Servicing

Former Butler & Hosch employees say firm CEO’s statements are “disingenuous”

Attorney in class action suit provides rebuttal to Bob Hosch’s account

Last week, the managing partner and CEO of mortgage banking industry law firm Butler & Hosch, Bob Hosch, spoke out out about the abrupt closure of the firm that carried his name for more than 30 years and the troubling allegations levied against him and the firm.

Among those allegations are a class-action lawsuit filed in U.S. District Court for the Southern District of Florida by former high-level Butler & Hosch employees, stating that Hosch created false billing and invoices to mask the firm’s financial distress.

The employees, Gianna Hillis and Stephen Regal, also claim that fair warning was not given to any of the firm’s employees before the firm closed in May without notice.

Hosch, through his attorney, said that he “vehemently denies the claims, intends to prove that allegations of misconduct against him are false, and is ready to defend the lawsuit.”

Now, the employees have responded to Hosch’s claims, saying that Hosch’s statements are “disingenuous.”

Seth Lerman, the attorney representing Hillis and Regal, also details the numerous attempts to serve Hosch with the lawsuit, in direct contradiction with Hosch’s attorney’s statement that Hosch had not yet been served with the lawsuit.

“Hosch’s statements cited in this article hardly begin to respond, let alone rebut, the clear factual allegations made in the lawsuit filed by Hillis and Regal respectively,” Lerman said in an email to HousingWire.

Lerman also provided a rebuttal to the statement provided by Hosch’s attorney, Michael Tessitore, who said that Hosch was aware of the claims in Hillis and Regal’s lawsuit but that he had not been served in the suit yet.

“Mr. Hosch knew or should have known about the WARN Act lawsuit for quite some time,” Lerman said.

Lerman said that the lawsuit was filed on May 21.

“The lawsuit was served on people at Butler & Hosch’s former office address in Orlando and was received by the firm’s attorneys in the assignment action,” Lerman said.

“The lawsuit was served on Butler & Hosch’s registered agent for service of process,” Lerman continued. “Service was attempted on Mr. Hosch personally in Orlando and at his home in Texas.”

And finally, Lerman said, the papers were delivered to Mr. Hosch’s home in Texas weeks ago.

“The suggestion that Mr. Hosch is less than fully aware of the specific factual allegations levied against him by his former employees is disingenuous,” Lerman said.

Lerman said that his clients are “eagerly awaiting” Hosch’s response to the lawsuit, as well as “the opportunity to depose him at the earliest opportunity to receive his truthful and complete testimony.”

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