Tuesday, December 9, 2008

New Witness: Steve Brown, Court Ordered Business Monitor

Stephen Brown, Principal of Meara, Welch & Brown was called by the Government as this mornings first witness. He and his company were selected to monitor the business dealings of Miller's companies as a condition pending his trial. They entered into this 'Forensic Engagement' in June, 2006. At the onset, Brown testified, 'basic documents could not be found' and 'there was a great deal of trouble finding bank statements' citing there were 25 bank accounts and 20 or so credit cards.

Although the engagement began with one person assigned to Miller companies, Meara, Welch & Brown soon assigned 4 or 5 people that 'worked almost full time'.

Many real estate documents could not be found. Title companies were called upon to furnish missing documents. As part of the court ordered engagement, the company performed an appraisal review of the Kerrie Jordan purchase in Lone Jack, MO. The transaction was flagged when because the original appraisal performed by Driscoll & Associates used other Miller built properties as comparables although they had not been reported through MLS.

An independant appraisal valued the home at $185,000, instead of the $220,000 that was paid by the Jordans. Mr. Brown testified that there were no recorded sales of a Miller built home in the subdivision exceeding $180,500, that was verifiable.