Maverick Residential Mortgage – From #1 to Implosion In ONE Short Year! Comments By Ethics and White Collar Crime Speaker Chuck Gallagher

I recall with vivid detail my first meeting to a wonderful organization – Success North Dallas. As I entered the room as a guest I noticed with keen interest the gathering of a large group of movers and shakers in the greater Dallas, Texas area business community. Frankly, I feel pleased to have been invited.

That particular meeting recognized a young man who caught everyone’s attention – Bob Johnson – the Chairman and CEO of Maverick Residential Mortgage – who had just been named by the Dallas Business Journal as one of the top 100 fastest growing businesses in the area.

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News Release from 2007: Maverick Residential Mortgage, Inc. was selected as 48th highest winner of the 2007 Dallas 100 Entrepreneur Awards at an impressive awards banquet Nov. 7. Executives and representatives of Maverick learned of their impressive finish at the gala held in the Morton Meyerson Symphony Center in the Arts District near downtown Dallas.

Sponsored by the Caruth Institute for Entrepreneurship at the SMU Cox School of Business, the 2007 Dallas 100 Entrepreneur Awards honor the 100 top entrepreneurial businesses in the Dallas market.

Maverick Mortgage, one of the nation’s fastest growing and most dynamic privately held firms, was named the number one ranking company among the 60 fastest growing firms in Collin County last May.

“Barrett Owens and I are indebted to each and every one of our executives, loan officers and support professionals in all of our branches nationwide and in our corporate office,” said Bob Johnson, Maverick’s Chairman and Chief Executive Officer. “To finish as high as we did in the mortgage profession that has seen more than 180 companies close its doors is a tribute to our people’s commitment to fair business practices, dedication to doing their jobs to the best of their ability and beyond, and to their undying accountability to customers and industry partners such as builders and realtors. I hope that every Maverick holds his and her head high in the aftermath of this impressive ranking.”

Now, less than one year later CBS 11TV reports that Maverick has put out an official statement that informs us of the complete shutdown, 401K information to former employees, with a back-date to January 16th.

Dated January 26, 2008 – “Maverick is closing and your employment is terminated effective January 16, 2008.”

What Happened? According to a report from Jack Fink – CBS 11 reporter the following quotes were used in an article (a full copy can be see through the above link):

Maverick CEO Bob Johnson acknowledged the company couldn’t meet its payroll because of major cash flow problems. He said they discovered the cash crunch last week.

“We had no clue it was coming,” said employee Greg Baker. He said he’s beginning to wonder how he’ll put food on the table for his wife and three young sons.

“Everyone was stunned. There were tears. There was shock,” he said.

“We’re definitely trying everything we can to be able to handle that and that’s part of where we are right now — is getting our arms around how much cash we do have available for those individuals,” said Johnson.

Toward the end of January it was reported that both federal and state investigators are looking into why Maverick Residential Mortgage shut it’s doors.

According to a CBS 11 report:

In a letter to employees dated Jan. 25, company CEO Bob Johnson said that the payroll could not be funded because Maverick Residential Mortgage has “experienced unforseen business circumstances” and that their “employment is terminated effective Jan. 16.”

Now, the company’s CEO has asked federal and local law enforcement to investigate. Johnson said that the issue will not be resolved quickly, but he is committed to clearing Maverick Residential Mortgage’s name.

Back To Our First Meeting. Like most I was startled by the announcement. However, I recall the meeting with Bob Johnson at Success North Dallas. We were introduced and politely he asked what I did. My reply – I help companies avoid white collar crime. As a business ethics speaker and white collar crime speaker – my job is to help companies understand how white collar crime takes place and implement programs to thwart fraud like that from happening. His response – “Hum, we’ve got a strong company, but maybe there’ll be a need for an ethics program some day.” And with those comments, he moved to another participant in the meeting, all of whom seemed to be lauding praise on his company and accomplishments.

Too Late! As a business ethics and white collar crime speaker, (www.chuckgallagher.com) I find that all to often, corporate executives seem to think that actions like what Maverick Residential Mortgage experienced won’t happen to them. Every choice has a consequence. While fraud happens – there are steps that can be taken to minimize the likely-hood of white collar crime closing the doors of your company. While I regret what happened and the casualties that followed, I wonder if the outcome could have been prevented.

For now, law enforcement will have to do its job and there will clearly be more to come.

Your comments are welcome!

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11 Responses to Maverick Residential Mortgage – From #1 to Implosion In ONE Short Year! Comments By Ethics and White Collar Crime Speaker Chuck Gallagher

  1. Bob Johnson of Maverick Residential Mortgage guilty of fraud? Any truth to that?

    I saw the video of Bob Johnson acting like he didn’t know what was going on???

    “We are going to try and find out” is what Bob Johnson said. How do you run a company and not know that huge amounts of money are being stolen, unless you are in on the scam or totally incompetent? I have heard that incompetent people really have no clue.

    Bob Johnson do you have no clue?

    When you check the whois for maverickmortgage.com Bob Johnson is the person that the domain is registered to. The domain points to http://bayareatopic.com. Wouldn’t it be reasonable to assume the Bob Johnson is affiliated with that site.

    Is that site another scam site?

    Everyone wants to know about your next big thing Bob Johnson?

    Bob Johnson of Maverick Residential Mortgage, Inc. is he a scam artist or simply a ding bat?

    Bob Johnson, What is it like to be investigated by State and Federal authorities?

    Maverick Residential Mortgage, Inc. of Fresco Texas? Who stole all of that money? Was Bob Johnson the CEO when the scandel took place?

    I noticed that the domain http://www.maverickmortgage.com was registered to Bob Johnson and it was pointed to bayareatopic.com. Is that another one of Bob Johnsons website? Is he affiliated with this forum? Why did he point the domain to this site?

  2. Andy says:

    How does a company like that just vanish with no complaints to the BBB no legal troubles or anyone making any noise? I did a bunch of work for them right before they closed and got burned. I can’t seem to find any info on them at all, did they pay everyone except me?

  3. There is a lot of noise. They filed for bankruptcy and there are on going investigations. You weren’t the only one burned. Many folks were casualties here.

  4. Tom Burris says:

    They stole our commission checks….

  5. peggy hall wise says:

    all I wanted was to buy a foreclosed home that they have. loan# 5847001206

  6. Craig Dickerson says:

    I lost a lot of cash and future commissions but Bob Johnson did not do anything. Here is the name of the person that did it. Jennifer Hemingway

  7. PETER says:

    IS MAVERICK FUNDING THE SAME COMPANY AS MAVERICK RESIDENTIAL MORTGAGE?

  8. Brent R says:

    Chuck, are the investigations still going on? Looking for the results of this scandal.

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