One or more members of the press have raised the question whether logging of an investigation against the principal(s) of American Home Funding on March 3, 2010 by the Division that Erin Toll headed, was connected to the events at the legislature on March 2, 2010. It is Erin’s desire to freely and frankly discuss this matter because Erin is a firm believer in open government. Unfortunately, as everyone should know, Erin has been gagged by an order of the Executive Director of the Department of Regulatory Agencies. She is allowed to say “no comment” and that “she has done nothing wrong.” Thus, Erin’s official comment to the press is that “she has done nothing wrong” and “no comment.”
I, however as Erin’s lawyer, want to assure the press and the public that there is no connection between the events at the legislature and the process of opening an investigation. The department and the press are fully aware that in the fall of last year the Division began looking into advertising practices of American Home Funding’s licensees. Contact was made with the company’s principal concerning the company’s advertising. Thus, individuals at the company knew of the concern long before March 2, 2010. There is also documentary evidence that the Division’s concern relating to the advertising did not end with that contact. There is a February 1, 2010 communication from a Division staff member, which the press has or may have, that demonstrates this fact. Ms. Toll, after being alerted to the continued concern, immediately approved a formal investigation. It was Ms. Toll’s expectation that her subordinate staff, who are responsible for logging in the formal investigation, would timely act and perform the administrative task. The fact that the investigation was not logged until March 3, 2010, is not an indication that an investigation was not previously authorized or started. The procedures that were in place within the Division allowed for an investigation to occur without the official logging of an investigation. Given this history it should be obvious that the events that occurred at the legislature on March 2, 2010 had no bearing on the decision to formally investigate. An investigation was called for and clearly was in the public interest. It has been Ms. Toll’s charge from the legislature to stop unfair or misleading practices by mortgage brokers and Ms. Toll has faithfully fulfilled her responsibilities in that regard.
Submitted by Bill Finger, attorney for Erin Toll
