🚨 #RVA Who has been following Michael Hild’s Live Well Financial debacle? 🙋🏽♀️ 💄 has & today I’ll spill the ☕️ since yesterday a Delaware judge ordered the #chesterfield based mortgage company into Chapter 7 liquidation after several creditors filed petitions in early June.
So 1st lets start with the basics...husband & wife developers Michael & Laura Hild should be names many of you already know. They’re known for flipping and redeveloping big chunks of property around RVA, the bulk in #Blackwell area, both residential and commercial spaces.
Many people were initially excited to see the couple come in redeveloping & “investing” in the neighborhood, while others quickly saw the tagteam as something altogether different. I’m not here to argue those sides at the moment b/c the chips have already fallen where they may...
In 2005 Michael Hild solely founded Live Well Financial, a mortgage lender in Chesterfield. Last year it was ranked no. 7 among top reverse mortgage lenders by volume...Church Hill Ventures was founded by Michael in 2014 but is “owned & managed” now by Laura, his wife.
Church Hill Ventures is an “opportunity fund” that has primarily invested in the Manchester area in both residential & commercial such as Dogtown Brewing, Hot Diggity Donuts, Dogtown Apts, Butter Bean Market, & under construction The Lighthouse & The Meade Church renovation...
...both of which are rumored to be currently halted b/c retainage for Dogtown wasn’t paid & are on the verge of liens. In 2018 contractors filed liens for work at Hot Diggity Donuts. The ☕️ is VA Credit Union defaulted on the original loan until more guarantees were added.
Either way the money is funny or they just don’t pay. And it would seem that this has been common practice for the Hilds or sue the vendors in submission. And apparently tenants are treated with the same abandon. Earlier this year a disgruntled tenant sued Laura directly.
It’s unclear why the deliberate split between the ownership of the two companies initially happened but the finances might be the loud blaring smoke detector. After being ranked in top 10 in reverse mortgages just last year, 3 creditors of Live Well filed petitions June 2019
Flagstar Bank reporting being owned $82 mil after interest & expenses. Mirae Asset reported no less than $22 mil. Industrial & Commercial Bank of China reported no less than $40 mil. Hild is countering that the suit be dropped, but yesterday a bankruptcy judge ordered otherwise.
On May 3 without notice, Live Well laid off 103 employees and ceased business operations. By letter, the company cited the abrupt move to “sudden & unexpected developments in the market for certain financial assets the company uses as collateral...” via @RTDNEWS 
Live Well’s former loan account manager filed a federal suit seeking her lost wages & class action status for the other employees claiming the company violated the WARN Act, which requires companies w/ large # of employees to supply a 60 notice of mass layoff or pay for 60 days.
Concerned with preserving the assets for orderly liquidation, the creditors asked for an involuntary bankruptcy, a Delaware Bankruptcy judge agreed...appointing an interim trustee on Monday after the company’s origination & servicing rights were terminated on June 26.
Earlier in the month the court ordered Live Well officials not to destroy docs or take action without court approval after Hild accused the creditors of providing false & misleading statements in their joint petition seeking $130 mil.
Meanwhile several media sources have reported Live Well is under investigation by the bank fraud division of FBI & U.S. Securities & Exchanges Commission, stated in court docs by all 3 creditors, who are cooperating. So this is far from over it would seem.
With Live Well in court ordered Chapter 7 bankruptcy, the odd and forced distinction in ownership over Church Hill Ventures makes a bit more sense. Slumming payments & construction halted, CHV might be in its own trouble, assets too if the bankruptcy fingers reach far enough.
In the meantime, let’s see where karma lands the Hilds. Laura is currently the Richmond Principle-Dir of Health Interiors at HKS.
Here’s some articles for the full details... housingwire.com/articles/49028…
Hey folks! We got some updates! If you haven’t heard already Hilds has been arrested and charged for bond fraud. 💄 richmond.com/business/local…
Michael C. Hild, founder & CEO of the now defunct Live Well Financial, has been arrested by federal officials & charged with five criminal counts in a $140 million bond fraud scheme.
In a separate action, the U.S. Securities & Exchange Commission filed civil charges against Hild.
In a separate action, the U.S. Securities & Exchange Commission filed civil charges against Hild.
"This allegedly enabled Live Well to borrow $ well over the value of the collateral it put up..Hild used these ill-gotten funds to gain control of the company & increase his own compensation by nearly 700%, while exposing lenders cumulatively to $65 million in unsecured loans”
In addition to charges against Hild, the federal government also charged Eric Rohr, the company's former chief financial officer, and Darren Stumberger, Live Well's former head trader. Both are cooperating with the investigation and pled guilty.
“Hild, 44, is charged with five counts: one count of conspiracy to commit securities fraud; one count of conspiracy to commit wire and bank fraud; one count of securities fraud; one count of wire fraud; and one count of bank fraud.”
Now let’s talk community impact. Dogtown Brewery Co. just opened, Church Hill Ventures also owns several other businesses in the corridor that have been rumored to be understaffed. Church Hill Ventures also owns several residential properties in the area.
Over the past few months I’ve spoken to several employees that were employed in the various restaurants, Live Well, or Church Ventures (sometimes both at once) working directly under Michael and Laura in various roles of involvement. I also spoke with former and current tenants.
Some folks found me after the thread, others were directed to reach out by community members. Regardless of how they reached me to share their each and every one of them shared a mutual fear of retribution based on their experiences either working for or renting from the Hilds.
The common thread that tied all their stories together: “they don’t care about anyone, only care about the money...I’ve never met more disrespectful, caring folks...” This same vein was clear in a recent article on tenants looking to break their lease wtvr.com/2019/07/23/cou…
One tenant sued Laura Hild personally over rent that the tenant was told to pay after not being able reside in the property when raw sewage backed up in the house close to month after moving in. Holes in the floor. Leaking windows. A long list of ongoing complaints.
Pages and pages of emails. Little to no response. Sometimes things were addressed, often times they were ignored. Many times the tenant says the property manager would come to fix the issue himself against the will of the Hilds. Employees told stories about cussing and yelling.
Court doc searches are riddled with leans filed against the Hilds by contractors seeking promised pay fr work and materials on almost every development in their portfolio. When the Hilds began acquiring properties in Manchester, several community voices spoke up about them.
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