Anyone who has been here since the beginning will remember Dominick Prevete, who we regularly sparred with in 2005. Well, it seems that the leading real estate bubble cheerleader has gotten himself into some trouble. But, before we get into that, let’s take a look back and review the history. For those who weren’t around in 2005, take some time to read these, you’ll enjoy them:
October 23rd, 2005: Debunking Another Real Estate Puff Piece
Dear Mr. Prevete,
You, sir, are a moron.
You have optimism over these new “Loan Products”? The new loan products that has the banking industry and the fed shaking in their boots? These new loan products that let underqualified buyers overleverage themselves to purchase overpriced homes that risk significant depreciation? You’re optimistic?
“The only risk is that the underlying asset loses value — and I don’t expect home prices to quickly depreciate,” he said.
Mr. Prevete, would you and your organization (Weichert Realtors) care to sign a contract that holds yourselves responsible for any depreciation or loss on any sales you broker? If prices don’t go down, you’ve got nothing to lose right? Or is this statement just doubletalk? That you do indeed expect home prices to depreciate, just not quickly.
November 16, 2005: N.J. home sale fever breaking, data show
“I believe the NAR numbers don’t reflect the last 45 to 60 days in the market,” said Dominick Prevete, regional vice president for northern New Jersey at Morris Plains-based Weichert Realtors. “In the short term, buyers have been on hold by some recent developments, like the Hurricane Katrina and the quick run-up in energy prices. Those things had people scared and a bit frozen.”
It’s our old friend Dominick Prevete again. You might remember him from “Debunking Another Real Estate Puff Piece”, a few weeks ago, I think I may have called him a skirt wearing, pom-pom shaking cheerleader for saying the market was a “win-win for buyers and sellers” and recommending risky loans. It seems he’s changed his tune a bit, so I wonder if he read my article (I did see alot of hits from Google showing that folks hit my site searching for his name).
Again, however, I must call you a moron Mr. Prevete. What impact would the hurricanes have on buyers in New Jersey? In case you missed it, they didn’t exactly hit here. Or are you just looking for something to blame, calling it only a short term downturn once we get over the pain of the hurricanes? And run up in energy prices? If the recent uptick in energy prices made it hard on someone to purchase a home, I really don’t think those people should be buying a home in the first place. These prospective buyers must be pretty strapped for cash if you are blaming an increase in gasoline prices on the decrease in sales. No Mr. Prevete, the reason people aren’t buying is because more and more people realize that real estate isn’t a “win-win” investment, and you can lose alot of your hard earned money. Buyers know we are in a bubble, and they are smart enough not to buy.
December 24th, 2005: To Warren Boroson and Dominick Prevete
Many of my readers will be familiar with the name Warren Boroson, a local journalist. Warren has written some real gems in the past year, many of which try to entirely discount the fact that there is a speculative bubble in residential real estate. Warren has defended his position so vehemently, one wonders what vested interests he has in it. Warren is at it once again, with his pal Dominick Prevete (regional vp of Weichert) who like clockwork appears in every one of Warrens articles to offer up expert opinion. Warren, why do you continually quote Mr. Prevete in every real estate article you write?
Perhaps I’m being too critical of the duo, the most recent piece at least concedes some possibility there is a bubble, however, the article ends with the usual pro-real estate spin..
So here goes, how the mighty cheerleader has fallen from grace. From the NJ Herald:
Former Weichert executive accused of embezzlement
A 46-year-old former top executive of Weichert Realtors who oversaw the company’s offices in Sussex County and elsewhere throughout the region has been accused in a newly filed company lawsuit of embezzling funds intended for marketing purposes and redirecting them for his own personal use.
Dominick Prevete, who rose from managing the company’s Sparta office to become regional vice president in charge of 23 Weichert offices throughout northern New Jersey, is alleged by the company to have defrauded Weichert and its salespersons by way of multiple acts of theft and forgery.
Prevete, a former Fredon resident who currently resides in Morristown, was fired by the company on Oct. 22 and has since been named by the Morris Plains company in an 11-page civil lawsuit that seeks unspecified compensatory and punitive damages for fraud, breach of fiduciary duty, and civil theft.
Prevete, reached by phone over the weekend, said “it’s (Weichert) a great company and I’m sure we’ll work it out,” but declined further comment.
But an internal company memorandum obtained by the New Jersey Herald, in which employees were directed not to talk to the media but were encouraged to share the information with others, indicates Prevete “stole company monies intended for Weichert Sales Associates and he has confessed to his misdeed.”
The memorandum goes on to state that the matter has been referred to criminal authorities and to the New Jersey Real Estate Commission, which could act to revoke Prevete’s real estate broker’s license.
In its lawsuit, filed in Superior Court in Morris County, the company details an elaborate scheme allegedly devised by Prevete to steal unused funds allocated to the company’s sales representatives for reimbursement of their marketing costs and have them redeposited into his personal bank account.
The lawsuit states that as regional vice president, “Prevete had access to information including which salespersons did not have direct deposit and which salespersons typically did not utilize some or all of their marketing funds” and that he used this information “to defraud Weichert and its salespersons and to benefit himself.”
The lawsuit indicates that Prevete — who, as regional vice president, had the authority to obtain marketing funds for salespersons under his jurisdiction — “abused his access to company information by researching and targeting salespersons who did not have direct deposit of funds so that he could obtain physical checks in a scheme to steal from Weichert and so that such thefts would not be detected.”
Prevete allegedly would then would fill out a form indicating a salesperson was to be paid a marketing allowance, would present the form to Weichert’s commission department for approval, and would then request a check payable to that salesperson.
Upon receiving the check, “Prevete then forged the signature of the salesperson on the check. After forging the salesperson’s signature, Prevete would then endorse the check for deposit into his own personal account.”
“Prevete would then tender the check to his own bank and fraudulently represent that the check had been properly endorsed over to him.”
The lawsuit goes on to detail three specific instances, right down to the check numbers themselves, in which Prevete allegedly forged and cashed checks in the manner described.
In each of the cases, the lawsuit states, “Prevete intentionally stole funds from Weichert by abusing his position to target the salesperson, by misrepresenting that funds were owed to the salesperson, by filling in a (request) form with fraudulent information, by forging the salesperson’s signature on the check and by depositing the funds into his bank account for his own personal gain.”
Hat tip to Wag for letting me know, and Eric Obernauer at the Herald for pulling this piece together. Took ten years to prove what we all knew on day one.
frist
Grim – Do you know if Weichert agents can file for reimbursement on any of their listings, or just sold listings? He has to be an idiot to have all of those checks endorsed personally with a forged signature immediately above it, leaving an incriminating paper trail. If he cut the agents in he might have gotten away with it, but knowing how agents always seem to have loose lips, I’m sure that wouldn’t have gone on too long either. I wonder how much the total take was, I can’t imagine that it is a lot of money since he was probably stealing on the behalf of the lowest performing producers.
I’ve met a few people who were indicted on fraud and theft charges. Usually, they were very well off financially so I always wondered where the motivation was. In thinking back on it, they were willing to break just about every rule or ethic there was no matter how small or how big. They get away with it their whole life until they reach the one person that won’t put up with their crap. I’m willing to bet, this went on for quite a while and the subservient people he did it to had no balls.
Character and greed, which put the historic quotes in the proper context.
You know, I’m not at all concerned about the theft, it’s no different from wild dogs fighting over a rotting carcass, you’d expect nothing less from Realtors.
What concerns me is the financial disaster that this guy likely left in his wake, spouting his cheerleading nonsense, especially in the context of his love of risky loan types. He was obviously motivated only by his own financial gain, which means he likely burned a good number of historical clients. I’d love to go through the MLS and see how many transactions with his name on it ended up in foreclosure.
Grim you are correct he is truly a moron.
If you are going to skim use a check cashing service not your own bank account. The “right” check cashing place leaves no trail.
Wish I thought of it.
Here is your safe space…
http://www.wired.com/2015/11/vollebak-miller-baker-pink-hoodie/
Grim, congrats on the vindication. It’s a guilty pleasure to be sure, but secretly enjoy it.
Shillington, PA today. Brooklyn tomorrow. It will be interesting to compare the recrudescence of society in two polar opposite settings in two days.
Say what you’d like provided you agree with my point of view.
http://thefederalist.com/2015/11/19/campus-protesters-to-media-sign-this-loyalty-oath-or-else/
…it’s no different from wild dogs fighting over a rotting carcass, you’d expect nothing less from Realtors.
I love it! They’re psychopath1c tour guides.
re # 11 – Still waiting for the CHE LIVES! t-shirt salesmen to show up.
As much of a dirtbag that this guy is, I’m sure nothing would be different if he wasn’t. The products he pushed on people would have been pushed on them by others as well. That was the sad state of the industry at that point.
10. And we wonder why people like Trump get traction with the general public
Look at that sign. She forgot the “H” in the word fighting.
295 S closed at Deptford exit for horrific accident. Burned out pickup in median on northbound side and what’s left of a small SUV (I think) in SB. Entire front half gone. Has to be a fatal; no way anyone survived that
#15..didn’t forget..the “h” is in a “safe space”….
Off to Brooklyn. Forgot that nasty sunrise catching you in the face on the northeast corridor line.
Expat (from previous thread)-
My dad debated Robeson Sr. on a couple of occasions and thought a lot of him. I’m assuming he knew the other black guys on campus, as he often told me how much shit he caught for being their friends. He passed 10 years ago, and I wish I had recorded or written down the details of everything he told me about those days.
My dad was the class of ’45. Actually, anyone in the classes of ’43, ’44 and ’45 who had school interrupted by war service was allowed to affiliate as an alumnus with the class of his choice. Each of those classes suffered over 50% KIAs in the war.
didn’t just last week there was a nutbag here defending them and the financial mkts that made it all possible? rapacious capitalism championed by ragnar and others
grim says:
November 22, 2015 at 10:58 am
Character and greed, which put the historic quotes in the proper context.
Can remember listening to managers talking about Prevete’s rise within Weichert when I was an agent there, back in the day. A real golden boy…
Too good to be true always turns out to be such a bummer.
Nom – that was the weirdest thing about living in LI, going in and out of NYC during business hours with the sun constantly…at my back? Seemed like bizarro world.
Off to Brooklyn. Forgot that nasty sunrise catching you in the face on the northeast corridor line.
Clot – I agree It’s a shame we don’t record some of those valuable oral histories with firsthand viewpoints that are written down nowhere. BTW, did you scroll down on the second link to see the pictures of Ward and Wilson on campus in ’46? They were 2 of the 4 V-12 guys that started in ’42. It sounds like your dad probably knew them both.
https://blogs.princeton.edu/mudd/2015/05/african-americans-and-princeton-university/
Expat (from previous thread)-
My dad debated Robeson Sr. on a couple of occasions and thought a lot of him. I’m assuming he knew the other black guys on campus, as he often told me how much shit he caught for being their friends. He passed 10 years ago, and I wish I had recorded or written down the details of everything he told me about those days.
My dad was the class of ’45. Actually, anyone in the classes of ’43, ’44 and ’45 who had school interrupted by war service was allowed to affiliate as an alumnus with the class of his choice. Each of those classes suffered over 50% KIAs in the war.
“‘Central Bank Panic’
Burbank’s main macro fund has beaten most rivals this year, returning 13 percent through last month, according to a person with knowledge of the matter.
Elliott Management’s Paul Singer also warned about global contagion from China’s decline. Singer told investors in an October letter that emerging market countries are “choking” on U.S. dollar-denominated debt that was extended due to low interest rates and monetary stimulus. He said many emerging economies, which are in recession, are “scared to death” about even a 25 basis-point increase in U.S. interest rates.
While “muddling along” is still an option, Singer wrote that the world could face a more severe scenario like a “global central bank panic.” He said that policy makers will probably “double down on monetary extremism” in response to deteriorating economies in emerging markets and China.
Some managers have a more sanguine view of China.
No Doomsday
“We are not in the doomsday camp as it relates to China,” Taconic Capital Advisors, a $7.4 billion firm that seeks to profit from corporate events such as mergers, bankruptcies or spinoffs, wrote to investors on Oct. 28. “Growth has slowed, but not as much as some feared, and the Chinese government continues to have a number of levers to pull to support its economy.”
Whether China has the means to spur growth is a question for Burbank, who says that will be “enormously difficult” to pull off.
“We don’t think a trillion dollar stimulus like the one initiated in 2009 is likely in the cards again for China,” he wrote. “Investors should prepare for a worsening global economic environment and the potential for recessions in both the U.S. and globally.””
http://www.bloomberg.com/news/articles/2015-11-22/masters-of-universe-scared-of-china-risks-see-yuan-devaluation
Home Maintenance Services (jj Edition):
http://nypost.com/2015/11/23/i-caught-my-super-stealing-my-underwear-on-camera/
So I get to Brooklyn only to find out meeting was canceled. Lead partner never saw email over weekend.
So who’s up for lunch?
Wish I was in the city. I would have lunched with you.
expat (23)-
Yeah, pretty sure he knew them. My dad was involved in some low-level code cracking work as an undergrad. He had been inducted into the Army, but he got discharged soon after because doctors discovered he had flat feet.
Funny/Sad thing about corporate theft: Most times it’s swept under the rug.
Only ONCE did I see someone prosecuted for it (usually they are fired and that’s it) – Aventis (Now Sanofi) back in 2003;
Chickie in the accounting dept. siphoned off $2,000,000.
I was a witness (under duress – I did NOT want to participate though it was a nice little vacay, all paid for – Damn ‘dem corporate lawyers can party!).
My testimony sealed her fate. Dumb blonde should have stuck to her plan (take a million, quit, change her name and move to Florida). Nope, she got greedy and…caught.
*Silly me forgot to take out a few DLLs while testing some software and a check for a
huge amount was mailed to my home. Next day I went to my manager, hers and the
CFO. They had me talk to the girl about it. Bimbette told me to keep it “our secret”.
Girl went to jail. I got laid off a year later.
Best line and so proper……
Dear Mr. Prevete,
You, sir, are a moron.
Lunch not an option. Lead partner still coming in and asked me to stick around. I’m going to give him crap though.
So I get to Brooklyn only to find out meeting was canceled. Lead partner never saw email over weekend.
So who’s up for lunch?
I am…which artisinal cupcake shop do you like the best?
Have to admire the ingenuity of kids these days.
Escape Rooms Bring New Attractions to New Jersey
Eric Rama and Teresa Pulcrano were strangers when they walked into Exit Strategy in Montclair recently. An hour later, when they emerged, Mr. Rama was praising Ms. Pulcrano’s sports trivia knowledge.
Exit Strategy, which opened in January, is among the escape rooms, or puzzle houses, that have sprouted in New Jersey — not to mention across the country — in recent months.
The rules, degrees of difficulty and atmospheres of escape rooms vary, but their concept is the same: Bring a cluster of people together, lock them up … and then make it difficult for them to escape.
“You have to work as a team to solve puzzles and challenges so you can get out in less than 60 minutes,” said Howard Klotzkin, a co-owner of Amazing Escape Room, in Freehold, which opened in July.
Escape rooms are an import from Eastern Europe and Asia, said Exit Strategy’s owner, Greg Aschoff, who discovered the concept in Hungary in 2013 and brought home his enthusiasm, along with a new business idea.
http://www.nytimes.com/2015/11/22/nyregion/escape-rooms-bring-new-attractions-to-new-jersey.html?_r=0
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