Dear Texas Real Estate Taxpayer and Governor Abbott,

We need to discuss issues concerning Central Appraisal Districts in Texas, specificaly, the Denton Central Appraisal District.

 Letter posted reviewing problems with the property appraisals & failure to perform lawful, legitimate, and proper appraisals 

From Mitchell Vexler, February 29, 2024

Starting in 2016, we realized that DCAD was manufacturing values, to the point where lawsuits had to be filed annually.  Given my career as a 35+ year builder / developer with a background in statistical probability and quantitative finance, who many years ago back in Canada was a licensed real estate broker authorized to do appraisals, and with the help of my accountant Leslie Robbins, we started documenting what has been done, how, by whom, the ramifications, and then tied what we learned to the Law and USPAP (Uniform Standards of Professional Appraisal Practice).

This has been a long exhaustive, monumental, effort. In addition to multiple years of evidence gathering and analysis, what we learned in the last 5 months is astonishing in its depth of corruption. 

These are not fantastical accusations.  We prove them with detailed empirical evidence in an 18 page (link) PDF, that contains the summary the majority of what we will present to the court, and now, we are sharing that PDF publicly.  In fact, this is our first time on X, or any other social media for that matter, but this issue affects every property taxpayer in the State of Texas so we are taking all the evidence and website public, www.mockingbirdproperties.com/dcad. Although our (link) lawsuit is specific to Denton Central Appraisal District and several individuals (subject to additions via Amendment), we have received calls from multiple attorneys across Texas, and even Chicago, so we know there are similar problems across many Appraisal Districts. To our knowledge, nobody has been able to tie the Law (State and Federal), to the math, to USPAP, to the governing bodies, and to the individuals who signed an Oath. We did and we created 18 Presentation Boards as seen in the above PDF outlining criminal activity, at the hands of multiple governing bodies.  It is interesting that Defendants’ response to the Lawsuit is to claim “immunity”.  Immunity from criminal actions does not exist under Texas Law or Federal Law, and in fact, Defendants signed an Oath that requires them to defend the Texas Constitution and the Constitution of the United States of America. We will show that Defendants have no defense and that their actions are with knowledge and intention. We will show this in their own words via audio recordings, video, and transcripts, along with other analysis exhibits. 

Attached at the lower section of page 1 of our website is a new Cover Letter, which is  just 1 out of 300+ evidentiary documents now on www.mockingbirdproperties.com/dcad, where there are volumes of documented evidence that we have been assembling since 2016.  This Cover Letter is a miniscule fraction of the description of the problems and was designed to give a relatively quick encapsulation of the issues that DCAD and its co-conspirators created and outlines their heinous actions for which the only solution is the recognition of DCAD as being an unlawful agency which must be enjoined. The Cover Letter and this posting on X, are intended to show the world the criminal activity being hidden and hypocrisy at the hands of DCAD and its co-conspirators.

An elaborate scheme (government overreach) of all these entities:

DCAD creates fraudulent income statements, uses comparisons in violation of USPAP, “manipulates 60,000 properties”, builds into their valuations the pre-determined budgets of the taxing entities, negotiates values before protest hearings because they can’t get to all the protests, issues a directive to ARB panels not to go below the homestead cap, all of which is a violation of USPAP, Texas Constitution and The Constitution of the United States of America and all of which creates dirty data and corrupt databases throughout multiple systems.  Our evidence (DCAD’s own data and documents) proves that DCAD and its co-conspirators are not doing appraisals under any definition in law, are violating USPAP, and due to intentionally corrupt databases, are incapable of arriving at a legitimate Market Value.

The State of Texas Legislature is the creator of DCAD with the authority. Glenn Hegar (State Comptroller), Ken Paxton (State Attorney General), and Governor Abbot being the Executive, are responsible, yet PTAD (State Comptroller) stated in writing, they have no authority to enforce and if you don't like it, “you can direct your complaint to your local county district court to resolve.” We have done so. This response was flippant, arrogant, ignorant, and when superimposed with the current claim of “immunity” by Defendants, as you will learn, was quite intentional.  The Executive Branch created this Agency – the Denton Central Appraisal District (DCAD). DCAD and its co-conspirators are paid from the cash generated by the real estate tax paying property owners. Then, DCAD and its co-conspirators including the County Tax Assessor, create and allow for further abuse of authority by overvaluation and over taxation of the real estate taxpayers, outside of any Law and USPAP and this results in theft of real estate taxpayer money and therefore DCAD and its co-conspirators must be enjoined.

There cannot be this many violations of documents, requirements, organizations, USPAP, math, the Texas Constitution and The Constitution of the United States of America, but for intent.

What Is Civil Conspiracy?

Civil conspiracy occurs when two or more people agree to engage in a criminal act or an activity to accomplish an unlawful purpose or goal, with an injury to a bystander occurring as a result.

What is fraud?

The Association of Certified Fraud Examiners (ACFE) defines fraud as a fraudulent act made by a person or entity who knows that this error can result in losses to individuals or entities. Fraud is an act and action which is done intentionally, consciously, knowingly and desire to abuse everything that is held together, both in the form of company and state resources for the personal enjoyment and then presents incorrect information to cover the abuse (Ernst and Young, 2017). It can be concluded that fraud is an act and an unlawful act carried out by someone from inside or outside the organization that is done intentionally with the aim of gaining personal and group benefits but on the other hand also harms others (Ablrecht et al, 2012).

With regard to unregulated and unfettered theft, it should be pointed out that Defendants, being in violation of the 1^st, 5^th, 14^th and 16^th Amendments of the Constitution of the United States of America, and the Texas Constitution, check the box of every requirement under RICO. In other words, the actions of Defendants by violating the Laws under which they are governed, are tantamount to extortion and being in violation of RICO.

This leads to the requirement and irrefutable fact that Market Value, so as not to be subjective, can only be determined upon sale between a willing buyer and willing seller, with neither under duress, with cash in hand (confirmed closing).

To be clear, the Appraisal Review Board (ARB) appeal process is a bait and switch scheme where the taxpayer cannot protest or appeal on the actual levied assessed amount and can only appeal on the Market Value, which is not the real number. The “Market Value” is a derived from DCAD continuously and cumulatively forcing up property values to maximize the ceiling on the assessed amount, no matter what the economics of the property are. To further expose the fraud, the Texas State Comptroller via the Property Valuation Study (PVS) requires the Chief Appraiser to go raise values in the next appraisal year if State believes the certification values were too low and or there is not enough money to shift to certain school districts. We have evidence of specific communities being targeted for increased values in excess of the averages of Denton County and these actions are outside of USPAP and any appraisal law ever written.

16th Amendment to The Constitution of the United States of America:

In the years 2016, 2017, 2018, 2019… 2023 and prior to the creation of The Constitution of the United States of America, there were and are no laws in the United States that allow Taxation of Unrealized Gains. The government overreach as evidenced herein is trying to create Taxation of Unrealized Gains, without understanding the ramifications of such action. The State of Texas Legislature which created DCAD, the State Comptroller which oversees DCAD, and the Attorney General (Executive Branch) has violated the 16th Amendment which states “Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States.” The Amendment’s Framers drafted its text to overrule that holding while retaining the apportionment requirement for other direct taxes, including taxes on property. This is why it says, “taxes on incomes”. Then as now, income was understood to refer to gains realized by a taxpayer through payment, exchange, or the like, not mere increase in value of property. Appreciation in the value of a home or other asset is not income until it is sold, and the gain realized. We would be remiss if we did not point out that the appreciation in value is directly correlated to the decrease in purchasing power of the U.S. dollar which neither DCAD nor its co-conspirators, take into consideration.

In addition to DCAD fraudulently creating Market Values outside the confines of Law and USPAP, its existence is an unlawful agency allowing the violation of the 16th Amendment (not all inclusive) in that those same Market Values are being used as a basis from which to charge a tax which is Taxation on Unrealized Gains.

In Denton County Texas alone, there are tens of billions of dollars are at risk as a result of a minimum 30% overvaluation and over taxation of property values, which directly impacts, bond values (20 to 1 leverage) and mortgage values (amortization leverage) and touches the lives of every real estate taxpayer. Our spreadsheets show that roughly Sixty-Two Billion Dollars ($62,000,000,000.00) worth of Bond and Mortgage investments have a high probability of not be returned, as a direct result of the fraudulent overvaluation and over taxation by DCAD and its co-conspirators. 72% of households in Denton County Texas cannot afford the average Market Value home in Denton County Texas as a result of DCAD’s fraudulent overvaluation for 2023 of $514,000, as compared to 2021’s average Market Value of $339,000 and the median home price of $321,000. On its face, this one fact alone, demonstrates that $514,000 cannot be the average, median or actual price or value as the majority of the real estate taxpayers cannot afford it, which indicates fraud on a massive scale.  How many homeowners have had to decide to sell a car, or not buy medicine, to keep a roof over their head?  We can prove from government numbers that 37.81% of households in Denton County Texas are at risk of losing their home. Extrapolating across multiple districts in Texas and the U.S. that utilize / violate Market Value under USPAP in their CADs, then it is easy to understand that roughly 30%+ of the homeowners across all those Counties are facing bankruptcy. For every $100,000 of fraudulent increased value, let’s say the tax bill is $2,500. Now multiply that by 7 years (since 2016), for a total of $17,500. Did you know that the average homeowner does not have 3 months of income saved for an emergency and yet, at a minimum $17,500 was taken from them without their knowledge or consent. There is no more money to pay for the ever-increasing pre-determined budgets of the Taxing Entities or government creep.

The Suit filed against DCAD and individuals (Defendants), subject to further amendment, unwinds the intentional layering of complexity, which subterfuge is designed by highly compromised individuals and entities to defraud real estate taxpayers in violation of the Texas Constitution, and a multitude of other State and Federal laws. 

DCAD, its Board, employees, the County Tax Assessor Collector (Defendants), and other officials have violated the requirements and laws of each of its affiliated entities, and those entities chose to turn a blind eye to the fraud, which makes them a co-conspirator in a conspiracy to commit fraud.  

It is DCAD's documents and the documents of its governing bodies which form the basis of our analysis. In plain language, it is their documents, audio recordings, press releases, videos, depositions, and certifications.

Despite having been put on notice in a series of formally submitted written complaints, and being fully aware of dozens of press articles, the Executive Branch has ignored Texas’s demands that the Executive Branch perform its constitutional duties.

Glenn Hegar has violated his oath to faithfully execute Texas Property Code laws enacted by the Texas Legislature. Instead of prosecuting those individuals who are violating the appraisal laws as defined in the Texas Constitution, Texas Property Tax Code, Uniform Standards of Professional Appraisal Practice, Glenn Hegar, who controls the State Comptroller, Texas Department of Licensing and Regulation, and TALCB, has his attorneys stand down and ignore the filed complaints.

Glenn Hegar has instructed his agencies to ignore State statutes that include the Oath of Office which requires those responsible individuals who are breaking the law to adhere to the Constitution of the United States of America and the Texas Constitution. By wasting taxpayer dollars throughout a corrupt system, Glenn Hegar has enticed rampant fraud in multiple state offices, school districts, municipalities, ARB hearings, including in this particular case the Denton Central Appraisal District, where the fraudulent property valuations emanate from. Under Glenn Hegar’s lawless policies, more than $1.3 Billion has been stolen from the Denton County real estate taxpayers since 2017. This overvaluation wreaks havoc on bond and mortgage values given a 20:1 leverage often deployed in amortized derivatives. This illegal refusal to protect the taxpayers has inflicted, and continues to inflict, unprecedented harm on the people across Denton County not to mention the State of Texas.

The government made up of several enablers / co-conspirators and an unlawful DCAD have set about through a web of deceit, including violation of the Texas Procedures Act to intentionally keep the public blind to their actions. Telling the public that the Legislature will continue to nibble at the edges of the problem, yet ignore the fraud is nothing more than gaslighting the public and proof of the continued violation of the Texas Constitution by stealing money above what the law and USPAP allow for, to transfer that money to pay for the salaries of corrupt individuals, who think they can hide behind “we have immunity” and “this is the way we were taught”, neither of which is true, yet clearly shows their intent to break the Law.

The Bill of Rights became part of the US Constitution on December 15, 1791, because James Madison and Thomas Jefferson understood the need to guard against the government’s inclination to abuse its power. 

The Texas Constitution has been ignored by DCAD, its Board, Chief Appraiser, Deputy Chief Appraisers, Employees, RPAs, County Tax Assessor Collector, Co-Conspirators, and Taxing Entities. Each link in the chain, DCAD, Board, Employees, Chief Appraiser, Deputy Chief Appraisers, TDLR, TALCB, State Comptroller, Taxing Entities, Denton County Assessor, past Chief Appraiser, and the various appraisal professional organizations, is an illusion of legitimacy. When in truth, each link is made illegitimate by DCAD being unable and unwilling to deliver a proper Initial Notice of Value under USPAP, the Texas Property Tax Code and The Texas Constitution, thus violating the Constitutional rights of all the real estate taxpayers in Denton County.

Governor Abbott, I’m certain you will recognize the flavor of some of the text above and your recent statement is “The failure of the Biden Administration to fulfill the duties imposed by Article IV, § 4 has triggered Article I, § 10, Clause 3, which reserves to this State the right of self-defense. For these reasons, I have already declared an invasion under Article I, § 10, Clause 3 to invoke Texas’s constitutional authority to defend and protect itself. That authority is the supreme law of the land and supersedes any federal statutes to the contrary. The Texas National Guard, the Texas Department of Public Safety, and other Texas personnel are acting on that authority, as well as state law, to secure the Texas border.”

You are essentially saying that federal supremacy in this case has been rendered null and void by a federal refusal to enforce federal law.

For the record, I absolutely agree with you on your position and would go one step further which is that any federal agents that attempts to intervene with State agents on the border should be arrested and tried for obstruction and trespassing under Texas law. Federal attempts to take control of the National Guard should be declared non-starters by you under Section 1, Article 10. Federal agents should be treated as criminals. After all, the ATF, and countless federal regulators are all unconstitutional agents with no authorization within the constitution itself and certainly not adhering to Constitutional Law.  Interestingly in direct comparison, DCAD and its co-conspirators do not adhere to either the Texas Constitution, Texas Property Tax Code, or The Constitution of the United States of America.

With that said, Governor Abbott, you are making my argument and case against DCAD and its co-conspirators. You are also making the case that if the State of Texas does not enforce its Constitution, the Federal Government has the right to do so. It is called the Supremacy doctrine as seen in Article VI clause 2 of the U.S. Constitution. This situation can be thought of… if the shoe were on the other foot, and what is good for the goose is good for the gander.

 Some of the Judgements & Declarations sought include:

1. Failed USPAP Records Keeping Rule in conducting 2023 mass appraisal.
2. Failed USPAP Ethics Rule by willfully/knowingly violating Records Keeping Rule.
3. Failed USPAP Stds Rule 5-1(b): committed substantial errors of omission & commission, significantly affecting 2023 mass appraisal conducted.
4. Failed USPAP Stds Rule 5-1(c): rendered mass appraisal in careless & negligent manner.
5. Failed USPAP Stds Rule 5-2(e)(iii): failed to consider location in mass appraisal.
6. Failed USPAP Stds Rule 5-4(b): failed to develop mathematical models that, with reasonable certainty, represent relationship between property value and supply & demand factors, represented by quantitative & qualitative approaches to value.
7. Failed USPAP Stds Rule 5-4(c): failed to employ recognized techniques for calibrating the mass appraisal models used in 2023.
8. Failed USPAP Stds Rule 5-7(a) by failing to reconcile quality & quantity of data and analyzed within the approaches used and the applicability and relevance of approaches, methods & techniques used in the 2023 DCAD mass appraisal.
9. Failed USPAP Stds Rule 5-7(b): failed to use or implement appraisal testing procedures & techniques to ensure standards of accuracy are maintained.
10. Failed USPAP Stds 6: reported results of mass appraisal in a manner that is misleading.
11. DCAD, Don Spencer, Hope McClure, and Michelle French worked in concert to falsify the Denton County tax roll in July 2021.
    
12. Declare that Defendants' funding, development, marketing, and promotion of censorship tools, technologies, and censorship enterprises constitutes an ultra vires action lacking statutory authority and exceeding constitutional authority.
13. Declare that Defendants' funding, development, marketing, and promotion of censorship tools, technologies, and censorship scheme violates Plaintiff's Freedom of Speech under the First Amendment of the Constitution.
14. Declare Defendants' conduct violates the Administrative Procedure Act and the Texas Procedures Act and therefore is unlawful and invalid.
15. Preliminarily and permanently enjoin Defendants, their officers, officials, agents, servants, employees, attorneys, and all persons acting in concert or participation with them from further engaging in the unlawful conduct as alleged herein.
16. Declare that Defendants violated the 5th Amendment to the Constitution of the United States of America. The 5th Amendment says to the federal government that no one shall be "deprived of life, liberty or property without due process of law. The 14th Amendment ratified in 1868 uses the same eleven words, called the Due Process Clause, to describe a legal obligation of all states. These words have as their central promise an assurance that all levels of American government must operate within the law ("legality") and provide fair procedures.
17. Declare that Defendants violated the 14th Amendment to the Constitution of the United States of America, which also confirms "nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws."
18. Declare that Defendants and their attorneys have refused to honor their acceptance of their Oath and are impersonating public officials under Texas Penal Code 37.11, which is 3rd degree felony.
19. Declare that Defendants' violated Title 42 USC Section 1986 wherein a person having "knowledge of the law," "the power to stop a wrong," and the "duty to prevent a wrong from being done" is liable for any failure to act.
20. Declare that Defendants violated Title 18 USC Section 1512 (c)(1) and (2) which states "Whoever corruptly - 1. alters, destroys, mutilates, or conceals a record, document, or other object or attempts to do so, with the intent to impair the object's integrity or availability for use in an official proceeding or (2) otherwise obstructs, influences or impedes any official proceeding or attempts to do so, shall be fined under this title or imprisoned not more than 20 years, or both."
21. Declare that Defendants violated the 16th Amendment to The Constitution of the United States of America. In the years 2016 to 2023 and prior to the creation of The Constitution of the United States of America there were and are no laws in the United States that allow for Taxation of Unrealized Gains. The government overreach as evidenced in this case has created Taxation of Unrealized Gains, aka fraudulent Market Value, and those same Market Values are being used as a basis from which to create / charge a tax, which is Taxation of Unrealized Gains. The State of Texas Legislature which created DCAD, and the State Comptroller which oversees DCAD, and the Attorney General (Executive Branch) have violated the 16th Amendment which states that “Congress to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States.” This is why the 16^th Amendment states, “taxes on incomes”. Then as now, income was understood to refer to gains realized by a taxpayer through payment, exchange, or the like, not a mere increase in value of property. Appreciation in the value of a home or other asset is not income until it is sold, and the gain is realized.
22. In addition to DCAD fraudulently creating Market Values, its existence is an unlawful agency allowing the violation of the 16th Amendment (not all inclusive) in that those same Market Values are being used as a basis from which to charge a tax which is Taxation on Unrealized Gains.
23. Declare DCAD's actions to be arbitrary, capricious and abuse of discretion, and not in accordance with the law ”5 U.S.C. § 706(2)(A)".

Declare DCAD to be an unlawful agency that is hereby enjoined.

Include Attorney's fees, other just and proper relief, plus treble damages.

It is important to understand that the above list of Judgements and Declarations are all directly connected and all stem from two simple intentional facts: 1.) DCAD is not performing appraisals under any definition in law or USPAP or Mass Appraisal Standards and as a result and 2.) money is being stolen from real estate taxpayers. 

Governor Abbott, we fully recognize and truly appreciate how busy you are.  Texas is our home and where we do business and what we have discovered is so wrong and heinous, that you must recognize that 35,000+ homeowners in Denton County alone are teetering on bankruptcy today and the evidence being used in Court for my properties is the same evidence applicable to all real estate taxpayers and we will show beyond any doubt that DCAD is a criminal organization, its databases are irreparable, and DCAD and its coconspirators must be enjoined.  This is a multi-billion-dollar problem that is now being exposed along with the participants that knowingly created the problem (co-conspirators).

By applying proper statistical analysis to DCAD’s documents, the truth that is hidden by DCAD and its co-conspirators becomes irrefutably evident.

To those employees of DCAD who have not yet been sued, we would like to take this opportunity to suggest you read Declarations 19 & 20 above one more time as should the co-conspirators. You may want to reach out to Matt Nowak (attorney) at 214-823-2006 with the additional evidence we know you have. 

We wish to go to court and intend to expose the entirety of the corruption for all real estate taxpayers to see and force a change (enjoin DCAD and its co-conspirators) as those who conspired to steal money from real estate taxpayers cannot be trusted to fix the system that they intentionally corrupted. It has taken many years and a lot of money (not by choice but by necessity) to assemble all the evidence, www.mockingbirdproperties.com/dcad. Defendants’ actions are not tolerable and for the benefit of the taxpayers and the State, it is time to shut down (enjoin) DCAD as its databases are irretrievably corrupt, fire the individuals responsible for the corruption, including taking their pension, and start over with a new system (hybrid) that is not based on subjective analysis but based on objective quantifiable value, such that there is no argument to be had. 

Please feel free to share this Letter with every real estate taxpayer in the State of Texas (or other States that allegedly use USPAP) who can be helped by our efforts.  We are authorizing the use of our analysis and evidence as a template for other property owners to use should their CADs be acting in a similar illegal way.

Thank you.

M.

Mitchell Vexler, President G.P.

Mavex Shops of Flower Mound LLC
1913 Justin Road, Suite 117

Flower Mound, TX 75028

mitch@mockingbirdprop.com

www.mockingbirdproperties.com