According to Anne Mitchell, who is present in court for the trial:

Next Witness: Kelly Sanford

Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in the indictment.

Next Witness: Steve Middleton

Homebuilder Steve Middleton takes the stand mid morning. He has pled guilty to Count 1, Conspiracy, in this matter. Prior to this plea, Middleton pled guilty to another mortgage fraud indictment involving Jared Minor. Middleton was questioned about several house sale transactions; one sales contract indicates Somerset Homes as the seller and Joe Frey (now deceased) as the buyer. Price on the contract is: $325,000. But a previous contract for the house at the same address has a different seller's name (New Home Builders, LLC)and a different price ($315,000). Middleton was asked what the arrangements were between he, Moser and Joe Frey and Middleton testified that Frey had come on board as an investor/partner and was buying homes in bulk. The houses were sold at ‘wholesale' and the difference between that price and the appraised price was a kickback used as a down payment for further purchases.

Middleton is shown a HUD-1 statement and questioned about a line item: "Midwest Dev., Inc.' in the amount of $5000 for ‘supervisory services'. The company is owned by Todd Earnshaw.

Question: ‘Did he provide supervisory services?' Answer: ‘No'.

Question: ‘Are there fees to Mr. Moser that are not disclosed on the HUD-1?' Answer: ‘Yes'

Middleton is shown 4 checks he wrote, payable to Moser and Associates in amounts: $16,000, $22,000, $29,000 and $24,471.

Question: ‘Now were these checks a form of kickbacks to Mr. Moser?'

Answer: ‘Yes'

Question: ‘Did you kickback to Moser outside of closing?'

Answer: ‘Yes'

Question: ‘And these payments were not shown on the closing statements?'

Answer: ‘No'

The government introduced another sales contract for XXXX W 155th Place, Overland Park, KS. Somerset Homes as the Seller to Joe Frey, the buyer, involving Commercial State Bank as the lender.

Question: ‘Were payments made to Mr. Moser in this transaction?'

Answer: ‘Yes'

Question: ‘Is this a check you wrote payable to Moser for $72,587'?

Answer: ‘Yes'