Court Documents Show Romspen Attorney Kyle Hirsch Admitting He Helped Romspen Commit A Texas Size Foreclosure Fraud!

Rompsen thought foreclosing on a Houston property was going to be an easy. Unfortunately, this simple Texas commercial foreclosure has turned into a two year insane Mexican standoff. It’s all thanks to Romspen attorney Kyle Hirsh. Hirsch’s own testimony also exposes a multi-million dollar shell game Romspen is playing with Romspen executives like Wesley Roitman.

Romspen Drops The Ball On The First Foreclosure

Romspen Attorney Kyle Hirsch — **Dazed and confused Romspen executives dropped The ball on the Galleria Loop foreclosure in 2023.**

First, we need to go back to May 2023. On May 16, 2023, Romspen filed notice to foreclosure on Ali Choudhri and his Galleria Loop holdings. The complaint alleges Choudhri defaulted on his 2019 commercial loan with Romspen. Romspen’s lawyers asked for a foreclosure sale for June 6th in Harris County.

The foreclosure complaint stated Romspen was seeking $21 million. This included the full promissory note amount plus accrued interests and late charges.

However, Choudhri filed for a temporary restraining order against Romspen on June 5, 2023 to block the foreclosure. The court granted the restraining order. The court agreed with Choudhri. Romspen’s lawyers had failed to notify Galleria Loop of the foreclosure.

The restraining order states that Galleria Loop missed payments due to Romspen’s failure to fund improvements. Those improvements were part of the 2019 loan agreement.

As a result of Romspen’s double cross, Galleria Loop went on to incur a significant financial shortfall. This ultimately caused certain tenants to stop paying rent.

Both parties mutually dissolved the restraining order roughly a week later.

Naturally, Romspen denied the breach of contract claims. Romspen contends that it notified Choudhri, specifically his subsidiary Galleria Loop No withdrew the foreclosure.

Romspen Files A New Foreclosure Complaint And Withdraws It

Consequently, Romspen filed a new notice of foreclosure sale on June 14th. This is two days after the dissolution of the emergency restraining order.

Romspen scheduled a foreclosure auction for the property on July 6, 2023. However, Romspen threw in the towel and re-instated the loan to bide their time and bide their time, they did.

Cracked Out Wesley Roitman And Romspen Attorney Kyle Hirsch Turn 2nd Foreclosure Into An Exercise In Foreclosure Fraud 101

On February 6, 2024, TIG Romspen US Master Mortgage LP filed a 2nd foreclosure action.

This time, Romspen supposedly had a buyer. RIC (Lavernia), LLC bought the property on a $100,000 credit bid. This is where things get interesting.

First, RIC (Lavernia) LLC could not buy the property on a credit bid. Why? Well, only the foreclosing party can buy back the property on a credit bid. Third party bidders aren’t allowed to enter credit bids. Remember that because will be important later in this blog.

Second, RIC Lavernia LLC was not incorporated until ten days later. Yes, you read that right. Ten days after it placed a credit bid? So, how could a non-existent company place a credit bid? They can’t. Who filed the the incorporation papers for RIC (Lavernia) LLC with the state of Texas? Romspen’s in-house counsel, Joel Mickelson.

Romspen attorney Kyle Hirsch claimed under oath that TIG Romspen assigned their interest to RIC (Laverna) LLC prior to the foreclosure sale. Romspen has failed to show an paperwork indicating this is true. Why? Well, It’s simply not true and would be legally impermissible.

Did Hirsch And Roitman Commit Perjury?

Hirsch and Romspen General Partner Wesley Roitman both testified under oath that the non-existent RIC (Lavernia) LLC bought the property on a credit bid on February 6, 2024.

Again, RIC (Lavernia) LLC was not created until 10 days later. So, how could a non-existent third party buy a property with a credit bid?

However, during testimony, when asked if RIC (Lavernia) LLC was owned by Romspen, Wesley Roitman testified that RIC (Lavernia) LLC was an “affiliated” company. Roitman’s ambiguous response could literally mean anything.

When asked the same question Monday at a Bankruptcy hearing in Austin, Texas, Romspen lawyer Kyle Hirsch also gave an ambiguous answer, by saying, Romspen owns it, “Indirectly.”

It should also be noted that Kyle Hirsch drafted the post-foreclosure deed to RIC (Lavernia) LLC showing they purchased the property for $100,000.

Romspen Attorney Kyle Hirsch And Wesley Roitman Pull Desperate Bankruptcy Gambit To Hide The Truth

After the fraudulent foreclosure sale on February 6, 2024, Milestone Capital CRE 1, LLC, a senior lienholder that survived February 6th auction, sought to foreclose.

However, on April 24, 2024, RIC (LaVernia), LLC commenced a state court action to stop the foreclosure sale. A Harris County judge DENIED an injunction to stop the sale.

Out of options, RIC (LaVernia), LLC filed bankruptcy. This was a Hail Mary move by Romspen in order to remove it from the state court to federal court.

So why is Romspen spending millions of dollars fighting Choudhri? Romspen doesn’t own RIC (LaVernia) LLC. Even Federal Judge Shad Robinson has stated in court, “If Romspen doesn’t own RIC (LaVernia) LLC and why haven’t they come forward?”

There was an elephant in Judge Robinson’s courtroom Monday that no one wanted to address. Roitman’s screw up exposes a shell game going on at Romspen headquarters in Toronto between Romspen and Wesley Roitman and other Romspen executives. Yet, no one seemed to catch on to it.

So, who really owns RIC (LaVernia) LLC and why are Wesley Roitman and Kyle Hirsch being coy about who the owner is. That’s simple. It’s Delaware based Romspen (ReoMaster II) Holdings, Inc. Who owns and operates Romspen (ReoMaster II) Holdings? Romspen executives, Wesley Roitman, Blake Cassidy, Peter Oelbaum and Joel Mickelson. So, it appears RIC (LaVernia) LLC’s credit bid in the February 6, 2023 foreclosure auction is invalid.