NYMP court hearing set for April 27

NYMP president Wahrsager says company is being mismanaged by receiver
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Thursday, April 21, 2011

FREEPORT, N.Y.—Wayne Wahrsager, president of New York Merchants Protective Co., Inc. (NYMP)—a full-service alarm company here that’s been in his family for more than 100 years—contends the company’s court-appointed receiver is grossly mismanaging the business, causing “staggering waste and losses,” and also trying to fire the person vitally needed to ensure the business survives: Wayne Wahrsager.

“They’re trying to terminate me as of right now,” Wahrsager told Security Systems News today, April 21. He said the lock to his office door at NYMP was changed earlier this week in an apparent attempt to keep him out, but he said he has taken the door off its hinges and continues to come in to work.

In court documents filed this week in federal court, Wahrsager has asked a federal judge to curtail the powers of the receiver, attorney Ronald Friedman, and also stop him from terminating or suspending Wahrsager’s employment. A hearing on the request is set for next week, on April 27.

An attempt to reach Friedman’s attorney for comment was not successful before SSN’s deadline. Friedman has until April 25 to file a response to Wahrsager’s contentions.  Friedman has previously accused Wahrsager of intentionally sabotaging NYMP's business to prevent Bank of America from recovering on a $17.5 million loan to the company.

The court filings are the latest development in a civil lawsuit filed by Bank of America on Jan. 5 of this year against NYMP. Bank of America charged NYMP with breach of contract regarding the loan. Bank of America said then it was owed more than $19.2 million, exclusive of interest, attorney’s fees and expenses, and sought the appointment of a receiver to protect the assets of NYMP.

NYMP, of which Wahrsager is a principal, is a full service alarm company serving New York and New Jersey. Wahrsager told SSN that the loan was originally made by LaSalle Bank, National Association, but that bank was bought by Bank of America. Bank of America filed suit after an attempt by NYMP to work out a forbearance agreement on the loan failed, Wahrsager said.

He told SSN that at the time he agreed to the appointment of a receiver and “kind of welcomed” what he thought would be an “impartial” expert to “fix the problems that needed to be fixed.”

In his court affidavit, he explained: “I viewed the opportunity to work with a professional receiver and his retained professionals as a good faith vehicle to attempt to work with BOA [Bank of America], NYMP’s largest creditor, to resolve NYMP’s outstanding debt.”

But now, Wahrsager contends in the filing, that belief has been “shattered,” and the “actions of the receiver have gone from mismanagement to negligent mismanagement to gross mismanagement.”

Wahrsager is seeking a court hearing on the amount of compensation that the receiver, Friedman, and his agent running NYMP, TRG Associates, Inc., are receiving.

Wahrsager claims in his affidavit that the receiver and his attorney and other professionals have been paid nearly $644,000 between Jan. 5 and March 31 of this year. Yet, Wahrsager contends, “in consideration of these payments the receiver has not restructured or turned around the company, but has instead created a cash shortfall,” which Wahrsager says exceeds $1.2 million.

He told SSN that in four months, the receiver has lost more than $100,000 worth of RMR and about 900 accounts and has made mistakes that include failing to bid for a $1.5 million New York City Department of Education contract NYMP previously had, sending fire techs out to repair burglar alarms, and not hiring sales staff. NYMP sales staff left after the lawsuit was filed, Wahrsager  said.

Wahrsager told SSN that the receiver is trying to fire him because he is shining “a high intensity light on what’s going on.”

Wahrsager’s attorney, Gary Fischoff, in an affidavit said his client is “akin to a whistleblower.” Fischoff said that the receiver has told Wahrsager not to come to the office during business hours and that “he will shortly be fired.”

Fischoff contends the receiver needs to work with Wahrsager “as a team, with Mr. Wahrsager utilizing his years of experience as a manager in the security and fire alarm field while the receiver remains to manage the finances of NYMP, thereby protecting the interest of Bank of America.”

Wayne Wahrsager and NYMP also are defendants in another lawsuit filed Feb. 19 in the same federal court.

That breach of contract lawsuit also names other defendants, including NationWide Digital Monitoring Co., under its corporate name of NationWide Central Station Monitoring Corp., and Aaron Wahrsager, who is president of that company and Wayne Wahrsager’s son.

That lawsuit, filed by the NYMP receiver, Friedman, alleges the defendants transferred “a significant portion” of the assets of NYMP to NationWide “for no consideration in an effort to prevent Bank of America, its secured creditor, from recovering upon its $17,500,000 unpaid loan to NYMP.”

The lawsuit further claims the defendants “intentionally sabotaged, and continue to sabotage to this day, the remaining business of NYMP” to thwart Bank of America and the receiver of NYMP from collecting any judgment.

Aaron and Wayne Wahrsager deny those allegations.

Aaron Wahrsager also has told SSN that the lawsuit has nothing to do with a recent decision by gun manufacturer Smith & Wesson to terminate its licensing agreement with NationWide as of this past March 31.

Both Aaron and Wayne Wahrsager stressed that NationWide has no legal connection to NYMP and was not a guarantor of the $17.5 million loan.

However, Wayne Wahrsager told SSN that he believes the lawsuits “muddied up the waters” regarding the licensing agreement.

 

Comments

I wish I could say that this surprised me, but I have heard that TRG Associates Inc., and more specifically John Brady, have a history of running up ridiculous fees to the detriment of the companies they are working with. I was told that John Brady had a run in with Bill Francis of PriorityOne Security in South Carolina a few years back where Francis had to go into court and have Brady removed from his company after Brady allegedly used Francis' company as his personal piggy bank to the tune of hundreds of thousands of dollars while at the same time not paying the necessary bills to operate the company. It sounds like TRG Associates and John Brady are doing the same thing again here in New York.

It no surprise to see Wayne Wahrsager in this position. He does not see the line between hard business tactics and outright lying. He has groomed his sons Aaron and Eric with the same lack of business ethics. While Mr. Wahrsager reels against TRG and Associates now, he held them up as experts in the industry when it suited his purposes of acquiring Nationwide Digital Monitoring by force.
Wayne and his sons leave a wake of destruction and despair in every business deal they are involved with, looking only to benefit themselves.

It no surprise to see Wayne Wahrsager in this position. He does not see the line between hard business tactics and outright lying. He has groomed his sons Aaron and Eric with the same lack of business ethics. While Mr. Wahrsager reels against TRG and Associates now, he held them up as experts in the industry when it suited his purposes of acquiring Nationwide Digital Monitoring by force.
Wayne and his sons leave a wake of destruction and despair in every business deal they are involved with, looking only to benefit themselves.

It no surprise to see Wayne Wahrsager in this position. He does not see the line between hard business tactics and outright lying. He has groomed his sons Aaron and Eric with the same lack of business ethics. While Mr. Wahrsager reels against TRG and Associates now, he held them up as experts in the industry when it suited his purposes of acquiring Nationwide Digital Monitoring by force.
Wayne and his sons leave a wake of destruction and despair in every business deal they are involved with, looking only to benefit themselves.

The only thing I find surprising about this article is that it took so long for Wahrsager to get caught in a compromising situation. Mr. Wahrsager has gone though his professional with a total disregard for business ethics. He has repeatedly reneged on deals and used legal tactics that would be considered questionable at best. He changes and manipulates facts to suit his needs. When NYMP forced the sale of Nationwide Digital Monitoring Wayne employed the services of TRG and touted them as industry experts. Now that it no longer serves his purposes he is trying to discredit them. Mr. Wahrsager is now training his sons Aaron and Eric in his image, using them as pawns to execute his misdeeds. Wahrsagers mismanagement of NYMP, hiding of assets and destruction of documents are what have put the company in its current situation. His attempts to discredit those working to recover the assets of the company, is just his continuing effort to divert the spotlight from his alleged fraudulent acts.

The only thing I find surprising about this article is that it took so long for Wahrsager to get caught in a compromising situation. Mr. Wahrsager has gone though his professional with a total disregard for business ethics. He has repeatedly reneged on deals and used legal tactics that would be considered questionable at best. He changes and manipulates facts to suit his needs. When NYMP forced the sale of Nationwide Digital Monitoring Wayne employed the services of TRG and touted them as industry experts. Now that it no longer serves his purposes he is trying to discredit them. Mr. Wahrsager is now training his sons Aaron and Eric in his image, using them as pawns to execute his misdeeds. Wahrsagers mismanagement of NYMP, hiding of assets and destruction of documents are what have put the company in its current situation. His attempts to discredit those working to recover the assets of the company, is just his continuing effort to divert the spotlight from his alleged fraudulent acts.

Mr. Brady (I am addressing Mr. Brady directly as it is self evident that he, or his associates, wrote the prior responses as the comments include information that is not readily available to the public):

What I find most troubling is that you breach confidentiality agreements with reckless disregard for the consequences. How can you represent a party in one transaction and then turn on them and breach that confidential relationship? To then use this information for your own personal financial benefit is reprehensible at best. The security industry is a small community and it is quite incredulous that you believe you can operate with no regard for ethical standards or consequences. Perhaps you planned for your engagement at NYMP to be a cash cow, or that you would not need to worry about future engagements, but your actions should be brought to everyone's attention and you should be called to answer for your actions.

You try to paint a target on “the Wahrsagers” and their alleged acts, but fail to take any responsibility for your own actions. The allegations against the Wahrsagers are just that, allegations. Instead of focusing on self-serving and unfounded accusations, let us focus on the facts. Do you dispute that in the last 3 months, during your engagement at New York Merchants Protective Co.(NYMP), TRG Associates (which consists of you and your two sons -- one of which is just out of school and this is his first job) have been paid $400,000 for its services? How do you justify fees that are crippling to NYMP's ability to operate, while your firm is providing no benefit to the company's bottom-line? During this same time period, you have failed to bid contracts which have cost NYMP millions of dollars. You have failed to hire a single salesperson to stop the continued erosion of the NYMP customer base, you have failed to cut any costs (but have considerably added to them), you have failed to properly file tax returns or pay taxes, you have failed to properly keep the books and records of NYMP, and you have failed to install a single job profitably. When all is said and done, and all the smoke clears, the simple fact is that you failed. Instead of acting responsibly by reporting back to Bank of America and telling them that you are simply in over your head (and have no ability to run NYMP), you have decided to run NYMP into the ground and line your own pockets to the detriment of NYMP, Bank of America, and all of NYMP’s employees. Do you dispute that every NYMP employee comes to work every day wondering if that day will be the day that NYMP closes for good? Do you dispute that in the past 3 months, under your direct control, you have created a cash short fall of over $1.5 million dollars?

Hopefully SSN will take this opportunity to contact the companies and people that you have done business with in the past (such as Mr. Francis and the Wahrsagers) and to investigate your reprehensible actions so that the industry is forewarned, and properly informed, before John M. Brady and TRG Associates destroys another company.

I am confident that once the court has an opportunity to read through the papers that have been filed, they will see these suits contain nothing more than baseless accusations against the Wahrsagers and will dismiss them. At that point, Mr. Brady, you will have to answer to the court for your actions.