Monday, December 8th

New witness: Steve Middleton (Steven Craig Middleton):

Middleton testified that he met Miller late in high school and owned a home construction business called Center Point Construction. That company declared bankruptcy.

Middleton operated Somerset Homes from Miller's office at 10777 Barklay, Overland Park, KS, but his articles of incorporation indicated a fictitious address near that location.

The Government entered exhibits of HUD (Closing Statements) for real estate, and invoices from Sandra Jo Harris for 'Construction Management Services' payable to Vanatta and Irvin or their LLC's. Middleton testified that one time, in lieu of the 'payment', he deeded the Vanatta's a jet ski.

An invoice for $7700 from Innovative Design was shown to the witness:

Question: 'Did anyone provide Construction Management Services or design services at the home at 617 Walnut Lane?'

Answer: 'No'

The Government introduces a letter on Somerset letterhead authorizing Steve Vanatta to sign closing papers.

Question: 'Is that your signature?'

Answer: 'No'

The closing statement of homebuyer, Brandon McCord was introduced. McCord entered into a purchase agreement for 107 Whispering Hills, Lone Jack but couldnt come up with a down payment. The government entered an exhibit showing a loan from Starland and Development of $21,700 to buyer Brandon McCord. Two days later after the home closed, Middleton wrote Miller a check for the repayment of the down payment.

Next, the Government introduced evidence of a home purchase in Lenexa, KS, for Hallie Irvin and her husband Steve Vanatta. 10109 Thieden Circle was a home constructed by Middleton-Somerset Homes and priced at $340,000. The closing statement indicated a second mortgage of $51,000 that was 'not applicable' to Irvin and Vanatta. Middleton testified that he sold them the home for cost. The sales contract was introduced and the witness was asked to hold it up to light and answer whether the sales price had been whited out. Middleton answered that the whited out price was $250,000.

Question: 'Did you authorize this change in price?'

Answer: 'No, never.'

Middleton testified that Irvin/Vanatta have never made a payment on the second mortgage. Upon examination of the sales contract for the home, Middleton is asked if the signature is his. 'No'. Of note on the contract is the misspelling of Middleton's business.

Cross examination by Atty. Bradshaw (Miller)

Question: 'Would you agree that it is not uncommon to have misspellings in a real estate contract?'

Answer: 'No' (it isn't uncommon)

Re-Cross by Atty Hathaway (Government):

Question: 'Do you know how to spell the name of your company?'

Answer: 'Yes'

Next witness: Abby Powers