James B. Passons, appraiser, 61, was acquitted by a federal jury in connection with charges that he inflated the value of a state senator's lumber mill. Passons testified that he prepared an inflated appraisal of a lumber mill owned by state Sen. Jerry Cooper but that Cooper assured him the appraisal would only be used to show the projected value of the property with a planned rail spur.
The U.S. Attorney argued that Cooper used the inflated appraisal and his political connections with Lt. Gov. John Wilder and former economic development commissioner Bill Baxter to obtain a $1.7 million loan for Anthony C. Auyer and Teresa R. Auyer, Alabama, to purchase the mill. The Auyers plead guilty to charges of fraud, money laundering and conspiracy.
The jury deliberated for two days and returned a verdict of not guilty.
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.