Eagle Valley Homes owner Steven Parisi plead no contest to forgery in connection with the charges pending agaisnt him in the Poconos, Pennsylvania and was sentenced to three years probation. Mortgage broker Rose Perdue, his co-defendant also plead not contest to forgery and was sentenced to three years probation. Donald Kishbaugh, a builder facing similar charges, plead guilty to passing forged documents and was sentenced to two years probation.
Parisi also agreed to pay $1 million. $750,000 of the money is for the homebuyers that can prove they were defrauded and will be distributed through the Attorney General's Bureau of Consumer Protection Restitution Fund. The remaining funds will be split between the Commonwealth Court for penalties and the Attorney General's Office, according to media reports.
All three defendants were permanently banned from working as mortgage brokers-bankers or real estate agents in Pennsylvania.
Two other defendants, Anita Peterson and Lauren Erb, are awaiting trial for perjury.
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.