Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
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 Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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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).
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
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.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
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 
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