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00:00:01,900 --> 00:00:06,000
In this episode of American Greed... Run
away, buddy boy, run away.

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00:00:06,220 --> 00:00:10,780
Leave it to the real men. Scott Minogat
is a trash -talking star... Go!

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00:00:11,180 --> 00:00:14,180
...of a fix -it -and -flip -it TV show.

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00:00:14,800 --> 00:00:16,700
I love buying properties in this area.

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Rentals equal cash flow. Cash flow makes
me very happy.

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Minogat parlays his reality fame into a
house -flipping -and -furniture -store

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00:00:25,520 --> 00:00:28,000
empire in the Valley of the Sun.

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Where Scott Menaged always comes first.

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He was an arrogant person, very cushy,
very demanding.

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He was having a lot of fun, taking a lot
of money, jetting around, living a high

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lifestyle, gambling in Vegas, flying
over to Israel. He was enjoying himself.

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But when Menaged's $30 million lie
begins to unravel, his unwitting partner

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up dead.

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Scott Menage described Denny Chittick's
death as a gift. He said, it's a dead

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00:00:58,130 --> 00:00:59,610
man's word against mine.

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Set in Phoenix, Arizona, Property Wars
premieres on the Discovery Network in

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2012.

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51 ,000. Let's go. This is a strategy
game. I'm going to do whatever it takes

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defend my territory.

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This 30 -episode series is a snapshot in

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time, capturing the aftermath of the
financial crisis and the housing market

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free fall.

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Arguably, no other city got hit as hard
as Phoenix.

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It was a really, really...

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Crazy time. It was scary.

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Doug Hopkins has been a fixture in the
Phoenix area real estate market for more

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than 20 years.

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All of a sudden, poof, the floor just
fell out. And houses that were

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bought for $300 ,000 were worth a third
of that, $100 ,000.

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What the lenders did, because nobody
would buy these, they wound up

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the notes substantially to make it so
that...

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People at the courthouse steps would buy
them so banks wouldn't have to take

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them in as inventory.

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And so we would go down and bid on them.

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The massive number of properties, quick
turnaround, and daily bidding wars

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between potential buyers makes for a
ripe reality TV show.

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Here I come, baby.

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And Property Wars producers want Doug
Hopkins on the show.

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But at first, Hopkins has reservations
of how it would affect his bottom line.

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I didn't want to be a part of it. At the
time, I was the biggest investor in

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foreclosures in Arizona. I didn't want
anybody knowing what was going on. But I

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took a look at it. I woke up one morning
and I decided, you know, what the heck,

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I'll give it a shot.

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Hopkins appears on the show with a
varied crew of house flippers and

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all looking to cash in on an
unprecedented foreclosure market.

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We would bid every single day. It's a
live auction. When there's thousands of

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dollars on the line, it tends to create
some animosity, tends to create some

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enemies. There was a lot of my
competitors that I really liked, and

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00:03:23,220 --> 00:03:25,420
some that I didn't like very much at
all.

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One of his biggest competitors and co
-star is Yum Top Scott Monaghan,

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a New York transplant who was making a
name for himself flipping houses in

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Phoenix.

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I didn't know who Scott was at the time.
He was mostly bought houses on the west

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side of town. I bought some on the east
side of town. And that kind of changed

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once the cameras started rolling. From
the beginning, Scott Monaghan rubs Doug

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Hopkins the wrong way.

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The biggest problem I see in the East
Valley is called Doug Hopkins.

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Doug Hopkins is always used to getting
his way in the East Valley.

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No more. I'm coming in and I'm taking
him down.

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I've been buying and selling real estate
for almost 20 years. I'm the biggest

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buyer of trustee sale.

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Though it may seem like a made -for -TV
feud, Hopkins says the bad blood is

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real. Scott and I never got along.

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We were civil for the most part because
we had to spend time together filming

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every day. No, he was not a person that
I would call a friend. He was not a

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person I would hang out with. He was not
a person I would go have a beer with.

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He was an arrogant person, very cushy,
very demanding, didn't treat people very

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well. He thought everything was all
about him. And the feeling appears to be

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mutual.

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Let him stay on his neck of the woods
and I'll stay in mine and we're good to

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go.

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I'm not looking to go to dinner with the
guy anytime soon.

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There was actually a couple of episodes
that we almost came to blows. And that

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was real.

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Scott keeps pushing me up, and I'm way
past my number. But there's no way I'm

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letting him walk away with this one. Go
300 more.

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149. I hate losing this jackass. Forget
it. Forget it. I'm out.

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Timber!

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I really wanted this house today. And to
lose to Scott, of all people...

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That weasel better watch his mouth.

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You know, he said some comments that
really, really aggravated me. And

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you just get fed up with the antics, and
I'd had enough that day.

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You're a freaking bully is what you are.
You try to bully people around. What

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bully? You ain't gonna freaking bully me
around. What bully? Get off my

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property.

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Get off my property. I ain't freaking
leaving.

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It's very rare that I can get that
worked up. I can get mad, but it's very,

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rare. I haven't been in a fight since.

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High school, and I was ready to go a
couple times, and it's probably a good

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thing that some of the producers stepped
in.

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Go! Go, get out of here! Get out of
here, jackass.

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Despite all of his on -screen antics, by
2014, Manogat's TV personality

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has helped him go from outsider to big
-time Arizona real estate mogul.

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Scott Manogat had a pretty good
reputation, and he had a big reputation.

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Scott was on TV. He was a star of a
reality TV show.

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And a lot of people watched that show
and he was a local star.

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You know, Scott was always bragging
about all the money that he was making

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Vegas. He would go up to Vegas and he
would come back and he would describe

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duffer bags full of cash.

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I know he bought big fancy houses to
live in. He had new cars all the time

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you know, just did his thing.

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Before Menaged was an infamous, fast
-talking man about town, he was born

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Scott Menaged to an Israeli -American
family in New York.

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Around the late 1990s, he heads to
Arizona to try his hand at real estate

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catches the eye of Eric Weinbrenner,
himself a rising star in the foreclosure

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business.

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I met Scott in 2002, 2003 through real
estate.

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He was a very aggressive person that
used to fix and flip.

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And in this line of business, you need
someone that's aggressive. And then also

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his dad had capital. So I'm like, all
right, it's kind of like a win -win, an

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aggressive, hardworking person with a
dad with capital because we could always

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utilize funds.

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I decided to have him come into my
office and, in a sense, partner up with

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He was a super aggressive person.

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On average, we're buying 10, 12 houses a
day. We're making great money in 2008,

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9, 10, 11.

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According to Weinbrenner, he and
Monaghan are each clearing more than a

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dollars a year.

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And their profits are only growing.

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That's why the falling out that leads to
the end of their business relationship

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is so odd.

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It all comes down to a $100 bet.

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Scott and I always worked well together
and trusted him to a point, obviously

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over -embellished stories, things of
that nature, but he said he was going to

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hike Camelback.

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Camelback Mountain is known as a
strenuous and potentially dangerous

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especially in desert heat that pushes
over 100 degrees.

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And Weinbrenner thinks it's an easy bet.

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After all, Scott Monaghan's idea of
exercise...

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seems to be screaming into a phone.

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And I'm like, oh, okay, I bet you can't
make it to the top. And he's like, oh,

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no, no, no, I can't, I can't, I can't.
I'm like, oh, all right, I'll bet you

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$100.

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So, therefore, he, the next day, I said,
oh, did you hike Camelback? And he

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goes, oh, yeah, yeah, yeah. I said, did
you see my house down below?

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He goes, yeah, I saw it. It's beautiful
up there. I'm handing him $100 and went

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on my way.

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Later, Weinbrenner runs into an employee
who was with Scott Monaghan on his

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supposed hike.

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to the top of Camelback Mountain and
asked him if Scott made it.

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I'm like, Matt, I'm just curious if
Scott actually made it to the top. He

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00:09:02,380 --> 00:09:05,990
um, well, you are my boss. No, he didn't
even make it a quarter of the way up.

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I'm like, okay.

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00:09:08,080 --> 00:09:12,979
Weinbrenner stews on the alleged lie for
a couple of weeks, then confronts

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Menaged. I'm like, excuse me, I
understand that you didn't hide

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you stole $100 from me.

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And he goes, no, no, no, no, I paid you
on one of the deals.

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And I'm like, no, I don't think you did.
I'm like, which property? He goes, oh,

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I can't remember.

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Therefore, I said, we're done.

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Get out of my office, pack your crap,
we're done.

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I said, we run way too much money in and
out of these accounts, anywhere from

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$12, $15, $16 million a month.

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If you're willing to steal $100 from me,
you're willing to steal $100 ,000.

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It was the last time Weinbrenner worked
with Scott Monaghan.

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And while he may have unknowingly dodged
a very expensive bullet, others are not

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so lucky.

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Next on American Greed, Scott Monaghan
wants to build a house -living empire of

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00:10:00,930 --> 00:10:01,980
his own.

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All he needs is millions of dollars in
cash up front.

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00:10:07,530 --> 00:10:08,910
What could go wrong?

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I looked over at my wife.

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I said, well, I hope we don't end up on
American Greed.

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You ready, doggie boy? Here I come.

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The Monaghan Express coming right into
the East Valley.

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00:10:37,390 --> 00:10:41,849
Scott Monaghan's hit reality show,
Property Wars, is picked up for a second

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season of bidding, buying, and fighting
over the Phoenix area foreclosure

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market.

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And by 2014, Monaghan wants to up his
game.

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Just before the bid, Scott rolls up like
he already owns the place.

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What a beauty!

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That's so typical.

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It's a great property. What are you
talking about? He's so freaking cocky.

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00:11:03,390 --> 00:11:06,640
thinks he can just show up and make
money. It doesn't work that way.

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00:11:07,190 --> 00:11:12,489
Monaghan's main rival and Property Wars
co -star, Doug Hopkins, is buying up as

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00:11:12,490 --> 00:11:14,330
many properties as he can.

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00:11:14,790 --> 00:11:20,749
There was brand new houses that were
just built in 2005, 2006 that sold for

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00:11:20,750 --> 00:11:25,810
,000 and $400 ,000 that we were buying
at the courthouse steps for $100 ,000.

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And I'm sitting there going, this is
insane.

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00:11:29,091 --> 00:11:32,369
I've got to buy as many of these as
possible. I've got to figure out a way

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00:11:32,370 --> 00:11:36,269
buy as many of these as possible. At our
peak, my company was buying between 200

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00:11:36,270 --> 00:11:38,050
and 300 properties a month.

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00:11:39,030 --> 00:11:43,730
Scott Monaghan wants to dethrone Hopkins
as Arizona's foreclosure king.

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00:11:45,230 --> 00:11:51,290
In order to win big, Monaghan needs
cash, a lot of cash.

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For this, he turns to a man named Denny
Chittick.

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00:11:55,530 --> 00:11:59,989
Denny Chittick was a local, what we call
a hard money lender. A lot of these

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00:11:59,990 --> 00:12:02,489
houses, they have to be paid for the
next business day.

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00:12:02,490 --> 00:12:07,730
Hard money lenders can provide cash
quickly and to higher risk borrowers.

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00:12:08,310 --> 00:12:13,929
In return, they collect interest rates
of 18, even 20%.

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00:12:13,930 --> 00:12:20,409
Denny Chittick is the sole owner and
operator of Densco, a lending company he

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00:12:20,410 --> 00:12:23,690
started up after making money in the
sale of a tech company.

192
00:12:24,380 --> 00:12:29,559
and then he was a he was a very nice guy
very good good dude i did a lot of

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00:12:29,560 --> 00:12:33,999
loans with him myself and i had a lot of
my clients do loans with him i bet i

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00:12:34,000 --> 00:12:39,939
borrowed anywhere from 80 to 100 million
dollars back and forth from him and it

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00:12:39,940 --> 00:12:45,379
always handed on a basically on a
handshake or very very organized man

196
00:12:45,380 --> 00:12:48,210
organized always looked up to him as a
good businessman

197
00:12:48,960 --> 00:12:53,819
Scott Menaged built a very personal
relationship with Denny Chittick. And

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00:12:53,820 --> 00:12:55,620
Menaged was somewhat of a celebrity.

199
00:12:55,700 --> 00:13:00,819
So he was somewhat of a local star. I
think the local star aspect plus just

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00:13:00,820 --> 00:13:04,379
interpersonal relationship, spending a
lot of time together, having coffee and

201
00:13:04,380 --> 00:13:08,859
drinks and being in each other's homes,
built up a bond of trust between Denny

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00:13:08,860 --> 00:13:10,240
Chittick and Scott Menaged.

203
00:13:10,520 --> 00:13:15,879
Densko funds loans with the help of its
investors, a group that has grown to

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00:13:15,880 --> 00:13:18,400
about 100 very close family and friends.

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00:13:18,830 --> 00:13:24,409
who all come in with personal
connections and includes Denny

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00:13:24,410 --> 00:13:25,460
parents.

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00:13:26,630 --> 00:13:28,370
Denny Chittick knew his investors.

208
00:13:28,530 --> 00:13:32,989
It was his family members. It was his
friends and people he'd met throughout

209
00:13:32,990 --> 00:13:37,609
life. Everyone, he knew them all, and
they all knew him, and they trusted him

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00:13:37,610 --> 00:13:39,210
completely with their money.

211
00:13:40,070 --> 00:13:45,809
Anthony Burdett has been a CPA in El
Paso, Texas, for more than 40 years and

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00:13:45,810 --> 00:13:46,860
nearing retirement.

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00:13:48,080 --> 00:13:53,919
His stock portfolio takes a big hit
during the financial downturn of 2008,

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00:13:53,920 --> 00:13:58,339
he's looking to shore it up when a
friend tells him about an alternative

215
00:13:58,340 --> 00:13:59,960
investment opportunity.

216
00:14:00,720 --> 00:14:07,679
In our talk, he just said, Tony, I've
invested in a hard money lender out of

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00:14:07,680 --> 00:14:10,240
Arizona. He said, I'd like you to check
it out.

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00:14:10,440 --> 00:14:11,800
And he gave me the website.

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00:14:12,180 --> 00:14:14,540
The money lender is Denny Chittick.

220
00:14:15,410 --> 00:14:18,420
Burdett's friend went to college with
Chittick's parents.

221
00:14:18,990 --> 00:14:23,929
I really was impressed with them. They
were just very good, salt -of -the

222
00:14:23,930 --> 00:14:29,189
people. And so I said, hmm, okay, the
apple doesn't fall far from the tree.

223
00:14:29,190 --> 00:14:33,649
so I did a lot of due diligence, a lot
of homework. I really got in there and

224
00:14:33,650 --> 00:14:34,700
drilled down.

225
00:14:34,750 --> 00:14:37,510
Burdett finds 10 years of stable
returns.

226
00:14:38,690 --> 00:14:44,489
Densko's key promise is that every loan
Chittick makes is secured by the first

227
00:14:44,490 --> 00:14:46,710
deed of trust of the property purchased.

228
00:14:47,630 --> 00:14:53,089
Meaning, if something goes wrong, he can
be the first to foreclose on the

229
00:14:53,090 --> 00:14:54,650
property to get his money back.

230
00:14:55,190 --> 00:15:00,710
That first deed of trust holds all the
marbles. That's where your security is.

231
00:15:01,050 --> 00:15:06,809
Tony Burdette has spent his life working
and saving, and he wants to enjoy his

232
00:15:06,810 --> 00:15:12,199
retirement. My wife and I, I guess the
word is frugal, but we look for value on

233
00:15:12,200 --> 00:15:17,159
everything. And we didn't take some
vacations because we wanted to, you

234
00:15:17,160 --> 00:15:20,579
have a good, comfortable retirement. We
got the kids through school.

235
00:15:20,580 --> 00:15:21,630
That part was done.

236
00:15:22,040 --> 00:15:26,359
After deep diving into the financials,
Burdett believes that the Densko

237
00:15:26,360 --> 00:15:29,540
investment is a safe path to reaching
his goals.

238
00:15:29,880 --> 00:15:34,420
And he invests $400 ,000 with Denny
Chedick.

239
00:15:36,300 --> 00:15:42,919
By 2013, Scott Monaghan is one of
Densko's biggest borrowers. He claims to

240
00:15:42,920 --> 00:15:47,439
purchasing tens of millions of dollars
worth of foreclosed properties with

241
00:15:47,440 --> 00:15:48,580
Densko's cash.

242
00:15:50,580 --> 00:15:56,540
Properties such as this one at 771 West
Marlette Avenue in Glendale, Arizona.

243
00:15:58,420 --> 00:16:02,380
Monaghan claims he bought this four
-bedroom foreclosure at auction.

244
00:16:03,140 --> 00:16:10,139
secures a loan from Chittick for $120
,000 and puts Densko as the beneficiary

245
00:16:10,140 --> 00:16:11,340
the first deed of trust.

246
00:16:12,460 --> 00:16:17,839
He then either flips or rents the
properties at a pretty profit in order

247
00:16:17,840 --> 00:16:19,340
back his high -interest loans.

248
00:16:21,040 --> 00:16:23,300
Everyone seems to be making money.

249
00:16:23,760 --> 00:16:25,780
Everyone seems happy.

250
00:16:26,540 --> 00:16:31,380
We had visions of extended vacations
and, you know, having...

251
00:16:31,770 --> 00:16:35,889
a new car, just silly things like that.
But still, it's things that, you know,

252
00:16:35,890 --> 00:16:41,289
are important to you. After all, Densko
has a 10 -year track record of smart

253
00:16:41,290 --> 00:16:46,010
business decisions and steady returns,
even in a volatile housing market.

254
00:16:48,110 --> 00:16:52,010
But that track record is about to come
to a screeching stop.

255
00:16:53,550 --> 00:16:59,069
Next on American Greed, Densko's number
one borrower turns out to be its number

256
00:16:59,070 --> 00:17:00,120
one enemy.

257
00:17:00,750 --> 00:17:05,588
These businesses operate a lot on trust,
and they ran very well for Denny

258
00:17:05,589 --> 00:17:09,619
Chittick for quite a long time until,
unfortunately for him and his investors,

259
00:17:09,730 --> 00:17:11,270
he met Scott Monaghan.

260
00:17:26,920 --> 00:17:31,599
Phoenix area house flipper Scott
Monaghan is living the life of a real

261
00:17:31,600 --> 00:17:32,650
tycoon.

262
00:17:33,300 --> 00:17:36,660
Kicking back at his multi -million
dollar Arizona mansion.

263
00:17:37,400 --> 00:17:43,359
Complete with a lazy river meandering
through a lush backyard oasis in the

264
00:17:43,360 --> 00:17:44,410
desert.

265
00:17:44,680 --> 00:17:49,120
The property war star and foreclosure
king is on top of the world.

266
00:17:50,300 --> 00:17:54,220
Scott Monaghan appeared to be a very
successful businessman. He was a star.

267
00:17:54,760 --> 00:17:58,460
of a reality TV show, and he was a big,
big deal.

268
00:17:58,720 --> 00:18:01,310
Guys, I'm on a totally different level
than you two.

269
00:18:01,980 --> 00:18:06,819
Monaghan's foreclosure deals are not
only making him a rich man, but are

270
00:18:06,820 --> 00:18:11,419
providing huge returns to his lender,
Denny Chittick, and his group of

271
00:18:11,420 --> 00:18:12,470
investors.

272
00:18:12,780 --> 00:18:18,059
They trusted Scott, and Scott needed
more and more money, and he would go to

273
00:18:18,060 --> 00:18:21,419
buddy, Denny Chittick, and say, Denny, I
need some more money, and Denny would

274
00:18:21,420 --> 00:18:26,139
go to his friends and his family and his
business partners and say, I need some

275
00:18:26,140 --> 00:18:30,019
more money, and he would funnel millions
of dollars more to Scott Monaghan so

276
00:18:30,020 --> 00:18:33,800
Scott could supposedly continue to buy
more real estate.

277
00:18:34,860 --> 00:18:39,659
Scott Monaghan seems to think he's too
big to be confined to the house

278
00:18:39,660 --> 00:18:45,179
business. and decides to open several
discount furniture stores throughout the

279
00:18:45,180 --> 00:18:46,230
Phoenix area.

280
00:18:46,920 --> 00:18:49,990
Menaged's former partner, Eric
Weinbrenner, takes notice.

281
00:18:50,640 --> 00:18:52,930
I'm like, where is he getting all this
money?

282
00:18:52,931 --> 00:18:56,479
Like, honestly, I would sit back and go,
what the heck is going on here?

283
00:18:56,480 --> 00:19:01,399
But I'm like, hey, and I actually
started talking to him again in 2015, I

284
00:19:01,400 --> 00:19:05,339
believe. He goes, the furniture
business. He goes, well, I'll sell a $1

285
00:19:05,340 --> 00:19:07,000
couch and I'll make $800.

286
00:19:07,830 --> 00:19:11,380
He goes, you're buying a $150 ,000 house
and you're only making $1 ,500.

287
00:19:11,510 --> 00:19:13,310
All you have to do is sell two couches.

288
00:19:13,790 --> 00:19:15,570
And I'm like, oh, maybe he's right.

289
00:19:15,571 --> 00:19:18,989
He was always bragging about how much
money he made, whether it was through

290
00:19:18,990 --> 00:19:22,709
buying homes at auction, whether it was
all the money he made at his furniture

291
00:19:22,710 --> 00:19:25,870
store, or he was bragging about all the
money he made in Vegas.

292
00:19:25,871 --> 00:19:29,769
I had no reason to not take him for a
person at his work, that he was making a

293
00:19:29,770 --> 00:19:32,969
lot of money. He was buying cars, he was
buying houses, he was living a lavish

294
00:19:32,970 --> 00:19:37,129
lifestyle. He was talking about all the
high -end restaurants that he had dinner

295
00:19:37,130 --> 00:19:39,240
at the night before and that sort of
thing.

296
00:19:39,970 --> 00:19:41,830
You know, I knew he was spending money.

297
00:19:41,831 --> 00:19:45,249
He started marketing his furniture
company more and more. I kept seeing

298
00:19:45,250 --> 00:19:47,780
billboards. I'm like, wow, that guy's
doing great.

299
00:19:48,730 --> 00:19:51,250
Scott certainly seems to be doing great.

300
00:19:52,210 --> 00:19:54,750
Until the end of 2013, that is.

301
00:19:55,310 --> 00:19:59,490
When Menaged tells his lender, Denny
Chittick, we have a problem.

302
00:20:00,570 --> 00:20:05,569
Scott Menaged had actually come to him
and said, my cousin had come in and

303
00:20:05,570 --> 00:20:09,410
started to run the business, and my
cousin had run off with some of the

304
00:20:09,411 --> 00:20:13,409
So a lot of this money that was supposed
to be invested in real estate just

305
00:20:13,410 --> 00:20:15,030
wasn't. It was gone.

306
00:20:16,350 --> 00:20:19,210
Menaged owes Densko $5 million.

307
00:20:20,130 --> 00:20:22,290
He assures Chittick he can make it back.

308
00:20:22,490 --> 00:20:23,690
He just needs more time.

309
00:20:24,300 --> 00:20:27,200
And more cash to flip more houses.

310
00:20:28,180 --> 00:20:30,960
Now Denny Chittick has an agonizing
choice.

311
00:20:31,500 --> 00:20:34,120
Tell his investors and risk losing
everything?

312
00:20:34,560 --> 00:20:38,280
Or work with Scott Menaged and try to
make things right?

313
00:20:38,840 --> 00:20:42,619
He said that he couldn't tell the
investors at that time. He didn't have

314
00:20:42,620 --> 00:20:45,839
heart to tell them at that time what had
really happened because they would have

315
00:20:45,840 --> 00:20:46,890
lost faith in him.

316
00:20:47,220 --> 00:20:49,750
And they would have all asked for their
money back.

317
00:20:50,040 --> 00:20:54,139
And he didn't have the money to give
back to them. So he had been working to

318
00:20:54,140 --> 00:20:56,550
to turn this really terrible situation
around.

319
00:20:57,680 --> 00:21:03,239
He creates what he calls a workout
agreement with Monaghan, in which Densko

320
00:21:03,240 --> 00:21:06,980
lends Monaghan even more money and
expects to be paid back fully.

321
00:21:08,740 --> 00:21:12,920
Within a year, Monaghan claims to have
purchased hundreds of properties.

322
00:21:13,340 --> 00:21:18,300
with Densko as the title holder and owes
Densko $30 million.

323
00:21:20,460 --> 00:21:25,279
Monaghan is making the 18 % interest
payments and Denny Chittick thinks their

324
00:21:25,280 --> 00:21:26,330
plan is working.

325
00:21:27,760 --> 00:21:33,659
What he doesn't know is that Scott
Monaghan is secretly devising another

326
00:21:33,660 --> 00:21:35,920
stream, an illegal one.

327
00:21:37,340 --> 00:21:43,199
IRS criminal investigator Denise Lucero
fields a tip about some suspicious

328
00:21:43,200 --> 00:21:47,500
banking activity taking place at
Monogat's furniture stores.

329
00:21:48,100 --> 00:21:53,219
It appeared that Scott Monogat had
opened up a merchant account with Wells

330
00:21:53,220 --> 00:21:59,079
Bank. Once that account was established,
he then was able to provide lines of

331
00:21:59,080 --> 00:22:02,320
credit to individuals wanting to
purchase furniture.

332
00:22:03,280 --> 00:22:08,439
Multiple applications were prepared and
filed with Wells Fargo approving those

333
00:22:08,440 --> 00:22:09,490
lines of credit.

334
00:22:09,560 --> 00:22:14,219
Once we looked into the names of the
applicants, it was determined that those

335
00:22:14,220 --> 00:22:18,879
individuals, the names, the social
security numbers, the date of birth, all

336
00:22:18,880 --> 00:22:21,460
belonged to deceased individuals.

337
00:22:21,900 --> 00:22:27,319
We discovered that Scott Menaged was
obtaining these names from the obituary

338
00:22:27,320 --> 00:22:30,270
section of the Arizona Republic, which
is the local paper.

339
00:22:30,271 --> 00:22:34,099
Once he knew they were deceased, he was
able to find their personal

340
00:22:34,100 --> 00:22:38,679
identification information, their social
security numbers, their addresses, all

341
00:22:38,680 --> 00:22:43,299
sorts of information that he then used
to make these bogus credit card

342
00:22:43,300 --> 00:22:44,350
applications.

343
00:22:44,840 --> 00:22:50,519
Unless Scott Monaghan's customers need
furniture in the afterlife, it appears

344
00:22:50,520 --> 00:22:52,760
is simply pocketing the bank's money.

345
00:22:53,120 --> 00:22:58,339
These were entirely fabricated purchases
done so that Scott Monaghan could get

346
00:22:58,340 --> 00:22:59,740
his hands on funds quickly.

347
00:23:00,670 --> 00:23:05,649
For example, Monaghan might read in the
obits that an Arizona woman has died at

348
00:23:05,650 --> 00:23:06,700
89.

349
00:23:07,070 --> 00:23:12,270
Using her personal data, he takes out a
Wells Fargo line of credit in her name.

350
00:23:12,750 --> 00:23:16,430
He uses it to buy $5 ,000 worth of
furniture.

351
00:23:16,810 --> 00:23:18,350
On paper, that is.

352
00:23:18,570 --> 00:23:23,270
In reality, the living room set stays
right on his showroom floor.

353
00:23:23,710 --> 00:23:27,590
But the $5 ,000 goes into Monaghan's
pocket.

354
00:23:28,750 --> 00:23:33,869
In an attempt to legitimize the fraud,
Scott Monaghan did purchase some money

355
00:23:33,870 --> 00:23:38,889
orders from a bank and then try to pay
down that line of credit to sort of keep

356
00:23:38,890 --> 00:23:41,660
the fraud ongoing and not raise any
flags with the bank.

357
00:23:41,770 --> 00:23:46,110
Unfortunately, it was so egregious that
it was noticed.

358
00:23:47,050 --> 00:23:52,489
Noticed, but not before Scott Monaghan
makes off with more than $2 million from

359
00:23:52,490 --> 00:23:53,540
two banks.

360
00:23:54,910 --> 00:23:56,450
Next on American Greed.

361
00:23:57,200 --> 00:24:02,499
The feds stay covert and continue to
investigate, for there is a larger

362
00:24:02,500 --> 00:24:03,550
at hand.

363
00:24:04,300 --> 00:24:09,399
Why would a hugely successful real
estate investor need to commit credit

364
00:24:09,400 --> 00:24:10,450
bank fraud?

365
00:24:10,980 --> 00:24:15,659
Everything that was tied to Scott was
tainted with some sort of fraud, some

366
00:24:15,660 --> 00:24:20,040
of lies. It just always seemed to be,
does this guy stop?

367
00:24:35,560 --> 00:24:42,479
In a suburban Phoenix subdivision, in
the home of businessman and father,

368
00:24:42,480 --> 00:24:48,859
Chittick, in the office where he runs
his real estate lending business, sits a

369
00:24:48,860 --> 00:24:49,910
broken man.

370
00:24:50,760 --> 00:24:52,140
His fatal mistake?

371
00:24:52,980 --> 00:24:58,300
Trusting Scott Monaghan, who owes him
and his investors $31 million.

372
00:24:59,180 --> 00:25:02,280
And Monaghan has just filed for
bankruptcy.

373
00:25:03,120 --> 00:25:06,670
Denny Chittick learned that Scott
Monaghan had filed for bankruptcy.

374
00:25:07,500 --> 00:25:13,719
And Denny Chittick is distraught at this
point because he'd given Monaghan tens

375
00:25:13,720 --> 00:25:16,540
of millions of dollars from his friends.

376
00:25:17,360 --> 00:25:19,530
And he's wondering what's going to
happen.

377
00:25:19,840 --> 00:25:24,859
Chittick's journal entries offer a peek
inside the mind of a man whose options

378
00:25:24,860 --> 00:25:26,300
are bad and worse.

379
00:25:27,100 --> 00:25:30,640
And there was spiraling down a dark hole
of regret.

380
00:25:31,880 --> 00:25:33,580
June 6, 2016.

381
00:25:35,480 --> 00:25:42,079
I spent my entire waking hours thinking
about this mess, how I should have done

382
00:25:42,080 --> 00:25:45,180
things differently, and what I am going
to do.

383
00:25:45,940 --> 00:25:52,319
He was working with Scott Menaged to try
to come up with a plan to earn back the

384
00:25:52,320 --> 00:25:53,419
money that had been stolen.

385
00:25:53,420 --> 00:25:59,319
That involved getting more money from
investors and investing some more with

386
00:25:59,320 --> 00:26:00,370
Scott Menaged.

387
00:26:01,520 --> 00:26:06,679
But he found out that that money was
being stolen, too. He had trusted Scott

388
00:26:06,680 --> 00:26:12,580
Managa to take that money and use it to
go buy foreclosed homes at a discount.

389
00:26:13,000 --> 00:26:17,040
And he learned eventually that that
wasn't done.

390
00:26:17,580 --> 00:26:18,940
June 13th.

391
00:26:19,700 --> 00:26:21,580
Scott was supposed to call me.

392
00:26:21,940 --> 00:26:22,990
Never did.

393
00:26:23,720 --> 00:26:25,890
Claims he's going to get this thing
solved.

394
00:26:26,480 --> 00:26:27,740
I have little faith.

395
00:26:28,590 --> 00:26:33,510
He just strings me out with promises and
dates and times that never happened.

396
00:26:33,790 --> 00:26:35,850
Denny Chittick was clearly depressed.

397
00:26:36,330 --> 00:26:41,509
It was obvious he hadn't slept for
weeks, who knows, maybe even longer than

398
00:26:41,510 --> 00:26:44,590
that. We understand he might have been
taking sleeping pills.

399
00:26:44,790 --> 00:26:49,669
He was just running around for well over
a year trying to fix this behind the

400
00:26:49,670 --> 00:26:53,130
scenes and to avoid a super disaster.

401
00:26:54,110 --> 00:26:55,650
June 14th.

402
00:26:56,490 --> 00:27:00,429
I started making a list of people I
would write a suicide note of

403
00:27:00,430 --> 00:27:01,480
to.

404
00:27:01,730 --> 00:27:06,689
I just have this overwhelming feeling
this is going to come crashing down on

405
00:27:06,690 --> 00:27:07,740
any minute.

406
00:27:09,150 --> 00:27:10,790
In July 2016,

407
00:27:11,490 --> 00:27:16,789
Chittick and Monaghan meet at Furniture
King to discuss Monaghan's impending

408
00:27:16,790 --> 00:27:18,010
bankruptcy deposition.

409
00:27:19,150 --> 00:27:22,230
Chittick secretly records the
conversation.

410
00:27:22,850 --> 00:27:24,410
It's a closed -door deposition.

411
00:27:24,830 --> 00:27:28,989
and they're going to ask me a ton of
questions based on all the bank

412
00:27:28,990 --> 00:27:30,369
and everything that they have.

413
00:27:30,370 --> 00:27:34,829
During the investigation, we learned
that Denny Chittick had made a recording

414
00:27:34,830 --> 00:27:40,409
with Scott Menaged. He approached Scott
Menaged about the fraud, and Scott

415
00:27:40,410 --> 00:27:44,450
basically made excuses with regards to
his activity.

416
00:27:45,370 --> 00:27:50,490
Menaged tells Chittick that most of the
money he owes Densko, $30 million,

417
00:27:51,630 --> 00:27:57,929
is actually safe and being held with
Auction .com, an online marketplace for

418
00:27:57,930 --> 00:27:58,990
foreclosure buyers.

419
00:27:59,690 --> 00:28:04,769
But he says that no one can know about
this, or the bankruptcy court will go

420
00:28:04,770 --> 00:28:08,590
after the money, and they will never be
able to pay back Denny's investors.

421
00:28:20,280 --> 00:28:25,079
Scott, I'm telling you, if the investors
don't get their money, I will be sued

422
00:28:25,080 --> 00:28:30,819
into oblivion the next morning. We
absolutely have to talk to Auction .com

423
00:28:30,820 --> 00:28:32,320
they have to give me money back.

424
00:28:32,460 --> 00:28:36,539
They absolutely have to. If we go there
right now or you call them right now

425
00:28:36,540 --> 00:28:39,250
where I'm on the phone, we have to. If
we don't, I'm dead.

426
00:28:39,540 --> 00:28:40,590
I am dead.

427
00:28:40,591 --> 00:28:44,799
Danny confronts Scott Menaged and says,
what happened to all this money? Where

428
00:28:44,800 --> 00:28:45,769
is it?

429
00:28:45,770 --> 00:28:49,429
And Scott says, well, some was stolen,
but a big chunk of it is invested with a

430
00:28:49,430 --> 00:28:53,949
company called Auction .com, and we're
going to get those millions back. Don't

431
00:28:53,950 --> 00:28:54,989
worry.

432
00:28:54,990 --> 00:28:59,789
What it is or what it's not, do you
think for 60 days I can keep this quiet

433
00:28:59,790 --> 00:29:05,369
placating to my investors and paying
back their interest or whatever, and

434
00:29:05,370 --> 00:29:11,670
in 60 days they give you your bankruptcy
dismissal and you're done?

435
00:29:11,671 --> 00:29:15,979
Auction .com wires you the money, you
wire me the money, and you go our merry

436
00:29:15,980 --> 00:29:17,520
way? That's our plan?

437
00:29:17,521 --> 00:29:19,999
Yeah, is that a plan? What is a better
plan?

438
00:29:20,000 --> 00:29:21,500
I don't have one. Expose it?

439
00:29:21,880 --> 00:29:25,600
I can't expose it. I don't have one. I'm
taking all the money myself.

440
00:29:26,240 --> 00:29:30,739
The only reason I'm doing it is because
I know at the end of this whole rainbow

441
00:29:30,740 --> 00:29:35,400
that there is $30 million that's going
to make everyone quiet.

442
00:29:35,780 --> 00:29:39,880
It didn't seem that Scott Monaghan took
much responsibility.

443
00:29:40,960 --> 00:29:45,720
for his actions, leaving Denny Pick just
even more devastated.

444
00:29:47,420 --> 00:29:53,499
Next on American Greed, there is no pot
of gold at the end of the rainbow, only

445
00:29:53,500 --> 00:29:54,700
a pot of lies.

446
00:29:55,420 --> 00:30:02,379
Those excuses were bogus. It was just
Scott Minogue's way of brushing Denny

447
00:30:02,380 --> 00:30:06,860
off. Scott, I'm telling you, if the
investors don't get their money, I'm

448
00:30:06,940 --> 00:30:07,990
Scott.

449
00:30:08,000 --> 00:30:09,800
I am dead man lost.

450
00:30:10,480 --> 00:30:14,620
Hear more of Menaged's plan to weasel
out of his fraudulent mess.

451
00:30:14,980 --> 00:30:18,160
Go to americangreed .cnbc .com.

452
00:30:18,780 --> 00:30:21,020
Want inside information from the show?

453
00:30:21,420 --> 00:30:23,500
Join the Greed Social Network.

454
00:30:23,980 --> 00:30:26,320
Like us on American Greed's Facebook
page.

455
00:30:26,720 --> 00:30:27,860
We'll be right back.

456
00:30:40,240 --> 00:30:46,239
On July 28, 2016, Denny Chittick's ex
-wife pulls up in front of Chittick's

457
00:30:46,240 --> 00:30:49,620
Arizona home with their 10 - and 11
-year -old sons.

458
00:30:50,900 --> 00:30:55,360
She hasn't heard from him in a couple of
days, which is highly unusual.

459
00:30:56,060 --> 00:30:59,920
She drove over with the boys. The boys
ran to the front door. It was locked.

460
00:30:59,921 --> 00:31:02,819
So they ran around the side and jumped
over the fence.

461
00:31:02,820 --> 00:31:08,379
As they ran towards the house, they saw
their father hanging with a luggage

462
00:31:08,380 --> 00:31:11,960
strap. around his neck, and he was dead.

463
00:31:13,080 --> 00:31:17,159
And this is something that two young
boys should never have to see in their

464
00:31:17,160 --> 00:31:18,210
lives.

465
00:31:18,340 --> 00:31:23,699
And they were so frightened and afraid,
they ran back and they tried to go

466
00:31:23,700 --> 00:31:26,899
straight through the fence, and they
broke the fence, but they couldn't get

467
00:31:26,900 --> 00:31:31,280
through, and they jumped over and ran to
their mother, and their mom called 911.

468
00:31:32,700 --> 00:31:36,180
First responders pronounced Denny
Chittick dead on the scene.

469
00:31:37,080 --> 00:31:38,640
He's 48 years old.

470
00:31:40,080 --> 00:31:44,280
In Chittick's home office, investigators
find several notes.

471
00:31:44,780 --> 00:31:49,199
When they went inside, they found a
little note among many other notes, but

472
00:31:49,200 --> 00:31:54,999
that jumped out at them was a note
written to Denny's sister. And it said,

473
00:31:55,000 --> 00:32:01,560
mom and dad's condo in Phoenix, go
inside, go to the washer and dryer,

474
00:32:01,840 --> 00:32:02,890
open up the dryer.

475
00:32:03,220 --> 00:32:08,239
The police saw that, and so they
immediately went to Denny Chittick's

476
00:32:08,240 --> 00:32:13,069
father's. Condo, they went inside, they
went to the washing machine and the

477
00:32:13,070 --> 00:32:19,549
dryer machine, opened up the dryer, and
in there was a box of cash, a bunch of

478
00:32:19,550 --> 00:32:20,600
$100 bills.

479
00:32:21,670 --> 00:32:25,130
The box contains $521 ,000.

480
00:32:25,790 --> 00:32:31,549
And another note addressed to Chittick's
sister, telling her what to do with the

481
00:32:31,550 --> 00:32:32,600
cash.

482
00:32:32,950 --> 00:32:38,190
They went back to the house and found a
bunch of boxes that he had laid out.

483
00:32:38,460 --> 00:32:43,879
with all his financial records in them,
and other notes around the house, a note

484
00:32:43,880 --> 00:32:47,480
to his boys, a note to his investors and
others.

485
00:32:48,240 --> 00:32:52,440
And some of the notes had great detail
about all his finances.

486
00:32:52,800 --> 00:32:58,159
And you could tell by going through
these notes that clearly something bad

487
00:32:58,160 --> 00:33:02,200
happened to him financially and
something terrible had happened to his

488
00:33:03,620 --> 00:33:10,329
In a five -page apology letter to his
investors, Chittick writes, I owe

489
00:33:10,330 --> 00:33:13,050
you an explanation and a lot of money.

490
00:33:13,670 --> 00:33:19,029
The guilt, embarrassment, humility, and
any other adjective you can add in there

491
00:33:19,030 --> 00:33:20,310
is overwhelming.

492
00:33:21,670 --> 00:33:24,930
Going through the legal process is an
unbearable thought.

493
00:33:25,730 --> 00:33:29,270
Years spent in courts and lawyers trying
to settle this all out.

494
00:33:30,910 --> 00:33:34,910
Meanwhile, having to face all of you, I
can't do it.

495
00:33:35,690 --> 00:33:42,309
When you read the very long sort of
suicide notes that Denny Chittick wrote

496
00:33:42,310 --> 00:33:47,989
his investors and then wrote a long one
to his sister, you see there's a man

497
00:33:47,990 --> 00:33:53,769
there who's desperate, who's depressed,
who's confused, who knows he's been

498
00:33:53,770 --> 00:33:56,470
cornered, and he just sees no way out.

499
00:33:57,070 --> 00:34:01,770
I love my family and my boys as much as
any of you do your families.

500
00:34:02,270 --> 00:34:04,810
I can't put them through this face to
face.

501
00:34:05,530 --> 00:34:10,570
I've decided to be my own judge and
jury, and I decided the death penalty.

502
00:34:11,270 --> 00:34:14,310
I'm never going to see my amazing boys
grow up.

503
00:34:15,449 --> 00:34:19,750
It just broke my heart. I heard how he
was found, and I was just in shock,

504
00:34:19,929 --> 00:34:21,389
complete and utter shock.

505
00:34:21,630 --> 00:34:26,809
Anybody who's anybody in our industry
knew Denny and knew, you know, what kind

506
00:34:26,810 --> 00:34:29,010
of guy he was, and he didn't deserve
that.

507
00:34:29,819 --> 00:34:35,020
He felt guilt that he wasn't aware of
the fraud, that he didn't identify it.

508
00:34:35,159 --> 00:34:37,749
There was going to be no recovery for
his investors.

509
00:34:37,750 --> 00:34:42,238
He wanted his family, he wanted his
friends, he wanted his sons to be made

510
00:34:42,239 --> 00:34:45,560
whole, and unfortunately that wasn't
going to happen.

511
00:34:46,659 --> 00:34:52,840
He felt that taking his own life was the
only way to handle that.

512
00:34:57,420 --> 00:35:02,499
In the aftermath of Chittick's death,
Wendy Coy with the Arizona Corporation

513
00:35:02,500 --> 00:35:06,840
Commission is charged with protecting
Densko's investors.

514
00:35:07,300 --> 00:35:14,239
There were approximately over 100
investors, over $50 million raised, and

515
00:35:14,240 --> 00:35:19,759
was nobody, no other employees, nobody
to take over control of the business. We

516
00:35:19,760 --> 00:35:24,959
started locating investors. We started
getting the offering documents and found

517
00:35:24,960 --> 00:35:25,999
that, yes.

518
00:35:26,000 --> 00:35:31,299
Densko was raising money from investors
with promises the investment would be

519
00:35:31,300 --> 00:35:36,380
secured with first position deeds of
trust and promising returns.

520
00:35:36,960 --> 00:35:42,859
Within two weeks, a judge appoints a
receiver to take over Densko and figure

521
00:35:42,860 --> 00:35:43,910
what is going on.

522
00:35:44,940 --> 00:35:48,880
Fraud attorney Tom Adjami works with the
receiver on the case.

523
00:35:49,450 --> 00:35:54,309
As the receiver's going through, he
keeps saying that a bunch of these loans

524
00:35:54,310 --> 00:35:58,989
purchase homes were going to a guy named
Scott Monaghan. The day I go out of

525
00:35:58,990 --> 00:36:03,630
business will be the day that cows fly.
And Monaghan's name keeps coming up.

526
00:36:03,631 --> 00:36:07,769
So the receiver starts doing a little
checking around and seeing that there's

527
00:36:07,770 --> 00:36:13,069
guy named Scott Monaghan. He was on a
reality TV show, and also he'd filed for

528
00:36:13,070 --> 00:36:16,250
bankruptcy. So that leads them to
explore.

529
00:36:17,120 --> 00:36:20,070
Who is Scott Monaghan and why is he
involved in all of this?

530
00:36:20,280 --> 00:36:24,579
Attorneys for the state are soon in
touch with investigators from the

531
00:36:24,580 --> 00:36:30,120
government. They realize they are both
taking a hard look at Scott Monaghan.

532
00:36:30,620 --> 00:36:35,959
The IRS and U .S. attorneys already have
a case on Monaghan for credit card bank

533
00:36:35,960 --> 00:36:39,580
fraud. Now there is more fraud to
investigate.

534
00:36:40,910 --> 00:36:45,449
As we dug into the Densko portion of the
fraud, it became very clear that there

535
00:36:45,450 --> 00:36:50,449
were a lot of false documents that Scott
was creating. As we dug into the

536
00:36:50,450 --> 00:36:54,789
receipts for the purchase of real estate
that never was actually purchased, it

537
00:36:54,790 --> 00:37:00,189
included cashier's checks, which Scott
would go to the bank, obtain a cashier's

538
00:37:00,190 --> 00:37:04,309
check, which was supposed to be the down
payment for real estate, take a picture

539
00:37:04,310 --> 00:37:08,449
of that, forward that picture to Denny
Chittick, and then immediately deposit

540
00:37:08,450 --> 00:37:10,010
the check back into the account.

541
00:37:10,430 --> 00:37:16,489
Of the approximately 3 ,000 loans that
Scott Menaged obtained from Demsco, only

542
00:37:16,490 --> 00:37:21,589
96 % of those had any relation to real
property. The money was just being

543
00:37:21,590 --> 00:37:26,049
siphoned off by Scott Menaged. But Denny
Chinnick, he saw those documents, he

544
00:37:26,050 --> 00:37:29,749
believed the transactions were
occurring, and it wasn't until Scott

545
00:37:29,750 --> 00:37:32,989
bankruptcy that Denny Chinnick realized
that it was all fraudulent.

546
00:37:32,990 --> 00:37:38,569
Even Menaged's original story about his
cousin stealing from him turns out to be

547
00:37:38,570 --> 00:37:39,620
a lie.

548
00:37:39,670 --> 00:37:45,670
Denny would send him that money, and
Scott Menaged would spend it on himself.

549
00:37:46,630 --> 00:37:48,330
Next on American Greed.

550
00:37:48,630 --> 00:37:54,469
According to court testimony, Scott
Menaged, ever the optimist, tries to

551
00:37:54,470 --> 00:37:57,290
man's death into his own good fortune.

552
00:37:57,790 --> 00:38:03,890
When Scott Menaged learned that Denny
Chittick had killed himself,

553
00:38:04,290 --> 00:38:07,170
he said, that's a gift.

554
00:38:07,610 --> 00:38:08,690
Dead man.

555
00:38:09,160 --> 00:38:10,210
Don't talk.

556
00:38:25,840 --> 00:38:28,180
May 16th, 2017.

557
00:38:29,680 --> 00:38:35,419
Scott Minogat is charged with multiple
counts of fraud for scamming two banks

558
00:38:35,420 --> 00:38:36,960
out of more than $2 million.

559
00:38:37,980 --> 00:38:40,960
in a credit scheme through his furniture
stores.

560
00:38:41,380 --> 00:38:47,060
It was our fear that additional funds
would be stolen, additional individuals'

561
00:38:47,400 --> 00:38:49,020
identity would have been stolen.

562
00:38:49,080 --> 00:38:54,460
So at the time this case was charged, it
was to stop an ongoing fraud.

563
00:38:54,980 --> 00:38:57,320
That fraud, however, is a pittance.

564
00:38:57,800 --> 00:39:03,119
Monaghan has also defrauded his lender,
Densko, and its investors out of more

565
00:39:03,120 --> 00:39:04,360
than $30 million.

566
00:39:05,930 --> 00:39:11,009
This was essentially sort of a desperate
act that Scott Minogat engaged in

567
00:39:11,010 --> 00:39:16,849
because the larger fraud, he was no
longer receiving funds from that. And he

568
00:39:16,850 --> 00:39:22,309
a substantial amount of expenses and he
was still living a pretty extravagant

569
00:39:22,310 --> 00:39:27,889
lifestyle. So in order to get his hands
on money quickly, he utilized this

570
00:39:27,890 --> 00:39:28,940
credit card scheme.

571
00:39:28,941 --> 00:39:32,829
Once the credit applications were
approved, it was almost an instantaneous

572
00:39:32,830 --> 00:39:35,430
transfer of funds from the bank to his
account.

573
00:39:36,390 --> 00:39:42,470
Densko victim Anthony Burdette lost more
than $400 ,000 to Manogat's scheme.

574
00:39:43,510 --> 00:39:49,689
I had all kinds of things plotted out in
my mind. First you're shocked, and then

575
00:39:49,690 --> 00:39:54,670
the anger is just unbelievable to think,
you know, here.

576
00:39:54,671 --> 00:39:58,979
We were getting these monthly statements
and saw this money building up. And

577
00:39:58,980 --> 00:40:02,779
even though we didn't need it at the
moment, we knew it was going to be there

578
00:40:02,780 --> 00:40:03,860
when we needed it.

579
00:40:04,380 --> 00:40:06,420
So, yeah, I got very angry.

580
00:40:06,740 --> 00:40:13,679
And, you know, it played out all kinds
of horrible scenarios in my mind of what

581
00:40:13,680 --> 00:40:16,240
I would do to Scott Menake, for sure.

582
00:40:17,280 --> 00:40:23,459
In October 2017, as part of a plea deal
with the government, Managat pleads

583
00:40:23,460 --> 00:40:29,119
guilty to conspiracy to commit bank
fraud, aggravated identity theft, and

584
00:40:29,120 --> 00:40:31,100
conspiracy to commit money laundering.

585
00:40:31,480 --> 00:40:35,460
He is sentenced to 17 years in federal
prison.

586
00:40:36,100 --> 00:40:41,159
The sentence in this case was the
maximum that he could have received

587
00:40:41,160 --> 00:40:46,479
plea agreement, and it also required him
to pay restitution to the victims, to

588
00:40:46,480 --> 00:40:47,620
make them whole.

589
00:40:48,800 --> 00:40:53,339
Once he is released from prison. So to
the extent that he has to answer for the

590
00:40:53,340 --> 00:40:57,839
totality of the crimes he committed, not
just against the bank and the

591
00:40:57,840 --> 00:41:02,119
individuals whose identities he stole,
but also Densko, Denny Chittick and its

592
00:41:02,120 --> 00:41:06,539
investors. It was a sentence that was
appropriate considering all the facts of

593
00:41:06,540 --> 00:41:07,590
the case.

594
00:41:07,680 --> 00:41:12,600
At the sentencing hearing, Scott
Monaghan's former employee, Veronica

595
00:41:12,920 --> 00:41:16,040
also convicted of conspiracy to commit
bank fraud.

596
00:41:16,650 --> 00:41:22,289
testifies that Menaged thought
Chittick's death would help him get out

597
00:41:22,290 --> 00:41:23,340
trouble.

598
00:41:23,341 --> 00:41:27,629
She testified at the sentencing that
Scott Menaged described Denny Chittick's

599
00:41:27,630 --> 00:41:28,680
death as a gift.

600
00:41:29,090 --> 00:41:32,950
She said to her, it's a dead man's word
against mine.

601
00:41:33,290 --> 00:41:38,670
And that was with regard to the fraud
transaction that had gone on for many,

602
00:41:38,790 --> 00:41:41,790
many years and the huge amount of loss.

603
00:41:42,250 --> 00:41:46,529
He got 17 years. He's paying a price.
That's a large portion of your life as a

604
00:41:46,530 --> 00:41:51,989
relatively younger man, and he has kids.
This is just a horrible story from top

605
00:41:51,990 --> 00:41:55,890
to bottom. Denny took his life because
of it. He has kids and family.

606
00:41:56,130 --> 00:42:01,029
It's just a sad story all around. There
were so many victims. It's not just the

607
00:42:01,030 --> 00:42:03,869
money, the people that have lost money.
It's not just the investors.

608
00:42:03,870 --> 00:42:04,990
It's the families.

609
00:42:05,710 --> 00:42:11,310
It's everybody around that was truly
devastated by...

610
00:42:11,740 --> 00:42:14,180
His greedy actions.

611
00:42:15,240 --> 00:42:20,019
Scott Monaghan has lots of time on his
hands to consider where his actions got

612
00:42:20,020 --> 00:42:24,400
him. Whether or not it will change him
remains to be seen.

613
00:42:25,360 --> 00:42:28,680
I don't know how they come up with these
sentencing guidelines.

614
00:42:29,500 --> 00:42:34,599
I mean, the lies that man destroyed
certainly wasn't long enough for me. I'd

615
00:42:34,600 --> 00:42:37,080
like to see him become an old man or
his.

616
00:42:37,880 --> 00:42:41,660
His crime streak wouldn't be in him
anymore because he's just dangerous.

617
00:42:42,240 --> 00:42:45,790
Laugh all you want, guys. I'll be the
one laughing all the way to the bank.

618
00:42:45,840 --> 00:42:50,839
You know, when a person doesn't have any
moral compass to go by, he's a real

619
00:42:50,840 --> 00:42:51,889
dangerous person.

620
00:42:51,890 --> 00:42:56,440
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