Romspen Executives Are Having A Meltdown As Caroline Weiss And Her Daughters Decide To Work Together To Fight Romspen
Romspen executives having a meltdown over news that the Weiss family feud in Miami is over. The family has declared a truce in their decade long litigation over the three Miami properties known as Blue Lagoon.
The litigation played out like something out like a 1980s prime-time soap opera since December of 2014. It had surprise witnesses and shady lawyers preying on the venerable octogenarian Caroline Weiss.
Yet, it was Mrs. Weiss’s health that led to her making amends with her daughters Alitza and Adeena. Thus, ending the litigation lunacy.
They now have common goal. The three Weiss woman now have a common goal. They want to stop Romspen Investment Corporation from taking their commercial real estate known as 7 At Blue Lagoon. This new alliance could be very bad news for Romspen.
Caroline Weiss’s daughter Adeena Weiss-Ortiz who sued her mother for fraud has dropped her lawsuit. Caroline Weiss has now retained Weiss-Ortiz to defend her in the Romspen foreclosure.
As MFI-Miami described in previous articles Weiss fell victim to Romspen’s highly deceptive Loan-To-Own Scheme.
The Romspen Loan-To-Own Scheme
On the surface it appears odd that Romspen is lending money on projects that don’t generate any revenue.
MFI-Miami isn’t the only one who questioned Romspen’s post-pandemic lending history. Several others have as well. Braden Maccke at Deep Dive has written about it:
So, why would they do this? The finance industry refers to it as Loan-To-Own scheme.
Lexology defines “Loan-To-Own” as:
The Weiss Family Feud Exposes The Romspen Loan-To-Own Scheme That Lures In And Traps Inexperienced Borrowers
Romspen’s business model is to find inexperienced entrepreneurs and like Caroline Weiss or the three stoners from Colorado. Then lure them in with big promises and throw a big wad of cash at them. Cash that they know the borrowers will never be able to pay just so Romspen can take over the project. Then Romspen would either sell it or complete it and pocket millions more.
In other words, it’s the financial world’s version of a pedophile in a fake ice cream driving around trying to sexually exploit children.
According to one source, 40% of all the loans that Romspen issues results in them taking ownership of the respective projects. In the bankruptcy proceedings, companies that ascribe to the Loan-To-Own model will devalue the project less than the loan amount in order to increase their profitability to obtain and sell the property.
Why Romspen Started The Loan-To-Own Scheme
Romspen executives developed the Loan-To-Own Scheme in response to the Covid-19 pandemic. During the pandemic, commercial office drastically dropped as tenants realized they could save money having employees work from home. In return, this threw the North American commercial real estate market into a free fall and commercial real estate prices plummeted.
Romspen executives saw the dystopian future of commercial real estate. So they developed the Loan-To-Own scheme. Executives created the scheme to be a quick cash grab. This way Romspen could pay investor redemptions for previous projects to hide their Ponzi scheme.
Romspen executives like Wesley Roitman assumed borrowers would sign over the property days after a foreclosure lawsuit was filed. Unfortunately for Romspen, that didn’t happen. Borrowers fought back.
However, it turns out it, the Loan-To-Own business model has turned out to be a trainwreck for the company. The company is now sitting on billions of dollars of non-performing paper and tens of millions of dollars in unpaid legal fees.
The Weiss Family Feud Showed How Romspen Lures In Inexperienced Borrowers
Romspen loans the money to a borrower. After the contract is signed, Romspen would refuse to disburse funding to the borrower. This results in the borrower being unable to develop the property in order to generate revenue from it. This allows Romspen to increase the interest rate to a point where the borrower is forced to go into defaulting on the loan or going into bankruptcy . This would allow Romspen to start the process of taking ownership of the project.
Once Romspen highlights that a default has happened, the borrower has 45 days to pay the balance. If that doesn’t happen, Romspen can foreclose on the property.
Thus, the failure to pay results in an increased default rate. This toxic spiral can put the borrower to a point where they must borrow from another lender or sell property to pay the interest. In most cases, Romspen wants the borrowers to drown in the endless sea of debt in order to simply own the project for themselves.
This Article Originally Appeared On MFI-Miami.com.
Check Out These Government Websites If You Feel You Are A Victim Of Romspen:
How To File A Complaint In Canada:
Contact The Canadian Investment Regulatory Organization (CIRO) At 1.877.442.4322 For More Information. You Can Also Email Them At complaints@mfda.ca
You Can Also Contact Your Local RCMP Office For Assistance By Clicking Here.
If That Doesn’t Work, Contact Finance Minister François-Philippe Champagne:
francois-philippe.champagne@parl.gc.ca
You Can Also Contact His Office On Parliament Hill At 613-995-4895 Or His Shawinigan, Quebec Office at 819-538-5291.
Call His Office At 613.992.2772 (Parliament Hill) or 613.692.3331.
If You Are An American Citizen. Contact These Federal Agencies:
You Can File A Complaint With The Securities And Exchange Commission By Clicking Here.
Also, You Can File A Complaint With The Federal Trade Commission By Clicking Here
In Addition, You Can File A Complaint With FINRA By Clicking Here
