Wednesday, December 3, 2008 - Morning Session

Franky Rowden was called by the Government. Rowden purchased a Miller home in Carl Junction, MO. He spoke with Steve Vanatta and they agreed on a purchase price of $150,000 for the home. Rowden moved into the house early and then had difficulty securing financing. Vanatta met Rowden one day and instructed him that a verification of employment was needed (VOE). Vanatta told Rowden to go to Silvers Auto Body, a place where he never worked. The fictitious VOE was submitted to the mortgage company. Rowden admitted to making up a fictitious pay stub. Questioned by the Government, Rowden said he created fictitious W-2's at the direction of Steve Vanatta.

At closing, the documents indicated a sales price of $185,000. The Government introduced evidence that the signature page of the original contract had again been interleaved with a new contract.

Question: 'Did you sign a Real Estate Sales Contract for $185,000?' Answer: 'No' .

Question: 'Did you authorize your signature to be attached to this document?' Answer: 'No, I did not'

Rowden's income was inflated to $6300 per month on the mortgage application. Rowden testified that he was a truck driver making about $2300-$2500.

Rowden also testified that Miller/Vanatta had trouble obtaining an occupancy permit from the City of Lone Jack (MO) and that he was urged to move into the home early.

A 'friend letter' was needed by Rowden in order to purchase the home. The letter would state that Rowden was living and paying rental income on time.

Question: 'Did you know that this letter would be used to process your loan?'

Answer: 'Yes, I did.'

Rowden's home has been foreclosed.

Next witness: Jennifer Perrello