James Sparks resumed his position on the stand this morning. He was questioned about the payment arrangement for mortgages that were referred to him by Vanatta and Miller.

Mr. Sparks testified that at first, he paid 50% to Vanatta, but later negotiated it at 40%. However, because of Vanatta's prior offenses involving checks, he paid monies to his wife, Hallie Irvin. Ms. Irvin had two 'companies'; 'HCI' and 'Innovative Designs'. The court introduced a canceled check in the amount of $10,000. It was written from a Star Land + Development account and is payable to Innovative Design.

Mr. Sparks testified that as a result of the federal investigation of the business dealings of Star Land, Miller, Vanatta, Irvin and Harris, Mr. Sparks agreed to a monitored telephone call with Mr. Vanatta. The court then introduced the audio version and written transcript of this monitored call. Towards the end of the call, Mr. Vanatta became suspicious. He drove to the offices of Mr. Sparks and encountered the federal agents that were monitoring the call. 'You're recording me?', Vanatta said to Sparks? Sparks replied, 'They got us, Steve'

The Government then introduced audio evidence of Hallie Irvin's subsequent 3 telephone calls to Mr. Sparks, demanding money owed to her and files that were in his possession. Those files had altered and fraudulent documents in them according to Sparks.

The Government direct examination ended by introducing and reviewing the advertising that Miller/Vanatta ran in newspapers in Joplin, MO.. 'No credit? No problem' was included in the ad copy. Two phone numbers are included in the ads-both belonged to Vanatta.

Mr. Sparks testified that in the Kerrie Jordan purchase, he and Vanatta falsified; her income, her verification of rent (VOR) history, her verification of employment (VOE), her W-2's and her pay stubs.

The loan applications produced by the Government indicate Ms. Jordan's income between $6800 and $7200 per month. Ms. Jordan was an an office assistant for a firm in Kansas City. Her actual income, according to Mr. Sparks, was $1900 per month.