Monday, December 29, 2008
Builder And Associates Found Guilty In $5M Mortgage Fraud Case
F. Jeffrey Miller and two business associates have been convicted on federal charges of conspiracy, bank fraud, and money laundering in a $5 million mortgage fraud scheme. Mortgage Fraud Blog carried full coverage of the trial, as reported by Anne Mitchell, which can be viewed here.
The trial, which is the first of two trials developer F. Jeffrey Miller faces in federal court in Topeka, began November 17,2008. Jury deliberations started December 16, 2008. On Thursday afternoon, December 18, 2008, the jury returned the following verdicts:
F. Jeffrey Miller, 47, Stanley, Kansas: Guilty on count 1 (conspiracy), count 5 (unlawful monetary transactions), count 9 (criminal contempt), and count 10 (criminal contempt).
He was acquitted on count 2 (bank fraud), count 3 (bank fraud), count 4 (unlawful monetary transactions), count 6 (destruction of records), count 8 (interfering with a witness), count 11 (criminal contempt), and count 12 (criminal contempt).
Stephen W. Vanatta, 45, Lenexa, Kansas: Guilty on count 1 (conspiracy), count 2 (bank fraud), count 4 (unlawful monetary transactions), count 5 (unlawful monetary transactions), count 9 (criminal contempt), and count 10 (criminal contempt).
He was acquitted on count 3 (bank fraud), count 6 (destruction of records), count 8 (interfering with a witness), count 11 (criminal contempt), and count 12 (criminal contempt).
Hallie Irvin, 29, Lenexa, Kansas: Guilty on count 1 (conspiracy), count 2 (bank fraud), count 4 (unlawful monetary transactions), count 5 (unlawful monetary transactions), count 9 (criminal contempt), and count 10 (criminal contempt).
Irvin was acquitted on count 3 (bank fraud), count 6 (destruction of records), count 8 (interfering with a witness), count 11 (criminal contempt), and count 12 (criminal contempt).
Sandra Joy Harris, 42, Overland Park, Kansas, was acquitted on all counts.
A fifth defendant in the case, James Sparks, 37, Lawson, Missouri, previously pleaded guilty in September 2008. He is scheduled for sentencing January 12, 2009.
The government is seeking the forfeiture of $5 million it alleges the conspirators obtained as a result of the fraud. That phase of the trial is set for January 20 and 21, 2009.
Miller still faces federal charges of conspiracy, bank fraud and money laundering in a related case. Co-defendants in that case are Todd Earnshaw, Brian Rouse, Angela Parenza, Elizabeth Hessel, James Moser, Steve Middleton, Lanny Ross and Judy Brumble. Five of those defendants – Ross, Brumble, Middleton, Parenza and Hessel – have entered guilty pleas and are awaiting sentencing. As in any criminal case, a person is presumed innocent until and unless proven guilty. The outstanding indictment merely contain allegations of criminal conduct.
Miller, a building contractor in Kansas, Missouri and other states, sold homes under the name of Miller Enterprises, Star Land and Development, Dutch Custom Homes and other companies. He first was indicted May 17, 2006, along with eight other people on charges of conspiracy to commit bank fraud and money laundering. The government sought the forfeiture of more than $25 million in proceeds from the alleged fraud. In the May 2006 indictment, Miller and the conspirators were accused of targeting home-buyers with poor credit, obtaining inflated appraisals, submitting false information to lenders, and manipulating home buyers to move into homes before closing and then increasing the purchase price at closing when buyers were under pressure to accept the terms for fear of losing their homes.
After he was indicted, Miller was released on his own recognizance pending trial. He was allowed to continue doing business under an arrangement in which he agreed to abide by all federal, state and local laws and to permit his business transactions to be monitored by Meara King & Company of Kansas City.
During the trial leading to the verdict, prosecutors presented evidence that Miller’s illegal activities did not stop with his indictment in May 2006. Evidence showed Miller, Vanatta, Irvin and Harris participated in a conspiracy to obtain mortgages from federally insured lenders by submitting fraudulent information. The conspirators were responsible for 29 fraudulent loans totaling more than $5 million.
Evidence presented at trial showed that:
– Miller knew when he signed a monitoring agreement that he was in fact continuing to engage in criminal conduct through a new conspiracy with Stephen Vanetta, Hallie Irvin, James Sparks and others.
– Miller induced Vanatta and Irvin to cooperate in the conspiracy, Miller agreed to cosign a note to allow Vanetta and Irvin to buy a property at 415 Regency Cove, Lake Ozark, Mo. Miller agreed with Vanatta and Irvin that they would use part of the money to purchase from him a 1998, 45-foot Sea Ray boat known as “Bling Bling.” The conspirators knew that Vanatta and Irvin could not provide a legitimate history of assets and income to qualify for the loan. They created and presented false documents to obtain the loan from First National Bank, Lake Ozark, Mo.
– Miller, Vanatta and Irvin ran an office at 10777 Barkley, Overland Park, Kan., where they marketed homes under the names Miller Enterprises, Dutch Custom Homes, Star Land and Development and Somerset Homes. They created advertisements soliciting home buyers with credit problems, promising no money down and financing by the builder.
– James Sparks was a loan broker in the greater Kansas City area who referred home buyers by Miller, Vanatta and Irvin. He collaborated with Miller, Vanatta and Irvin by knowingly preparing and submitting false financial information for home buyers who were applying for loans from federally insured lenders. Sparks paid kickbacks to Irvin on behalf of Vanatta of 40 percent of loan closings to maintain business with Miller Enterprises. He provided down payments to home buyers and referred falsified and inflated sales contracts to appraisers selected by Vanatta knowing that they would inflate appraisals to cover altered sales prices.
Sentencing is set for May 4, 2009. The defendants face the following penalties:
– Conspiracy: A maximum penalty of 30 years in federal prison and a fine up to $250,000.
– Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
– Unlawful monetary transactions: A maximum penalty of 10 years and a fine up to $250,000.
– Criminal contempt: A maximum penalty of 5 years and a fine at the court’s discretion.
Acting U.S. Attorney Marietta Parker announced the verdict and commended IRS-Criminal Investigation, Housing and Urban Development’s Office of Inspector General, Assistant U.S. Attorney Richard Hathaway, and Assistant U.S. Attorney Christine Kenney for their work on the case.
Miller also faces federal charges in a related case
mortgage fraud
This case seems to be the poster child for many more going on around the country. I’m glad to see convictions finally happening.
Posted by on 12/31 at 02:52 PM
Finally a conviction. We have waited ten years for justice. Now we have to hope that the criminals will still be in the country on May 4th.
Posted by on 01/01 at 09:27 PM
get a life this country has more to deal with then this bs
Posted by on 03/28 at 09:55 AM
sm—what an ignorant comment. Surely you are aware that the global financial disaster has been caused primarily by mortgage fraud. Lenders, appraisers, title companies, and Wall Street bankers that bundled & securitised the fraudlent mortgages and sold them all over the world. You need to educate yourself about what is causing so much suffering in the world today.
Posted by on 03/28 at 11:28 AM
Its actually a small percentage why we are in the position we are in
Posted by on 03/28 at 12:29 PM
You are wrong, and I would love to hear what you believe is the BIG reason for the financial trouble the world is experiencing. Why is it that every “too big to fail” financial institution and the insurance company that insures those financial instutions in so much trouble now? EVERY report says it is based on mortgage fraud that is rampant across this nation and some others. If you have an explanation I’d like to hear it.
Posted by on 03/28 at 12:38 PM
ITs higher up then we think the problem that is
Posted by on 03/28 at 12:50 PM
anyone know how to look up what their sentence was?
Posted by on 06/02 at 07:22 PM
The sentencing set for May 4 was continued at the request of defense attorney’s. Presentencing hearings are scheduled now for August of this year. Who knows if or when there will ever be a sentencing. FEDERAL mortgage fraud discovered in 1999, indictments in the spring of 2006 and they are still out there free and likely doing more illegal things.
Posted by on 06/02 at 08:59 PM
Great coverage of the F. Jeffrey Miller trials. It’s too bad that the feds can’t get this bunch and some of the others they associate with on the rest of their schemes. They are rumored to have run cons at the Lake of the Ozarks on commercial property as well, defrauding both builders and developers, but their connections make it nearly impossible to pin down.
Posted by on 11/06 at 08:19 AM
Yes, I’ve been told Miller has tons of investments at the Lake that may not be on the Fed’s radar. I’ve also been told that he owns this building in the KC area that I’ve never seen listed as an asset, but maybe the person who gave me this info is wrong. I haven’t checked it out. www.bacchanalia-events.com/index2.htm
Posted by on 11/09 at 09:43 AM
There are a ton of rumors about all of the criminal activity that Miller was involved in. I have been told that he owns some land down at Lake Ozark with an air stip on it. And he uses it to fly drugs in. Either way you cut it, the guy is a criminal.
Posted by on 11/13 at 11:58 AM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.
Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.
2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband
Untangling Mortgage Fraud in Chicago Condo Buildings
Chicago Public Radio
Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.
No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
Washington Times
According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.
Former Vegas Resident Charged with Mortgage Fraud in Nevada
National Mortgage Professional Magazine
A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...
Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.
12-Year Prison Term in Mortgage Swindle
Washington Post
A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
|
|
|
|
|
|
|
|
|
|
|
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
