The Government calls their first witness, James Sparks. Mr. Sparks has previously plead guilty to conspiracy and money laundering in this matter. Sparks is now a car salesperson in Kansas City. He had worked as a mortgage broker for two companies from 2002 through 2006. In 2004, he became aquainted with Steven Vanatta after Vanatta contacted him after seeing Spark's magnetic sign advertising his mortgage business, while driving in traffic. Mr. Sparks stands up and is asked to identify each of the defendants. At each identification, Mr. Hathaway stands behind the defendant's chair in the courtroom.

The Government introduced the plea agreement that had been signed by Sparks and reviewed it for the jury.

Mr. Sparks was questioned about appraisals in Miller related loans. He stated that oftened times they used or directed appraisers to use other comparable homes of Miller's that were already inflated.

Mr. Sparks is asked about a particular buyer, Kerrie Jordan. Did he recall that purchase? 'Yes'. The government introduces into evidence the first of two purchase contracts for a property at 211 E. Whispering Hills Blvd in Lone Jack, MO. The contract was signed by 'Star Land + Development' as the seller and Kerrie Jordan as the purchaser. The price in the contract is $200,000. The down payment is shown to be $8,000 to be paid to 'HCI'. The goverment then introduces the exhibit of the check for the downpayment. It is payable to Star Land + Development.

Mr. Sparks testified that he was having problems getting a loan approval for the Jordans. Mr. Hathaway asked the witness, "well, explain to the court the problems you were having'. Sparks replied that Kerrie Jordan had a low credit score and her husbands was even worse. And further that he couldn't get the house to appraise. Sparks and Vanatta had 'ordered it at $220,000'. Sparks then testified that he couldn't prove income through Ms. Jordan's employment as an office assistant in a Kansas City law firm, to support the mortgage. So he falsified the loan application to indicate that Ms. Jordan's income was $6800 per month.

The witness stated that Miller and Vanatta weren't satisfied with the $200,000 purchase price. Another loan application was introduced. It is unsigned. The purchase price is now $220,000 with a loan amount of $176,000. This loan application indicated monthly income for Kerrie Jordan at $7600 per month.

The Government then introduced to the court, the HUD 1 or closing statement for the Jordan purchase of 211 Whispering Hills, Lone Jack, MO. There are two line items with charges for appraisals of the property. The first is $75.00 for Quality Appraisals. The second was for $350 for Driscoll & Associates. Since it was the second appraiser, that successfully appraised the property for the new selling price, they were paid the higher fee. Quality Appraisals did not come up with the expected appraisal, the fee was for their 'time and trouble'.

Mr. Hathaway introduces a series of emails between Sparks and buyer Kerrie Jordan. All defense attorney's voice objection to the exhibit. Their objections are overruled and the exhibit is introduced. Ms. Jordan is questioning Mr. Sparks as to 'what the numbers are'. Subsequently, in reply to Sparks email of the 'loan numbers', Ms. Jordan questions why the sales price is now $220,000?

Late in the day, Mr. Sparks is questioned what other builders he was working with. Mr. Sparks replies, that there were three others; Steve Middleton, Brock Burdett, and one other that he couldn't recall.

Court adjourned for the day and will reconvene on Friday, November 21st at 9:00 a.m.