Brad Asks FDIC-OIG To Investigated Missing Bank of Ann Arbor Sheriff's Sale Funds
June 3, 2025
Dear FDIC-OIG,
A local attorney here in Maryland has told me that the unaccounted funds (approximately $250K) from the Bank of Ann Arbor Sheriff’s sale on our three properties in 2017 is a financial crime in the part of the bank and its regulators so I am reporting this to you for investigation. Last year, our accountant discovered the unaccounted funds from the Sheriff’s sale (again approximately $250K) when we were reviewing our taxes and said we need to track the money. Senator Van Hollen has been helping us to try to determine what happened to the monies. This specific matter of the unaccounted funds has NOT been litigated.
Even though the bank’s own reply and documentation to the FDIC confirms there are unaccounted funds (from the ledger the bank sent to the FDIC), the FDIC will not investigate, says the bank does not have to provide the mortgage file and any associated encumbrances and then changes position and says we already received the mortgage file through ligation which we did not and our former attorneys will not reply regarding this matter.
In brief:
- Bank of Ann Arbor executed a non-judicial foreclosure sheriff’s sale on our three properties in Ann Arbor, Michigan (1745 Brian Court, 630 Geddes Ridge Avenue, 620 Geddes Ridge Avenue) and purchased the properties for $1.4 through a credit bid (Exhibit A - Sheriff’s deeds attached). Bank of Ann Arbor Mortgage Acct # 500987.
- The two superseding liens on the public record for the properties (including the $257K Bank of America mortgage on 1745 Brian Court which was used collateral for the 630 Geddes Ridge Bank of Ann Arbor mortgage) were not paid by the Bank of Ann Arbor/at Sheriff’s sale (Exhibit B - 630 Geddes Ridge Bank of Ann Arbor Mortgage attached) Despite this, the Bank of Ann Arbor claims it followed lien position with respect to the Sheriff’s sale.
- Following the Sheriff’s sale and months later, the Bank of Ann Arbor ledger (Exhibit C - Bank of Ann Arbor mortgage ledger attached) only shows a principal payment of $1.15M in February 26, 2018. Our accountant says the money from the Sheriff’s sale should have been credited within days to the bank mortgage ledger following the sale.
- The December 19, 2017 $79,200 principal payment against the bank ledger came from when we sold 1745 Brian Court to Tarick Seifeddine with Tarick paying the funds (Exhibit D- 1745 Brian Court sales paperwork attached). We now understand that sale should never had taken place given that the Bank of Ann Arbor had the Sheriff’s deed for the property (once again the Bank of Ann Arbor never paid the Bank of America first lien position as documented in the attached 1745 Brian Court sales paperwork to Tarick). The Bank of Ann Arbor, American Title Company, and our attorney all green lighted the sale none of which will reply when we ask them how the 1745 Brian Court sale was possible.
- The Bank of Ann Arbor executed a 2018 IRS 1099-C tax form for us (Exhibit E 1099-C form attached) documenting that it cancelled $280K from the $1.5M loan clearly documenting to the federal government that there are unaccounted funds from the $1.4M Sheriff’s sale.
- The same attorney that oversaw the sale of 1745 Brian Court to Tarick Seifeddine is the attorney that according to the Bank of Ann Arbor should have the complete mortgage file; the attorney is not responding and the FDIC is using this as cover not to compel the Bank of Ann Arbor to release a copy of the mortgage of the file to us and associated financial encumbrances.
The Bank of Ann Arbor just wrote the FDIC claiming that “Since no funds were exchanged at the Sherriff’s sale, there cannot be unaccounted funds from the Sherriff’s sale” which make no sense and is refuted by the bank’s own ledger (Exhibit F - FDIC and Bank of Ann Arbor Reply to Senator Van Hollen). The sums simply do not add up as once again the bank ledger only shows a (much later) principal payment of $1.15M out of the $1.4M Sheriff’s sale purchase and the entirely of the $1.4 Sheriff’s sale money has to be accounted for which the bank has not done.
The FDIC is ignoring this basic math and appears to be giving the Bank of Ann Arbor a hall pass at the very least if not covering this up.
Once again, our accountant discovered the unaccounted funds from the bank’s own ledger, the bank is not providing an explanation where all the $1.4M went and is simply making assertions that there are no unaccounted funds and the FDIC is not providing appropriate oversight. As stated above, the issue of the unaccounted funds has not been litigated and at the very least we need to understand what happened to the money for tax purposes (see 1099-C form).
I am requesting a full investigation into this matter. I have additional other documentation and recordings which can be provided upon request. Again, everyone that has looked at this documentation is shocked at the gymnastics the FDIC is going through to provide cover for the Bank of Ann Arbor to withhold basic documentation.
Thank you,
Bradley Foerster, MD PhD
9337 Copenhaver Drive
Potomac, MD 20854
