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HERES ONLY ONE LETTER THE ATTORNEYS WROTE out of 8
WECOSIGN SPENT $ 59,000.00 IN LEGAL FEES WITH THESE ISSUES
MOREOVER AN F RATING WITH THE BBB MEANS NOTHING.........

DOUGLAS W. ABENDROTH
BRENT J. NORTH
VICKI A. NASH 

November 27, 2009

18004-001
CHRISTINE E. CWIERTNY, Counsel
(949) 752-2248
VIA U.S. MAIL
dabendroth@north-nash.com
Mr. Jim Jones
Mr. Myke Kim
Arnell Management Company
949 S Coast Dr # 600 Costa Mesa, CA 92626-7734
Re: WECOSIGN, Inc. / Arnell Property Management Co.

Dear Messrs. Jones and Kim:

We represent WECOSIGN, Inc. (the "Company") in connection with Arnell Management Companys ("Arnell") demands under the Companys "Cash For Keys" program. We have reviewed this matter and write to respond to your demands. As explained below, your demands are without merit. They reflect your persistent failure to read or understand, at even the most basic level, any of the terms of the programs presented to you. Had you read or listened to what was explained, this dispute could have avoided. Nonetheless, the Company, as a show of good faith, is prepared to resolve this matter on an amicable basis on the terms set forth below.
Set forth below is a review the facts and an analysis of the issues, followed by a basis for resolution.

FACTS

Arnel commenced doing business with the Company in or about June 2009. In or about August 2009, the Companys representatives met with you to explain the Rental Payment Guarantee ("RPG") program, which you had failed to understand and completely misconceived at a fundamental level due to your inattentiveness. You admitted that you had failed to read the RPG documents provided you, and it is evident that you did not follow the presentation and explanation provided at the meeting. In the course of that discussion, the Companys representatives also explored with you the possibility of Arnell participating in the Companys "Cash For Keys" program.

Letter to Messrs. Jones and Kim November 25, 2009 Page 2 of 7
As explained to you, the Cash For Keys program was for active "associates" of the Company only; it was made available to associates, as an accommodation by the Company, where it met their needs. The term "associates," as explained to you, refers to owners/agents that are actively referring tenants to the Company on an ongoing basis under the RPG program, not, as you apparently believe, to tenants subject to the RPG. The Cash For Keys program, unlike the RPG, does not require entry of an unlawful detainer judgment and provides for payment of up to two months rent by the Company in exchange for a full release by the owner/agent of all further liability for the remainder of the lease that is under guarantee. You expressed interest in the Cash For Keys program.

On or about September 20, 2009, Mr. Jones advised the Company by email that Arnell was terminating the services of the Company, acknowledging that "[w]e have informed our employees that we are no longer using WECOSIGN as an approved co-signer." In reliance on that communication, the Company closed Arnells account. You were advised of this closure. By its own declaration, therefore, Arnell no longer qualified as an "associate" since it was no longer referring tenants to the Company and made clear it had no intention of doing so now or in the future. You were also subsequently advised that Arnels participation in the Cash For Keys program was terminated for this reason at your request.

Although you removed Arnell from eligibility for the Cash For Keys Program, you nonetheless subsequently made demand upon the Company for payment under that program in the amount of $2,670. The Company denied the claim since Arnel was no longer entitled to submit claims under that program. On November 17, 2009, Mr. Jakubaitis explained to Mr. Jones: "Jim you are no longer an associate by your own choice, so we closed your account. You asked me to do so in an e-mail, so I did so."

Mr. Kim replied by email on November 17 that he believed that Arnel remained an "associate" and was entitled to participate in the Cash For Keys program. It is apparent from Mr. Kims e-mail, however, that he attached his own novel interpretation of the terms of eligibility. Namely, he asserted that the Cash For Keys program merely "relates to residents currently on [the Companys] books." Mr. Kim apparently believes that "associate" refers to tenants subject to the RPG. This interpretation, of course, not only finds no support in the Companys policy, but is expressly contrary to the terms explained to you.

Based on this erroneous understanding, on November 17, 2009, you both posted a complaint (the "First Complaint") about WECOSIGN on the Better Business Bureau ("BBB") that stated:
Apartment Communities beware! They will never pay you if anything happens. Theres always a catch, kind of like an insurance company. Think before you make the mistake of trusting a new company with approving deadbeats like they did with us. We are currently filing a formal complaint because of their refusal to pay us monies owed. Letter to Messrs. Jones and Kim November 25, 2009 Page 3 of 7

The author of the post was identified as "Arnel." You both have acknowledged responsibility for the post. In addition, you both sent e-mails to the Company on November 17 asserting your erroneous interpretation of the terms, and Mr. Kim threatened to file suit in ten (10) days if payment is not received.

On November 18, 2009, a new complaint description (the "Second Complaint") was substituted on the BBB website for the foregoing:

Our company Arnel Management used WECOSIGN [sic] with the agreement specifically set for our residents [sic] called the Cash for Keys program (letter confirming the program was sent to us by email from the vice President Maryann Cerami quote "Here is your Cash for Keys Program"). We currently have 30+ residents under this program. After further review and numerous problems with their underwriting procedures,

it was clear their qualification and underwriting procedures did not match ours resulting in our decision to stop referring to WECOSIGN. After an attempt to collect monies owed from WECOSIGN, we received an email from the CEO stating that they will no longer honor the Cash for Keys Program and pay us monies ow3ed because we are no longer customers.

Again, we CURRENTLY have 7 residents signed up under the WECOSIGN program, just [sic] not referring NEW clients to WECOSIGN which [sic] still makes Arnel Management a current customer.

We expect WECOSIGN to honor their commitment with all of our current residents and honor our statement requesting payment under the Cash for Keys program.

ANALYSIS AND DISCUSSION

A. The Cash for Keys Program Was Properly Terminated As to Arnel By Your Own Declaration, and Your Demand and Complaint Are Totally Unfounded.
As is apparent, Arnels assertion of a claim under the Cash For Keys program is unfounded because you terminated Arnels status as an "associate." As noted above, the term "associate" refers to an owner/agent that refers tenants on an ongoing basis, not tenants subject to the RPG nor an owner/agent that previously referred tenants . The program is designed for and limited to associates only. By removing Arnel from that status you removed Arnel from eligibility for the Cash For Keys program, as you were advised by the Company. These terms were carefully explained to you, and are also set forth in the documents provided to you. Had you attended to the information provided you, it would have been clear to you what the terms were and that your claim was unfounded. Unfortunately, you chose not to read the documents, as you admitted, and also obviously failed to listen to the explanations provided you when Company agents took time to explain them to you. Accordingly, your demand for payment, and your complaint to the BBB, are both wholly unfounded. Letter to Messrs. Jones and Kim November 25, 2009 Page 4 of 7

Although you have been previously advised of these facts, so there is no possible misunderstanding, by this letter WECOSIGN reaffirms that Arnels participation in the Cash For Keys program is and has been terminated for all the reasons set forth above.

B. Resolution of Dispute.
WECOSIGN is justly proud of its extraordinary record of service to clients, its outstanding reputation for service, and its unblemished record of honoring its commitments to clients and owners/agents. The Company is pleased that Arnel decided to use the Companys services, and is confident that Arnel would have found the Companys services to be an outstanding value and benefit had Arnels agents properly understood the programs offered, followed the procedures outlined, and given them a try in good faith. WECOSIGN would have been pleased to continue to provide service to Arnel and its clients but for your failure to read, listen, or understand any of the terms of service.
WECOSIGN does business in good faith and with integrity. Therefore, while WECOSIGN has no obligation to honor your demand for payment under the Cash For Keys program, out of an abundant show of good faith, WECOSIGN is prepared to compromise and resolve this dispute by making the payment demanded in exchange for: (1) the release contemplated by the terms of the Cash For Keys program, namely a full release by the owner/agent of all further liability for the remainder of the lease that is under guarantee; and (2) complete and unconditional withdrawal by Arnel of the complaint on file with the BBB with prejudice. Please direct the BBB to acknowledge to us Arnels unconditional and complete withdrawal of its complaint with prejudice.

WECOSIGN stresses that it is prepared to make this payment solely as an accommodation to Arnel out of appreciation for Arnels owners decision to use the Companys services, and by way of compromise and settlement to avoid further controversy and expense, and not in recognition, either expressly or impliedly, of any validity to your claims and contentions.
Accordingly, enclosed please find a form of release. Please sign the release and return to the undersigned. As soon as we receive the release signed on behalf of Arnel, and receive acknowledgement from the BBB that your complaint to the BBB has been withdrawn, WECOSIGN will forward its check to Arnel in the amount of $2670.
Should Arnel have any future claims or requests, please direct them to the undersigned rather than to the Company. We will review them on behalf of the Company, and the Company will respond as appropriate. Letter to Messrs. Jones and Kim November 25, 2009 Page 5 of 7

C. Defamation and Demand to Cease and Desist
Your two complaints to the BBB are not only unfounded but are reckless and irresponsible at several levels.

First, your reference in your First Complaint to Arnels own residents/tenants as "deadbeats" is unfair and dehumanizing to these persons. The tenant residents whom you derisively refer to as "deadbeats" on a public website are tenants of your own clients. Let me remind you that these are human beings who deserve a second chance in a tough economic climate. They do not deserve to be called names by the management companys agents. It is WECOSIGNs mission to provide that second chance for qualifying tenants, and the Company is very proud of its giving thousands of persons who have been victimized by the current economic downturn that second chance. We imagine that Arnels clients would not appreciate learning that you engage in public name calling of their tenants or that you tell the world that their apartment facilities are occupied by "deadbeats."

Secondly, your suggestion that somehow WECOSIGN is to be faulted because alleged "deadbeats" occupy your client apartment facilities is absurd. Please allow me also to remind you also that these clients whom you dehumanize originated at your apartment facilities (not WECOSIGNs); your appointed managers simply asked WECOSIGN to guarantee their rents on your behalf. Accordingly, we fail to discern any basis to attribute fault to WECOSIGN or any deficiency in its RPG program or its payment procedures when properly utilized, and your assertion to the contrary is false and defamatory.

Third, your two complaints to the BBB are replete with false and libel
ous statements. Among the false statements contained in your complaints, either expressly for by reasonable implication, are the following:

1. That WECOSIGN will "never" pay apartment communities "if anything happens. Theres always a catch, kind of like an insurance company." The fair intendment of this charge is that WECOSIGN regularly fails to honor its contractual commitments. The truth is WECOSIGN has never failed to honor its commitments.

2. That WECOSIGN regularly engages in unfair or deceptive business practices consisting of refusing to pay monies owed on grounds that are pretextual and illegitimate. The truth is that WECOSIGNs business practices are a model of fair business practice.

3. That WECOSIGN is not trustworthy. The truth is that WECOSIGN is utterly trustworthy.
Letter to Messrs. Jones and Kim November 25, 2009 Page 6 of 7

4. That WECOSIGN is responsible for procuring and approving "deadbeats." The truth is that WECOSIGN does not procure tenants, but rather apartment managers of its clients procure tenants and request WECOSIGN to approve them.

5. The WECOSIGN has numerous problems with its "underwriting procedures." In truth, WECOSIGN is demonstrably not an insurer and has no underwriting procedures whatsoever. The further truth is that the alleged "problems" that you encountered were of your own making due to your own negligence in admittedly failing to read the documentation provided you or listening to the explanations provided you orally by the Companys agents.

6. That WECOSIGN willfully refused to pay monies "owed" Arnel. In truth, no obligation was owed, and it was your negligence or intentional refusal to follow the Companys procedures that gave rise to the dispute.
The Company has also learned that you are making oral statements to third parties of and concerning WECOSIGN that are slanderous. Our investigation into your activities is ongoing.
All of the forgoing statements contained in your two complaints to the BBB are false and
defamatory. Nor are they covered by any legal privilege. First, they are known by you both to be false, and are certainly made without reasonable basis for believing them to be true. Second, they were made with malice toward WECOSIGN. From our investigation, it is apparent that you both personally were motivated to scuttle the RPG program and any involvement by WECOSIGN out of your own sense of outsized ego and perception of threat to your own job security. In any case, the malice and anger you harbor toward WECOSIGN is manifest from your own BBC posts and emails, which are replete with hostile statements unprovoked by any statement or action by the Company.
On behalf of WECOSIGN, we hereby demand that you cease and desist from making any further false and defamatory statements, either to the BBB or to any other person or entity, concerning

WECOSIGN. Such statements can cause great and irreparable damage to WECOSIGN, and the Company will not permit this campaign to damage the Company to continue. We hereby demand that you withdraw both complaints from the BBB, in their entirety and unconditionally, on the grounds that after the payment that the Company is making to Arnel no further basis exists for these complaints or posts, and on the grounds that the complaints and posts are false and defamatory.

Please promptly confirm to the undersigned in writing that you will comply with these demands.
We caution you that you are personally liable at law for your defamatory statements and all the damages caused the Company. Indeed, you are liable for general damages and punitive damages irrespective of any actual loss or damage to the Company.

The Company reserves the right to pursue appropriate legal action against you and all other persons and entities against whom it has a remedy for your above-referenced libelous Letter to Messrs. Jones and Kim November 25, 2009 Page 7 of 7
statements, for the slanderous statements you are making to third parties, and for any ongoing future defamatory statements.
Nothing contained herein is intended as, or should be construed to be, a waiver, relinquishment, or limitation upon any right, remedy, or position of WECOSIGN, all of which are hereby expressly reserved.
Sincerely,

Douglas W. Abendroth
of NORTH, NASH & ABENDROTH, LLP

_______________________________________________________________________________

Arnel Management Company
949 South Coast Drive
Costa Mesa, California  92626-7734
 
Attention Jim Jones / Mike Kim /
Posting Traced Back To Your IP
Re Jim Jones Mike Kim
 
Gentlemen
 
The enclosed posting was traced back to your origin I.P. by our computer research department.
Please consider this notice as a ten day cease and desist demand instrument to removal the following
Posting.  Your failure to do so will leave us with no choice but to file a complaint with the UDRP and the
civil authorities to include the Federal Bureau Of Investigation for posting and making Internet threats.
Also you could be liable for denial of Internet service at your facility.
 
POSTING BY IP   64.161.253.167
 
WECOSIGN (by warning [CA]) Posted on: Jan 29, 2010 11:28 AM
Message:

If you are a landlord, stay clear of this company. Their underwriting procedures are a joke, they will place anyone in your unit as long as they receive their fees. We have evicted or the resident has breached the contract in almost 50% of the residents they have approved. Then, they refuse to pay damages or rent because of the fine lines stated in their rental payment guarantee. Do not take a chance on letting a scam company approve YOUR residents. --64.161.253.167
 
Thank You For Your Assistance
 
cc. jkut

----------------------------------FRANK LAURENTE A SYMPATHISER OF DAVID AND STEVEN SERIO-------------
WROTE THE INVESTOR AND COMPLAINED TO THE BBB
 There are only five reports four of then are arnel and one is frank laurente of santa ana somone that i never had three words with.