Wednesday, May 11, 2005
Jury Returns Guilty Verdict in Philadelphia Corruption Trial
Three Defendants Found Guilty
After 19 days of deliberation, a jury in Pennsylvania returned a verdict finding Glenn Holck, 44, president of Commerce Bank/Pennsylvania and Stephen Umbrell, 45, regional vice-president of Commerce Bank/Pennsylvania, each guilty of three counts, including fraud. Corey Kemp, Philadelphia’s former treasurer, was convicted on 27 counts, including fraud and filing false tax returns. The jury was unable to reach a verdict on 14 of the 79 separate counts in the case.
The Commerce executives were accused of giving Kemp home and auto loans despite his poor credit. According to the indictment, Commerce received $1.5 million in bond underwriting fees from the city before Kemp resigned in December 2003, as well as the contracts for a $30 million line of credit and $50 million in city deposits.
Holck and Umbrell were accused of approving questionable loans to politically connected people, including the Mayor’s son and a mayoral fundraiser, in order to win city contracts for Commerce Bank. Among the loans was a mortgage made to Kemp.
Prior to becoming city treasurer, Kemp was denied a $2,000 line of credit from Commerce. A year later, it was alleged, Holck and Umbrell helped Kemp secure a 100 percent mortgage on his house despite poor credit, more than $30,000 in debts, and an inability to prove that he could pay closing costs.
Today, in an important victory for the people of Philadelphia and the entire region, this jury has stated loudly and clearly that government is not for sale.
About 10 months ago, I called the charging of the 12 individuals in this case an indictment of a “culture that breeds corruption.” With this verdict, a jury has confirmed that such a culture – one that endorses and even embraces a “pay to play” model for doing business - must be changed.
This verdict is a victory for good government. It is also a victory for honest public officials, and for honest businesses that don’t try to buy the right to do city work.
This verdict says that the “pay to play” system should not be accepted as simply how business gets done or, in the words of Corey Kemp, “the way it is.”
-Patrick Meehan, U.S. Attorney
mortgage fraud
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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.
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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 
