Richard Hoffman
My name is Richard Hoffman. I am a lender who provides money to credit-challenged individuals who are not able to get funding elsewhere. In return for the money, people provide property as security. I am a high-risk lender, who charges substantial fees and interest rates that correspond to the risk. The bulk of my experience: I am the best friend of these people when I give them the money, but lose that status when it is time to pay back the loan.  
I am writing today in regards to numerous media articles and news releases that came out in mid-June of 2010 alleging I had taken advantage of elderly people in a private 2nd mortgage I had given to them. The information the media provided was skewed – to say the least. These people took my hard earned money for two years. Then – when they were asked to make payments – they paid zero. After 2.5 years of my efforts to come to an amicable solution, they still paid nothing. After an exhaustive attempt to get the clients refinanced elsewhere – and continuing to try to collect payments from them – they still refused to pay.

Spare me the Pity Party for anyone claiming to be a “victim” – people who are repeatedly told exactly what they are getting into. In this instance, the details were explained to them by two different lawyers – lawyers who they drove themselves to see. These people signed official disclosure statements that clearly outlined the fees and interest – all of which were under the legal limit – as well as official mortgage documents clearly explaining the same. Those same lawyers said that these clients knew exactly what financial commitment they were embarking upon. Yet, after the money was spent, they made every effort to get out of the contract – stooping so low as to do and say anything to get out of the financial obligation. Even going so far as to say they did not know what they were doing.
I charge accordingly for the high-risk financial ventures I take on. I do not cry to anyone about the massive losses I am subjected to when the real estate market goes down or when my clients do not meet their contractual obligations. It is a free market, and into it I welcome anyone to charge less for the same amount of risk. Perhaps the person whose motives should be questioned here, is the wife 20+ years younger than the husband? Perhaps it should be known that a historical title search shows this couple has many previous private lenders. These lenders also had high effective rates of interest, so the couples’ argument that they didn’t know what they were doing just doesn’t hold water. The historical title search also shows ownership being switched back and forth from husband to wife – why? It would appear these people know exactly what they are doing, and how to use their age and alleged incompetence to their advantage.
Calgary City Police – Shame on you for sensationalizing this story and creating the impression that I was some type of fugitive on the run. During this controversial time – I was either at work, or my home. Perhaps you should continue doing security and leave the financial figures to people with the competency to understand them. Amazingly, the lawyers who drew up the documents and gave me advice for this mortgage deal were never brought up in the media. Point of interest: one law firm’s insurance company has given me a cheque to keep my mouth shut and I am in the process of suing the other lawfirm.
I have beaten the outlandish charges against me. That’s right – NOT GUILTY of any criminal charge. That is after a thorough investigation done by the crown on all business dealings I have done since 1997. I just hope this writing gives comfort to other people who have been sensationalized by the media. They are not the only ones who have been unfairly convicted of being guilty – based on one side of the story – rather than being presumed innocent until proven guilty. I hope the media thinks twice before publicizing one-sided sensationalized stories in the future – there will be a backlash.

Sincerely,


Richard Hoffman