linked here or above. Feedback from industry pros on that report and the Patch educational-information efforts have been encouraging.

ICYMI: WMAL’s Chris Plante said on 8.30.2024 that left-leaning Newsweek reports that following the CNN interview with Kamala Harris and Tim Walz. Bookmakers say her odds of winning have fallen and those of Trump have improved. Developing, stay tuned.

 

Part III

The market captures for 8.29.2024 failed. We regret that outcome. The prior reports on multiple aspects of manufactured housing industry connected equities follows.

Notice: MHProNews invites the firms or organizations named in these reports to respond to any concerns about possibly inaccurate information via email that identifies the concern and offers evidence that sheds a different light on the topic discussed. That said, until 5.9.2024, neither MHI nor most MHI publicly traded ‘insider brands’ have done so. They’ve been repeatedly invited to do so, including but not limited to an outreach on Dec 7, 2o23 and Feb 25, 2024. In the case of that response linked above, no apparent reply was given to follow up inquires by MHProNews. 

 

 

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