Monday, July 23, 2007
Two Kansas Contractors Indicted for Bank Fraud
Steve C. Middleton, 46, Overland Park, Kansas, and Jared Minor, 36, Belton, Missouri, are charged with one count of conspiracy to commit bank fraud, four counts of bank fraud, three counts of money laundering and one count of criminal contempt of court.
According to the Indictment:
– Doing business as Somerset Homes, Middleton obtained loans and built homes in the greater Kansas City area.
– Minor was a construction contractor who worked with Middleton.
– As a result of fraud, Middleton received more than $1 million from Bank of the Prairie.
– On May 17, 2006, Middleton was indicted in another federal case. His co-defendants were F. Jeffrey Miller, Todd Earnshaw, Brian Rouse, Angela Parenza, Elizabeth Hessel, James Moser, and Lanny Ross. Middleton was released on bond after agreeing to comply with the court’s order prohibiting him from engaging in illegal activities. He and Minor violated the court’s order by defrauding the Bank of the Prairie and continuing to receive the proceeds of the fraud.
– By submitting false and fraudulent loan documents, Middleton and Minor caused the bank to make loans it would not otherwise have made.
– The defendants presented to the bank a copy of a $10,000 check from Minor to Somerset homes, representing it to be a down payment on the purchase of an $823,900 residence at 18882 Travis Lane, Stilwell, Kansas. In fact, no down payment was made because Middleton returned the check to Minor.
– Submitted to the bank an amendment to the sales contract falsely representing that the purchase price was increased from $823,900 to $1,124,000 and a document falsely stating that Minor had qualified for a $950,000 loan at 7.5 percent interest. A month later, they executed a change in the terms of the agreement to increase the amount borrowed from $659,100 to $899,200.
In the money laundering counts, they are charged with engaging in a series of monetary transactions involving a $656,000 construction loan, a $242,000 construction loan and $2.3 million from the sale of 1821 Travis Lane, Stilwell, Kansas.
In a forfeiture count, the government seeks a money judgment for $1,424,000 in loan proceeds the defendants obtained from Bank of the Prairie, $22,000 in cash and a residence at 14910 Benson in Overland Park, Kan., which is valued at approximately $289,000.
The crimes are alleged to have occurred at various times in 2005, 2006 and 2007 in Johnson County, Kansas.
mortgage fraud
Hi Rachel,
When I see or read these kind of news, one thing comes to my mind how that bank gave loan to them without a proper inquiry???
Posted by on 07/23 at 08:37 PM
The thing that boggles my mind is that Miller was indicted twice in 2006 and this is the 2nd indictment against Middleton, yet both are still on the street and free to continue this sort of activity. How many indictments are needed before the criminal is locked up until trial??
Posted by
NS on 07/29 at 03:35 PM
Hello, Rachel and Anne,
Thank-you both for providing coverage of this much anticipated trial. I have been searching all over the local news...and cudos to you...this is the best coverage!
Posted by on 11/20 at 04:29 AM
What happened to Todd Earnshaw? He is selling foreclosed properties in Stilwell.
Posted by on 10/11 at 09:59 AM
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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 
