Employers Direct Stops Writing Workers' Comp Insurance in California
West News • July 1, 2009
Citing the strain of escalating medical costs on the workers' compensation system, increasingly intense price competition, and the uncertainty over the sustainability of the 2003-2004 legislative ...
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Subject: Fremont doesn't pass the smell test, John
Posted On: August 4, 2009, 4:04 pm CDT
Posted By: KT
Comment:
John M Beringer, Jr
The Fremont deals don't pass the smell test.
1.)The timing of James Little's departure, just before 10,000 cases of forged documents in the WC insurer, including the headquarters in Glendale, in 1998 were found needs further elaboration.
2.)Also the timing & source of the $200 Million that Fremont's Lou Rampino and James McIntyre used in the "to fund" the subprime loan business in 2000.
"Fast forward a year, and ol' Lou decides to get Fremont started in the sub-prime market. We know where that got Fremont a (cease and desist from the FDIC in 2007).
Notice a trend with Lou?"
-------------------------
In 2000.
Murray L. Zoota bragged about Fremont General, on August 14, 2000, that FMT the holding company, had "fund the growth" $200 Million in the subprime loan business.
At the same time 2000 Fremont General FMT allowed the insurance company to go under due to under-reserving for claims losses.
Note: Murray L. Zoota was the one that reported in 2000 that $200 Million was transferred from the Fremont's Holding Company to "seed" the subprime business while at the same time Fremont's Worker's Comp Insurance company was allowed in a 2002 agreement by California Insurance Commissioner Harry Low to collapse leaving the State of California holding by Dec. 2008 -- $1.64 Billion in accepted but unfunded Worker's Comp. claims.
------------------------
Lender Manages to Grow in Rocky sub-Prime Market - Brief Article
Los Angeles Business Journal,
August 14, 2000
by David Orloff
http://findarticles.com/p/articles/mi_m5072/is_33_22/ai_64569201
In the recent rough and tumble times of sub-prime lending, Fremont Investment and Loan hasn't just survived, it's grown.
[snip]
"We were always in front of the parade," said Murray Zoota, Fremont Investment's president and chief executive.
Fremont has prevailed by adhering to "disciplined" underwriting guidelines, Zoota said. The default rate on Fremont's mortgages is half or less than the industry average, he said.
Fremont also has gotten support from its parent, Santa Monica-based Fremont General Corp., the insurance and financial services company with more than $8 billion in assets and $1.4 billion in annual revenue. In the past decade, Fremont General has provided the thrift with about $200 million in funding to grow its operations.
In 1989, when Fremont General purchased the thrift, the lender had $40 million in assets, 38 employees and was making consumer and commercial real estate loans. Today, Fremont counts $5.5 billion in assets, 960 employees and was originating over $2 billion in sub-prime mortgages a year."
===========================
When former California Insurance Commissioner Harry Low who took
over as Calf. Insurance Commissioner in 2000 had an undisclosed Conflict of Interest.
Harry Low was formerly on the BODs of the Union Bank of California and that bank's Board of Directors "Credit Policy and Review Committee" in 2000, just before assuming the office as Insurance Commissioner, when Chuck Quackenbush was forced to resign.
The UnionBank of California (UB) had previously, in 1997, made a $25 Million loan to Fremont General & Union Bank was holding 343,490 shares of FMT stock in 2000).
Hary Low was holding 5,536 Shares of Union Bank of California stock in 2000.
Fast forward to 2006
Fremont's auditor quit in 2006 and the their rainmaker, Murray L. Zoota in the subprime business, was kicked upstairs to FMT's BODs, after having maded Fremont Investment and Loan the third largest subprime lender in in the United States.
The current California Insurance Commissioner Steve Poizner has just settled a multiyear $495 Million dollar claim against Fremont General for less than $37 Million when Fremont Generals Insurance estate owes the State of California $1.64 Billion.
West News 
Subject: Fremont doesn't pass the smell test, John
The Fremont deals don't pass the smell test.
1.)The timing of James Little's departure, just before 10,000 cases of forged documents in the WC insurer, including the headquarters in Glendale, in 1998 were found needs further elaboration.
2.)Also the timing & source of the $200 Million that Fremont's Lou Rampino and James McIntyre used in the "to fund" the subprime loan business in 2000.
"Fast forward a year, and ol' Lou decides to get Fremont started in the sub-prime market. We know where that got Fremont a (cease and desist from the FDIC in 2007).
Notice a trend with Lou?"
-------------------------
In 2000.
Murray L. Zoota bragged about Fremont General, on August 14, 2000, that FMT the holding company, had "fund the growth" $200 Million in the subprime loan business.
At the same time 2000 Fremont General FMT allowed the insurance company to go under due to under-reserving for claims losses.
Note: Murray L. Zoota was the one that reported in 2000 that $200 Million was transferred from the Fremont's Holding Company to "seed" the subprime business while at the same time Fremont's Worker's Comp Insurance company was allowed in a 2002 agreement by California Insurance Commissioner Harry Low to collapse leaving the State of California holding by Dec. 2008 -- $1.64 Billion in accepted but unfunded Worker's Comp. claims.
------------------------
Lender Manages to Grow in Rocky sub-Prime Market - Brief Article
Los Angeles Business Journal,
August 14, 2000
by David Orloff
http://findarticles.com/p/articles/mi_m5072/is_33_22/ai_64569201
In the recent rough and tumble times of sub-prime lending, Fremont Investment and Loan hasn't just survived, it's grown.
[snip]
"We were always in front of the parade," said Murray Zoota, Fremont Investment's president and chief executive.
Fremont has prevailed by adhering to "disciplined" underwriting guidelines, Zoota said. The default rate on Fremont's mortgages is half or less than the industry average, he said.
Fremont also has gotten support from its parent, Santa Monica-based Fremont General Corp., the insurance and financial services company with more than $8 billion in assets and $1.4 billion in annual revenue. In the past decade, Fremont General has provided the thrift with about $200 million in funding to grow its operations.
In 1989, when Fremont General purchased the thrift, the lender had $40 million in assets, 38 employees and was making consumer and commercial real estate loans. Today, Fremont counts $5.5 billion in assets, 960 employees and was originating over $2 billion in sub-prime mortgages a year."
===========================
When former California Insurance Commissioner Harry Low who took
over as Calf. Insurance Commissioner in 2000 had an undisclosed Conflict of Interest.
Harry Low was formerly on the BODs of the Union Bank of California and that bank's Board of Directors "Credit Policy and Review Committee" in 2000, just before assuming the office as Insurance Commissioner, when Chuck Quackenbush was forced to resign.
The UnionBank of California (UB) had previously, in 1997, made a $25 Million loan to Fremont General & Union Bank was holding 343,490 shares of FMT stock in 2000).
Hary Low was holding 5,536 Shares of Union Bank of California stock in 2000.
Fast forward to 2006
Fremont's auditor quit in 2006 and the their rainmaker, Murray L. Zoota in the subprime business, was kicked upstairs to FMT's BODs, after having maded Fremont Investment and Loan the third largest subprime lender in in the United States.
The current California Insurance Commissioner Steve Poizner has just settled a multiyear $495 Million dollar claim against Fremont General for less than $37 Million when Fremont Generals Insurance estate owes the State of California $1.64 Billion.