Tracking The Missing $690K In Loans To Esperanza Unida, Inc.

Adam E. Mata and Manuel "Manny" Pérez

Mata extends his assistance to help solve the mystery of the missing $690,000 in loans to Esperanza Unida, Inc.

By H. Nelson Goodson

August 20, 2014

Mikwaukee, WI - On Wednesday, Adam E. Mata, the former executive director of Esperanza Unida, Inc. in 2005, when contacted by Hispanic News Network U.S.A. (HNNUSA) confirmed that he has extended his assistance to help solve the mystery of the missing $690,000 in loans made to the non-profit organization. Mata is currently a Realtor Associate with Century 21 affiliated out of Wautoma, Wisconsin. Mata had learned that Manuel "Manny" Pérez, the current executive director of Esperanza Unida has claimed that the funds had been missing and no record was available to what happened to that money. 

Mata told HNNUSA, "We tried to stop the bleeding and manage the property. We never got a chance to request federal funds. If we received any they were already in place. I can say for certain we never attempted to get any monies thru a mortgage or refinancing of the building on 611." Mata's associate director in 2005 was Cuauhtemoc "Temo" Rodríguez.
Rodríguez when contacted stated, "If you have a date on when that transaction took place, then you will be able to zero-in on who made that transaction. I do not recall any such transaction. I'm sure you are aware that Board of Directors approve large transactions and are legally responsible."
Mata also stated, "I was the executive director for most of 2005. I don't remember the exact dates. But I have contacted the current Director and offered my assistance in resolving this matter, I am awaiting to hear from him so that I can help the agency resolve this issue. once I get more info. on what exactly is going on I will let you know within the confines of what is best for the agency. I am saddened by this turn of events and hope that this issue gets resolved in the best interest of the agency."

When contacted on Wednesday,  Pérez stated, "I've indicated to Mr. Adam Mata that the $690K in loans or leans against the 611 building were missing and that I do not know where that money went nor that the Economic Development Authority (EDA) and the State Department of Commerce had approved for these loans to be made." The matter of the missing funds have been turned over to the EDA and State Department of Commerce for review, according to Pérez.

The EDA has requested all records from the banking institutions that made the loans and are tracking the financial paper trail of who requested the loans and where the money ended up.

Pérez also confirmed that the building at 611 W. National Ave. has at least five leans totalling almost $700K and it can't be sold until the EDA approves it and the leans are paid. 

In June, the Esperanza Board of Directors from the non-profit organization had accepted an offer from Callan Shultz, of North Pointe Holdings ll LLC and President of Keystone Development from Oshkosh to sell. The Oshkosh developer offered $1.3M and will invest a $7M project to convert the 611 building into a 55-unit apartment complex and will keep some businesses on the first floor. The Board couldn't refuse the offer, since it has been on debt and facing a $1.3M deficit. 

Last year, Esperanza Unida ended with $495,000 in gross revenue and for 2014, Pérez projected about $900,000 in gross revenue. But in terms of net income, Esperanza owes $50,000 to CD, it owes $388,000 to the Internal Revenue Service (IRS) and $70,000 to the Wisconsin Department of Workforce Development (DWD) employment insurance. Pérez had also confirmed that several "inappropriate loans were made during former Richard Oulahan (1978 to 2005) or right after, which a $600,000 loan from M&I Bank was made before former executive director Robert F. Miranda (2005 to 2014) took over, also a loan from Wells Fargo of $100,000 was made and we have no idea where it is. So, the total debt for Esperanza Unida is between $1.2 to $1.3 million.