Complaint Review: Universal Corporate/Anthony Tobin and Partners

I was shocked to read the rationalization for paying up front fees. The individual who said he was trying to meet such funders should simply look in the yellow pages under real VC firms.

I have just recently completed arranging $16M in financing for a related company. In the course of this process, we were interviewed by approximately 50 VC firms. Some ran models, some did cursory due diligence, most came to visit us here in Florida. Not a single one ever asked for or inferred the payment of fees in advance of funding.

Period.

The best litmus test of a funder is if they ask for up front money, run, don't walk away. Those who are successful at funding projects don't need to charge up front fees to defer their costs.

Why will Mr. Anthony Tobin, owner of Universal Corporate Consulting, not supply a reference of a company or individual who has received funding from his firm? This would clear everything up. To add a reference letter with an unidentified source is big cause for caution.



"Mr. Tobin, name one project that was successfully financed by your firm or your partners... I challenge you to!"



More to come when my investigation is complete.

Todd

Charlotte, NC

Regardless of whether it was mentioned, due diligence is always done before any lender will commit to a project. This is clearly indicated on my web page, that the client will usually be responsible for this cost.



Obviously, due diligence is not considered upfront fees. They are expenses for work actually done to qualify all the information a client has presented in his business plan, to verify as truthful, complete, fully qualified and certify actual profitability as much as possible prior to commitment. It is clear that if people have lost money by paying for due diligence, it means the project failed to pass scrutiny and will never get funded. These are the people who post negative feedback on bulletin boards, blaming everyone else for their failure.



Responsibility falls on the client for failure to prove his own project. Failure to prove the projects fundability, will usually mean loss of funds paid for the due diligence. For instance, if any company is paid for a service rendered, the company keeps the money paid for the service completed, regardless whether it produces a negetive outcome for the client. The service has been executed and completed. ONLY, the clients who produce a positive due diligence can be considered for funding.



Too many clients will exaggerate on their financials, ownership of property of all types and generally fail to tell the truth about their projects. This is why due diligence is done, to discover the truth. Third parties are paid to do this study for the funders and always by the client. As you might imagine, that if the lender were to pay for due diligence for all the projects that come across the table, it would add up quickly. Since most projects, as much as 95%, do not pass due diligence, by fault of the borrower, the cost must be paid for by the borrower.



It has been my experience, that if a project is not funded within 6 months to a year, there is a problem with the project and it will likely never be funded.



But, if you feel strongly enough in your position, to not move forward, I will understand, please advise.



Regards,

I can't imagine people believing anything they read on such a place as an internet bulletin board. It is always a place to put any information you want without backing it up with FACT.

Where is the real evidence of wrong doing?



ONLY unsuccessful, disgruntled, incapable people post information on these boards. Ask these people if they have ever gotten their project funded. Very unlikely. This would point the difficulty to themselves and having an unfundable project. Which would be discovered during the "due diligence process.



I thought they had discussed the due diligence with you in the meeting. They usually do. This is their requirement based on your particular project.



I believe a further explanation of what due diligence means is necessary. Over the years, the term "due diligence" has come to mean different things to different people. Internet rhetoric and misinformation on who pays for this service, has caused borrowers to waste time, effort and eventually loose funding of their projects.



Due diligence is not appraising. Rather, financial due diligence is the process conducted by an objective third-party to identify and quantify the risks and other relevant issues associated with real estate transactions and different type project financing.



The process gives lenders a clear picture, not just of valuation but also of cash flow and cash-flow preservation. It also creates a detailed analysis of each project's ability to perform in both expected and unexpected market and financial conditions. Most importantly, a complete due-diligence report provides solutions to mitigate potential concerns of a lender or rating agency.



However, despite the common misperception among borrowers that a lender's request for this information is merely a precursor to backing away from a deal, lenders recognize there is no such thing as a risk-free transaction. But to have a comfort level with the transaction, they do need to be assured the risks are identified, understood and ultimately mitigated.



For that reason, lenders increasingly are turning to experienced due-diligence providers to confirm a particular asset can cover its debt service and to provide recommendations to address any potential concerns.



At this "Due Diligence" stage, they complete their legal, accounting and business review in order to obtain confirmation of all the information collected in previous steps. Lenders typically require an independent opinion with respect to these assumptions and have you (the client) pay to have a study of these conditions performed.



Should you decide to move ahead with this kind of Funding, the Funding Institution will devote several weeks or months to establish funding. They will not work without compensation and will request a commitment to cover their due diligence expenses and/or on-site visit. Part of the rationale is to protect themselves against possible fictitious statements or documents provided by a client that would destroy a successful funding scenario or a possible decision by the Client to look elsewhere after several weeks or months of work on the part of the Lender.



With cooperation from all parties involved, proper due diligence can ensure both borrowers and lenders achieve their business objectives.





Thank you,

C.H. Russell & P. Duke

Well, nice try Mr. Tobin. We have written proof how UCC is acting. We can also offer, to everybody who is interested, to contact other victims from UCC. Just give us a massage!

We are not anonym like the writer of the reference letter. We can offer more contact's to other UCC victims - the information's they will receive from us are very educational and showing the UCC company like it is - everybody is welcom to receive the truth.. and a list showing the partner's of this bad bussiness company. Don't trust this Company your dream will turn in a night mare

Heinz Hollerith

They filed the following rebuttal to the above Rip-Off Report:



Their email: funding@mindspring.com

Their name: Anthony Tobin

Their phone number: 1-404 255 3699

Their relationship to the company: Owner



Rebuttal:

UNIVERSAL CORPORATE

5825 Glenridge Drive

ATLANTA GA 30342

U.S.A.

Tell: 1 - 404 255 3699



10th October 2001



It is interesting to note that the Mr.Heinz Hollerith has the gift of only relating in his report the facts that could suit his vindictive approach to a matter that only tells half truths.



The facts are that we do facilitate Venture Capital deals, but we do not charge upfront fees. We as a company structure deals up to the point of closing them as have been proven to the State of Georgia's Supreme Court In Atlanta. Where past so called dis-gruntled persons as Mr. Heinz Hollerith that only tell half truths were proven wrong.



Our costs are derived from cost shared by the client and Universal Corporate. These costs are for physical due diligence work any where in the world and the research into verifying documentation of company(ies), the financial and managerial past of principals and the political implications on location of project, this could amount, depending on the size and difficulty of structuring a contract for certain project up too $100 000 USD.



It is not our company's policy to incriminate or badmouth people for the sake of publicity, but if it is important for future clients to obtain the truth they could contact any of our main partners at the address above.



Anthony Tobin

President

Universal Corporate Consultants



Letter Of Reference from Client:



Dear Borrower(s) and/or Broker(s):



I am very intrigued by how many borrowers and brokers who think that there are lenders out there who do not charge up front fees. When I tell them about the up front fees on our loan programs, they say things like:

"Reputable lenders don't charge up front fees". No up front fees, is how it is done in the financial world". "Upon approval of the loan or letter of commitment then my client will pay all the fees". I have been in this business for quite a long time and I have heard this, countless times before.



It appears that there is a "myth" out there. I'm talking about the "Mythical Lender". You know who they are. They are the lender that does not charge the borrower one dime in up front fees to close their loan. I have asked borrowers and brokers countless times, who is the lender that does not charge up front fees and no one has ever given me an answer. The

truth is, that they do not exist. But, maybe you would like to be the one to prove me wrong!



What is actually happening here is quite simple: There are a lot of borrowers with no money for fees who perpetuate this myth, because they want lenders to give them a free ride. Lenders have costs to underwrite a loan, do a site inspection, their own appraisals (not yours) and a lot of other due diligence. There is also considerable cost in blocking or setting aside the money to fund your project. Only about one in ten loans submitted to a lender ever closes.



Should the lender bear all of these costs for the nine borrowers who thought they had a good project, but failed to prove for reasons too numerous to mention that they could repay the loan? Do these borrowers with a dream deserve a free ride?

All reputable lenders charge up front fees that are refunded or credited back at the closing of the loan. What would be the purpose of paying fees at closing, only to have them refunded minutes later?



I have often wondered that if what these borrowers and brokers say is true, why are they contacting me? Why are these borrowers and brokers not contacting that "Mythical Lender" who doesn't charge up front fees? I'll make it real easy for you. Again, I say they do not exist!



Borrowers and brokers have been dreaming, because as I said earlier, they have no money. They may indeed have a great project, but they have no money. Oh sure there are a few borrowers out there who might have money, but they have heard

this "myth" so many times that they think it is true. If it is true, why aren't they closing their loans with this "Mythical Lender?



Please prove me wrong, I beg you! Please tell me who this "Mythical Lender" is and I will send all of my business, through you to them! In fact I predict that if you share with me their secret name, location and phone number, that I will help you become the wealthiest broker on the planet in a

very short period of time!



Sincerely,

John W.

We reported the UCC/Anthony Tobin scam a view weeks ago and we named our Email-addresse. We got contacted from other victims. Don't fly to Atlanta - this company is only trying to reach your pocket, you never will receive a fund. You ending up with answering machine conversations.



Any tips or similar experience, please write me at: