Stewart Leach

September 23, 1998

Wall Street:
Federal Reserve Bank of New York, 10th Floor Board Room.

For the first time, the chiefs of

Bankers Trust
Bear Stearns
Chase Manhattan
Goldman Sachs
J.P. Morgan
Lehman Brothers
Merrill Lynch
Morgan Stanley Dean Witter, and
Solomon Smith Barney

gathered under the oil portraits in the Fed's tenth-floor boardroom - not to bail out a Latin American nation but to consider a rescue of one of their own. The chairman of the New York Stock Exchange joined them, as did representatives from major European banks. Unaccustomed to hosting such a large gatherinig, the Fed did not have enough leather-backed chairs to go around, so the chief executives had to squeeze into folding metal seats.

From the book:
When Genius Failed, by Roger Lowenstein
Introduction, Page XVIII

--------------------------------------

Dear Stewart Leach, 03/02/06
with a response to
the Elizabeth Butler complaint.

--------------------------------------

Dear Bob Mueller, 7/1/08
It was about 4 months later that Lehman Brothers went down the toilet.

--------------------------------------

FBI

Article from US Attorny's Office
3/7/10
by: FBI.gov

DENVER—

Shawn R. Tieskotter, age 36, of Greenwood Village, Colorado, and Craig D. Patterson, age 30, of Littleton, Colorado, were indicted by a federal grand jury in Denver on March 10, 2010, on charges of money laundering, wire fraud, and mail fraud. Patterson was arrested by federal agents without incident. He appeared in U.S. District Court in Denver on March 12, 2010, for an initial appearance where he was advised of the charges pending against him. He was arraigned today, March 17, 2010. Shawn Tieskotter received a summons to appear in U.S. District Court in Denver on March 25, 2010, where he will be advised of the charges pending against him.

According to the indictment, between March 26, 2005, and continuing through June 30, 2005, in Colorado and elsewhere, Shawn Tieskotter and Craig Patterson knowingly executed and attempted to execute a scheme to defraud various financial institutions as well as commercial mortgage lenders. The scheme was executed in connection with residential mortgage loan applications relating to 13 properties in the Denver, Colorado metropolitan area. The neighborhoods included Aurora, Centennial, Littleton, Parker, and Castle Rock.

As part of the scheme, Tieskotter and Patterson prepared, submitted and caused to prepare and submit applications for residential mortgage loans and related documents in Tieskotter’s name. The applications included a first mortgage and second mortgage for each of the 13 properties. Each of these applications contained materially false and fraudulent representations that Tieskotter intended to use the property as his primary residence and most of the applications contained materially false and fraudulent representations about the extent of Tieskotter’s liabilities related to the other residential mortgage loans.

It was further part of the scheme for Tieskotter and Patterson to hide from lenders the extent of Tieskotter’s liabilities for the other mortgages, before such liabilities would appear on Tieskotter’s credit reports. At the time of closing, Tieskotter and Patterson caused additional disbursements of monies to PK Design Group, LLC, an entity controlled by Patterson, or Dream Design, a trade name for an entity controlled by Tieskotter. Tieskotter and Patterson concealed from the lenders and other parties associated with the transactions their control of these entities.

Upon conviction of the alleged offenses, Tieskotter and Patterson shall forfeit to the United States all property constituting or derived from proceeds traceable to the commission of the offense, including but not limited to a sum of money equal to $219,566 for money laundering and $4,710,666.86 for wire and mail fraud charges.

“Prosecuting those responsible for mortgage fraud is a priority of the Department of Justice,” said U.S. Attorney David Gaouette. “Those attempting to illegally take advantage of financial institutions will face prosecution.”

“Combating mortgage fraud is a priority because of its impact on the well being of our housing markets and national economy,” said Special Agent in Charge James H. Davis. “Law enforcement and the community at large must maintain their vigilance in identifying those who commit these types of fraud.”

“The use of the Postal system to carry out or further any fraud is a crime which is investigated thoroughly by the United States Postal Inspectors,” said U.S. Postal Inspector in Charge Shawn Tiller. “We were pleased to once again team up with our federal partners in the Denver area to bring these perpetrators to justice.”

“IRS Criminal Investigation will work diligently with our law enforcement counterparts to insure mortgage fraud is vigorously investigated and brought to justice. Mortgage fraud directly threatens the financial health of the communities in which we live, said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.”

Counts one through nine allege wire and mail fraud, which carries a penalty of not more than 20 years imprisonment, and up to a $250,000 fine, per count.

Counts 10 through 13 allege money laundering, which carries a penalty of not more than 10 years imprisonment, and a fine of up to $250,000.

This case was investigated by the Internal Revenue Service Criminal Investigation (IRS CI), the Federal Bureau of Investigation (FBI), and the United States Postal Inspection Service (USPIS).

The case is being prosecuted by Assistant U.S. Attorney Matthew Kirsch.

The charges are allegations, and the defendants are presumed innocent unless and until proven guilty.

Mortgage fraud is a major part of President Barack Obama’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Kimberly White

Article from Elbert County News
8/2/11
by: Ashley Dieterle

Elizabeth woman Kimberly White, 38, pleaded guilty to wire fraud relating to a mortgage fraud scheme. The plea was made on July 15, and White will be sentenced on Sept. 30.

According to the plea agreement and indictment, White was working with Shawn Tieskotter and Craig Patterson between March 2005 and June 2005 to execute a scheme to defraud various financial institutions including commercial mortgage lenders in connection with residential mortgage loan applications to 13 properties in the Denver metro area.

As a licensed real estate agent at the time, White helped Tieskotter draft contracts for residential properties available for purchase. The applications submitted for two loans contained false representations that Tieskotter planned to use the property as his primary residence. The duo also hid Tieskotter's liabilities from other mortgages by submitting applications for multiple loans, which according to the indictment, affected the lenders’ ability to asses Tieskotter’s ability to re-pay the loans he was applying for.

During the time of closing, Tieskotter and Patterson disbursed additional money to Patterson’s entity, PK Design Group, LLC or Dream Design, a trade name controlled by Tieskotter. During the process, White provided real estate purchase contracts which didn’t include the fact that money would be disbursed at closing to PK Destin Group or Dream design to the real estate appraiser. These actions caused the improper appraisals, with significant value, to allow Tieskotter and Patterson to receive money back at closing.

Tieskotter was sentenced to nine months in prison, followed by nine months of home detention. He was ordered to pay more than $1.1 million in restitution. Patterson was sentenced to 10 months in prison, and 10 months of home detention and was also ordered to pay over $1.1 million in restitution.

------------------------------------------/

My favorite Lawyer
Tim Paynter
120 S Kalamath St
Denver, CO 80223
paynterlawoffice@gmail.com
(720) 951 1700

--------------------------------------

xxyyzz

-- End of Letter --

Navigate:

home / site map / disclaimer

Philip G Rice

resume, FoaF, OPML, RSS Feed , Business Card - scanned image, vCard file.