June 15, 2001 Teller County Building Department Attention: Janet Lloyd P.O. Box 1886 Woodland Park, CO 80866 Reference: Complaint about Northstar Construction and Management Companies To Ms. Lloyd: I am writing this letter to formally submit a complaint, in writing, about NorthStar companies and to out-line the fraud and mismanagement / misrepresentation that has been on-going for over a year, during which time NorthStar was suppose to provide me with a Manufactured home, barn and garage, with a road/driveway, located on the land that I bought from them in Florissant. Because of the 3-way fraudulent practices of NorthStar Companies, Rocky Mountain Construction Lending and Grand West Financial, I am teetering on the brink of financial ruin and extreme stress. I've had to get an accountant, and have sought the help of 3 attorneys. This situation is still dragging on, as I have been struggling to stop NorthStar from stealing from me! Currently, Rocky Mountain Construction lending is moving forward to foreclose on me while, NorthStar has locked me out of a first Mortgage with a Mechanics lien, after refusing the offer of Binding Arbitration with the full contested amount of money to be escrowed. One of their other colleagues in crime, Grand West Financial has an illegal lien on me for a Deed of Trust, without providing me a loan. My accountant has found evidence of numerous counts of fraud, and I am disputing the amount of money that NorthStar and Grand West Financial is liening me for. They have never provided any invoices, as orally and written requested, to prove any of the costs that they are claiming and have not lowered the price as they have not provided several major items that they agreed to provide. I still don't have my home/out-buildings completed. I do have a new attorney, Anthony Johnson and some new friends! It is my hope that you will carefully review this letter and others that you have already received and will be receiving, in regard to the blatant fraud and victimization that "NorthStar and colleagues" commits to everyone who walks through their door, and immediately revoke NorthStar's license to operate in Teller County. We must stop this continuing victimization of innocent people, who in good faith contract with NorthStar for a variety of "services", which is rarely received and always at extreme personal cost and victimization. For your information, there is a hearing occurring in Park County, Tuesday, June 19, to determine if NorthStar should be denied their license to operate there. There are currently 14 people who have stepped forward and revealed their story to Mike Meadors and Karen Dudnikov, myself included, and have been included in his web site, "www.northstar-sucks.com". This web site is designed to warn off potential victims of NorthStar. I was already caught up in their "web" of intrigue, as of May 11, 2000, before Mike and Karen even got there. Therefore, there was no web site up yet, no warnings available! But, one can't miss all the lovely "thank you cards and letters", on their bulletin board (that they must have written themselves) that sets the stage for their "scam". Before I go into further detail, allow me to outline NorthStar's method of operation that has become clear after comparing notes with all these other folk who have been "conned". It all begins when you walk into the plush office, and see the nice furnished and interior decorated pre-manufactured models for sale. (This varies, depending on what's on the lot at the time.) You are met by Doug Robbins, or his representative, and sometimes Barbara Robbins joins him, to mesmerize you with their winning smiles and smooth soothing talk. If you don't have land already, you get shown some of the lovely land sites available in Teller or Park County. Why you'd be a fool if you didn't buy now, and fast, as values are soaring rapidly! So, you start a contract for some land and a lively pre-manufactured home, that costs only $39.95 per square foot! Then you get, seduced or rather, introduced to the other components of the scam' Rocky Mountain Construction Lending and Grand West Financial! Wow! It's all there for you in a neat one-stop shop package, and NorthStar will graciously provide the construction "mismanagement" for a mere $5000.00, (you find this out later as, the "management" fees are divided into 2 parts, $2000 for Barbara Robbins to cheat you with the numbers/accounting, and $3000, for Shari Beeler to cheat you with the construction "management")! You're on your way, and it'll only take 60 to 90 days! You see yourself in your mountain home, for half the time and half the price of a stick built home! You sign the papers in good faith, you bring in lots of money up front (for me it was $12,200), then you sit, for months on end, as your construction loan runs out. You bet for completion while NorthStar blames, Teller County or Park County and all of their subcontractors, plus the weather, even if its good. Then, before you know it, you find yourself with $1400 a month in interest payments when it was represented to you that it would only be $133 a month! Add to that $505 to renew the expired construction loan that should not have expired! After all of the delays and problems, I began to really question NorthStar, early February 2001, along with Rocky Mountain Construction Lending and Grand West Financial, about all of the double charges and mismatched numbers between the 3 companies on the construction draws. So, after 3 lawyers and an accountant, Rocky Mountain Construction Lending would not renew my loan a second time in early April, per my request late February. Therefore, I'm currently in arrears and have run out of money after paying over $7000 in interest, because NorthStar did not finish in a timely manner. I'm being calculated at 29% interest on a $120,107 loan, while Rocky Mountain Construction Lending is foreclosing on me. All the while I can't get a first mortgage to at least pay off the construction loan due to NorthStar and Grand West Financial have filed liens against me. I have a new lender (not Grand West Financial) willing to lend, a loan that I got on my own, but they must have first position or they won't lend. Finally, here I am, my "dream home" a "nightmare", I'm getting ready to go to court, thousands of dollars spent, attorney and accountant fees paid and more to pay, and still no "dream home", all because NorthStar and "Friends" are dishonest! Out-line of grievances: 1. The project began May 15, 2000, with $500 down payment on the land. I'm offered a modular garage for $2300, NorthStar later reneges on their offer. 2. By August 2, 2000, the construction loan began, I'm overcharged by $1000 for the land in the loan documents, from $38,900 to $39,900 and "they" are unwilling to retype the documents, say that I'll get it back later. I've never seen proof of getting the money credited back. The package deal was to include; land, manufactured home (with changes), barn and garage with a road/driveway. 3. Misrepresentation by NorthStar and Grand West Financial about the time needed to finish project, by statement that interest payments will only be $133 pr month. This implies to me that they will finish within 60 to 90 days. 4. Late August, 2000, I begged NorthStar for a completed barn and garage plan. I show them the sketches for placement of the building o the land. I finally got a faxed sketch for the barn only, no garage by November 13, 2000. 5. No house and the project is moving slowly. I'm double charged over $6000 for installation of power poles which was paid directly to I.R.E.A., as shown by accountant findings later (early February 2001), when I question charges. 6. I mark up my modular plan view to show addition of whirlpool bath and double sink vanity in master bath. Never received, and never notified of lack of items ordered. Only to discover it myself, when I entered the home after it was set, in January 2001. My charges are never reduced to reflect items not provided, but requested. I have the home stretched two times to allow for a double vanity, only to be told (after I discover the double vanity not installed when I did my own walk in) that it was still not large enough to allow for required space between tub, toilet and vanity. I'm never told this, it is never laid out on paper first. I still don't know if I got the two stretches. I have yet to prove this by measuring it for myself. TBD. 7. The Teller inspectors can't find a property marker two times, and footing is not per engineering. Three failed inspections, to my knowledge. 8. During October 2000, the house can't be delivered, as apron to driveway is incorrectly engineered and has to be redone. Who paid for that mistake, ME!? I find this out when I go to see the site and find the mfg. home on NorthStars' lot, not on my property. I can't get into the unit to see the mistakes in time to refuse delivery. 9. Work goes on slowly, September, October, November and December, requests for reasons for slowness are blamed on Teller County permit and inspection process, subcontractors, and weather, even though is it unseasonably warm. 10. November 13, 200, after begging NorthStar I have a barn design. I ask for power and a frost free hydrant to the barn. I'm offered sky lights by NorthStar, I accept. 11. December 2000, when I'm out of the country, bills stop arriving from Rocky Mountain Construction Lending, I assume that costs are being rolled into the construction loan, as the charges have been $500 to $700 a month. I'm in a panic trying to pay these unexpected costs. 3 or 4 months later I received a billing showing past due with over $5000 in interest charges due. Also, that the loan is expired and needs to be renewed for $505. No one informs me, least of all NorthStar, who has never been working in a timely manner. With great financial hardship, I get loan current and renewed, but with a loss of points in my credit rating. The loan had expired late December. 12. House final inspected, January 5, 2001, after construction loan expires. The barn and garage have not yet been started. No plans yet for the garage. I continue to beg Northstar for timely action and plans for the garage. 13. Early February a phone call from NorthStar asking which I want built first, barn or garage? I ask what does this mean? I don't get my other building? A terrible fight ensures, disrupting me at work. 14. Early February, I start really looking at the numbers on the draws, NorthStar implies that it's running out of money and can't build my garage. $4050 still remained in the construction loan (I learn this later, that only about $4600 is spent on barn). $14,000 was allocated to build a barn and garage that was to be all one structure. I hire Joe Haddad, an accountant and ask him to go through every number! I also hire Angela Curts to find me a mortgage. I learned that Grand West is cheating. From Angela Curts I learned that a couple of over-30 payments dropped my credit rating, during my struggle to pay the horribly high interest on my construction loan, and that Grand West never did have a commitment to lend from nay lender. In fact, they only had a preliminary approval for a loan from Green Point, dated July 2000. That's all that they ever had. So, I started looking for a "real loan", fast! 15. February 2001, barn finally, started and not final inspected until April 27, 2001. I have no sky lights, no power and no frost free hydrant to the barn. Trench for footing of garage is dug before barn finaled. Garage is not built to date. 16. March 1, 2001, I see first attorney, Paul Murphy warns me that there is definitely a conflict of interest, as NorthStar is both the Real Estate broker and Contractor, but to avoid court if possible, as it takes so long. Next day he declines to help, citing conflict of interest, as he is an advisor to Colorado Springs Real Estate Boards and NorthStar is a member. Via Joe Haddad, I contact Lloyd Pearcy, pay $400 to look at situation and see if I can get help from Colorado District Attorney. By now Joe Haddad has revealed financial fraud. 17. Middle March, 2001, I learn from a neighbor that the barn was 6" outside of the engineering and that they had to tear the roof joints off and move the wall in per the engineering. A neighbor told me this, so I asked NorthStar who paid for this error, oh the contractor "ate it". I've never seen proof of the actual costs, or any costs. Did I pay yet again for NorthStars' mismanagement of my contract? 18. March 23, 200l, a meeting is held with NorthStar, Grand West Financial, Joe Haddad my accountant and myself, with Pat Gowland present to witness. 2 hours and 45 minutes later, NorthStar and Grand West with Rocky Mountain Lending data, are unable to explain or reconcile numerical discrepancies. Joe Haddad, after the meeting says these 3 companies are definitely in this all together to commit fraud. 19. Middle April, 2001, I receive a letter from Rocky Mountain Construction Lending, saying that Grand West Financial was ready to close on April 9th, (after RMCL would not renew my loan so that I could get the figures worked out, and find a new loan). This was news to me! Grand West never contacted me to tell me of this closing date. It was a moot point anyway, as I already knew that they could not provide me a loan, as Angela Curts (my new mortgage broker) has already informed me of this, that Green Point would not lend to me due to my loss of credit rating (no thanks to NorthStar not working in a timely manner and RMLC not extending my 29% loan!). Also, that Grand West never had a letter of commitment to lend to me from Green Point or anyone else. They have tried to force me to close on this property, having not completed the barn or garage, and the road/driveway is still unfinished. Not to mention all the other things that were ordered that I didn't receive. 20. To this day I have no idea what other problems there were or what will later arise with the construction. I was kept hostage and could not enter the house unless NorthStar gave ma a key. Finally, I paid a locksmith to rekey all of the locks and give me keys. NorthStar has keys to every model they sell. Also, I must say that where the trench for the well lines was dug to the house and across part of my driveway, it has deeply sunk several inches and is an eye sore as well as very difficult to drive over. Is this correct compaction after excavation? 21. April 13, 2000l, Mike Meadors and Karen Dudnikov send me a letter about their horror story with NorthStar in Park County. He tells me of many other people with horror stories. I feel a bit better that there are many others too, I'm not the only one going through this terrifying situation. Mike informed me that I should have received a credit for the chaise and wheels on the mfg. House, which I did not get. Mike Meadors runs the web site; www.northstar-sucks.com He recommends Anthony Johnson as a possible attorney who knows what all the others are going through. I hired Mr. Johnson, May 10, 2001. 22. I recently noticed that after the final inspection, a breaker box was poorly installed on the outside of the house on a 4"X4". I don't know it's function or if it's legal?! 23. Last but not least, NorthStar told me that I was to receive a 27" TV and VCR with my home, to be installed in the "Media Room', which I have not yet received. I am in a serious situation, with liens and foreclosures happening to me, when I went into this deal in "good faith" with NorthStar, and I have paid until I have no more money. I'm working extra jobs this summer to pay my accountant and my attorney, as I am a teacher and make an modest income. Hence, my "reasonably price" manufactured dream home has become a nightmare, and I have financial destruction possibly on the horizon. My house had now cost more than it's worth and I will be upside down in its value, if I ever get the house. The stress has been horrendous, and as a recent Breast Cancer survivor, I am in fear of a reoccurrence, as stress is a major factor with cancer. To finish the story of the MO to the con's scenario, this is NorthStars' way; get the middle income person into a financial mess, due to their lack of timeliness, and either force the person to close with an unfinished property (so they pay extra to finish it) or get the person into such deep financial trouble, that they give up the fight and sign their property over to NorthStar and "friends" to avoid foreclosure and bankruptcy. These people are Con Artists, and hopelessly incompetent. You must not allow them to continue to operate in Teller County and take other innocent people and put them through what I've gone through and am still going through. PLEASE REVOKE THEIR LICENSE NOW! Find enclosed, several attachments of complaints from other unfortunate victims ranging from Park County to Teller County, as well as letters from past subcontractors who have quit the employ of NorthStar, and evidence of NorthStar violations, such as operating with out proper license and misrepresenting themselves as an LLC (Corp.), when in fact they are not a corporation at all, but a limited liability company. These attachments are marked in red "attachments; Haagen". In final closing, I again request that you do not allow companies such as NorthStar to continue to operate in Teller County. They are lowering the quality of life for many resident new and old, and are blaming Teller County Building Department, and others for their own incompetence. Very sincerely yours, Rui Haagen Phone: (719) 687-3334 P.O. Box 761 Woodland Park, CO 80866 Cc: Anthony Johnson