Monday, October 16, 2006
Pennsylvania Mortgage Broker Sentenced to Prison
David C. Jackson prepared false applications in flipping scheme
David C. Jackson, 45, New Kensington, Pennsylvania, was sentenced to 41 months in prison and ordered to pay $1,291,175 in restitution after pleading guilty to bank fraud and money laundering in connection with a $1.6M mortgage fraud scheme.
Jackson was one of eight defendants charged in the mortgage fraud conspiracy that allegedly involved the purchase of 27 properties and sale of the properties at inflated prices. The properties were located in poor communities, primarily Wilkinsburg, Pennsylvania.
Troy Anderson, Lavelle Snead, Robert Kohlman, David Jackson, and the other defendants, from 1999 through the early part of 2001, devised and perpetrated a scheme to defraud banks and other lending institutions by submitting false loan applications and engaging in a property flipping scheme that involved bogus sales for inflated amounts to straw purchasers. Anderson acted as one such straw purchaser of four real properties involved in the scheme, as well as obtained loans in excess of $200,000 in relation to those properties. Snead recruited some of the straw purchasers and worked with Kohlman and Jackson to secure the fraudulent loans. Jackson, a mortgage broker doing business as Comvest Capital, prepared and processed the fraudulent loan applications, as well as falsified tax returns and W-2’s submitted in support of the loan applications for in excess of $1.6 million in loan proceeds. The proceeds of the fraud were primarily deposited into a bank account maintained by Snead, from which fees paid to Jackson, Anderson and the other straw purchasers were withdrawn. Loan proceeds were also used to make periodic payments on the fraudulently obtained loans in order to conceal and further the scheme.
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.
More Trial Coverage
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